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Speaker 1: Welcome to How the Money.

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Speaker 2: I'm Joel and I am that, and today we're answering

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Speaker 2: your listener questions.

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Speaker 1: That is right, buddy.

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Speaker 3: We've got several listener questions to get to during this episode,

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Speaker 3: including a listener who's wondering if it's worth moving banks.

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Speaker 1: For an additional one percent. Where do you draw the line, Joel,

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Speaker 1: good question.

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Speaker 3: I'll ask you ask you that here later on. Another

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Speaker 3: listener is wondering how much she should spend on a car.

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Speaker 3: I've got some great thoughts there, as well as another

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Speaker 3: listener he is wondering if him and his wife if

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Speaker 3: they should convert their primary residence into an investment property. Essentially,

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Speaker 3: we're talking about house hacking, which we love, but it

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Speaker 3: may not be the best fit for this listener. We'll

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Speaker 3: get to we'll explain a little more later on.

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Speaker 2: Not necessarily a house hacking that's usually runting out a

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Speaker 2: portion of the house you live in or whatever. But

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Speaker 2: it's becoming a landlord by taking the asset that you

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Speaker 2: already own, like shed you sell it or she's.

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Speaker 3: A hackish way to get into investment property, which is.

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Speaker 2: I mean the thing that we have told people along

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Speaker 2: It's like if you buy that starter home. Well, if

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Speaker 2: you save up enough for the downhymalt of the next one,

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Speaker 2: keep the starter home. That can That can be the

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Speaker 2: best way to get into landlording, real estate investing for

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Speaker 2: a whole lot of people. But this one comes with

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Speaker 2: some some quirks attached to I will talk about that

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Speaker 2: in just a bit, but Matt, let's real quick. I

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Speaker 2: want to mention just a saving step that I came across.

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Speaker 3: And Okay, so is your saving step that you chose

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Speaker 3: not to buy anything at all?

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Speaker 2: That is a great That is a great one. But

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Speaker 2: so my wife's been deprivation the new things, just don't

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Speaker 2: enjoy anything. Is one way to save money, that's sure.

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Speaker 2: But no, that it was not that my wife has

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Speaker 2: been making into making some cocktails with mescal in them recently,

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Speaker 2: which I'm not gonna lie, one of my one of

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Speaker 2: my favorite liquors, right, Mescal is very one of the

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Speaker 2: best spirits. So but but one of the things that

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Speaker 2: goes in this can auction that she's been making is

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Speaker 2: a gave syrup or a gave nectar. Actually, so these

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Speaker 2: are two different things, a gove nectar and a gave syrup.

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Speaker 1: Oh yeah, I did not know that.

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Speaker 2: So this is a nectar is like thinner, and a

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Speaker 2: gave syrup is like a little bit thick.

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Speaker 1: Yeah okay.

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Speaker 2: And so at the when you actually go to the

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Speaker 2: place where you buy the mascot, to the spirits shop

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Speaker 2: or whatever, they they sell the agave nectar, which just

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Speaker 2: blends into the cocktail much more easily. But then we

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Speaker 2: were at Costco when we saw that they sell a

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Speaker 2: two pack of a gave syrup and we're like, whoa,

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Speaker 2: this is like eight times cheaper than the gove nectar.

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Speaker 2: That way you'd buy it like total wine. Yeah, like

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Speaker 2: so much cheaper, it's not even funny. So well let's

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Speaker 2: give this a shot. Interestingly enough, you actually have to

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Speaker 2: like mix it in better because it is thick. Yeah,

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Speaker 2: but it ultimately it does blend in and and so

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Speaker 2: you just save a ton of money with not much

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Speaker 2: extra hassle.

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Speaker 3: By not buying packaged water, which is right, I guess,

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Speaker 3: well that's the thing too with was it just regular

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Speaker 3: simple syrup that you can buy. They've got the Stirring

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Speaker 3: Company and they make the simple syrup, and literally you're

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Speaker 3: buying sugar mixed with water and sugar. You can make

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Speaker 3: your own. You can make a fifty bland at home,

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Speaker 3: heat it up over within a little saucepan. Well that

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Speaker 3: got me thinking, though, could you have like another bottle

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Speaker 3: and dump the syrup into that and mix it with

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Speaker 3: a little bit of water to kind of cut it

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Speaker 3: a little bit? Probably that way you don't have to

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Speaker 3: like pre dilute it, yeah, for sure, instead of standing

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Speaker 3: there and stir it a bunch. And what do you

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Speaker 3: think about that syrup that the syrup is more concentrated

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Speaker 3: if you do dilute it like that, it's probably like

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Speaker 3: fifteen times cheaper. It's crazy how much less expensive it is.

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Speaker 3: So this was like a little hack we found and

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Speaker 3: like at first the syrup settled to the bottom, we're like,

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Speaker 3: oh that's not that's not good work, like super sweet.

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Speaker 1: But then you just mix it gets.

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Speaker 3: A little Uh do Zimbly still have her little coffee

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Speaker 3: frother thin with a little spinny spo?

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Speaker 1: Yeah she does.

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Speaker 2: Yeah, I think so you could drop that now. Yeah,

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Speaker 2: it does have thathing good to own on. That's a

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Speaker 2: good point.

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Speaker 3: It is hard though with a colder drinks because sugar

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Speaker 3: does not want to mix or blend with a colder drink.

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Speaker 1: But maybe if you got the power of like tricity.

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Speaker 3: On your side, buddy, you could uh be well on

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Speaker 3: your way to your mezcal margarito.

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Speaker 1: Just it's the forum margarita's. Is that what you're making

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Speaker 1: with the uh.

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Speaker 2: Basic well mescal margerites or there's this one with like

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Speaker 2: and I should I could post the recipe. It's pretty

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Speaker 2: chill on on our website. But it's I think it's

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Speaker 2: basically mescal apparol. Some of this gave nectar or syrup,

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Speaker 2: and then.

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Speaker 1: There was one other ingredient. What was the other one?

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Speaker 2: Like a sprits she Emily likes to put. Yeah, she

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Speaker 2: likes to metal sprits or when it's just actually squeezed

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Speaker 2: up blind juice too. So that's that's the basics of it.

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Speaker 2: Y'all experiment at home, enjoy uh, but but make it

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Speaker 2: cost less by getting your a gave syrup at Costco

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Speaker 2: instead of buying it at the spirit store. It's amazing,

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Speaker 2: Like you said, every time I walk by that shelf

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Speaker 2: of simple syrup, I'm always amazed, Like infused with spearmints

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Speaker 2: or something like that.

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Speaker 1: You can do that.

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Speaker 2: All you need is sugar for practically nothing at your house,

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Speaker 2: Like do not buy the prepackaged stuff.

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Speaker 3: And you can and heat up slowly too. That way

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Speaker 3: you don't brown the sugar because if you do it

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Speaker 3: too fast, you'll kind of burn it, which I think

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Speaker 3: some people like maybe it gives it like a toasted flavor,

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Speaker 3: But you want to heat it up slow so you

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Speaker 3: get that nice, clear, simple syrup if that's.

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Speaker 1: What you're going for. We are not mixologists. We are not.

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Speaker 3: I'm sure there's a lot of folks out there that

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Speaker 3: are like, everything you guys have said is wrong, but

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Speaker 3: it has worked.

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Speaker 2: The pusic costco for us, which is the only thing

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Speaker 2: that we really care that we know about, is right.

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Speaker 1: So that's right.

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Speaker 3: All right, Let's introduce something we do know about, which

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Speaker 3: is beer. We are enjoying another other half beer. This

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Speaker 3: one's called Green City. It's a double dry, hot hazy

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Speaker 3: IPA and things. Again to Jason for this is a

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Speaker 3: part of the the care package he.

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Speaker 1: Sent our way.

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Speaker 3: So looking forward to enjoying this one and we will

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Speaker 3: share our thoughts.

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Speaker 2: I feel very caredful for the episode, very cared for

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Speaker 2: when Jason sends beer our way, So thank you Jason.

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Speaker 1: Has he did we send him some socks? Yes? We did.

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Speaker 3: Oh okay, good, I'm glad we did. I could too,

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Speaker 3: I can't remember if we did.

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Speaker 2: And by the way, if you want a pair of

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Speaker 2: how To Money socks, sign up for the how To

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Speaker 2: Money THEWS letter. Refer a few of your friends.

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Speaker 3: That's how you get to actually just put in a

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Speaker 3: new order. So we've got a brand new box full

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Speaker 3: of a bunch of how to money socks. You too

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Speaker 3: can be rocking a pair of those, the beautiful sea green. Yeah,

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Speaker 3: how to Money socks. We don't want to keep them.

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Speaker 3: We already got a pair, so we need to give

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Speaker 3: you a I've got like three pairs at home. What Yeah,

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Speaker 3: I only got one. I got one from like the

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Speaker 3: original and then I was gonna give them away or something.

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Speaker 1: Oh what what I need to do? And even kates.

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Speaker 3: But then I guess they find their way back into

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Speaker 3: my joy.

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Speaker 2: I guess I just need to refer more of my

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Speaker 2: friends letter. All right, let's get onto the subject at hand.

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Speaker 2: We're taking listener questions and if you have a money

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Speaker 2: question you want us to tackle on a future episode,

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Speaker 2: we'd love to hear it. Just kind of how money

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Speaker 2: dot com slash ask for simple instructions, but basically to

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Speaker 2: cut out the middleman. You can just record your question

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Speaker 2: on the voice memo app of your phone, stay your

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Speaker 2: name where you're calling from, send it to us via email.

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Speaker 2: We'll get you on an upcoming episode. But Matt, this

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Speaker 2: first question is about the fact that Mint, the favorite

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Speaker 2: budgeting app of so many people for so long, is

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Speaker 2: going away.

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Speaker 4: Hey, y'all, it's Grace in Alabama. I have used the

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Speaker 4: website Mint for many years to do my budgeting savings

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Speaker 4: goals and just track my spending. You may have heard

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Speaker 4: into It announced that they are discontinuing the service in

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Speaker 4: twenty twenty four. So I'm wondering if you have any

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Speaker 4: recommendations for another budgeting tool that might be a good

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Speaker 4: replacement for Mint. For me, I am not at all

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Speaker 4: looking forward to migrating all of my years of data

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Speaker 4: over to something else, but it might be a good

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Speaker 4: chance to revisit some budgets I've had on autopilot for

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Speaker 4: a while. Thank you and thanks for what you.

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Speaker 1: Do, Grace.

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Speaker 3: You are not alone in being bummed about Mint shutting down.

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Speaker 3: A lot of folks have been with them since the

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Speaker 3: beginning because they were one of the they're one of

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Speaker 3: the ogs yeah.

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Speaker 1: Oh, they had a great service there. They're the og

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Speaker 1: I think.

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Speaker 3: Yeah, millions of folks out there are trying to figure

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Speaker 3: out what to do next.

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Speaker 2: I've had I've had friends Matt texting me saying, like,

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Speaker 2: what's going on?

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Speaker 1: Where do I go?

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Speaker 2: Like, there's a lot of consternation because this has been

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Speaker 2: a part of people's financial rhythms for a heck of

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Speaker 2: a long time.

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Speaker 3: But yeah, but that being said, Grace, I do like

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Speaker 3: the fact that she was looking at the bright side

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Speaker 3: of things because she mentioned how this gives her an

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Speaker 3: opportunity to revisit.

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Speaker 1: Her budget, which is so true because.

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Speaker 3: We often do put things on autopilot, which is good

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Speaker 3: on a lot of levels, but then we fail to

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Speaker 3: revisit those budget categories, which means might be consistently overspending

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Speaker 3: if we're not updating the allocated amounts now, especially in

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Speaker 3: an era of higher inflation. Yeah, but we also might

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Speaker 3: not have revisited our goals that directly impact where we

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Speaker 3: decided to stick money each and every single month. So

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Speaker 3: you never want your budgeting app to get blown to

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Speaker 3: total smother rings. But there actually might be a silver lining.

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Speaker 3: We might have some good news for you.

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Speaker 2: Grace, well, one of the other I think silver linings

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Speaker 2: is if you care about this, and I think many

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Speaker 2: people do, the fact that your data was being tracked

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Speaker 2: and sold with Mint, and if you go to let's say,

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Speaker 2: one of these paid services, you might be able to

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Speaker 2: avoid that in the future. And I don't know I

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Speaker 2: was willing to for that trade off, especially since I've

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Speaker 2: been with Mint so long. But it is, I think

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Speaker 2: a silver lining, a bright spot, and into it is

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Speaker 2: trying to convince folks by the way that they're not

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Speaker 2: really shutting Mint down. They're kind of using language and

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Speaker 2: I think the CEO responded and said something along the

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Speaker 2: lines of, well, we'll actually keep Mint up longer than

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Speaker 2: we originally said. We realized that this was a quick

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Speaker 2: timeline for people, and so they haven't really said, well

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Speaker 2: how much longer or anything like that. So it's probably

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Speaker 2: still best to look towards the next step. But they've

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Speaker 2: also said that they're just pivoting Mint users to a

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Speaker 2: different app, which is credit Karma, And in all honesty,

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Speaker 2: I'm a fan of credit Karma. I use it myself,

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Speaker 2: got it on my phone. But is this combined super

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Speaker 2: app of credit Karma with the addition of some of

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Speaker 2: those MINT features. Is that going to be sufficient enough

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Speaker 2: for most budgeting officionados. The answer is it's hard to say, right.

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Speaker 2: I think the thing that's going to be lacking in particular,

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Speaker 2: that users are going to feel most is the lack

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Speaker 2: of budgeting tools that MINT currently offers. Right, you can

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Speaker 2: still track your net worth, you can still see a

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Speaker 2: lot of your transactions all in one place, but if

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Speaker 2: you kind of want that nitty gritty budgeting feel, you're

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Speaker 2: gonna have to go elsewhere, and you're gonna have to

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Speaker 2: start paying too. In all likelihood as well, into it

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Speaker 2: wants folks to go to credit karma and just kind

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Speaker 2: of forget that Mint ever existed, But that might not

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Speaker 2: be the best move for most people.

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Speaker 3: Yeah, So the only sort of reputable free alternative that

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Speaker 3: we know about is in Power. But it's also better

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Speaker 3: at net worth than actual budgeting. That's basically what they're

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Speaker 3: It originally started out as a way for you to

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Speaker 3: track your networth, to track your investments, to keep up

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Speaker 3: with that over time, to see what your net worth

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Speaker 3: was as of those to the nitty gritty month to

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Speaker 3: month kind of spending.

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Speaker 2: I guess some helpful tools and calculators over there as well.

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Speaker 2: But you're right, yeah, and the network tracking is their

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Speaker 2: biggest claim to think exactly well, so empower formally known

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Speaker 2: as personal Capital, because the whole idea was free to

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Speaker 2: how much are you actually worth from a financial standpoint,

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Speaker 2: But if you're looking for more robust budgeting software, you're

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Speaker 2: likely going to need to pay. Like Joel said, why

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Speaker 2: NAB so you need a budget?

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Speaker 1: Why NAB? Monarch and co.

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Speaker 3: Pilot are a few of our favorites. Copilot, by the way,

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Speaker 3: only is currently being offered.

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Speaker 1: For iOS, So all the.

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Speaker 3: Windows Android users out there no options there for you.

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Speaker 3: But they all have different pros and different cons and

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Speaker 3: so the best way we felt to address this, We've

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Speaker 3: actually got an article detailing those on our site that

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Speaker 3: will make sure to link to. But personally, what I

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Speaker 3: like using is going to the old school manual manual

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Speaker 3: method and using Excel. And one of the benefits there

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Speaker 3: is that you can pretty much count on the fact

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Speaker 3: that they're never Microsoft is never going to get rid

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Speaker 3: of Excel. Yeah, it's pretty much guaranteed that it will

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Speaker 3: always be backwards compatible. I can go back to budgets

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Speaker 3: that I've had from over a decade ago and see

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Speaker 3: exactly what it was that I was spending money on.

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Speaker 1: Do you know what it costs for Excel for a year.

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Speaker 3: Something like seven bucks a month if you are looking

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Speaker 3: at I think the entire Microsoft Suite month to month

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Speaker 3: for that subscription. But I guess what I wanted to

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Speaker 3: highlight though with that is the fact that a lot

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Speaker 3: of folks will push back against the fact that you

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Speaker 3: have to manually enter all your expenses and how much

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Speaker 3: you make for in our case, our income fluctuates significantly.

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Speaker 1: But that's the whole point.

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Speaker 3: In my opinion, the fact that I am tied to

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Speaker 3: these expenses, I feel them as opposed to like we're

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Speaker 3: talking about when things are on autopay or autobill, you

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Speaker 3: don't feel those charges as much. And it helps me

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Speaker 3: to revisit, weather or not. Some of those expenses move

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Speaker 3: the needle for me and for Kate, for us to

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Speaker 3: kind of have a quick discussion at the end of

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Speaker 3: the month. Typically like it literally it takes like if

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Speaker 3: I do it every single week, it takes about fifteen minutes,

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Speaker 3: like every single week. Otherwise I spend one hour at

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Speaker 3: the end of the month. But it's a good way

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Speaker 3: for me to be in touch with my budget with

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Speaker 3: our expenses for that month.

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Speaker 2: So for you, it's not necessarily a way to save

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Speaker 2: money because something like that, Why now, because you're spending

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Speaker 2: exactly similar wineam is going to make it easier. But

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Speaker 2: then in the same vein the manual aspect of it,

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Speaker 2: for you is actually a win, whereas for probably a

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Speaker 2: lot of people they would say that's a lotesome.

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Speaker 1: Yeah.

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Speaker 3: Well, and the fact is, I think it's called money

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Speaker 3: in Excel. So there's a feature that is built into

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Speaker 3: Excel that allows you, via Plaid or some of those

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Speaker 3: different interchanges that connect your accounts to software, it will

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Speaker 3: automatically update it for you. But the features are pretty

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Speaker 3: limited with Excel or money in Excel. But there's this

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Speaker 3: other budgeting software Tiller. Pretty sure we've talked about it

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Speaker 3: on the show before, but Tiller is awesome. It costs money,

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Speaker 3: but they have a ton of different features, and they

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Speaker 3: have such a great community of folks who are essentially

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Speaker 3: created like writing software and creating tools for the Tiller community. Specifically,

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Speaker 3: when it comes to bringing importing your data from Mint,

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Speaker 3: I'm pretty sure that was a tool that.

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Speaker 1: Was created by one of their users, which is really cool.

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Speaker 3: It's really cool to see folks coming together and nerding

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Speaker 3: out over their budgets as opposed to it being provided

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Speaker 3: by a giant, massive company like Microsoft.

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Speaker 1: No.

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Speaker 2: I think what you're getting at here is it's kind

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Speaker 2: of different strokes for different folks because all of these

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Speaker 2: budgeting apps are made differently, and so if you're into

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Speaker 2: kind of snazzy AI infused sort of money technology, Copilot

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Speaker 2: is cool for like the Apple users out there. Or

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Speaker 2: if you're into more spreadsheety stuff but you want it

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Speaker 2: to be like Excel but on steroids, then Tiller is

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Speaker 2: a great way to go. Or if let's say Matt

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Speaker 2: you mentioned Monarch, well, the guy who basically helped to

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Speaker 2: start Mint, he launched Monarch Money, and so that's a

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Speaker 2: great place to turn. If you're like, I really want

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Speaker 2: things to stay more the same, then I think that's

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Speaker 2: probably a good place to go. And by the way,

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Speaker 2: you don't necessarily have to start over from scratch. You

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Speaker 2: can download a lot of information from Mint before Mint

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Speaker 2: goes away. We recommend doing that asap, sooner rather than later,

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Speaker 2: and then importing all those transactions into the budgeting software

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Speaker 2: that you're moving to check to see if there's compatibility

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Speaker 2: if they're willing to that. But for instance, Monarch has

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Speaker 2: made it really really easy to kind of help you

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Speaker 2: make that transition.

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Speaker 3: Well, they all basically see this as a massive opportunity

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Speaker 3: for their, say, to get all of the millions of

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Speaker 3: people who have been very happy with Mint over the

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Speaker 3: years and who are no longer being served.

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Speaker 2: Any budgeting app. Somebody who runs a budgeting app, their

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Speaker 2: I've got as wide as saucers when they saw that

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Speaker 2: this announcements and they were like, Okay, we're gonna be

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Speaker 2: able to hopefully onboard a bunch of people and this,

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Speaker 2: like you said, Matt, like I think this could be

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Speaker 2: good for a lot of people, and maybe you're going

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Speaker 2: to get a more robust software.

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Speaker 3: It's like the kick in the pants that has got

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Speaker 3: you to finally move and perhaps to find something that's

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Speaker 3: going to work a little bit, a little bit.

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Speaker 1: Better for you. Exactly.

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Speaker 3: I will say, if you found that maybe you weren't

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Speaker 3: doing a whole lot of detailed budgeting, like you can

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Speaker 3: actually give credit Karma a shot, you know. So they

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Speaker 3: are moving Mint users over in phases, so you can

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Speaker 3: expect to hear directly from Mint from Credit Karma very

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Speaker 3: soon if you haven't already. But for everyone else out

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Speaker 3: there looking to manually download that data, you want to

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Speaker 3: have that on hand.

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Speaker 1: Literally, go to.

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Speaker 3: Your account, select data Privacy, then select download, and then

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Speaker 3: select mint and you're going to have all that information

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Speaker 3: on hand wherever it is that you end up, because

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Speaker 3: you may not even know where it is that you

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Speaker 3: end up for several more months. But to be able

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Speaker 3: to have that have that store of information is going

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Speaker 3: to be really value and.

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Speaker 2: You can basically download it in what a CSV file.

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Speaker 2: I don't even know what that stands for, but that's

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Speaker 2: that's the file.

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Speaker 3: Type comma something values. Literally that stands for something.

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Speaker 2: Yeah, not a tech nerd don't know what that means,

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Speaker 2: but that's the type of file you're going to be downloading.

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Speaker 3: I feel like I've let you let you down. If

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Speaker 3: dot csv is something I should personally know. This is

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Speaker 3: the role to play on the show, Matt. Everyone knows this,

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Speaker 3: but you're the tech nerd. I don't follow that stuff,

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Speaker 3: and so you've personally let me down today. But it's okay,

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Speaker 3: we'll move through this.

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Speaker 2: And I guess if you were to personally hold my

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Speaker 2: feet to the fire, I would probably say Wine app.

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Speaker 2: We've just there's so many how to money users that

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Speaker 2: have benefited so much from Wineapp. I love kind of

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Speaker 2: the intentionality behind the wineapp software. But each of these,

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Speaker 2: like we said, each of these budgeting software is unique.

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Speaker 2: For instance, on Copilot, I love their recurring expense feature.

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Speaker 2: It's one of the best things they've got going on.

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Speaker 2: They have a rollovers feature that's helpful too, and it

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Speaker 2: has these like learning capabilities that kind of remind me

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Speaker 2: of the nest thermostat Matt. It's like, oh, kind of

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Speaker 2: trying to figure out, oh, well, how do you work

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Speaker 2: with money, and we want to adapt to the way

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Speaker 2: that you save, spend and think about money. It just

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Speaker 2: wouldn't be mad about paying for the budgeting app either.

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Speaker 2: I think it's not the worst thing in the world.

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Speaker 2: Dep skin in the game, you're more likely to actually

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Speaker 2: use it and get benefit from it. And I think

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Speaker 2: a lot of frugal people would say, man, I want

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Speaker 2: to avoid the fee and don't want to pay a

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Speaker 2: dime for it. But I think think for like the

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Speaker 2: right app, that kind of becomes maybe the grand central

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Speaker 2: station of your finances, where everything's coming into one place

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Speaker 2: and you're able to look at it and see how

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Speaker 2: how good of a job you're doing or then like

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Speaker 2: this could save you quite a bit more than it

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Speaker 2: actually costs.

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Speaker 1: Yeah.

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Speaker 3: And by the way I looked it up, Comma separated values. Okay,

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Speaker 3: not Comma something value, well close enough, that's separate.

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Speaker 1: Yeah.

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Speaker 3: No, I totally agree with what you're saying as far

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Speaker 3: as paying for that software, because, like we were talking

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Speaker 3: about with ment, if you're receiving something for free, you

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Speaker 3: aren't receiving something for free product. Your data is being harvested.

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Speaker 3: And when it comes to something that is so core

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Speaker 3: to our personal security and our finances, man, I would

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Speaker 3: be more than willing to pay for something that you

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Speaker 3: know you're not gonna be receiving ads and spam based

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Speaker 3: on some of the expenses that are showing up within

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Speaker 3: you within your monthly statements.

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Speaker 2: Yeah. And one of the downsides of credit karma. I

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Speaker 2: like credit karma a lot, and we recommend it here

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Speaker 2: on the show in so many ways, but they're always

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Speaker 2: telling you, hey, this financial product might be perfect for

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Speaker 2: you based on what we know about you, which is

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Speaker 2: a lot, and so you might feel a little uncomfortable

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Speaker 2: getting served some of those ads. But it's also kind

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Speaker 2: of Yeah, there's no better free tool out there to

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Speaker 2: kind of help you manage and stay on top of

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Speaker 2: what's going on with your credit.

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Speaker 1: So there is a trade off. It's just important to

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Speaker 1: know what that is. That's right, man.

440
00:17:41,160 --> 00:17:43,719
Speaker 3: All Right, We've got more listener questions that get to

441
00:17:43,880 --> 00:17:45,720
Speaker 3: including we're going to hear from a listener who has

442
00:17:45,800 --> 00:17:49,480
Speaker 3: experienced the joy and the freedom of not necessarily being

443
00:17:49,560 --> 00:17:53,120
Speaker 3: tied down to a singular employer. But there's a downside

444
00:17:53,119 --> 00:17:55,600
Speaker 3: to that as well. How do you say for retirement.

445
00:17:55,600 --> 00:18:06,159
Speaker 3: We'll get to that plus others right after this. All right, man,

446
00:18:06,160 --> 00:18:08,320
Speaker 3: we're just getting started on this listener question money. We

447
00:18:08,400 --> 00:18:10,359
Speaker 3: got many more listener questions to get to. Yeah, we

448
00:18:10,400 --> 00:18:13,000
Speaker 3: do a lot of personal finance advice that we we

449
00:18:13,080 --> 00:18:15,480
Speaker 3: got to divulge. But this next one comes from a

450
00:18:15,520 --> 00:18:17,879
Speaker 3: listener who is moving across the country and wants to

451
00:18:17,920 --> 00:18:19,159
Speaker 3: know if you should keep the house he's.

452
00:18:19,000 --> 00:18:22,399
Speaker 5: Got oudy Mountain Joel. This is Joshua from Dallas, Texas.

453
00:18:22,920 --> 00:18:26,359
Speaker 5: Y'all's guidance over the years has been so helpful, and

454
00:18:26,560 --> 00:18:28,200
Speaker 5: I just wanted to let you know how much I

455
00:18:28,280 --> 00:18:32,879
Speaker 5: appreciate y'all. But I also have a question regarding renting

456
00:18:32,920 --> 00:18:36,119
Speaker 5: out of property. So my wife and I bought a

457
00:18:36,160 --> 00:18:39,520
Speaker 5: house in Dallas a couple of years ago, and we

458
00:18:39,640 --> 00:18:41,880
Speaker 5: liked it. We liked the house, we loved the neighborhood.

459
00:18:42,600 --> 00:18:46,720
Speaker 5: But I was just offered a new job, and it's

460
00:18:46,720 --> 00:18:48,399
Speaker 5: a job that I've been trying to get for a

461
00:18:48,440 --> 00:18:50,760
Speaker 5: really long time, so I'm really excited about it, and

462
00:18:50,800 --> 00:18:54,120
Speaker 5: I accepted the offer. The thing is, it's gonna require

463
00:18:54,160 --> 00:18:57,560
Speaker 5: us to move to New York, so that kind of

464
00:18:57,600 --> 00:18:58,600
Speaker 5: left us wondering what.

465
00:18:58,600 --> 00:19:00,960
Speaker 1: To do with the house that we own. We've only

466
00:19:01,000 --> 00:19:01,880
Speaker 1: owned for a couple of.

467
00:19:01,840 --> 00:19:05,439
Speaker 5: Years, so we're really leaning towards renting it out. But

468
00:19:05,600 --> 00:19:09,000
Speaker 5: we're complete novices when it comes to renting out a property,

469
00:19:09,800 --> 00:19:12,960
Speaker 5: managing a property, and all that stuff. So always wanted

470
00:19:12,960 --> 00:19:15,800
Speaker 5: to get your general advice on that. Since you guys

471
00:19:15,840 --> 00:19:21,160
Speaker 5: have owned free properties yourselves, do we hire a property manager?

472
00:19:21,560 --> 00:19:24,760
Speaker 1: How do we calculate the rent? Stuff like that.

473
00:19:25,000 --> 00:19:28,000
Speaker 5: So, since this job is going to require us to

474
00:19:28,200 --> 00:19:31,359
Speaker 5: relocate every two to three years, I think hiring a

475
00:19:31,400 --> 00:19:33,880
Speaker 5: property property manager is going to be the best route

476
00:19:33,880 --> 00:19:34,800
Speaker 5: for us, but we're not sure.

477
00:19:35,320 --> 00:19:38,040
Speaker 1: So yeah, any and all advice would be much appreciated. Thanks. Y'all.

478
00:19:38,080 --> 00:19:40,960
Speaker 1: All right, So Joshua was going from Texas to New York.

479
00:19:40,960 --> 00:19:42,879
Speaker 3: It makes me think of the salsa What was that

480
00:19:42,960 --> 00:19:46,480
Speaker 3: salsa commercial from the like the eighties New York City?

481
00:19:46,880 --> 00:19:50,000
Speaker 1: Well, yeah, what what was that pace to contest? Yeah?

482
00:19:50,000 --> 00:19:52,520
Speaker 1: Oh my gosh, that was a classic commercial. It's so

483
00:19:52,920 --> 00:19:53,520
Speaker 1: freaking good.

484
00:19:53,720 --> 00:19:56,080
Speaker 3: And that's totally what what josh is doing. Although he

485
00:19:56,119 --> 00:19:57,760
Speaker 3: didn't I guess he didn't. Did he say that he

486
00:19:57,840 --> 00:19:59,159
Speaker 3: was going to be moving to New York City or

487
00:19:59,200 --> 00:20:01,280
Speaker 3: to New York either, w I know that the cost

488
00:20:01,320 --> 00:20:03,480
Speaker 3: of living is going to be I'm sure significantly more

489
00:20:03,520 --> 00:20:04,520
Speaker 3: than where he is current.

490
00:20:04,359 --> 00:20:06,080
Speaker 1: And guess what, they don't have brisket quite as good

491
00:20:06,160 --> 00:20:08,120
Speaker 1: up there either. Well, I guarantee they don't.

492
00:20:08,280 --> 00:20:10,360
Speaker 3: But regardless, I'm guessing you might want to make sure

493
00:20:10,359 --> 00:20:13,040
Speaker 3: that you are planning a little more accordingly depending on

494
00:20:13,160 --> 00:20:16,960
Speaker 3: the cost of living, specifically given the specific locations where

495
00:20:17,000 --> 00:20:18,920
Speaker 3: you might know, because I guess if he's like, We've

496
00:20:18,920 --> 00:20:21,080
Speaker 3: got a friend up in Rochester and it's not that expensive,

497
00:20:21,119 --> 00:20:23,159
Speaker 3: I guess to live up there. No, they're definitely parts

498
00:20:23,200 --> 00:20:27,280
Speaker 3: of New York that aren't the more rural areas terribly expensive.

499
00:20:27,280 --> 00:20:29,520
Speaker 2: But if you're moving into the city, the actual city,

500
00:20:29,560 --> 00:20:32,160
Speaker 2: it's going to be shocking, like on every single level,

501
00:20:32,240 --> 00:20:34,800
Speaker 2: at least from everything we hear from friends who live

502
00:20:34,800 --> 00:20:37,440
Speaker 2: in New York City who have moved there, Matt. Even

503
00:20:37,440 --> 00:20:39,600
Speaker 2: when Emily and I went there just for a weekend trip,

504
00:20:39,640 --> 00:20:41,560
Speaker 2: we were like, oh my gosh, Like everything is so

505
00:20:41,640 --> 00:20:45,040
Speaker 2: much more expensive here. The hotels are crazy expensive. Getting

506
00:20:45,119 --> 00:20:49,679
Speaker 2: a beer out is super expensive. But there's so much to.

507
00:20:50,080 --> 00:20:50,720
Speaker 1: Talk about here.

508
00:20:50,760 --> 00:20:54,000
Speaker 2: When it comes to Joshua's question, and I think before

509
00:20:54,040 --> 00:20:56,280
Speaker 2: we kind of say hey, here's exactly how you do it,

510
00:20:56,680 --> 00:20:59,600
Speaker 2: let's maybe throw up the yellow flag, a little caution

511
00:20:59,720 --> 00:21:01,560
Speaker 2: flag to say, should you be doing it? Is this

512
00:21:01,600 --> 00:21:03,320
Speaker 2: the right move for you to do? Like should you

513
00:21:03,359 --> 00:21:05,040
Speaker 2: be going down this direction to begin with? And so

514
00:21:05,400 --> 00:21:07,480
Speaker 2: what should you do with the house? Well, I love

515
00:21:07,480 --> 00:21:09,040
Speaker 2: that you're up for running it out. I love that

516
00:21:09,080 --> 00:21:11,320
Speaker 2: you're thinking about going in this direction. I love that

517
00:21:11,400 --> 00:21:14,640
Speaker 2: you want to turn this primary home into a rental property.

518
00:21:14,880 --> 00:21:17,880
Speaker 2: It might be the right move. But before I get

519
00:21:18,119 --> 00:21:19,399
Speaker 2: we give you like the slap on the back, the

520
00:21:19,440 --> 00:21:21,280
Speaker 2: how to money steal approval of approval and tell you

521
00:21:21,359 --> 00:21:23,640
Speaker 2: to go for it, which again might be the right move.

522
00:21:23,920 --> 00:21:26,400
Speaker 2: We just want to offer like a devil's advocate at

523
00:21:26,400 --> 00:21:28,720
Speaker 2: take first, or just say, hey, here's a few questions

524
00:21:28,720 --> 00:21:31,240
Speaker 2: you need to ask yourself before you slam dunk, say

525
00:21:31,240 --> 00:21:33,359
Speaker 2: this is the right decision. And first thing's first. I mean,

526
00:21:33,400 --> 00:21:35,800
Speaker 2: while the housing market has stalled out quite a bit,

527
00:21:35,920 --> 00:21:38,520
Speaker 2: it feels like there's not a whole lot of movement happening.

528
00:21:38,760 --> 00:21:41,720
Speaker 2: Prices are still near all time highs, and so if

529
00:21:41,760 --> 00:21:44,560
Speaker 2: you are one of those few listings out there, you're

530
00:21:44,560 --> 00:21:46,200
Speaker 2: going to stand out. And for the few people who

531
00:21:46,200 --> 00:21:48,080
Speaker 2: are still looking, hey, you might be one of the

532
00:21:48,080 --> 00:21:51,760
Speaker 2: only attractive homes in the vicinity. So it's not like

533
00:21:51,800 --> 00:21:55,040
Speaker 2: home prices in most places across the country have fallen

534
00:21:55,080 --> 00:21:58,360
Speaker 2: off a cliffs. It still might be a good time

535
00:21:58,359 --> 00:22:00,919
Speaker 2: to sell, is what I'm trying to say. Like, if

536
00:22:00,960 --> 00:22:02,280
Speaker 2: you opt to rent that home out for a few

537
00:22:02,359 --> 00:22:05,120
Speaker 2: years and then sell it, prices might not be as good.

538
00:22:05,200 --> 00:22:07,120
Speaker 2: They might be better, but they might not be as good.

539
00:22:07,280 --> 00:22:09,679
Speaker 2: So that's important to mention. And and let's say you

540
00:22:09,680 --> 00:22:11,200
Speaker 2: opt to hold on to it for a few years

541
00:22:11,440 --> 00:22:13,920
Speaker 2: three four, five years, and then you opt to sell.

542
00:22:13,960 --> 00:22:15,840
Speaker 2: At that point you could be faced with a much

543
00:22:15,880 --> 00:22:18,399
Speaker 2: bigger tax bill than if you were to sell the

544
00:22:18,440 --> 00:22:20,800
Speaker 2: home now, which would all those gains would come to

545
00:22:20,800 --> 00:22:23,000
Speaker 2: you tax free. So it's important to mention the tax

546
00:22:23,000 --> 00:22:25,880
Speaker 2: implications of turning this into a rental and then maybe

547
00:22:25,920 --> 00:22:28,200
Speaker 2: changing your mind a few years down the road. Also,

548
00:22:28,440 --> 00:22:31,000
Speaker 2: does your specific home is it a good rental? Run

549
00:22:31,000 --> 00:22:32,600
Speaker 2: the numbers right? If you love the house, you got

550
00:22:32,640 --> 00:22:35,000
Speaker 2: a super low mortgage rate, and you think the location

551
00:22:35,520 --> 00:22:37,320
Speaker 2: where your home is has a lot of room to run.

552
00:22:37,359 --> 00:22:39,000
Speaker 2: You say this is a neighborhood that's on the come up,

553
00:22:39,200 --> 00:22:41,120
Speaker 2: and maybe you stand to make a decent chunk each

554
00:22:41,200 --> 00:22:44,280
Speaker 2: month even after those expenses. It could be a solid choice.

555
00:22:44,320 --> 00:22:46,320
Speaker 2: But you want to run through all those filters first

556
00:22:46,359 --> 00:22:48,919
Speaker 2: before you just automatically say this is a great investment choice.

557
00:22:49,280 --> 00:22:51,879
Speaker 2: Maybe maybe the better choice is to sell it and

558
00:22:51,920 --> 00:22:54,520
Speaker 2: invest those that money in a different way instead.

559
00:22:54,600 --> 00:22:56,720
Speaker 3: Exactly, Yeah, it depends if he has a plan for

560
00:22:56,880 --> 00:22:59,400
Speaker 3: the proceeds of that home sale. But again, so much

561
00:22:59,600 --> 00:23:02,640
Speaker 3: new one is involved when it comes to making this choice. Honestly,

562
00:23:02,720 --> 00:23:04,399
Speaker 3: like it would just be more of a slam dunk

563
00:23:04,440 --> 00:23:06,080
Speaker 3: if you were just moving down the street and if

564
00:23:06,080 --> 00:23:08,920
Speaker 3: you're self managing. But when you're moving across the country,

565
00:23:09,200 --> 00:23:11,840
Speaker 3: things change. First of all, you're a first time landlord,

566
00:23:11,960 --> 00:23:13,800
Speaker 3: and so that makes things a little trickier. But not

567
00:23:13,840 --> 00:23:17,359
Speaker 3: only that, you're a long distance first time landlord, which

568
00:23:17,480 --> 00:23:20,200
Speaker 3: make complicates things even more. But then fact is too

569
00:23:20,640 --> 00:23:22,480
Speaker 3: you are moving for your job, which tells me that

570
00:23:22,520 --> 00:23:26,159
Speaker 3: you're pretty dedicated to your job, which tells me maybe

571
00:23:26,160 --> 00:23:29,040
Speaker 3: it's a fairly highly demanding job. So on top of that,

572
00:23:29,119 --> 00:23:31,960
Speaker 3: you've got a job where a lot of your time

573
00:23:32,040 --> 00:23:33,560
Speaker 3: during the day is going to be occupied by your

574
00:23:33,600 --> 00:23:35,879
Speaker 3: professional career, which is great. I think it's awesome for

575
00:23:35,960 --> 00:23:38,480
Speaker 3: you to focus on that. Not everybody has the kind

576
00:23:38,520 --> 00:23:40,640
Speaker 3: of job or the kind of career that allows them

577
00:23:40,960 --> 00:23:44,480
Speaker 3: to self manage some rentals on the side. But that,

578
00:23:44,600 --> 00:23:46,720
Speaker 3: coupled with the fact that your first time landlord, coupled

579
00:23:46,760 --> 00:23:49,640
Speaker 3: with the fact that you are doing this from afar,

580
00:23:50,359 --> 00:23:54,080
Speaker 3: makes it much more difficult to actually do yourself. And

581
00:23:54,119 --> 00:23:57,080
Speaker 3: that's when looking towards management. We certainly think that that

582
00:23:57,240 --> 00:23:59,760
Speaker 3: for you makes a whole lot more sense, even though

583
00:23:59,760 --> 00:24:01,040
Speaker 3: it's cost you more money.

584
00:24:01,080 --> 00:24:02,920
Speaker 2: And Joshua mentioned he's not just moving to New York,

585
00:24:02,920 --> 00:24:05,120
Speaker 2: but then he might be moving other places twos every

586
00:24:05,119 --> 00:24:07,320
Speaker 2: two years after that, right, so it could just be

587
00:24:07,960 --> 00:24:12,200
Speaker 2: adding a lot of hassle to an already intense lifestyle.

588
00:24:12,680 --> 00:24:14,600
Speaker 2: It's just important to ask yourself those questions, Well, are

589
00:24:14,640 --> 00:24:17,879
Speaker 2: you going to have the time to even interview property

590
00:24:17,920 --> 00:24:20,560
Speaker 2: managers and find a good one. And I don't want

591
00:24:20,600 --> 00:24:22,440
Speaker 2: to oversell the nature of your job that you're working

592
00:24:22,440 --> 00:24:24,840
Speaker 2: one hundred hours a week or something like that. That could

593
00:24:24,840 --> 00:24:26,720
Speaker 2: be really far from the truth. But I think it's

594
00:24:26,760 --> 00:24:29,399
Speaker 2: just important to think through the potential headaches before you

595
00:24:29,480 --> 00:24:31,800
Speaker 2: actually go all the way down this path and say, boom,

596
00:24:31,800 --> 00:24:33,640
Speaker 2: I've really wanted to own rental real estate. I feel

597
00:24:33,640 --> 00:24:36,800
Speaker 2: like I see that map with talking to somebody recently

598
00:24:36,800 --> 00:24:39,560
Speaker 2: and they bought their first investment property, and I was

599
00:24:39,600 --> 00:24:42,159
Speaker 2: proud of them, Hey, congratulations, a way to go. But

600
00:24:42,240 --> 00:24:44,439
Speaker 2: I could also tell they just so badly wanted to

601
00:24:44,480 --> 00:24:46,760
Speaker 2: have an investment property that it didn't seem like the

602
00:24:46,800 --> 00:24:49,960
Speaker 2: purchase was the best right. And so I think that

603
00:24:49,960 --> 00:24:52,480
Speaker 2: that's a pit, a trap that some people fall into.

604
00:24:52,480 --> 00:24:54,720
Speaker 1: Sometimes it's like numbers don't necessarily make all the sense. Yeah,

605
00:24:54,760 --> 00:24:55,840
Speaker 1: it's like I want to be a real.

606
00:24:55,760 --> 00:24:58,439
Speaker 2: Estate investor, and then you make a decision that's not

607
00:24:58,840 --> 00:25:01,000
Speaker 2: it's not the right one, just because you so badly

608
00:25:01,080 --> 00:25:02,600
Speaker 2: want to have that attached here.

609
00:25:02,720 --> 00:25:04,760
Speaker 3: You may be more married to the idea of being

610
00:25:04,760 --> 00:25:06,600
Speaker 3: a real estate investor as opposed to how much is

611
00:25:06,640 --> 00:25:08,880
Speaker 3: this actually making you money? And that's why we're talking

612
00:25:08,880 --> 00:25:11,000
Speaker 3: about what to do with the proceeds, because like, he

613
00:25:11,000 --> 00:25:13,560
Speaker 3: didn't say anything about whether or not his retirement accounts

614
00:25:13,560 --> 00:25:16,800
Speaker 3: are fully maxed out, right, But if we had that information,

615
00:25:16,880 --> 00:25:19,160
Speaker 3: I think we could provide a little more at least

616
00:25:19,160 --> 00:25:21,160
Speaker 3: some more thoughts on what to do without money. Because

617
00:25:21,240 --> 00:25:23,360
Speaker 3: let's say, for instance, he hadn't maxed out. I think

618
00:25:23,359 --> 00:25:25,159
Speaker 3: it's him and his partner or him and his wife.

619
00:25:25,400 --> 00:25:27,720
Speaker 3: Let's say they haven't contributed to this year as roth Ira.

620
00:25:28,600 --> 00:25:31,720
Speaker 3: That's thirteen thousand dollars right there. And let's say boom

621
00:25:31,760 --> 00:25:33,920
Speaker 3: was about to be January. That's another fourteenth We're looking

622
00:25:33,960 --> 00:25:35,040
Speaker 3: at twenty seven thousand dollars.

623
00:25:35,080 --> 00:25:35,600
Speaker 1: That's close to.

624
00:25:35,560 --> 00:25:38,159
Speaker 3: Thirty grand in the blink of an eye. That he

625
00:25:38,160 --> 00:25:40,720
Speaker 3: would be able to immediately fund those dollars towards an

626
00:25:40,800 --> 00:25:43,520
Speaker 3: investment that he doesn't have to do anything with. That

627
00:25:43,640 --> 00:25:46,560
Speaker 3: is in one of our most favorite flexible retirement case.

628
00:25:46,400 --> 00:25:47,840
Speaker 1: The easy button. And again, you and I we're real

629
00:25:47,960 --> 00:25:48,560
Speaker 1: estate investors.

630
00:25:48,600 --> 00:25:50,680
Speaker 2: We own a small rental portfolios here where we live,

631
00:25:50,680 --> 00:25:53,719
Speaker 2: and so we're certainly not against owning real estate. We

632
00:25:53,800 --> 00:25:55,080
Speaker 2: just want you to do it with eyes wide open.

633
00:25:55,080 --> 00:25:57,280
Speaker 2: There's a whole lot of people in the real estate

634
00:25:57,320 --> 00:26:00,520
Speaker 2: influencer community who would be like it all costs. Real

635
00:26:00,600 --> 00:26:02,320
Speaker 2: estate's better than anything else in this world. You're an

636
00:26:02,320 --> 00:26:04,080
Speaker 2: idiot if you don't like if you're not a real

637
00:26:04,160 --> 00:26:07,120
Speaker 2: estate investor. But we don't necessarily side with a lot

638
00:26:07,119 --> 00:26:10,080
Speaker 2: of those people. We think sometimes their math is under

639
00:26:10,119 --> 00:26:13,240
Speaker 2: sold and how things actually play out in reality, it's

640
00:26:13,280 --> 00:26:14,920
Speaker 2: not as pretty as they make it seem. Okay, but

641
00:26:14,960 --> 00:26:16,880
Speaker 2: let's talk about property managers. If you do to go

642
00:26:17,040 --> 00:26:19,480
Speaker 2: decide to go down this route. Typically they charge something

643
00:26:19,520 --> 00:26:21,600
Speaker 2: like half of the first month's rent for a tenant

644
00:26:21,640 --> 00:26:23,879
Speaker 2: that they find, and then ten percent of the monthly

645
00:26:23,920 --> 00:26:26,840
Speaker 2: rent every month they're after. And so we would say,

646
00:26:26,880 --> 00:26:29,280
Speaker 2: interview a few. Don't just go with the cheapest, Matt,

647
00:26:29,320 --> 00:26:31,560
Speaker 2: I just like it what you pay for. I hired

648
00:26:31,600 --> 00:26:33,840
Speaker 2: a rental property manager. I don't know, I've talked about

649
00:26:33,840 --> 00:26:36,840
Speaker 2: this much on the show. For half of my rental properties,

650
00:26:36,840 --> 00:26:38,000
Speaker 2: I kind of wanted to give it a go. I'm

651
00:26:38,000 --> 00:26:41,600
Speaker 2: still self managing half, but then I've hired someone and

652
00:26:41,640 --> 00:26:43,640
Speaker 2: he's actually a friend who I trust a whole lot

653
00:26:43,640 --> 00:26:46,320
Speaker 2: because he runs his rental properties similarly to the way

654
00:26:46,359 --> 00:26:48,760
Speaker 2: I do, but he also manages other people's rentals on

655
00:26:48,840 --> 00:26:50,879
Speaker 2: the side, and it's been great. I trust him, I

656
00:26:50,880 --> 00:26:53,480
Speaker 2: trust the way he manages repairs, I trust the way

657
00:26:53,520 --> 00:26:56,600
Speaker 2: he screens tenants. We talked about all that stuff on

658
00:26:56,720 --> 00:26:59,679
Speaker 2: the front end, but it's important to know don't just

659
00:26:59,720 --> 00:27:02,440
Speaker 2: go with cheapest person. I guess what, I'll only charge

660
00:27:02,440 --> 00:27:04,639
Speaker 2: you six percent a month of the rent. Well, that

661
00:27:04,720 --> 00:27:06,640
Speaker 2: might not actually be the best play for you, because

662
00:27:06,680 --> 00:27:08,240
Speaker 2: in the long run it might not be best for

663
00:27:08,280 --> 00:27:09,800
Speaker 2: your house and finding good people to live in that

664
00:27:09,800 --> 00:27:11,200
Speaker 2: house exactly.

665
00:27:10,720 --> 00:27:13,879
Speaker 3: And so Joshua. He also was asking about how you

666
00:27:13,920 --> 00:27:16,800
Speaker 3: can calculate the rent amount. Well, that's something, of course

667
00:27:16,800 --> 00:27:19,280
Speaker 3: that the property manager can help you with. But you

668
00:27:19,280 --> 00:27:21,359
Speaker 3: always want to double check their work. This isn't something

669
00:27:21,359 --> 00:27:23,480
Speaker 3: that you want to completely rely on them. There's still

670
00:27:23,480 --> 00:27:26,480
Speaker 3: gonna be some involvement where you're gonna want to double.

671
00:27:26,320 --> 00:27:26,800
Speaker 1: Check their work.

672
00:27:26,800 --> 00:27:28,760
Speaker 2: I guess, like I said, it's similar to hiring a

673
00:27:29,000 --> 00:27:31,199
Speaker 2: financial advisor. It's like you you should have a lot

674
00:27:31,240 --> 00:27:32,800
Speaker 2: of pointed questions you want to ask that person.

675
00:27:32,960 --> 00:27:34,560
Speaker 1: It's not just handing over the keys to the.

676
00:27:34,480 --> 00:27:37,000
Speaker 3: Car, Yeah, because if you do, then there could be

677
00:27:37,080 --> 00:27:39,440
Speaker 3: worse outcomes. Let's just say that, for instance, asking two

678
00:27:39,480 --> 00:27:42,359
Speaker 3: hundred dollars less than the marker rate in rent, well,

679
00:27:42,400 --> 00:27:43,560
Speaker 3: that impacts your returns in.

680
00:27:43,480 --> 00:27:44,320
Speaker 1: A pretty big way.

681
00:27:44,520 --> 00:27:46,879
Speaker 3: Just because you hire them doesn't mean that you just

682
00:27:47,040 --> 00:27:50,359
Speaker 3: outsource every single thing about that property. And so the

683
00:27:50,359 --> 00:27:52,040
Speaker 3: best thing to do is just to look on Zillow,

684
00:27:52,240 --> 00:27:54,800
Speaker 3: look around, see what other similar houses are ready for

685
00:27:55,119 --> 00:27:58,080
Speaker 3: in your neck of the woods, given the improvements.

686
00:27:57,480 --> 00:27:59,480
Speaker 1: That you made, the curb appeal that it has, the.

687
00:27:59,480 --> 00:28:01,720
Speaker 3: Different amends and these keep all of that in mind,

688
00:28:01,720 --> 00:28:03,360
Speaker 3: and that can help you to hone in on.

689
00:28:03,320 --> 00:28:04,080
Speaker 1: A specific number.

690
00:28:04,160 --> 00:28:06,040
Speaker 2: Yeah, Mat, I mean I was shocked looking in our

691
00:28:06,080 --> 00:28:09,880
Speaker 2: neighborhood Facebook group recently. Sometimes people list their rentals right

692
00:28:09,920 --> 00:28:11,720
Speaker 2: that they're putting on the market. It's like a two

693
00:28:11,760 --> 00:28:13,800
Speaker 2: two fourteen hundred square feet for three grand, And I

694
00:28:13,800 --> 00:28:16,000
Speaker 2: was like, oh, man, the market now, if this is

695
00:28:16,080 --> 00:28:18,240
Speaker 2: actually what this person's going to be able to command,

696
00:28:18,359 --> 00:28:20,520
Speaker 2: The market's gone up more than I thought. And it

697
00:28:21,040 --> 00:28:23,080
Speaker 2: takes a while to kind of get familiar. It takes

698
00:28:23,119 --> 00:28:25,360
Speaker 2: kind of looking regularly when it comes to if you're

699
00:28:25,359 --> 00:28:28,160
Speaker 2: an investor and you're looking to buy a home, having

700
00:28:28,200 --> 00:28:31,440
Speaker 2: your pulse on the market means looking at Redfinzillo, talking

701
00:28:31,520 --> 00:28:33,120
Speaker 2: to realtors. I mean, it's a lot of that kind

702
00:28:33,160 --> 00:28:36,640
Speaker 2: of work for every week for years, or at least

703
00:28:36,680 --> 00:28:38,520
Speaker 2: for months on end to feel like you are well

704
00:28:38,520 --> 00:28:41,520
Speaker 2: acquainted with when a good deal comes along. And the

705
00:28:41,560 --> 00:28:43,320
Speaker 2: same is true as a lander when you're trying to

706
00:28:43,320 --> 00:28:45,160
Speaker 2: figure out how to price that home. If you want

707
00:28:45,200 --> 00:28:46,360
Speaker 2: to be great at it, you kind of have to

708
00:28:46,440 --> 00:28:48,520
Speaker 2: obsess over it just a little bit. But I also

709
00:28:48,600 --> 00:28:51,080
Speaker 2: want to mention to be picky about the tenants that

710
00:28:51,120 --> 00:28:53,080
Speaker 2: you led into that house. We did a whole episode

711
00:28:53,400 --> 00:28:56,320
Speaker 2: on effective tenants screening back in episode forty four, so

712
00:28:56,360 --> 00:29:00,000
Speaker 2: that was a really long time ago. But the truth is,

713
00:29:00,240 --> 00:29:02,040
Speaker 2: and I can't say this enough, this is the most

714
00:29:02,160 --> 00:29:04,840
Speaker 2: underrated part of owning an investment property, right. A good

715
00:29:04,880 --> 00:29:08,200
Speaker 2: tenant goes a long long way. And Matt, I think

716
00:29:08,200 --> 00:29:10,120
Speaker 2: you would agree with me. We'd both rather miss a

717
00:29:10,160 --> 00:29:13,240
Speaker 2: month of rent and wait to find someone great with

718
00:29:13,320 --> 00:29:15,240
Speaker 2: who's got like solid credit, a good job, and a

719
00:29:15,240 --> 00:29:17,640
Speaker 2: good landlord reference. Like we'd rather say, you know what,

720
00:29:17,800 --> 00:29:19,400
Speaker 2: I'm going to lose a month's worth of rent in

721
00:29:19,480 --> 00:29:21,200
Speaker 2: order to ensure that the person I'm getting in there

722
00:29:21,480 --> 00:29:23,560
Speaker 2: is top notch as opposed to someone that you're just

723
00:29:23,640 --> 00:29:24,200
Speaker 2: not sure about.

724
00:29:24,280 --> 00:29:25,320
Speaker 1: Makes all the difference in the world.

725
00:29:25,400 --> 00:29:27,680
Speaker 2: Yeah, And so when you're interviewing property managers, ask about

726
00:29:27,720 --> 00:29:29,959
Speaker 2: what that criteria they use to find a tenant, and

727
00:29:30,080 --> 00:29:32,440
Speaker 2: ask how they think about repairs and maintenance for the property.

728
00:29:32,520 --> 00:29:34,800
Speaker 2: And if you're wondering where to start interviewing, where to

729
00:29:34,840 --> 00:29:37,080
Speaker 2: turn to find a property manager, ask a real estate

730
00:29:37,120 --> 00:29:38,680
Speaker 2: agent or two who does a lot of work in

731
00:29:38,680 --> 00:29:41,440
Speaker 2: that neighborhood, or ask another real estate investor that you know,

732
00:29:41,880 --> 00:29:44,800
Speaker 2: and then you know, ask for references from those property

733
00:29:44,800 --> 00:29:46,960
Speaker 2: managers so you can call some of their current clients.

734
00:29:47,200 --> 00:29:48,720
Speaker 2: That's going to give you a lot of insight about

735
00:29:48,720 --> 00:29:51,240
Speaker 2: whether or not they're right for you and for your property.

736
00:29:51,560 --> 00:29:55,520
Speaker 2: So it's even as a long distance landlord, it can

737
00:29:55,560 --> 00:29:58,200
Speaker 2: be a bit of a lift. But if your home

738
00:29:58,320 --> 00:30:01,320
Speaker 2: is ripe, if it's a great candidate for a rental property,

739
00:30:01,320 --> 00:30:04,000
Speaker 2: and you've got that locked in three percent rate or

740
00:30:04,000 --> 00:30:06,040
Speaker 2: something for thirty years, and this is a way for

741
00:30:06,120 --> 00:30:08,440
Speaker 2: you to kind of get into the rental property game

742
00:30:08,560 --> 00:30:10,920
Speaker 2: with and the numbers make sense, and if you're able

743
00:30:10,960 --> 00:30:13,680
Speaker 2: to find the right property manager, this could be Joshua,

744
00:30:13,680 --> 00:30:15,320
Speaker 2: I think a great a great path for you to

745
00:30:15,320 --> 00:30:16,840
Speaker 2: go down, but again you got to kind of go

746
00:30:16,920 --> 00:30:19,200
Speaker 2: through that funnel and ensure that it is before you

747
00:30:19,240 --> 00:30:19,880
Speaker 2: go all the way in.

748
00:30:19,960 --> 00:30:21,760
Speaker 3: Yeah, if it was me, I would say, Joshua I,

749
00:30:21,880 --> 00:30:23,960
Speaker 3: even if it was kind of a basically a wash,

750
00:30:24,080 --> 00:30:26,560
Speaker 3: I think I would hire a manager and hang on

751
00:30:26,600 --> 00:30:29,160
Speaker 3: to that property. Well, and I guess the other thing too,

752
00:30:29,200 --> 00:30:31,040
Speaker 3: Like you mentioned that you only purchases home a couple

753
00:30:31,080 --> 00:30:33,600
Speaker 3: of years ago, assuming you are you would have lived

754
00:30:33,600 --> 00:30:34,000
Speaker 3: in it for.

755
00:30:33,920 --> 00:30:34,760
Speaker 1: At least two years.

756
00:30:35,000 --> 00:30:36,640
Speaker 3: That's the part that has the big impact on your

757
00:30:36,640 --> 00:30:38,200
Speaker 3: capital gains. You want to make sure that you are

758
00:30:38,200 --> 00:30:40,040
Speaker 3: in there for a full two years before it is

759
00:30:40,080 --> 00:30:42,880
Speaker 3: that you move. That way, you are able to sell

760
00:30:42,880 --> 00:30:45,680
Speaker 3: that house without having to pay any capital gains on it.

761
00:30:46,000 --> 00:30:48,120
Speaker 3: But keep that in mind because once you start renting it,

762
00:30:48,160 --> 00:30:51,160
Speaker 3: you want to make sure that before maybe you sign

763
00:30:51,440 --> 00:30:54,560
Speaker 3: that third year lease, reevaluate and come back to the

764
00:30:54,560 --> 00:30:56,640
Speaker 3: decision and say, Okay, maybe this was working for the

765
00:30:56,640 --> 00:30:58,959
Speaker 3: past two years, will it continue to work for us

766
00:30:59,000 --> 00:31:01,520
Speaker 3: moving forward? Because there's kind of a make or break

767
00:31:01,560 --> 00:31:02,720
Speaker 3: point within that.

768
00:31:02,680 --> 00:31:05,480
Speaker 2: Third year, the ticking tax bomb that's coming, Yeah, if

769
00:31:05,480 --> 00:31:09,040
Speaker 2: you don't opt to pivot in enough time exactly.

770
00:31:08,640 --> 00:31:10,200
Speaker 3: So just keep that in mind that you always have

771
00:31:10,280 --> 00:31:13,000
Speaker 3: the ability to then at that point choose to go

772
00:31:13,000 --> 00:31:15,240
Speaker 3: ahead and list it put it on the market, and

773
00:31:15,360 --> 00:31:18,280
Speaker 3: especially I think that's wise to do if you've got

774
00:31:18,320 --> 00:31:22,280
Speaker 3: again other plans for that money. And again we just

775
00:31:22,320 --> 00:31:24,640
Speaker 3: don't know some of the other goals that you might

776
00:31:24,680 --> 00:31:26,840
Speaker 3: have as with your money, as far as like retirement

777
00:31:26,880 --> 00:31:29,120
Speaker 3: investing or whether you didn't even mention too I guess.

778
00:31:29,000 --> 00:31:29,960
Speaker 1: Whether or not you have any debt.

779
00:31:30,440 --> 00:31:32,440
Speaker 3: If you have a large amount of debt, and if

780
00:31:32,480 --> 00:31:35,840
Speaker 3: you have not contributed to your retirement accounts, I might

781
00:31:35,920 --> 00:31:38,640
Speaker 3: be leaning more towards payoff the sure thing when it

782
00:31:38,640 --> 00:31:41,440
Speaker 3: comes to the debt that you owe and then kind

783
00:31:41,440 --> 00:31:42,920
Speaker 3: of hit the easy button when it comes to your

784
00:31:42,920 --> 00:31:46,080
Speaker 3: different retirement accounts, because real estate investing really is kind

785
00:31:46,120 --> 00:31:47,760
Speaker 3: of more of an advanced money move. And so if

786
00:31:47,800 --> 00:31:50,200
Speaker 3: you have lingering credit card debt or a helock that

787
00:31:50,200 --> 00:31:52,320
Speaker 3: you have paid on whatever, if it's stuff like that, yes,

788
00:31:52,400 --> 00:31:56,000
Speaker 3: then then it's probably it doesn't make much sense until

789
00:31:56,000 --> 00:31:57,760
Speaker 3: you've kind of covered some of your bases, some of

790
00:31:57,760 --> 00:32:00,440
Speaker 3: the low hanging fruit in personal financing where you get

791
00:32:00,480 --> 00:32:03,040
Speaker 3: into like real estate investor territory. Yeah, there's that order

792
00:32:03,040 --> 00:32:04,200
Speaker 3: of operations that you want to follow.

793
00:32:04,240 --> 00:32:07,560
Speaker 2: But speaking of investing matter, next listener a question is

794
00:32:07,760 --> 00:32:10,960
Speaker 2: specifically about investing as a solopreneur.

795
00:32:11,120 --> 00:32:14,720
Speaker 6: Hey, y'all, skylay here from Tacoma, Washington. Started listening to

796
00:32:14,760 --> 00:32:17,520
Speaker 6: the pod several months ago. Really appreciate all the help

797
00:32:17,560 --> 00:32:22,280
Speaker 6: and advice. Since the pandemic, I've hopped jobs a few times,

798
00:32:22,640 --> 00:32:25,560
Speaker 6: mostly as a contract worker. I love the work I'm

799
00:32:25,560 --> 00:32:27,960
Speaker 6: doing now, but I haven't had access to a four

800
00:32:28,000 --> 00:32:29,640
Speaker 6: to oh one K or a four h three B

801
00:32:29,800 --> 00:32:33,960
Speaker 6: now for several years. To compensate, I started maxing out

802
00:32:34,040 --> 00:32:37,320
Speaker 6: an old roth Ira and opened a betterment account so

803
00:32:37,360 --> 00:32:40,280
Speaker 6: that between the two I am putting aside fifteen percent

804
00:32:40,680 --> 00:32:44,320
Speaker 6: of my gross income. However, i also have a business

805
00:32:44,320 --> 00:32:46,800
Speaker 6: as a therapist on the side, and I'm wondering if

806
00:32:46,840 --> 00:32:49,440
Speaker 6: I qualify for a solo four oh one K, and

807
00:32:49,520 --> 00:32:52,560
Speaker 6: if there would be any tax benefit or any other benefit.

808
00:32:52,600 --> 00:32:55,120
Speaker 6: I'm not thinking of to doing that instead of the

809
00:32:55,200 --> 00:32:57,920
Speaker 6: arrangement that I've come up with to put aside that

810
00:32:57,960 --> 00:33:01,280
Speaker 6: fifteen percent of my income or hope fully eventually more.

811
00:33:01,600 --> 00:33:04,560
Speaker 1: Thanks so much, Skyler, Thank you so much for your question.

812
00:33:04,680 --> 00:33:08,400
Speaker 3: By the way, Austin he actually had a very similar questions.

813
00:33:08,400 --> 00:33:11,600
Speaker 3: We're kind of two birds one stone, are right, But

814
00:33:12,200 --> 00:33:15,720
Speaker 3: no workplace retirement accounts that is a bummer. Then again,

815
00:33:15,840 --> 00:33:19,200
Speaker 3: that's what I've basically been dealing with my entire working life.

816
00:33:19,440 --> 00:33:22,040
Speaker 3: And like you said, the tax benefits that you can

817
00:33:22,120 --> 00:33:25,560
Speaker 3: qualify for by owning your own business can be superior

818
00:33:25,680 --> 00:33:28,520
Speaker 3: to being just a straight W two employee, not necessarily

819
00:33:28,520 --> 00:33:31,040
Speaker 3: from a retirement account standpoint.

820
00:33:30,720 --> 00:33:32,720
Speaker 2: Although kind of which we'll get to. Yeah, yeah, there's

821
00:33:32,720 --> 00:33:34,680
Speaker 2: a certain amount there, maybe not the MOUCH match, but

822
00:33:34,840 --> 00:33:36,480
Speaker 2: there are other perks sure, But.

823
00:33:36,400 --> 00:33:39,080
Speaker 3: I'm just talking about all the different expenses that qualify

824
00:33:39,240 --> 00:33:42,520
Speaker 3: as business deductions. We talk about that in episode four

825
00:33:42,640 --> 00:33:44,320
Speaker 3: eighty seven with Shannon.

826
00:33:44,440 --> 00:33:45,400
Speaker 1: She's a CPA.

827
00:33:45,520 --> 00:33:47,840
Speaker 3: She knows all the ins and outs of making sure

828
00:33:47,840 --> 00:33:50,600
Speaker 3: that you're able to take full advantage of all of

829
00:33:50,640 --> 00:33:53,800
Speaker 3: the legal routes that you can take that the IRS allows. Yeah,

830
00:33:53,840 --> 00:33:56,280
Speaker 3: and so with that mind, it might be worth that

831
00:33:56,360 --> 00:33:59,600
Speaker 3: trade off of not having a simple four one K

832
00:33:59,720 --> 00:34:02,440
Speaker 3: with a basic like three percent match, right, especially if

833
00:34:02,520 --> 00:34:06,240
Speaker 3: you are happy having more autonomy, more freedom to do

834
00:34:06,320 --> 00:34:09,200
Speaker 3: your own thing. That's something that anytime I've thought about

835
00:34:09,239 --> 00:34:12,319
Speaker 3: applying for a job with more of a traditional job,

836
00:34:12,360 --> 00:34:15,360
Speaker 3: basically with an employer, I just think about what is

837
00:34:15,520 --> 00:34:18,120
Speaker 3: going to require of me and the sacrifices that I'm

838
00:34:18,120 --> 00:34:20,160
Speaker 3: going to have to make from a lifestyle standpoint, from

839
00:34:20,760 --> 00:34:23,600
Speaker 3: being able to dictate what my days look like essentially,

840
00:34:23,640 --> 00:34:25,560
Speaker 3: and you quickly become unemployable.

841
00:34:25,600 --> 00:34:27,360
Speaker 1: Yeah, all the different employers.

842
00:34:27,400 --> 00:34:28,960
Speaker 2: If you work for yourself long enough, you really do,

843
00:34:29,040 --> 00:34:32,359
Speaker 2: you're like I would not and I love I loved

844
00:34:32,360 --> 00:34:34,960
Speaker 2: working a traditional job. I loved working on a team.

845
00:34:35,080 --> 00:34:38,160
Speaker 2: And there are things that I misadvantages. Yeah, but they're

846
00:34:38,239 --> 00:34:41,759
Speaker 2: not worth it. No, it's not. And the not just

847
00:34:41,760 --> 00:34:44,000
Speaker 2: the creative control right that you get to have when

848
00:34:44,160 --> 00:34:46,359
Speaker 2: you're kind of embarking on your own endeavor. But then

849
00:34:46,480 --> 00:34:48,880
Speaker 2: the even if you work more hours, which some a

850
00:34:48,920 --> 00:34:50,759
Speaker 2: lot of people, a lot of solopreneurs end up doing,

851
00:34:51,040 --> 00:34:53,359
Speaker 2: at least you're working for your own thing. It's your

852
00:34:53,360 --> 00:34:56,200
Speaker 2: own baby. There's something really special, really wonderful about that

853
00:34:56,239 --> 00:34:59,680
Speaker 2: for most folks. And let's specifically talk about the retirement account.

854
00:35:00,000 --> 00:35:02,239
Speaker 2: One of the best retirement accounts out there that's specifically

855
00:35:02,239 --> 00:35:05,279
Speaker 2: available to people who start their own business. And you

856
00:35:05,600 --> 00:35:08,439
Speaker 2: mentioned the possibility of a SOLO four one K. This

857
00:35:08,520 --> 00:35:11,640
Speaker 2: is a killer retirement account that we don't talk about enough,

858
00:35:11,880 --> 00:35:13,880
Speaker 2: and it's actually the one we use here at how

859
00:35:13,920 --> 00:35:14,320
Speaker 2: to Money.

860
00:35:14,480 --> 00:35:15,919
Speaker 1: And this account is.

861
00:35:15,960 --> 00:35:20,200
Speaker 2: For solopreneurs who don't have any employees, Like Matt, you

862
00:35:20,200 --> 00:35:22,279
Speaker 2: and I. We have a couple contractors who work for

863
00:35:22,360 --> 00:35:26,239
Speaker 2: us on an extremely part time basis, but no traditional employees,

864
00:35:26,440 --> 00:35:28,920
Speaker 2: so we're able to qualify to contribute to a SOLO

865
00:35:28,960 --> 00:35:31,719
Speaker 2: four one K. And so the cool thing about I

866
00:35:31,719 --> 00:35:35,040
Speaker 2: think the solo is the high contribution abilities and the

867
00:35:35,040 --> 00:35:37,160
Speaker 2: fact that you can sock money in not only as

868
00:35:37,160 --> 00:35:40,000
Speaker 2: an individual but also as the business And so as

869
00:35:40,200 --> 00:35:43,520
Speaker 2: just a traditional employee, you are capped at what an

870
00:35:43,520 --> 00:35:46,239
Speaker 2: individual can contribute to a retirement account. But in this case,

871
00:35:46,280 --> 00:35:48,080
Speaker 2: in the solo four one K case, you get to

872
00:35:48,120 --> 00:35:49,960
Speaker 2: wear two hats, right, and this allows you to funnel

873
00:35:50,160 --> 00:35:52,719
Speaker 2: more dollars into that sweet tax advantage account than you'd

874
00:35:52,719 --> 00:35:54,880
Speaker 2: be able to otherwise. You get to wear the business

875
00:35:54,920 --> 00:35:58,520
Speaker 2: owner hat, you get to wear the individual tax filing hat,

876
00:35:58,800 --> 00:36:02,080
Speaker 2: and so you can funnel potentially a ridiculous amount of

877
00:36:02,080 --> 00:36:06,560
Speaker 2: money into retirement accounts because you are both And that's.

878
00:36:06,440 --> 00:36:09,080
Speaker 3: Right, and I think there's a part like it's certainly

879
00:36:09,080 --> 00:36:10,960
Speaker 3: the higher limits, but it's the factual that you and

880
00:36:11,040 --> 00:36:15,640
Speaker 3: I we are committed to maxing that out essentially, right.

881
00:36:15,760 --> 00:36:18,200
Speaker 3: It's not that, oh, maybe we're thinking about ad it

882
00:36:18,239 --> 00:36:20,799
Speaker 3: like it's it's basically our default assumption is that we

883
00:36:20,840 --> 00:36:22,920
Speaker 3: are going to max out these retirement accounts as much

884
00:36:22,920 --> 00:36:25,880
Speaker 3: as possible. And so what we are experiencing isn't necessarily

885
00:36:26,080 --> 00:36:28,520
Speaker 3: what somebody out there would experience because if they haven't

886
00:36:28,520 --> 00:36:31,840
Speaker 3: basically predecided or preordained. And this is I mean, I

887
00:36:31,840 --> 00:36:33,880
Speaker 3: don't even know if we actually had that conversation, but

888
00:36:33,880 --> 00:36:36,400
Speaker 3: we're just like, well, of course we're gonna contribute as

889
00:36:36,440 --> 00:36:38,480
Speaker 3: much as was humanly possible the max.

890
00:36:38,280 --> 00:36:40,600
Speaker 2: Amount of that business is allowed to contribute. We do,

891
00:36:40,920 --> 00:36:42,680
Speaker 2: and we I mean, we both do that on the

892
00:36:42,680 --> 00:36:43,520
Speaker 2: personal level too, on the.

893
00:36:43,480 --> 00:36:45,480
Speaker 3: Personal side as well, so certainly from the employer's side,

894
00:36:45,480 --> 00:36:48,160
Speaker 3: but then also on the personal employee level. But what

895
00:36:48,160 --> 00:36:51,080
Speaker 3: that means is that we are certainly experiencing the most

896
00:36:51,120 --> 00:36:53,520
Speaker 3: benefit possible from our our souls.

897
00:36:53,560 --> 00:36:54,960
Speaker 2: And let's talk about that. So you want to talk

898
00:36:54,960 --> 00:36:57,880
Speaker 2: about how businesses, the business is able to contribute and

899
00:36:58,000 --> 00:37:00,040
Speaker 2: kind of the how the formula we.

900
00:37:00,239 --> 00:37:02,880
Speaker 3: Yeah, so as an individual or as an employee, you

901
00:37:02,880 --> 00:37:05,919
Speaker 3: can contribute up to twenty two five hundred dollars this year.

902
00:37:06,040 --> 00:37:08,279
Speaker 3: Next year that's going to be twenty three thousand dollars.

903
00:37:08,320 --> 00:37:09,960
Speaker 3: It got bumped up. It's it's the same as with

904
00:37:10,000 --> 00:37:12,399
Speaker 3: a four to one K through an employer, but then

905
00:37:12,440 --> 00:37:14,520
Speaker 3: on top of that, you can stick up to twenty

906
00:37:14,520 --> 00:37:18,360
Speaker 3: five percent of your compensation of your wages into that

907
00:37:18,560 --> 00:37:21,239
Speaker 3: solo four to one K as well. This is sort of

908
00:37:21,280 --> 00:37:24,400
Speaker 3: like the employer match, but since you are technically the

909
00:37:24,440 --> 00:37:27,600
Speaker 3: employer is still making that contribution yourself, it's coming. It's

910
00:37:27,600 --> 00:37:29,239
Speaker 3: going to feel like it's coming out of your pocket. Yeah,

911
00:37:29,280 --> 00:37:32,240
Speaker 3: it's not like quote unquote free money. But the total

912
00:37:32,239 --> 00:37:34,680
Speaker 3: combined amount that you can load up into that account,

913
00:37:34,719 --> 00:37:37,680
Speaker 3: it just can't exceed sixty six thousand dollars for this year.

914
00:37:37,719 --> 00:37:39,680
Speaker 2: So when you think about that, that's insane, right, that's

915
00:37:39,680 --> 00:37:42,040
Speaker 2: so much money could potentially the same amount of money

916
00:37:42,040 --> 00:37:46,319
Speaker 2: funnel into a retirement account. And granted, most people solopreneurs,

917
00:37:46,520 --> 00:37:48,719
Speaker 2: they're not balling to that extent that they're not able

918
00:37:48,760 --> 00:37:51,960
Speaker 2: to maximize that much, which is understandable, but to know

919
00:37:52,040 --> 00:37:54,560
Speaker 2: that you can if you're successful enough, like that's that's

920
00:37:54,560 --> 00:37:54,960
Speaker 2: pretty cool.

921
00:37:55,040 --> 00:37:57,680
Speaker 3: Yeah, you've got that higher contributional limit compared to what

922
00:37:57,880 --> 00:38:00,960
Speaker 3: a traditional W two worker what they have available to them.

923
00:38:01,280 --> 00:38:04,160
Speaker 3: That's really the biggest benefit of the solo. There's no

924
00:38:04,200 --> 00:38:07,080
Speaker 3: additional tax benefits except for the fact too that you

925
00:38:07,080 --> 00:38:08,640
Speaker 3: can choose I guess whether or not you want it

926
00:38:08,680 --> 00:38:11,680
Speaker 3: to be within a wrath solo or a traditional solo.

927
00:38:11,760 --> 00:38:13,800
Speaker 3: So you get to kind of choose your adventure as

928
00:38:13,800 --> 00:38:16,360
Speaker 3: to how that money is going to be taxed. And

929
00:38:16,600 --> 00:38:20,040
Speaker 3: I don't want to underestimate the power of that because

930
00:38:20,040 --> 00:38:22,080
Speaker 3: a lot of folks don't have control over that. It's like, oh,

931
00:38:22,239 --> 00:38:24,239
Speaker 3: I wish I had a raw war O one K,

932
00:38:24,360 --> 00:38:27,239
Speaker 3: but my employer doesn't offer it. As an entrepreneur, if

933
00:38:27,280 --> 00:38:29,520
Speaker 3: you have a solo four one K, you have the

934
00:38:29,520 --> 00:38:31,320
Speaker 3: option to decide how that money is taxed.

935
00:38:31,400 --> 00:38:32,040
Speaker 1: Yeah, yeah, Matt.

936
00:38:32,040 --> 00:38:34,479
Speaker 2: While we're talking about tax benefits too, it's we should

937
00:38:34,480 --> 00:38:37,480
Speaker 2: probably mention one other account. So the solo for one k. Yeah, Granted,

938
00:38:37,560 --> 00:38:39,759
Speaker 2: that's there's a massive amount of money you can sock

939
00:38:39,800 --> 00:38:42,279
Speaker 2: away in there, but there might even be a more

940
00:38:42,320 --> 00:38:46,680
Speaker 2: important retirement account available to solopreneurs, which is the HSA.

941
00:38:46,840 --> 00:38:49,719
Speaker 2: Oh yeah, and health savings account. That's our favorites, and

942
00:38:49,760 --> 00:38:51,520
Speaker 2: we talk about that pretty regularly on the show. We

943
00:38:51,560 --> 00:38:53,160
Speaker 2: can link to an article that we have on the

944
00:38:53,160 --> 00:38:57,080
Speaker 2: site about HSA's and how great they are. But if

945
00:38:57,120 --> 00:39:00,080
Speaker 2: you have a qualifying high deductible health care plan and

946
00:39:00,120 --> 00:39:02,360
Speaker 2: you can open up what we consider like the absolute

947
00:39:02,400 --> 00:39:05,000
Speaker 2: best retirement account from a tax standpoint, because you're able

948
00:39:05,000 --> 00:39:07,560
Speaker 2: to get this triple tax advantage Skyler, and and potentially

949
00:39:07,600 --> 00:39:11,280
Speaker 2: even a quadruple tax advantage by avoiding FICA and payroll

950
00:39:11,320 --> 00:39:14,120
Speaker 2: tax with some of those contributions that you're able to make.

951
00:39:14,400 --> 00:39:16,800
Speaker 2: And so the money that you stick into the HSA,

952
00:39:16,920 --> 00:39:19,320
Speaker 2: it avoids tax. When you stick it in, it grows

953
00:39:19,360 --> 00:39:21,800
Speaker 2: tax free. And then you also are able to avoid

954
00:39:21,960 --> 00:39:24,840
Speaker 2: tax when you take the money out of that HSA

955
00:39:24,880 --> 00:39:27,520
Speaker 2: if that money is spent on qualifying healthcare expenses. So

956
00:39:27,760 --> 00:39:30,239
Speaker 2: be sure to look into the HSA as well. As

957
00:39:30,239 --> 00:39:32,520
Speaker 2: a single individual, you're talking about just over four thousand

958
00:39:32,560 --> 00:39:34,759
Speaker 2: bucks you can sock away in a given year. If

959
00:39:34,840 --> 00:39:37,759
Speaker 2: you're married filing jointly, you can sock away potentially up

960
00:39:37,800 --> 00:39:40,080
Speaker 2: to eighty three hundred or eighty three fifty something like

961
00:39:40,120 --> 00:39:43,719
Speaker 2: that map, And so it's an important account for solopreneurs

962
00:39:43,719 --> 00:39:44,480
Speaker 2: to think about as well.

963
00:39:44,480 --> 00:39:44,839
Speaker 1: That's right.

964
00:39:44,880 --> 00:39:46,839
Speaker 3: I think the one caveat there is that you might

965
00:39:46,880 --> 00:39:49,680
Speaker 3: have to be registered as an actual s corporation, but

966
00:39:49,800 --> 00:39:52,600
Speaker 3: those it needs to be paid via the corporation or

967
00:39:52,600 --> 00:39:56,360
Speaker 3: at least reimbursed by the company in order to avoid

968
00:39:56,360 --> 00:39:59,200
Speaker 3: paying that fight at tax there. But you also mentioned

969
00:39:59,239 --> 00:40:01,680
Speaker 3: that taxable b quads account that you've got with Betterment.

970
00:40:01,960 --> 00:40:05,040
Speaker 3: That is great, but they don't support solo four one

971
00:40:05,160 --> 00:40:08,640
Speaker 3: K accounts. So where should you open one? Fidelity that's

972
00:40:08,640 --> 00:40:12,800
Speaker 3: actually where we have ours, Vanguard Schwab. They are also great,

973
00:40:13,280 --> 00:40:15,759
Speaker 3: and we're actually we're planning to have the dude who

974
00:40:15,840 --> 00:40:18,319
Speaker 3: wrote the book about the solo for one K on

975
00:40:18,600 --> 00:40:21,680
Speaker 3: next week. Sean mulaney say, if you want more details

976
00:40:21,680 --> 00:40:25,440
Speaker 3: about how excellent this account can be for solopreneurs, be

977
00:40:25,480 --> 00:40:27,880
Speaker 3: sure to check that episode out when it drops.

978
00:40:27,920 --> 00:40:30,240
Speaker 2: Yeah, he's gonna talk about your in tax planning in general,

979
00:40:30,320 --> 00:40:32,719
Speaker 2: but specifically he's gonna have a lot of advice on

980
00:40:32,840 --> 00:40:34,879
Speaker 2: the solo for on K, why it's so great, how

981
00:40:34,880 --> 00:40:37,040
Speaker 2: to maximize its benefits. But we've got a couple more

982
00:40:37,080 --> 00:40:39,439
Speaker 2: questions to get to on this episode, Matt, including yeah,

983
00:40:39,440 --> 00:40:41,839
Speaker 2: is it worth switching banks for just a easy extra

984
00:40:41,880 --> 00:40:44,359
Speaker 2: one percent? We'll get to that question and more right

985
00:40:44,400 --> 00:40:54,120
Speaker 2: after this, everybuddy b our back.

986
00:40:54,160 --> 00:40:56,560
Speaker 3: It's now time for the Facebook question of the week.

987
00:40:56,600 --> 00:40:59,839
Speaker 3: This one is from Jessica and she posted in the

988
00:41:00,000 --> 00:41:02,200
Speaker 3: how to Money Facebook group, which you should join if

989
00:41:02,239 --> 00:41:04,600
Speaker 3: you are not a member yet. But she asked, how

990
00:41:04,640 --> 00:41:06,960
Speaker 3: much do you all save for a future new to

991
00:41:07,000 --> 00:41:10,120
Speaker 3: you car purchase. I know the guys really encourage people

992
00:41:10,160 --> 00:41:12,399
Speaker 3: to buy cars and cash, so I figure you are

993
00:41:12,440 --> 00:41:14,880
Speaker 3: supposed to basically always be saving a little bit for

994
00:41:14,960 --> 00:41:17,680
Speaker 3: that eventual car purchase. Right now, I have a five

995
00:41:17,760 --> 00:41:20,279
Speaker 3: hundred dollars a month car payment. Once that is paid off,

996
00:41:20,320 --> 00:41:22,600
Speaker 3: I want to have a plan for how much of

997
00:41:22,640 --> 00:41:25,560
Speaker 3: that to save for another car someday? And how often

998
00:41:25,560 --> 00:41:27,440
Speaker 3: do people typically have to replace their cars?

999
00:41:27,480 --> 00:41:30,239
Speaker 1: Matt, she said? She said, always always be saving, isn't it?

1000
00:41:30,239 --> 00:41:32,520
Speaker 1: What's that? What's that movie? Always be closing? Always be closing?

1001
00:41:32,600 --> 00:41:34,360
Speaker 1: A what is that one?

1002
00:41:34,560 --> 00:41:36,880
Speaker 3: I don't know, I just know the I know the line. Okay,

1003
00:41:38,320 --> 00:41:41,040
Speaker 3: if you're into sales, you should always be closing. But

1004
00:41:41,120 --> 00:41:43,520
Speaker 3: I mean, I just love that Jessica. She is thinking

1005
00:41:43,560 --> 00:41:46,200
Speaker 3: ahead and so much of personal finding like that is

1006
00:41:46,239 --> 00:41:48,160
Speaker 3: what it's about. It's just about having a plan. It's

1007
00:41:48,160 --> 00:41:50,480
Speaker 3: about thinking ahead and planning.

1008
00:41:50,160 --> 00:41:50,600
Speaker 1: For the future.

1009
00:41:50,640 --> 00:41:51,839
Speaker 2: Yeah, And I think a lot of people roll their

1010
00:41:51,840 --> 00:41:54,239
Speaker 2: eyes when they hear us say that you should buy

1011
00:41:54,239 --> 00:41:56,520
Speaker 2: your car in cash, but that is something that we

1012
00:41:56,640 --> 00:41:58,880
Speaker 2: think is one of the fun a little bit fundamental

1013
00:41:58,920 --> 00:42:01,719
Speaker 2: hornerstones a personal finance. Yes, and if you want to

1014
00:42:01,920 --> 00:42:04,919
Speaker 2: stop the leaks, well, this is a big, gushing leak

1015
00:42:05,040 --> 00:42:07,640
Speaker 2: in most people's budgets, in what's going out every single month,

1016
00:42:07,680 --> 00:42:09,799
Speaker 2: And this is one of the easiest ones to tame.

1017
00:42:10,080 --> 00:42:12,840
Speaker 2: But so many people they just assume that it's not possible,

1018
00:42:12,880 --> 00:42:15,600
Speaker 2: and so they don't really work hard at pushing themselves

1019
00:42:15,640 --> 00:42:17,920
Speaker 2: in that direction. And for me, I've always been willing

1020
00:42:17,960 --> 00:42:21,680
Speaker 2: to drive vastly inferior cars, not like three years gently

1021
00:42:21,800 --> 00:42:25,200
Speaker 2: used old kind of thing. I'm willing to drive things

1022
00:42:25,200 --> 00:42:27,919
Speaker 2: that are ten plus years old, fifteen years old. And

1023
00:42:28,000 --> 00:42:30,000
Speaker 2: I know you're willing to do the same. And that

1024
00:42:30,120 --> 00:42:32,799
Speaker 2: is what saves so much money, allowing you to put

1025
00:42:32,800 --> 00:42:35,359
Speaker 2: that to more effective uses. So stuff you actually care

1026
00:42:35,400 --> 00:42:37,919
Speaker 2: about more for most people, right. And I loved reading

1027
00:42:37,960 --> 00:42:39,840
Speaker 2: the replies on this one because and that's what's so

1028
00:42:39,880 --> 00:42:41,719
Speaker 2: great about the how to Money Facebook group is it's

1029
00:42:41,800 --> 00:42:44,279
Speaker 2: listeners helping each other. But it just kind of goes

1030
00:42:44,280 --> 00:42:46,040
Speaker 2: to show that there are different stokes for different folks.

1031
00:42:46,200 --> 00:42:48,880
Speaker 2: Like Teresa mentioned that she buys a new car roughly

1032
00:42:48,920 --> 00:42:51,880
Speaker 2: every ten years, which I think is a totally fine approach.

1033
00:42:51,960 --> 00:42:54,520
Speaker 2: As well, she pays her car payment in something like

1034
00:42:54,560 --> 00:42:56,960
Speaker 2: four years, and this she saves roughly that same amount

1035
00:42:56,960 --> 00:42:58,719
Speaker 2: for the next six years in order to have tons

1036
00:42:58,719 --> 00:43:00,000
Speaker 2: of cash to bring to the table for the next

1037
00:43:00,239 --> 00:43:02,600
Speaker 2: new car. And I think that is a strategy, a

1038
00:43:02,680 --> 00:43:05,560
Speaker 2: more than valid strategy. And some people might say, oh,

1039
00:43:05,600 --> 00:43:09,799
Speaker 2: matt and Joel would crush Teresa for buying a new car. No, no, no,

1040
00:43:09,840 --> 00:43:11,160
Speaker 2: not at all. If you're going to own that car

1041
00:43:11,200 --> 00:43:12,640
Speaker 2: for ten years and you're going to pay it off

1042
00:43:12,640 --> 00:43:14,640
Speaker 2: in less than four and you're going to save up

1043
00:43:14,680 --> 00:43:17,200
Speaker 2: to buy the next one in cash, you totally can

1044
00:43:17,360 --> 00:43:21,160
Speaker 2: afford to buy a new car if that's something you prioritize. Yeah, So, Matthew,

1045
00:43:21,280 --> 00:43:23,800
Speaker 2: he also posted in the group and he just crossed

1046
00:43:23,840 --> 00:43:25,520
Speaker 2: one hundred thousand miles on his Mazda.

1047
00:43:26,360 --> 00:43:27,840
Speaker 3: You know, once you hit that threshold, that's where a

1048
00:43:27,880 --> 00:43:29,759
Speaker 3: lot of folks throw in the towel often because the

1049
00:43:29,800 --> 00:43:31,600
Speaker 3: maintenance costs start adding up.

1050
00:43:31,719 --> 00:43:33,120
Speaker 1: Yeah, that's just when the car is getting broken in

1051
00:43:33,120 --> 00:43:33,520
Speaker 1: though right now.

1052
00:43:33,600 --> 00:43:35,960
Speaker 3: Yeah, so he's going to have to spend two thousand

1053
00:43:35,960 --> 00:43:37,640
Speaker 3: dollars on tires, on breaks, et cetera.

1054
00:43:37,880 --> 00:43:39,520
Speaker 1: He said that it feels like a.

1055
00:43:39,520 --> 00:43:42,520
Speaker 3: Loss, even though he knows it's a win, and he

1056
00:43:42,680 --> 00:43:45,480
Speaker 3: is one hundred percent spot on. It's it's the equivalent

1057
00:43:45,480 --> 00:43:48,200
Speaker 3: of three new car payments making all of those repairs

1058
00:43:48,200 --> 00:43:50,400
Speaker 3: in that maintenance, and then that Masa is gonna is

1059
00:43:50,560 --> 00:43:52,240
Speaker 3: easily going to last them for like another one hundred

1060
00:43:52,239 --> 00:43:54,880
Speaker 3: thousand miles with the proper maintenance. Then you'll save buckets

1061
00:43:54,880 --> 00:43:57,880
Speaker 3: of money in the process. And so it's a psychologically

1062
00:43:58,400 --> 00:44:00,880
Speaker 3: difficult thing to stomach, even though when you sit down

1063
00:44:00,920 --> 00:44:04,000
Speaker 3: and crunch the numbers, you know that this is true.

1064
00:44:04,120 --> 00:44:06,080
Speaker 3: And that's why it's so helpful to actually sit down

1065
00:44:06,120 --> 00:44:07,960
Speaker 3: and run the numbers like that, as opposed to just

1066
00:44:08,360 --> 00:44:11,040
Speaker 3: feeling it when you're there in the shop and they

1067
00:44:11,040 --> 00:44:13,600
Speaker 3: inevitably tell you it's going to be fifty percent more

1068
00:44:13,640 --> 00:44:14,840
Speaker 3: than you thought it was going to be when you

1069
00:44:14,960 --> 00:44:15,560
Speaker 3: dropped the thing off.

1070
00:44:15,640 --> 00:44:18,080
Speaker 2: Yeah, like you said, Matthew's correct on this one hundred

1071
00:44:18,080 --> 00:44:22,040
Speaker 2: percent because it feels one way, but rationally it's something else, right,

1072
00:44:22,160 --> 00:44:23,640
Speaker 2: And that's the truth when it comes to money, we

1073
00:44:23,680 --> 00:44:27,399
Speaker 2: have to use like it's not that our emotions are unwarranted,

1074
00:44:27,719 --> 00:44:29,839
Speaker 2: but it's also important to say, like, the emotions don't

1075
00:44:29,880 --> 00:44:31,840
Speaker 2: run the show. And the truth is, if I go

1076
00:44:31,880 --> 00:44:34,120
Speaker 2: out there, if I sell this car that's really has

1077
00:44:34,200 --> 00:44:36,400
Speaker 2: a ton of life left in it, I'm signing up

1078
00:44:36,440 --> 00:44:39,239
Speaker 2: for a lot more money over the long haul. I

1079
00:44:39,520 --> 00:44:41,759
Speaker 2: know it feels it's tough to face that bill in

1080
00:44:41,800 --> 00:44:43,919
Speaker 2: the moment, but it's still the right move to keep

1081
00:44:43,920 --> 00:44:46,320
Speaker 2: that car on the road, and not because at this

1082
00:44:46,400 --> 00:44:49,000
Speaker 2: point it's not that the car isn't going to depreciate more,

1083
00:44:49,280 --> 00:44:51,160
Speaker 2: but it's going to depreciate a heck of a lot more.

1084
00:44:51,160 --> 00:44:53,239
Speaker 2: Solely at this point for Matthew, he's taking less of

1085
00:44:53,239 --> 00:44:55,640
Speaker 2: a hit every single year. And so like, we don't

1086
00:44:55,680 --> 00:44:57,600
Speaker 2: want to squash your hopes and dreams of driving something

1087
00:44:57,680 --> 00:45:00,279
Speaker 2: nice if you've budgeted for that for them, So you

1088
00:45:00,320 --> 00:45:02,399
Speaker 2: want to do, Jessica, Yeah, if you want to drive

1089
00:45:02,440 --> 00:45:05,160
Speaker 2: something nice, that's okay. And as long as you're not

1090
00:45:05,200 --> 00:45:06,759
Speaker 2: taking out a loan with a really high interest rate

1091
00:45:06,840 --> 00:45:10,280
Speaker 2: and upgrading your car on the rag, it's gonna be fine.

1092
00:45:10,640 --> 00:45:12,480
Speaker 2: But just make that decision with your eyes wide open,

1093
00:45:12,560 --> 00:45:14,320
Speaker 2: right knowing the trade offs that you're going to be making.

1094
00:45:14,560 --> 00:45:17,560
Speaker 2: And we think that transportation is just it's such an

1095
00:45:17,640 --> 00:45:21,719
Speaker 2: easy line on your budget to score big on, but

1096
00:45:21,760 --> 00:45:23,640
Speaker 2: most folks refuse to touch it. I think eating out

1097
00:45:23,719 --> 00:45:25,680
Speaker 2: might be the number one math that people could easily

1098
00:45:25,840 --> 00:45:27,400
Speaker 2: claw a bunch of money back into their life on,

1099
00:45:27,440 --> 00:45:29,600
Speaker 2: and transportation might be number two, or maybe they're flip

1100
00:45:29,600 --> 00:45:31,440
Speaker 2: flopped in your life. It just depends on the individual.

1101
00:45:31,680 --> 00:45:34,440
Speaker 2: But the longer you can delay the upgrade but keep

1102
00:45:34,480 --> 00:45:36,440
Speaker 2: sacking away dollars for the day that you eventually have

1103
00:45:36,480 --> 00:45:38,319
Speaker 2: to make it happen, the more financially for you become.

1104
00:45:38,360 --> 00:45:40,279
Speaker 2: I think if you do have a car payment right now,

1105
00:45:40,320 --> 00:45:43,000
Speaker 2: the minute you ditch it, keep sticking that same payment

1106
00:45:43,080 --> 00:45:45,440
Speaker 2: into a savings account for that next car, for the

1107
00:45:45,480 --> 00:45:47,080
Speaker 2: maintenance on this car, and for the next car you

1108
00:45:47,120 --> 00:45:49,080
Speaker 2: need to buy. That is that's the right way to go.

1109
00:45:49,200 --> 00:45:50,799
Speaker 3: Yeah, all right, So this is something we've talked about

1110
00:45:50,800 --> 00:45:53,800
Speaker 3: on the show before. As a rule, of thumb. But Jessica,

1111
00:45:54,000 --> 00:45:56,200
Speaker 3: so one of her questions though, was how much should

1112
00:45:56,239 --> 00:45:57,200
Speaker 3: I basically be.

1113
00:45:57,160 --> 00:45:58,320
Speaker 1: Spending on a used car?

1114
00:45:58,760 --> 00:46:00,920
Speaker 3: And I'm curious to see if if this still stands

1115
00:46:00,960 --> 00:46:02,759
Speaker 3: up or I guess if you agree with it. But

1116
00:46:02,960 --> 00:46:05,399
Speaker 3: at some point we talked about how you take your

1117
00:46:05,440 --> 00:46:08,520
Speaker 3: annual income, you combine that with however much money you

1118
00:46:08,560 --> 00:46:11,360
Speaker 3: have invested or retirement or your your total investments. Basically

1119
00:46:11,440 --> 00:46:14,759
Speaker 3: everything you take that ten percent of that is what

1120
00:46:14,880 --> 00:46:18,000
Speaker 3: you should feel free to spend on a new car,

1121
00:46:18,000 --> 00:46:19,759
Speaker 3: at least a new to U car. And so what

1122
00:46:19,760 --> 00:46:22,240
Speaker 3: that means. Let's give a little example, a couple examples,

1123
00:46:22,280 --> 00:46:24,560
Speaker 3: I guess to add some color. So imagine someone makes

1124
00:46:24,560 --> 00:46:26,920
Speaker 3: two hundred thousand dollars, right, that's a pretty large salary.

1125
00:46:27,239 --> 00:46:30,000
Speaker 3: But let's also envision imagine that they only have, say

1126
00:46:30,040 --> 00:46:33,040
Speaker 3: fifty thousand dollars set aside for retirement, so they're total

1127
00:46:33,400 --> 00:46:35,480
Speaker 3: all in, you're looking at two hundred and fifty thousand,

1128
00:46:35,880 --> 00:46:39,000
Speaker 3: So ten percent of that twenty five thousand dollars. And

1129
00:46:39,080 --> 00:46:42,200
Speaker 3: someone who's like making two hundred thousand dollars, they're thinking, well, up,

1130
00:46:42,400 --> 00:46:43,919
Speaker 3: what are you talking about? I'm only going to drop

1131
00:46:43,920 --> 00:46:45,880
Speaker 3: twenty five grand on a new car. But the fact is,

1132
00:46:45,880 --> 00:46:46,600
Speaker 3: you don't have any money.

1133
00:46:46,760 --> 00:46:48,880
Speaker 1: Ribbean's calling my name. Boys, you don't have any.

1134
00:46:48,719 --> 00:46:50,719
Speaker 3: You don't have enough money set aside in retirement to

1135
00:46:50,880 --> 00:46:53,080
Speaker 3: be able to offset the cost of something that big,

1136
00:46:53,360 --> 00:46:55,600
Speaker 3: like a Rivian. But what this also means is that

1137
00:46:55,680 --> 00:46:58,680
Speaker 3: somebody with a lower income. Let's say somebody's making a

1138
00:46:58,719 --> 00:47:01,480
Speaker 3: solid one hundred k every single year. But let's say

1139
00:47:02,239 --> 00:47:04,120
Speaker 3: they're in their fifties or sixties or something, right, and

1140
00:47:04,160 --> 00:47:07,319
Speaker 3: they have diligently socked money away. Let's say they've got

1141
00:47:07,320 --> 00:47:10,719
Speaker 3: five hundred thousand dollars in their retirement accounts. So you

1142
00:47:10,719 --> 00:47:12,759
Speaker 3: combine those two and you're looking at a total of

1143
00:47:12,800 --> 00:47:15,800
Speaker 3: six hundred thousand dollars. I think that person, that individual

1144
00:47:15,800 --> 00:47:18,879
Speaker 3: should feel the freedom to spend sixty thousand dollars, which

1145
00:47:18,920 --> 00:47:21,359
Speaker 3: is closer to the cost of a Rivian if they

1146
00:47:21,400 --> 00:47:22,440
Speaker 3: wanted to, granted.

1147
00:47:22,520 --> 00:47:24,240
Speaker 1: So it's like they would be better off if they didn't.

1148
00:47:24,320 --> 00:47:26,600
Speaker 3: And we would encourage you to not spend no money

1149
00:47:26,640 --> 00:47:28,719
Speaker 3: if that's not something that truly moves the needle for you.

1150
00:47:29,000 --> 00:47:31,200
Speaker 3: But if you are into cars, if you're a car person,

1151
00:47:31,800 --> 00:47:33,880
Speaker 3: I think that's a good rule of thumb. Personally to

1152
00:47:34,040 --> 00:47:36,880
Speaker 3: guide you to Okay, does it make sense for me

1153
00:47:37,280 --> 00:47:39,560
Speaker 3: to buy this newer vehicle because it takes a new

1154
00:47:39,560 --> 00:47:41,440
Speaker 3: account not only what you're currently making, which is what

1155
00:47:41,480 --> 00:47:44,560
Speaker 3: you feel psychologically. You think you're rich if you're making

1156
00:47:44,600 --> 00:47:46,479
Speaker 3: two hundred and fifty k a year, but it also

1157
00:47:46,520 --> 00:47:48,799
Speaker 3: depends on how much money you have set aside for

1158
00:47:48,840 --> 00:47:49,320
Speaker 3: the future.

1159
00:47:49,480 --> 00:47:51,719
Speaker 1: Okay, you dig it? No, I do dig it. I

1160
00:47:51,760 --> 00:47:52,160
Speaker 1: do dig it.

1161
00:47:52,160 --> 00:47:54,000
Speaker 2: I think that might be demoralizing for someone just out

1162
00:47:54,000 --> 00:47:56,080
Speaker 2: of college who just got their first job making forty

1163
00:47:56,080 --> 00:47:58,680
Speaker 2: five grand, But I still think I took that exact

1164
00:47:58,680 --> 00:48:02,080
Speaker 2: same recipe at least, if not stronger, when I was young, exactly,

1165
00:48:02,160 --> 00:48:03,799
Speaker 2: and I think that it makes a big impact on

1166
00:48:03,800 --> 00:48:06,360
Speaker 2: your ability to grow wealth over time. So it like

1167
00:48:06,680 --> 00:48:09,600
Speaker 2: my my first car eighteen hundred bucks. My car Might's

1168
00:48:09,640 --> 00:48:11,000
Speaker 2: on Altama that I drove for a lot of years

1169
00:48:11,040 --> 00:48:13,160
Speaker 2: was like twenty eight hundred bucks, and so the even

1170
00:48:13,280 --> 00:48:15,600
Speaker 2: and just to say how how much I drink my

1171
00:48:15,600 --> 00:48:18,399
Speaker 2: own medicine, I take my own medicine. Like the last

1172
00:48:18,400 --> 00:48:20,840
Speaker 2: car I brought. We got a second car and SUV

1173
00:48:21,239 --> 00:48:24,560
Speaker 2: cause guess what we needed, Emily now do an internship.

1174
00:48:24,600 --> 00:48:27,800
Speaker 2: We needed extra wheels finally not a one car family anymore, sadly,

1175
00:48:27,960 --> 00:48:31,640
Speaker 2: But we got an five SUV accurate SUV for four

1176
00:48:31,680 --> 00:48:32,640
Speaker 2: grand and it's got.

1177
00:48:32,560 --> 00:48:33,600
Speaker 1: An accurate NSX.

1178
00:48:34,280 --> 00:48:37,680
Speaker 2: Kidding, that's the one now it's an MDX, right, But

1179
00:48:37,760 --> 00:48:41,000
Speaker 2: we spent four thousand bucks on this thing and it's

1180
00:48:41,040 --> 00:48:42,160
Speaker 2: not like gorgeous.

1181
00:48:42,200 --> 00:48:45,240
Speaker 3: Could you have afforded something that was much more dispissive?

1182
00:48:45,320 --> 00:48:48,320
Speaker 3: Absolutely from the social standpoint, you would have been in

1183
00:48:48,360 --> 00:48:50,560
Speaker 3: the clear. Yes, But I could have even used our

1184
00:48:50,600 --> 00:48:52,840
Speaker 3: little algorithm and I could have signed off on spending

1185
00:48:52,880 --> 00:48:54,760
Speaker 3: a heck of a lot more, could do something nice

1186
00:48:55,000 --> 00:48:57,560
Speaker 3: if you wanted to. But the fact is you're like, no, No,

1187
00:48:57,680 --> 00:48:59,480
Speaker 3: this is point A to point B kind of transportation.

1188
00:48:59,600 --> 00:49:01,640
Speaker 2: Again, I know we're hardcore, and there's a lot of

1189
00:49:01,640 --> 00:49:03,680
Speaker 2: people listening, and they say, all right, I'm gonna take

1190
00:49:03,680 --> 00:49:05,360
Speaker 2: what Matt and Joel say on this one with at least.

1191
00:49:05,200 --> 00:49:05,960
Speaker 1: A grain of salt.

1192
00:49:06,080 --> 00:49:08,359
Speaker 2: You do you, but legally we're gonna tell you our

1193
00:49:08,360 --> 00:49:10,520
Speaker 2: thoughts on what to challenge you. You do with it,

1194
00:49:10,560 --> 00:49:14,080
Speaker 2: what you will absolutely, all right, let's get to our next.

1195
00:49:14,520 --> 00:49:18,040
Speaker 2: This is an anonymous poster actually in Facebook, and they said,

1196
00:49:18,080 --> 00:49:21,600
Speaker 2: do people think it's worth switching banks for one percent extra.

1197
00:49:21,760 --> 00:49:24,000
Speaker 2: I already have a high interest savings account, but I

1198
00:49:24,040 --> 00:49:26,920
Speaker 2: saw another bank offering a whole extra percent.

1199
00:49:27,200 --> 00:49:28,920
Speaker 3: Oh, Joel, what are your thoughts? Would you do it?

1200
00:49:29,040 --> 00:49:29,360
Speaker 1: Okay?

1201
00:49:29,400 --> 00:49:32,160
Speaker 2: So I thought the perfect answer, And again this is

1202
00:49:32,160 --> 00:49:34,600
Speaker 2: the community helping one another. The best answers were from

1203
00:49:34,640 --> 00:49:37,120
Speaker 2: Robbing Karen, and they basically said, you don't necessarily need

1204
00:49:37,120 --> 00:49:39,480
Speaker 2: to switch banks altogether, but you just open up an

1205
00:49:39,520 --> 00:49:41,279
Speaker 2: account with this other bank and you move most of

1206
00:49:41,320 --> 00:49:43,680
Speaker 2: your savings over because you can move that money back

1207
00:49:43,680 --> 00:49:46,000
Speaker 2: and forth. You don't necessarily need to cancel your account,

1208
00:49:46,000 --> 00:49:49,319
Speaker 2: move to another bank, switch every single thing over, and

1209
00:49:49,840 --> 00:49:52,480
Speaker 2: start afresh. Right. I just agree with that assessment, like,

1210
00:49:52,760 --> 00:49:54,759
Speaker 2: that's exactly what I do, because I've been banking with

1211
00:49:54,800 --> 00:49:57,120
Speaker 2: Capital One and Discover for a heck of a long time.

1212
00:49:57,360 --> 00:50:00,360
Speaker 2: But then the CIT rate jumps above five percent and

1213
00:50:00,400 --> 00:50:03,279
Speaker 2: I'm like super interested in getting that on the bulk

1214
00:50:03,320 --> 00:50:04,960
Speaker 2: of my savings. So I moved a bunch of my

1215
00:50:04,960 --> 00:50:07,160
Speaker 2: savings over to CIIT. But guess what, I still do

1216
00:50:07,239 --> 00:50:09,319
Speaker 2: the bulk the majority of my banking with Capital One

1217
00:50:09,360 --> 00:50:12,239
Speaker 2: and Discover. So if your bill pay and whatnot, that's yeah, yeah, yeah,

1218
00:50:12,280 --> 00:50:15,920
Speaker 2: So I like I mostly benefit from the higher rates,

1219
00:50:16,000 --> 00:50:17,600
Speaker 2: you know, by stashing some of that money with CIT.

1220
00:50:17,840 --> 00:50:19,640
Speaker 2: But I also didn't have to like change my whole

1221
00:50:19,640 --> 00:50:22,080
Speaker 2: life and change all my banking operations just to snag

1222
00:50:22,120 --> 00:50:23,680
Speaker 2: that higher rate. So I think that's the best way

1223
00:50:23,719 --> 00:50:24,160
Speaker 2: to go about it.

1224
00:50:24,160 --> 00:50:24,720
Speaker 1: I like it.

1225
00:50:24,560 --> 00:50:27,440
Speaker 2: It discovers like paying a pretty hefty rate too, so

1226
00:50:27,800 --> 00:50:29,920
Speaker 2: it is capital one, so it's not like they're slouches.

1227
00:50:30,239 --> 00:50:31,960
Speaker 2: But I just wanted to do extra a little bit.

1228
00:50:32,000 --> 00:50:32,440
Speaker 1: No, I like it.

1229
00:50:32,440 --> 00:50:35,279
Speaker 3: I think chasing yield on savings can take up too

1230
00:50:35,360 --> 00:50:37,680
Speaker 3: much of your time. I think it's nice to snag

1231
00:50:37,800 --> 00:50:40,000
Speaker 3: that extra one percent, but so much depends on how

1232
00:50:40,040 --> 00:50:42,399
Speaker 3: much money you have in savings, how much time this

1233
00:50:42,440 --> 00:50:45,200
Speaker 3: is going to eat out of your life. It comes

1234
00:50:45,239 --> 00:50:47,040
Speaker 3: down to what game it is that you want to

1235
00:50:47,040 --> 00:50:48,839
Speaker 3: play when it comes to your personal finances as well,

1236
00:50:48,840 --> 00:50:52,399
Speaker 3: because uh, switching banks it's literally something i've I think

1237
00:50:52,400 --> 00:50:54,319
Speaker 3: I've only ever done once, like maybe ten years ago.

1238
00:50:54,440 --> 00:50:56,680
Speaker 3: I was with I think this bank was called Westfield

1239
00:50:56,719 --> 00:50:58,560
Speaker 3: or something like that, and at the time they're offering

1240
00:50:58,600 --> 00:51:01,440
Speaker 3: like the highest highest rate out there, But over.

1241
00:51:01,280 --> 00:51:02,960
Speaker 1: Time, I'm like, man, they don't really have an app.

1242
00:51:03,680 --> 00:51:07,080
Speaker 3: Online interface sucks, and so I ended up just hopping

1243
00:51:07,120 --> 00:51:09,719
Speaker 3: over to Ally, who has always not been at the

1244
00:51:09,800 --> 00:51:12,040
Speaker 3: very top. They haven't been leading the pack, but they've

1245
00:51:12,040 --> 00:51:15,040
Speaker 3: always been really really competitive, still top tier, and their

1246
00:51:15,080 --> 00:51:17,319
Speaker 3: app is awesome and I've never had any issues with them.

1247
00:51:17,320 --> 00:51:20,000
Speaker 3: Their customer service is great. But for me, the game

1248
00:51:20,040 --> 00:51:21,760
Speaker 3: I like to play is when it comes to credit cards.

1249
00:51:21,920 --> 00:51:25,040
Speaker 3: I love doing that. I hate opening up new accounts,

1250
00:51:25,080 --> 00:51:27,080
Speaker 3: but for whatever reason, I like to take advantage of

1251
00:51:27,080 --> 00:51:30,319
Speaker 3: different welcome offers, the cash back, the Companion Pass. We

1252
00:51:30,560 --> 00:51:33,319
Speaker 3: talked about that recently. We've got a piece of newsletter. Yeah, yeah,

1253
00:51:33,520 --> 00:51:35,360
Speaker 3: We've got a piece up on the article up on

1254
00:51:35,400 --> 00:51:37,480
Speaker 3: the site on how it is that you can earn

1255
00:51:37,640 --> 00:51:41,560
Speaker 3: the Companion Pass with Southwest the most effectively without wasting

1256
00:51:41,760 --> 00:51:43,560
Speaker 3: a whole lot of time, And so something that comes

1257
00:51:43,600 --> 00:51:46,200
Speaker 3: down to personal preference as well, because for whatever reason,

1258
00:51:46,320 --> 00:51:47,680
Speaker 3: that's just how I'm wired.

1259
00:51:47,760 --> 00:51:49,200
Speaker 2: Yeah, I mean, you and I We've talked about the

1260
00:51:49,239 --> 00:51:52,920
Speaker 2: limits of intense frugality, right, and frugality can get you

1261
00:51:52,960 --> 00:51:54,960
Speaker 2: a lot of places. It can be a massive aid

1262
00:51:55,080 --> 00:51:58,080
Speaker 2: in your ability to save and invest and build wealth

1263
00:51:58,080 --> 00:51:59,640
Speaker 2: through your future, but it can also at some point

1264
00:51:59,680 --> 00:52:02,680
Speaker 2: be a hint and if you're so fixated on getting

1265
00:52:02,719 --> 00:52:05,240
Speaker 2: the little eken, the little extra amount from your savings,

1266
00:52:05,360 --> 00:52:09,279
Speaker 2: that you're less interested in maybe increasing your income or

1267
00:52:09,400 --> 00:52:11,239
Speaker 2: some of those bigger levers that you can pull on

1268
00:52:11,239 --> 00:52:14,520
Speaker 2: the personal finance spectrum that are going to help you

1269
00:52:14,640 --> 00:52:17,200
Speaker 2: on your journey. They're going to accelerate your ability to

1270
00:52:17,280 --> 00:52:20,200
Speaker 2: hit your goals. Then this could be short sighted, right,

1271
00:52:20,200 --> 00:52:22,600
Speaker 2: to be so intently focused on switching banks to eke

1272
00:52:22,640 --> 00:52:24,680
Speaker 2: out an extra one percent and let's say you've only

1273
00:52:24,719 --> 00:52:27,200
Speaker 2: got like four thousand bucks in savings or something like that.

1274
00:52:27,239 --> 00:52:30,000
Speaker 3: Or what's the point we're talking about such a small,

1275
00:52:30,040 --> 00:52:31,200
Speaker 3: in egligible amount of dollars.

1276
00:52:31,239 --> 00:52:31,439
Speaker 1: Point.

1277
00:52:31,520 --> 00:52:34,520
Speaker 2: Yeah, So it's also different depends on how much money

1278
00:52:34,560 --> 00:52:37,759
Speaker 2: you have in savings, how much of And again you

1279
00:52:37,840 --> 00:52:39,560
Speaker 2: might say I'm getting five percent on savings, maybe I

1280
00:52:39,560 --> 00:52:41,719
Speaker 2: should stop investing in the market, or I should just

1281
00:52:41,760 --> 00:52:46,359
Speaker 2: be less less focused, less interested in shoveling money into

1282
00:52:46,440 --> 00:52:48,480
Speaker 2: those tax advantaged accounts. So it can almost be this

1283
00:52:48,520 --> 00:52:50,520
Speaker 2: double edged sword where you're so focused on your savings,

1284
00:52:50,760 --> 00:52:52,799
Speaker 2: you're less focused on your investing, and so you have

1285
00:52:52,880 --> 00:52:54,920
Speaker 2: to kind of take all those things into account.

1286
00:52:55,160 --> 00:52:56,759
Speaker 3: Yeah, if you fit in the right perspective of the

1287
00:52:56,840 --> 00:52:58,640
Speaker 3: right context, because that's the other thing too. I like

1288
00:52:58,719 --> 00:53:00,480
Speaker 3: what you said because the dollar amount it does matter.

1289
00:53:00,480 --> 00:53:02,160
Speaker 3: And folks will hear us talk about one percent when

1290
00:53:02,160 --> 00:53:05,399
Speaker 3: it comes to our investments, and they'll say, dudes, I've

1291
00:53:05,400 --> 00:53:08,920
Speaker 3: heard y'all freak out about zero point seventy five expense ratio,

1292
00:53:09,520 --> 00:53:12,239
Speaker 3: and one percent in savings is a big difference. Is

1293
00:53:12,400 --> 00:53:13,800
Speaker 3: a lot different than one percent when it comes to

1294
00:53:13,840 --> 00:53:16,799
Speaker 3: your investments because typically with your savings, you're capped at

1295
00:53:16,800 --> 00:53:19,520
Speaker 3: a certain amount. Even if you have fifty thousand dollars

1296
00:53:19,560 --> 00:53:21,399
Speaker 3: one hundred thousand dollars in there, you are looking out

1297
00:53:21,400 --> 00:53:23,399
Speaker 3: of the limited amount of money. When you're talking about

1298
00:53:23,440 --> 00:53:26,440
Speaker 3: a one percent difference, However, you compare that to one

1299
00:53:26,480 --> 00:53:29,200
Speaker 3: percent within your investments. Sure, early on it doesn't make

1300
00:53:29,200 --> 00:53:31,680
Speaker 3: that big of a deal, but over time, the compounding

1301
00:53:31,719 --> 00:53:34,120
Speaker 3: effect of that one percent, as you are continuing to

1302
00:53:34,160 --> 00:53:37,040
Speaker 3: save beyond fifty or one hundred thousand dollars, has a

1303
00:53:37,239 --> 00:53:39,360
Speaker 3: massive impact on the amount of money that you have

1304
00:53:39,440 --> 00:53:41,560
Speaker 3: in your accounts by the time you actually do retire.

1305
00:53:41,600 --> 00:53:42,760
Speaker 1: And we've all got limited man.

1306
00:53:42,640 --> 00:53:45,560
Speaker 2: With like limited focus abilities, and so if you're doing

1307
00:53:46,160 --> 00:53:49,680
Speaker 2: good enough is often the best recipe for most people's simplicity,

1308
00:53:49,880 --> 00:53:51,759
Speaker 2: keeping it simple. If it's a bank you'd love that

1309
00:53:51,840 --> 00:53:53,880
Speaker 2: pays you four percent and you're like, should I go

1310
00:53:53,920 --> 00:53:55,920
Speaker 2: over here for five? Well, if it's simple and you

1311
00:53:55,960 --> 00:53:57,960
Speaker 2: want to toss some of your savings in, go for it.

1312
00:53:58,040 --> 00:53:59,440
Speaker 2: But if it's going to take up too much your time,

1313
00:53:59,440 --> 00:54:01,520
Speaker 2: too much your space, it might not be worth it.

1314
00:54:01,760 --> 00:54:03,560
Speaker 1: So I wouldn't do it for one percent. I do

1315
00:54:03,560 --> 00:54:04,439
Speaker 1: it for an extra two percent.

1316
00:54:04,520 --> 00:54:07,719
Speaker 2: Okay, there you go. Yeah, so that's that's mass thresh.

1317
00:54:07,800 --> 00:54:10,160
Speaker 2: That's about thresh least. Yeah. Yeah, all right, Well, thanks

1318
00:54:10,200 --> 00:54:11,880
Speaker 2: for your questions. As always, we love to hear from you,

1319
00:54:11,920 --> 00:54:14,480
Speaker 2: and if you've got a money question, send it our way.

1320
00:54:14,520 --> 00:54:16,000
Speaker 2: We'll take it hopefully on the next Ask How To

1321
00:54:16,000 --> 00:54:17,600
Speaker 2: Money episode. But Matt, let's get back to the beer

1322
00:54:17,840 --> 00:54:19,960
Speaker 2: we had on this one. This one was Green City

1323
00:54:20,160 --> 00:54:23,440
Speaker 2: by Other Half a double dry hopped hazy India pale Ale.

1324
00:54:23,480 --> 00:54:24,480
Speaker 2: What were your thoughts on this one?

1325
00:54:24,600 --> 00:54:26,520
Speaker 1: Yeah? Man, this one was really tasty.

1326
00:54:26,560 --> 00:54:29,680
Speaker 3: I will say, did not have as much hot presence

1327
00:54:29,880 --> 00:54:32,759
Speaker 3: as you would come to expect from some of the

1328
00:54:32,760 --> 00:54:34,719
Speaker 3: different Other Half beers. You know what I'm saying, Yeah, Like,

1329
00:54:34,800 --> 00:54:37,759
Speaker 3: it doesn't have that sharpness. Instead, I feel like it

1330
00:54:37,800 --> 00:54:40,960
Speaker 3: has more of a lemony like citrus like almost like

1331
00:54:40,960 --> 00:54:43,960
Speaker 3: a citrusy ness, like a brightness to it that you

1332
00:54:44,000 --> 00:54:46,960
Speaker 3: don't typically expect with other half beers.

1333
00:54:46,480 --> 00:54:48,200
Speaker 1: It's a double dry hopped.

1334
00:54:48,040 --> 00:54:52,160
Speaker 3: Which it's still very delicious, but yeah, not quiet as

1335
00:54:52,160 --> 00:54:53,080
Speaker 3: hot mini hops as.

1336
00:54:53,040 --> 00:54:54,520
Speaker 2: The last I was gonna say, a little more laid

1337
00:54:54,560 --> 00:54:57,480
Speaker 2: back than most other half beers. But that being said,

1338
00:54:57,920 --> 00:55:01,840
Speaker 2: this would be top notch or any other brewer in

1339
00:55:01,840 --> 00:55:04,160
Speaker 2: the like you're just you like when you have other

1340
00:55:04,200 --> 00:55:07,680
Speaker 2: half beers, you come to expect something so like concentrated

1341
00:55:07,719 --> 00:55:09,960
Speaker 2: and I was gonna say punching, Yes, exactly, concentrated and

1342
00:55:10,000 --> 00:55:13,040
Speaker 2: pungent that and and this one is just a notch

1343
00:55:13,200 --> 00:55:15,399
Speaker 2: below that. It's still delicious. But on the other hand,

1344
00:55:15,440 --> 00:55:17,640
Speaker 2: I think this is more drinkable. And this is something

1345
00:55:17,640 --> 00:55:20,040
Speaker 2: I would like if there was a four pack of

1346
00:55:20,400 --> 00:55:22,840
Speaker 2: this in my fridge every single week, Like I wouldn't be.

1347
00:55:22,840 --> 00:55:23,400
Speaker 1: Mad about it.

1348
00:55:23,719 --> 00:55:25,560
Speaker 3: And it almost drinks more like a like a hot,

1349
00:55:25,719 --> 00:55:28,480
Speaker 3: very hoppy pale yeah, as opposed to double ip a

1350
00:55:28,680 --> 00:55:31,279
Speaker 3: true yeah, this is this is which drinks more like

1351
00:55:31,320 --> 00:55:32,560
Speaker 3: a nectar, less like a syrup.

1352
00:55:32,719 --> 00:55:36,200
Speaker 2: Yeah. Going back to the beginning. Yeah, And I think

1353
00:55:36,320 --> 00:55:37,480
Speaker 2: sometimes that's what I want.

1354
00:55:37,600 --> 00:55:40,560
Speaker 1: I like I don't. I love like the.

1355
00:55:40,320 --> 00:55:43,560
Speaker 2: Heavyweight title contender I p as that they make, but

1356
00:55:43,600 --> 00:55:46,200
Speaker 2: then I also like something that's just a bit more reserved.

1357
00:55:46,280 --> 00:55:50,439
Speaker 1: Sometimes you want to is it a wilterweight exactly right? Yeah,

1358
00:55:50,560 --> 00:55:53,000
Speaker 1: don't you don't always want to Mike Tyson punch in

1359
00:55:53,040 --> 00:55:54,920
Speaker 1: the mouth. You know, you don't want a.

1360
00:55:54,520 --> 00:55:57,560
Speaker 3: Heavyweight champion of the world. But either way, still a

1361
00:55:57,680 --> 00:55:59,439
Speaker 3: very delicious beer. Glad you know, I got to enjoy

1362
00:55:59,440 --> 00:56:01,600
Speaker 3: one of these today, And a huge thanks yet again

1363
00:56:01,719 --> 00:56:04,520
Speaker 3: to Jason for donating this one to the podcast.

1364
00:56:04,640 --> 00:56:06,800
Speaker 1: But Buddy, that's going to be it for this episode.

1365
00:56:06,840 --> 00:56:09,080
Speaker 3: Listeners can find our show notes up on the website

1366
00:56:09,080 --> 00:56:11,319
Speaker 3: at howdomoney dot com. We'll make sure to link to

1367
00:56:11,360 --> 00:56:15,240
Speaker 3: any of the different resources, including previous episodes, but also

1368
00:56:15,440 --> 00:56:18,200
Speaker 3: the budgeting article that we've got up there. You can

1369
00:56:18,320 --> 00:56:20,040
Speaker 3: look for that amount of money.

1370
00:56:19,840 --> 00:56:22,239
Speaker 2: Dot com Southwest Companion Pass that you just mentioned too. Yeah,

1371
00:56:22,239 --> 00:56:23,920
Speaker 2: that's right, which is like, if you're wondering how to

1372
00:56:23,920 --> 00:56:26,120
Speaker 2: gain the system to get the most months on the

1373
00:56:26,120 --> 00:56:28,600
Speaker 2: Southwest Companion Pass, we kind of spilled it. We talked

1374
00:56:28,600 --> 00:56:30,239
Speaker 2: with Lynn Metler about that a while back, but then

1375
00:56:30,239 --> 00:56:33,840
Speaker 2: we kind of put it in for free in detail

1376
00:56:34,040 --> 00:56:36,160
Speaker 2: on our website too, so that people can hopefully learn

1377
00:56:36,200 --> 00:56:38,120
Speaker 2: from it, figure it out, and then man, that can

1378
00:56:38,160 --> 00:56:39,719
Speaker 2: be a massive flight benefit for sure.

1379
00:56:40,000 --> 00:56:40,839
Speaker 1: Oh yeah, all.

1380
00:56:40,760 --> 00:56:42,880
Speaker 2: Right, Bud, that's it until next time. Best friends out,

1381
00:56:43,000 --> 00:56:44,320
Speaker 2: Best Friends Out,