1 00:00:00,080 --> 00:00:01,440 Speaker 1: Welcome to How the Money. 2 00:00:01,480 --> 00:00:04,440 Speaker 2: I'm Joel and I am Matt and today we're talking 3 00:00:04,559 --> 00:00:07,040 Speaker 2: the wealth effect Christmas returns. 4 00:00:06,920 --> 00:00:28,639 Speaker 1: And b in p L I r L. Yeah. And 5 00:00:28,680 --> 00:00:31,040 Speaker 1: by the way, everyone saying a prayer for Joel. 6 00:00:30,840 --> 00:00:34,280 Speaker 2: Because dude, it sounds like you've got something nasty over there. 7 00:00:33,960 --> 00:00:36,479 Speaker 2: You're I think your voice is gonna gonna hold up 8 00:00:36,479 --> 00:00:36,720 Speaker 2: for us. 9 00:00:37,200 --> 00:00:40,240 Speaker 1: So no, this is our Friday flight. 10 00:00:40,360 --> 00:00:43,600 Speaker 2: And yeah, Ben pl I r L will explain what 11 00:00:43,720 --> 00:00:46,520 Speaker 2: all that means later on if you're. 12 00:00:46,000 --> 00:00:48,160 Speaker 1: Not privy to the fact. But Joel, I got a quick, 13 00:00:48,280 --> 00:00:49,360 Speaker 1: frugal or cheap for you. 14 00:00:49,880 --> 00:00:52,440 Speaker 2: Uh. So the other day I took a jar of 15 00:00:52,720 --> 00:00:55,840 Speaker 2: pennies to our local Kroger and uh because I was like, 16 00:00:55,840 --> 00:00:57,880 Speaker 2: you know what, We've had this jar sitting around four forever. 17 00:00:58,120 --> 00:01:00,840 Speaker 2: I'd actually sort of them out from like the quarters 18 00:01:00,880 --> 00:01:03,720 Speaker 2: and stuff that we pay our kids allowance with sometimes 19 00:01:03,960 --> 00:01:07,560 Speaker 2: for the different jobs. And so I finally took it 20 00:01:07,600 --> 00:01:09,120 Speaker 2: to the grocery store and I was getting ready to 21 00:01:09,400 --> 00:01:12,080 Speaker 2: dump it in the coin star and I thought, wait 22 00:01:12,120 --> 00:01:14,840 Speaker 2: a minute, I don't want to pay this company a 23 00:01:14,920 --> 00:01:18,120 Speaker 2: cut for the change that I have on hand, or 24 00:01:18,120 --> 00:01:20,240 Speaker 2: do they charge like eight percent? It's like ten or 25 00:01:20,280 --> 00:01:24,520 Speaker 2: eleven percent, and I thought, man, forget that. It's unless 26 00:01:24,600 --> 00:01:27,000 Speaker 2: you opt for a gift card instead. 27 00:01:27,160 --> 00:01:27,840 Speaker 1: Oh is it? 28 00:01:27,920 --> 00:01:30,160 Speaker 2: I didn't look that that hard at it, but regardless, 29 00:01:30,200 --> 00:01:32,399 Speaker 2: we needed some a few grocery items, so I thought, 30 00:01:32,480 --> 00:01:34,440 Speaker 2: you know what I'll do. I'll just I'll buy some milk, 31 00:01:34,560 --> 00:01:37,920 Speaker 2: some eggs, get some bananas, and I'll pay for it 32 00:01:38,120 --> 00:01:40,360 Speaker 2: using pennies at the register. I'm not going to put 33 00:01:40,360 --> 00:01:42,560 Speaker 2: the burden on the cashier. I was going to go 34 00:01:42,600 --> 00:01:45,440 Speaker 2: through the self checkout because they've got like a little cup. 35 00:01:45,720 --> 00:01:47,240 Speaker 2: I thought to kind of make it easy. So in 36 00:01:47,280 --> 00:01:51,720 Speaker 2: my mind, it's like a self administered like a manual coinstar, 37 00:01:52,040 --> 00:01:54,920 Speaker 2: where I get to reap off the benefit from it. 38 00:01:55,640 --> 00:02:00,560 Speaker 2: Here's the downside. It didn't really have what I envisioned. 39 00:02:00,560 --> 00:02:02,160 Speaker 2: I thought there was like a little bowl for you 40 00:02:02,240 --> 00:02:03,800 Speaker 2: just to kind of like drop all the change, and no, 41 00:02:04,320 --> 00:02:06,480 Speaker 2: I had to kind of like take stacks of pennies 42 00:02:06,480 --> 00:02:08,519 Speaker 2: and run them across this little slot for them to 43 00:02:08,560 --> 00:02:11,520 Speaker 2: fall down, and it kept getting jammed, and no joke, 44 00:02:11,680 --> 00:02:14,680 Speaker 2: it took me like at least ten extra minutes to 45 00:02:14,960 --> 00:02:18,639 Speaker 2: pay for my stupid my purchase with the pennies. And 46 00:02:18,880 --> 00:02:21,080 Speaker 2: when I actually did the math. I'm like, wait a minute, 47 00:02:21,200 --> 00:02:25,359 Speaker 2: I saved like a dollar plus just give myself. 48 00:02:25,120 --> 00:02:28,160 Speaker 1: A massive amount of headache. And so I'm curious, Joel, 49 00:02:28,160 --> 00:02:29,880 Speaker 1: what are your thoughts? Was this frugal or cheap? 50 00:02:29,919 --> 00:02:31,760 Speaker 2: Sounds cheap math? I think he answered your own question 51 00:02:31,960 --> 00:02:35,480 Speaker 2: majorly cheap. Move on, Like it wasn't even wasted time 52 00:02:35,520 --> 00:02:37,160 Speaker 2: and effort. It was like a minute And I'm like, 53 00:02:37,280 --> 00:02:38,240 Speaker 2: what am I doing? 54 00:02:38,280 --> 00:02:38,680 Speaker 1: This is? 55 00:02:38,919 --> 00:02:41,040 Speaker 2: This is so dumb. But at the same time, what 56 00:02:41,040 --> 00:02:42,680 Speaker 2: are you gonna do with all these pennies? Like you've 57 00:02:42,720 --> 00:02:45,280 Speaker 2: got them on hand and you're gonna throw it away 58 00:02:45,360 --> 00:02:48,800 Speaker 2: like it's it's literally money. But pennies, man, they're just 59 00:02:48,880 --> 00:02:51,560 Speaker 2: they're worth I mean, they're literally worth less than what 60 00:02:51,720 --> 00:02:53,480 Speaker 2: it cost to actually make it penny. I think it 61 00:02:53,560 --> 00:02:55,760 Speaker 2: costs like three cents. Penny should be abolished. 62 00:02:55,840 --> 00:02:56,480 Speaker 1: We all know that. 63 00:02:57,160 --> 00:03:01,040 Speaker 2: It's just no one's had the fortitude to stand up 64 00:03:01,040 --> 00:03:04,920 Speaker 2: to big Penny to kick him out. But yeah, they 65 00:03:04,919 --> 00:03:08,320 Speaker 2: got a strong lobby. Maybe next time, check out the 66 00:03:08,639 --> 00:03:10,799 Speaker 2: coinstar machine and see if you can get I think 67 00:03:10,840 --> 00:03:13,040 Speaker 2: usually you can get like an Amazon gift card, and 68 00:03:13,080 --> 00:03:14,320 Speaker 2: then I think so and then. 69 00:03:14,240 --> 00:03:16,840 Speaker 1: You don't pay anything. We use Amazon that's for sure. 70 00:03:16,960 --> 00:03:18,919 Speaker 2: Yeah, so that that'd be a better way to go, 71 00:03:19,400 --> 00:03:21,320 Speaker 2: because that sounds like a stressful situation. 72 00:03:21,480 --> 00:03:22,560 Speaker 1: It sucked, Yeah, not. 73 00:03:22,560 --> 00:03:25,200 Speaker 2: Worth the jamming. And then there's somebody there who was 74 00:03:25,240 --> 00:03:27,440 Speaker 2: like trying to get it unjammed. I just felt bad 75 00:03:27,440 --> 00:03:29,560 Speaker 2: for them. Yeah, I'm just like, I'm sorry, I'm wasting 76 00:03:30,080 --> 00:03:32,640 Speaker 2: all of our time here, and yeah, don't don't be 77 00:03:32,720 --> 00:03:35,240 Speaker 2: like me. Yeah, I'm sure they were like, this guy sucks, 78 00:03:35,400 --> 00:03:37,840 Speaker 2: he doesn't come back, but this guy has a money podcast. 79 00:03:37,880 --> 00:03:40,720 Speaker 2: That's right, that's right. All right, let's move on. Let's 80 00:03:40,720 --> 00:03:42,680 Speaker 2: get to the Friday Flight assembly of stories we found 81 00:03:42,680 --> 00:03:45,720 Speaker 2: interesting this week, and let's talk about four OL and 82 00:03:45,760 --> 00:03:48,840 Speaker 2: kse for a second. There's there's another reason to not 83 00:03:48,880 --> 00:03:51,000 Speaker 2: look at your four OAL and K statement now because 84 00:03:51,000 --> 00:03:53,200 Speaker 2: it's down and you're tempted to fiddle with your investments. 85 00:03:53,440 --> 00:03:56,440 Speaker 2: It's it's because your four and K is up and 86 00:03:56,480 --> 00:03:59,600 Speaker 2: you might be tempted to to spend more money because 87 00:03:59,640 --> 00:04:02,400 Speaker 2: of it. Right, not even by taking money out of 88 00:04:02,440 --> 00:04:05,640 Speaker 2: your tax advantage account either. The truth is, if you 89 00:04:05,720 --> 00:04:08,560 Speaker 2: invested mostly in stocks, it likely you likely saw your 90 00:04:08,560 --> 00:04:12,119 Speaker 2: portfolio balloon by twenty percent or more in twenty twenty three. Sure, 91 00:04:12,160 --> 00:04:15,880 Speaker 2: which feels good and there is no reason it shouldn't 92 00:04:15,880 --> 00:04:18,040 Speaker 2: put a smile on your face. But there's something you 93 00:04:18,080 --> 00:04:19,799 Speaker 2: need to watch out for. It's called the wealth effect. 94 00:04:20,160 --> 00:04:23,640 Speaker 2: It's a behavioral economics term which means that folks tend 95 00:04:23,640 --> 00:04:26,720 Speaker 2: to spend more as the value of their investments goes up, 96 00:04:27,080 --> 00:04:29,599 Speaker 2: even if they don't have liquid access to the gains. 97 00:04:30,040 --> 00:04:32,160 Speaker 2: It can lead you to think, h I got more 98 00:04:32,200 --> 00:04:34,480 Speaker 2: money to spend even though you don't really, all of 99 00:04:34,520 --> 00:04:37,039 Speaker 2: a sudden you feel rich. Yeah, just because your investments 100 00:04:37,160 --> 00:04:38,960 Speaker 2: go up and value don't mean that you've got more 101 00:04:39,080 --> 00:04:43,559 Speaker 2: discretionary income. You've got more long term income to spend 102 00:04:43,600 --> 00:04:45,760 Speaker 2: off in the future. But this isn't money that you 103 00:04:45,839 --> 00:04:47,960 Speaker 2: want to touch right now. And if you take this 104 00:04:48,400 --> 00:04:50,880 Speaker 2: like too far, the wealth of that can result in 105 00:04:51,000 --> 00:04:51,520 Speaker 2: taking on. 106 00:04:51,600 --> 00:04:54,560 Speaker 1: Debt because of that perceived. 107 00:04:54,680 --> 00:04:57,719 Speaker 2: Growth and your net worth, well, it's not perceived like 108 00:04:57,880 --> 00:04:59,440 Speaker 2: your net worth is going up, but that does not 109 00:04:59,480 --> 00:05:01,160 Speaker 2: have an impact on what you have now. 110 00:05:01,440 --> 00:05:01,640 Speaker 1: You know. 111 00:05:01,680 --> 00:05:03,800 Speaker 2: The same thing happens for a lot of folks, by 112 00:05:03,839 --> 00:05:05,919 Speaker 2: the way, when their home value increases just because you 113 00:05:05,960 --> 00:05:08,640 Speaker 2: bought a house back in twenty nineteen and it's now 114 00:05:08,920 --> 00:05:11,320 Speaker 2: worth fifty percent more than what it is that you 115 00:05:11,360 --> 00:05:13,880 Speaker 2: paid for. That doesn't mean you should start spending like 116 00:05:13,920 --> 00:05:17,400 Speaker 2: there's no tomorrow. And simultaneously, we're not saying that you 117 00:05:17,440 --> 00:05:20,960 Speaker 2: shouldn't enjoy your money, but just be cognizant of this 118 00:05:21,040 --> 00:05:25,560 Speaker 2: potential brain wiring issue that's just lurking beneath the service 119 00:05:25,760 --> 00:05:28,040 Speaker 2: that might prompt you to spend in ways that you 120 00:05:28,080 --> 00:05:28,560 Speaker 2: wouldn't have. 121 00:05:28,680 --> 00:05:29,880 Speaker 1: Let's say, after. 122 00:05:29,600 --> 00:05:31,479 Speaker 2: Twenty twenty two when the market was down, think about 123 00:05:31,520 --> 00:05:34,400 Speaker 2: how you felt back then, not how you feel right 124 00:05:34,440 --> 00:05:37,960 Speaker 2: now after seeing the market do well last year. We 125 00:05:38,000 --> 00:05:40,080 Speaker 2: are still trying to build wealth over the long haul 126 00:05:40,120 --> 00:05:42,839 Speaker 2: in a healthy and sustainable way. 127 00:05:42,960 --> 00:05:43,159 Speaker 1: Yep. 128 00:05:43,200 --> 00:05:46,560 Speaker 2: And I think that it's just important to be aware 129 00:05:46,680 --> 00:05:49,080 Speaker 2: of our behavioral tendencies, and this is one of them. 130 00:05:49,200 --> 00:05:50,839 Speaker 1: All right, let's talk about student loans for a second. 131 00:05:50,839 --> 00:05:51,360 Speaker 1: Student loans. 132 00:05:51,560 --> 00:05:53,640 Speaker 2: They were such a regular part of our show during 133 00:05:53,680 --> 00:05:56,320 Speaker 2: the pandemic and as the new save plan was rolling out, 134 00:05:56,520 --> 00:05:59,200 Speaker 2: and we haven't really talked about them much since the 135 00:05:59,320 --> 00:06:02,800 Speaker 2: payments started back in the fall, though. And economists they 136 00:06:02,800 --> 00:06:05,719 Speaker 2: were worried about the payment restart. They thought that it 137 00:06:05,800 --> 00:06:07,839 Speaker 2: was going to kind of lead to some tightening in 138 00:06:07,880 --> 00:06:10,719 Speaker 2: the economy. But oddly enough, we just haven't seen it 139 00:06:10,720 --> 00:06:13,960 Speaker 2: play out like that. Why it could be that folks 140 00:06:13,960 --> 00:06:17,279 Speaker 2: who truly can't afford that student loan payment simply aren't paying, 141 00:06:17,520 --> 00:06:20,240 Speaker 2: and so something like four and ten borrowers haven't paid 142 00:06:20,240 --> 00:06:24,679 Speaker 2: anything since the payment restart happened in October. So should 143 00:06:24,760 --> 00:06:27,680 Speaker 2: you pay your student loan bill? We would say, if 144 00:06:27,680 --> 00:06:30,960 Speaker 2: you can afford to pay on it, yes, but also 145 00:06:31,120 --> 00:06:34,160 Speaker 2: know that even though payments have restarted, there are still 146 00:06:34,200 --> 00:06:36,640 Speaker 2: many months left. We're not paying on your loans is 147 00:06:36,720 --> 00:06:39,240 Speaker 2: not going to get you into trouble. It's what's known 148 00:06:39,360 --> 00:06:42,400 Speaker 2: is like this on ramp timeframe, and so this coming 149 00:06:42,480 --> 00:06:45,920 Speaker 2: fall is when people are going to actually be held 150 00:06:45,920 --> 00:06:48,280 Speaker 2: accountable for not paying their student loans. That's when it's 151 00:06:48,279 --> 00:06:50,040 Speaker 2: going to be reported to the credit bureaus. That's right, 152 00:06:50,040 --> 00:06:52,320 Speaker 2: That's when that'll resume. So if you have to prioritize 153 00:06:52,360 --> 00:06:54,840 Speaker 2: the other financial goals for the time being, don't feel 154 00:06:54,880 --> 00:06:57,880 Speaker 2: bad about doing so. But it was interesting to see 155 00:06:57,920 --> 00:07:00,960 Speaker 2: I think that such a large section people are not 156 00:07:01,120 --> 00:07:04,320 Speaker 2: paying on their student loder still, But I guess I'm 157 00:07:04,320 --> 00:07:07,480 Speaker 2: also not surprised to either. Yeah, yeah, I mean, I 158 00:07:07,520 --> 00:07:09,479 Speaker 2: think what's key is sort of what you said, which 159 00:07:09,520 --> 00:07:11,320 Speaker 2: is like, hey, this is death that you took on. 160 00:07:11,440 --> 00:07:13,720 Speaker 2: So it is even though it's not necessarily that it 161 00:07:13,800 --> 00:07:16,280 Speaker 2: totally isn't being reported right now to the credit viewers. 162 00:07:16,320 --> 00:07:19,000 Speaker 2: That doesn't necessarily mean that you don't owe it. But 163 00:07:19,080 --> 00:07:21,040 Speaker 2: the good news is is down the road it is 164 00:07:21,080 --> 00:07:23,520 Speaker 2: going to be dropping from ten percent of your discretionary 165 00:07:23,560 --> 00:07:26,200 Speaker 2: income down to five percent. So that's some relief that 166 00:07:26,240 --> 00:07:28,760 Speaker 2: you can look forward to sure next summer. And by 167 00:07:28,760 --> 00:07:31,080 Speaker 2: the way, if maybe you've got a more complicated situation 168 00:07:31,160 --> 00:07:33,320 Speaker 2: and you need some help figuring out how to proceed 169 00:07:33,440 --> 00:07:36,600 Speaker 2: with your student loans, this might be an instance where 170 00:07:36,600 --> 00:07:39,000 Speaker 2: you might want to reach out to a pro over 171 00:07:39,120 --> 00:07:41,920 Speaker 2: at Student Loan Planner. We've actually got an article over 172 00:07:41,960 --> 00:07:44,080 Speaker 2: on the website that'll help you to understand whether or 173 00:07:44,120 --> 00:07:46,600 Speaker 2: not you're a good candidate to consider going with somebody 174 00:07:46,600 --> 00:07:49,720 Speaker 2: who can kind of walk you through a more complicated 175 00:07:49,800 --> 00:07:53,080 Speaker 2: student loan payment process. And it makes more sense for 176 00:07:53,080 --> 00:07:55,960 Speaker 2: people who have higher amounts of student loan yet, right, 177 00:07:56,000 --> 00:07:57,600 Speaker 2: So if you're one of those folks who's like, I 178 00:07:57,600 --> 00:07:59,400 Speaker 2: don't have like ten grand, I've got like fifty to 179 00:07:59,480 --> 00:08:01,800 Speaker 2: sixty grand, then it might make sense to talk to 180 00:08:01,840 --> 00:08:05,280 Speaker 2: a as well as those more complicated income driven repayment 181 00:08:05,320 --> 00:08:07,640 Speaker 2: plans if you're trying to qualify and you're not sure 182 00:08:07,680 --> 00:08:12,120 Speaker 2: what counts. Those are all similar situations that might require 183 00:08:12,160 --> 00:08:14,360 Speaker 2: a professional. But on the note of student loans, on 184 00:08:14,400 --> 00:08:18,120 Speaker 2: the note of paying for college, one new perk of 185 00:08:18,160 --> 00:08:21,000 Speaker 2: the Secure Act two point zero it actually went live 186 00:08:21,000 --> 00:08:24,200 Speaker 2: this week. You can now officially roll five twenty nine 187 00:08:24,280 --> 00:08:28,720 Speaker 2: money into a roth IRA. So back before this saw passed, 188 00:08:28,960 --> 00:08:33,360 Speaker 2: neither of us were really excited about five twenty nine plans. 189 00:08:33,360 --> 00:08:35,520 Speaker 2: There were just so many other routes that you should 190 00:08:35,520 --> 00:08:39,559 Speaker 2: take before saving, specifically for your kids college. The example 191 00:08:39,679 --> 00:08:41,160 Speaker 2: we would always give is like make sure that you're 192 00:08:41,520 --> 00:08:44,160 Speaker 2: putting your own oxygen mask on before you're trying to 193 00:08:44,360 --> 00:08:46,720 Speaker 2: help your kid or help those around you. Basically, there 194 00:08:46,800 --> 00:08:49,319 Speaker 2: is an order, a financial order of operations. 195 00:08:49,360 --> 00:08:50,200 Speaker 1: We called it. 196 00:08:50,200 --> 00:08:51,640 Speaker 2: The money Gears will make sure to link to that 197 00:08:51,679 --> 00:08:53,800 Speaker 2: in our show notes as well. The five to twenty 198 00:08:53,880 --> 00:08:56,920 Speaker 2: nine plane just falls way down on the list. Yes, exactly, 199 00:08:57,000 --> 00:09:00,520 Speaker 2: and that's still true. But with this added flexibility, a 200 00:09:00,559 --> 00:09:03,560 Speaker 2: significant chunk of money that you do funnel into a 201 00:09:03,640 --> 00:09:06,320 Speaker 2: five twenty nine account for your kids, it can actually 202 00:09:06,320 --> 00:09:09,280 Speaker 2: be rolled into a roth ira for their retirement years. 203 00:09:09,640 --> 00:09:12,760 Speaker 2: It's supposed to basically be a relief for folks who 204 00:09:12,920 --> 00:09:14,680 Speaker 2: just oversaved, who overdid it. 205 00:09:15,000 --> 00:09:16,920 Speaker 1: On the saving for college front. 206 00:09:17,000 --> 00:09:19,600 Speaker 2: But crafty listeners out there can use this sort of 207 00:09:19,600 --> 00:09:21,680 Speaker 2: a think of it almost as like a loophole to 208 00:09:21,800 --> 00:09:24,920 Speaker 2: start helping your kids do invest for decades down their road, 209 00:09:25,160 --> 00:09:29,079 Speaker 2: even earlier, in particular if they don't end up using those. 210 00:09:28,720 --> 00:09:30,600 Speaker 1: Dollars for higher education. 211 00:09:31,040 --> 00:09:33,040 Speaker 2: And we've actually got a new article up on the 212 00:09:33,120 --> 00:09:35,520 Speaker 2: site and you can go there for all the nuance 213 00:09:35,559 --> 00:09:37,559 Speaker 2: and all the particulars that need to keep in mind. 214 00:09:37,640 --> 00:09:40,040 Speaker 1: There's a lot of detail. There's a five year rule, 215 00:09:40,080 --> 00:09:42,320 Speaker 1: there's an aging year process. You got to age this 216 00:09:42,400 --> 00:09:44,600 Speaker 1: money man. That's right, fine cheese. 217 00:09:44,600 --> 00:09:46,760 Speaker 2: So even though you can do it starting this year, 218 00:09:46,800 --> 00:09:48,679 Speaker 2: there are a lot of people who won't be ready 219 00:09:48,679 --> 00:09:51,720 Speaker 2: to do it this year. But it is definitely it 220 00:09:51,760 --> 00:09:54,280 Speaker 2: makes five twenty nine plans look a whole lot more 221 00:09:54,320 --> 00:09:58,439 Speaker 2: attractive because they have greater flexibility now. And Matt on 222 00:09:58,520 --> 00:10:02,040 Speaker 2: the note of school, the FASTS launch, did you see that, Yeah, 223 00:10:02,080 --> 00:10:05,400 Speaker 2: except for it basically just made people angry. It was 224 00:10:05,559 --> 00:10:09,640 Speaker 2: just the worst launch of all time. And so I guess. 225 00:10:09,880 --> 00:10:12,559 Speaker 2: We had Tina the fafts of Guru on the show 226 00:10:12,679 --> 00:10:15,040 Speaker 2: Can to Steal, Yeah, a couple of months ago, and 227 00:10:15,960 --> 00:10:17,680 Speaker 2: you know we were talking about, oh yeah, hey, this 228 00:10:17,800 --> 00:10:19,959 Speaker 2: new shorter FAFTSA is gonna make it easier for a 229 00:10:20,000 --> 00:10:20,400 Speaker 2: lot of people. 230 00:10:21,320 --> 00:10:23,920 Speaker 1: It should be great. That's what we were promised, not 231 00:10:23,960 --> 00:10:25,920 Speaker 1: from her but from the higher ups. 232 00:10:25,960 --> 00:10:29,200 Speaker 2: Well, and the government had three years to get this 233 00:10:29,320 --> 00:10:32,360 Speaker 2: right and they still botched it. So hopefully they're gonna 234 00:10:32,400 --> 00:10:33,600 Speaker 2: get the kinks worked out. 235 00:10:33,600 --> 00:10:34,480 Speaker 1: Will report back. 236 00:10:34,840 --> 00:10:39,600 Speaker 2: But yes, you can technically fill out this now short 237 00:10:39,679 --> 00:10:40,640 Speaker 2: shortened fats of form. 238 00:10:40,720 --> 00:10:42,480 Speaker 1: Now you can try to. You can try to. 239 00:10:42,880 --> 00:10:44,560 Speaker 2: Yeah, but I would just say, don't pull your hair out, 240 00:10:44,559 --> 00:10:46,680 Speaker 2: don't go crazy, just wait a few weeks. 241 00:10:46,720 --> 00:10:48,400 Speaker 1: Still get things sorted out totally, all right, dud. 242 00:10:48,440 --> 00:10:51,160 Speaker 2: Let's talk about Christmas returns, because now that the dust 243 00:10:51,400 --> 00:10:54,640 Speaker 2: has settled from Christmas in the holidays, it's about time 244 00:10:54,679 --> 00:10:58,439 Speaker 2: to start making some of those returns. Listener Mackenzie, she 245 00:10:58,520 --> 00:11:01,840 Speaker 2: actually emailed us and she sold a few of her 246 00:11:01,880 --> 00:11:05,000 Speaker 2: own wanted gift cards via I think she specifically used 247 00:11:05,000 --> 00:11:08,240 Speaker 2: card cash dot com. So if you're listening, you've got 248 00:11:08,280 --> 00:11:11,120 Speaker 2: some gift cards that you don't love. Don't let them 249 00:11:11,160 --> 00:11:13,720 Speaker 2: get buried in the bottom of your junk drawer until 250 00:11:13,800 --> 00:11:18,080 Speaker 2: they expire or get accidentally thrown away. Get rid of 251 00:11:18,120 --> 00:11:22,600 Speaker 2: them in just eroads their values, yes exactly. Unlove those 252 00:11:22,600 --> 00:11:25,320 Speaker 2: things and turn those gift cards into actual dollars that 253 00:11:25,360 --> 00:11:29,040 Speaker 2: you can spend today on things that you might value 254 00:11:29,040 --> 00:11:32,720 Speaker 2: a little more. And if it's actual physical goods that 255 00:11:32,720 --> 00:11:35,080 Speaker 2: you received that you don't plan on keeping, make a 256 00:11:35,120 --> 00:11:38,280 Speaker 2: plan to do those returns soon. And although it's going 257 00:11:38,360 --> 00:11:40,040 Speaker 2: to be easier to do an online return and just 258 00:11:40,080 --> 00:11:42,319 Speaker 2: mail those items back, know that it's likely going to 259 00:11:42,400 --> 00:11:45,520 Speaker 2: cost you more if you're wanting to go that route 260 00:11:45,559 --> 00:11:47,680 Speaker 2: and just drop it off at the UPS store or 261 00:11:47,720 --> 00:11:51,800 Speaker 2: wherever it is that you make returns. Instead, consider returning 262 00:11:51,960 --> 00:11:53,840 Speaker 2: in store because that's going to help you to avoid 263 00:11:53,880 --> 00:11:58,480 Speaker 2: those quote unquote return or restocking charges that are becoming 264 00:11:58,600 --> 00:12:00,719 Speaker 2: more and more popular. Let alone not to mention the 265 00:12:00,760 --> 00:12:03,439 Speaker 2: actual shipping costs if that's something that you. 266 00:12:03,360 --> 00:12:03,920 Speaker 1: Have to pay for. 267 00:12:04,360 --> 00:12:06,160 Speaker 2: But while you might have until the end of the 268 00:12:06,200 --> 00:12:08,320 Speaker 2: month to make returns at some of the stores, other 269 00:12:08,400 --> 00:12:12,160 Speaker 2: Christmas return policies actually and mid month, so make sure 270 00:12:12,200 --> 00:12:14,160 Speaker 2: that you are reading the fine detail. Yeah, make a 271 00:12:14,200 --> 00:12:16,920 Speaker 2: plan this weekend to go make those returns, and you're right, man, 272 00:12:16,960 --> 00:12:19,720 Speaker 2: I mean they just those return policies are getting more stringent. 273 00:12:19,760 --> 00:12:23,360 Speaker 2: It makes sense because it costs the retailers meaningful amounts 274 00:12:23,400 --> 00:12:27,319 Speaker 2: of money to process those returns. It caught shipping's not free. 275 00:12:27,720 --> 00:12:29,319 Speaker 2: It wasn't free when it got sent to you, and 276 00:12:29,360 --> 00:12:31,280 Speaker 2: it's not free when you send it back to them. 277 00:12:31,679 --> 00:12:32,360 Speaker 1: So I'm not. 278 00:12:32,440 --> 00:12:35,120 Speaker 2: Mad about the fact that they're charging for that, but 279 00:12:35,559 --> 00:12:37,640 Speaker 2: people need to be aware of that because it might 280 00:12:38,000 --> 00:12:41,160 Speaker 2: change how they decide to make their return. We've got 281 00:12:41,160 --> 00:12:44,760 Speaker 2: more to get to on this episode, including can you 282 00:12:44,880 --> 00:12:47,880 Speaker 2: lease a used car? Turns out you might be able 283 00:12:47,920 --> 00:12:50,520 Speaker 2: to pretty soon. We'll get to that and more right 284 00:12:50,559 --> 00:12:51,000 Speaker 2: after this. 285 00:13:00,120 --> 00:13:01,280 Speaker 1: Back from the break that's keep. 286 00:13:01,120 --> 00:13:04,120 Speaker 2: This Friday flight train rolling and Joel, of course, you 287 00:13:04,200 --> 00:13:07,160 Speaker 2: know that is now time for our ludicrous headline of 288 00:13:07,200 --> 00:13:10,040 Speaker 2: the week. This one is from the journal Wall Street Journal, 289 00:13:10,360 --> 00:13:14,000 Speaker 2: and the headline reads the new fitness gadgets that promise 290 00:13:14,080 --> 00:13:17,559 Speaker 2: to change your life, which is it's kind of fun 291 00:13:17,640 --> 00:13:20,480 Speaker 2: because you and I both have gotten more into fitness recently, 292 00:13:20,559 --> 00:13:21,600 Speaker 2: so I think we were both like. 293 00:13:21,679 --> 00:13:24,480 Speaker 1: Oh, let's see, let's see what's out there. 294 00:13:24,880 --> 00:13:28,800 Speaker 2: It's funny specifically because some of the things that they're highlighting, 295 00:13:29,360 --> 00:13:32,520 Speaker 2: like the gadgets, it's they're silly and they're crazy expensive. 296 00:13:32,840 --> 00:13:35,679 Speaker 2: These different pieces of technology that are finding their way 297 00:13:35,679 --> 00:13:38,280 Speaker 2: into our lives, These different products that are hitting the market. 298 00:13:38,600 --> 00:13:40,480 Speaker 1: So for instance, there is one that was like a 299 00:13:41,200 --> 00:13:42,280 Speaker 1: sweat lost tracker. 300 00:13:43,440 --> 00:13:46,920 Speaker 2: Another product that they mentioned were adjustable compression leggings. Yeah, 301 00:13:46,960 --> 00:13:49,560 Speaker 2: that one the one level of compression. Sorry, it's not 302 00:13:49,600 --> 00:13:51,000 Speaker 2: doing it anymore. You need to be able to do 303 00:13:51,040 --> 00:13:53,120 Speaker 2: It's kind of like the Reebok pumps. You can change it, 304 00:13:53,240 --> 00:13:55,000 Speaker 2: dial it up a little bit. And there was also 305 00:13:55,040 --> 00:13:59,520 Speaker 2: this like six thousand dollars stationary bike that vibrates. It's 306 00:13:59,520 --> 00:14:04,680 Speaker 2: supposed to meant to mimic bicycling down a cobblestone street, 307 00:14:04,840 --> 00:14:07,760 Speaker 2: you know, to get that real life experience like you 308 00:14:07,800 --> 00:14:09,560 Speaker 2: wanted to at home when you're getting. 309 00:14:09,360 --> 00:14:11,160 Speaker 1: A work out. It's it's ridiculous. 310 00:14:11,160 --> 00:14:15,160 Speaker 2: I certainly plan to continue to exercise more in twenty 311 00:14:15,200 --> 00:14:17,439 Speaker 2: twenty four, or at least maintaining what I did last year, 312 00:14:17,440 --> 00:14:19,920 Speaker 2: but I don't plan on purchasing any of these items 313 00:14:20,040 --> 00:14:22,720 Speaker 2: that purport to help me. I think there's nothing wrong. 314 00:14:23,040 --> 00:14:27,440 Speaker 2: Let's say with buying a normal, used, perhaps stationary bike 315 00:14:27,640 --> 00:14:29,920 Speaker 2: to have at home, or paying to join a gym 316 00:14:30,240 --> 00:14:32,040 Speaker 2: that you pay a monthly fee for. But if you 317 00:14:32,080 --> 00:14:35,440 Speaker 2: go too far down the gear rabbit hole, I think 318 00:14:35,480 --> 00:14:38,440 Speaker 2: you might find yourself with less cash on hand, and 319 00:14:38,840 --> 00:14:42,000 Speaker 2: simultaneously you may not be any closer to being fit. 320 00:14:42,120 --> 00:14:42,320 Speaker 1: Yeah. 321 00:14:42,320 --> 00:14:44,280 Speaker 2: I mean a lot of those gadgets were just kind 322 00:14:44,280 --> 00:14:47,320 Speaker 2: of ridiculous. There was one it almost looked like an 323 00:14:47,360 --> 00:14:49,440 Speaker 2: ab roller, but it was like seven hundred and fifty dollars. 324 00:14:49,440 --> 00:14:51,760 Speaker 2: They claimed to be a total body workout and I'm like, 325 00:14:51,800 --> 00:14:55,720 Speaker 2: how is that possible? And so yeah, it just thinking 326 00:14:55,760 --> 00:14:58,960 Speaker 2: that the new fitness item is what's going to help 327 00:14:58,960 --> 00:14:59,680 Speaker 2: you get in shape. 328 00:15:00,000 --> 00:15:01,320 Speaker 1: No, no, no, no, it's about. 329 00:15:01,040 --> 00:15:04,560 Speaker 2: You and actually following through and finding a fitness regimen 330 00:15:04,600 --> 00:15:07,160 Speaker 2: that you can keep doing through thick and through thin, 331 00:15:07,240 --> 00:15:07,920 Speaker 2: throughout the year. 332 00:15:08,000 --> 00:15:08,520 Speaker 1: Sure, it's not. 333 00:15:08,520 --> 00:15:10,640 Speaker 2: About getting the right gadget. And Matt, this is one 334 00:15:10,640 --> 00:15:13,200 Speaker 2: of those instances where we see some parallels between physical 335 00:15:13,200 --> 00:15:16,080 Speaker 2: health and financial health. We're oftentimes looking for the easy 336 00:15:16,160 --> 00:15:18,920 Speaker 2: button that's going to provide us with all the results. 337 00:15:19,040 --> 00:15:20,920 Speaker 2: Oh yeah, but without all the effort, right, I mean 338 00:15:20,920 --> 00:15:23,080 Speaker 2: that's when you if you were to boiler down. That's 339 00:15:23,120 --> 00:15:26,160 Speaker 2: what I want, but it just that's not how life works, 340 00:15:26,320 --> 00:15:27,880 Speaker 2: and we want to see that progress in a fraction 341 00:15:27,960 --> 00:15:30,920 Speaker 2: of the time that's actually necessary to build up a durable, 342 00:15:30,920 --> 00:15:33,960 Speaker 2: healthy foundation. So just like we're tempted to buy gadgets 343 00:15:33,960 --> 00:15:36,360 Speaker 2: to get healthy, we also might be tempted into thinking 344 00:15:36,400 --> 00:15:40,880 Speaker 2: that joining an investing club or shocking money into cryptocurrency 345 00:15:41,160 --> 00:15:43,960 Speaker 2: is to ticket to building wealth. It's like, hey, listen, 346 00:15:44,000 --> 00:15:47,440 Speaker 2: I don't have time to wait for ten percent annualized 347 00:15:47,520 --> 00:15:49,920 Speaker 2: compounding returns in the S and P I got to 348 00:15:49,960 --> 00:15:52,400 Speaker 2: strike it rich much more quickly. I got to take 349 00:15:53,320 --> 00:15:56,840 Speaker 2: bigger risks. Well, that's going to lead to heartache for 350 00:15:56,880 --> 00:15:59,600 Speaker 2: most people. And someone might look at last year's S 351 00:15:59,640 --> 00:16:01,680 Speaker 2: and P FI five hundred and they think, wow, dang, 352 00:16:01,800 --> 00:16:04,120 Speaker 2: I just missed out on twenty four percent returns. But 353 00:16:04,120 --> 00:16:06,800 Speaker 2: those returns didn't happen on December thirty first. They took 354 00:16:06,840 --> 00:16:09,280 Speaker 2: place over the three hundred and sixty five previous days 355 00:16:09,600 --> 00:16:12,800 Speaker 2: that slow and steady investors kept at it regardless of 356 00:16:12,800 --> 00:16:15,480 Speaker 2: what the market was doing. There's no easy button. Yeah, 357 00:16:15,560 --> 00:16:18,720 Speaker 2: we can be so obsessed and fixated on the end 358 00:16:18,760 --> 00:16:21,600 Speaker 2: result as opposed to knowing like. 359 00:16:21,520 --> 00:16:23,960 Speaker 1: The process that it takes to get there, right. 360 00:16:23,880 --> 00:16:27,160 Speaker 2: Like the hours and days of sweat and denying your 361 00:16:27,160 --> 00:16:29,360 Speaker 2: self dessert or or you know, when it comes to 362 00:16:29,360 --> 00:16:32,200 Speaker 2: physical fitness, but when it comes to investing, sacrifice that's 363 00:16:32,200 --> 00:16:34,920 Speaker 2: involved with saying no to purchases and socking that money 364 00:16:34,920 --> 00:16:37,880 Speaker 2: away into those those tax advantage retirement accounts. The small 365 00:16:37,880 --> 00:16:40,520 Speaker 2: things like, hey, literally, what if it's a new year. 366 00:16:40,840 --> 00:16:42,680 Speaker 2: You go into your four oh one K, the back 367 00:16:42,760 --> 00:16:44,280 Speaker 2: end of your four oh on and K, and you 368 00:16:44,320 --> 00:16:47,880 Speaker 2: increase your contributions by one percent. Maybe you're at seven percent, 369 00:16:48,080 --> 00:16:50,000 Speaker 2: maybe you're at four percent right now, but if you 370 00:16:50,000 --> 00:16:52,240 Speaker 2: increase it by one percent, it seems like a small move, 371 00:16:52,480 --> 00:16:54,000 Speaker 2: but it ends up being a really big move that's 372 00:16:54,040 --> 00:16:56,680 Speaker 2: going to help you out and help you just build 373 00:16:56,720 --> 00:16:59,280 Speaker 2: more wealth in the coming months and years. And if 374 00:16:59,320 --> 00:17:02,240 Speaker 2: you are kind of new to investing, we have a 375 00:17:02,280 --> 00:17:05,119 Speaker 2: beginner's guide of how to invest. We'll link to that 376 00:17:05,240 --> 00:17:07,760 Speaker 2: article in our show notes. Matt, let's talk about cars 377 00:17:07,760 --> 00:17:09,760 Speaker 2: for a second. We've always said, you and I have 378 00:17:09,800 --> 00:17:12,560 Speaker 2: always said that leasing a car is like lighting money 379 00:17:12,560 --> 00:17:15,119 Speaker 2: on fire, like it's it's just a horrible idea. 380 00:17:15,240 --> 00:17:15,960 Speaker 1: Yeah, pretty much. 381 00:17:16,000 --> 00:17:17,879 Speaker 2: I don't like money on fire and I don't lease cars, 382 00:17:18,480 --> 00:17:20,440 Speaker 2: but what if you could lease a used car? 383 00:17:20,480 --> 00:17:22,600 Speaker 1: Would that be better? Maybe? 384 00:17:23,119 --> 00:17:25,399 Speaker 2: Honda and Accura, it turns out, are going down this 385 00:17:25,560 --> 00:17:30,240 Speaker 2: path of leasing generally used, certified pre owned cars for 386 00:17:30,800 --> 00:17:34,280 Speaker 2: less money in order to lure in younger drivers. I 387 00:17:34,400 --> 00:17:36,400 Speaker 2: kind of sort of like it because leasing a four 388 00:17:36,520 --> 00:17:39,040 Speaker 2: year old Honda that's in great shape is a better 389 00:17:39,080 --> 00:17:41,440 Speaker 2: financial move than leasing a brand new Honda Cord or 390 00:17:41,480 --> 00:17:43,280 Speaker 2: something or something like that. It's a better option than 391 00:17:43,359 --> 00:17:46,480 Speaker 2: leasing something bright new because like, basically what a lease 392 00:17:46,680 --> 00:17:47,200 Speaker 2: is you. 393 00:17:47,200 --> 00:17:50,720 Speaker 1: Are paying for depreciation. And when you have a brand new. 394 00:17:50,680 --> 00:17:54,800 Speaker 2: Vehicle, guess what those are the vehicles that depreciate the fastest. Yeah, So, like, 395 00:17:54,920 --> 00:17:57,240 Speaker 2: is it a card depreciates fifty percent within the first 396 00:17:57,320 --> 00:18:00,400 Speaker 2: five years, ten percent just from driving it off the lot, 397 00:18:00,400 --> 00:18:03,200 Speaker 2: and there remaining remaining forty percent basically over the next 398 00:18:03,359 --> 00:18:04,240 Speaker 2: four years, I guess. 399 00:18:04,720 --> 00:18:05,720 Speaker 1: But just keep that in mind. 400 00:18:05,960 --> 00:18:08,600 Speaker 2: While it's not our favorite thing, it is better than 401 00:18:08,840 --> 00:18:11,280 Speaker 2: leasing a brand new vehicle, Yeah, for sure. And because 402 00:18:11,280 --> 00:18:13,240 Speaker 2: the payments, I mean, they're gonna be a lot more reasonable, 403 00:18:13,280 --> 00:18:15,320 Speaker 2: I guess, is what I'm saying than leasing something that's 404 00:18:15,520 --> 00:18:17,800 Speaker 2: completely brand new. Oh yeah, no, it's gonna it's kind 405 00:18:17,840 --> 00:18:20,720 Speaker 2: of shades of great here massively, massively trimmed that monthly 406 00:18:20,840 --> 00:18:24,399 Speaker 2: amount that you have to pay an Accura. But just 407 00:18:24,400 --> 00:18:26,919 Speaker 2: like we always say, Matt better yet, go ahead and 408 00:18:27,000 --> 00:18:29,320 Speaker 2: just buy the four year old car yep and drive 409 00:18:29,359 --> 00:18:31,440 Speaker 2: it for a decade. That's gonna save you a lot 410 00:18:31,480 --> 00:18:33,840 Speaker 2: more over the years than leasing, even if you're leasing 411 00:18:33,920 --> 00:18:37,040 Speaker 2: used So I kind of like that leasing used cars 412 00:18:37,200 --> 00:18:40,320 Speaker 2: is gonna become a thing, and I'm curious to see 413 00:18:40,359 --> 00:18:42,719 Speaker 2: how it plays out. But I think even for how 414 00:18:42,760 --> 00:18:45,720 Speaker 2: to money listeners, while it's a less egregious money mistake 415 00:18:45,760 --> 00:18:47,760 Speaker 2: than leasing a brand new car, it's still not the. 416 00:18:47,720 --> 00:18:50,200 Speaker 1: Optimal move exactly. Yeah, it's a better option, it is 417 00:18:50,400 --> 00:18:51,679 Speaker 1: not the best option. 418 00:18:51,760 --> 00:18:54,240 Speaker 2: Owning is still going to be better than leasing, I 419 00:18:54,240 --> 00:18:56,399 Speaker 2: think like ninety nine percent of the time. But one 420 00:18:56,440 --> 00:18:59,280 Speaker 2: other model that's gaining steam and maybe it'll be the future, 421 00:18:59,760 --> 00:19:03,920 Speaker 2: does involve ownership either. But it's about having flexible access 422 00:19:04,320 --> 00:19:07,960 Speaker 2: to transportation. So we've seen car sharing sites like zip 423 00:19:08,000 --> 00:19:11,560 Speaker 2: car that's certainly made a difference in the market. Turo 424 00:19:11,800 --> 00:19:14,440 Speaker 2: they have as well. But these resources are great because 425 00:19:14,440 --> 00:19:16,360 Speaker 2: they can help you to ditch a car from your 426 00:19:16,359 --> 00:19:19,199 Speaker 2: life completely, but then you still have access to a 427 00:19:19,280 --> 00:19:21,840 Speaker 2: car when you need one or whenever you want one. 428 00:19:22,280 --> 00:19:24,560 Speaker 2: So yeah, leasing is going to be more flexible, but 429 00:19:24,600 --> 00:19:28,440 Speaker 2: these other non ownership models are even honestly, I think, 430 00:19:28,480 --> 00:19:30,320 Speaker 2: more flexible, but not in mind. It's a great goal 431 00:19:30,320 --> 00:19:33,680 Speaker 2: to try and own fewer depreciating assets. And it also 432 00:19:33,680 --> 00:19:35,800 Speaker 2: makes me think of even just bicycling, because guess what, 433 00:19:36,040 --> 00:19:41,040 Speaker 2: that's also a depreciating asset. But it's vastly more affordable 434 00:19:41,119 --> 00:19:43,960 Speaker 2: to own a bicycle, and I know you can't bike everywhere. Well, 435 00:19:43,960 --> 00:19:47,359 Speaker 2: the depreciation hit from buying a fifty thousand dollars car 436 00:19:47,840 --> 00:19:50,720 Speaker 2: or a five hundred dollars bike is vastly different. 437 00:19:50,760 --> 00:19:53,280 Speaker 1: Yeah, yeah, right, it's kind of like apples and oranges. 438 00:19:53,119 --> 00:19:56,360 Speaker 2: Yeah, or something even more stark, right, but like, yeah, 439 00:19:56,359 --> 00:19:58,280 Speaker 2: we've talked about this, and we'll link to this episode 440 00:19:58,280 --> 00:19:59,920 Speaker 2: in the show notes. We've talked about trying to get 441 00:20:00,040 --> 00:20:02,160 Speaker 2: rid of a car from your life, and especially for 442 00:20:02,320 --> 00:20:06,000 Speaker 2: two car households, and there's more work from home happening 443 00:20:06,000 --> 00:20:08,439 Speaker 2: and stuff like that. Just add up all the costs 444 00:20:08,480 --> 00:20:11,080 Speaker 2: of this car and think, could I if I did 445 00:20:11,119 --> 00:20:12,639 Speaker 2: some ride share, a little bit of zip car, a 446 00:20:12,640 --> 00:20:15,480 Speaker 2: little bit of Touro. Could we have just one car, 447 00:20:15,600 --> 00:20:18,800 Speaker 2: maybe in our garage, one car in our possession, and 448 00:20:18,840 --> 00:20:21,000 Speaker 2: that way we're not taking the depreciation hit on two 449 00:20:21,040 --> 00:20:23,720 Speaker 2: cars simultaneously. It's it leaks worth looking into. And I 450 00:20:23,760 --> 00:20:25,240 Speaker 2: think it's a goal of a whole lot of people 451 00:20:25,680 --> 00:20:29,479 Speaker 2: can accomplish. It's gonna bring thousands and thousands of dollars 452 00:20:29,840 --> 00:20:32,920 Speaker 2: back into your life every single year exactly. Yeah, dude, 453 00:20:33,000 --> 00:20:35,119 Speaker 2: So this makes me think. I know I talked about 454 00:20:35,280 --> 00:20:37,840 Speaker 2: rent using Turo to rent a Tesla, and I shared 455 00:20:37,840 --> 00:20:41,440 Speaker 2: like the electric car versus gasoline. Yeah, numbers, I crunch 456 00:20:41,440 --> 00:20:42,879 Speaker 2: those numbers. But I don't think I talked about the 457 00:20:42,920 --> 00:20:45,840 Speaker 2: actual Turo experience. This is last year when Kate and 458 00:20:45,840 --> 00:20:46,960 Speaker 2: I were out in Colorado. 459 00:20:47,320 --> 00:20:49,440 Speaker 1: But it was actually pretty damn good. And here's the thing. 460 00:20:49,480 --> 00:20:52,000 Speaker 2: We actually hit a There was a hiccup, which is 461 00:20:52,040 --> 00:20:54,400 Speaker 2: when we landed at the airport, I turned my phone 462 00:20:54,640 --> 00:20:57,040 Speaker 2: off airplane mode or whatever, and the car that we 463 00:20:57,040 --> 00:21:00,439 Speaker 2: were supposed to be receiving from Turo it hadn't been 464 00:21:00,440 --> 00:21:02,480 Speaker 2: returned yet and so it wasn't going to be available. 465 00:21:02,480 --> 00:21:04,400 Speaker 2: But somebody from Truro called me. It was like, hey, 466 00:21:04,400 --> 00:21:05,120 Speaker 2: we've got another car. 467 00:21:05,160 --> 00:21:05,520 Speaker 1: For you. 468 00:21:05,520 --> 00:21:07,680 Speaker 2: You just have to approve it. I was like, okay, 469 00:21:07,760 --> 00:21:11,520 Speaker 2: sounds great, same price, it was a nicer Tesla. Downside though, 470 00:21:11,600 --> 00:21:13,119 Speaker 2: is that we had to wait around like an extra 471 00:21:13,320 --> 00:21:16,000 Speaker 2: thirty minutes because they needed to deliver. 472 00:21:15,760 --> 00:21:16,840 Speaker 1: It to the airport. 473 00:21:16,880 --> 00:21:18,760 Speaker 2: Got as opposed to, how do we just gone with 474 00:21:18,800 --> 00:21:21,280 Speaker 2: a standard rental car? Of course they would have just 475 00:21:21,320 --> 00:21:24,160 Speaker 2: given us any car that's in their fleet that's already there, 476 00:21:24,520 --> 00:21:28,960 Speaker 2: so slightly more customized experience, but just know, perhaps there 477 00:21:29,040 --> 00:21:32,840 Speaker 2: might be some flexibility required of you. It's not unlike 478 00:21:32,880 --> 00:21:35,760 Speaker 2: honestly renting from Airbnb, right like, you get a unique place, 479 00:21:35,840 --> 00:21:38,800 Speaker 2: something that's more customizable to what it is you're looking for, 480 00:21:39,760 --> 00:21:42,200 Speaker 2: but you're not going to have countless rooms to choose 481 00:21:42,240 --> 00:21:45,440 Speaker 2: from at a hotel. Were your Airbnb for some reason 482 00:21:45,440 --> 00:21:47,359 Speaker 2: not to be available for Yeah, but overall, just a 483 00:21:47,480 --> 00:21:49,800 Speaker 2: good experience. We're definitely gonna check it out again in 484 00:21:49,840 --> 00:21:50,160 Speaker 2: the future. 485 00:21:50,320 --> 00:21:50,520 Speaker 1: Nice. 486 00:21:50,600 --> 00:21:52,639 Speaker 2: Yeah, Well, let's talk about buying now, pay later for 487 00:21:52,680 --> 00:21:55,359 Speaker 2: a second map, because do it until now it's been 488 00:21:55,400 --> 00:21:58,840 Speaker 2: something you're only able to do online, but that just 489 00:21:58,920 --> 00:22:02,160 Speaker 2: changed this past week. You can now buy now, pay 490 00:22:02,240 --> 00:22:06,119 Speaker 2: later in real life, which in the flesh just freaking 491 00:22:06,160 --> 00:22:09,000 Speaker 2: crazy to me. If you head to a self checkout 492 00:22:09,080 --> 00:22:11,639 Speaker 2: lane at Walmart, now you can opt to pay for 493 00:22:11,680 --> 00:22:15,439 Speaker 2: your purchases via multiple installments. Supposedly you can't do this 494 00:22:15,480 --> 00:22:17,440 Speaker 2: with groceries, they said, by the way, which is good 495 00:22:17,480 --> 00:22:20,760 Speaker 2: news because that would have worded me. But most other 496 00:22:20,840 --> 00:22:23,840 Speaker 2: stuff you can purchase at Walmart up to four thousand dollars. 497 00:22:23,840 --> 00:22:27,040 Speaker 2: I think of an order can be paid off over time. 498 00:22:27,400 --> 00:22:30,879 Speaker 2: And American shoppers they're just so quickly getting used to 499 00:22:31,080 --> 00:22:33,600 Speaker 2: affirm Klarna and after pay and they're starting to think 500 00:22:33,600 --> 00:22:36,680 Speaker 2: of buy now, pay later as a normal way to pay. 501 00:22:37,040 --> 00:22:42,359 Speaker 2: It's the adoption has been like rapid, but gosh, this 502 00:22:42,480 --> 00:22:43,960 Speaker 2: is not a normal way to pay. 503 00:22:44,160 --> 00:22:45,159 Speaker 1: It's super weird. 504 00:22:45,480 --> 00:22:48,200 Speaker 2: And the fact that yeah, now we're normalizing buy now, 505 00:22:48,200 --> 00:22:50,800 Speaker 2: pay later even more, that you can use it in 506 00:22:50,880 --> 00:22:53,440 Speaker 2: the store, in the physical store, idn't. I don't like 507 00:22:53,480 --> 00:22:55,040 Speaker 2: that you can use it online. I don't like that 508 00:22:55,080 --> 00:22:57,640 Speaker 2: you can do it for buying airplane tickets. I don't 509 00:22:57,680 --> 00:23:00,760 Speaker 2: like that you can do it for anything. But yeah, 510 00:23:00,840 --> 00:23:03,840 Speaker 2: this it's the buy now, pay later. Things only get worse. Yeah, 511 00:23:03,840 --> 00:23:06,919 Speaker 2: you're basically stealing from future you in order to satisfy 512 00:23:07,119 --> 00:23:09,720 Speaker 2: present day you. That wants your stuff right that once 513 00:23:09,720 --> 00:23:12,879 Speaker 2: your goods, and it is weird, but it is definitely 514 00:23:12,880 --> 00:23:15,639 Speaker 2: becoming more widespread. A quarter of Americans have used it 515 00:23:15,680 --> 00:23:18,360 Speaker 2: to pay for something at this point, and these services 516 00:23:18,359 --> 00:23:21,560 Speaker 2: they're just gaining steam. And there's a reason that retailers 517 00:23:21,560 --> 00:23:24,159 Speaker 2: are jumping on the bandwagon that they're offering the service. 518 00:23:24,480 --> 00:23:27,440 Speaker 2: It's because shoppers tend to buy more when they can 519 00:23:27,520 --> 00:23:28,119 Speaker 2: buy now. 520 00:23:28,040 --> 00:23:28,520 Speaker 1: Pay later. 521 00:23:28,640 --> 00:23:32,160 Speaker 2: This is the whole selling point that affirm Klarnaine, after 522 00:23:32,200 --> 00:23:35,240 Speaker 2: pay give to the retailers or say listen or higher, 523 00:23:35,280 --> 00:23:37,480 Speaker 2: you're gonna have bigger cards at checkout. People are gonna 524 00:23:37,480 --> 00:23:39,480 Speaker 2: spend instead of spend sixty bucks, are going to spend 525 00:23:40,119 --> 00:23:43,280 Speaker 2: one hundred and twenty bucks yeah, or seventy five Yeah. 526 00:23:43,359 --> 00:23:45,800 Speaker 2: But they're like, this is you're going to get more 527 00:23:45,840 --> 00:23:49,600 Speaker 2: money by allowing us to partner with you and giving 528 00:23:49,640 --> 00:23:53,200 Speaker 2: your customers access to these beautiful, wonderful buy now pay 529 00:23:53,280 --> 00:23:54,639 Speaker 2: later abilities. 530 00:23:54,720 --> 00:23:54,920 Speaker 1: Yeah. 531 00:23:54,920 --> 00:23:57,359 Speaker 2: And at some points though, the piper is going to 532 00:23:57,440 --> 00:23:59,600 Speaker 2: have to be paid, right Like, at some point the 533 00:23:59,640 --> 00:24:00,800 Speaker 2: bill quite literally. 534 00:24:00,680 --> 00:24:01,199 Speaker 1: Is gonna come do. 535 00:24:01,720 --> 00:24:03,760 Speaker 2: And I think this is gonna end up getting millions 536 00:24:03,800 --> 00:24:06,159 Speaker 2: of folks into real trouble because what they're doing is 537 00:24:06,200 --> 00:24:08,680 Speaker 2: just front loading these purchases that they should have instead 538 00:24:08,880 --> 00:24:10,760 Speaker 2: waited to make until they had saved up enough to 539 00:24:10,840 --> 00:24:13,760 Speaker 2: actually be able to afford it. Essentially, this is it's 540 00:24:13,840 --> 00:24:16,160 Speaker 2: kind of like a way of time travel with your money, right, 541 00:24:16,200 --> 00:24:18,960 Speaker 2: Like you are pulling these purchases from the future to 542 00:24:19,480 --> 00:24:22,800 Speaker 2: present day, and you're just assuming that you're either going 543 00:24:22,880 --> 00:24:25,200 Speaker 2: to have more money off in the future to pay 544 00:24:25,240 --> 00:24:27,040 Speaker 2: this off you're gonna or you're assuming that you're gonna 545 00:24:27,040 --> 00:24:29,720 Speaker 2: have more discipline to actually stick with it, or you're 546 00:24:29,760 --> 00:24:31,800 Speaker 2: assuming that maybe in the future, I'm not gonna want 547 00:24:31,800 --> 00:24:33,880 Speaker 2: as much stuff and so I'll be able to tomorrow 548 00:24:33,880 --> 00:24:36,600 Speaker 2: pay for the things for today. But that's a false 549 00:24:36,600 --> 00:24:41,080 Speaker 2: assumption on all three of those accounts. There, you likely 550 00:24:41,320 --> 00:24:44,120 Speaker 2: like you're counting on the best case scenario happening, and 551 00:24:44,160 --> 00:24:46,080 Speaker 2: that puts you behind the a bom and to see 552 00:24:46,080 --> 00:24:49,040 Speaker 2: it everything you see twenty and thirty somethings who have 553 00:24:49,200 --> 00:24:51,639 Speaker 2: started using by now pay later. It's become a crutch. 554 00:24:51,920 --> 00:24:55,440 Speaker 2: They start using it regularly for all sorts of purchases, 555 00:24:55,720 --> 00:24:59,520 Speaker 2: whether it's clothing, new electronics, item travel, whatever it is, 556 00:25:00,080 --> 00:25:02,399 Speaker 2: and they just get they think of this as normal 557 00:25:02,440 --> 00:25:06,280 Speaker 2: now to pay for something in installments, and a lot 558 00:25:06,280 --> 00:25:09,600 Speaker 2: of them are overdoing those purchases, buying things that they 559 00:25:09,720 --> 00:25:12,440 Speaker 2: really truly can't afford. That's right, all right, dude, Let's 560 00:25:12,440 --> 00:25:15,639 Speaker 2: talk about housing, because if you're hoping that following interest 561 00:25:15,720 --> 00:25:19,480 Speaker 2: rates might induce more inventory in the Springs housing market, 562 00:25:19,520 --> 00:25:22,480 Speaker 2: you're not alone. We really could see more people willing 563 00:25:22,520 --> 00:25:25,240 Speaker 2: to list their homes as rates get closer to six percent, 564 00:25:25,240 --> 00:25:27,639 Speaker 2: because folks are saying, hey, at least it's it's not 565 00:25:27,720 --> 00:25:30,680 Speaker 2: eight percent. It's it's not like it was before. And 566 00:25:30,880 --> 00:25:33,719 Speaker 2: one tactic that did make sense for some home buyers 567 00:25:33,800 --> 00:25:37,480 Speaker 2: was to opt for an ARM and adjustable rate mortgage. 568 00:25:38,440 --> 00:25:40,400 Speaker 2: So what I did, actually the last, the first time 569 00:25:40,400 --> 00:25:43,639 Speaker 2: I've ever gotten an adjustable rate mortgage was when we 570 00:25:43,720 --> 00:25:46,600 Speaker 2: bought our house eighteen months ago. But why did you 571 00:25:46,640 --> 00:25:49,720 Speaker 2: opt for an ARM over that thirty year because the 572 00:25:49,800 --> 00:25:51,760 Speaker 2: difference in rate was significant? 573 00:25:51,760 --> 00:25:52,240 Speaker 1: Exactly. 574 00:25:52,359 --> 00:25:55,800 Speaker 2: Yeah, it only makes sense if you are getting a 575 00:25:55,840 --> 00:25:59,199 Speaker 2: superior rate. But here's the thing. New data today it 576 00:25:59,240 --> 00:26:01,920 Speaker 2: shows that almost nobody is getting a better deal by 577 00:26:02,080 --> 00:26:06,080 Speaker 2: opting for an ARM these days, So certainly can't hurt 578 00:26:06,080 --> 00:26:08,120 Speaker 2: to ask, But keep in mind, at a thirty year 579 00:26:08,119 --> 00:26:11,040 Speaker 2: fixed rate, they are looking like the best option for 580 00:26:11,200 --> 00:26:14,480 Speaker 2: most home buyers right now. That plus putting at least 581 00:26:14,480 --> 00:26:18,000 Speaker 2: twenty percent down to avoid PMI private mortgage insurance. 582 00:26:18,080 --> 00:26:19,359 Speaker 1: Although we know that this is a. 583 00:26:19,960 --> 00:26:23,600 Speaker 2: Tall ask, it's a tough requirement, it is what we 584 00:26:23,640 --> 00:26:25,560 Speaker 2: want to steer folks toward. Yeah, I think I was 585 00:26:25,600 --> 00:26:27,880 Speaker 2: always like, for a long time, Mat just knee jerk 586 00:26:28,080 --> 00:26:31,400 Speaker 2: against adjustable rate mortgages, and then I started to see 587 00:26:31,400 --> 00:26:33,320 Speaker 2: the nuance and I'm like, yeah, they can make sense 588 00:26:33,359 --> 00:26:36,000 Speaker 2: at times, depending on the terms, depending on how long 589 00:26:36,040 --> 00:26:38,200 Speaker 2: you're going to live in that home, and depending on 590 00:26:38,440 --> 00:26:41,960 Speaker 2: the rate decrease you're able to get by going with 591 00:26:42,000 --> 00:26:44,240 Speaker 2: an ARM instead of an adjustab rate. But you're right, 592 00:26:44,440 --> 00:26:48,600 Speaker 2: adjustable rate mortgages, because of the way mortgage rates flux 593 00:26:48,720 --> 00:26:51,560 Speaker 2: and change, adjustbory mortgages just starn't nearly as good of 594 00:26:51,640 --> 00:26:54,120 Speaker 2: a deal as they were a year ago. So fixed 595 00:26:54,160 --> 00:26:57,000 Speaker 2: rate mortgages again top of the heat. That's right, But 596 00:26:57,280 --> 00:26:59,160 Speaker 2: that's going to do it for this episode. Matt will 597 00:26:59,200 --> 00:27:00,639 Speaker 2: have show notes with Lee. Thanks to some of the 598 00:27:00,640 --> 00:27:03,879 Speaker 2: stuff that we mentioned on today's episode up on our 599 00:27:03,920 --> 00:27:06,320 Speaker 2: website at howtomoney dot com. All right, man, let's get 600 00:27:06,320 --> 00:27:08,399 Speaker 2: out of here until next time. Best friends out and 601 00:27:08,480 --> 00:27:09,920 Speaker 2: best friends out