WEBVTT - Friday Flight - The Wealth Effect, Christmas Returns, & BNPL IRL #771 0:00:00.080 --> 0:00:01.440 Welcome to How the Money. 0:00:01.480 --> 0:00:04.440 I'm Joel and I am Matt and today we're talking 0:00:04.559 --> 0:00:07.040 the wealth effect Christmas returns. 0:00:06.920 --> 0:00:28.639 And b in p L I r L. Yeah. And 0:00:28.680 --> 0:00:31.040 by the way, everyone saying a prayer for Joel. 0:00:30.840 --> 0:00:34.280 Because dude, it sounds like you've got something nasty over there. 0:00:33.960 --> 0:00:36.479 You're I think your voice is gonna gonna hold up 0:00:36.479 --> 0:00:36.720 for us. 0:00:37.200 --> 0:00:40.240 So no, this is our Friday flight. 0:00:40.360 --> 0:00:43.600 And yeah, Ben pl I r L will explain what 0:00:43.720 --> 0:00:46.520 all that means later on if you're. 0:00:46.000 --> 0:00:48.160 Not privy to the fact. But Joel, I got a quick, 0:00:48.280 --> 0:00:49.360 frugal or cheap for you. 0:00:49.880 --> 0:00:52.440 Uh. So the other day I took a jar of 0:00:52.720 --> 0:00:55.840 pennies to our local Kroger and uh because I was like, 0:00:55.840 --> 0:00:57.880 you know what, We've had this jar sitting around four forever. 0:00:58.120 --> 0:01:00.840 I'd actually sort of them out from like the quarters 0:01:00.880 --> 0:01:03.720 and stuff that we pay our kids allowance with sometimes 0:01:03.960 --> 0:01:07.560 for the different jobs. And so I finally took it 0:01:07.600 --> 0:01:09.120 to the grocery store and I was getting ready to 0:01:09.400 --> 0:01:12.080 dump it in the coin star and I thought, wait 0:01:12.120 --> 0:01:14.840 a minute, I don't want to pay this company a 0:01:14.920 --> 0:01:18.120 cut for the change that I have on hand, or 0:01:18.120 --> 0:01:20.240 do they charge like eight percent? It's like ten or 0:01:20.280 --> 0:01:24.520 eleven percent, and I thought, man, forget that. It's unless 0:01:24.600 --> 0:01:27.000 you opt for a gift card instead. 0:01:27.160 --> 0:01:27.840 Oh is it? 0:01:27.920 --> 0:01:30.160 I didn't look that that hard at it, but regardless, 0:01:30.200 --> 0:01:32.399 we needed some a few grocery items, so I thought, 0:01:32.480 --> 0:01:34.440 you know what I'll do. I'll just I'll buy some milk, 0:01:34.560 --> 0:01:37.920 some eggs, get some bananas, and I'll pay for it 0:01:38.120 --> 0:01:40.360 using pennies at the register. I'm not going to put 0:01:40.360 --> 0:01:42.560 the burden on the cashier. I was going to go 0:01:42.600 --> 0:01:45.440 through the self checkout because they've got like a little cup. 0:01:45.720 --> 0:01:47.240 I thought to kind of make it easy. So in 0:01:47.280 --> 0:01:51.720 my mind, it's like a self administered like a manual coinstar, 0:01:52.040 --> 0:01:54.920 where I get to reap off the benefit from it. 0:01:55.640 --> 0:02:00.560 Here's the downside. It didn't really have what I envisioned. 0:02:00.560 --> 0:02:02.160 I thought there was like a little bowl for you 0:02:02.240 --> 0:02:03.800 just to kind of like drop all the change, and no, 0:02:04.320 --> 0:02:06.480 I had to kind of like take stacks of pennies 0:02:06.480 --> 0:02:08.519 and run them across this little slot for them to 0:02:08.560 --> 0:02:11.520 fall down, and it kept getting jammed, and no joke, 0:02:11.680 --> 0:02:14.680 it took me like at least ten extra minutes to 0:02:14.960 --> 0:02:18.639 pay for my stupid my purchase with the pennies. And 0:02:18.880 --> 0:02:21.080 when I actually did the math. I'm like, wait a minute, 0:02:21.200 --> 0:02:25.359 I saved like a dollar plus just give myself. 0:02:25.120 --> 0:02:28.160 A massive amount of headache. And so I'm curious, Joel, 0:02:28.160 --> 0:02:29.880 what are your thoughts? Was this frugal or cheap? 0:02:29.919 --> 0:02:31.760 Sounds cheap math? I think he answered your own question 0:02:31.960 --> 0:02:35.480 majorly cheap. Move on, Like it wasn't even wasted time 0:02:35.520 --> 0:02:37.160 and effort. It was like a minute And I'm like, 0:02:37.280 --> 0:02:38.240 what am I doing? 0:02:38.280 --> 0:02:38.680 This is? 0:02:38.919 --> 0:02:41.040 This is so dumb. But at the same time, what 0:02:41.040 --> 0:02:42.680 are you gonna do with all these pennies? Like you've 0:02:42.720 --> 0:02:45.280 got them on hand and you're gonna throw it away 0:02:45.360 --> 0:02:48.800 like it's it's literally money. But pennies, man, they're just 0:02:48.880 --> 0:02:51.560 they're worth I mean, they're literally worth less than what 0:02:51.720 --> 0:02:53.480 it cost to actually make it penny. I think it 0:02:53.560 --> 0:02:55.760 costs like three cents. Penny should be abolished. 0:02:55.840 --> 0:02:56.480 We all know that. 0:02:57.160 --> 0:03:01.040 It's just no one's had the fortitude to stand up 0:03:01.040 --> 0:03:04.920 to big Penny to kick him out. But yeah, they 0:03:04.919 --> 0:03:08.320 got a strong lobby. Maybe next time, check out the 0:03:08.639 --> 0:03:10.799 coinstar machine and see if you can get I think 0:03:10.840 --> 0:03:13.040 usually you can get like an Amazon gift card, and 0:03:13.080 --> 0:03:14.320 then I think so and then. 0:03:14.240 --> 0:03:16.840 You don't pay anything. We use Amazon that's for sure. 0:03:16.960 --> 0:03:18.919 Yeah, so that that'd be a better way to go, 0:03:19.400 --> 0:03:21.320 because that sounds like a stressful situation. 0:03:21.480 --> 0:03:22.560 It sucked, Yeah, not. 0:03:22.560 --> 0:03:25.200 Worth the jamming. And then there's somebody there who was 0:03:25.240 --> 0:03:27.440 like trying to get it unjammed. I just felt bad 0:03:27.440 --> 0:03:29.560 for them. Yeah, I'm just like, I'm sorry, I'm wasting 0:03:30.080 --> 0:03:32.640 all of our time here, and yeah, don't don't be 0:03:32.720 --> 0:03:35.240 like me. Yeah, I'm sure they were like, this guy sucks, 0:03:35.400 --> 0:03:37.840 he doesn't come back, but this guy has a money podcast. 0:03:37.880 --> 0:03:40.720 That's right, that's right. All right, let's move on. Let's 0:03:40.720 --> 0:03:42.680 get to the Friday Flight assembly of stories we found 0:03:42.680 --> 0:03:45.720 interesting this week, and let's talk about four OL and 0:03:45.760 --> 0:03:48.840 kse for a second. There's there's another reason to not 0:03:48.880 --> 0:03:51.000 look at your four OAL and K statement now because 0:03:51.000 --> 0:03:53.200 it's down and you're tempted to fiddle with your investments. 0:03:53.440 --> 0:03:56.440 It's it's because your four and K is up and 0:03:56.480 --> 0:03:59.600 you might be tempted to to spend more money because 0:03:59.640 --> 0:04:02.400 of it. Right, not even by taking money out of 0:04:02.440 --> 0:04:05.640 your tax advantage account either. The truth is, if you 0:04:05.720 --> 0:04:08.560 invested mostly in stocks, it likely you likely saw your 0:04:08.560 --> 0:04:12.119 portfolio balloon by twenty percent or more in twenty twenty three. Sure, 0:04:12.160 --> 0:04:15.880 which feels good and there is no reason it shouldn't 0:04:15.880 --> 0:04:18.040 put a smile on your face. But there's something you 0:04:18.080 --> 0:04:19.799 need to watch out for. It's called the wealth effect. 0:04:20.160 --> 0:04:23.640 It's a behavioral economics term which means that folks tend 0:04:23.640 --> 0:04:26.720 to spend more as the value of their investments goes up, 0:04:27.080 --> 0:04:29.599 even if they don't have liquid access to the gains. 0:04:30.040 --> 0:04:32.160 It can lead you to think, h I got more 0:04:32.200 --> 0:04:34.480 money to spend even though you don't really, all of 0:04:34.520 --> 0:04:37.039 a sudden you feel rich. Yeah, just because your investments 0:04:37.160 --> 0:04:38.960 go up and value don't mean that you've got more 0:04:39.080 --> 0:04:43.559 discretionary income. You've got more long term income to spend 0:04:43.600 --> 0:04:45.760 off in the future. But this isn't money that you 0:04:45.839 --> 0:04:47.960 want to touch right now. And if you take this 0:04:48.400 --> 0:04:50.880 like too far, the wealth of that can result in 0:04:51.000 --> 0:04:51.520 taking on. 0:04:51.600 --> 0:04:54.560 Debt because of that perceived. 0:04:54.680 --> 0:04:57.719 Growth and your net worth, well, it's not perceived like 0:04:57.880 --> 0:04:59.440 your net worth is going up, but that does not 0:04:59.480 --> 0:05:01.160 have an impact on what you have now. 0:05:01.440 --> 0:05:01.640 You know. 0:05:01.680 --> 0:05:03.800 The same thing happens for a lot of folks, by 0:05:03.839 --> 0:05:05.919 the way, when their home value increases just because you 0:05:05.960 --> 0:05:08.640 bought a house back in twenty nineteen and it's now 0:05:08.920 --> 0:05:11.320 worth fifty percent more than what it is that you 0:05:11.360 --> 0:05:13.880 paid for. That doesn't mean you should start spending like 0:05:13.920 --> 0:05:17.400 there's no tomorrow. And simultaneously, we're not saying that you 0:05:17.440 --> 0:05:20.960 shouldn't enjoy your money, but just be cognizant of this 0:05:21.040 --> 0:05:25.560 potential brain wiring issue that's just lurking beneath the service 0:05:25.760 --> 0:05:28.040 that might prompt you to spend in ways that you 0:05:28.080 --> 0:05:28.560 wouldn't have. 0:05:28.680 --> 0:05:29.880 Let's say, after. 0:05:29.600 --> 0:05:31.479 Twenty twenty two when the market was down, think about 0:05:31.520 --> 0:05:34.400 how you felt back then, not how you feel right 0:05:34.440 --> 0:05:37.960 now after seeing the market do well last year. We 0:05:38.000 --> 0:05:40.080 are still trying to build wealth over the long haul 0:05:40.120 --> 0:05:42.839 in a healthy and sustainable way. 0:05:42.960 --> 0:05:43.159 Yep. 0:05:43.200 --> 0:05:46.560 And I think that it's just important to be aware 0:05:46.680 --> 0:05:49.080 of our behavioral tendencies, and this is one of them. 0:05:49.200 --> 0:05:50.839 All right, let's talk about student loans for a second. 0:05:50.839 --> 0:05:51.360 Student loans. 0:05:51.560 --> 0:05:53.640 They were such a regular part of our show during 0:05:53.680 --> 0:05:56.320 the pandemic and as the new save plan was rolling out, 0:05:56.520 --> 0:05:59.200 and we haven't really talked about them much since the 0:05:59.320 --> 0:06:02.800 payments started back in the fall, though. And economists they 0:06:02.800 --> 0:06:05.719 were worried about the payment restart. They thought that it 0:06:05.800 --> 0:06:07.839 was going to kind of lead to some tightening in 0:06:07.880 --> 0:06:10.719 the economy. But oddly enough, we just haven't seen it 0:06:10.720 --> 0:06:13.960 play out like that. Why it could be that folks 0:06:13.960 --> 0:06:17.279 who truly can't afford that student loan payment simply aren't paying, 0:06:17.520 --> 0:06:20.240 and so something like four and ten borrowers haven't paid 0:06:20.240 --> 0:06:24.679 anything since the payment restart happened in October. So should 0:06:24.760 --> 0:06:27.680 you pay your student loan bill? We would say, if 0:06:27.680 --> 0:06:30.960 you can afford to pay on it, yes, but also 0:06:31.120 --> 0:06:34.160 know that even though payments have restarted, there are still 0:06:34.200 --> 0:06:36.640 many months left. We're not paying on your loans is 0:06:36.720 --> 0:06:39.240 not going to get you into trouble. It's what's known 0:06:39.360 --> 0:06:42.400 is like this on ramp timeframe, and so this coming 0:06:42.480 --> 0:06:45.920 fall is when people are going to actually be held 0:06:45.920 --> 0:06:48.280 accountable for not paying their student loans. That's when it's 0:06:48.279 --> 0:06:50.040 going to be reported to the credit bureaus. That's right, 0:06:50.040 --> 0:06:52.320 That's when that'll resume. So if you have to prioritize 0:06:52.360 --> 0:06:54.840 the other financial goals for the time being, don't feel 0:06:54.880 --> 0:06:57.880 bad about doing so. But it was interesting to see 0:06:57.920 --> 0:07:00.960 I think that such a large section people are not 0:07:01.120 --> 0:07:04.320 paying on their student loder still, But I guess I'm 0:07:04.320 --> 0:07:07.480 also not surprised to either. Yeah, yeah, I mean, I 0:07:07.520 --> 0:07:09.479 think what's key is sort of what you said, which 0:07:09.520 --> 0:07:11.320 is like, hey, this is death that you took on. 0:07:11.440 --> 0:07:13.720 So it is even though it's not necessarily that it 0:07:13.800 --> 0:07:16.280 totally isn't being reported right now to the credit viewers. 0:07:16.320 --> 0:07:19.000 That doesn't necessarily mean that you don't owe it. But 0:07:19.080 --> 0:07:21.040 the good news is is down the road it is 0:07:21.080 --> 0:07:23.520 going to be dropping from ten percent of your discretionary 0:07:23.560 --> 0:07:26.200 income down to five percent. So that's some relief that 0:07:26.240 --> 0:07:28.760 you can look forward to sure next summer. And by 0:07:28.760 --> 0:07:31.080 the way, if maybe you've got a more complicated situation 0:07:31.160 --> 0:07:33.320 and you need some help figuring out how to proceed 0:07:33.440 --> 0:07:36.600 with your student loans, this might be an instance where 0:07:36.600 --> 0:07:39.000 you might want to reach out to a pro over 0:07:39.120 --> 0:07:41.920 at Student Loan Planner. We've actually got an article over 0:07:41.960 --> 0:07:44.080 on the website that'll help you to understand whether or 0:07:44.120 --> 0:07:46.600 not you're a good candidate to consider going with somebody 0:07:46.600 --> 0:07:49.720 who can kind of walk you through a more complicated 0:07:49.800 --> 0:07:53.080 student loan payment process. And it makes more sense for 0:07:53.080 --> 0:07:55.960 people who have higher amounts of student loan yet, right, 0:07:56.000 --> 0:07:57.600 So if you're one of those folks who's like, I 0:07:57.600 --> 0:07:59.400 don't have like ten grand, I've got like fifty to 0:07:59.480 --> 0:08:01.800 sixty grand, then it might make sense to talk to 0:08:01.840 --> 0:08:05.280 a as well as those more complicated income driven repayment 0:08:05.320 --> 0:08:07.640 plans if you're trying to qualify and you're not sure 0:08:07.680 --> 0:08:12.120 what counts. Those are all similar situations that might require 0:08:12.160 --> 0:08:14.360 a professional. But on the note of student loans, on 0:08:14.400 --> 0:08:18.120 the note of paying for college, one new perk of 0:08:18.160 --> 0:08:21.000 the Secure Act two point zero it actually went live 0:08:21.000 --> 0:08:24.200 this week. You can now officially roll five twenty nine 0:08:24.280 --> 0:08:28.720 money into a roth IRA. So back before this saw passed, 0:08:28.960 --> 0:08:33.360 neither of us were really excited about five twenty nine plans. 0:08:33.360 --> 0:08:35.520 There were just so many other routes that you should 0:08:35.520 --> 0:08:39.559 take before saving, specifically for your kids college. The example 0:08:39.679 --> 0:08:41.160 we would always give is like make sure that you're 0:08:41.520 --> 0:08:44.160 putting your own oxygen mask on before you're trying to 0:08:44.360 --> 0:08:46.720 help your kid or help those around you. Basically, there 0:08:46.800 --> 0:08:49.319 is an order, a financial order of operations. 0:08:49.360 --> 0:08:50.200 We called it. 0:08:50.200 --> 0:08:51.640 The money Gears will make sure to link to that 0:08:51.679 --> 0:08:53.800 in our show notes as well. The five to twenty 0:08:53.880 --> 0:08:56.920 nine plane just falls way down on the list. Yes, exactly, 0:08:57.000 --> 0:09:00.520 and that's still true. But with this added flexibility, a 0:09:00.559 --> 0:09:03.560 significant chunk of money that you do funnel into a 0:09:03.640 --> 0:09:06.320 five twenty nine account for your kids, it can actually 0:09:06.320 --> 0:09:09.280 be rolled into a roth ira for their retirement years. 0:09:09.640 --> 0:09:12.760 It's supposed to basically be a relief for folks who 0:09:12.920 --> 0:09:14.680 just oversaved, who overdid it. 0:09:15.000 --> 0:09:16.920 On the saving for college front. 0:09:17.000 --> 0:09:19.600 But crafty listeners out there can use this sort of 0:09:19.600 --> 0:09:21.680 a think of it almost as like a loophole to 0:09:21.800 --> 0:09:24.920 start helping your kids do invest for decades down their road, 0:09:25.160 --> 0:09:29.079 even earlier, in particular if they don't end up using those. 0:09:28.720 --> 0:09:30.600 Dollars for higher education. 0:09:31.040 --> 0:09:33.040 And we've actually got a new article up on the 0:09:33.120 --> 0:09:35.520 site and you can go there for all the nuance 0:09:35.559 --> 0:09:37.559 and all the particulars that need to keep in mind. 0:09:37.640 --> 0:09:40.040 There's a lot of detail. There's a five year rule, 0:09:40.080 --> 0:09:42.320 there's an aging year process. You got to age this 0:09:42.400 --> 0:09:44.600 money man. That's right, fine cheese. 0:09:44.600 --> 0:09:46.760 So even though you can do it starting this year, 0:09:46.800 --> 0:09:48.679 there are a lot of people who won't be ready 0:09:48.679 --> 0:09:51.720 to do it this year. But it is definitely it 0:09:51.760 --> 0:09:54.280 makes five twenty nine plans look a whole lot more 0:09:54.320 --> 0:09:58.439 attractive because they have greater flexibility now. And Matt on 0:09:58.520 --> 0:10:02.040 the note of school, the FASTS launch, did you see that, Yeah, 0:10:02.080 --> 0:10:05.400 except for it basically just made people angry. It was 0:10:05.559 --> 0:10:09.640 just the worst launch of all time. And so I guess. 0:10:09.880 --> 0:10:12.559 We had Tina the fafts of Guru on the show 0:10:12.679 --> 0:10:15.040 Can to Steal, Yeah, a couple of months ago, and 0:10:15.960 --> 0:10:17.680 you know we were talking about, oh yeah, hey, this 0:10:17.800 --> 0:10:19.959 new shorter FAFTSA is gonna make it easier for a 0:10:20.000 --> 0:10:20.400 lot of people. 0:10:21.320 --> 0:10:23.920 It should be great. That's what we were promised, not 0:10:23.960 --> 0:10:25.920 from her but from the higher ups. 0:10:25.960 --> 0:10:29.200 Well, and the government had three years to get this 0:10:29.320 --> 0:10:32.360 right and they still botched it. So hopefully they're gonna 0:10:32.400 --> 0:10:33.600 get the kinks worked out. 0:10:33.600 --> 0:10:34.480 Will report back. 0:10:34.840 --> 0:10:39.600 But yes, you can technically fill out this now short 0:10:39.679 --> 0:10:40.640 shortened fats of form. 0:10:40.720 --> 0:10:42.480 Now you can try to. You can try to. 0:10:42.880 --> 0:10:44.560 Yeah, but I would just say, don't pull your hair out, 0:10:44.559 --> 0:10:46.680 don't go crazy, just wait a few weeks. 0:10:46.720 --> 0:10:48.400 Still get things sorted out totally, all right, dud. 0:10:48.440 --> 0:10:51.160 Let's talk about Christmas returns, because now that the dust 0:10:51.400 --> 0:10:54.640 has settled from Christmas in the holidays, it's about time 0:10:54.679 --> 0:10:58.439 to start making some of those returns. Listener Mackenzie, she 0:10:58.520 --> 0:11:01.840 actually emailed us and she sold a few of her 0:11:01.880 --> 0:11:05.000 own wanted gift cards via I think she specifically used 0:11:05.000 --> 0:11:08.240 card cash dot com. So if you're listening, you've got 0:11:08.280 --> 0:11:11.120 some gift cards that you don't love. Don't let them 0:11:11.160 --> 0:11:13.720 get buried in the bottom of your junk drawer until 0:11:13.800 --> 0:11:18.080 they expire or get accidentally thrown away. Get rid of 0:11:18.120 --> 0:11:22.600 them in just eroads their values, yes exactly. Unlove those 0:11:22.600 --> 0:11:25.320 things and turn those gift cards into actual dollars that 0:11:25.360 --> 0:11:29.040 you can spend today on things that you might value 0:11:29.040 --> 0:11:32.720 a little more. And if it's actual physical goods that 0:11:32.720 --> 0:11:35.080 you received that you don't plan on keeping, make a 0:11:35.120 --> 0:11:38.280 plan to do those returns soon. And although it's going 0:11:38.360 --> 0:11:40.040 to be easier to do an online return and just 0:11:40.080 --> 0:11:42.319 mail those items back, know that it's likely going to 0:11:42.400 --> 0:11:45.520 cost you more if you're wanting to go that route 0:11:45.559 --> 0:11:47.680 and just drop it off at the UPS store or 0:11:47.720 --> 0:11:51.800 wherever it is that you make returns. Instead, consider returning 0:11:51.960 --> 0:11:53.840 in store because that's going to help you to avoid 0:11:53.880 --> 0:11:58.480 those quote unquote return or restocking charges that are becoming 0:11:58.600 --> 0:12:00.719 more and more popular. Let alone not to mention the 0:12:00.760 --> 0:12:03.439 actual shipping costs if that's something that you. 0:12:03.360 --> 0:12:03.920 Have to pay for. 0:12:04.360 --> 0:12:06.160 But while you might have until the end of the 0:12:06.200 --> 0:12:08.320 month to make returns at some of the stores, other 0:12:08.400 --> 0:12:12.160 Christmas return policies actually and mid month, so make sure 0:12:12.200 --> 0:12:14.160 that you are reading the fine detail. Yeah, make a 0:12:14.200 --> 0:12:16.920 plan this weekend to go make those returns, and you're right, man, 0:12:16.960 --> 0:12:19.720 I mean they just those return policies are getting more stringent. 0:12:19.760 --> 0:12:23.360 It makes sense because it costs the retailers meaningful amounts 0:12:23.400 --> 0:12:27.319 of money to process those returns. It caught shipping's not free. 0:12:27.720 --> 0:12:29.319 It wasn't free when it got sent to you, and 0:12:29.360 --> 0:12:31.280 it's not free when you send it back to them. 0:12:31.679 --> 0:12:32.360 So I'm not. 0:12:32.440 --> 0:12:35.120 Mad about the fact that they're charging for that, but 0:12:35.559 --> 0:12:37.640 people need to be aware of that because it might 0:12:38.000 --> 0:12:41.160 change how they decide to make their return. We've got 0:12:41.160 --> 0:12:44.760 more to get to on this episode, including can you 0:12:44.880 --> 0:12:47.880 lease a used car? Turns out you might be able 0:12:47.920 --> 0:12:50.520 to pretty soon. We'll get to that and more right 0:12:50.559 --> 0:12:51.000 after this. 0:13:00.120 --> 0:13:01.280 Back from the break that's keep. 0:13:01.120 --> 0:13:04.120 This Friday flight train rolling and Joel, of course, you 0:13:04.200 --> 0:13:07.160 know that is now time for our ludicrous headline of 0:13:07.200 --> 0:13:10.040 the week. This one is from the journal Wall Street Journal, 0:13:10.360 --> 0:13:14.000 and the headline reads the new fitness gadgets that promise 0:13:14.080 --> 0:13:17.559 to change your life, which is it's kind of fun 0:13:17.640 --> 0:13:20.480 because you and I both have gotten more into fitness recently, 0:13:20.559 --> 0:13:21.600 so I think we were both like. 0:13:21.679 --> 0:13:24.480 Oh, let's see, let's see what's out there. 0:13:24.880 --> 0:13:28.800 It's funny specifically because some of the things that they're highlighting, 0:13:29.360 --> 0:13:32.520 like the gadgets, it's they're silly and they're crazy expensive. 0:13:32.840 --> 0:13:35.679 These different pieces of technology that are finding their way 0:13:35.679 --> 0:13:38.280 into our lives, These different products that are hitting the market. 0:13:38.600 --> 0:13:40.480 So for instance, there is one that was like a 0:13:41.200 --> 0:13:42.280 sweat lost tracker. 0:13:43.440 --> 0:13:46.920 Another product that they mentioned were adjustable compression leggings. Yeah, 0:13:46.960 --> 0:13:49.560 that one the one level of compression. Sorry, it's not 0:13:49.600 --> 0:13:51.000 doing it anymore. You need to be able to do 0:13:51.040 --> 0:13:53.120 It's kind of like the Reebok pumps. You can change it, 0:13:53.240 --> 0:13:55.000 dial it up a little bit. And there was also 0:13:55.040 --> 0:13:59.520 this like six thousand dollars stationary bike that vibrates. It's 0:13:59.520 --> 0:14:04.680 supposed to meant to mimic bicycling down a cobblestone street, 0:14:04.840 --> 0:14:07.760 you know, to get that real life experience like you 0:14:07.800 --> 0:14:09.560 wanted to at home when you're getting. 0:14:09.360 --> 0:14:11.160 A work out. It's it's ridiculous. 0:14:11.160 --> 0:14:15.160 I certainly plan to continue to exercise more in twenty 0:14:15.200 --> 0:14:17.439 twenty four, or at least maintaining what I did last year, 0:14:17.440 --> 0:14:19.920 but I don't plan on purchasing any of these items 0:14:20.040 --> 0:14:22.720 that purport to help me. I think there's nothing wrong. 0:14:23.040 --> 0:14:27.440 Let's say with buying a normal, used, perhaps stationary bike 0:14:27.640 --> 0:14:29.920 to have at home, or paying to join a gym 0:14:30.240 --> 0:14:32.040 that you pay a monthly fee for. But if you 0:14:32.080 --> 0:14:35.440 go too far down the gear rabbit hole, I think 0:14:35.480 --> 0:14:38.440 you might find yourself with less cash on hand, and 0:14:38.840 --> 0:14:42.000 simultaneously you may not be any closer to being fit. 0:14:42.120 --> 0:14:42.320 Yeah. 0:14:42.320 --> 0:14:44.280 I mean a lot of those gadgets were just kind 0:14:44.280 --> 0:14:47.320 of ridiculous. There was one it almost looked like an 0:14:47.360 --> 0:14:49.440 ab roller, but it was like seven hundred and fifty dollars. 0:14:49.440 --> 0:14:51.760 They claimed to be a total body workout and I'm like, 0:14:51.800 --> 0:14:55.720 how is that possible? And so yeah, it just thinking 0:14:55.760 --> 0:14:58.960 that the new fitness item is what's going to help 0:14:58.960 --> 0:14:59.680 you get in shape. 0:15:00.000 --> 0:15:01.320 No, no, no, no, it's about. 0:15:01.040 --> 0:15:04.560 You and actually following through and finding a fitness regimen 0:15:04.600 --> 0:15:07.160 that you can keep doing through thick and through thin, 0:15:07.240 --> 0:15:07.920 throughout the year. 0:15:08.000 --> 0:15:08.520 Sure, it's not. 0:15:08.520 --> 0:15:10.640 About getting the right gadget. And Matt, this is one 0:15:10.640 --> 0:15:13.200 of those instances where we see some parallels between physical 0:15:13.200 --> 0:15:16.080 health and financial health. We're oftentimes looking for the easy 0:15:16.160 --> 0:15:18.920 button that's going to provide us with all the results. 0:15:19.040 --> 0:15:20.920 Oh yeah, but without all the effort, right, I mean 0:15:20.920 --> 0:15:23.080 that's when you if you were to boiler down. That's 0:15:23.120 --> 0:15:26.160 what I want, but it just that's not how life works, 0:15:26.320 --> 0:15:27.880 and we want to see that progress in a fraction 0:15:27.960 --> 0:15:30.920 of the time that's actually necessary to build up a durable, 0:15:30.920 --> 0:15:33.960 healthy foundation. So just like we're tempted to buy gadgets 0:15:33.960 --> 0:15:36.360 to get healthy, we also might be tempted into thinking 0:15:36.400 --> 0:15:40.880 that joining an investing club or shocking money into cryptocurrency 0:15:41.160 --> 0:15:43.960 is to ticket to building wealth. It's like, hey, listen, 0:15:44.000 --> 0:15:47.440 I don't have time to wait for ten percent annualized 0:15:47.520 --> 0:15:49.920 compounding returns in the S and P I got to 0:15:49.960 --> 0:15:52.400 strike it rich much more quickly. I got to take 0:15:53.320 --> 0:15:56.840 bigger risks. Well, that's going to lead to heartache for 0:15:56.880 --> 0:15:59.600 most people. And someone might look at last year's S 0:15:59.640 --> 0:16:01.680 and P FI five hundred and they think, wow, dang, 0:16:01.800 --> 0:16:04.120 I just missed out on twenty four percent returns. But 0:16:04.120 --> 0:16:06.800 those returns didn't happen on December thirty first. They took 0:16:06.840 --> 0:16:09.280 place over the three hundred and sixty five previous days 0:16:09.600 --> 0:16:12.800 that slow and steady investors kept at it regardless of 0:16:12.800 --> 0:16:15.480 what the market was doing. There's no easy button. Yeah, 0:16:15.560 --> 0:16:18.720 we can be so obsessed and fixated on the end 0:16:18.760 --> 0:16:21.600 result as opposed to knowing like. 0:16:21.520 --> 0:16:23.960 The process that it takes to get there, right. 0:16:23.880 --> 0:16:27.160 Like the hours and days of sweat and denying your 0:16:27.160 --> 0:16:29.360 self dessert or or you know, when it comes to 0:16:29.360 --> 0:16:32.200 physical fitness, but when it comes to investing, sacrifice that's 0:16:32.200 --> 0:16:34.920 involved with saying no to purchases and socking that money 0:16:34.920 --> 0:16:37.880 away into those those tax advantage retirement accounts. The small 0:16:37.880 --> 0:16:40.520 things like, hey, literally, what if it's a new year. 0:16:40.840 --> 0:16:42.680 You go into your four oh one K, the back 0:16:42.760 --> 0:16:44.280 end of your four oh on and K, and you 0:16:44.320 --> 0:16:47.880 increase your contributions by one percent. Maybe you're at seven percent, 0:16:48.080 --> 0:16:50.000 maybe you're at four percent right now, but if you 0:16:50.000 --> 0:16:52.240 increase it by one percent, it seems like a small move, 0:16:52.480 --> 0:16:54.000 but it ends up being a really big move that's 0:16:54.040 --> 0:16:56.680 going to help you out and help you just build 0:16:56.720 --> 0:16:59.280 more wealth in the coming months and years. And if 0:16:59.320 --> 0:17:02.240 you are kind of new to investing, we have a 0:17:02.280 --> 0:17:05.119 beginner's guide of how to invest. We'll link to that 0:17:05.240 --> 0:17:07.760 article in our show notes. Matt, let's talk about cars 0:17:07.760 --> 0:17:09.760 for a second. We've always said, you and I have 0:17:09.800 --> 0:17:12.560 always said that leasing a car is like lighting money 0:17:12.560 --> 0:17:15.119 on fire, like it's it's just a horrible idea. 0:17:15.240 --> 0:17:15.960 Yeah, pretty much. 0:17:16.000 --> 0:17:17.879 I don't like money on fire and I don't lease cars, 0:17:18.480 --> 0:17:20.440 but what if you could lease a used car? 0:17:20.480 --> 0:17:22.600 Would that be better? Maybe? 0:17:23.119 --> 0:17:25.399 Honda and Accura, it turns out, are going down this 0:17:25.560 --> 0:17:30.240 path of leasing generally used, certified pre owned cars for 0:17:30.800 --> 0:17:34.280 less money in order to lure in younger drivers. I 0:17:34.400 --> 0:17:36.400 kind of sort of like it because leasing a four 0:17:36.520 --> 0:17:39.040 year old Honda that's in great shape is a better 0:17:39.080 --> 0:17:41.440 financial move than leasing a brand new Honda Cord or 0:17:41.480 --> 0:17:43.280 something or something like that. It's a better option than 0:17:43.359 --> 0:17:46.480 leasing something bright new because like, basically what a lease 0:17:46.680 --> 0:17:47.200 is you. 0:17:47.200 --> 0:17:50.720 Are paying for depreciation. And when you have a brand new. 0:17:50.680 --> 0:17:54.800 Vehicle, guess what those are the vehicles that depreciate the fastest. Yeah, So, like, 0:17:54.920 --> 0:17:57.240 is it a card depreciates fifty percent within the first 0:17:57.320 --> 0:18:00.400 five years, ten percent just from driving it off the lot, 0:18:00.400 --> 0:18:03.200 and there remaining remaining forty percent basically over the next 0:18:03.359 --> 0:18:04.240 four years, I guess. 0:18:04.720 --> 0:18:05.720 But just keep that in mind. 0:18:05.960 --> 0:18:08.600 While it's not our favorite thing, it is better than 0:18:08.840 --> 0:18:11.280