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Speaker 1: Welcome to How to Money. I'm Joel and I am Matt,

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Speaker 1: and today we're answering your listener questions.

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Speaker 2: Jill, you know what I love is that everyone knew

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Speaker 2: exactly what to expect here Monday morning, from how to Money.

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Speaker 1: We've got listen to questions to get to Hope you're

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Speaker 1: enjoying a nice cup of coffee or walk around your

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Speaker 1: neighborhood while you're listening to us.

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Speaker 2: While I just shouted in your ear, I'm sorry. I'm

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Speaker 2: sorry for that. I see, I'm trying to tone it down.

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Speaker 2: Oh yeah, talk a little nice and contra, create a

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Speaker 2: nice rhythm, repeat some affirmations. You are smart, you will

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Speaker 2: conquer today.

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Speaker 1: You got this?

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Speaker 2: Would you do some ASMR affirmation podcast readings for our listeners?

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Speaker 1: You know I'd consider it.

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Speaker 2: Uh No, we do have some great money financial topics

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Speaker 2: to get to. Today. A listener is asking whether or

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Speaker 2: not she could essentially use her roth ira as an

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Speaker 2: emergency fund. We are going to cover buying out a lease.

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Speaker 2: We're gonna provide some financial advice for new graduates. All

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Speaker 2: of that plus more today, Buddy, during our ask how

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Speaker 2: to Money, you.

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Speaker 1: Said buying out a lease it means a car lease right, car,

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Speaker 1: least specifically, man, things have changed quite a bit on

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Speaker 1: that front. We don't love the idea of leasing a car,

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Speaker 1: but if you did lease a car and the lease

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Speaker 1: is coming to an end, there's a lot to think

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Speaker 1: through on that front. So we'll get to that and more.

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Speaker 1: But first off, Mat, I just want to mention. We

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Speaker 1: talk about subscriptions all the time and the proliferation of

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Speaker 1: said products, but who realized that a food chain I

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Speaker 1: think they're nationwide is now getting in on the action.

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Speaker 1: Chuck E Cheese, bro Chuck E Cheese.

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Speaker 2: I assume you're gonna say Panera. That's when my mind

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Speaker 2: went to when you said a nationwide change.

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Speaker 1: Well, I think they did have something like like a

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Speaker 1: coffee subscription or something. Oh, I think we talked about

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Speaker 1: that a couple of years ago. Yeah, but this, I

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Speaker 1: believe there's three tiers chunky cheese, that's what we call

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Speaker 1: it in high school. And I think you can spend

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Speaker 1: up to thirty dollars a month on a Chuck E

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Speaker 1: Cheese subscription which offers you like discounted pizzas and three tickets.

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Speaker 2: Is it a subscription or is it a membership?

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Speaker 1: I get it's the same, right, what's the difference?

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Speaker 2: Language matters?

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Speaker 1: Okay, they sound the same to me.

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Speaker 2: I guess when you say subscription, it does sound slightly

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Speaker 2: more ridiculous. But if it's not unlike like I like

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Speaker 2: we have a membership to six Flags like six Flags

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Speaker 2: slash Whitewater because those aren't comparable. You pay once and

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Speaker 2: then you can go as many to I have a

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Speaker 2: membership to Costco as many times as you want. I

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Speaker 2: guess you could call it you you have a Costco subscription. Well,

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Speaker 2: I would say if that's a form of local entertainment,

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Speaker 2: that and you've got a bunch of kids, or at

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Speaker 2: least one or two, and that's something you want to do.

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Speaker 1: They just love the ball pit.

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Speaker 2: You got to run the numbers.

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Speaker 3: Man.

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Speaker 2: If the numbers make sense, I'm all for it. It

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Speaker 2: makes me think of it, like, do they sell subscriptions

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Speaker 2: or memberships at the like the Jumpy trampoline place? Oh? Yeah,

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Speaker 2: I think they do. They see that's something more like

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Speaker 2: a rock climbing gym. That's something that we've considered at

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Speaker 2: least membership.

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Speaker 1: Yeah.

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Speaker 2: I don't. I don't have a Gill. I don't have

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Speaker 2: a CrossFit subscription. Joel, although it does feel like it

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Speaker 2: because it just automatically deducts. Yeah, but yeah, okay, maybe

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Speaker 2: you're changing my mind.

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Speaker 1: I don't know. It's hard to know what's what's the

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Speaker 1: difference between a membership and a subscription because they kind

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Speaker 1: of the lines are bleeding here, and at least in

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Speaker 1: when we're talking about Chuck E Cheese, I don't know.

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Speaker 1: You'd have to run the numbers. How often would you

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Speaker 1: have to go there in order to really make this

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Speaker 1: thing pay off?

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Speaker 2: Yeah, you would want it to pay off, And so

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Speaker 2: you're asking what is the difference. One of the differences

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Speaker 2: in my mind as I think through the two, is

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Speaker 2: that a membership is intentional and a subscription feels like

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Speaker 2: something that is happening to you. Okay, right, And so

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Speaker 2: that's why I said, like, sometimes it feels like my

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Speaker 2: gym membership is a subscription because it kind of happens

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Speaker 2: to me. I see the charge show up on my

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Speaker 2: credit card statement. But that being said, it's something I

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Speaker 2: very much intentionally do, like freaking three times a week.

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Speaker 2: I am excited to be there. But if there is

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Speaker 2: something that you're not excited about and you're still getting

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Speaker 2: billed every single month, like that's when it psychologically, or

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Speaker 2: at least in our culture today, that's when it feels

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Speaker 2: like it starts veering into subscription terracle. Its something that

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Speaker 2: you are begrudgingly paying, as opposed to willingly or excitedly.

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Speaker 1: Well, I saw that. I think Alaska Airlines just announced

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Speaker 1: a five dollars a month subscription fief and you get

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Speaker 1: like free Wi Fi when you travel stuff like that.

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Speaker 1: So let's say Wi Fi costs ten bucks and you

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Speaker 1: travel every single month on an Alaskan Airline flight. It's

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Speaker 1: worth the feet, it's worth the five bucks, right, But

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Speaker 1: I guess.

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Speaker 2: It sounds more like a membership to.

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Speaker 1: Me, right, Yes, I think you're right. So this is

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Speaker 1: just an interesting one. I just see.

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Speaker 2: It's kind of like frugler cheek.

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Speaker 1: I can't imagine paying thirty bucks a month to chuck

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Speaker 1: e cheese. Well, but I guess some people can.

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Speaker 2: There's other things you'd rather do. You'd rather take your

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Speaker 2: family hiking or something as opposed to. Yeah, the ball pit.

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Speaker 2: I don't think I've been since my childhood, and but

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Speaker 2: I went many times in my childhood, and my kids,

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Speaker 2: I guess, are just missing out. Have you ever seen

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Speaker 2: the animatronics without the fur on them.

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Speaker 1: No, that sounds scary.

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Speaker 2: Scary. It's not something that you would have went your

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Speaker 2: kids to see. It's sort of like seeing space mountain

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Speaker 2: with the lights on. Oh yeah, obviously it removes the magic. Yeah,

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Speaker 2: you're like, oh my gosh, that's.

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Speaker 1: How close we are to moving part.

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Speaker 2: This conveyor belt looking looking thing that's like flying on

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Speaker 2: my face. But I'm gonna keep chewing on subscription versus

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Speaker 2: membership though, because I really do think that could be

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Speaker 2: like a new because it's like, well, frugal or cheap. Well,

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Speaker 2: it's kind of the same thing, but actually no, it's

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Speaker 2: very different. I kind of feel similarly about the subscription

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Speaker 2: versus membership. Okay, we might come back to that, but

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Speaker 2: let's introduce the beer that you and I are enjoying today, Buddy.

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Speaker 2: This is Awaken Bake. This is a coffee oatmeal Imperial

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Speaker 2: Stout by Terrapin. They're out of Athens, Georgia, Buddy, I'm

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Speaker 2: looking forward to and they partner with Jittery Joe's, which

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Speaker 2: was one of the better coffee shops there in the

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Speaker 2: classic city. I spent a jitter Joe's got a decent

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Speaker 2: amount of my money when I was in school.

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Speaker 1: I still remember for one of my maybe one of

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Speaker 1: my birthdays, like ten years ago, we all went to Athens.

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Speaker 1: We went to Terrapin. It was a lovely time. Well,

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Speaker 1: looking forward to having this beer on the show today.

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Speaker 1: Our thoughts at the end, But let's get to the

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Speaker 1: topic at Hanry are answering listener questions. If you have

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Speaker 1: a money question, well, we'd love to hear it. Hope

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Speaker 1: we will take it next week on the show. Just

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Speaker 1: got to hatamoney dot com slash ask for instruction. But

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Speaker 1: basically you're just recording your voice memo. You're sending it

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Speaker 1: our way and hopefully we can take it soon in

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Speaker 1: Matt first question is probably something that's on the minds

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Speaker 1: of a lot of listeners. It's about student loan payoff.

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Speaker 4: Hi, my name is Ange and I'm from Michigan. My

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Speaker 4: question is regarding student loans with the potential of student

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Speaker 4: loan forgiveness in the future. Would I be better off

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Speaker 4: to continue to pay the minimum payment and hope that

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Speaker 4: it will get forgiven in the future, or should I

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Speaker 4: be paying it off as it is a higher interest rate?

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Speaker 2: All right, and I think this is a question on

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Speaker 2: the mind of a lot of twenty something year olds,

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Speaker 2: in particular, folks who are not it hasn't been all

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Speaker 2: that long since they've gotten out.

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Speaker 1: Of college, Jill. A lot of millennials though, with student

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Speaker 1: loan debt hanging around too.

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Speaker 2: That's awesome, that's very true.

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Speaker 1: Actually, like when you read this the articles about parent

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Speaker 1: plus loans and people even in their.

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Speaker 2: Sixties stars with student loans.

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Speaker 1: It's sickening.

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Speaker 2: Yeah, But in particular this is important to discuss because

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Speaker 2: the Safe Plan it continues to roll out so this summer, actually,

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Speaker 2: this is when we're going to see it kick into

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Speaker 2: full gear. Basically in July, most borrowers will have their

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Speaker 2: payments cut in half thanks to the far more generous

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Speaker 2: rules of the Save Plan and the timeline to reach

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Speaker 2: full forgiveness that's already been implemented. This is also much

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Speaker 2: more generous as well, where they slashed it from twenty

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Speaker 2: years down to ten years. But then there's this other

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Speaker 2: amazing perk where your balance won't grow if you are

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Speaker 2: making on time payments. This was the capitalization of interest

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Speaker 2: feature that they rolled out, where folks were seeing their

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Speaker 2: balances grow over time, which was incredibly disheartening.

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Speaker 1: Even over many many years they've been making on time

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Speaker 1: payments and then but the balance continues to grow, which

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Speaker 1: is disheartening to say the least.

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Speaker 2: Yeah, So, this income based for payment plan, it's changing

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Speaker 2: the game, and it's making student loans just a whole

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Speaker 2: lot less awful for borrowers everywhere.

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Speaker 1: Yeah and so, and she mentioned student loan forgiveness. You

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Speaker 1: just touched on that, Matt. But there's also the reality

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Speaker 1: that the Biden administration continues hinting at trying an even

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Speaker 1: more robust approach to forgiving student loan debt. So they

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Speaker 1: had kind of the swing and miss in their attempt

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Speaker 1: to completely wipe the slate of all student loan debt,

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Speaker 1: and the Supreme Court kind of smack that down. They

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Speaker 1: failed in the first attempt, but they're looking into other

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Speaker 1: legal avenues. They kind of keep mentioning this out loud,

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Speaker 1: of making student loan forgiveness stick.

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Speaker 2: And so mostly for political reasons, I think, sure, it's like, oh,

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Speaker 2: by the way, we will do this thing probably maybe

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Speaker 2: at some point there at least if you vote for me.

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Speaker 1: They're at least efforting efforting, which is a good word,

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Speaker 1: I think. And so it's vaporware right now. And no

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Speaker 1: one knows if, when, or how that might come about.

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Speaker 1: But I think that even that potential carrot combined with

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Speaker 1: the hard facts of Safe Like, sure, there's a hard

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Speaker 1: reality right of the payments being cut in half and

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Speaker 1: the much shorter timeline for forgiveness, which is great. Then

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Speaker 1: there's also the potential who knows if it will happen

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Speaker 1: forgiveness thing dangling off in the future.

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Speaker 2: I think of that hard blanket forgiveness, yeah, exactly, of

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Speaker 2: it just.

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Speaker 1: Being eliminated all together. I think those combined things, I

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Speaker 1: think it makes paying off student loan debt less of

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Speaker 1: a priority for most folks.

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Speaker 2: Yeah, that being said, I wouldn't necessarily, I mean, don't

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Speaker 2: count on that blanket forgiveness being a part like don't

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Speaker 2: necessarily I don't know, don't fully put all of your

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Speaker 2: weight on that leg. Instead, look at the fact that

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Speaker 2: there are these unassailable aspects of the Safe plan that

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Speaker 2: have already been partially implemented.

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Speaker 1: I'm gonna give the blanket forgiveness a four percent shot.

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Speaker 1: That's just that's just my yes, my nager, that's that's

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Speaker 1: not a very high chance. But there's a chance, And

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Speaker 1: so there is there is a chance saying there's a change,

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Speaker 1: right that should at least come into your calculations.

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Speaker 2: But with all of this in mind, we do think

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Speaker 2: student loans should likely be on the back burner of

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Speaker 2: all your different financial priorities and student loans it likely

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Speaker 2: shouldn't be near the top of the list. And I

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Speaker 2: think that just means paying off your loans as agreed,

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Speaker 2: like honestly our advice. It might have been different five

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Speaker 2: years ago, but because of all of these different benefits

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Speaker 2: that save offers, along with potentially having a big chunk

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Speaker 2: out in the future, I just don't see any reason

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Speaker 2: to pay off that debt sooner. And by the way,

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Speaker 2: this is like we are assuming that you're talking about

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Speaker 2: federal student loans. If you, if anybody else out there

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Speaker 2: is listening, and you've got private student loans, safe plan

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Speaker 2: doesn't apply. We're talking like there is not any ability.

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Speaker 1: You have to get those private student loans four or

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Speaker 1: five years ago when interest rates really love we're super low.

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Speaker 2: Yeah, but just realize that the different forbearance periods of

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Speaker 2: time that folks have had the pauses, what else is

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Speaker 2: there the possibility of the forgiveness. This all applies to

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Speaker 2: federal student loans. Yeah, and the reduction in payment amounts.

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Speaker 2: I mean, yeah, the federal student or excuse me, the

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Speaker 2: private student loan companies, they ain't got that.

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Speaker 1: They're not offering the wigle room that the that the

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Speaker 1: Feds are.

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Speaker 2: Yeah, if you've got private student loans, just knock that out.

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Speaker 2: Most likely, although again, if it's from four or five

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Speaker 2: years ago, because it depends on the rates, you probably

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Speaker 2: didn't refinance into private loans during the pandemic when the

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Speaker 2: payments were paused, they are probably they probably do have

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Speaker 2: a three and a quarter or three and a half

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Speaker 2: whatever four percent interest rate, So it's not like the

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Speaker 2: worst thing in the world, true, But yeah, you don't

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Speaker 2: have any of those additional benefits though. But I think

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Speaker 2: it's really important, like you said, to mention that these

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Speaker 2: are kind of two different categories of debts. And so yeah,

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Speaker 2: we're assuming again, federal student loans here. If it was

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Speaker 2: me and I would feel plenty comfortable taking this slow

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Speaker 2: payoff approach that Matt just kind of outlined. So you

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Speaker 2: can do better things with this money, but we don't

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Speaker 2: want you doing like whatever random thing might pop into

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Speaker 2: your head with those extra funds.

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Speaker 1: Like the key is to funnel those dollars that you

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Speaker 1: would have used to pay off student loans towards saving

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Speaker 1: and investing, right, don't take that money inflate your lifestyle

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Speaker 1: because no.

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Speaker 2: Need to go on a cruise. Yeah, save that for

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Speaker 2: five ten years.

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Speaker 1: If that's what you were going to do, then I

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Speaker 1: would say pay off the student loans right. If it

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Speaker 1: was either it was consumption versus debt, payoff boom, go

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Speaker 1: ahead and pay off those that student loan debts as

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Speaker 1: much as you can. But the good news is that

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Speaker 1: you have options here. And if you're asking if you

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Speaker 1: should or shouldn't pay down that debt ahead of schedule,

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Speaker 1: I think that means you have a little extra money

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Speaker 1: at the end of the month, and I just want

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Speaker 1: to make sure that you're continuing to be diligent. So

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Speaker 1: take that extra money instead of putting it towards student

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Speaker 1: loans that are not the worst form of debt to

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Speaker 1: begin with, and then are actually looking a whole lot

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Speaker 1: better these days thanks to kind of the new regulations.

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Speaker 1: I wouldn't feel terrible keeping that debt around and starting

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Speaker 1: to build my nest egg, build up my assets instead

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Speaker 1: of paying down my liabilities.

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Speaker 2: Yeah, it fully depends on what you plan on doing

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Speaker 2: with that money otherwise. Like it kind of makes me

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Speaker 2: think of this conversation Joe that Can and I have

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Speaker 2: been having at home about seltzer, Like we drink a

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Speaker 2: whole It seems like we go through a ton of

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Speaker 2: Seltzer all the time. We're always like restocking. I'm like,

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Speaker 2: where did all the seltzers go?

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Speaker 5: Wow?

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Speaker 2: We drink it all. And on one side of the argument,

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Speaker 2: it's like, well, the fully optimized, affordable, financially smart thing

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Speaker 2: to do is just to drink the filtered water that

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Speaker 2: comes through comes out of the fridge, right, or.

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Speaker 1: You're one of those soda streams like virgal Is.

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Speaker 2: If you want to do that. But if the alternative

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Speaker 2: instead is that you're drinking more coke or more juices

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Speaker 2: or more beer, things that hey, not only cost more

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Speaker 2: money but might be not as great for your health,

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Speaker 2: we'll shoot well in that case, keep the seltzer around,

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Speaker 2: keep buying the seltzer because it's keeping you from harming

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Speaker 2: yourself bodily, perhaps more than the seltzer otherwise. Whatever. So

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Speaker 2: in this case, I think keeping the student loans around

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Speaker 2: and paying on them as a greed, Like that's the Seltzer,

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Speaker 2: whereas the sort of optimized tap water chilled it's basically

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Speaker 2: like free water that comes out of the wall, right right,

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Speaker 2: Like that is taking that money and maybe investing it

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Speaker 2: in the market. But if the alternative is to perhaps

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Speaker 2: spend that money like you, like you said, Joel, if

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Speaker 2: you were to just consume it, well that's not what

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Speaker 2: we want you to do. So I don't know, maybe

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Speaker 2: that's helpful for some of the Seltzer slash student loan

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Speaker 2: holders out there. Seltzer drinker slash. What do you think

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Speaker 2: the vin diagram is for folks who have student loans

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Speaker 2: and also enjoy Celtic, it's.

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Speaker 1: Probably almost a direct overlap. Like, I just hope they're

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Speaker 1: drinking the Cerkling signature variety, not just not the Lacroix,

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Speaker 1: the liquah or all these stuff.

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Speaker 2: Is actually pretty good too. I honestly I like that

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Speaker 2: the aldise stuff. It actually has less flavor, it's more

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Speaker 2: it's just it's more sparkling as opposed to the different

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Speaker 2: fruit flavors. By the way, save so the safe lane,

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Speaker 2: it doesn't make sense for everyone out there. Higher income

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Speaker 2: earners in particular might not benefit. And that's because the

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Speaker 2: more you make well, the higher your monthly payment is

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Speaker 2: going to be, So that's something that you want to

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Speaker 2: keep in mind. And honestly, if you found that your

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Speaker 2: student loan situation is fairly complicated, maybe you've got a

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Speaker 2: fairly large balance, well, it might make sense to talk

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Speaker 2: to the folks over at Student Loan Planner. They're kind

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Speaker 2: of like financial planners, but for student loans specifically. We've

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Speaker 2: had a few of their different folks, folks who are

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Speaker 2: on their team here on our show before on the past,

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Speaker 2: and I think they've helped out a lot of borrowers

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Speaker 2: save quite a bit of money. We've got a review

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Speaker 2: up on the website as to whether or not you

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Speaker 2: are in a situation where it might make sense to

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Speaker 2: reach out to student loan planners. Yes, we'll links to

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Speaker 2: that in the show notes.

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Speaker 1: The stakes are high, the options can be confusing, and

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Speaker 1: if you feel like you need to see a professional

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Speaker 1: because you're kind of at your wits end, you don't

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Speaker 1: know how to make heads or tails, and you're not

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Speaker 1: sure whether reducing your payments to the most important option

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Speaker 1: or reducing your payoff timeline is the best option, then

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Speaker 1: talking to someone who's like literally an expert. They have

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Speaker 1: a specific specific designation ye c SLP Certified Student Loan Professional.

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Speaker 1: That's a good way to proceed if you're kind of like, yeah,

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Speaker 1: not sure where you're headed. But Matt, we've got more

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Speaker 1: questions to get to on this episode, including someone who

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Speaker 1: attempted to father taxes twice in order to see what

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Speaker 1: the most optimized route for his finances would be. We'll

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Speaker 1: talk about that and more right after this.

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Speaker 2: All right, we're back and we will get to that

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Speaker 2: listener who has run some different tax scenarios to see

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Speaker 2: where he might owe lesser, when he might owe more.

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Speaker 2: But let's hear from a listener who's actually moving out

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Speaker 2: to Austin, Texas.

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Speaker 3: Hello, met Angel. My name is Jordan. I currently attend

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Speaker 3: college in beautiful Tallahassee, Florida. But I'm a senior, which

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Speaker 3: means in a few weeks I'll be graduating and starting

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Speaker 3: my first full time job in Austin, Texas. Now thanks

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Speaker 3: to y'all's show, I do consider myself to be fairly

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Speaker 3: financially literate. You know, I have a highlight savings account.

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Speaker 3: I've been investoring in a brokerage account for the last

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Speaker 3: several years. I will be graduating GUBT free, as my

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Speaker 3: school was paid for by scholarships that I earned. But

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Speaker 3: I'm definitely a bit intimidated by everything that's coming up

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Speaker 3: in post grad life, especially a lot of the financial

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Speaker 3: shifts taking place. I'm about to be living alone for

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Speaker 3: the first time, so I am thinking a lot about

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Speaker 3: apartment hunting and how I'm going to furnish a new place.

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Speaker 3: I am about to buy my very first car, and

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Speaker 3: I'm about to add a lot of things to my

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Speaker 3: budget that I've never had to contribute to before, like

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Speaker 3: internet and phone bills, or car insurance or hsas and

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Speaker 3: a lot of other votecap terms that are definitely swirling

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Speaker 3: around in my head right now. I'm happy with the

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Speaker 3: offer that I got from my first full time job,

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Speaker 3: and I feel secure in starting out, but I would

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Speaker 3: love to hear any advice tips first steps for students

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Speaker 3: entering that postgrad life, because I really do want to

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Speaker 3: start off my adult life on the right financial foot.

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Speaker 3: Thanks y'all.

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Speaker 1: All right, Jordan, congrats on graduating. That's huge. I'm guessing

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Speaker 1: she did it in four years, Matt. She sounds like

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Speaker 1: a go getter. She has done in like three says.

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Speaker 2: Like she's been in college listening to our show. I

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Speaker 2: freaking love it.

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Speaker 1: I bet she was like taking those ap classes in

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Speaker 1: high school to get rid of some of those classes

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Speaker 1: in college. And she's like probably graduating at the ripe

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Speaker 1: old age of twenty one or something like that.

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Speaker 2: And the fact that she doesn't have any debt. I mean,

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Speaker 2: so she's a go geter because she was applying to

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Speaker 2: all of those scholarships, which I know, on the front

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Speaker 2: end seems like a whole lot of work, but uh, hello,

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Speaker 2: the ability to have any student loans. I mean, we

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Speaker 2: just spent I don't know, fifteen minutes talking about student runs.

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Speaker 1: Right before the break, Jordan just skipped take about that, Yeah, exactly,

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Speaker 1: having zero student loan debt and being in starting investing

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Speaker 1: in your teens and early twenties.

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Speaker 2: We talk about that. Yeah, that's amazing.

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Speaker 1: Means that you've got less financial baggage and you've got

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Speaker 1: better financial habits than most already. And it just, man,

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Speaker 1: this is just a great reminder. You talked about the scholarships.

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Speaker 1: I think is it just a good reminder to anybody

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Speaker 1: who is in high school or has a student in

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Speaker 1: high school to apply for scholarships to not the ROI

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Speaker 1: can be significant, and some of those scholarships are recurring scholarships,

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Speaker 1: so apply for those scholarships. Make it feel kind of

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Speaker 1: like a part time job because it might be basically

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Speaker 1: is from a financial sample, it might be a more

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Speaker 1: lucrative part time job than actually getting to getting a

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Speaker 1: fast food joint job or something like that.

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Speaker 2: He especially if you find a scholarship that pays big

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Speaker 2: not a whole lot of folks know about it. Guess what,

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Speaker 2: You're gonna revisit that scholarship next year. It's a gift

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Speaker 2: that keeps on given. So Jordan, we'll do our best

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Speaker 2: to offer you some advice here, but honestly, part of

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Speaker 2: that is we basically want to encourage you just to

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Speaker 2: keep up the awesome financial habits that you already have.

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Speaker 2: Like you are already a verse to debt. We want

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Speaker 2: you to keep that mindset. Don't allow yourself to take

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Speaker 2: on any debt, if at all possible, until if and

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Speaker 2: when you are ready to buy a house. We're talking

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Speaker 2: about a mortgage here, and since you've been regularly investing,

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Speaker 2: keep that up as well. So I'll point out you

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Speaker 2: mentioned your brokerage account. You are likely going to want

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Speaker 2: to change accounts now that you have a job, is

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Speaker 2: how I'm guessing that you were only investing via your

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Speaker 2: brokerage because you didn't have earned income, So now I

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Speaker 2: guess what you have the ability to contribute to a

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Speaker 2: roth IRA. But now that you have a job, hopefully

436
00:19:23,560 --> 00:19:26,480
Speaker 2: you said you're happy with the offer that you received

437
00:19:26,600 --> 00:19:29,479
Speaker 2: from them. Hopefully that also means a four to one

438
00:19:29,560 --> 00:19:32,359
Speaker 2: K with a match, because we want you to prioritize

439
00:19:32,359 --> 00:19:36,680
Speaker 2: those tax advantage accounts rather than your brokerage account. And yeah,

440
00:19:36,720 --> 00:19:39,920
Speaker 2: depending on what your benefits are at work, making sure

441
00:19:39,920 --> 00:19:42,159
Speaker 2: that you are able to snag that match via that

442
00:19:42,160 --> 00:19:44,800
Speaker 2: four O one K that comes first, and then you

443
00:19:44,800 --> 00:19:47,400
Speaker 2: can look at your HSA, your roth IRA, THO'SE, other

444
00:19:47,480 --> 00:19:48,480
Speaker 2: tax advantage accounts.

445
00:19:48,480 --> 00:19:51,160
Speaker 1: I have a feeling that a person like Jordan, who

446
00:19:51,320 --> 00:19:53,800
Speaker 1: is crushing it on so many levels, is going to

447
00:19:53,800 --> 00:19:56,600
Speaker 1: be getting the match, maxing out the roth, maxed out

448
00:19:56,640 --> 00:19:58,880
Speaker 1: the HSA, and then maybe even going back for more

449
00:19:58,960 --> 00:20:01,000
Speaker 1: on the four oh one K after that too. Like

450
00:20:01,040 --> 00:20:02,919
Speaker 1: she just seems like that kind of person who's going

451
00:20:03,000 --> 00:20:07,159
Speaker 1: to prioritize investing substantial amounts of money before she inflicts

452
00:20:07,160 --> 00:20:10,760
Speaker 1: her lifestyle dramatically, okay, and I feel like the first job,

453
00:20:10,760 --> 00:20:12,480
Speaker 1: it can feel like this flood of income.

454
00:20:12,560 --> 00:20:14,439
Speaker 2: Right, it's like a real adult.

455
00:20:14,600 --> 00:20:16,280
Speaker 1: Yeah, got a real job and you get the first

456
00:20:16,280 --> 00:20:18,560
Speaker 1: couple of paychecks and you're like, oh man, you kind

457
00:20:18,560 --> 00:20:21,080
Speaker 1: of it's not that it's mean, it's wonderful, but you

458
00:20:21,119 --> 00:20:24,280
Speaker 1: can kind of get addicted to living large really quickly

459
00:20:24,480 --> 00:20:26,960
Speaker 1: because you're starting to see those regular paychecks come in and

460
00:20:27,000 --> 00:20:29,400
Speaker 1: you're like, you know, there's a big step up from

461
00:20:29,400 --> 00:20:32,000
Speaker 1: that college life, right, and it's easy, I think, to

462
00:20:32,080 --> 00:20:35,280
Speaker 1: raise your lifestyle really quickly. So you know, for instance,

463
00:20:35,680 --> 00:20:38,679
Speaker 1: Jordan mentioned getting a car, but you know, lots of

464
00:20:38,720 --> 00:20:41,560
Speaker 1: grads they go and buy a new car because hey,

465
00:20:41,840 --> 00:20:44,240
Speaker 1: I graduated, I put in the hard work. Why not

466
00:20:44,359 --> 00:20:47,679
Speaker 1: I deserve it and treat myself right. But then what

467
00:20:47,680 --> 00:20:50,120
Speaker 1: you're treating yourself to is payments for many, many years

468
00:20:50,119 --> 00:20:53,120
Speaker 1: to come. And so we would say, please instead consider

469
00:20:53,560 --> 00:20:56,000
Speaker 1: getting a used car, ideally something that you could even

470
00:20:56,040 --> 00:20:59,040
Speaker 1: pay cash for. I'd say the older the better because

471
00:20:59,119 --> 00:21:01,159
Speaker 1: like a nice low mileage eight to ten year old

472
00:21:01,200 --> 00:21:04,280
Speaker 1: car can help you save on multiple fronts. It's cheaper

473
00:21:04,280 --> 00:21:06,680
Speaker 1: to ensure you're gonna take less of a depreciation hit.

474
00:21:07,080 --> 00:21:09,879
Speaker 1: Maybe consider a used a EV thanks to the federal

475
00:21:09,920 --> 00:21:12,400
Speaker 1: tax credit. If you have the ability to charge at home,

476
00:21:12,440 --> 00:21:14,000
Speaker 1: let's say you're not, I know, if you live in

477
00:21:14,040 --> 00:21:16,000
Speaker 1: an apartment complex, Matt. Sometimes the evs can be a

478
00:21:16,000 --> 00:21:18,800
Speaker 1: little bit annoying, depending on what sort of charging infrastructure

479
00:21:18,800 --> 00:21:21,359
Speaker 1: they have. But this is one thing like setting yourself

480
00:21:21,400 --> 00:21:23,560
Speaker 1: up for success so that you have more financial margin,

481
00:21:23,640 --> 00:21:26,840
Speaker 1: more that you can commit to investing for your future

482
00:21:26,880 --> 00:21:30,000
Speaker 1: and saving for kind of more medium term goals. Well,

483
00:21:30,080 --> 00:21:33,359
Speaker 1: the lower you keep your transportation budget, the less you

484
00:21:33,400 --> 00:21:35,160
Speaker 1: spend kind of on something that a lot of people

485
00:21:35,160 --> 00:21:37,840
Speaker 1: tend to spend outsized amounts of money on, the more

486
00:21:37,880 --> 00:21:40,160
Speaker 1: wiel room you have to prioritize other things.

487
00:21:40,240 --> 00:21:41,919
Speaker 2: Yeah, we would love for you to think of your

488
00:21:41,960 --> 00:21:45,280
Speaker 2: transportation truly as that call it your transportation. Don't call

489
00:21:45,320 --> 00:21:49,600
Speaker 2: it your ride or don't name your car like, think

490
00:21:49,640 --> 00:21:52,520
Speaker 2: of it as like a utility. Like nobody's naming their

491
00:21:52,560 --> 00:21:54,760
Speaker 2: water heater. It just provides you with hot water. Like

492
00:21:54,800 --> 00:21:56,359
Speaker 2: That's how we want you to think about your vehicle

493
00:21:56,400 --> 00:21:59,160
Speaker 2: as well. And maybe you got hired by a fintech

494
00:21:59,200 --> 00:22:01,280
Speaker 2: startup or something and you have the ability to charge

495
00:22:01,280 --> 00:22:03,520
Speaker 2: your car while you're at work for free. Well here's

496
00:22:03,520 --> 00:22:05,440
Speaker 2: the that's like Krem to the Krim.

497
00:22:05,560 --> 00:22:07,919
Speaker 1: Think about where you live in terms of where you

498
00:22:07,960 --> 00:22:10,719
Speaker 1: work and a proximity of that. How huge is that?

499
00:22:10,800 --> 00:22:10,879
Speaker 5: Oh?

500
00:22:10,960 --> 00:22:13,840
Speaker 2: Yeah, I can say for me, that's been like one

501
00:22:13,880 --> 00:22:18,600
Speaker 2: of the biggest game changers in just life enjoyment, life

502
00:22:18,600 --> 00:22:21,560
Speaker 2: satisfaction has been living and working close to each other.

503
00:22:21,720 --> 00:22:25,200
Speaker 2: And even like when I was thirty minute car ride away,

504
00:22:25,320 --> 00:22:27,280
Speaker 2: well guess what, it was a thirty minute bike ride too,

505
00:22:27,520 --> 00:22:30,280
Speaker 2: And so those bike rides there's options. Yeah, now my

506
00:22:30,920 --> 00:22:33,080
Speaker 2: commute is a heck a lot less than that, But

507
00:22:33,359 --> 00:22:35,280
Speaker 2: I do think like prioritizing that and trying to make

508
00:22:35,320 --> 00:22:37,560
Speaker 2: that a regular feature of your life, you've got the

509
00:22:37,560 --> 00:22:39,640
Speaker 2: ability to kind of start that pattern. Now totally. Yeah,

510
00:22:39,680 --> 00:22:42,040
Speaker 2: I totally agree, and especially given the fact So's she

511
00:22:42,640 --> 00:22:45,399
Speaker 2: went to school she said in Tallahassee. I'm guessing she

512
00:22:45,440 --> 00:22:49,000
Speaker 2: went to Florida State. Yeah, and guess like, my brain's

513
00:22:49,000 --> 00:22:50,600
Speaker 2: going like a bunch of different places, Like I'm thinking,

514
00:22:50,640 --> 00:22:53,240
Speaker 2: like she asked about housing, right, and.

515
00:22:53,040 --> 00:22:56,359
Speaker 1: She said something about living alone. So the first thing

516
00:22:56,359 --> 00:22:56,879
Speaker 1: I want to put on.

517
00:22:56,880 --> 00:22:59,919
Speaker 2: Your radar is do you have to live alone? Like

518
00:23:00,240 --> 00:23:02,480
Speaker 2: could you consider getting a roommate, and it sounds like

519
00:23:02,520 --> 00:23:04,639
Speaker 2: maybe this is a new city and you've not you

520
00:23:05,480 --> 00:23:08,240
Speaker 2: you've not been there before. But I mean you can

521
00:23:08,359 --> 00:23:10,919
Speaker 2: look on Craigslist. Who knows you can find somebody like

522
00:23:11,000 --> 00:23:14,600
Speaker 2: another awesome individual who you'd be more than willing to

523
00:23:14,640 --> 00:23:18,920
Speaker 2: split your apartment with or rent with. But it could

524
00:23:19,000 --> 00:23:22,119
Speaker 2: a have an incredible financial impact. Because you went throughout

525
00:23:22,119 --> 00:23:24,439
Speaker 2: all of college, most likely with the roommate, why not

526
00:23:24,520 --> 00:23:27,840
Speaker 2: continue that for a little bit longer. But then b again,

527
00:23:27,880 --> 00:23:29,960
Speaker 2: going back to the whole the fact that you were

528
00:23:30,000 --> 00:23:32,359
Speaker 2: an undergrad there on campus, surrounded by a lot of

529
00:23:32,359 --> 00:23:36,400
Speaker 2: folks that you were friends with and shared common interests.

530
00:23:36,400 --> 00:23:38,919
Speaker 2: You were like minded. Well, when you move to a

531
00:23:38,920 --> 00:23:41,080
Speaker 2: new city, I think it could be difficult from like

532
00:23:41,119 --> 00:23:43,679
Speaker 2: a social standpoint, right, Like it could be a lonely

533
00:23:43,760 --> 00:23:46,520
Speaker 2: transition when you are moving to Austin, And guess what

534
00:23:47,119 --> 00:23:48,919
Speaker 2: if you find like a cool roommate. I think that

535
00:23:48,920 --> 00:23:51,280
Speaker 2: could help tremendously when it comes to meeting new folks,

536
00:23:51,320 --> 00:23:53,760
Speaker 2: to always kind of have a just like a default friend,

537
00:23:53,880 --> 00:23:56,080
Speaker 2: someone just to chat with, even if you're not gonna

538
00:23:56,119 --> 00:23:58,840
Speaker 2: end up being best buddies. The ability to come home

539
00:23:58,920 --> 00:24:00,919
Speaker 2: and just to talk a little but an unwind. I

540
00:24:00,920 --> 00:24:03,440
Speaker 2: think that that's I don't know, I think that's really underrated.

541
00:24:03,640 --> 00:24:05,840
Speaker 2: And so there's like a financial aspect, but then just

542
00:24:05,920 --> 00:24:08,280
Speaker 2: sort of the social connection aspect, and I think that

543
00:24:08,280 --> 00:24:10,880
Speaker 2: could really have an impact on your happiness and how

544
00:24:10,920 --> 00:24:13,960
Speaker 2: you view your new city. Basically in addition to, like

545
00:24:14,000 --> 00:24:16,520
Speaker 2: you said, Joel, keeping in mind like okay, well how

546
00:24:16,560 --> 00:24:18,040
Speaker 2: far from where am I going to live? Because if

547
00:24:18,040 --> 00:24:20,040
Speaker 2: you're spending all your time come meeting all right, well

548
00:24:20,040 --> 00:24:21,360
Speaker 2: you don't have a ton of time to like meet

549
00:24:21,400 --> 00:24:23,480
Speaker 2: new folks or to hang out after work and go

550
00:24:23,520 --> 00:24:25,800
Speaker 2: grab drinks. That kind of thing. It all has an impact.

551
00:24:25,880 --> 00:24:26,040
Speaker 5: Is it?

552
00:24:26,080 --> 00:24:28,080
Speaker 1: Meetup dot com? Is that where you find kind of

553
00:24:28,080 --> 00:24:29,440
Speaker 1: different meetup groups.

554
00:24:29,119 --> 00:24:32,240
Speaker 2: Based on shared interests. Yeah, a lot of those hangs

555
00:24:32,840 --> 00:24:35,880
Speaker 2: to extensive. It could be a workout group at a local.

556
00:24:35,720 --> 00:24:36,479
Speaker 1: Park or something like that.

557
00:24:36,560 --> 00:24:38,520
Speaker 2: Even while you're still at school, just asking around, like

558
00:24:38,560 --> 00:24:41,240
Speaker 2: you're probably thinking, well, I'm in Florida, like nobody is

559
00:24:41,240 --> 00:24:43,280
Speaker 2: from text. We'll just start asking around and man, you

560
00:24:43,359 --> 00:24:46,120
Speaker 2: might have a friend that knows somebody and boom, there's

561
00:24:46,160 --> 00:24:49,160
Speaker 2: your first hang and then they introduce somebody else. It's like, hey,

562
00:24:49,600 --> 00:24:52,120
Speaker 2: is there somebody you could recommend me meeting up with.

563
00:24:52,480 --> 00:24:54,920
Speaker 2: There are just a lot of different potential benefits I

564
00:24:54,920 --> 00:24:57,680
Speaker 2: guess that I see coming from living with roommates. I

565
00:24:57,680 --> 00:24:59,840
Speaker 2: think about when I first moved to Atlanta in this

566
00:25:00,240 --> 00:25:05,280
Speaker 2: super sketchy loft. It was, it was rough, but it

567
00:25:05,359 --> 00:25:07,440
Speaker 2: meant that I had some default hangs, like right out

568
00:25:07,480 --> 00:25:09,320
Speaker 2: of the gate, and one of the guys that I

569
00:25:09,359 --> 00:25:12,639
Speaker 2: shared that loft with invited me to church, and so

570
00:25:12,680 --> 00:25:14,280
Speaker 2: I went there for a little bit. And guess what

571
00:25:14,400 --> 00:25:16,840
Speaker 2: that happens to be the church where our family is

572
00:25:17,160 --> 00:25:19,199
Speaker 2: going to now. And so what I'm pointing to is

573
00:25:19,200 --> 00:25:21,800
Speaker 2: the fact that and I literally hadn't been there in

574
00:25:21,920 --> 00:25:24,880
Speaker 2: around fifteen years, like not even kidding. So what I'm

575
00:25:24,960 --> 00:25:27,600
Speaker 2: piloting here is the fact that there could be like

576
00:25:27,640 --> 00:25:31,520
Speaker 2: a long lasting impact of some of these random roommates

577
00:25:31,520 --> 00:25:33,560
Speaker 2: that you might find yourself crossing paths with. Yeah, that's all.

578
00:25:33,600 --> 00:25:33,800
Speaker 2: I think.

579
00:25:33,800 --> 00:25:36,800
Speaker 1: It's a good point. And some other things, Matt, just

580
00:25:36,840 --> 00:25:39,720
Speaker 1: like when we're talking about the apartment front furniture that

581
00:25:39,720 --> 00:25:40,600
Speaker 1: can be expensive, she.

582
00:25:40,560 --> 00:25:42,560
Speaker 2: Was asking about how, yeah, furnishing her new place.

583
00:25:42,600 --> 00:25:45,440
Speaker 1: Yeah, well, especially if you're living alone and you kind

584
00:25:45,480 --> 00:25:47,399
Speaker 1: of moved from a door atmosphere where you might have

585
00:25:47,440 --> 00:25:49,800
Speaker 1: like two items of furniture. Well, you've got some rooms

586
00:25:49,840 --> 00:25:52,240
Speaker 1: to fill, right, and so I say Facebook Marketplace and

587
00:25:52,320 --> 00:25:55,439
Speaker 1: your local biy nothing groups. Are your friends even opting

588
00:25:55,520 --> 00:25:58,400
Speaker 1: for akia to furnish that place? That can add up?

589
00:25:58,400 --> 00:26:00,760
Speaker 1: Like it seems like, oh, that's the cheap place to go. Well,

590
00:26:00,760 --> 00:26:03,320
Speaker 1: there are cheaper places to go, which buying other people's

591
00:26:03,400 --> 00:26:05,320
Speaker 1: use stuff, right, and so you're.

592
00:26:05,160 --> 00:26:06,320
Speaker 2: Just like grabbing the kerb alerts.

593
00:26:06,400 --> 00:26:07,080
Speaker 1: Yeah, like that.

594
00:26:07,040 --> 00:26:09,320
Speaker 2: Looks like a decent coffee table on the side of

595
00:26:09,320 --> 00:26:10,880
Speaker 2: the road. Just be careful for that in the back

596
00:26:10,880 --> 00:26:13,080
Speaker 2: of the car bed bugs. That can be more trouble

597
00:26:13,080 --> 00:26:15,960
Speaker 2: than it's worth. And you can always upgrade pieces over time.

598
00:26:16,040 --> 00:26:18,959
Speaker 1: Right, you buy the two hundred dollars or even one

599
00:26:19,000 --> 00:26:22,440
Speaker 1: hundred dollars couch or something like that that's used from somebody, well, yeah,

600
00:26:22,520 --> 00:26:24,280
Speaker 1: make it a golden to save up in eight months

601
00:26:24,520 --> 00:26:26,320
Speaker 1: to buy a new one or something like that. Start

602
00:26:26,359 --> 00:26:28,520
Speaker 1: saving for it, don't go into debt for it, and

603
00:26:28,600 --> 00:26:31,040
Speaker 1: maybe get the mattress new. I think that's something I'm

604
00:26:31,080 --> 00:26:33,760
Speaker 1: not willing to be cheap on. Costco's got great mattresses

605
00:26:33,800 --> 00:26:35,200
Speaker 1: for pretty inexpensive.

606
00:26:35,320 --> 00:26:38,879
Speaker 2: Yeah, Yeah. So I've gotten free mattresses before, and I

607
00:26:38,920 --> 00:26:43,560
Speaker 2: know you it's worked out for me, So I totally

608
00:26:43,560 --> 00:26:45,000
Speaker 2: get where're coming from, though, Like you don't want to

609
00:26:45,000 --> 00:26:47,359
Speaker 2: do the equivalent of dumpster diving for furniture that you're

610
00:26:47,400 --> 00:26:50,040
Speaker 2: gonna get sleeping yes, but yeah if you if you

611
00:26:50,160 --> 00:26:51,800
Speaker 2: know somebody and it's like, oh no, this is a

612
00:26:51,800 --> 00:26:54,639
Speaker 2: great queen mattress. So that mattress that I'm talking about

613
00:26:54,680 --> 00:26:56,720
Speaker 2: that we got for free, I don't know, like a

614
00:26:56,760 --> 00:26:59,240
Speaker 2: decade ago, it's still in our house. One of our

615
00:26:59,320 --> 00:27:01,560
Speaker 2: daughters sleeps on it, and it is by far the

616
00:27:01,600 --> 00:27:03,120
Speaker 2: coziest bed in the entire home.

617
00:27:03,240 --> 00:27:05,000
Speaker 1: Like, no joke, Like we all talk about it, and

618
00:27:05,080 --> 00:27:07,439
Speaker 1: one gave you a nice mattress. It was solid. Yeah, So,

619
00:27:07,680 --> 00:27:10,320
Speaker 1: I mean, I just I think at every turn, there's

620
00:27:10,359 --> 00:27:12,879
Speaker 1: a way in which you can spend in a way

621
00:27:13,119 --> 00:27:15,800
Speaker 1: that reflects your new level of income, or there's a

622
00:27:15,800 --> 00:27:18,320
Speaker 1: way that you can kind of continue to live like

623
00:27:18,359 --> 00:27:21,840
Speaker 1: a de facto college student, not overdoing it even though

624
00:27:21,880 --> 00:27:24,640
Speaker 1: you have now some of the financial means to spend more.

625
00:27:24,720 --> 00:27:27,320
Speaker 1: Sure so, actually, so the white coat investor, that's what

626
00:27:27,359 --> 00:27:29,440
Speaker 1: he talks about. He talks about living like an intern

627
00:27:29,680 --> 00:27:33,000
Speaker 1: for a couple of years post graduation. And it's not

628
00:27:33,040 --> 00:27:37,359
Speaker 1: that you can't inflate your lifestyle at all or maybe eventually,

629
00:27:37,600 --> 00:27:40,119
Speaker 1: like that's something that's totally fine to do. Like nobody

630
00:27:40,160 --> 00:27:45,040
Speaker 1: wants to live the college chic student life and perpetuity.

631
00:27:45,520 --> 00:27:48,280
Speaker 1: Plus almost all the doctors he's speaking to or writing to,

632
00:27:48,440 --> 00:27:51,680
Speaker 1: they all have got student loans. Again, Jordan, you don't.

633
00:27:51,800 --> 00:27:54,400
Speaker 1: They've got to keep it in check because they've got,

634
00:27:54,480 --> 00:27:57,280
Speaker 1: you know, potentially a mortgage sized student loan payment going

635
00:27:57,280 --> 00:27:59,720
Speaker 1: out every every single month. Jordan doesn't have that.

636
00:28:00,200 --> 00:28:02,000
Speaker 2: And so bottom line, I guess what I'm saying here

637
00:28:01,960 --> 00:28:04,399
Speaker 2: is if you can keep your wants and your desires

638
00:28:04,440 --> 00:28:07,439
Speaker 2: and check, the more financial flexibility that you're going to have,

639
00:28:07,480 --> 00:28:10,520
Speaker 2: you're gonna be able to build wealth more quickly and

640
00:28:10,560 --> 00:28:12,800
Speaker 2: that's going to give future you far more options. And

641
00:28:12,880 --> 00:28:15,439
Speaker 2: so that applies not only when it comes to your car,

642
00:28:15,520 --> 00:28:18,919
Speaker 2: but like again back to housing. I mean, even like

643
00:28:19,000 --> 00:28:21,320
Speaker 2: as Joel, as you're talking about furnishing the place, well,

644
00:28:21,320 --> 00:28:22,919
Speaker 2: guess what, you don't have to buy nearly as much

645
00:28:22,960 --> 00:28:26,040
Speaker 2: stuff if you've got a smaller place, yeah, you know,

646
00:28:26,160 --> 00:28:27,720
Speaker 2: I mean, or if you have a roommate and your

647
00:28:27,800 --> 00:28:30,600
Speaker 2: roommate has all this stuff, they're looking for somebody to

648
00:28:30,680 --> 00:28:33,920
Speaker 2: take over the big bedroom that has its own bathroom.

649
00:28:34,200 --> 00:28:36,919
Speaker 2: They're happy to stay in the smaller room, and you

650
00:28:36,960 --> 00:28:39,800
Speaker 2: know it has a compounding effect, is essentially what we're seeing.

651
00:28:39,840 --> 00:28:41,720
Speaker 1: If you really want to become a homeowner, I would

652
00:28:42,000 --> 00:28:44,120
Speaker 1: think about house hacking. I would give long and hard

653
00:28:44,160 --> 00:28:45,800
Speaker 1: thoughts to that, because that's one of those ways where

654
00:28:45,840 --> 00:28:48,440
Speaker 1: you potentially get what you want from a housing perspective,

655
00:28:48,520 --> 00:28:51,400
Speaker 1: but also have some income coming from that property as well.

656
00:28:51,600 --> 00:28:52,800
Speaker 1: There's a lot of things to stick through, and I

657
00:28:52,800 --> 00:28:54,080
Speaker 1: think one of the things you said, Matt, too, is

658
00:28:54,080 --> 00:28:56,680
Speaker 1: giving future you more options. When we say that, we

659
00:28:56,760 --> 00:29:00,680
Speaker 1: don't just mean the retired you at age sixty five

660
00:29:00,720 --> 00:29:03,440
Speaker 1: or seventy. We mean kind of growing that margin over

661
00:29:03,480 --> 00:29:05,800
Speaker 1: time in saving some investments so that you can take

662
00:29:05,800 --> 00:29:07,520
Speaker 1: a sabbatical at some point if you want, So that

663
00:29:07,560 --> 00:29:10,840
Speaker 1: you can take a lower paying, less stressful job at

664
00:29:10,840 --> 00:29:12,800
Speaker 1: some point, so you can start your own business if

665
00:29:12,800 --> 00:29:15,600
Speaker 1: that's what you want. It's not just about forty years

666
00:29:15,600 --> 00:29:19,040
Speaker 1: in the future, right, It's about all the incremental places. Well, yeah, this, Yeah,

667
00:29:19,080 --> 00:29:20,400
Speaker 1: we talked about this like a few weeks ago on

668
00:29:20,400 --> 00:29:22,360
Speaker 1: a Friday flight. It's not just forty years from now,

669
00:29:22,360 --> 00:29:24,000
Speaker 1: it's not even twenty years from now, it's like literally

670
00:29:24,080 --> 00:29:26,120
Speaker 1: next year. Yeah, your ability.

671
00:29:25,680 --> 00:29:29,200
Speaker 2: To not sign up for a student not a student loan,

672
00:29:29,240 --> 00:29:31,280
Speaker 2: you would never do that, a car loan where you've

673
00:29:31,280 --> 00:29:33,840
Speaker 2: got massive payments going out. Guess what that frees you

674
00:29:33,920 --> 00:29:36,960
Speaker 2: up to consider this other job offer that maybe seems

675
00:29:36,960 --> 00:29:39,200
Speaker 2: a little more risky, but is way more fulfilling and

676
00:29:39,320 --> 00:29:41,360
Speaker 2: something that you're way more excited about because you don't

677
00:29:41,400 --> 00:29:45,400
Speaker 2: have a massive mortgage payment because you maybe move too

678
00:29:45,440 --> 00:29:47,440
Speaker 2: soon on a home, you don't have an expensive car

679
00:29:47,480 --> 00:29:49,560
Speaker 2: that you have to keep up with and make payments on.

680
00:29:49,840 --> 00:29:53,280
Speaker 2: It's even like as soon as next year, the all

681
00:29:53,320 --> 00:29:56,160
Speaker 2: the different options that you're gonna have, maybe you'll have

682
00:29:56,200 --> 00:29:58,760
Speaker 2: even bigger problems. Like our next listener who's trying to

683
00:29:58,760 --> 00:30:02,000
Speaker 2: figure out the best way to opt demises tax situation,

684
00:30:02,120 --> 00:30:04,760
Speaker 2: essentially to pay the least in taxes possible.

685
00:30:05,360 --> 00:30:09,480
Speaker 5: Hey guys, this is Eric from Eugene, Oregon, and I

686
00:30:09,520 --> 00:30:13,120
Speaker 5: have a question about to wroth or not to wroth.

687
00:30:14,360 --> 00:30:17,160
Speaker 5: So my wife and I are maxing out our traditional

688
00:30:17,200 --> 00:30:21,880
Speaker 5: four oh one ks. We're also fully contributing to WROTH.

689
00:30:22,040 --> 00:30:23,680
Speaker 5: I raise and an.

690
00:30:23,680 --> 00:30:28,280
Speaker 6: HSA, And when I was doing my twenty twenty three taxes,

691
00:30:28,320 --> 00:30:31,680
Speaker 6: I decided to do a test and see what the

692
00:30:31,720 --> 00:30:35,680
Speaker 6: tax implications would be if we had done a wroth

693
00:30:35,720 --> 00:30:39,200
Speaker 6: for one K instead of traditional, and so essentially it

694
00:30:39,280 --> 00:30:43,760
Speaker 6: increased our taxable income by forty five thousand between the

695
00:30:43,760 --> 00:30:48,840
Speaker 6: two of us. And on that, the difference between the

696
00:30:48,880 --> 00:30:51,880
Speaker 6: tax refund that we get the way we're currently doing

697
00:30:51,880 --> 00:30:55,800
Speaker 6: it versus the taxes that we would owe if we

698
00:30:55,800 --> 00:30:58,440
Speaker 6: were doing a wroth four oh one K ended up

699
00:30:58,440 --> 00:31:02,680
Speaker 6: being around nineteen thousand and three hundred dollars. And so

700
00:31:02,760 --> 00:31:06,080
Speaker 6: my question is, at that kind of a cost, should

701
00:31:06,120 --> 00:31:09,560
Speaker 6: I still be considering doing a wroth for one K?

702
00:31:10,560 --> 00:31:13,640
Speaker 6: My gut reaction would be to just pocket that money

703
00:31:14,280 --> 00:31:17,760
Speaker 6: and continue doing traditional for one K. But I'd like

704
00:31:17,800 --> 00:31:19,200
Speaker 6: to hear your guys' thoughts on it.

705
00:31:19,480 --> 00:31:22,360
Speaker 1: Thank you, Matt. This is a test of the emergency

706
00:31:22,400 --> 00:31:24,840
Speaker 1: wroth system. Does it work? I don't know? Sorry, just

707
00:31:25,520 --> 00:31:27,480
Speaker 1: that's what made me think because he said he's a test.

708
00:31:27,640 --> 00:31:29,880
Speaker 1: You remember the emergency alerts is a test? Yeah, this

709
00:31:30,000 --> 00:31:31,440
Speaker 1: is only a test. Did you what?

710
00:31:31,520 --> 00:31:31,680
Speaker 3: It was?

711
00:31:31,680 --> 00:31:32,880
Speaker 1: In the most monotone voice.

712
00:31:32,680 --> 00:31:34,840
Speaker 2: Possible, So we never had was it. It wasn't that

713
00:31:34,880 --> 00:31:38,240
Speaker 2: long ago that they sent out the cell phone emergency

714
00:31:38,280 --> 00:31:41,080
Speaker 2: alerts like nationwide, and neither one of us I think

715
00:31:41,120 --> 00:31:42,840
Speaker 2: had our phones on for that, because I think we

716
00:31:42,880 --> 00:31:46,080
Speaker 2: intentionally turned them off because we knew we were an interview. Yeah,

717
00:31:46,360 --> 00:31:48,320
Speaker 2: so I don't know what that sounds like me neither. Yeah,

718
00:31:48,360 --> 00:31:49,160
Speaker 2: I'm sure it was pleasant.

719
00:31:49,280 --> 00:31:51,640
Speaker 1: Big props to Eric, by the way. I mean similarly,

720
00:31:51,680 --> 00:31:53,640
Speaker 1: I think just how money listeners man like, so many

721
00:31:53,680 --> 00:31:57,400
Speaker 1: of them are dollar crushing, crushing, and Eric is also

722
00:31:58,040 --> 00:32:00,400
Speaker 1: doing great, and so the question isn't about trying to

723
00:32:00,440 --> 00:32:03,800
Speaker 1: do more, it's about optimization. And based on the quick

724
00:32:03,880 --> 00:32:06,680
Speaker 1: calculations in my head, I'd say that Eric has to

725
00:32:06,680 --> 00:32:09,120
Speaker 1: be investing like sixty thousand dollars a year.

726
00:32:09,280 --> 00:32:12,760
Speaker 2: He's maxing out all the accounts. Yeah, like sounds like

727
00:32:12,880 --> 00:32:16,400
Speaker 2: him and his wife we're maxing up four waks and

728
00:32:16,560 --> 00:32:17,480
Speaker 2: HSA is right.

729
00:32:17,480 --> 00:32:19,920
Speaker 1: I mean it's probably more than sixty thousand, which is impressive.

730
00:32:20,120 --> 00:32:22,920
Speaker 1: And so, yeah, the saying more money more problems comes

731
00:32:22,920 --> 00:32:25,479
Speaker 1: to mind here because then when you're talking about, you know,

732
00:32:25,520 --> 00:32:28,960
Speaker 1: significant levels of income and kind of trying to save

733
00:32:29,080 --> 00:32:31,640
Speaker 1: on taxes add some stress. I mean, it's the good.

734
00:32:31,600 --> 00:32:34,040
Speaker 2: Kind of stress, because there are much worse kinds of stress,

735
00:32:34,080 --> 00:32:36,440
Speaker 2: like not having enough money. Right, So you're in a

736
00:32:36,480 --> 00:32:40,800
Speaker 2: good spot, But tax minimization is well worth thinking through. Really,

737
00:32:40,880 --> 00:32:43,240
Speaker 2: why pay taxes that you don't have to pay or

738
00:32:43,280 --> 00:32:45,800
Speaker 2: pay more than is necessary? And I think Matt specifically,

739
00:32:45,800 --> 00:32:48,000
Speaker 2: what we're talking about here too, is not just the

740
00:32:48,200 --> 00:32:49,959
Speaker 2: way to save the most amount of tax in a

741
00:32:50,040 --> 00:32:52,640
Speaker 2: single given year, but it's about the way to minimize

742
00:32:52,680 --> 00:32:57,120
Speaker 2: your tax burden from like over a timeframe of many decades. Totally,

743
00:32:57,160 --> 00:32:59,840
Speaker 2: I think so. Bottom line, I think Eric's gut reaction

744
00:33:00,320 --> 00:33:03,120
Speaker 2: is correct, and not just because it's tough to stomach

745
00:33:03,720 --> 00:33:07,200
Speaker 2: paying this extra twenty thousand dollars in tax each and

746
00:33:07,240 --> 00:33:08,920
Speaker 2: every year, but it's because of the rate that you're

747
00:33:08,960 --> 00:33:11,160
Speaker 2: being taxed on those dollars. So every dollar that you

748
00:33:11,240 --> 00:33:14,480
Speaker 2: move from a traditional to a ROTH account, that'll likely

749
00:33:14,520 --> 00:33:16,640
Speaker 2: get taxed at the twenty four percent tax rate, which

750
00:33:16,680 --> 00:33:19,560
Speaker 2: is as it's not the lowest bracket. I'll say that, right.

751
00:33:19,640 --> 00:33:21,120
Speaker 2: But the key to this question isn't just what your

752
00:33:21,160 --> 00:33:23,440
Speaker 2: tax bracket is today, what the rates are today, but

753
00:33:23,480 --> 00:33:26,080
Speaker 2: it's what bracket that you're likely to be in when

754
00:33:26,120 --> 00:33:30,040
Speaker 2: you retire and will you have years of significantly reduced

755
00:33:30,040 --> 00:33:32,400
Speaker 2: income in the years leading up to retirement, that might

756
00:33:32,440 --> 00:33:37,040
Speaker 2: allow you to make some safe and backdoor wroth conversions

757
00:33:37,280 --> 00:33:40,040
Speaker 2: if that might be more advantageous to your overall situation

758
00:33:40,200 --> 00:33:42,719
Speaker 2: with the amount that Eric is currently saving and investing,

759
00:33:42,760 --> 00:33:45,400
Speaker 2: and makes me think early retirement could be on the horizon.

760
00:33:45,520 --> 00:33:47,360
Speaker 2: So you're right, like, if you have some of those

761
00:33:47,720 --> 00:33:51,160
Speaker 2: lower income years leading up to retirement, you are going

762
00:33:51,160 --> 00:33:53,040
Speaker 2: to find yourself in a much lower tax bracket than

763
00:33:53,080 --> 00:33:55,680
Speaker 2: you are in currently, and so getting the tax break

764
00:33:55,720 --> 00:33:56,719
Speaker 2: now makes more sense. Right.

765
00:33:56,760 --> 00:33:59,440
Speaker 1: That to me, that is the crucial part, because again,

766
00:33:59,480 --> 00:34:02,280
Speaker 1: the goal is to pay the lowest overall tax rate.

767
00:34:02,320 --> 00:34:04,960
Speaker 1: It's not about just a single given year. It's about

768
00:34:05,040 --> 00:34:09,040
Speaker 1: kind of lifetime strategic planning. And that might mean paying

769
00:34:09,040 --> 00:34:11,680
Speaker 1: more tax now in twenty twenty three or twenty twenty

770
00:34:11,719 --> 00:34:15,200
Speaker 1: four to avoid taxation later. It can also mean the

771
00:34:15,200 --> 00:34:17,719
Speaker 1: exact opposite, right, So much depends on the thing what

772
00:34:17,840 --> 00:34:20,960
Speaker 1: your future looks like, and these things are hard to

773
00:34:20,960 --> 00:34:24,080
Speaker 1: predict with certainty. There's no exact clarity. We're all kind

774
00:34:24,080 --> 00:34:26,319
Speaker 1: of doing our best because part of that is the

775
00:34:26,360 --> 00:34:29,319
Speaker 1: tax code. What's that going to look like? We don't know,

776
00:34:29,560 --> 00:34:31,719
Speaker 1: we already know that the tax cuts and job deac

777
00:34:32,200 --> 00:34:36,040
Speaker 1: is set to expire. Well that actually happened. It's anybody's guess, right,

778
00:34:36,040 --> 00:34:38,280
Speaker 1: and so we're all doing our best with the information

779
00:34:38,440 --> 00:34:41,160
Speaker 1: that we have on hand. But thinking through your work

780
00:34:41,239 --> 00:34:43,640
Speaker 1: and your income goals I think can help influence the

781
00:34:43,680 --> 00:34:45,600
Speaker 1: route that you're deciding to take here totally.

782
00:34:45,600 --> 00:34:48,439
Speaker 2: And Eric, something else that's worth considering is that were

783
00:34:48,480 --> 00:34:50,800
Speaker 2: you to change your four win K contributions from a

784
00:34:50,840 --> 00:34:53,640
Speaker 2: traditional to roth one of the impacts of that is

785
00:34:53,640 --> 00:34:56,160
Speaker 2: that you might lose the ability to contribute to a

786
00:34:56,280 --> 00:34:59,719
Speaker 2: roth ira as well. Because those four win K contributions,

787
00:35:00,120 --> 00:35:03,799
Speaker 2: what do they do Well, they lower your AGI pretty significantly,

788
00:35:03,840 --> 00:35:06,080
Speaker 2: and so if you change them to roth four to

789
00:35:06,120 --> 00:35:09,000
Speaker 2: one k contributions, your AGA is going to skyrocket, and

790
00:35:09,360 --> 00:35:11,680
Speaker 2: considering how much you're investing, you're probably going to be

791
00:35:11,840 --> 00:35:16,400
Speaker 2: over the roth IRA contribution threshold, meaning that you can

792
00:35:16,440 --> 00:35:20,360
Speaker 2: actually invest less dollars overall within tax advantaged accounts. That

793
00:35:20,400 --> 00:35:22,799
Speaker 2: would be like a tierface emoji right here. Yeah, Yeah,

794
00:35:22,920 --> 00:35:25,120
Speaker 2: like basically prioritizing that traditional four one k that is

795
00:35:25,200 --> 00:35:28,160
Speaker 2: keeping that roth IRA door open. It is still an

796
00:35:28,160 --> 00:35:30,920
Speaker 2: option for you to continue to do that the HSA

797
00:35:31,000 --> 00:35:35,360
Speaker 2: is not impacted because it does not have income stipulations essentially,

798
00:35:35,440 --> 00:35:38,319
Speaker 2: but even still, like the Roth IRA, it's a bigger deal.

799
00:35:38,360 --> 00:35:40,960
Speaker 2: Like you're talking about between you and your partner fourteen

800
00:35:41,000 --> 00:35:44,080
Speaker 2: thousand dollars as opposed to like roughly eight within the

801
00:35:44,200 --> 00:35:47,200
Speaker 2: HSA for your entire family to contribute to an HSA. Yeah,

802
00:35:47,200 --> 00:35:49,239
Speaker 2: I like the idea of having all the options open,

803
00:35:49,239 --> 00:35:51,080
Speaker 2: and you're right, you close the door if you move

804
00:35:51,120 --> 00:35:55,120
Speaker 2: the traditional four one K contributions to Roth style contributions.

805
00:35:55,800 --> 00:35:59,120
Speaker 2: And plus, by the way, you're balancing your tax buckets

806
00:35:59,160 --> 00:36:01,920
Speaker 2: by having money in pre tax and post tax accounts.

807
00:36:02,160 --> 00:36:05,920
Speaker 2: Having money going into all the above is just provides

808
00:36:05,960 --> 00:36:08,319
Speaker 2: a lot of flexibility for your future. Right if you

809
00:36:08,320 --> 00:36:11,040
Speaker 2: were making less money, Matt and I would say, well,

810
00:36:11,080 --> 00:36:13,520
Speaker 2: the goal would be to contribute to only ROTH accounts

811
00:36:13,680 --> 00:36:16,160
Speaker 2: because you're locking in a super low tax rate. So

812
00:36:16,800 --> 00:36:19,960
Speaker 2: like Jordan, for instance, fresh out of school, I'm guessing

813
00:36:20,280 --> 00:36:23,320
Speaker 2: she's going to make more in the future. So right now, man, Jordan,

814
00:36:23,719 --> 00:36:24,399
Speaker 2: all Roth all.

815
00:36:24,360 --> 00:36:27,839
Speaker 1: The way ROTH makes more sense exactly earlier on in

816
00:36:27,880 --> 00:36:30,120
Speaker 1: your career you are and the less you earn. Unless

817
00:36:30,200 --> 00:36:32,560
Speaker 1: Jordan is just like so ridiculously smart. She's making like

818
00:36:32,719 --> 00:36:34,640
Speaker 1: four hundred g's coming right out of school, right, she

819
00:36:34,680 --> 00:36:37,399
Speaker 1: probably is. She probably is, So okay, take that hat, right.

820
00:36:37,640 --> 00:36:40,359
Speaker 1: So much depends on what your income is. But when

821
00:36:40,360 --> 00:36:42,440
Speaker 1: the tax man hands you lemon, go ahead and make

822
00:36:42,520 --> 00:36:44,759
Speaker 1: some lemonade, because you know, roth ira and four to

823
00:36:44,800 --> 00:36:47,800
Speaker 1: one K contributions are even more beneficial to those folks

824
00:36:47,800 --> 00:36:50,800
Speaker 1: in their early years. But because of where Eric stands

825
00:36:51,080 --> 00:36:53,040
Speaker 1: on the spectrum, I think a little bit of both

826
00:36:53,280 --> 00:36:55,400
Speaker 1: is in order. The traditional four one K combined with

827
00:36:55,400 --> 00:36:57,479
Speaker 1: the roth ira is just a match made in heaven

828
00:36:57,520 --> 00:37:00,440
Speaker 1: for him. And then by having money in the HSA,

829
00:37:00,520 --> 00:37:02,680
Speaker 1: the traditional four u K and the roth you're filling

830
00:37:02,760 --> 00:37:06,680
Speaker 1: up multiple buckets that have various withdrawal abilities and tax liabilities.

831
00:37:06,760 --> 00:37:09,640
Speaker 1: So you're kind of covering all your bases here as

832
00:37:09,640 --> 00:37:11,840
Speaker 1: far as kind of choosing your own adventure when it

833
00:37:11,840 --> 00:37:14,839
Speaker 1: comes to your tax rate in retirement. And we've talked

834
00:37:14,880 --> 00:37:17,439
Speaker 1: about this before too, Matt, just how the HSA has

835
00:37:17,560 --> 00:37:20,760
Speaker 1: different withdraw rules and they're more flexible about the timing

836
00:37:20,840 --> 00:37:23,239
Speaker 1: that you take those out. So if Eric is as

837
00:37:23,280 --> 00:37:26,560
Speaker 1: I suspect like, if he's aiming for early retirement, well

838
00:37:26,600 --> 00:37:28,520
Speaker 1: the hsa, is that other awesome vehicle to help you

839
00:37:28,600 --> 00:37:30,520
Speaker 1: be able to take those funds out before you reach

840
00:37:30,560 --> 00:37:31,120
Speaker 1: full retirement.

841
00:37:31,280 --> 00:37:33,520
Speaker 2: H heck yeah. But Joel, we've got more topics to

842
00:37:33,600 --> 00:37:35,799
Speaker 2: get too. We're gonna hear from a listener who's trying

843
00:37:35,800 --> 00:37:38,239
Speaker 2: to figure out what to do with a car now

844
00:37:38,239 --> 00:37:40,319
Speaker 2: that she is nearing the end of release. We'll get

845
00:37:40,360 --> 00:37:42,239
Speaker 2: to that and more right after this.

846
00:37:50,719 --> 00:37:52,400
Speaker 1: Back we'll back. We have more questions to get to,

847
00:37:52,520 --> 00:37:55,400
Speaker 1: including this one, the Facebook question of the week. If

848
00:37:55,440 --> 00:37:57,560
Speaker 1: you're not a member of the how to Money Facebook group,

849
00:37:57,640 --> 00:37:59,960
Speaker 1: please do go check it out. If you have money question,

850
00:38:00,680 --> 00:38:03,279
Speaker 1: your peers are helping you out in there, which is

851
00:38:03,360 --> 00:38:06,280
Speaker 1: a beautiful thing, all right, Matt. This one comes from Sandy.

852
00:38:06,360 --> 00:38:09,400
Speaker 1: She says, question about using your roth ira as an

853
00:38:09,440 --> 00:38:13,200
Speaker 1: emergency fund. I've heard numerous times that your contributions, if

854
00:38:13,200 --> 00:38:15,480
Speaker 1: you were to withdraw them pre retirement for an emergency,

855
00:38:15,520 --> 00:38:18,759
Speaker 1: for example, are not taxed. However, someone else told me

856
00:38:18,840 --> 00:38:20,680
Speaker 1: that it's only if the money is still in the

857
00:38:20,719 --> 00:38:23,279
Speaker 1: settlement fund. Once you use the money to purchase funds

858
00:38:23,320 --> 00:38:25,960
Speaker 1: to invest in, then any amount you remove early as

859
00:38:25,960 --> 00:38:28,080
Speaker 1: a result of selling some of that stock is subject

860
00:38:28,160 --> 00:38:31,000
Speaker 1: to tax. Is that correct. Right now, I keep my

861
00:38:31,120 --> 00:38:34,280
Speaker 1: emergency savings in a high yield savings account. But should

862
00:38:34,280 --> 00:38:36,319
Speaker 1: those savings interest rates drop like they did a couple

863
00:38:36,360 --> 00:38:38,439
Speaker 1: of years ago, I might consider using my roth ira

864
00:38:38,560 --> 00:38:41,239
Speaker 1: as a place to park my emergency fund. I just

865
00:38:41,239 --> 00:38:43,200
Speaker 1: want to make sure I know the rules if I

866
00:38:43,239 --> 00:38:45,399
Speaker 1: need to withdraw from that wroth account. All right, Sandy,

867
00:38:45,480 --> 00:38:47,959
Speaker 1: let's go ahead and kick this thing off. And first off,

868
00:38:48,160 --> 00:38:51,759
Speaker 1: what you were told just isn't true. So even if

869
00:38:51,800 --> 00:38:54,399
Speaker 1: you invest the dollars that you invest within a roth

870
00:38:54,440 --> 00:38:57,120
Speaker 1: ira or that you transfer to a roth iray, because

871
00:38:57,120 --> 00:38:59,799
Speaker 1: technically those dollars aren't invested yet until you actually buy

872
00:38:59,840 --> 00:39:03,160
Speaker 1: some thing. Even once you actually buy something within that

873
00:39:03,320 --> 00:39:06,120
Speaker 1: roth ira, you can still take out the contribution amount,

874
00:39:06,440 --> 00:39:08,400
Speaker 1: the actual dollar amount, at any point in the future

875
00:39:08,760 --> 00:39:12,000
Speaker 1: without any sort of tax or penalties attached. And so,

876
00:39:12,080 --> 00:39:14,600
Speaker 1: for instance, let's say you put five thousand dollars in

877
00:39:14,640 --> 00:39:16,160
Speaker 1: your rath ira.

878
00:39:16,040 --> 00:39:19,040
Speaker 2: A decade ago. Let's say you invested it fully in

879
00:39:19,280 --> 00:39:22,560
Speaker 2: VU my favorite sm P five hundred ETF, and now

880
00:39:22,600 --> 00:39:25,480
Speaker 2: it's worth twelve thousand dollars now because of a decade's

881
00:39:25,480 --> 00:39:28,680
Speaker 2: worth of market returns. Well, you can still sell five

882
00:39:28,719 --> 00:39:32,080
Speaker 2: thousand dollars worth and pull it out without any problems.

883
00:39:32,320 --> 00:39:34,400
Speaker 2: Uh So it's one of the it's one of the

884
00:39:34,440 --> 00:39:38,040
Speaker 2: cool aspects of rath IRA's, but it's actually it's potentially dangerous.

885
00:39:38,120 --> 00:39:41,200
Speaker 2: It's almost like a it's a double edged swordel because

886
00:39:41,239 --> 00:39:44,160
Speaker 2: it's I like that there's some optionality. We again, we

887
00:39:44,239 --> 00:39:47,839
Speaker 2: love for folks to have options, but there's a downside

888
00:39:47,880 --> 00:39:50,719
Speaker 2: to the fact that we have so much flexibility and choice.

889
00:39:50,800 --> 00:39:52,880
Speaker 1: Sometimes it can be a little too tempting, right depending

890
00:39:53,560 --> 00:39:57,359
Speaker 1: you might turn there quickly in a minor emergency when

891
00:39:57,520 --> 00:40:00,160
Speaker 1: you could have found other places to get the money,

892
00:40:00,280 --> 00:40:03,200
Speaker 1: and now you're robbing yourself of the work that those

893
00:40:03,320 --> 00:40:06,800
Speaker 1: dollars can do for your future, exactly inside of basically

894
00:40:06,800 --> 00:40:09,360
Speaker 1: one of the best accounts of all time. So I

895
00:40:09,400 --> 00:40:12,080
Speaker 1: think for a lot of people it's enticing to tap

896
00:40:12,160 --> 00:40:15,160
Speaker 1: retirement funds. We've talked about that happening in four to

897
00:40:15,160 --> 00:40:18,080
Speaker 1: one K's as well, Matt. Just people think that their

898
00:40:18,080 --> 00:40:20,759
Speaker 1: retirement accounts can be treated as a piggyback. Oh I'm

899
00:40:20,800 --> 00:40:24,200
Speaker 1: just paying myself back, no big deal. But because of

900
00:40:24,239 --> 00:40:27,919
Speaker 1: those small contribution limits for the roth Ira, you can't

901
00:40:27,960 --> 00:40:30,760
Speaker 1: go back and redo. You can't contribute for prior years.

902
00:40:31,000 --> 00:40:32,880
Speaker 1: You take it out, it's gone and it's hard to

903
00:40:32,880 --> 00:40:33,520
Speaker 1: get more money in.

904
00:40:33,560 --> 00:40:35,600
Speaker 2: The window has officially closed. That's right.

905
00:40:35,840 --> 00:40:40,400
Speaker 1: So with other retirement accounts too, people trigger tax issues

906
00:40:40,600 --> 00:40:43,160
Speaker 1: with those traditional retirement accounts, which create a headache on

907
00:40:43,200 --> 00:40:45,319
Speaker 1: top of that. So those are even worse to take

908
00:40:45,360 --> 00:40:47,040
Speaker 1: money out of. I think of it like this.

909
00:40:47,120 --> 00:40:50,080
Speaker 2: I think money that you pull out of a retirement

910
00:40:50,120 --> 00:40:54,760
Speaker 2: account is like putting those dollar bills on unemployment. You're making,

911
00:40:54,920 --> 00:40:57,480
Speaker 2: you know, one of the biggest investing mistakes, which is

912
00:40:57,600 --> 00:41:02,000
Speaker 2: interrupting compounding necessary unnecessarily you're saying, listen, I know you're

913
00:41:02,000 --> 00:41:03,879
Speaker 2: doing hard work in there, but why don't you chill

914
00:41:03,880 --> 00:41:05,279
Speaker 2: on the couch for a little bit, watch them like

915
00:41:05,840 --> 00:41:08,879
Speaker 2: you know, Afternoon TV, Judge, Little Judge, Judy, And maybe

916
00:41:08,920 --> 00:41:10,759
Speaker 2: some price is right that we get We'll get you

917
00:41:10,800 --> 00:41:12,440
Speaker 2: back in the game at some point, that's right. So

918
00:41:12,640 --> 00:41:15,680
Speaker 2: it's not a good idea to completely rely on your

919
00:41:15,680 --> 00:41:17,960
Speaker 2: wrath as an emergency fund, right, And that's one of

920
00:41:17,960 --> 00:41:22,399
Speaker 2: the concerns here is that Sandy mentioned parking emergency fund there.

921
00:41:22,880 --> 00:41:24,880
Speaker 2: That being said, I do think it's totally fine to

922
00:41:24,960 --> 00:41:27,799
Speaker 2: think of it as like a backup emergency fund. So

923
00:41:27,800 --> 00:41:29,359
Speaker 2: don't think of it as black and white, but think

924
00:41:29,360 --> 00:41:32,680
Speaker 2: of it almost like a there's a spectrum here. And

925
00:41:32,760 --> 00:41:35,200
Speaker 2: so my take is that investing more within a wroth

926
00:41:35,280 --> 00:41:37,760
Speaker 2: and it sounds like that's not something that you've done fully,

927
00:41:38,200 --> 00:41:40,600
Speaker 2: but that can actually help you to feel more comfortable

928
00:41:40,640 --> 00:41:43,719
Speaker 2: having less within a high old savings account. But we

929
00:41:43,760 --> 00:41:45,960
Speaker 2: still want you to have a little bit there in cash.

930
00:41:46,000 --> 00:41:48,759
Speaker 2: And so for instance, if you currently have a six

931
00:41:48,800 --> 00:41:51,000
Speaker 2: month emergency fund, well you might be able to cut

932
00:41:51,040 --> 00:41:54,680
Speaker 2: that down to just three to four months worth of savings.

933
00:41:55,160 --> 00:41:58,000
Speaker 2: If you've been investing regularly within your wrath for years,

934
00:41:58,360 --> 00:42:00,600
Speaker 2: hopefully you won't need to tap those funds there within

935
00:42:00,640 --> 00:42:03,120
Speaker 2: that wrath. But it's almost there, as like it's a

936
00:42:03,120 --> 00:42:05,120
Speaker 2: bat again, it's a backup. We want you to rely

937
00:42:05,239 --> 00:42:07,919
Speaker 2: on the liquid cash savings that you have there within

938
00:42:07,960 --> 00:42:10,480
Speaker 2: your savings account, but also for you to be able

939
00:42:10,480 --> 00:42:14,160
Speaker 2: to rest assured to sleep well at night knowing that, oh, well,

940
00:42:14,200 --> 00:42:16,440
Speaker 2: I also have some of this additional money that I

941
00:42:16,440 --> 00:42:19,520
Speaker 2: hope to never touch because I'm stealing from future me

942
00:42:19,680 --> 00:42:22,680
Speaker 2: by doing that, But it's there when push comes to schef.

943
00:42:22,400 --> 00:42:24,440
Speaker 1: It's kind of like having if you're a homeowner a

944
00:42:24,480 --> 00:42:27,680
Speaker 1: helock that you can tap, but being like that's a

945
00:42:27,960 --> 00:42:29,719
Speaker 1: that's a thing of let's like a last resort. I

946
00:42:29,719 --> 00:42:31,680
Speaker 1: don't want to take money out of a helock because

947
00:42:31,760 --> 00:42:33,839
Speaker 1: rates are eight percent or something like that. Like it's

948
00:42:33,880 --> 00:42:36,799
Speaker 1: not terribly enticing, but at least it gives you the

949
00:42:36,840 --> 00:42:38,480
Speaker 1: option then, so that you get.

950
00:42:38,360 --> 00:42:39,919
Speaker 2: A little bit of additional piece of money.

951
00:42:39,920 --> 00:42:41,600
Speaker 1: That's right. So I mean I kind of like the

952
00:42:41,640 --> 00:42:43,799
Speaker 1: idea of all the above, and I think you're right, Matt.

953
00:42:43,840 --> 00:42:47,040
Speaker 1: You can reduce your savings exposure a little bit, but

954
00:42:47,160 --> 00:42:49,160
Speaker 1: you don't want to take it down to zero or

955
00:42:49,200 --> 00:42:51,560
Speaker 1: to even just like one month worth of expenses. Yeah,

956
00:42:51,560 --> 00:42:53,719
Speaker 1: because the goal is to never touch the roth funds,

957
00:42:53,800 --> 00:42:56,440
Speaker 1: even though you have the ability to exactly It's so

958
00:42:56,480 --> 00:42:58,719
Speaker 1: some of it becomes down to how comfortable you are

959
00:42:58,800 --> 00:43:00,719
Speaker 1: with risk because.

960
00:43:00,520 --> 00:43:02,239
Speaker 2: Joel, I think a lot of folks who knew me

961
00:43:02,520 --> 00:43:04,520
Speaker 2: when my younger years would say, you are a very

962
00:43:04,600 --> 00:43:06,880
Speaker 2: risky individual. There have been times when I put my

963
00:43:06,960 --> 00:43:10,120
Speaker 2: life in perilous situations.

964
00:43:10,040 --> 00:43:11,080
Speaker 1: My physical health.

965
00:43:11,600 --> 00:43:14,080
Speaker 2: As I've gotten older, I've changed and not only am

966
00:43:14,120 --> 00:43:16,480
Speaker 2: I risky with too much with myself, but definitely not

967
00:43:16,520 --> 00:43:18,760
Speaker 2: with my money. And so personally, I am not willing

968
00:43:19,440 --> 00:43:22,840
Speaker 2: all of my full six plus months worth of emergency

969
00:43:22,840 --> 00:43:25,120
Speaker 2: funds are in a highal's aiming's account. That's not money

970
00:43:25,120 --> 00:43:27,359
Speaker 2: that I want to at all put at risk of

971
00:43:27,840 --> 00:43:30,479
Speaker 2: a fluctuations in the market and to have to sell

972
00:43:30,520 --> 00:43:33,000
Speaker 2: when the market's down, but b to miss out on

973
00:43:33,040 --> 00:43:35,120
Speaker 2: the future returns of those dollars were the market to

974
00:43:35,160 --> 00:43:37,799
Speaker 2: continue to climb. And so some of again you have

975
00:43:37,840 --> 00:43:40,840
Speaker 2: to kind of consider yourself and what feels risky to

976
00:43:40,880 --> 00:43:43,200
Speaker 2: you or not. I think it is self employed individuals too,

977
00:43:43,360 --> 00:43:45,400
Speaker 2: And because I feel like that's us, I feel like

978
00:43:45,400 --> 00:43:47,720
Speaker 2: I have to have more money, more cash on hand

979
00:43:48,200 --> 00:43:50,839
Speaker 2: than I previously had to have in a W two job.

980
00:43:51,000 --> 00:43:54,399
Speaker 2: Just the swings are different, the pay is far more irregular. Yeah,

981
00:43:54,440 --> 00:43:57,719
Speaker 2: So it just I think everybody's situation is different. That's

982
00:43:57,719 --> 00:44:00,120
Speaker 2: why three to six months is a big difference in

983
00:44:00,200 --> 00:44:02,000
Speaker 2: kind of that suggestion of what you should have on hand,

984
00:44:02,080 --> 00:44:04,720
Speaker 2: But so much depends on your personal situation. Are you married,

985
00:44:04,760 --> 00:44:07,960
Speaker 2: dual income, no kids with options to fall back on?

986
00:44:08,239 --> 00:44:10,480
Speaker 2: Cool you probably needed the very short end of this

987
00:44:10,560 --> 00:44:12,319
Speaker 2: seem more like a three month emergency kind of person.

988
00:44:12,719 --> 00:44:16,719
Speaker 2: Are you a single income, self employed four kids individual

989
00:44:16,800 --> 00:44:19,319
Speaker 2: like myself. All right, I'm more of the nine to

990
00:44:19,360 --> 00:44:22,359
Speaker 2: honestly nine to twelve months living to be fatter for sure. Yeah,

991
00:44:22,400 --> 00:44:24,640
Speaker 2: all right, let's get to one last topic. This is

992
00:44:24,680 --> 00:44:27,279
Speaker 2: an email from listener and and she wrote, I am

993
00:44:27,320 --> 00:44:28,840
Speaker 2: at the end of my lease and I'm going to

994
00:44:28,880 --> 00:44:31,399
Speaker 2: purchase the car. My question is where is the best

995
00:44:31,400 --> 00:44:34,800
Speaker 2: place to go for a small personal loan around fourteen

996
00:44:34,800 --> 00:44:37,840
Speaker 2: thousand dollars. My credit score is seven hundred and sixty

997
00:44:37,960 --> 00:44:40,440
Speaker 2: on credit Karma. I have a ton of offers and

998
00:44:40,480 --> 00:44:43,000
Speaker 2: the interest rates are about nine and a half percent.

999
00:44:43,320 --> 00:44:46,279
Speaker 2: Is that good? What you think, Joel? Nine half percent good?

1000
00:44:46,320 --> 00:44:47,359
Speaker 1: First, I like the credit score.

1001
00:44:47,440 --> 00:44:47,839
Speaker 2: That's good.

1002
00:44:47,920 --> 00:44:50,000
Speaker 1: Seven sixty nice, that's impressive and solid.

1003
00:44:50,040 --> 00:44:51,880
Speaker 2: That's where you want to be. I said, get the

1004
00:44:51,880 --> 00:44:54,600
Speaker 2: best products. Seven sixty plus. You're gonna get the best rates.

1005
00:44:54,680 --> 00:44:57,280
Speaker 1: Like nobody's gonna say, oh, if you're only eight hundred,

1006
00:44:57,480 --> 00:45:00,239
Speaker 1: nobody cares about that. Like seven sixty plus, you're going

1007
00:45:00,280 --> 00:45:01,560
Speaker 1: to get access to the best rate. So it is

1008
00:45:01,640 --> 00:45:03,840
Speaker 1: nine and a half percent good. We'll talk about that

1009
00:45:03,880 --> 00:45:05,640
Speaker 1: in just a second, But first let's talk about buying

1010
00:45:05,680 --> 00:45:08,600
Speaker 1: out a lease. Not sure not to stock smack here,

1011
00:45:08,760 --> 00:45:11,400
Speaker 1: but leasing is not something we're fans of, So I

1012
00:45:11,440 --> 00:45:14,319
Speaker 1: would just say for everyone else listening, avoiding the lease

1013
00:45:14,360 --> 00:45:16,600
Speaker 1: in the first place is something that we just want

1014
00:45:16,640 --> 00:45:19,600
Speaker 1: to point out, like not leasing cars. Leasing cars is

1015
00:45:19,640 --> 00:45:22,560
Speaker 1: not typically almost never done for as like a smart

1016
00:45:22,600 --> 00:45:25,000
Speaker 1: financial move. It's done as a lifestyle move. Like I

1017
00:45:25,040 --> 00:45:27,000
Speaker 1: like to get a new car every two years, and

1018
00:45:27,400 --> 00:45:29,040
Speaker 1: you know, you might take less of a hit leasing

1019
00:45:29,239 --> 00:45:31,480
Speaker 1: than buying a new car and selling it, but you

1020
00:45:31,560 --> 00:45:33,920
Speaker 1: got to run the numbers. And even still we like

1021
00:45:33,920 --> 00:45:36,080
Speaker 1: hold cars. But what's done is done right, and hopefully

1022
00:45:36,120 --> 00:45:39,120
Speaker 1: you can do well here by buying this car and

1023
00:45:39,160 --> 00:45:41,200
Speaker 1: holding on to it for a long time. Because of

1024
00:45:41,239 --> 00:45:43,960
Speaker 1: the funky car market, we've had a lot of folks

1025
00:45:43,960 --> 00:45:46,160
Speaker 1: who leased a car years ago are finding that their

1026
00:45:46,160 --> 00:45:48,560
Speaker 1: car is worth more than the buyout price, which is

1027
00:45:48,600 --> 00:45:51,760
Speaker 1: kind of awesome, sometimes to the tune of thousands of dollars.

1028
00:45:52,160 --> 00:45:54,399
Speaker 1: So listener and I would say, even if you don't

1029
00:45:54,440 --> 00:45:56,879
Speaker 1: want to keep the car, buying it so you can

1030
00:45:56,920 --> 00:45:58,880
Speaker 1: sell it and pocket the difference might be advisable.

1031
00:45:58,880 --> 00:45:59,080
Speaker 2: Matt.

1032
00:45:59,120 --> 00:46:01,560
Speaker 1: This is how roogal Moveau's what people were doing. They

1033
00:46:01,560 --> 00:46:04,080
Speaker 1: weren't turning the car back over to the dealership because

1034
00:46:04,239 --> 00:46:05,919
Speaker 1: they were like, wait a second, there's like a big

1035
00:46:06,000 --> 00:46:08,840
Speaker 1: gap here. I'm going to make more money by buying

1036
00:46:08,840 --> 00:46:10,600
Speaker 1: it myself and then reselling it myself.

1037
00:46:10,640 --> 00:46:12,400
Speaker 2: Now I like that because there's like a little bit

1038
00:46:12,440 --> 00:46:15,879
Speaker 2: of smart money move. There's an arbitrage going on here, right,

1039
00:46:15,920 --> 00:46:18,400
Speaker 2: So you've got the ability to potentially score a massive

1040
00:46:18,400 --> 00:46:21,759
Speaker 2: deal here and maybe even end up with extra money

1041
00:46:21,800 --> 00:46:25,000
Speaker 2: in your pocket. But I think another situation where this

1042
00:46:25,080 --> 00:46:26,799
Speaker 2: might make more sense too, is if you are way

1043
00:46:26,880 --> 00:46:29,840
Speaker 2: under or way over on the miles driven, that's going

1044
00:46:29,920 --> 00:46:32,600
Speaker 2: to have a pretty big impact. And plus, like when

1045
00:46:32,640 --> 00:46:34,040
Speaker 2: it comes to the actual vehicle, you do know the

1046
00:46:34,080 --> 00:46:37,200
Speaker 2: maintenance history, you know what the car is likely to

1047
00:46:37,320 --> 00:46:39,239
Speaker 2: need in the coming years, And so I think for

1048
00:46:39,320 --> 00:46:41,880
Speaker 2: a lot of folks there's some assurance there knowing what

1049
00:46:41,960 --> 00:46:45,080
Speaker 2: it is that they're getting into. And we're not sure

1050
00:46:45,120 --> 00:46:47,759
Speaker 2: of the specific making model that she's mentioning here, but

1051
00:46:47,800 --> 00:46:51,640
Speaker 2: fourteen thousand dollars that's not an unreasonable amount for a

1052
00:46:51,719 --> 00:46:53,560
Speaker 2: gently used car these days. That is true.

1053
00:46:53,680 --> 00:46:56,040
Speaker 1: No, the car market had kind of went insane there,

1054
00:46:56,080 --> 00:46:57,000
Speaker 1: popped off for a little while.

1055
00:46:57,000 --> 00:46:59,719
Speaker 2: Things have kind of things they're coming back down to normal.

1056
00:46:59,800 --> 00:47:01,919
Speaker 1: See, yeah, all right, but when it comes to borrowing money,

1057
00:47:01,920 --> 00:47:04,359
Speaker 1: That's what we need to talk about, because Ann's got

1058
00:47:04,360 --> 00:47:07,240
Speaker 1: to find a way to finance the rest of this car.

1059
00:47:07,600 --> 00:47:10,359
Speaker 2: I mean, or she doesn't, or she get just turn

1060
00:47:10,440 --> 00:47:12,600
Speaker 2: it back in, not buy the thing, and just maybe

1061
00:47:12,640 --> 00:47:15,680
Speaker 2: maybe she just buys a Beater met for like possible

1062
00:47:16,120 --> 00:47:16,560
Speaker 2: three thousand.

1063
00:47:16,719 --> 00:47:18,080
Speaker 1: She knows and likes this car, and if she's gonna

1064
00:47:18,080 --> 00:47:19,799
Speaker 1: own it a long time, I think she can find

1065
00:47:19,840 --> 00:47:22,160
Speaker 1: a way to finance it and then just prioritize paying

1066
00:47:22,160 --> 00:47:26,200
Speaker 1: it off quickly. Right, So, yeah, I'd suggest shopping around

1067
00:47:26,200 --> 00:47:28,319
Speaker 1: with the little local credit union or two lots of times.

1068
00:47:28,560 --> 00:47:30,120
Speaker 1: You can just go on their websites and find out

1069
00:47:30,160 --> 00:47:32,160
Speaker 1: what their rates are, and then you can say, oh, cool,

1070
00:47:32,200 --> 00:47:34,560
Speaker 1: that's good. This is better than that one. And yeah,

1071
00:47:34,800 --> 00:47:36,600
Speaker 1: do you have to become a member of that credit union,

1072
00:47:36,640 --> 00:47:38,759
Speaker 1: but typically that means like twenty bucks in the same

1073
00:47:38,800 --> 00:47:41,680
Speaker 1: mus account and you're a member. I'd also go to

1074
00:47:41,760 --> 00:47:43,959
Speaker 1: a site called my Auto Loan dot com. They seem

1075
00:47:44,000 --> 00:47:46,960
Speaker 1: to be the best online car refinance aggregator, and they

1076
00:47:47,000 --> 00:47:49,200
Speaker 1: don't charge some of the pesky fees at the other

1077
00:47:49,239 --> 00:47:51,719
Speaker 1: site's charge and so and you mentioned you're getting quotes

1078
00:47:51,719 --> 00:47:53,960
Speaker 1: close to ten percent right now. But you've got a

1079
00:47:53,960 --> 00:47:55,719
Speaker 1: top notch credit score, so we think you might be

1080
00:47:55,719 --> 00:47:57,720
Speaker 1: able to shave that rate down by a couple of points.

1081
00:47:58,040 --> 00:48:03,280
Speaker 1: And every point you on the loan means a smaller

1082
00:48:03,360 --> 00:48:06,640
Speaker 1: monthly payment, means that you're paying less in interest, and

1083
00:48:06,760 --> 00:48:08,200
Speaker 1: just means that the car is more of a deal.

1084
00:48:08,320 --> 00:48:10,359
Speaker 2: That's right. Yeah, So I don't know if you can

1085
00:48:10,400 --> 00:48:12,040
Speaker 2: tell from my last comment that I am not a

1086
00:48:12,040 --> 00:48:14,680
Speaker 2: fan of car loans, but no need to cry over

1087
00:48:14,719 --> 00:48:17,239
Speaker 2: spilt milk care. Like, we're looking forward and I would

1088
00:48:17,280 --> 00:48:19,240
Speaker 2: love to see and hold a yard sale, make yourself

1089
00:48:19,239 --> 00:48:21,759
Speaker 2: a few thousand bucks, and then you know, reduce That's

1090
00:48:21,800 --> 00:48:25,160
Speaker 2: what I'm talking about. Yeah, So, if you are going

1091
00:48:25,160 --> 00:48:27,720
Speaker 2: to get a loan, aside from finding all the different

1092
00:48:27,719 --> 00:48:30,680
Speaker 2: ways where you can cut that amount down, it's not

1093
00:48:30,800 --> 00:48:34,040
Speaker 2: just about getting the best rate and reducing your monthly payment.

1094
00:48:34,040 --> 00:48:35,759
Speaker 2: We would also love to see you lean towards a

1095
00:48:35,840 --> 00:48:38,359
Speaker 2: shorter loan term. I think that's really important because if

1096
00:48:38,360 --> 00:48:40,399
Speaker 2: you can handle the payment, I would love to see

1097
00:48:40,680 --> 00:48:43,200
Speaker 2: you get out from under that car loan as soon

1098
00:48:43,239 --> 00:48:46,040
Speaker 2: as possible. Like I'm talking about a twenty four month

1099
00:48:46,280 --> 00:48:50,120
Speaker 2: loan rather than a thirty six a forty eight or

1100
00:48:50,160 --> 00:48:52,160
Speaker 2: even longer worse option.

1101
00:48:52,040 --> 00:48:53,760
Speaker 1: Define I don't want to go longer, my goodness.

1102
00:48:53,760 --> 00:48:55,600
Speaker 2: So that's going to mean that you're gonna pay less

1103
00:48:55,640 --> 00:48:58,120
Speaker 2: overall and interest, but you'll also own that car free

1104
00:48:58,120 --> 00:49:00,919
Speaker 2: and clear for longer, which is then going to allow

1105
00:49:00,920 --> 00:49:03,640
Speaker 2: you to start saving up for that next vehicle, for

1106
00:49:03,719 --> 00:49:06,240
Speaker 2: the next vehicle. And I know that sounds a little

1107
00:49:07,080 --> 00:49:08,800
Speaker 2: premature because you're like, wait a minute, guys, I'm just

1108
00:49:08,880 --> 00:49:10,840
Speaker 2: talking about this car. But we want to get you

1109
00:49:10,880 --> 00:49:13,440
Speaker 2: ahead of that cycle of that saving and buying. Like

1110
00:49:13,480 --> 00:49:15,880
Speaker 2: right now you're in this you're behind it right like

1111
00:49:15,920 --> 00:49:18,120
Speaker 2: you've you got essentially you've bought it, and now you're

1112
00:49:18,120 --> 00:49:19,960
Speaker 2: paying for it kind of cycle. We want you to

1113
00:49:19,960 --> 00:49:21,680
Speaker 2: pay for it and then buy it, like we want

1114
00:49:21,719 --> 00:49:23,520
Speaker 2: you to save for it and then buy it. We

1115
00:49:23,560 --> 00:49:24,799
Speaker 2: want to get you on the front end of that

1116
00:49:24,840 --> 00:49:26,839
Speaker 2: as opposed to like, right now, it feels like you're

1117
00:49:26,880 --> 00:49:29,239
Speaker 2: kind of getting drug behind the vehicle, like and you're like,

1118
00:49:29,280 --> 00:49:31,040
Speaker 2: oh god, I gotta find a way to keep this thing.

1119
00:49:31,920 --> 00:49:34,040
Speaker 2: I got to stay current on my payments. As opposed

1120
00:49:34,080 --> 00:49:36,520
Speaker 2: to you being in charge, you socking the money aside

1121
00:49:36,600 --> 00:49:38,959
Speaker 2: in your own high yield savings where you are earning interest,

1122
00:49:39,040 --> 00:49:41,640
Speaker 2: not paying interest, and then boom, next car. We want

1123
00:49:41,640 --> 00:49:42,359
Speaker 2: to see you paying cash.

1124
00:49:42,400 --> 00:49:44,279
Speaker 1: Yeah, so paying it off more quickly. I think you're right, Matt.

1125
00:49:44,360 --> 00:49:46,799
Speaker 1: That's like the goal here. And then yeah, continue making

1126
00:49:46,840 --> 00:49:49,080
Speaker 1: those payments, but make them to yourself into the high

1127
00:49:49,120 --> 00:49:51,319
Speaker 1: old savings account. I love that, so that you in

1128
00:49:51,880 --> 00:49:53,160
Speaker 1: Hopefully you don't even need to buy a car in

1129
00:49:53,160 --> 00:49:55,520
Speaker 1: three years, because this is still a brand new baby.

1130
00:49:55,520 --> 00:49:58,000
Speaker 1: It sounds like five, seven, ten years from now. But

1131
00:49:58,200 --> 00:49:59,680
Speaker 1: think about how much money you're gonna have saved if

1132
00:49:59,719 --> 00:50:01,960
Speaker 1: you keep that payment but paid to yourself instead. Yeah,

1133
00:50:01,960 --> 00:50:03,480
Speaker 1: you're gonna have the cash on hand to buy it

1134
00:50:03,680 --> 00:50:04,040
Speaker 1: out right.

1135
00:50:04,239 --> 00:50:06,640
Speaker 2: It'll it'll be a car that flies because it'll be

1136
00:50:06,640 --> 00:50:07,320
Speaker 2: so far in the future.

1137
00:50:07,360 --> 00:50:10,040
Speaker 1: We have jetpackson, I hope. So all right, man, let's.

1138
00:50:09,920 --> 00:50:12,319
Speaker 2: Get back to the beer you and I enjoyed. Waken Bake.

1139
00:50:12,640 --> 00:50:15,880
Speaker 2: This is a beer by Terrapin Beer Company. What'd you think, Buddy?

1140
00:50:15,920 --> 00:50:18,480
Speaker 1: I like this one. I It's this is a classic.

1141
00:50:18,520 --> 00:50:20,799
Speaker 2: This this beer has been around for it feels like

1142
00:50:20,800 --> 00:50:22,439
Speaker 2: as long as I've been alive, although that's not true.

1143
00:50:22,480 --> 00:50:24,200
Speaker 2: It's kind of like one of the original It's a

1144
00:50:24,360 --> 00:50:25,640
Speaker 2: it's an original og.

1145
00:50:26,000 --> 00:50:28,720
Speaker 1: Craft beer, especially if you live in the South. It's

1146
00:50:28,800 --> 00:50:31,399
Speaker 1: particularly in the state of Georgia. This beers has been

1147
00:50:31,480 --> 00:50:33,200
Speaker 1: kind of a classic staple of the craft beer scene.

1148
00:50:33,239 --> 00:50:35,160
Speaker 2: You know what's funny is I think it was I

1149
00:50:35,200 --> 00:50:37,560
Speaker 2: still remember a friend coming over for dinner this like,

1150
00:50:37,760 --> 00:50:40,360
Speaker 2: oh my gosh, forever ago and he's like, hey, guys,

1151
00:50:40,560 --> 00:50:42,960
Speaker 2: I think this is back when waken bake. Maybe it

1152
00:50:43,000 --> 00:50:45,879
Speaker 2: was seasonal or I don't know, but he came over

1153
00:50:45,920 --> 00:50:47,799
Speaker 2: with it and he had just snagged some because it

1154
00:50:47,840 --> 00:50:49,959
Speaker 2: was hard to get your hands on some of these

1155
00:50:50,280 --> 00:50:53,440
Speaker 2: more interesting, tasty, unique beers back in the day, right,

1156
00:50:53,560 --> 00:50:55,400
Speaker 2: And I just remember being so pumped. I was like, Gary,

1157
00:50:56,239 --> 00:51:00,319
Speaker 2: how did you know we certainly enjoyed some waken bit Yeah.

1158
00:51:00,360 --> 00:51:02,200
Speaker 1: And this one because it's got coffee and it it's

1159
00:51:02,200 --> 00:51:04,759
Speaker 1: got this like the bitter coffee notes coming through put

1160
00:51:04,760 --> 00:51:07,440
Speaker 1: in like the most pleasant way. So I like the

1161
00:51:07,480 --> 00:51:10,319
Speaker 1: coffee oatmeal kind of the way they play off each other.

1162
00:51:10,480 --> 00:51:13,799
Speaker 1: And it's I mean, it's like the beer form of

1163
00:51:13,880 --> 00:51:15,520
Speaker 1: a Christmas cookie that you want to drink in some

1164
00:51:15,560 --> 00:51:16,000
Speaker 1: ways too.

1165
00:51:16,200 --> 00:51:16,600
Speaker 2: I don't know.

1166
00:51:16,640 --> 00:51:17,600
Speaker 1: I like this beer.

1167
00:51:17,800 --> 00:51:19,400
Speaker 2: I think it brings back such good memories. Yeah, I

1168
00:51:19,440 --> 00:51:21,759
Speaker 2: think it's perfectly balanced. It's got those bitter roasty notes

1169
00:51:21,800 --> 00:51:24,360
Speaker 2: that you get from that jittery Joe's coffee.

1170
00:51:24,400 --> 00:51:25,920
Speaker 1: But it's still it's a bigger stout.

1171
00:51:26,239 --> 00:51:28,719
Speaker 2: It's an Imperial and so what that means along with

1172
00:51:28,840 --> 00:51:31,080
Speaker 2: the booze is a little bit of sweetness and it, man,

1173
00:51:31,160 --> 00:51:34,319
Speaker 2: it just melds those flavors meld together so well. And yeah,

1174
00:51:34,320 --> 00:51:37,359
Speaker 2: it's certainly a classic. It's also a reason why we've

1175
00:51:37,360 --> 00:51:40,239
Speaker 2: actually had this beer before in the show. Really, I

1176
00:51:40,320 --> 00:51:42,719
Speaker 2: looked at it probably a long time ago. It was, Yeah,

1177
00:51:42,719 --> 00:51:44,640
Speaker 2: it was several years ago. But I mean, I think

1178
00:51:44,640 --> 00:51:46,200
Speaker 2: there's only like one or two other beers that we've

1179
00:51:46,239 --> 00:51:48,200
Speaker 2: ever had on the show multiple times. And I'll say,

1180
00:51:48,239 --> 00:51:51,040
Speaker 2: if you are a beer nerd and you know the

1181
00:51:51,080 --> 00:51:53,080
Speaker 2: beers that we've had on the show multiple times, if

1182
00:51:53,120 --> 00:51:55,719
Speaker 2: you email us at howomoneypot at gmail dot com and

1183
00:51:55,760 --> 00:51:59,040
Speaker 2: you let us know, I'll send you one of the

1184
00:51:59,080 --> 00:52:01,400
Speaker 2: original porn poor coozies.

1185
00:52:01,680 --> 00:52:02,600
Speaker 1: We'll send you a few of them.

1186
00:52:02,680 --> 00:52:04,440
Speaker 2: Yes, I actually brought the whole box of them to

1187
00:52:04,560 --> 00:52:07,799
Speaker 2: the to the office, uh, because I didn't want I'm

1188
00:52:07,800 --> 00:52:09,960
Speaker 2: taking those names in my in the attic. So we

1189
00:52:10,040 --> 00:52:11,760
Speaker 2: want to be able to put some of those classic

1190
00:52:11,840 --> 00:52:13,120
Speaker 2: cooozies into use, baby.

1191
00:52:13,040 --> 00:52:15,920
Speaker 1: And if you wanted the easy way out, probably dig

1192
00:52:15,960 --> 00:52:17,680
Speaker 1: through just the Had of Money Instagram because we posted

1193
00:52:17,680 --> 00:52:19,200
Speaker 1: all our beers about the years and you can find

1194
00:52:19,239 --> 00:52:19,920
Speaker 1: it consistently.

1195
00:52:19,960 --> 00:52:21,960
Speaker 2: Though Oh okay, I've always been kind of sometimes I'm hit.

1196
00:52:23,239 --> 00:52:25,759
Speaker 1: This might take some investigation then, so all right, that's

1197
00:52:25,800 --> 00:52:28,480
Speaker 1: gonna do it for this episode. We'll have links to

1198
00:52:28,520 --> 00:52:30,360
Speaker 1: some of the stuff that we mentioned up on the

1199
00:52:30,360 --> 00:52:33,040
Speaker 1: show notes on our website at howtomoney dot com.

1200
00:52:33,040 --> 00:52:35,319
Speaker 2: That's right, buddy, So until next time, best Friends out,

1201
00:52:35,440 --> 00:52:54,080
Speaker 2: Best Friends Out. You see joy song? Something corporate? How's this?

1202
00:52:54,120 --> 00:52:55,319
Speaker 1: Sen that album not too long ago?