WEBVTT - Friday Flight - Housing Boom Busts, AI-Induced Outrage, & Infinite Workdays #1023 0:00:00.080 --> 0:00:01.400 Welcome to Had of Money. 0:00:01.440 --> 0:00:02.759 I'm Joel Matt. 0:00:02.880 --> 0:00:06.960 Today we're talking housing, boom busts, AI induced outrage, and 0:00:07.080 --> 0:00:08.000 infinite work days. 0:00:27.760 --> 0:00:30.880 Infinite work days sound much less appeeling than the infinite 0:00:30.960 --> 0:00:33.720 pool that you want to be at sipping a drink 0:00:33.840 --> 0:00:34.600 while you're on vacation. 0:00:34.640 --> 0:00:35.960 I'm gonna need you to come in on Sunday for 0:00:36.000 --> 0:00:37.160 those TPS reports, Matt. 0:00:37.880 --> 0:00:41.239 Do people even understand office space references anymore? 0:00:41.400 --> 0:00:43.479 I would hope. So it's still one of the greatest 0:00:43.479 --> 0:00:47.159 comedies of all time. If you're a boomer, like you know, 0:00:48.200 --> 0:00:51.599 they don't make great comedies any it is more all right, 0:00:51.640 --> 0:00:52.880 Derek Thompson, No, they don't. 0:00:53.000 --> 0:00:55.040 Oh I know, yeah, Yeah, that's something he harps on. 0:00:55.240 --> 0:00:56.280 Just how it's just true. 0:00:56.320 --> 0:00:58.840 It is true, and I think the reasons given often 0:00:58.960 --> 0:01:01.920 are it's definitely they is. It's less something that you 0:01:01.920 --> 0:01:05.040 can translate to other cultures and countries, right, like as 0:01:05.080 --> 0:01:08.520 opposed to like a big action. Everyone understands fear, everyone 0:01:08.600 --> 0:01:13.480 understands suspense. Comedy can be more of a regional certainly 0:01:13.480 --> 0:01:14.960 a more country based thing. Yeah. 0:01:15.000 --> 0:01:17.520 I don't know, Joe Dirt. I think hits in every region, Matt. 0:01:17.959 --> 0:01:20.640 But yeah, maybe not in China, which is where Hollywood 0:01:20.640 --> 0:01:21.960 needs to make movies that do well there. 0:01:22.000 --> 0:01:25.080 Now the okay, so the Office Space, I feel like 0:01:25.080 --> 0:01:27.120 it was just more of a Gen X movie as 0:01:27.120 --> 0:01:32.560 opposed to it. Yes, our generation wasn't really watching King 0:01:32.600 --> 0:01:35.200 of the Hill, which is like coming back, all right, 0:01:35.280 --> 0:01:38.119 Joel over here making a case for Office Space. If 0:01:38.120 --> 0:01:40.399 you've never seen it, go out, wash it and let's 0:01:40.400 --> 0:01:41.440 see if it still holds up. 0:01:41.480 --> 0:01:43.560 And you can email me if you wasted an hour 0:01:43.560 --> 0:01:45.000 and a half of your time. But I'm gonna say 0:01:45.120 --> 0:01:47.840 a dreamail out there had a money pottedt gmail dot com. 0:01:47.880 --> 0:01:49.560 I don't want to read the email both of us. 0:01:50.080 --> 0:01:53.280 I will reply just if you hate it, then you're wrong, 0:01:53.320 --> 0:01:54.120 but you can tell me why. 0:01:54.160 --> 0:01:55.920 All right, now, this is our Friday flight and we 0:01:55.960 --> 0:01:58.160 are going to cover the top personal finance stories we 0:01:58.200 --> 0:02:00.680 came across this past week, the ones that we think 0:02:00.760 --> 0:02:02.720 are gonna impact you the most, the ones that we 0:02:02.760 --> 0:02:04.600 think that you need to be paying attention to. 0:02:04.840 --> 0:02:08.919 Yeah, real quick. The so we bought a used Peloton 0:02:08.960 --> 0:02:11.960 bike for Emily. She's like, we have this little sun 0:02:12.040 --> 0:02:14.280 room that's right off are That was your. 0:02:14.160 --> 0:02:17.280 Project for this summer. It was to reclaim the sun room. 0:02:17.360 --> 0:02:20.080 The kids had taken it over and we had to declutter, 0:02:20.240 --> 0:02:21.760 and we wanted it to be more of a room 0:02:21.800 --> 0:02:23.040 that that she and I get to used. I've got 0:02:23.080 --> 0:02:25.800 my little sona tent in there, she's got I've got 0:02:25.840 --> 0:02:27.360 my rolling machines, she's got a little Peloton. 0:02:27.480 --> 0:02:28.880 I feel like the first thing that's gonna break on 0:02:28.919 --> 0:02:30.959 your portable sauna tent is the zipper. 0:02:31.600 --> 0:02:34.280 Yeah, so far as held up surprisingly. 0:02:33.680 --> 0:02:36.400 Well, I can totally see you go into unzip it 0:02:37.560 --> 0:02:39.239 today and it's just gonna pull off. 0:02:39.240 --> 0:02:41.320 And you say, that's also why I got it at 0:02:41.360 --> 0:02:44.240 Costco because I was looking at ones on Amazon, but 0:02:44.240 --> 0:02:46.200 I was like, I got Costco because the return policy 0:02:46.200 --> 0:02:46.639 is much better. 0:02:46.639 --> 0:02:49.519 But would you feel how long? How many uses to 0:02:49.600 --> 0:02:52.079 would you put it through before you would feel bad 0:02:52.080 --> 0:02:53.720 about taking it back? Because we've talked about this is 0:02:53.760 --> 0:02:55.600 why we can't have nice things at Costco anymore, because 0:02:55.600 --> 0:02:58.440 people abuse it. I'll probably getting to that point where, yeah, 0:02:58.440 --> 0:03:02.560 if it broke today, since my nine month birthday, so. 0:03:02.600 --> 0:03:05.240 Yeah, not really that long six months, So if it 0:03:05.280 --> 0:03:09.560 broke today, I'd be morally questionable. Yeah, okay, all right, Peloton, 0:03:09.720 --> 0:03:13.000 So Peloton bought a used Peloton on Facebook marketplace from somebody. 0:03:13.000 --> 0:03:15.560 Even though Peloton and we talked about this, has their 0:03:15.600 --> 0:03:18.840 own site for reselling used Pelotons now, but they're way 0:03:18.880 --> 0:03:21.600 more expensive than buying it from the slew of people 0:03:21.600 --> 0:03:23.760 who are selling their Pelotons on Facebook. The price has 0:03:23.800 --> 0:03:25.880 gone down dramatically because everyone's trying to get rid of 0:03:25.880 --> 0:03:29.520 their glorified code hanger that that is their Peloton. 0:03:29.600 --> 0:03:31.480 They're like, I've been tired of looking at this thing 0:03:31.520 --> 0:03:33.280 for the price four years, so that I got back 0:03:33.320 --> 0:03:33.919 in twenty one. 0:03:34.080 --> 0:03:37.240 Yes, when Emily's other age, she's been using it, she's 0:03:37.280 --> 0:03:40.360 been enjoying it. But the one thing I was surprised 0:03:40.680 --> 0:03:44.240 by and a little bit frustrated about when we bought 0:03:44.440 --> 0:03:47.560 the used Peloton. You know what Peloton is trying to 0:03:47.600 --> 0:03:52.120 do to siphon money from users. If you buy a 0:03:52.200 --> 0:03:54.560 used bike, they want to charge you a one hundred 0:03:54.600 --> 0:03:59.040 dollars activation fee for switching that bike over to another account. 0:03:59.480 --> 0:04:01.680 It is an activation fee. 0:04:01.960 --> 0:04:05.320 Yeah, it was already activated by somebody else being used, 0:04:05.440 --> 0:04:08.240 and you're trying to switch it over to be suited 0:04:08.240 --> 0:04:08.600 your name. 0:04:08.640 --> 0:04:10.280 So it would be like Apple, It's like you selling 0:04:10.280 --> 0:04:12.320 your phone and being like yep, i've wiped it here. 0:04:12.360 --> 0:04:12.480 You know. 0:04:12.560 --> 0:04:15.200 This one's a totally factory reset, and the Apple being 0:04:15.200 --> 0:04:16.800 like no, no, no, we get a cut of that because 0:04:16.880 --> 0:04:18.280 somebody else is going to know use it. 0:04:18.279 --> 0:04:20.960 It would be exactly like that. That's so stupid, like, hey, 0:04:20.960 --> 0:04:22.680 I'm going to sell my book and then the author 0:04:22.720 --> 0:04:25.600 gets actually gets paid, we get more royalty. 0:04:25.960 --> 0:04:27.720 Yeah no, that's not how it works. How they use 0:04:27.800 --> 0:04:28.599 market works man. 0:04:28.520 --> 0:04:30.839 Utterally ridiculous, totally, this is the kind of thing that 0:04:30.920 --> 0:04:33.840 only a brand like Peloton could get away with where 0:04:34.080 --> 0:04:37.400 they've they're just banking on rich customers who don't care 0:04:37.400 --> 0:04:38.800 about money, and they're like, I guess this is just 0:04:38.839 --> 0:04:39.919 part of doing business. 0:04:39.920 --> 0:04:43.039 But that's not what you did, right, Okay, give me 0:04:43.120 --> 0:04:46.800 the ravocate or yeah, some eravocate success story. 0:04:46.800 --> 0:04:48.880 You've got to call in and advocate for yourself. This is, 0:04:48.920 --> 0:04:51.120 by the way, if you want like a nerdy economist term, 0:04:51.160 --> 0:04:53.200 it's called rent seeking. And this is totally that. This 0:04:53.240 --> 0:04:56.000 would be a great definition of rent seeking by Peloton 0:04:56.040 --> 0:04:59.160 saying like, listen, we've already, like gott we've landed our 0:05:00.080 --> 0:05:02.280 hooks into this territory, and it's a way we can 0:05:02.320 --> 0:05:05.360 just make extra money just fleecing people who don't deserve 0:05:05.400 --> 0:05:09.640 to be fleeced, and it's pretty unethical also, But so 0:05:09.720 --> 0:05:11.919 I called Peloton. I'm like, listen, we don't want to 0:05:11.920 --> 0:05:13.640 pay this fee, Like what in the world do we 0:05:13.680 --> 0:05:15.960 do to avoid this thing? And it took talking to 0:05:16.000 --> 0:05:18.440 a couple of different representatives. You just kind of have 0:05:18.520 --> 0:05:22.040 to keep pushing the envelope to get them to finally agree. 0:05:21.760 --> 0:05:24.800 To talking to customer service people. It's not my favorite. 0:05:25.080 --> 0:05:25.600 I wish it was. 0:05:25.680 --> 0:05:27.360 You're willing to do it, but I'm willing to do it, 0:05:27.400 --> 0:05:29.960 especially for a hundred bucks. So it was just a 0:05:29.960 --> 0:05:33.800 one time so you gotta waved kind of waved nice. Yeah, 0:05:33.920 --> 0:05:35.960 very nice dude. All right, Well for all the folks. 0:05:36.240 --> 0:05:38.080 This is for obviously for everyone other there who's thinking 0:05:38.080 --> 0:05:41.160 about getting the secondhand Peloton, or you can just jump 0:05:41.160 --> 0:05:43.120 on the bike that you already have mm hmm right 0:05:43.160 --> 0:05:45.520 out there. The tradition, I like prefer to ride on 0:05:45.520 --> 0:05:48.440 the street, the traditional bike in the wild scenario or 0:05:48.480 --> 0:05:49.720 the winds blowing through your hair. 0:05:50.520 --> 0:05:52.560 Emily and I differ in this regard. I bike, I 0:05:52.640 --> 0:05:53.360 ride on my real bike. 0:05:53.440 --> 0:05:56.320 She rides. You get the passion neighbors have a conversation 0:05:56.440 --> 0:05:58.799 with them. Cuts down on emissions because you're not driving 0:05:58.800 --> 0:06:02.040 your vehicle, Combine it with needing to run an errand yep, 0:06:02.120 --> 0:06:05.239 not to mention the cost savings of the aforementioned benefits. 0:06:05.279 --> 0:06:06.400 I'll let you talk. 0:06:06.240 --> 0:06:08.839 To my wife about it. Hey, I'll do it. Also. 0:06:09.000 --> 0:06:10.520 Maybe one of the things you're talking about with your 0:06:10.560 --> 0:06:13.680 neighbors as you're riding past their house is, Oh, what 0:06:13.720 --> 0:06:15.200 do you think about the so and so's over there? 0:06:15.240 --> 0:06:16.919 They got their house listed for saless been sitting on 0:06:16.920 --> 0:06:19.360 the market forever. There's one in our neighborhood. That's literally 0:06:19.400 --> 0:06:21.159 a conversation I had with one of our neighbors, like 0:06:21.320 --> 0:06:23.320 what's going on with it? It's like, Oh, hasn't been 0:06:23.360 --> 0:06:26.839 renovated recently? You think the uh it's overpriced? Well, I 0:06:26.839 --> 0:06:28.400 think it is. And I think that's one of the 0:06:28.480 --> 0:06:30.960 questions a lot of folks are wondering, is like, has 0:06:31.120 --> 0:06:34.560 there been a housing like bubble essentially and is it 0:06:34.600 --> 0:06:37.800 about to pop? And I would say that it's it 0:06:38.120 --> 0:06:40.360 seems more like a slow leak as like versus just 0:06:40.360 --> 0:06:41.680 like a sudden popping. 0:06:41.560 --> 0:06:44.240 Right less two thousand and nine more its own thing. 0:06:44.160 --> 0:06:48.240 Exactly yeah, yeah, numbers from almost every corner of the 0:06:48.279 --> 0:06:51.919 market out there are showing asking price decreases. There is 0:06:51.960 --> 0:06:55.000 showing more sellar concessions, inventory decreases as. 0:06:54.920 --> 0:06:58.280 Well, inventory increases more I'm sorry on the market. 0:06:58.320 --> 0:07:01.400 Yea, more homes are on the market, which, to be honest, though, 0:07:01.400 --> 0:07:05.720 it's also just returning back to like pre pandemic norms. Essentially, 0:07:05.720 --> 0:07:08.760 we saw a significant decline and that was in large 0:07:08.800 --> 0:07:12.720 part why there was such an increase in housing prices. 0:07:13.240 --> 0:07:17.720 But we're also seeing more cancellations after houses are going 0:07:17.800 --> 0:07:21.040 under contract. Folks are basically getting cold feet during due diligence, 0:07:21.560 --> 0:07:24.080 and this is such a far cry, dude, from a 0:07:24.080 --> 0:07:27.720 few years ago. Homeowners obviously don't love seeing this, and 0:07:28.120 --> 0:07:31.440 sellers of course are not pleased. You know, like back 0:07:31.440 --> 0:07:34.200 when there was an open house and buyers were lined 0:07:34.280 --> 0:07:35.800 up around the block just to be able to get 0:07:35.800 --> 0:07:37.520 in and see the place. It's not like that. 0:07:37.800 --> 0:07:40.800 Remember those calls for highest and best like two years ago, 0:07:40.920 --> 0:07:44.240 three years ago, and the insanity of how much people 0:07:44.280 --> 0:07:46.640 are willing to pay and bid up the price. It 0:07:46.800 --> 0:07:50.440 was really unseen. I don't remember a time at least 0:07:50.480 --> 0:07:51.720 in my life where that was the case. 0:07:51.800 --> 0:07:53.840 Yeah, So I want to put a note out there 0:07:53.880 --> 0:07:56.760 for a lot of folks who have been thinking about 0:07:56.800 --> 0:07:59.160 purchasing the home because I think, dude, this is my 0:07:59.200 --> 0:08:01.800 personal opinion. I think now is the time to strike personally, 0:08:01.880 --> 0:08:04.240 So byek I do because I don't think. I don't 0:08:04.240 --> 0:08:06.360 think we're going to continue to see declient. So I 0:08:06.960 --> 0:08:09.640 this morning, I pretended to be a chart analyst and I. 0:08:09.600 --> 0:08:11.160 Pulled up the I was gonna say, how did you 0:08:11.160 --> 0:08:11.640 come to this school? 0:08:11.880 --> 0:08:13.400 What am I basing this on? And I pulled up 0:08:13.400 --> 0:08:14.840 some data from the FED. I was looking at the chart, 0:08:14.880 --> 0:08:17.400 and if you look at just the trend, So if 0:08:17.440 --> 0:08:20.040 you look at the median home price in the US 0:08:20.760 --> 0:08:23.560 from starting from around nine twenty ten, and if you 0:08:23.640 --> 0:08:26.360 follow that up to pre pans so like around twenty nineteen, 0:08:26.760 --> 0:08:29.600 there's a pretty consistent line. Uh. And then of course 0:08:29.640 --> 0:08:32.000 what you saw slight decrease, but then you see it 0:08:32.000 --> 0:08:35.080 shoot up. Specifically, a lot of folks are thinking about 0:08:35.080 --> 0:08:37.640 the last fifteen years as when we saw these massive 0:08:37.640 --> 0:08:40.680 price increases. I think all that was just kind of 0:08:40.679 --> 0:08:43.720 catching back up to where things needed to be after 0:08:44.040 --> 0:08:47.679 the housing crisis, price back seven eight nine exactly. 0:08:47.280 --> 0:08:49.199 Like in twenty eleven, you could get a house for 0:08:50.160 --> 0:08:50.760 not much money. 0:08:50.920 --> 0:08:54.480 Yeah, and so I think all that was relatively healthy growth. 0:08:54.480 --> 0:08:58.000 But what we saw basically in the two years twenty 0:08:58.040 --> 0:09:01.040 to twenty two, we saw a massive increase. It goes COVID. 0:09:01.679 --> 0:09:03.160 It all comes back to COVID. And if you draw 0:09:03.160 --> 0:09:06.760 that line, basically from nine to nineteen we are about 0:09:06.800 --> 0:09:10.440 where prices should be. We saw it spike where we 0:09:10.480 --> 0:09:12.320 got way ahead of the curve. And for the past 0:09:12.320 --> 0:09:15.880 couple of years, two three years, we've seen prices basically plateau. 0:09:15.920 --> 0:09:17.880 They're starting to decline just a little bit. 0:09:18.200 --> 0:09:19.880 And it depends on local markets. 0:09:19.960 --> 0:09:22.560 It depends on local markets, but financing as well. And 0:09:22.600 --> 0:09:25.320 so I think personally, my personal opinion is I would 0:09:25.320 --> 0:09:29.400 not be surprised if we see mortgage rates come down. Right, 0:09:29.400 --> 0:09:32.240 if the FED lower's rates, which there is talk about 0:09:32.240 --> 0:09:35.800 that potentially happening next month in September, I think that 0:09:35.840 --> 0:09:38.400 could be the first that could be the starting line 0:09:38.480 --> 0:09:40.080 of the market opening back up. 0:09:40.080 --> 0:09:42.960 If mortgage rates go down, I think that will increase 0:09:43.000 --> 0:09:46.240 buyer interest. I think you're probably right, and then maybe 0:09:46.400 --> 0:09:48.960 the instead of declining prices, we do start to see 0:09:48.960 --> 0:09:51.200 prices go up again. But just at a far less 0:09:51.240 --> 0:09:52.000 accelerated pace. 0:09:52.040 --> 0:09:54.280 It will not be at the pace that we've seen because. 0:09:54.000 --> 0:09:56.680 That was just unsustainable. Yeah, totally, and I think but 0:09:56.720 --> 0:09:59.880 I think this does maybe as far as advice for 0:10:00.000 --> 0:10:02.839 potential home buyers, have a plan to own longer, because 0:10:02.840 --> 0:10:05.040 it's really hard to know where the housing market goes 0:10:05.040 --> 0:10:09.440 from here. I appreciate your your insights, Matt, and you 0:10:09.480 --> 0:10:11.240 really might be right my hot take. Yeah, I mean 0:10:11.280 --> 0:10:14.840 you might be right, but like my I know somebody 0:10:14.920 --> 0:10:16.920 right now in my family who's selling a home after 0:10:16.960 --> 0:10:20.200 owning it for two years, and that's just there's a 0:10:20.280 --> 0:10:23.080 chance because of just what's happened with housing prices that 0:10:23.160 --> 0:10:26.200 she's going to do okay, even after you know real 0:10:26.280 --> 0:10:30.280 estate realtor expenses. But there's also it's a hard position 0:10:30.320 --> 0:10:32.839 to put yourself in, and if you're planning, the longer 0:10:32.880 --> 0:10:35.640 you plan to own, the more likely it is to 0:10:35.720 --> 0:10:37.920 be a decent decision to buy, even if you are 0:10:38.120 --> 0:10:38.960 slightly overpaying. 0:10:39.000 --> 0:10:39.560 Totally agree. 0:10:39.840 --> 0:10:43.360 Speaking of agents, got an email the other day criticizing us. 0:10:43.360 --> 0:10:46.600 We're talking about three percent fees for real estate agents. Well, 0:10:47.360 --> 0:10:49.520 you know, if they don't charge that much anymore, is 0:10:49.559 --> 0:10:53.800 what the emailer said, well, legally, they don't have the 0:10:53.800 --> 0:10:57.040 same leeway to just flat out charge three percent based 0:10:57.080 --> 0:11:00.720 on that ruling against the National Association of Realtors practice 0:11:00.920 --> 0:11:05.680 agent compensation hasn't really changed much since that ruling, but 0:11:06.679 --> 0:11:09.640 for savvy consumers who know how to negotiate, some people 0:11:09.720 --> 0:11:12.240 are able to claw back some of the agent's fees 0:11:12.240 --> 0:11:15.160 they would have paid. This is particularly happening at the 0:11:15.240 --> 0:11:18.079 higher end of the spectrum, where someone's saying, well, you're 0:11:18.080 --> 0:11:21.560 gonna sell my three million dollar home, Well, awesome, but 0:11:21.640 --> 0:11:23.679 guess what I'm gonna pay you one and a half 0:11:23.720 --> 0:11:26.160 percent instead of the three percent their agent's like, it's 0:11:26.200 --> 0:11:29.319 still pretty good payday, I'll do it. But yeah, I 0:11:29.320 --> 0:11:32.720 think technology too, is finally and slowly starting to make 0:11:33.000 --> 0:11:35.240 an impact on this front. There are startups in some 0:11:35.400 --> 0:11:38.280 states that are helping a sliver of buyers of all 0:11:38.320 --> 0:11:41.920 price points to majorly cut transaction costs. One called Turbo Home, 0:11:42.080 --> 0:11:45.400 another one called shop prop, and another one called Arriva. 0:11:45.520 --> 0:11:47.120 Will link to these in the show notes, but. 0:11:47.160 --> 0:11:49.920 These I'd like to say, Arriva arrive at that and 0:11:50.240 --> 0:11:52.800 you've arrived at your home. Arriva makes me think more 0:11:52.800 --> 0:11:55.720 of speedy Gonzales the little mouse, which I'm pretty sure 0:11:55.720 --> 0:11:56.600 he was probably canceled or. 0:11:56.600 --> 0:11:58.800 Also makes me think of like the coldsor medication for 0:11:58.800 --> 0:12:00.560 some reason. Arriva, Yeah, I don't know why. 0:12:00.679 --> 0:12:04.160 What is it called the the canker sore? It sound 0:12:04.200 --> 0:12:05.800 like the little wand and you put it on your 0:12:06.280 --> 0:12:08.559 sore and it like numbs. It probably what's I thought 0:12:08.559 --> 0:12:12.800 it was called like be something, but no, it's called Burreva. No. 0:12:12.920 --> 0:12:18.160 I don't know, all right, but for me, yeah, but 0:12:18.200 --> 0:12:22.040 these three different startups are a potentially good way for 0:12:22.120 --> 0:12:24.559 buyers and sellers to kind of hook up at a 0:12:24.559 --> 0:12:25.400 fraction of the price. 0:12:25.800 --> 0:12:27.560 And this really like when you look at how much 0:12:27.800 --> 0:12:31.560 transaction costs are in the typical transaction, you're you could 0:12:31.559 --> 0:12:34.719 be talking about ten thousand dollars or more in savings 0:12:34.960 --> 0:12:37.280 and awesome agents can really be worth worth the fee. 0:12:37.840 --> 0:12:40.120 But there's also a growing place, I think, for agents 0:12:40.160 --> 0:12:42.880 who charge reduced fees and for technology to kind of 0:12:42.880 --> 0:12:45.559 grease the wheels of real estate transactions, making it a 0:12:45.600 --> 0:12:48.199 little easier to buy and sell and less costly. 0:12:48.440 --> 0:12:51.000 That's right, so a couple of years ago, I think 0:12:51.000 --> 0:12:52.840 it was back in twenty three Joel we talked about 0:12:52.880 --> 0:12:57.480 how medical debt below a certain threshold wouldn't affect your credit. 0:12:57.760 --> 0:13:01.680 Well that's no longer the case. Originally, back under the 0:13:01.720 --> 0:13:05.840 Biden administration, the CFPP, the Consumer Financial Protection Bureau, they 0:13:05.880 --> 0:13:10.280 instituted a medical debt rule that benefited millions of Americans 0:13:10.320 --> 0:13:13.520 out there by not penalizing the credit for small medical debts. 0:13:13.760 --> 0:13:16.000 Yeah less than five hundred bucks, right, Yeah, that's right. 0:13:16.640 --> 0:13:20.240 That was recently overturned by a judge. But even still, 0:13:20.280 --> 0:13:23.600 credit bureaus they have the ability to factor medical debt 0:13:23.640 --> 0:13:27.360 in different ways, and all three are still not including 0:13:27.400 --> 0:13:29.400 bounces below five hundred bucks. So that's good. 0:13:29.480 --> 0:13:32.080 It's not legally mandated, but a choice that they're making. 0:13:32.120 --> 0:13:33.920 It's like a yeah, And there's there's a lot of 0:13:33.960 --> 0:13:35.640 that actually that we're going to cover today in different 0:13:35.760 --> 0:13:38.040 in varying ways. Where there are there have been different 0:13:38.480 --> 0:13:42.080 recommendations perhaps or even an executive order that's not necessarily 0:13:42.120 --> 0:13:45.840 enforceable by law because it's not something that Congress is 0:13:45.880 --> 0:13:48.520 taking any action on. But there's also a one year 0:13:48.760 --> 0:13:52.960 grace period before overdue medical debt gets reported, So we 0:13:53.000 --> 0:13:55.320 want we're putting this out there as a nice little PSA. 0:13:55.400 --> 0:13:58.319 We want folks to be aware and specifically as well 0:13:58.360 --> 0:13:59.839 to go back and listen to some of the different 0:13:59.880 --> 0:14:04.240 up episodes that where we've discussed negotiating medical debts. If 0:14:04.240 --> 0:14:06.560 you are finding yourself in a situation where you're like, 0:14:06.640 --> 0:14:08.640 oh my gosh, got hit with medical bill that I 0:14:08.679 --> 0:14:10.480 was not expecting. We don't have the money on hand 0:14:10.520 --> 0:14:12.440 for that. Even if hey, even if you do have 0:14:12.480 --> 0:14:14.600 the money on hand, like Joeldaes, when it comes to 0:14:14.640 --> 0:14:16.760 some different fees that these companies are hitting you with, 0:14:17.440 --> 0:14:19.960 it is always worth negotiating and see if you can 0:14:20.000 --> 0:14:21.240 push back. I could pay. 0:14:21.120 --> 0:14:22.800 Peloton on our bucks, but I'm not going to. And 0:14:22.800 --> 0:14:24.840 it's right basically, Well, it's been said to Matt on 0:14:24.880 --> 0:14:28.280 the Credit Core Creditcore Front that you are the average 0:14:28.480 --> 0:14:30.480 of the five people you spend the most time with. 0:14:30.720 --> 0:14:32.280 And I think there's a lot of truth to that, 0:14:32.400 --> 0:14:35.200 right that we rub off on each other, I've learned 0:14:35.240 --> 0:14:39.640 a lot being your friend. I think what my life 0:14:39.640 --> 0:14:41.240 would look like would be different if we didn't hang 0:14:41.240 --> 0:14:41.680 out so much. 0:14:41.720 --> 0:14:42.960 It wouldn't be nearly as cool. 0:14:43.280 --> 0:14:45.480 Well, that's true, that's definitely true. 0:14:45.880 --> 0:14:48.560 In fact, first, I wouldn't know half of the Great 0:14:48.840 --> 0:14:51.040 musical artists that I know because of you, as you're 0:14:51.080 --> 0:14:53.320 sitting there wearing your brand new billy string shirt. And 0:14:53.360 --> 0:14:56.200 I'm sorry that I have not even commented on. I 0:14:56.200 --> 0:14:58.400 know you're excited about the glorious, isn't I commented on 0:14:58.440 --> 0:14:59.880 the one that you had on yesterday. I wear a 0:15:00.480 --> 0:15:03.440 but this one it's purple. Yeah, it is not a 0:15:03.440 --> 0:15:05.560 lot of men out there are rock and purple purple 0:15:05.600 --> 0:15:09.720 tieye baby, I'm I'm all for it. Uh yeah, especially 0:15:09.920 --> 0:15:12.880 Joel's not scared, especially when I'm supporting the best guitarist 0:15:12.920 --> 0:15:13.360 of all time. 0:15:13.560 --> 0:15:17.520 Okay, but credit scores. This new Harvard study of twenty 0:15:17.560 --> 0:15:22.240 five million people found that financial habits are similar to 0:15:22.560 --> 0:15:24.800 other people who grow up in an environment like yours. 0:15:25.080 --> 0:15:28.080 So you rub shoulders with folks for eighteen years, and 0:15:28.240 --> 0:15:31.680 you're likely to have similar credit scores and loan delinquency rates. 0:15:32.200 --> 0:15:36.400 And that's actually not terribly surprising to me. There are, 0:15:36.560 --> 0:15:40.720 of course, like individual examples of folks rising above their circumstances. 0:15:41.360 --> 0:15:43.960 But I see this as another reason to get on 0:15:44.040 --> 0:15:47.480 the ground personal finance education into neighborhoods that need it most. 0:15:47.760 --> 0:15:50.680 Because one of the toughest things about doing what you 0:15:50.720 --> 0:15:53.360 and I do. Matt is realizing that there's a bunch 0:15:53.360 --> 0:15:57.280 of people who grew up without any helpful personal finance advice, 0:15:57.280 --> 0:16:00.320 and they're probably not like on their podcastcher saying, what 0:16:00.480 --> 0:16:02.600 is like a good personal finance podcast that can help 0:16:02.640 --> 0:16:04.280 me out at this point in time, it's just kind 0:16:04.280 --> 0:16:06.800 of off their radar. And so I think it's a 0:16:06.840 --> 0:16:09.240 good call for us to surround ourselves with folks who 0:16:09.360 --> 0:16:13.400 encourage us on money journey. But also it's just kind 0:16:13.400 --> 0:16:15.880 of discouraging in some ways too to realize that there 0:16:15.920 --> 0:16:18.560 are some people who are going to be more difficult 0:16:18.600 --> 0:16:20.440 to help. It's going to be harder to find those people. 0:16:20.480 --> 0:16:21.920 I think a lot of those folks it's less the 0:16:21.960 --> 0:16:24.040 advice and it's more that there's also just nobody in 0:16:24.080 --> 0:16:28.320 their life who has lived it out essentially right, Like 0:16:28.360 --> 0:16:30.960 oftentimes we look to mentors or just others that we 0:16:30.960 --> 0:16:33.720 can look up to. Actually, on that note, do you 0:16:33.760 --> 0:16:38.040 see the report by USAA about gen Z. Everyone likes 0:16:38.080 --> 0:16:40.280 to pick on gen Z and they're saying that like 0:16:40.320 --> 0:16:42.560 half a gen zs don't even know what their credit 0:16:42.640 --> 0:16:46.360 score is or even like what constitutes their credit school. Yeah, 0:16:46.360 --> 0:16:48.560 they don't know how it's made up, And I appreciate 0:16:48.640 --> 0:16:51.760 that USA is trying to shine light on the younger generations, right, 0:16:51.800 --> 0:16:53.360 because like that's kind of what you were speaking to 0:16:53.440 --> 0:16:56.120 as well, like making sure that we are doing what 0:16:56.160 --> 0:16:58.160 we can to help those around us, and maybe to 0:16:58.200 --> 0:17:00.960 a certain extent, USAA is doing that well. But also 0:17:01.480 --> 0:17:04.280 half of you gen Z, the gen Z generation are 0:17:04.280 --> 0:17:07.000 like middle schoolers and high schoolers. So there's a part 0:17:07.000 --> 0:17:08.400 of that too where I'm just like, I'm not I'm 0:17:08.400 --> 0:17:11.280 also not going to necessarily expect a middle schooler or 0:17:11.280 --> 0:17:13.560 a high schooler to know what their credit score is 0:17:13.600 --> 0:17:15.480 because it's like, well, you probably don't really have a 0:17:15.520 --> 0:17:19.040 credit I don't know. I didn't dive into that study 0:17:19.080 --> 0:17:21.720 in depth, but I think there is a large part 0:17:21.840 --> 0:17:24.919 of that generation who they're just getting started, right, And 0:17:25.000 --> 0:17:27.160 just like we back in the day, what did we do? 0:17:27.200 --> 0:17:30.480 We focused on being cheap. You actually are seeing gen 0:17:30.560 --> 0:17:33.159 Z doing more of that sort of stuff. Embracing being 0:17:33.280 --> 0:17:35.320 frugal is something that I saw reported recently. 0:17:35.520 --> 0:17:37.480 I couldn't have told you much about credit scores or 0:17:37.520 --> 0:17:39.280 credit reports when I was in middle school either. 0:17:39.119 --> 0:17:40.800 So exactly. Yeah, So I think we all just need 0:17:40.800 --> 0:17:42.880 to kind of play our part to educating the next 0:17:42.960 --> 0:17:45.920 generation of financial savvy Americans. Yeah. 0:17:45.920 --> 0:17:49.160 I mean, I think though, as you get older and 0:17:49.240 --> 0:17:52.399 the credit score is a big part of our financial lives, 0:17:52.440 --> 0:17:55.840 and so knowing what your credit score is, knowing how 0:17:55.960 --> 0:17:59.760 your credit score comes about, like the factors that make 0:17:59.760 --> 0:18:02.040 it up up is important. We've got information on that 0:18:02.359 --> 0:18:04.919 at our website, howdomoney dot com. Matt, let's talk about 0:18:04.960 --> 0:18:08.440 executive a new executive order for a second. That actually 0:18:08.480 --> 0:18:11.040 makes it more likely that your workplace retirement account is 0:18:11.080 --> 0:18:14.399