1 00:00:00,080 --> 00:00:02,920 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:02,960 --> 00:00:07,320 Speaker 1: and today we're discussing horrendous investing advice, hot dogs, and 3 00:00:07,680 --> 00:00:29,440 Speaker 1: a d U s ft W for the win. Nice 4 00:00:29,440 --> 00:00:32,960 Speaker 1: pronunciation on the hots dog. You said the hot part right. 5 00:00:32,960 --> 00:00:36,239 Speaker 1: You didn't see that the dog part right. But I'm 6 00:00:36,280 --> 00:00:38,880 Speaker 1: very cultured. We we are going to get to that story, 7 00:00:39,000 --> 00:00:41,360 Speaker 1: a pets story. We don't talk about pets enough here 8 00:00:41,360 --> 00:00:43,320 Speaker 1: on the show. Even though you've got you've got a 9 00:00:43,360 --> 00:00:46,159 Speaker 1: couple of cats. Still I don't have any pets. So 10 00:00:46,240 --> 00:00:48,480 Speaker 1: the other day we came back from our our little 11 00:00:48,760 --> 00:00:51,600 Speaker 1: mountain visit last weekend Emily and Night and they escaped. 12 00:00:52,040 --> 00:00:54,880 Speaker 1: One of the cat was not an escape was in 13 00:00:55,120 --> 00:00:57,840 Speaker 1: the crawl space and she had found this one random 14 00:00:57,880 --> 00:01:00,320 Speaker 1: spot and she couldn't get out, and she was in 15 00:01:00,360 --> 00:01:03,520 Speaker 1: there probably for like thirty six hours or something, and 16 00:01:04,360 --> 00:01:07,440 Speaker 1: from your main space she found her way in through 17 00:01:07,480 --> 00:01:11,080 Speaker 1: like well, I think Emily accidentally didn't lock the door, 18 00:01:11,160 --> 00:01:13,240 Speaker 1: and so they can pry anything open if it's if 19 00:01:13,240 --> 00:01:15,160 Speaker 1: it's not completely lock shut. So you got home and 20 00:01:15,160 --> 00:01:18,199 Speaker 1: there's a bunch of yeah, so we're going to offer 21 00:01:18,400 --> 00:01:20,759 Speaker 1: animal money advice, even though I probably have the best 22 00:01:21,160 --> 00:01:23,080 Speaker 1: person to take it from, you know, the best cat 23 00:01:23,160 --> 00:01:25,720 Speaker 1: dad out there by the way, real quick. I wanted 24 00:01:25,760 --> 00:01:27,959 Speaker 1: to share. So I just had a meeting this morning, 25 00:01:28,280 --> 00:01:31,240 Speaker 1: a meeting that was maybe like twenty minutes away. I 26 00:01:31,280 --> 00:01:34,200 Speaker 1: told Kate yesterday and she's like, uh, sorry, I'm plied 27 00:01:34,240 --> 00:01:36,640 Speaker 1: up all day. I need the van. And so, because 28 00:01:36,760 --> 00:01:39,120 Speaker 1: we are a one car family, what that meant was 29 00:01:39,160 --> 00:01:42,440 Speaker 1: that for a simple task, something you know, you just 30 00:01:42,760 --> 00:01:44,760 Speaker 1: all the time, you run around, you run errands, you 31 00:01:44,800 --> 00:01:46,000 Speaker 1: just hop on the car and you go. You don't 32 00:01:46,000 --> 00:01:47,720 Speaker 1: think about it. But in this case, this meant that 33 00:01:47,760 --> 00:01:51,680 Speaker 1: I needed to hail a ride sharing service. And there's 34 00:01:51,720 --> 00:01:53,520 Speaker 1: two reasons I wanted to bring this up. First of all, 35 00:01:53,920 --> 00:01:56,080 Speaker 1: I looked back at my history of how often I 36 00:01:56,200 --> 00:02:00,560 Speaker 1: have used in this case, Uber and I hadn't used 37 00:02:00,560 --> 00:02:02,680 Speaker 1: it at all this year, And so I wanted to 38 00:02:02,680 --> 00:02:04,960 Speaker 1: share that because oftentimes folks are like, well how do 39 00:02:05,000 --> 00:02:07,040 Speaker 1: you get around, Like if your wife needs to be 40 00:02:07,080 --> 00:02:08,960 Speaker 1: somewhere and you need to be somewhere as well, Well, 41 00:02:09,000 --> 00:02:11,480 Speaker 1: that doesn't happen as often as you might think. And 42 00:02:11,560 --> 00:02:14,240 Speaker 1: we had included room in our budget to handle these 43 00:02:14,320 --> 00:02:16,800 Speaker 1: kind of expenses. But the reality is for us, it 44 00:02:16,800 --> 00:02:19,399 Speaker 1: doesn't happen all that often. Obviously, we've designed our life 45 00:02:19,440 --> 00:02:21,560 Speaker 1: too to where I can ride my bike to most 46 00:02:21,560 --> 00:02:24,040 Speaker 1: places I need to go on a daily basis. Being 47 00:02:24,040 --> 00:02:25,960 Speaker 1: a one car family is not as bad as you 48 00:02:26,040 --> 00:02:28,800 Speaker 1: might think. And be another tip as well, always make 49 00:02:28,840 --> 00:02:32,639 Speaker 1: sure that you check between both apps or whatever apps 50 00:02:32,639 --> 00:02:34,760 Speaker 1: you have wherever it is that you that you live. 51 00:02:34,760 --> 00:02:36,400 Speaker 1: Because I pulled it up on Uber or something like 52 00:02:36,440 --> 00:02:39,760 Speaker 1: fifteen sixteen bucks, pulled it up on lift Dude, it 53 00:02:39,840 --> 00:02:45,600 Speaker 1: was thirty two thirty three dollars for the exact same ride. Man. Yeah, 54 00:02:45,639 --> 00:02:47,840 Speaker 1: it's it's amazing, like crazy, you never know which one 55 00:02:47,880 --> 00:02:49,840 Speaker 1: is going to be cheaper, and so you gotta look 56 00:02:49,880 --> 00:02:52,480 Speaker 1: at it just depends, I guess on whoever. It makes 57 00:02:52,480 --> 00:02:54,400 Speaker 1: me think of like online banks, because folks are always like, 58 00:02:54,440 --> 00:02:56,560 Speaker 1: oh should I should I switch just to get a 59 00:02:56,600 --> 00:03:00,000 Speaker 1: slightly higher rate, and it's like, well, for slightly high 60 00:03:00,080 --> 00:03:02,320 Speaker 1: your percentage, it's kind of a big deal just to 61 00:03:02,320 --> 00:03:05,399 Speaker 1: optimize in that small, slight way. And the thing is 62 00:03:05,400 --> 00:03:08,040 Speaker 1: is there's no guarantee that you will continue to get 63 00:03:08,040 --> 00:03:10,240 Speaker 1: the best rate, right Whereas when you book a book 64 00:03:10,240 --> 00:03:11,840 Speaker 1: a ride, it's like I know that this is going 65 00:03:11,880 --> 00:03:15,840 Speaker 1: to be half the expenses the other one, so obviously 66 00:03:16,200 --> 00:03:18,160 Speaker 1: you most definitely want to shop it around and it's 67 00:03:18,200 --> 00:03:20,320 Speaker 1: worth checking. Yeah, just be logged into both apps and 68 00:03:20,400 --> 00:03:22,440 Speaker 1: check them both before you need to ride somewhere, because 69 00:03:22,800 --> 00:03:25,200 Speaker 1: the differences can be stark in the cost of that 70 00:03:25,320 --> 00:03:27,840 Speaker 1: ride and you can save a boatload of money. I 71 00:03:27,840 --> 00:03:29,760 Speaker 1: feel like I found that more you would think that 72 00:03:29,880 --> 00:03:31,480 Speaker 1: these would would just be a buck or two off, 73 00:03:31,520 --> 00:03:33,680 Speaker 1: that these apps would be a little more in sync 74 00:03:33,720 --> 00:03:35,680 Speaker 1: with each other when it comes to the costs that 75 00:03:35,720 --> 00:03:38,720 Speaker 1: you're paying. I don't know why I think that, but 76 00:03:39,160 --> 00:03:42,560 Speaker 1: just because of efficient markets, like that's what basically, that's 77 00:03:42,560 --> 00:03:46,320 Speaker 1: why you would think that. Okay, if lift is showing 78 00:03:46,320 --> 00:03:47,880 Speaker 1: that it's going to be way more expensive, you would 79 00:03:47,920 --> 00:03:50,840 Speaker 1: think that more drivers I guess would sign up or 80 00:03:50,920 --> 00:03:53,560 Speaker 1: would switch over because a lot of them drive for 81 00:03:53,600 --> 00:03:55,840 Speaker 1: both of the different apps that they got over there, 82 00:03:55,840 --> 00:03:57,960 Speaker 1: pop on over because there's more of a demand there. 83 00:03:58,000 --> 00:04:00,080 Speaker 1: But then it would even out pretty quickly. But the 84 00:04:00,120 --> 00:04:03,000 Speaker 1: reality is, for some reason, the price disparity can still 85 00:04:03,040 --> 00:04:05,760 Speaker 1: be started, and so you've gotta shop every single time 86 00:04:05,760 --> 00:04:08,120 Speaker 1: you're getting a ride. It's fine, you're just kinda about 87 00:04:08,120 --> 00:04:10,000 Speaker 1: takes no time per apps to make it easy, but 88 00:04:10,200 --> 00:04:12,120 Speaker 1: you can say big money. So yeah, so definitely check both. 89 00:04:12,160 --> 00:04:13,960 Speaker 1: And again I just wanted to share that though, because 90 00:04:14,040 --> 00:04:16,320 Speaker 1: man it is I think being a one car family, 91 00:04:16,320 --> 00:04:18,680 Speaker 1: it is way more doable than a lot of people think. 92 00:04:18,680 --> 00:04:22,800 Speaker 1: In particular, if one of you has a very predictable commute, 93 00:04:22,880 --> 00:04:24,960 Speaker 1: very predictable you know, for me to come in here, 94 00:04:25,120 --> 00:04:27,080 Speaker 1: like you know you you write your bike over as well. 95 00:04:27,080 --> 00:04:29,320 Speaker 1: We just talked about bikes actually earlier this week, well 96 00:04:29,400 --> 00:04:31,480 Speaker 1: last week Sept to four two, with more and more 97 00:04:31,480 --> 00:04:34,000 Speaker 1: people working from home than ever before, or hybrid working 98 00:04:34,040 --> 00:04:35,600 Speaker 1: like not having to be going to the office as much. 99 00:04:35,680 --> 00:04:38,479 Speaker 1: Need to consider, it's more doable than it was even 100 00:04:38,520 --> 00:04:40,719 Speaker 1: five years ago, right to become a one car family, 101 00:04:40,800 --> 00:04:42,919 Speaker 1: if even if you're a family four or five, like, 102 00:04:43,400 --> 00:04:46,479 Speaker 1: it's just it's easier now than it's ever been. But 103 00:04:47,279 --> 00:04:49,080 Speaker 1: let's move on. Let's get to our Friday flight. A 104 00:04:49,160 --> 00:04:52,280 Speaker 1: sampling of stories we found interesting this week. There's a 105 00:04:52,279 --> 00:04:54,320 Speaker 1: lot of talk about we will get to inflation as well, 106 00:04:54,360 --> 00:04:56,800 Speaker 1: because we got those numbers just yesterday, and you know, 107 00:04:56,839 --> 00:04:59,000 Speaker 1: we talked about We've talked about our love for a 108 00:04:59,120 --> 00:05:02,680 Speaker 1: d U S matt or accessory dwelling units since the 109 00:05:02,720 --> 00:05:05,320 Speaker 1: inception of this podcast. Let's maybe start with a story 110 00:05:05,320 --> 00:05:07,760 Speaker 1: on that front. It literally it was I think like 111 00:05:07,800 --> 00:05:10,840 Speaker 1: episode two or three we talked about in your case, 112 00:05:10,880 --> 00:05:13,320 Speaker 1: you're thinking about getting an airstream in the backyard, and 113 00:05:13,360 --> 00:05:16,440 Speaker 1: I was just thinking about finishing out the basement, which 114 00:05:16,480 --> 00:05:19,120 Speaker 1: I we actually did end up doing, renting it out 115 00:05:19,120 --> 00:05:21,320 Speaker 1: on Airbnb, and so we took it over because that's 116 00:05:21,320 --> 00:05:22,720 Speaker 1: where we used to record, So we have we have 117 00:05:22,839 --> 00:05:24,880 Speaker 1: always thought out for the old basement, that's right. We 118 00:05:25,920 --> 00:05:29,159 Speaker 1: have always loved that idea though that it can it 119 00:05:29,200 --> 00:05:32,280 Speaker 1: can be a great way to get into the rental 120 00:05:32,320 --> 00:05:34,920 Speaker 1: property game. But the truth is a d us are 121 00:05:34,920 --> 00:05:38,880 Speaker 1: becoming more popular all around the country as more municipalities, 122 00:05:38,880 --> 00:05:42,320 Speaker 1: more cities are legalizing the building of of these things. 123 00:05:42,400 --> 00:05:44,640 Speaker 1: And so The Atlantic had a great article about this 124 00:05:44,680 --> 00:05:49,479 Speaker 1: phenomenon just the other day. Apparently more than sixty us 125 00:05:49,520 --> 00:05:53,280 Speaker 1: have been built in California since the law was changed 126 00:05:53,440 --> 00:05:56,440 Speaker 1: there just six years ago. And as we all know, 127 00:05:56,600 --> 00:05:59,479 Speaker 1: housing costs more of these days. Um, whether you're renting, 128 00:05:59,480 --> 00:06:02,200 Speaker 1: your buying US. Actually part of why the inflation numbers 129 00:06:02,200 --> 00:06:04,120 Speaker 1: are still so high, is it the cost of housing 130 00:06:04,160 --> 00:06:07,440 Speaker 1: remains remains pretty expensive. And and even though we're starting 131 00:06:07,440 --> 00:06:10,040 Speaker 1: to see more price cuts for buyers and for renters 132 00:06:10,080 --> 00:06:12,560 Speaker 1: out there, there's still just like this massive lack of 133 00:06:12,600 --> 00:06:15,400 Speaker 1: housing supply which is going to prevent prices from falling 134 00:06:15,680 --> 00:06:17,559 Speaker 1: as much as a lot of folks would like to see. 135 00:06:17,960 --> 00:06:22,120 Speaker 1: And what's the answer to the problem of more expensive housing. Well, 136 00:06:22,440 --> 00:06:26,120 Speaker 1: when we're talking basic economics, the short, simplest answer is 137 00:06:26,800 --> 00:06:30,279 Speaker 1: creating more supply and making a d use legal in 138 00:06:30,320 --> 00:06:33,120 Speaker 1: more places across the country and easier to permit at 139 00:06:33,120 --> 00:06:35,120 Speaker 1: the same time, as is at least one of those 140 00:06:35,120 --> 00:06:37,440 Speaker 1: ways in which we'll be able to stabilize prices. I 141 00:06:37,440 --> 00:06:40,520 Speaker 1: would say for for future homebuyers and renters. I'm glad 142 00:06:40,560 --> 00:06:43,560 Speaker 1: to see more people in California adopting jumping on the 143 00:06:43,600 --> 00:06:46,000 Speaker 1: A d U bandwagon, and I hope this just becomes 144 00:06:46,279 --> 00:06:49,279 Speaker 1: more commonplace in the years to come. Yeah, dude, I 145 00:06:49,279 --> 00:06:53,920 Speaker 1: want to reiterate that sixty thousand new residences for folks 146 00:06:53,920 --> 00:06:55,960 Speaker 1: who are looking to get get their own places, such 147 00:06:55,960 --> 00:07:00,159 Speaker 1: a meaningful additional supply, serious number of new housing units. Uh. 148 00:07:00,279 --> 00:07:02,719 Speaker 1: And even though I think there can be a criticism 149 00:07:02,720 --> 00:07:04,560 Speaker 1: of them, of them though because oftentimes they do tend 150 00:07:04,560 --> 00:07:06,720 Speaker 1: to be a little bit smaller. But there's a ripple effect, right, 151 00:07:06,720 --> 00:07:08,680 Speaker 1: because you've get you've got somebody who's looking to get 152 00:07:08,680 --> 00:07:10,920 Speaker 1: into their their first place, or somebody who's looking at 153 00:07:10,920 --> 00:07:13,440 Speaker 1: downsize or something like that. Well, that then frees up 154 00:07:13,480 --> 00:07:15,960 Speaker 1: another unit that they would have otherwise considered maybe a 155 00:07:15,960 --> 00:07:18,160 Speaker 1: one bedroom or two bedroom, right or like an apartment 156 00:07:18,240 --> 00:07:21,000 Speaker 1: or even a small house. That then that unit is 157 00:07:21,000 --> 00:07:23,440 Speaker 1: now available for the next family. And and and there 158 00:07:23,480 --> 00:07:26,640 Speaker 1: have been a lot of documentation recently of the lack 159 00:07:26,680 --> 00:07:30,160 Speaker 1: of starter homes available, like smaller sub fourteen foot square 160 00:07:30,200 --> 00:07:32,680 Speaker 1: square foot homes, and so because of that, like that, 161 00:07:33,200 --> 00:07:36,920 Speaker 1: it's true that the homes are being built are typically larger, 162 00:07:36,960 --> 00:07:39,240 Speaker 1: and so a d u s are typically smaller. Feeling 163 00:07:39,240 --> 00:07:41,200 Speaker 1: a void, I think that does exist. Yeah, I just 164 00:07:41,240 --> 00:07:43,440 Speaker 1: love that in theory at least there's this ripple effect 165 00:07:43,480 --> 00:07:46,160 Speaker 1: and hopefully that will at least keep housing prices in check. 166 00:07:46,440 --> 00:07:48,520 Speaker 1: Uh And I think the best line from that article 167 00:07:49,120 --> 00:07:52,120 Speaker 1: was that in short, merely legalizing a d U S 168 00:07:52,160 --> 00:07:55,680 Speaker 1: triggered a boom in affordable housing at no cost to 169 00:07:55,760 --> 00:08:00,000 Speaker 1: the taxpayer. Man. Just a slam dunk decision in our opinion, 170 00:08:00,120 --> 00:08:03,400 Speaker 1: because increasing density that means building more units for people 171 00:08:03,440 --> 00:08:05,200 Speaker 1: to live in, creating more supply. That is going to 172 00:08:05,280 --> 00:08:08,680 Speaker 1: go a long way towards increasing affordability. Uh. And you 173 00:08:08,720 --> 00:08:10,120 Speaker 1: know what kind of like you used to just just 174 00:08:10,200 --> 00:08:13,000 Speaker 1: second ago, Joel. The other cool thing about a d 175 00:08:13,160 --> 00:08:16,400 Speaker 1: U s not from a rental standpoint, but from a 176 00:08:16,480 --> 00:08:18,920 Speaker 1: landloading standpoint, is that they can be a great way 177 00:08:18,960 --> 00:08:21,760 Speaker 1: to get your feet wet as a real estate investor. 178 00:08:22,160 --> 00:08:23,920 Speaker 1: And so if you don't feel like you're ready to 179 00:08:24,000 --> 00:08:27,480 Speaker 1: buy an additional single family home or even a multi 180 00:08:27,480 --> 00:08:31,400 Speaker 1: family to rent out to prospective tenants, well, building a 181 00:08:31,480 --> 00:08:33,320 Speaker 1: unit in your own backyard that could be the perfect 182 00:08:33,360 --> 00:08:36,920 Speaker 1: fit and a potentially profitable endeavor as well. You just 183 00:08:36,960 --> 00:08:39,080 Speaker 1: need to make sure you run the numbers. You didn't 184 00:08:39,160 --> 00:08:40,840 Speaker 1: need to know what it's going to cost to build, 185 00:08:40,840 --> 00:08:43,240 Speaker 1: what you'll be able to rent it for, and obviously 186 00:08:43,280 --> 00:08:46,000 Speaker 1: whether or not it's actually legal, and you have to 187 00:08:46,000 --> 00:08:48,600 Speaker 1: be able to increase your cash flow every single month. 188 00:08:48,840 --> 00:08:50,320 Speaker 1: In a DU can be a great way to do 189 00:08:50,360 --> 00:08:52,319 Speaker 1: that can get you into the real estate game. Well, 190 00:08:52,400 --> 00:08:54,480 Speaker 1: speaking in real estate, mat, let's talk about house flipping 191 00:08:54,559 --> 00:08:56,760 Speaker 1: for a second, because that is, of course one of 192 00:08:56,800 --> 00:09:00,320 Speaker 1: the riskier ways to make money in the housing market. 193 00:09:00,360 --> 00:09:02,440 Speaker 1: But yeah, and whether or not you make money in 194 00:09:02,440 --> 00:09:05,319 Speaker 1: that business often has to do not just with how 195 00:09:05,360 --> 00:09:07,480 Speaker 1: good you are at doing it, but what's happening in 196 00:09:07,520 --> 00:09:10,760 Speaker 1: the market as a whole, Because it is a shorter 197 00:09:10,920 --> 00:09:14,040 Speaker 1: term endeavor. Uh, the market conditions have a major impact 198 00:09:14,040 --> 00:09:15,880 Speaker 1: on whether or not you make money. And it wasn't 199 00:09:15,880 --> 00:09:18,560 Speaker 1: nearly as difficult to look like a genius home flipper in, 200 00:09:20,920 --> 00:09:23,079 Speaker 1: but it's much harder to do the same thing in 201 00:09:24,400 --> 00:09:27,240 Speaker 1: as the market kind of stalls out in a big way, 202 00:09:27,320 --> 00:09:30,640 Speaker 1: and I buying service open Door they found that out 203 00:09:30,640 --> 00:09:33,079 Speaker 1: the hard way. They recently announced that they lost money 204 00:09:33,120 --> 00:09:37,400 Speaker 1: on fort of the homes they've listed for resale in August. 205 00:09:37,400 --> 00:09:39,760 Speaker 1: That's quite the hit. Yeah, exactly. They're not going to 206 00:09:39,800 --> 00:09:43,360 Speaker 1: remain profitable or be profitable at all if this stays. 207 00:09:43,400 --> 00:09:46,200 Speaker 1: If this continues, and whether or not these tech first 208 00:09:46,400 --> 00:09:48,520 Speaker 1: real estate companies are going to be successful in the 209 00:09:48,559 --> 00:09:51,400 Speaker 1: long run is anyone's guess. But what I took away 210 00:09:51,720 --> 00:09:54,800 Speaker 1: from seeing these numbers is that we've entered a really 211 00:09:54,800 --> 00:09:57,120 Speaker 1: tricky time when it comes to making money in real estate. 212 00:09:57,280 --> 00:09:59,760 Speaker 1: You know, a lot of individual flippers are finding themselves 213 00:09:59,800 --> 00:10:03,800 Speaker 1: in a game of like musical chairs, where they're kind 214 00:10:03,800 --> 00:10:06,160 Speaker 1: of the ones left standing there, left holding the bag. 215 00:10:06,600 --> 00:10:08,640 Speaker 1: If they bought the house, they put a lot of 216 00:10:08,640 --> 00:10:10,959 Speaker 1: money in hoping that the wind would continue to be 217 00:10:11,000 --> 00:10:13,640 Speaker 1: at their back. But as home prices are moderating or 218 00:10:13,679 --> 00:10:16,160 Speaker 1: even declining in some areas, they're finding themselves in a 219 00:10:16,200 --> 00:10:19,120 Speaker 1: tricky position. And the least risky way we would say 220 00:10:19,160 --> 00:10:21,800 Speaker 1: to pursue real estate investing is to think long term. 221 00:10:22,200 --> 00:10:23,960 Speaker 1: The stakes are high. If you're trying to make money 222 00:10:24,040 --> 00:10:27,720 Speaker 1: quickly via a strategy of flipping, you could lose a 223 00:10:27,720 --> 00:10:30,199 Speaker 1: big pile of money. And I think we've always tried 224 00:10:30,240 --> 00:10:33,439 Speaker 1: to temper people's enthusiasm when it comes to flipping houses, 225 00:10:33,720 --> 00:10:37,520 Speaker 1: because yeah, you can do well investing in that way, 226 00:10:37,679 --> 00:10:39,480 Speaker 1: but there's a whole lot more risk. At the same time, 227 00:10:39,520 --> 00:10:41,559 Speaker 1: there's a whole lot more risk, and obviously with more 228 00:10:41,640 --> 00:10:45,800 Speaker 1: risk oftentimes comes more reward. But you have to plan 229 00:10:46,040 --> 00:10:48,440 Speaker 1: for that additional risk, right Like that needs to be 230 00:10:48,480 --> 00:10:51,600 Speaker 1: built into your calculations. You can't just assume, like you said, 231 00:10:51,600 --> 00:10:54,079 Speaker 1: that the wind is always going to be at your back, uh, 232 00:10:54,120 --> 00:10:56,160 Speaker 1: and if the winds shift just a little bit, that 233 00:10:56,200 --> 00:10:59,040 Speaker 1: you're totally up the creek. Without a paddle. Uh, we 234 00:10:59,080 --> 00:11:01,960 Speaker 1: need more margin in our lives. And I think oftentimes, 235 00:11:02,000 --> 00:11:04,120 Speaker 1: like what you see our business, not just businesses, but 236 00:11:04,160 --> 00:11:07,480 Speaker 1: individuals trying to optimize their lives to where every single 237 00:11:07,520 --> 00:11:10,920 Speaker 1: dollar where they're squeezing as much value as they possibly 238 00:11:11,040 --> 00:11:14,680 Speaker 1: can from it. But what we sometimes need is a 239 00:11:14,720 --> 00:11:17,120 Speaker 1: little bit more margin and soon it. I mean, when 240 00:11:17,120 --> 00:11:18,960 Speaker 1: it comes to our personal finances, you might be hearing 241 00:11:18,960 --> 00:11:20,080 Speaker 1: this and you're like, well, I'm not going to flip 242 00:11:20,080 --> 00:11:21,880 Speaker 1: a house. Well, what that means though, with your savings 243 00:11:21,880 --> 00:11:24,600 Speaker 1: again your checking account is having a little bit more 244 00:11:24,640 --> 00:11:26,960 Speaker 1: cash set aside to absorb some of those some of 245 00:11:26,960 --> 00:11:30,119 Speaker 1: those shocks. And a big reason that we're seeing turmoil, 246 00:11:30,280 --> 00:11:32,640 Speaker 1: you know, in what was this red hot housing market, 247 00:11:32,720 --> 00:11:36,480 Speaker 1: is of course the soaring mortgage rates that everyone's been 248 00:11:36,520 --> 00:11:40,439 Speaker 1: seeing tick up. They've skyrocketed north of seven percent at 249 00:11:40,440 --> 00:11:42,240 Speaker 1: this at this point, which is a far cry from 250 00:11:42,240 --> 00:11:45,120 Speaker 1: the three percent rates folks were seeing just a year ago. 251 00:11:45,200 --> 00:11:46,840 Speaker 1: I have a friend, by the way, who has a 252 00:11:46,880 --> 00:11:50,360 Speaker 1: fifteen year mortgage that's under two percent, and I'm just like, 253 00:11:50,440 --> 00:11:53,560 Speaker 1: you're you're you're awesome, Congratulations you win, and also, don't 254 00:11:53,640 --> 00:11:57,160 Speaker 1: don't pay that one off early. Uh yeah, these these 255 00:11:57,200 --> 00:12:00,760 Speaker 1: massively increased costs of borrowing like they will shift a 256 00:12:00,760 --> 00:12:04,880 Speaker 1: market pretty quickly. And although this might be helpful for perspective, 257 00:12:05,080 --> 00:12:09,000 Speaker 1: we're still a ways off from what listener Lillium shared 258 00:12:09,120 --> 00:12:12,800 Speaker 1: in our Facebook group. Her thirty year mortgage rate was 259 00:12:12,840 --> 00:12:17,679 Speaker 1: just I have twelve percent. Could you imagine paying twelve percent? Uh, 260 00:12:18,240 --> 00:12:20,720 Speaker 1: that's one percent mortgage. There's none of listening as well, Glenn, 261 00:12:20,720 --> 00:12:23,160 Speaker 1: he mentioned that he had a mortgage rate of fifteen 262 00:12:23,360 --> 00:12:26,959 Speaker 1: and a half percent. Dude, this is back in one Uh, 263 00:12:27,080 --> 00:12:31,319 Speaker 1: not surprisingly, but we wanted to mention this because mortgage 264 00:12:31,400 --> 00:12:33,880 Speaker 1: rates are having a significant impact on what it is 265 00:12:33,920 --> 00:12:35,920 Speaker 1: that folks could afford. Right So, a year ago, if 266 00:12:35,920 --> 00:12:38,080 Speaker 1: you had a three percent mortgage, they'll say you could 267 00:12:38,080 --> 00:12:41,079 Speaker 1: afford a three thousand dollar monthly payment. That means that 268 00:12:41,160 --> 00:12:43,360 Speaker 1: you could have had a loan out on a property 269 00:12:43,720 --> 00:12:46,480 Speaker 1: that was in the seven fifty thousand dollar range. Today, 270 00:12:46,520 --> 00:12:49,520 Speaker 1: if you are getting a new mortgage at something at 271 00:12:49,559 --> 00:12:52,760 Speaker 1: seven percent and you are still basically limiting yourself to 272 00:12:52,800 --> 00:12:55,080 Speaker 1: that same three thousand dollar payment a month, that means 273 00:12:55,120 --> 00:12:58,080 Speaker 1: you can only afford a home with a four fifty 274 00:12:58,120 --> 00:13:00,000 Speaker 1: thousand dollar loans. So that there there's a there's a 275 00:13:00,120 --> 00:13:03,640 Speaker 1: massive difference in the type of property and what it 276 00:13:03,720 --> 00:13:05,360 Speaker 1: is that you can you can spend these days. And 277 00:13:05,360 --> 00:13:07,360 Speaker 1: I gotta say, by the way, we don't expect mortgage 278 00:13:07,400 --> 00:13:09,960 Speaker 1: rates to stay in the stratosphere forever. We do think 279 00:13:09,960 --> 00:13:12,440 Speaker 1: they'll go down, but it's who knows how long it's 280 00:13:12,480 --> 00:13:15,160 Speaker 1: going to be. It could be two years until we 281 00:13:15,240 --> 00:13:18,280 Speaker 1: see mortgage rates back down anywhere close to where they were. 282 00:13:18,600 --> 00:13:21,240 Speaker 1: And yeah, and so you could you could be twenty years, 283 00:13:21,320 --> 00:13:24,160 Speaker 1: like I mean, it could be unlikely. We I mean, 284 00:13:24,200 --> 00:13:27,040 Speaker 1: fingers crossed, holy crap, like that'd be insane, But you 285 00:13:27,080 --> 00:13:30,360 Speaker 1: never know. Yeah, and so you can't plan on refinancing 286 00:13:30,760 --> 00:13:32,680 Speaker 1: a short twelve months and lowering your rate by a 287 00:13:32,679 --> 00:13:34,880 Speaker 1: couple of points. You have to be able to afford 288 00:13:34,920 --> 00:13:38,360 Speaker 1: that mortgage in the meantime if you're gonna buy a house. Well, Matt, 289 00:13:38,400 --> 00:13:41,079 Speaker 1: let's talk about inflation for a second, because the CPI 290 00:13:41,200 --> 00:13:45,600 Speaker 1: numbers came out just yesterday morning. They weren't good. Inflation 291 00:13:45,679 --> 00:13:48,559 Speaker 1: is still a major problem, and food and housing costs 292 00:13:48,679 --> 00:13:51,679 Speaker 1: being kind of those main culprits. So we're going to 293 00:13:51,679 --> 00:13:54,920 Speaker 1: see FED rate hikes continue in all likelihood. Weeks talked 294 00:13:54,920 --> 00:13:57,079 Speaker 1: about that what last week on the show and how 295 00:13:57,120 --> 00:13:59,079 Speaker 1: because my whole theory I was thinking that the FED 296 00:13:59,160 --> 00:14:01,520 Speaker 1: might slow down a little that, but based on the 297 00:14:01,520 --> 00:14:03,760 Speaker 1: recent and Filo like, I was thinking, there's a lot 298 00:14:03,760 --> 00:14:05,960 Speaker 1: of people out there crying uncle, especially people at the 299 00:14:06,160 --> 00:14:09,240 Speaker 1: stock market investor types who they don't want to see 300 00:14:09,240 --> 00:14:12,199 Speaker 1: any more pain, but open letters and whatnot, we're likely 301 00:14:12,280 --> 00:14:14,319 Speaker 1: to see more of it, right, Yeah, I'm not expecting 302 00:14:14,360 --> 00:14:16,959 Speaker 1: of half percent increase. I'm I'm sure it will be 303 00:14:17,000 --> 00:14:19,520 Speaker 1: the three quarters percent increase would be my guest too. Well. 304 00:14:19,560 --> 00:14:22,880 Speaker 1: The best medium term saving solution to combat inflation in 305 00:14:22,920 --> 00:14:26,560 Speaker 1: all of our lives is still I bonds. They pay 306 00:14:26,640 --> 00:14:28,280 Speaker 1: higher rates than anything else you can find in the 307 00:14:28,280 --> 00:14:31,360 Speaker 1: market right now, but even though inflation is still high, 308 00:14:31,360 --> 00:14:33,960 Speaker 1: those rates are actually about to go down just a 309 00:14:34,000 --> 00:14:35,840 Speaker 1: little bit, which means that I bonds are going to 310 00:14:35,880 --> 00:14:38,520 Speaker 1: be quite as good of a deal as they have been. 311 00:14:38,640 --> 00:14:41,520 Speaker 1: That's right. Yeah, the current rate is nine point six, 312 00:14:42,560 --> 00:14:45,800 Speaker 1: but that's going to reset on November one, And so 313 00:14:45,880 --> 00:14:48,200 Speaker 1: the way it works is that the rate it shifts 314 00:14:48,240 --> 00:14:51,160 Speaker 1: every six months based on the c p I and 315 00:14:51,200 --> 00:14:53,760 Speaker 1: so that rate it's likely to shift downward to around 316 00:14:53,920 --> 00:14:56,840 Speaker 1: six and a half percent, and so the the takeaway here, 317 00:14:57,000 --> 00:14:58,520 Speaker 1: like you might be wondering, like, does this mean it's 318 00:14:58,560 --> 00:15:00,320 Speaker 1: time to you know, is it time to give up 319 00:15:00,360 --> 00:15:03,040 Speaker 1: buying I bonds? Well, you know, like they are not 320 00:15:03,120 --> 00:15:05,080 Speaker 1: for everyone. We we think that they do make the 321 00:15:05,080 --> 00:15:09,360 Speaker 1: most sense for folks who have some medium term savings goals. 322 00:15:09,360 --> 00:15:12,200 Speaker 1: But what this does mean is that if you're interested 323 00:15:12,200 --> 00:15:14,560 Speaker 1: in buying EYE bonds, that you should do this before 324 00:15:14,720 --> 00:15:18,640 Speaker 1: the rate changes on November one, because what that means 325 00:15:18,680 --> 00:15:22,320 Speaker 1: is you'll get that nine point for a full six months, 326 00:15:22,440 --> 00:15:25,120 Speaker 1: even if you buy at the very tail end, as 327 00:15:25,160 --> 00:15:27,360 Speaker 1: long as you get that purchase in before the cut off. 328 00:15:27,560 --> 00:15:29,880 Speaker 1: And so we'll link to the FED website where you 329 00:15:29,880 --> 00:15:32,440 Speaker 1: can buy those I bonds um And you know, keep 330 00:15:32,440 --> 00:15:34,720 Speaker 1: in mind, there's a reason that we're not dumping all 331 00:15:34,720 --> 00:15:37,440 Speaker 1: of our money into the I bonds because there's a cap. 332 00:15:37,880 --> 00:15:41,680 Speaker 1: We can't ten thousand dollars a year per person, although 333 00:15:41,800 --> 00:15:44,480 Speaker 1: there there is a bill that's been introduced attempting to 334 00:15:44,600 --> 00:15:48,360 Speaker 1: raise that limit to thirty dollars in some instances, and 335 00:15:48,480 --> 00:15:51,400 Speaker 1: if that does happen, if that actually passes, will definitely 336 00:15:51,480 --> 00:15:54,200 Speaker 1: keep you informed for sure. And by the way, the 337 00:15:54,240 --> 00:15:56,680 Speaker 1: Treasury direct Dot of Matt just got a facelift. At 338 00:15:56,760 --> 00:15:59,440 Speaker 1: least the front landing page. It doesn't look like look 339 00:15:59,480 --> 00:16:02,080 Speaker 1: at asaster known anymore, which is good. So I think 340 00:16:02,160 --> 00:16:05,120 Speaker 1: the back end still it's still kind of Microsoft Dossie looking. 341 00:16:05,160 --> 00:16:07,960 Speaker 1: It's it's pretty horrendous, hard to log in all that stuff, 342 00:16:08,120 --> 00:16:11,440 Speaker 1: and just generally abysmal web design. But the front page 343 00:16:11,440 --> 00:16:14,480 Speaker 1: at least looks kind of snazzy, and so yeah, good 344 00:16:14,520 --> 00:16:16,720 Speaker 1: good on the FEDS for personally been there since that 345 00:16:16,960 --> 00:16:20,440 Speaker 1: earlier this year. Yeah, I know. I bought mine in December. Literally, 346 00:16:20,480 --> 00:16:22,800 Speaker 1: I was looking back December thirty one and January three, 347 00:16:22,960 --> 00:16:25,760 Speaker 1: I bought I bonds in maxing out my allotment. It 348 00:16:25,840 --> 00:16:27,040 Speaker 1: was a good ton By. It was a good ton 349 00:16:27,080 --> 00:16:30,400 Speaker 1: to bye. But people can still get the nine point 350 00:16:30,400 --> 00:16:32,000 Speaker 1: six two and then if it's six and a half 351 00:16:32,040 --> 00:16:34,760 Speaker 1: that that blended interest rate is going to be pretty 352 00:16:34,760 --> 00:16:37,440 Speaker 1: strong for medium term savings. It's still in the eight 353 00:16:37,480 --> 00:16:39,360 Speaker 1: percent range. Yeah, still a good place to turn, even 354 00:16:39,400 --> 00:16:42,200 Speaker 1: though it's not annually quite as attractive as it was. Well, 355 00:16:42,320 --> 00:16:44,240 Speaker 1: add that to your to do list though, before you 356 00:16:44,280 --> 00:16:46,280 Speaker 1: reach the end of the month, that's right before Halloween, 357 00:16:46,360 --> 00:16:48,280 Speaker 1: make sure you buy I bones if you're if you've 358 00:16:48,280 --> 00:16:50,160 Speaker 1: been thinking this is something I need to do, knock 359 00:16:50,200 --> 00:16:51,920 Speaker 1: it out, make it happen for sure. All right, let's 360 00:16:51,920 --> 00:16:54,280 Speaker 1: get to a few more headlines and how they apply 361 00:16:54,320 --> 00:16:56,440 Speaker 1: to your finances. We've got more stories to get to, 362 00:16:56,520 --> 00:16:59,480 Speaker 1: including one about politics and money. We usually try to 363 00:16:59,520 --> 00:17:01,520 Speaker 1: avoid polic but we feel compelled to talk about it 364 00:17:01,600 --> 00:17:02,960 Speaker 1: at least for a little bit. We'll get to that 365 00:17:03,000 --> 00:17:14,040 Speaker 1: and more right after this. All right, man, we're back. 366 00:17:14,240 --> 00:17:16,640 Speaker 1: It's we're gonna tackle the second half now of our 367 00:17:16,720 --> 00:17:19,240 Speaker 1: Friday flight. And before we get to that money and 368 00:17:19,280 --> 00:17:23,359 Speaker 1: politics story and not the not the campaign finance reform 369 00:17:23,520 --> 00:17:25,840 Speaker 1: type of story, but as you know, similar kind of deal. 370 00:17:25,880 --> 00:17:28,200 Speaker 1: How how much should your personal politics influence what you 371 00:17:28,240 --> 00:17:29,720 Speaker 1: do with your money? Let back to that, how that 372 00:17:29,720 --> 00:17:32,920 Speaker 1: should affect your portfolio. Before we get to that, we've 373 00:17:32,920 --> 00:17:36,520 Speaker 1: got our ludicrous headline of the week. And this creative 374 00:17:36,880 --> 00:17:39,000 Speaker 1: fun headline comes from the l A Times and it 375 00:17:39,040 --> 00:17:44,160 Speaker 1: reads hots dog. They had it in parentheses. Cuisine San 376 00:17:44,200 --> 00:17:49,479 Speaker 1: Francisco offers seventy tasting menu for canines. And you know 377 00:17:49,720 --> 00:17:52,879 Speaker 1: the kiddies feel left out over here, Matt, Hey, katies 378 00:17:52,880 --> 00:17:55,400 Speaker 1: already have their like the kitty cafes where you sit 379 00:17:55,440 --> 00:17:57,360 Speaker 1: there and you drink your coffee and the cats get 380 00:17:57,400 --> 00:17:59,119 Speaker 1: to like hang out or whatever. You're going to like 381 00:17:59,119 --> 00:18:01,840 Speaker 1: adopt him though, I think, and you drink coffee. Yeah, 382 00:18:01,840 --> 00:18:04,880 Speaker 1: well it's not four the cats. I've never been you're 383 00:18:04,880 --> 00:18:08,399 Speaker 1: the cat Oh over here? This place is four dollars 384 00:18:08,480 --> 00:18:12,440 Speaker 1: and they have docs. Yeah. I mean, like, we don't 385 00:18:12,440 --> 00:18:15,480 Speaker 1: want to hate onum pet editors out there, Joel. Like 386 00:18:15,480 --> 00:18:17,000 Speaker 1: you and I, we both had dogs in the past, 387 00:18:17,280 --> 00:18:20,960 Speaker 1: and while we had our dogs, we weren't feeding them 388 00:18:20,960 --> 00:18:25,040 Speaker 1: like the cheapest crap food that existed, but we certainly 389 00:18:25,080 --> 00:18:28,520 Speaker 1: weren't taking them to fancy francy restaurants either. Folks are 390 00:18:28,600 --> 00:18:31,080 Speaker 1: dropping a lot of money on their dogs to go 391 00:18:31,119 --> 00:18:33,280 Speaker 1: out to eat. Uh. And it also makes sense that 392 00:18:33,320 --> 00:18:37,680 Speaker 1: this expensive dog eatery dog that launched out in San Francisco, 393 00:18:37,680 --> 00:18:40,720 Speaker 1: you say it like Vogue, Like Vogue Megan this dog okay, 394 00:18:41,040 --> 00:18:43,560 Speaker 1: And the clientele for a place like this, you know 395 00:18:43,560 --> 00:18:46,480 Speaker 1: they're likely gonna live in a wealthier urban city. But 396 00:18:46,560 --> 00:18:50,040 Speaker 1: hopefully this does not become a trend because, like you said, 397 00:18:50,520 --> 00:18:54,080 Speaker 1: Dogga chinos like these things start at five dollars a 398 00:18:54,200 --> 00:18:56,560 Speaker 1: pop here, uh, And you can even slurge for a 399 00:18:56,600 --> 00:19:00,520 Speaker 1: seventy five dollar three course meal for your pooche if 400 00:19:00,520 --> 00:19:03,320 Speaker 1: you like. That's like more than what Kate and I 401 00:19:03,400 --> 00:19:07,040 Speaker 1: spend when we go out and there's two of us 402 00:19:07,400 --> 00:19:12,560 Speaker 1: and we're humans at least a five course And but 403 00:19:12,760 --> 00:19:14,520 Speaker 1: on the other hand, what this makes me think because 404 00:19:14,560 --> 00:19:16,960 Speaker 1: because you think, well, dogs can't tell, like animals can't 405 00:19:16,960 --> 00:19:18,920 Speaker 1: tell what they're they're just you know, my dog eats 406 00:19:19,160 --> 00:19:21,280 Speaker 1: poop like he sees like cat poop on the sidewalk 407 00:19:21,320 --> 00:19:25,119 Speaker 1: and just like child's out on that sometimes. Yeah, but 408 00:19:25,160 --> 00:19:27,800 Speaker 1: it does make me think of did you remember the 409 00:19:27,800 --> 00:19:30,480 Speaker 1: story of the penguins out in Japan and the cost 410 00:19:30,560 --> 00:19:32,320 Speaker 1: of fish was going through the roof, and so the 411 00:19:32,440 --> 00:19:35,720 Speaker 1: zoo they switched to a more affordable fish, and the 412 00:19:35,720 --> 00:19:38,000 Speaker 1: penguins basically went on a hunger stretch, like they stopped 413 00:19:38,000 --> 00:19:40,520 Speaker 1: eating because they're like no, no, no, no, I want 414 00:19:40,520 --> 00:19:43,160 Speaker 1: the good stuff, give me the good fish. And so animals, 415 00:19:43,200 --> 00:19:46,000 Speaker 1: I mean, they can tell, but hopefully, and so I 416 00:19:46,040 --> 00:19:47,720 Speaker 1: say that because I don't want like, I'm not gonna 417 00:19:47,760 --> 00:19:49,359 Speaker 1: yuck on your yum. If you've got a dog and 418 00:19:49,359 --> 00:19:52,040 Speaker 1: you want to go do this maybe once like maybe 419 00:19:52,040 --> 00:19:54,159 Speaker 1: once a year for like their birthday or something like that. 420 00:19:54,160 --> 00:19:55,800 Speaker 1: You want to go buy them a little special treat 421 00:19:55,840 --> 00:19:57,960 Speaker 1: and take a picture, throw it up on the gram. 422 00:19:58,240 --> 00:20:00,520 Speaker 1: Then I think that's fine, But hopefully this does not 423 00:20:00,720 --> 00:20:03,560 Speaker 1: become normal, you know, like like we're not trying to 424 00:20:03,600 --> 00:20:06,400 Speaker 1: normalize this. This is sort of like a special occasion. 425 00:20:06,520 --> 00:20:08,600 Speaker 1: And if spending a lot of money on your dog 426 00:20:08,680 --> 00:20:12,040 Speaker 1: is your craft beer equivalent, that I can be okay with. Yeah. 427 00:20:12,080 --> 00:20:14,240 Speaker 1: I think the thing is just we as individuals, we 428 00:20:14,280 --> 00:20:16,880 Speaker 1: don't want to get accustomed to living too high falutinum 429 00:20:16,920 --> 00:20:19,359 Speaker 1: of life, at spending too much money on things, getting 430 00:20:19,359 --> 00:20:21,640 Speaker 1: a custodyer, right, Like, we start to get a customer 431 00:20:21,640 --> 00:20:24,639 Speaker 1: things pretty quickly. And it sounds like animals do too, right. 432 00:20:24,720 --> 00:20:26,320 Speaker 1: They start to get used to a certain sort of diet, 433 00:20:26,400 --> 00:20:28,600 Speaker 1: certain sort of taste, and then you try to cut 434 00:20:28,600 --> 00:20:30,800 Speaker 1: back save a little bit of money, and they're like no, 435 00:20:30,800 --> 00:20:32,440 Speaker 1: no, no no, no, not so fast. You got me used 436 00:20:32,440 --> 00:20:35,080 Speaker 1: to the high life now, and you better start. You 437 00:20:35,119 --> 00:20:37,800 Speaker 1: better continue to splurge for the good food or for 438 00:20:37,840 --> 00:20:40,399 Speaker 1: the fancy restaurant or whatever. It is. Like we all 439 00:20:40,560 --> 00:20:43,480 Speaker 1: it's like that hedonic adaptation that happens to all of us, 440 00:20:43,800 --> 00:20:46,359 Speaker 1: that scientific term where we just quickly get used to 441 00:20:46,440 --> 00:20:49,359 Speaker 1: those nicer things and we feel deprived once they're cut 442 00:20:49,400 --> 00:20:51,320 Speaker 1: out of our lives. And so I think, yeah, you're right, 443 00:20:51,320 --> 00:20:53,320 Speaker 1: And if this is a once a year splurtge, that's okay. 444 00:20:53,520 --> 00:20:56,239 Speaker 1: If this is a regular occurrence, If you're treat your 445 00:20:56,280 --> 00:20:58,080 Speaker 1: dog to fancy treats, like, they're gonna get used to 446 00:20:58,080 --> 00:20:59,680 Speaker 1: it and they're gonna be pissed when you when you 447 00:20:59,720 --> 00:21:02,920 Speaker 1: stop feeding them the fancy three course you know, ridiculously 448 00:21:02,960 --> 00:21:05,280 Speaker 1: expensive meals. Right, we're not the old ones suettable to 449 00:21:05,280 --> 00:21:08,560 Speaker 1: that lifestop that's are too, So all right, Uh yeah, 450 00:21:08,800 --> 00:21:10,520 Speaker 1: let's let's get to talking about investing for a second. 451 00:21:10,680 --> 00:21:13,200 Speaker 1: Because listener Derek he sent us this article which came 452 00:21:13,200 --> 00:21:15,720 Speaker 1: from market Watch, and I'm gonna read the headline in 453 00:21:15,760 --> 00:21:19,439 Speaker 1: this one because it reads, young people shouldn't say for retirements. 454 00:21:19,760 --> 00:21:23,400 Speaker 1: And this this definitely caught our attention because it goes 455 00:21:23,440 --> 00:21:26,680 Speaker 1: against everything that we've been saying for years. Matt. If 456 00:21:26,680 --> 00:21:28,679 Speaker 1: this is true, maybe it's time for us to like 457 00:21:28,960 --> 00:21:32,919 Speaker 1: hang up our microphones and quit podcasting. Yeah. If, but 458 00:21:32,960 --> 00:21:35,240 Speaker 1: I don't know, before we call it quits, let's maybe 459 00:21:35,840 --> 00:21:38,920 Speaker 1: dive a little bit deeper into this story because to 460 00:21:38,920 --> 00:21:40,879 Speaker 1: top it off, by the way, this comes from research 461 00:21:40,960 --> 00:21:43,880 Speaker 1: done by Nobel Prize winning economists. You and I we've 462 00:21:43,880 --> 00:21:46,880 Speaker 1: never been up for a Nobel prize. We likely never 463 00:21:46,920 --> 00:21:49,080 Speaker 1: will be. I can't imagine what circumstances it would take. 464 00:21:49,119 --> 00:21:51,840 Speaker 1: You speak for yourself. Maybe you will be. But let's 465 00:21:51,880 --> 00:21:55,160 Speaker 1: get to the rub of this theory. Basically, some economists 466 00:21:55,280 --> 00:21:59,119 Speaker 1: think that folks should strive for a consistent standard of 467 00:21:59,160 --> 00:22:01,479 Speaker 1: living throughout their lives. That's how they put it, and 468 00:22:01,520 --> 00:22:04,480 Speaker 1: that involves, and here's the their economic turn for it, 469 00:22:04,880 --> 00:22:09,000 Speaker 1: smoothing out your consumption. That will of course mean taking 470 00:22:09,040 --> 00:22:11,439 Speaker 1: on more debt when you're younger and waiting to invest 471 00:22:11,560 --> 00:22:14,159 Speaker 1: until you're closer to your peak earning years. And so 472 00:22:14,200 --> 00:22:15,840 Speaker 1: what they're trying to say is that folks who are 473 00:22:16,080 --> 00:22:18,240 Speaker 1: who are earlier on in their lives, they shouldn't be 474 00:22:18,320 --> 00:22:20,639 Speaker 1: quite as focused on the future because it won't be 475 00:22:20,680 --> 00:22:23,199 Speaker 1: too long before the higher earning years come around and 476 00:22:23,240 --> 00:22:25,800 Speaker 1: they can increase our savings at that point worry about 477 00:22:25,800 --> 00:22:30,400 Speaker 1: it tomorrow, exactly the snooze button on saving and investing. Right. 478 00:22:30,680 --> 00:22:32,920 Speaker 1: Of course, we're not fans of that. And even though 479 00:22:32,960 --> 00:22:36,520 Speaker 1: these are Nobel winning economists here, we remain unconvinced. YEA. 480 00:22:36,720 --> 00:22:38,879 Speaker 1: A part of the argument, right was that, hey, a 481 00:22:38,880 --> 00:22:41,639 Speaker 1: thousand dollars to somebody who's broke or who's just you know, 482 00:22:42,160 --> 00:22:44,040 Speaker 1: like at their first job, Like, that's a lot of money. 483 00:22:44,080 --> 00:22:47,399 Speaker 1: But if you're making a Hunters, what's a thousand bucks? 484 00:22:47,400 --> 00:22:50,200 Speaker 1: That's nothing. I mean, yes, I agree, I'm not gonna 485 00:22:50,320 --> 00:22:52,840 Speaker 1: argue that point. But when it comes to saving for retirement, 486 00:22:52,920 --> 00:22:56,400 Speaker 1: especially with like work sponsored retirement accounts, we're talking about percentages, right, 487 00:22:56,680 --> 00:23:00,080 Speaker 1: and so for somebody who's like making thirty forty and 488 00:23:00,280 --> 00:23:02,359 Speaker 1: dollars a year, like, even if you can get them 489 00:23:02,400 --> 00:23:06,240 Speaker 1: investing one percent of their income, we're only talking about 490 00:23:06,320 --> 00:23:09,120 Speaker 1: bucks or four bucks a year. That is not that 491 00:23:09,119 --> 00:23:10,919 Speaker 1: that's a sign up bonus with a credit card, like 492 00:23:10,960 --> 00:23:13,040 Speaker 1: that is not that much money. But on the other hand, 493 00:23:13,040 --> 00:23:14,400 Speaker 1: you know, like, I see what they're getting at. Because 494 00:23:14,400 --> 00:23:17,080 Speaker 1: if you front load the sacrifice too much where you're 495 00:23:17,080 --> 00:23:19,920 Speaker 1: eating rice and beans every single night because you are 496 00:23:19,960 --> 00:23:23,160 Speaker 1: attempting to invest like over thirty percent of your income 497 00:23:23,240 --> 00:23:26,159 Speaker 1: or something um on a small post college salary like 498 00:23:26,200 --> 00:23:27,720 Speaker 1: that is going to be a tough way to live. 499 00:23:28,160 --> 00:23:30,399 Speaker 1: But it's also true that the longer you wait to invest, 500 00:23:30,520 --> 00:23:32,399 Speaker 1: the more that you're going to need to sit aside 501 00:23:32,400 --> 00:23:35,520 Speaker 1: with every future paycheck that you receive, whereas the earlier 502 00:23:35,680 --> 00:23:37,360 Speaker 1: you begin, the easier is going to be to get 503 00:23:37,400 --> 00:23:41,399 Speaker 1: that wealth. Snowball rolling downhill and Jim Dolly, he's got 504 00:23:41,480 --> 00:23:45,800 Speaker 1: a fantastic site, The White Coat Investor. Not surprisingly, he 505 00:23:45,920 --> 00:23:49,199 Speaker 1: writes to physicians, folks who are in the medical industry, doctors, 506 00:23:49,440 --> 00:23:51,960 Speaker 1: but he tells his readers to live like a resident 507 00:23:52,040 --> 00:23:55,720 Speaker 1: even when they become attending physicians. A lot of times 508 00:23:56,119 --> 00:23:58,679 Speaker 1: you can fall into that mindset. It's lifestyle creep basically, 509 00:23:58,760 --> 00:24:00,200 Speaker 1: right like you think, oh, now that I'm a doctor, 510 00:24:00,400 --> 00:24:02,520 Speaker 1: I'm gonna go ahead, and I'm gonna go ahead of 511 00:24:02,600 --> 00:24:05,720 Speaker 1: the BMW whatever it is. You're gonna drop the big 512 00:24:05,760 --> 00:24:08,080 Speaker 1: money on the things that you feel like are associated 513 00:24:08,119 --> 00:24:11,399 Speaker 1: with being a legit doctor. The paycheck shoot up, and 514 00:24:11,400 --> 00:24:14,480 Speaker 1: so does your lifestyle instantaneous What about all those student loans, 515 00:24:14,480 --> 00:24:16,439 Speaker 1: what about all that debt that you've got um and 516 00:24:16,480 --> 00:24:19,880 Speaker 1: so to maintain that that resident lifestyle. We think that's 517 00:24:19,920 --> 00:24:23,440 Speaker 1: great advice because there's a difference between living so frugally 518 00:24:23,720 --> 00:24:26,560 Speaker 1: that life is pleasureless and the truth though, that you 519 00:24:26,600 --> 00:24:30,320 Speaker 1: can positively impact your financial future by prioritizing future you 520 00:24:30,600 --> 00:24:33,760 Speaker 1: even when you're young, and even when your income and smaller. Uh, 521 00:24:34,040 --> 00:24:37,040 Speaker 1: there's also just the fact that you're building habits all 522 00:24:37,080 --> 00:24:39,560 Speaker 1: along the way to make that easier down the road 523 00:24:39,600 --> 00:24:41,520 Speaker 1: as well. So just keep that in mind. There's always 524 00:24:41,520 --> 00:24:44,040 Speaker 1: trade offs in life, but it truly doesn't have to 525 00:24:44,080 --> 00:24:46,639 Speaker 1: be in either or scenario. We think that if you 526 00:24:46,960 --> 00:24:49,159 Speaker 1: just take this approach, you know too far, like it 527 00:24:49,200 --> 00:24:51,240 Speaker 1: can be too much of a gamble. Basically you're just 528 00:24:51,320 --> 00:24:54,240 Speaker 1: rolling the dice, counting on you know, a higher income 529 00:24:54,520 --> 00:24:57,000 Speaker 1: and the ability to invest more weight on the road 530 00:24:57,200 --> 00:24:59,280 Speaker 1: when you could at least be getting started right now. 531 00:24:59,359 --> 00:25:01,199 Speaker 1: And it's one of those things that makes sense in 532 00:25:01,240 --> 00:25:04,199 Speaker 1: an economic paper, in a white paper. It's it sounds 533 00:25:04,200 --> 00:25:07,480 Speaker 1: good when economists are yacking it up or something at 534 00:25:07,520 --> 00:25:10,000 Speaker 1: some fancy university, but when it comes to the reality 535 00:25:10,000 --> 00:25:13,760 Speaker 1: of every day life and we're not guaranteed massive incomes 536 00:25:13,800 --> 00:25:16,400 Speaker 1: in our middle earning years. And like I look back 537 00:25:16,400 --> 00:25:18,400 Speaker 1: to my parents, Matt, my dad lost his middle management 538 00:25:18,480 --> 00:25:21,479 Speaker 1: job right when we're about my kid's age, and right 539 00:25:21,520 --> 00:25:24,200 Speaker 1: when maybe somebody in his position would have expected to 540 00:25:24,200 --> 00:25:26,880 Speaker 1: start hitting some of those higher paying exactly, and so 541 00:25:27,040 --> 00:25:28,840 Speaker 1: it would have been great if he had been saving 542 00:25:28,840 --> 00:25:31,080 Speaker 1: more and investing more in those early years instead of 543 00:25:31,280 --> 00:25:32,919 Speaker 1: people kept telling him, like you learn more, of course 544 00:25:32,960 --> 00:25:34,480 Speaker 1: you're gonna earn more down the road, like buy that 545 00:25:34,520 --> 00:25:37,520 Speaker 1: bigger house, Like it's okay. And that is the kind 546 00:25:37,520 --> 00:25:39,359 Speaker 1: of advice that these economists might say, like smooth that 547 00:25:39,440 --> 00:25:42,480 Speaker 1: your consumption, but you're not promised at higher paying job tomorrow. 548 00:25:42,680 --> 00:25:44,720 Speaker 1: And so that's only looking at the income side of 549 00:25:44,720 --> 00:25:47,439 Speaker 1: things as well, right, because they're also assuming that, like 550 00:25:47,520 --> 00:25:49,800 Speaker 1: what they're saying is to peg your consumption, peg your 551 00:25:49,800 --> 00:25:52,359 Speaker 1: expenses at a fixed amount, and just stick with that 552 00:25:52,600 --> 00:25:54,320 Speaker 1: the whole rest of your life. Well, that's not how 553 00:25:54,359 --> 00:25:57,159 Speaker 1: people behave, right, I mean, like, expences do go up, 554 00:25:57,920 --> 00:26:00,280 Speaker 1: go up, and we're not robots. It's difficult thing for 555 00:26:00,320 --> 00:26:03,280 Speaker 1: anybody out there, and from a realistic standpoint to say, Okay, 556 00:26:03,400 --> 00:26:05,800 Speaker 1: I'm gonna immediately start living this kind of lifestyle and 557 00:26:05,800 --> 00:26:09,399 Speaker 1: then just maintain that. Nah, Like somebody who's used to 558 00:26:09,400 --> 00:26:11,280 Speaker 1: a certain kind of lifestyle, they're definitely not going to 559 00:26:11,400 --> 00:26:14,520 Speaker 1: scale back. But you're also discounting the ability for some 560 00:26:14,560 --> 00:26:16,840 Speaker 1: of that lifestyle creep to you know, to start finding 561 00:26:16,840 --> 00:26:20,120 Speaker 1: their way into their personal finances where it's affecting their budget. Yeah. 562 00:26:20,119 --> 00:26:23,000 Speaker 1: And one last thing that goes against I would say this, 563 00:26:23,000 --> 00:26:27,400 Speaker 1: this philosophy of consumption smoothing, is that if you're not 564 00:26:27,560 --> 00:26:29,880 Speaker 1: supposed to be investing very much for retirement in those 565 00:26:29,880 --> 00:26:32,160 Speaker 1: early years, often times you're gonna be missing out on 566 00:26:32,280 --> 00:26:35,360 Speaker 1: free money that match from your employer. You're losing out 567 00:26:35,400 --> 00:26:37,600 Speaker 1: on free money that's helping, you, say, for your future, 568 00:26:37,960 --> 00:26:40,960 Speaker 1: and if you do that for too many, too many years, 569 00:26:41,240 --> 00:26:43,679 Speaker 1: that's going to have detrimental long term effects to you know, 570 00:26:43,680 --> 00:26:45,880 Speaker 1: you're missing out on that multiplier man. Yeah, alright, let's 571 00:26:45,880 --> 00:26:47,760 Speaker 1: talk about politics here for a second. Match is something 572 00:26:47,800 --> 00:26:50,160 Speaker 1: we try to stay away from as much as possible 573 00:26:50,200 --> 00:26:52,679 Speaker 1: on this show. There are certainly just political maneuvers that 574 00:26:52,680 --> 00:26:56,119 Speaker 1: we have to cover that impact our finances. But mid 575 00:26:56,240 --> 00:26:58,280 Speaker 1: term elections are right around the corner. We thought it 576 00:26:58,359 --> 00:27:00,840 Speaker 1: might be a good time to mention in that it's 577 00:27:00,880 --> 00:27:04,320 Speaker 1: important to keep your politics separate from how you handle 578 00:27:04,359 --> 00:27:07,240 Speaker 1: your money. At Barry Rittholtz, we really like his blog. 579 00:27:07,320 --> 00:27:10,360 Speaker 1: He wrote this week about the y'all e t F which, 580 00:27:10,480 --> 00:27:12,080 Speaker 1: by the way, why is this got to be associated 581 00:27:12,080 --> 00:27:15,040 Speaker 1: with the best word in the in the world. Southerners. 582 00:27:15,040 --> 00:27:17,560 Speaker 1: We use the word y'all understandably so because it's the 583 00:27:17,560 --> 00:27:19,760 Speaker 1: best way to address a group of people. But this y'all. 584 00:27:19,760 --> 00:27:22,240 Speaker 1: E t F just launched, which and it's attempting to 585 00:27:22,240 --> 00:27:25,800 Speaker 1: to screen out more left leaning companies investing in businesses 586 00:27:26,119 --> 00:27:30,080 Speaker 1: that align with more conservative beliefs. Well, well, here's the question. 587 00:27:30,080 --> 00:27:31,399 Speaker 1: What sort of fee do they charge for you to 588 00:27:31,440 --> 00:27:34,719 Speaker 1: be able to invest according to your political beliefs? Sixty 589 00:27:34,760 --> 00:27:37,959 Speaker 1: five basis points, which is pretty high. We've not had 590 00:27:38,000 --> 00:27:41,320 Speaker 1: great Yeah, that's expensive, it's a lot. That's a lot. 591 00:27:41,359 --> 00:27:43,719 Speaker 1: That's way more than our favorite funds that we discussed 592 00:27:43,720 --> 00:27:45,680 Speaker 1: all the time here on the show. We've not had 593 00:27:45,720 --> 00:27:48,240 Speaker 1: great things to say about E. S G funds either, 594 00:27:48,440 --> 00:27:50,560 Speaker 1: which you're pushing people kind of in the other direction. 595 00:27:50,840 --> 00:27:53,399 Speaker 1: But it's our belief that your politics should influence who 596 00:27:53,440 --> 00:27:55,760 Speaker 1: you vote for and what causes you give to, but 597 00:27:56,280 --> 00:27:58,960 Speaker 1: it shouldn't have an influence on how you invest your money. 598 00:27:59,160 --> 00:28:01,960 Speaker 1: We would say, put on the political blindfold and invest 599 00:28:02,040 --> 00:28:05,200 Speaker 1: in index funds. In a world that's kind of supercharged 600 00:28:05,240 --> 00:28:07,320 Speaker 1: by politics, Matt, this is one place where we should 601 00:28:07,359 --> 00:28:09,119 Speaker 1: draw line in the sand totally yeah, And I'm with 602 00:28:09,160 --> 00:28:12,359 Speaker 1: you as far as it's just an over over generalization 603 00:28:12,440 --> 00:28:14,600 Speaker 1: to say that anybody who uses the word y'all is 604 00:28:14,600 --> 00:28:16,280 Speaker 1: going to be like, oh, yeah, this is totally something 605 00:28:16,320 --> 00:28:19,760 Speaker 1: I'm gonna invested. Like, as someone who is born and 606 00:28:19,880 --> 00:28:22,000 Speaker 1: raised in Georgia, I have so many friends who would 607 00:28:22,040 --> 00:28:25,160 Speaker 1: be offended were somebody to assume that they are some 608 00:28:25,240 --> 00:28:28,399 Speaker 1: sort of ultra right leaning like Trump supporter. You know, 609 00:28:28,760 --> 00:28:30,359 Speaker 1: no that, and and Georgia is kind of one of 610 00:28:30,400 --> 00:28:32,280 Speaker 1: those purple states. Were somewhere right in the middle in 611 00:28:32,280 --> 00:28:33,800 Speaker 1: a whole lot of ways. And so to use this 612 00:28:34,440 --> 00:28:37,280 Speaker 1: as it offends me because like you, we use y'all 613 00:28:37,320 --> 00:28:40,840 Speaker 1: a decent bit and so on. Unrelated note, it's tough 614 00:28:40,880 --> 00:28:43,680 Speaker 1: to watch companies trying to cash in on this polarization 615 00:28:43,680 --> 00:28:47,400 Speaker 1: that's happening in the country because they are only increasing 616 00:28:47,440 --> 00:28:50,400 Speaker 1: the divide between the two parties. And the Journal they 617 00:28:50,720 --> 00:28:54,560 Speaker 1: actually had an article about how an anti woke bank 618 00:28:54,960 --> 00:28:57,560 Speaker 1: appears to be biting the dust. Uh. This bank was 619 00:28:57,600 --> 00:29:01,520 Speaker 1: called it's even crimp to just even say it, man, 620 00:29:01,560 --> 00:29:06,120 Speaker 1: but it's called glorify f I uh like financially independent 621 00:29:06,200 --> 00:29:09,040 Speaker 1: or finance. But this was an attempt to target a 622 00:29:09,160 --> 00:29:12,080 Speaker 1: right leaning audience to transfer basically all of their banking 623 00:29:12,120 --> 00:29:15,200 Speaker 1: dollars their way in an effort to supposedly align their 624 00:29:15,240 --> 00:29:19,200 Speaker 1: banking relationships with their values. But as the journal documents, 625 00:29:19,320 --> 00:29:21,840 Speaker 1: it's not doing so well. Investors are are pulling out, 626 00:29:21,880 --> 00:29:24,480 Speaker 1: and it went bankrupt in a few short months. The 627 00:29:24,520 --> 00:29:27,160 Speaker 1: reason we share this, we're touching on these stories is 628 00:29:27,200 --> 00:29:30,080 Speaker 1: because we think the moral here is that it's better 629 00:29:30,320 --> 00:29:34,200 Speaker 1: to not care about the political leanings like of the 630 00:29:34,200 --> 00:29:36,680 Speaker 1: CEO of of every single company that you do business with. 631 00:29:36,960 --> 00:29:39,000 Speaker 1: If you were to try to do that, it's gonna be, honestly, 632 00:29:39,040 --> 00:29:41,240 Speaker 1: it's gonna become too exhausting. Instead, we want you to 633 00:29:41,280 --> 00:29:43,760 Speaker 1: prioritize the interest rate first of all, but then look 634 00:29:43,800 --> 00:29:46,400 Speaker 1: through some of the other softer, you know, things to 635 00:29:46,440 --> 00:29:49,440 Speaker 1: consider when it comes to a bank, like the customer service, 636 00:29:49,480 --> 00:29:53,120 Speaker 1: the user interface, some of the other offerings that they 637 00:29:53,240 --> 00:29:57,320 Speaker 1: are making available to their customers. Just bottom line, attempting 638 00:29:57,360 --> 00:30:00,120 Speaker 1: to align every money decision with your political leaning. We 639 00:30:00,160 --> 00:30:03,200 Speaker 1: think that that's a fool's Errand yeah, so hopefully we're 640 00:30:03,200 --> 00:30:05,800 Speaker 1: able to touch on politics without getting too political. It's 641 00:30:05,840 --> 00:30:08,560 Speaker 1: just sort of neutral way get everything is we're politically 642 00:30:08,560 --> 00:30:11,440 Speaker 1: politicizing everything, it feels like around us in this country. 643 00:30:11,640 --> 00:30:14,360 Speaker 1: The more we do it, the more toxic the discussion gets, 644 00:30:14,400 --> 00:30:16,880 Speaker 1: the discourse gets, and we would like to see politics 645 00:30:16,920 --> 00:30:18,840 Speaker 1: taken out of some of these things. And yet it 646 00:30:18,840 --> 00:30:21,280 Speaker 1: feels like every area of our lives, including our money, 647 00:30:21,320 --> 00:30:24,240 Speaker 1: people are trying to say, oh, they're trying to woo 648 00:30:24,320 --> 00:30:27,160 Speaker 1: you with their political stance to come over and invest 649 00:30:27,280 --> 00:30:29,200 Speaker 1: or bank there, when the reality is it might not 650 00:30:29,280 --> 00:30:31,360 Speaker 1: be best for your personal finances, it might not be 651 00:30:31,360 --> 00:30:34,320 Speaker 1: best for your savings and investments, and typically it's not 652 00:30:34,520 --> 00:30:37,080 Speaker 1: all right. Last story, Matt, let's talk about streaming for 653 00:30:37,120 --> 00:30:39,880 Speaker 1: just a second. You and I we've been hearing rumors 654 00:30:39,920 --> 00:30:44,120 Speaker 1: about an ad supported tier of Netflix coming soon. Well, 655 00:30:44,280 --> 00:30:47,320 Speaker 1: they announced the details just yesterday. It's gonna be free, right, 656 00:30:48,680 --> 00:30:51,920 Speaker 1: that would be nice, but no, basically, it's it's gonna 657 00:30:51,920 --> 00:30:54,640 Speaker 1: cast six a month, and you can expect to sit 658 00:30:54,680 --> 00:30:57,480 Speaker 1: through roughly five minutes of ads an hour to be 659 00:30:57,520 --> 00:30:59,560 Speaker 1: able to keep those those extra couple of bucks in 660 00:30:59,560 --> 00:31:02,000 Speaker 1: your podcast. Think it's it's three dollars less than the 661 00:31:02,040 --> 00:31:05,960 Speaker 1: other basics here. That's that's without ads. So the question 662 00:31:06,080 --> 00:31:08,360 Speaker 1: is is it worth it to save that extra money 663 00:31:08,800 --> 00:31:10,880 Speaker 1: in order to be forced to sit through ads before 664 00:31:11,320 --> 00:31:14,080 Speaker 1: and during your favorite shows. We would say, that's really 665 00:31:14,160 --> 00:31:16,240 Speaker 1: up to you, but I'm so blused little decisions. It 666 00:31:16,320 --> 00:31:18,680 Speaker 1: is just like the politics thing. We just started saying. Yes. 667 00:31:18,920 --> 00:31:21,120 Speaker 1: But some folks are going to be thrilled to save 668 00:31:21,160 --> 00:31:23,240 Speaker 1: three bucks a month. Other people are like, there's no way. 669 00:31:23,280 --> 00:31:25,200 Speaker 1: I hate ads. I'm not gonna do it. But at 670 00:31:25,280 --> 00:31:27,479 Speaker 1: least folks have the option. Now. I like it. I 671 00:31:27,520 --> 00:31:30,000 Speaker 1: like it. You can choose which one you want because 672 00:31:30,040 --> 00:31:32,480 Speaker 1: I know ads can be annoying, but they also allow 673 00:31:32,600 --> 00:31:34,040 Speaker 1: us to get a whole lot of content that we 674 00:31:34,080 --> 00:31:37,200 Speaker 1: love for free or for less money. Oh yeah, absolutely, 675 00:31:37,280 --> 00:31:39,000 Speaker 1: So for you, are you gonna you're gonna be willing 676 00:31:39,000 --> 00:31:41,479 Speaker 1: to save a few bucks and just zone out when 677 00:31:41,480 --> 00:31:43,880 Speaker 1: they add them on? If if you're forced to watch 678 00:31:44,080 --> 00:31:47,000 Speaker 1: a tight commercial. I don't know. That's a good question. 679 00:31:47,040 --> 00:31:48,280 Speaker 1: I'm not I'm not sure yet. I have to think 680 00:31:48,320 --> 00:31:50,880 Speaker 1: about it, and my guess is I'll probably stick with 681 00:31:50,920 --> 00:31:53,560 Speaker 1: the although I'm not really. I'm not a Netflix subscriber 682 00:31:53,640 --> 00:31:54,840 Speaker 1: right now, so I don't have to make that decision. 683 00:31:54,920 --> 00:31:56,760 Speaker 1: Same same here, I am not either, but when the 684 00:31:56,760 --> 00:31:59,240 Speaker 1: time comes, I do not think I'm gonna be willing to. 685 00:31:59,480 --> 00:32:02,480 Speaker 1: And because it depends on how it is that they 686 00:32:02,520 --> 00:32:04,640 Speaker 1: implement the commercials right, Because back in the day, when 687 00:32:04,680 --> 00:32:06,479 Speaker 1: you're sitting there watching a TV show, like a lot 688 00:32:06,520 --> 00:32:09,080 Speaker 1: of times they would they would format the shows to 689 00:32:09,120 --> 00:32:11,200 Speaker 1: where there is a spot for a natural break. But 690 00:32:11,240 --> 00:32:14,160 Speaker 1: if you're sitting there watching a movie and like you said, 691 00:32:14,160 --> 00:32:17,040 Speaker 1: five ads for you know, within an hour's worth of 692 00:32:17,040 --> 00:32:19,640 Speaker 1: a content, that sounds terrible. Man, Like imagine watching a 693 00:32:19,680 --> 00:32:23,200 Speaker 1: two hour movie and being forced to sit through ten ads. 694 00:32:23,560 --> 00:32:26,920 Speaker 1: That sounds like the worst night of my life. Like 695 00:32:26,960 --> 00:32:29,000 Speaker 1: it makes me think of some of the free services 696 00:32:29,320 --> 00:32:32,360 Speaker 1: like Pluto TV or whatever like Crackle, and like I'm 697 00:32:32,400 --> 00:32:35,200 Speaker 1: sitting there with the kids, We're watching Harry Potter and 698 00:32:35,200 --> 00:32:36,600 Speaker 1: then all of a sudden an ad pops up for 699 00:32:36,680 --> 00:32:38,719 Speaker 1: like six Flags or something like that. Just it kind 700 00:32:38,760 --> 00:32:41,240 Speaker 1: of like ruins the scene. And they're not strategically placed, 701 00:32:41,560 --> 00:32:43,560 Speaker 1: like maybe it's in between scenes, but it just kills 702 00:32:43,600 --> 00:32:45,760 Speaker 1: the like, kills the vibe, kills the mood a little bit. 703 00:32:45,760 --> 00:32:48,960 Speaker 1: Whereas with TV shows, in particularly if it's like a sitcom, 704 00:32:49,080 --> 00:32:50,920 Speaker 1: I don't think I would mind as much if there 705 00:32:51,000 --> 00:32:52,920 Speaker 1: was an ad that popped up. But if we're talking 706 00:32:52,960 --> 00:32:55,160 Speaker 1: about movies, no way, Like would you pay less to 707 00:32:55,160 --> 00:32:57,560 Speaker 1: go to watch a movie in a movie theater and 708 00:32:57,600 --> 00:32:58,960 Speaker 1: you're just sitting there and all of a sudden like 709 00:32:59,000 --> 00:33:01,560 Speaker 1: an ad pops up? Depends how much because movies are 710 00:33:01,760 --> 00:33:03,320 Speaker 1: at the theater are really friensive. I haven't gotten a 711 00:33:03,320 --> 00:33:05,560 Speaker 1: couple of years because but it just sounds terrible. I'm 712 00:33:05,600 --> 00:33:08,600 Speaker 1: sure any film critic or buff anybody who's about like 713 00:33:08,600 --> 00:33:10,600 Speaker 1: real big into movies would would also think that this 714 00:33:10,640 --> 00:33:13,520 Speaker 1: is a terrible idea. Probably, but for different reasons. For 715 00:33:13,520 --> 00:33:15,080 Speaker 1: a lot of people, they're gonna be into it. And 716 00:33:15,200 --> 00:33:16,920 Speaker 1: Netflix thinks are gonna make a lot of money doing this, 717 00:33:16,960 --> 00:33:19,800 Speaker 1: and I'm just glad that people have again the option. 718 00:33:19,880 --> 00:33:21,280 Speaker 1: I love it. All right, that's gonna do it for 719 00:33:21,440 --> 00:33:23,920 Speaker 1: this episode. For folks who want show notes, you can 720 00:33:24,000 --> 00:33:25,800 Speaker 1: hit to our website catch them there at how to 721 00:33:25,880 --> 00:33:28,360 Speaker 1: money dot com. That's right, And if you have not 722 00:33:28,480 --> 00:33:30,320 Speaker 1: yet signed up for the how to Money newsletter, you 723 00:33:30,360 --> 00:33:32,440 Speaker 1: need to do that. Head over to how to Money 724 00:33:32,480 --> 00:33:35,560 Speaker 1: dot com forward slash newsletter sign up. It'll show up 725 00:33:35,640 --> 00:33:38,840 Speaker 1: in your inbox every Tuesday morning, and it's gonna be 726 00:33:38,880 --> 00:33:42,240 Speaker 1: encouraging it's gonna be helpful. Uh. And it's like their 727 00:33:42,280 --> 00:33:44,920 Speaker 1: chock full of practical things, practical steps that you can 728 00:33:44,960 --> 00:33:47,720 Speaker 1: take that are going to allow you to get ahead 729 00:33:47,880 --> 00:33:50,600 Speaker 1: with your money. And not to mention, we would appreciate 730 00:33:50,640 --> 00:33:52,440 Speaker 1: it were you to do that, Joel. That's going to 731 00:33:52,560 --> 00:33:54,800 Speaker 1: be it for this Friday flight. We'll see you back 732 00:33:54,840 --> 00:33:57,120 Speaker 1: here on Monday. We've got a fresh ask how to 733 00:33:57,160 --> 00:33:59,920 Speaker 1: Money episode for you. Until next time, best Friends Out, 734 00:34:00,280 --> 00:34:01,480 Speaker 1: Best Friends Out,