1 00:00:00,080 --> 00:00:02,920 Speaker 1: Welcome to How to Money. I'm Joel and I'm Matt, 2 00:00:03,160 --> 00:00:05,720 Speaker 1: and today we're talking about how to think about investing 3 00:00:06,000 --> 00:00:27,200 Speaker 1: with money pro Paula pant All right, hey, by the way, 4 00:00:27,240 --> 00:00:29,400 Speaker 1: tell me how your home renovation is going, because we 5 00:00:29,440 --> 00:00:33,600 Speaker 1: are still progress. We're still recording in your dining room 6 00:00:33,640 --> 00:00:36,239 Speaker 1: slash kitchen, which is kind of fun because it's easy 7 00:00:36,280 --> 00:00:37,600 Speaker 1: to get the beer out of the fridge, But this 8 00:00:37,680 --> 00:00:39,040 Speaker 1: is very true. How are things going in the back? 9 00:00:39,240 --> 00:00:40,879 Speaker 1: First of all, do you notice that we're accumulating more 10 00:00:40,880 --> 00:00:44,559 Speaker 1: and more stuff? Like we started off pretty clean, but 11 00:00:44,760 --> 00:00:47,159 Speaker 1: now as Kate continues to cook and as we continue 12 00:00:47,200 --> 00:00:50,320 Speaker 1: to live in the space as our dining room and kitchen, Yeah, 13 00:00:50,600 --> 00:00:52,559 Speaker 1: there's more stacked up on top of the fridge. Over 14 00:00:52,560 --> 00:00:55,080 Speaker 1: there in the corner behind me, there's more things up 15 00:00:55,120 --> 00:00:57,360 Speaker 1: on the mantel, all the spices. I was gonna say, yeah, 16 00:00:57,360 --> 00:01:01,000 Speaker 1: your spice selection is robust. Do I'll tell you what. 17 00:01:01,200 --> 00:01:02,840 Speaker 1: I think We're gonna do a whole episode at some 18 00:01:02,880 --> 00:01:06,360 Speaker 1: point regarding home renovations, right, but for now, I'm just 19 00:01:06,400 --> 00:01:09,080 Speaker 1: gonna say that it is stressful because it just takes 20 00:01:09,080 --> 00:01:13,640 Speaker 1: so much mental space. I'm just constantly making decisions and 21 00:01:14,120 --> 00:01:15,959 Speaker 1: when you're having to think about stuff. It just feels 22 00:01:16,000 --> 00:01:18,600 Speaker 1: like it robs you of your time. And you know, 23 00:01:18,640 --> 00:01:20,800 Speaker 1: with three kids and just other stuff that we have 24 00:01:20,920 --> 00:01:23,319 Speaker 1: going on, it's a lot of work. But really, man, 25 00:01:23,440 --> 00:01:25,080 Speaker 1: is just taking a bit more time than we expected. 26 00:01:25,120 --> 00:01:28,360 Speaker 1: That's that's really it. I really shouldn't wine. That's what 27 00:01:28,440 --> 00:01:30,840 Speaker 1: That's what they say right about home renovations is that 28 00:01:30,920 --> 00:01:32,560 Speaker 1: it's always takes more time. Do you think it is? 29 00:01:32,680 --> 00:01:34,759 Speaker 1: So the general contractor said this is gonna be four months, 30 00:01:34,800 --> 00:01:37,720 Speaker 1: Well you can guarantee five, six or seven, right, something 31 00:01:37,760 --> 00:01:40,399 Speaker 1: like that, and then usually it costs more money too. 32 00:01:40,520 --> 00:01:43,840 Speaker 1: But yeah, I will say, before you did this home renovation, 33 00:01:43,920 --> 00:01:46,920 Speaker 1: I always said that we would never do a homework 34 00:01:46,920 --> 00:01:49,320 Speaker 1: like a thorough home renovation like this, just because of 35 00:01:49,360 --> 00:01:52,680 Speaker 1: the pain i'd see. I'd seen other people indoor going 36 00:01:52,680 --> 00:01:55,360 Speaker 1: through like a big, big addition or something like that, 37 00:01:55,520 --> 00:01:58,120 Speaker 1: and I'm sticking to my guns. After seeing how things 38 00:01:58,120 --> 00:01:59,880 Speaker 1: have gone, don't be don't be scared of it. But 39 00:02:00,320 --> 00:02:02,240 Speaker 1: before you do, I'll give you some serious tips. Hey, 40 00:02:02,240 --> 00:02:04,800 Speaker 1: and we'll share that with your listeners here sometimes soon. 41 00:02:04,960 --> 00:02:07,400 Speaker 1: Oh and also one thing that's really nice for you 42 00:02:07,440 --> 00:02:09,600 Speaker 1: though about doing this home innovation is that you work 43 00:02:09,639 --> 00:02:13,520 Speaker 1: from home. I can't I can't imagine being someone who 44 00:02:13,520 --> 00:02:15,560 Speaker 1: works in an office away from your home because there's 45 00:02:15,600 --> 00:02:18,000 Speaker 1: all these little decisions that you have to make, and 46 00:02:18,320 --> 00:02:20,919 Speaker 1: a quick five minute chat with a contractor can save 47 00:02:21,360 --> 00:02:23,840 Speaker 1: hours of potentially going back and having to redo something. 48 00:02:24,440 --> 00:02:26,000 Speaker 1: And so it's just really nice to you work from 49 00:02:26,000 --> 00:02:27,600 Speaker 1: home and you have that ability, because if if that 50 00:02:27,639 --> 00:02:29,920 Speaker 1: weren't the case, I just see it going awry. And 51 00:02:30,040 --> 00:02:31,959 Speaker 1: even more ways, yes, it's nice and it's it's a 52 00:02:32,000 --> 00:02:35,680 Speaker 1: blessing and a curse because yeah, like you said, that, 53 00:02:35,760 --> 00:02:38,639 Speaker 1: one five minute conversation ends up turning into thirty because 54 00:02:38,680 --> 00:02:40,760 Speaker 1: then you're looking at this and you're talking about this detail. 55 00:02:41,200 --> 00:02:44,600 Speaker 1: But yeah, Joel astute observation. Oh and one more thing, dude, 56 00:02:44,639 --> 00:02:48,160 Speaker 1: I wanted to thank you for the girl shoes, the boots. 57 00:02:48,320 --> 00:02:50,800 Speaker 1: Your wife brought over a bag full of clothes, and 58 00:02:50,840 --> 00:02:53,639 Speaker 1: our girls. Just like anything that comes from y'all's place, 59 00:02:53,720 --> 00:02:55,760 Speaker 1: it's like an Amazon delivery for adults. Basically, they get 60 00:02:55,800 --> 00:02:58,480 Speaker 1: all excited and they're like, oh, what's this. They immediately 61 00:02:58,480 --> 00:03:00,360 Speaker 1: put the things on and are walking around in the house. 62 00:03:00,720 --> 00:03:02,760 Speaker 1: I think it's so awesome that you know, being able 63 00:03:02,760 --> 00:03:05,040 Speaker 1: to regift clothes for our girls. And actually, speaking of 64 00:03:05,040 --> 00:03:07,320 Speaker 1: that clothes that we didn't give you, guys, we took 65 00:03:07,400 --> 00:03:10,839 Speaker 1: to a consignment store recently and we made more money 66 00:03:10,960 --> 00:03:12,200 Speaker 1: than we thought we were gonna make. We made like 67 00:03:12,200 --> 00:03:14,960 Speaker 1: fifty three bucks on one little basket of clothes. Nice dude, 68 00:03:15,040 --> 00:03:17,160 Speaker 1: So that was pretty sweet. Wants to talk more about that. 69 00:03:17,200 --> 00:03:19,440 Speaker 1: I've never done consignment before. Consignment, I mean that's where 70 00:03:19,480 --> 00:03:20,600 Speaker 1: you take it to the shop and you sell it, 71 00:03:20,720 --> 00:03:22,440 Speaker 1: or basically if it sits there and it sells, you 72 00:03:22,440 --> 00:03:24,120 Speaker 1: get a percentage of that. It's similar to something like 73 00:03:24,160 --> 00:03:28,240 Speaker 1: Buffalo Exchange for for close for adults, or Plato's Closet 74 00:03:28,360 --> 00:03:30,560 Speaker 1: or something like that where you can man, I did 75 00:03:30,560 --> 00:03:33,000 Speaker 1: play this closet back in the day in college. Yeah, 76 00:03:33,200 --> 00:03:35,320 Speaker 1: who didn't write you get like some sweet jeans for 77 00:03:35,360 --> 00:03:38,240 Speaker 1: like eight dollars or whatever that in the thrift store. Yeah, exactly. So. 78 00:03:38,320 --> 00:03:40,520 Speaker 1: But if you're taking stuff into sell, like I've definitely 79 00:03:40,560 --> 00:03:43,080 Speaker 1: done the Buffalo Exchange selling my clothes thing, but this 80 00:03:43,160 --> 00:03:45,400 Speaker 1: is the first time i'd sold our kids clothes and 81 00:03:45,440 --> 00:03:47,200 Speaker 1: we just be kind of holding on to some stuff, 82 00:03:47,360 --> 00:03:49,960 Speaker 1: just not sure, Hey, are we gonna maybe another baby? 83 00:03:49,960 --> 00:03:52,480 Speaker 1: Comes along. Who knows, the stork brings some something by 84 00:03:52,680 --> 00:03:55,280 Speaker 1: one day. That's how it works, right, Yeah, the stork. Yeah, 85 00:03:55,320 --> 00:03:57,600 Speaker 1: that's pretty awesome, fifty something bucks man, that's good. What 86 00:03:57,640 --> 00:03:59,000 Speaker 1: I want to know though, is why you holding out? 87 00:03:59,160 --> 00:04:00,800 Speaker 1: How come you're not bringing the goods over to our 88 00:04:00,840 --> 00:04:05,520 Speaker 1: house and instead you're giving all the jankie shoes and slippers. No, 89 00:04:05,680 --> 00:04:07,720 Speaker 1: this was the stuff that was too too small for 90 00:04:07,760 --> 00:04:10,880 Speaker 1: your girls, so for sure, because Dotty's only two, but 91 00:04:11,080 --> 00:04:13,680 Speaker 1: she looks like she's four, so she's like the size 92 00:04:13,680 --> 00:04:15,760 Speaker 1: about four year old. So I would recommend to anyone, 93 00:04:15,800 --> 00:04:18,160 Speaker 1: whether it's just your clothes as an adult, or whether 94 00:04:18,200 --> 00:04:20,719 Speaker 1: it's kids clothes sitting around maybe they're in your attic 95 00:04:20,880 --> 00:04:22,520 Speaker 1: or in the back of a closet or something like that. 96 00:04:22,760 --> 00:04:25,039 Speaker 1: You just want to think some stuff out, consider selling 97 00:04:25,080 --> 00:04:27,520 Speaker 1: online in your local Facebook yard sale group, or take 98 00:04:27,560 --> 00:04:30,719 Speaker 1: it to a consignment store or Plato's Closet or Buffalo Exchange. 99 00:04:30,760 --> 00:04:34,159 Speaker 1: Those are great places to sell your clothing secondhand. All right, Matt, 100 00:04:34,160 --> 00:04:36,400 Speaker 1: And I'm super excited about the beer that we're drinking 101 00:04:36,440 --> 00:04:40,800 Speaker 1: today because I never get tired of drinking Southern swells. Yeah. Man, 102 00:04:40,800 --> 00:04:44,040 Speaker 1: it's such an amazing beer, specifically all their I p as. 103 00:04:44,200 --> 00:04:45,920 Speaker 1: They make a ton of amazing I p A s 104 00:04:46,080 --> 00:04:47,640 Speaker 1: pump to have another one of these on the show, 105 00:04:48,040 --> 00:04:50,719 Speaker 1: because I'm always in the mood for a delicious I 106 00:04:50,800 --> 00:04:52,120 Speaker 1: p A. And that's what they do, man. And I 107 00:04:52,120 --> 00:04:54,800 Speaker 1: gotta say, when we cracked the top and I poured 108 00:04:54,839 --> 00:04:58,320 Speaker 1: it out, I just couldn't stop smelling it. It was 109 00:04:58,440 --> 00:05:00,720 Speaker 1: so beautiful, so freaking good, dude. And I will say 110 00:05:00,760 --> 00:05:04,039 Speaker 1: this is called freshly picked citra. And every time I 111 00:05:04,040 --> 00:05:06,080 Speaker 1: glanced down and look at this can, the cane is 112 00:05:06,240 --> 00:05:09,680 Speaker 1: very green, and I keep thinking it says pickled freshly 113 00:05:09,680 --> 00:05:12,440 Speaker 1: pickled citra. It does look like this, yeah, which I 114 00:05:12,480 --> 00:05:14,240 Speaker 1: think is kind of awesome because I love pickles. But 115 00:05:14,680 --> 00:05:16,520 Speaker 1: have you ever had a pickle? I p A. No, 116 00:05:16,640 --> 00:05:20,360 Speaker 1: it's so terrible what you do like pickles? Uh? Yeah, 117 00:05:20,400 --> 00:05:22,520 Speaker 1: I like pickles, but I'm not like you love with pickles. 118 00:05:22,560 --> 00:05:25,440 Speaker 1: But a pickled I pass. It might be weird. Anyway, 119 00:05:25,720 --> 00:05:27,720 Speaker 1: it sounds appealing to me. All Right, this is not 120 00:05:27,880 --> 00:05:29,400 Speaker 1: a pickled I p A. Let me go ahead and 121 00:05:29,400 --> 00:05:31,520 Speaker 1: state that for the record, this is just a standard 122 00:05:31,560 --> 00:05:34,080 Speaker 1: hazy I p A. Alright, let's take a sip of 123 00:05:34,120 --> 00:05:37,440 Speaker 1: this and give everyone our first impressions. Yeah, man, cheers. 124 00:05:37,760 --> 00:05:39,520 Speaker 1: All right, Matt. If I could describe this beer in 125 00:05:39,520 --> 00:05:44,240 Speaker 1: one word, dude, that is so good, it would be crushable. Mmm. 126 00:05:44,360 --> 00:05:46,240 Speaker 1: I like that word, dude. But okay, now, the one 127 00:05:46,240 --> 00:05:49,400 Speaker 1: word I will use is pillow e actually done. I 128 00:05:49,520 --> 00:05:51,360 Speaker 1: like you like that. You see where I'm going with that. 129 00:05:51,400 --> 00:05:53,560 Speaker 1: I think those are two good words, man. So we'll 130 00:05:53,600 --> 00:05:55,760 Speaker 1: explain the meeting behind those words what we thought about 131 00:05:55,760 --> 00:05:58,080 Speaker 1: this beer at the end of the podcast, like we 132 00:05:58,120 --> 00:06:01,080 Speaker 1: always do. Yep. So, Matt, this is our second episode 133 00:06:01,120 --> 00:06:03,440 Speaker 1: in our Money Pro series, and I'm super excited about this. 134 00:06:03,480 --> 00:06:05,760 Speaker 1: It's really fun to kind of bring somebody else on 135 00:06:05,800 --> 00:06:08,440 Speaker 1: the show, an expert, somebody that knows a heck of 136 00:06:08,480 --> 00:06:11,279 Speaker 1: a lot about one specific topic. Dude. I love this. 137 00:06:11,440 --> 00:06:13,520 Speaker 1: It feels like you're hosting somebody, right, It's like when 138 00:06:13,520 --> 00:06:15,640 Speaker 1: you have company, and it just kind of feels a 139 00:06:15,640 --> 00:06:17,880 Speaker 1: little more fun. So I'm for it. Let's keep doing it. 140 00:06:17,920 --> 00:06:20,400 Speaker 1: We had a blast last week with our friend Scott. 141 00:06:20,480 --> 00:06:21,960 Speaker 1: He talked about something that was near and dear to 142 00:06:22,000 --> 00:06:24,760 Speaker 1: his heart. But today we're bringing on our good friend 143 00:06:24,800 --> 00:06:28,839 Speaker 1: Paula Pant and she is truly like a money genius 144 00:06:28,880 --> 00:06:30,680 Speaker 1: and uh and she's been a good friend of mine 145 00:06:30,680 --> 00:06:33,159 Speaker 1: now for a lot of years. She's a superstar. And 146 00:06:33,279 --> 00:06:36,679 Speaker 1: she's had her own podcast now for three years, afford Anything. 147 00:06:37,200 --> 00:06:39,600 Speaker 1: And even before she started that podcast, she had her 148 00:06:39,640 --> 00:06:41,920 Speaker 1: own site, dude, and right at this point now it's 149 00:06:41,920 --> 00:06:44,240 Speaker 1: been about eight years, which is I mean, that's a 150 00:06:44,240 --> 00:06:46,600 Speaker 1: long time when it comes to just the new sort 151 00:06:46,600 --> 00:06:49,919 Speaker 1: of personal finance world. Um and her sites called the 152 00:06:49,920 --> 00:06:53,800 Speaker 1: same thing as well, afford anything dot com specifically check outs, 153 00:06:54,120 --> 00:06:57,600 Speaker 1: afford anything dot com, Forward, Slash Escape, and she's got 154 00:06:57,600 --> 00:06:59,840 Speaker 1: an awesome sort of free e book right there for you. 155 00:07:00,240 --> 00:07:02,960 Speaker 1: Or she talks about her her journey, but her story. 156 00:07:02,960 --> 00:07:04,880 Speaker 1: I love it, dude. She she got an awesome job 157 00:07:05,000 --> 00:07:07,480 Speaker 1: straight out of school as a reporter on Colorado, but 158 00:07:07,680 --> 00:07:10,360 Speaker 1: soon after that she got sick of just doing that. 159 00:07:10,440 --> 00:07:12,440 Speaker 1: She wanted more freedom and turned to real estate to 160 00:07:12,560 --> 00:07:16,240 Speaker 1: chief financial independence. She's been featured on Forbes, the Washington Post, 161 00:07:16,360 --> 00:07:19,640 Speaker 1: Fortune Time, Magazine, kind of all over the place. And 162 00:07:19,680 --> 00:07:22,480 Speaker 1: her recent claim to fame was a podcast episode she 163 00:07:22,560 --> 00:07:25,880 Speaker 1: had Susie Orman on the show. So renowned personal finance 164 00:07:26,000 --> 00:07:29,120 Speaker 1: guru right, like, this lady has been around forever. Yes, Susie. 165 00:07:29,120 --> 00:07:32,200 Speaker 1: She's one of the old school personal finance quote unquote experts, right, 166 00:07:32,360 --> 00:07:35,680 Speaker 1: But we're featuring Paula because we like Cola's philosophy a 167 00:07:35,680 --> 00:07:37,480 Speaker 1: lot more. It's near due to our hearts. But she 168 00:07:37,560 --> 00:07:41,200 Speaker 1: had this run in with Susie Norman where Susie had 169 00:07:41,280 --> 00:07:43,640 Speaker 1: some kind of crazy things to say about how much 170 00:07:43,640 --> 00:07:46,120 Speaker 1: money you needed to actually retire, and just it felt 171 00:07:46,200 --> 00:07:49,120 Speaker 1: incredibly out of touch with what you and me, or 172 00:07:49,360 --> 00:07:51,880 Speaker 1: any normal human being living in the United States of 173 00:07:51,880 --> 00:07:55,000 Speaker 1: America could actually achieve. And and so Apollo did a 174 00:07:55,000 --> 00:07:56,760 Speaker 1: really great job handling that one. We'll put a link 175 00:07:56,800 --> 00:07:58,520 Speaker 1: to that episode in the show. Actually, I was gonna 176 00:07:58,520 --> 00:07:59,840 Speaker 1: say we should put that up as well, because this 177 00:08:00,000 --> 00:08:01,560 Speaker 1: one of her best. She did such a good job 178 00:08:01,600 --> 00:08:04,080 Speaker 1: in that interview. But Paula does an amazing interview. And 179 00:08:04,120 --> 00:08:05,960 Speaker 1: I will say she is one of the first people 180 00:08:06,000 --> 00:08:08,720 Speaker 1: I reached out to when I started my own thing 181 00:08:08,760 --> 00:08:11,240 Speaker 1: on the side. I started a blog years and years 182 00:08:11,240 --> 00:08:14,480 Speaker 1: and years ago, and Paula lived in Atlanta, just a 183 00:08:14,480 --> 00:08:16,840 Speaker 1: few miles from where we live, Matt. She lives in 184 00:08:16,920 --> 00:08:19,120 Speaker 1: Vegas now, but so I reached out to her and 185 00:08:19,160 --> 00:08:21,280 Speaker 1: she was kind enough to meet me at a Starbucks. 186 00:08:21,480 --> 00:08:23,640 Speaker 1: She gave me a lot of information, some of the 187 00:08:23,640 --> 00:08:25,480 Speaker 1: beats that she had had, some of the successes that 188 00:08:25,520 --> 00:08:27,480 Speaker 1: she had had, and it just like really helped me 189 00:08:27,720 --> 00:08:30,000 Speaker 1: when I was getting started in the blogging game. It 190 00:08:30,080 --> 00:08:31,640 Speaker 1: just really helped me when I was creating my own 191 00:08:31,680 --> 00:08:34,319 Speaker 1: site starting out. And so yeah, I'm just grateful to 192 00:08:34,360 --> 00:08:35,959 Speaker 1: her for that, And I'm always happy to listen to 193 00:08:36,000 --> 00:08:39,840 Speaker 1: her show. The wisdom, the insight, the interviews, there's there's 194 00:08:39,880 --> 00:08:42,640 Speaker 1: just so much there. And Paula also is kind of 195 00:08:42,679 --> 00:08:45,080 Speaker 1: a real estate expert really, so I love talking to 196 00:08:45,120 --> 00:08:47,120 Speaker 1: her about real estate because it's something that we care 197 00:08:47,160 --> 00:08:50,359 Speaker 1: about so much. So really, her philosophy mirrors our philosophies 198 00:08:50,400 --> 00:08:53,080 Speaker 1: in so many ways. Yeah, man, at this point, she's 199 00:08:53,120 --> 00:08:55,080 Speaker 1: just sort of a like an old pro when it 200 00:08:55,120 --> 00:08:58,320 Speaker 1: comes to the financial media landscape, and she's just been 201 00:08:58,360 --> 00:09:00,120 Speaker 1: around for a while and she has just, yeah, like 202 00:09:00,160 --> 00:09:02,160 Speaker 1: you said, has a lot of experience. I got to 203 00:09:02,160 --> 00:09:04,679 Speaker 1: meet her for the first time this last year at Finncon, 204 00:09:05,160 --> 00:09:07,200 Speaker 1: which is a nerdy financial media conference that we go 205 00:09:07,280 --> 00:09:10,120 Speaker 1: to every year that's super nerdy and actually a funny story, 206 00:09:10,559 --> 00:09:12,800 Speaker 1: a friend of ours we met at fin Con had 207 00:09:12,800 --> 00:09:15,440 Speaker 1: been meeting all the bloggers, all the podcast guys, all 208 00:09:15,440 --> 00:09:17,559 Speaker 1: the guys that are on the news, on TV, stuff 209 00:09:17,600 --> 00:09:20,920 Speaker 1: like that, loving it right, enjoying himself, keeping it cool. 210 00:09:21,320 --> 00:09:23,800 Speaker 1: And he said that when he met her that he 211 00:09:23,840 --> 00:09:25,760 Speaker 1: totally froze and couldn't say anything. He just kind of 212 00:09:25,760 --> 00:09:27,720 Speaker 1: clammed up. And this is before I met her, So 213 00:09:27,760 --> 00:09:29,960 Speaker 1: I thought, dangn this girl must be like big time, 214 00:09:30,040 --> 00:09:31,920 Speaker 1: you know, like if if you can talk to Mr 215 00:09:31,960 --> 00:09:34,440 Speaker 1: Money Mustache and everybody else that's just hanging out. But 216 00:09:34,520 --> 00:09:37,760 Speaker 1: then he sees this Paula Paint girl and and freezes up. 217 00:09:37,800 --> 00:09:39,760 Speaker 1: It kind of set a high bar. But that being 218 00:09:39,760 --> 00:09:42,160 Speaker 1: said that, when I met her, she's super cool, very personal, 219 00:09:42,280 --> 00:09:44,920 Speaker 1: very friendly. In my opinion, Paula does such an amazing 220 00:09:45,000 --> 00:09:47,800 Speaker 1: job not just talking about finances but really thinking through 221 00:09:48,040 --> 00:09:51,800 Speaker 1: what matters in life and orienting her life accordingly. And Matt, 222 00:09:51,840 --> 00:09:53,760 Speaker 1: that's something that we talk about a lot on the show, 223 00:09:53,960 --> 00:09:56,920 Speaker 1: is getting your finances in order. Obviously it's super important, 224 00:09:56,920 --> 00:09:59,280 Speaker 1: it's something we care about a lot, but really, so 225 00:09:59,360 --> 00:10:01,839 Speaker 1: much of getting your finances in order is taking into 226 00:10:01,880 --> 00:10:04,080 Speaker 1: account what your goals are, what matters to you, and 227 00:10:04,160 --> 00:10:06,840 Speaker 1: thinking through what you want your life to look like 228 00:10:06,960 --> 00:10:09,160 Speaker 1: and paul has done such an amazing job of that, 229 00:10:09,720 --> 00:10:11,920 Speaker 1: and I applaud her for that, and I'm thankful for 230 00:10:12,000 --> 00:10:13,720 Speaker 1: kind of her example and how she lives that out. 231 00:10:14,040 --> 00:10:16,240 Speaker 1: And because she has done such a great job with 232 00:10:16,320 --> 00:10:19,040 Speaker 1: investing in real estate, we gave her free reign to 233 00:10:19,240 --> 00:10:21,760 Speaker 1: pick pretty much any topic that she wanted to discuss, 234 00:10:21,960 --> 00:10:24,960 Speaker 1: and she did not disappoint man. So for today's Money 235 00:10:24,960 --> 00:10:27,760 Speaker 1: Pro episode, Paula is going to reframe what it means 236 00:10:27,760 --> 00:10:31,120 Speaker 1: to be an investor. Just because you've invested some does 237 00:10:31,160 --> 00:10:34,280 Speaker 1: that make you an actual investor? And what role should 238 00:10:34,320 --> 00:10:36,960 Speaker 1: your emotion display when it comes to investing. So let's 239 00:10:37,000 --> 00:10:39,439 Speaker 1: hear her five minutes of wisdom and then Joel and 240 00:10:39,480 --> 00:10:41,480 Speaker 1: I will break it down all right after the break, 241 00:10:50,760 --> 00:10:53,800 Speaker 1: all right, Matt go back, and without any further ado, 242 00:10:53,880 --> 00:10:55,839 Speaker 1: let's get to Paula. Hey, guys, today, I want to 243 00:10:55,880 --> 00:10:57,800 Speaker 1: talk about thinking about how to think. What are some 244 00:10:57,840 --> 00:11:00,480 Speaker 1: ways in which you can think about money in a 245 00:11:00,559 --> 00:11:03,080 Speaker 1: way that is different from how average people do. So 246 00:11:03,160 --> 00:11:05,880 Speaker 1: let's get started. Number one is to recognize the difference 247 00:11:05,920 --> 00:11:10,080 Speaker 1: between investing versus being an investor. Anybody can buy a 248 00:11:10,120 --> 00:11:13,520 Speaker 1: few shares of Coca Cola stock or Nike stock, That 249 00:11:13,600 --> 00:11:17,280 Speaker 1: doesn't mean that they are an investor. Having investments doesn't 250 00:11:17,280 --> 00:11:20,880 Speaker 1: make you an investor. Being an investor means that you 251 00:11:21,000 --> 00:11:26,600 Speaker 1: have thoughtfully analyzed a particular purchase based on certain metrics, 252 00:11:27,559 --> 00:11:29,400 Speaker 1: and it's up to you to decide which metrics are 253 00:11:29,440 --> 00:11:31,520 Speaker 1: more important. So, for example, in the world of stocks, 254 00:11:31,840 --> 00:11:34,000 Speaker 1: maybe pe ratio is important to you. In the world 255 00:11:34,000 --> 00:11:36,880 Speaker 1: of rental property investing, maybe it's cap right. Maybe you 256 00:11:36,960 --> 00:11:40,200 Speaker 1: intentionally decided not to focus on cash on cash return. 257 00:11:40,640 --> 00:11:43,000 Speaker 1: There are a lot of different metrics that any type 258 00:11:43,000 --> 00:11:45,560 Speaker 1: of investor can use, and as an investor, one of 259 00:11:45,559 --> 00:11:48,280 Speaker 1: your primary jobs is to wade through those metrics and 260 00:11:48,360 --> 00:11:50,679 Speaker 1: determine what is the signal and what is a nois. 261 00:11:51,679 --> 00:11:53,680 Speaker 1: But the big takeaway from this point is that I 262 00:11:53,720 --> 00:11:57,000 Speaker 1: don't want people to conflate owning investments with being an investor. 263 00:11:57,080 --> 00:11:58,320 Speaker 1: And you hear this a lot in the world of 264 00:11:58,320 --> 00:12:00,800 Speaker 1: real estate, where people say so and so owns a 265 00:12:00,840 --> 00:12:04,480 Speaker 1: rental property and their rental property didn't do very well, 266 00:12:04,520 --> 00:12:06,920 Speaker 1: and so now I'm never going to touch rentals ever ever. Ever. 267 00:12:07,320 --> 00:12:11,120 Speaker 1: Um the end, the thing is just because you happen 268 00:12:11,600 --> 00:12:13,680 Speaker 1: to have purchased a house and put some tenants in 269 00:12:13,679 --> 00:12:16,839 Speaker 1: It does not make you a rental property investor if 270 00:12:16,880 --> 00:12:20,000 Speaker 1: you can't name the cap right on that property. If 271 00:12:20,040 --> 00:12:22,560 Speaker 1: you don't have an investor policy statement or a guiding 272 00:12:22,600 --> 00:12:26,400 Speaker 1: statement outlining your strategy and your approach and your philosophy, 273 00:12:26,480 --> 00:12:29,360 Speaker 1: then you're not an investor. You're just someone who bought 274 00:12:29,360 --> 00:12:32,280 Speaker 1: some property. So that is the first point with regard 275 00:12:32,320 --> 00:12:34,320 Speaker 1: to thinking about how to think. There's that difference between 276 00:12:34,320 --> 00:12:38,200 Speaker 1: investing versus being an investor, and when you're talking to 277 00:12:38,280 --> 00:12:40,680 Speaker 1: somebody else or listening to somebody else who's giving you 278 00:12:40,760 --> 00:12:44,080 Speaker 1: tips about money, uh, pay attention to which of those 279 00:12:44,080 --> 00:12:47,000 Speaker 1: two categories that person falls into, because so much of 280 00:12:47,040 --> 00:12:54,000 Speaker 1: this revolves around taking opinions from well qualified people. And 281 00:12:54,080 --> 00:12:56,320 Speaker 1: that really leads to the next point, which is be 282 00:12:56,360 --> 00:13:00,160 Speaker 1: aware of resulting. Now what is that? So let's just hm, 283 00:13:00,200 --> 00:13:02,640 Speaker 1: hypothetically that you're at work and you have some water 284 00:13:02,640 --> 00:13:06,360 Speaker 1: cooler chit chat and somebody says, oh, you know, X 285 00:13:06,480 --> 00:13:08,719 Speaker 1: y Z stock is going to do really well. Now 286 00:13:08,760 --> 00:13:11,640 Speaker 1: you don't know anything about that stock, but on a hunch, 287 00:13:11,720 --> 00:13:13,480 Speaker 1: just because you heard about it at the water cooler, 288 00:13:13,520 --> 00:13:15,760 Speaker 1: you go home and you buy it. And a month 289 00:13:15,840 --> 00:13:18,719 Speaker 1: later you check your portfolio and that thing went up 290 00:13:18,800 --> 00:13:22,680 Speaker 1: ten times in value, and you have ten x your money, 291 00:13:22,760 --> 00:13:25,960 Speaker 1: and so you sell and you live happily ever after. Right, So, 292 00:13:26,240 --> 00:13:30,360 Speaker 1: in that particular case, the result happens to be positive, 293 00:13:30,640 --> 00:13:33,160 Speaker 1: but the decision making framework that led to the result 294 00:13:33,640 --> 00:13:38,120 Speaker 1: was highly flawed. Unfortunately, a lot of people judge outcomes 295 00:13:38,120 --> 00:13:41,760 Speaker 1: based on the outcome. They judge things based on the 296 00:13:41,800 --> 00:13:44,760 Speaker 1: outcome or the result, and not based on the decision 297 00:13:44,760 --> 00:13:47,520 Speaker 1: making process that was used to arrive there. That is 298 00:13:47,559 --> 00:13:51,760 Speaker 1: something that's referred to as resulting. Beware of the natural 299 00:13:51,840 --> 00:13:55,119 Speaker 1: human tendency to do this when you are evaluating investments, 300 00:13:55,320 --> 00:13:58,360 Speaker 1: investment opportunities, or whether the person that you're talking to 301 00:13:59,120 --> 00:14:03,760 Speaker 1: is an analytical, thoughtful investor with a philosophy and an approach, 302 00:14:04,360 --> 00:14:07,520 Speaker 1: or just somebody who was on the positive end of 303 00:14:07,520 --> 00:14:10,559 Speaker 1: resulting a couple of times. Speaking of being on the 304 00:14:10,559 --> 00:14:13,080 Speaker 1: positive end, that leads to my final point, which is 305 00:14:13,520 --> 00:14:18,320 Speaker 1: sequence of returns risk with regard to investing. Now, most 306 00:14:18,320 --> 00:14:20,680 Speaker 1: people when they talk about sequence of returns risk, they're 307 00:14:20,720 --> 00:14:23,640 Speaker 1: often talking about what happens after a person retires. So 308 00:14:23,760 --> 00:14:26,760 Speaker 1: you retire, and the year after you retire, the market tanks, 309 00:14:26,840 --> 00:14:29,000 Speaker 1: and now you have to convert paper losses into real 310 00:14:29,040 --> 00:14:31,800 Speaker 1: losses because you've just retired and you are relying on 311 00:14:31,840 --> 00:14:34,440 Speaker 1: your portfolio as a stream of income. That's the context 312 00:14:34,440 --> 00:14:37,080 Speaker 1: in which we often hear people talk about sequence of returns. 313 00:14:37,080 --> 00:14:42,880 Speaker 1: But the same framework can be applied to your experience 314 00:14:43,040 --> 00:14:45,240 Speaker 1: of a new investment at a conceptual level. And so 315 00:14:45,280 --> 00:14:47,000 Speaker 1: here's what I mean by that. Let's say that you 316 00:14:47,000 --> 00:14:51,080 Speaker 1: buy a rental property, and your thought process, your decision 317 00:14:51,120 --> 00:14:54,120 Speaker 1: making process with regard to buying that property was sound. 318 00:14:54,840 --> 00:14:57,400 Speaker 1: You did your due diligence, you picked the metrics that 319 00:14:57,440 --> 00:14:59,640 Speaker 1: were important to you based on your own philosophy and 320 00:14:59,680 --> 00:15:03,520 Speaker 1: a pro and you bought a suitable property. But it 321 00:15:03,640 --> 00:15:06,360 Speaker 1: just so happens that in that first year it doesn't 322 00:15:06,400 --> 00:15:08,880 Speaker 1: do very well. Maybe there's a prolonged vacancy, or maybe 323 00:15:08,880 --> 00:15:11,360 Speaker 1: you have a bad tenant. And let's say that your 324 00:15:11,360 --> 00:15:14,440 Speaker 1: string of baddle luck stretches to year two. At this point, 325 00:15:14,520 --> 00:15:17,880 Speaker 1: your sequence of returns your first two years were very negative, 326 00:15:17,920 --> 00:15:20,880 Speaker 1: and you might be so soured by that that it 327 00:15:21,120 --> 00:15:25,480 Speaker 1: scares you off of investing, particularly investing in real estate. 328 00:15:25,600 --> 00:15:30,000 Speaker 1: Right in that regard, In that context, what you are 329 00:15:30,040 --> 00:15:36,600 Speaker 1: experiencing is variants. You are experiencing volatility. But because the 330 00:15:36,680 --> 00:15:40,080 Speaker 1: time frame is so narrow and yet it feels so long, 331 00:15:40,200 --> 00:15:42,440 Speaker 1: one to two years feels like a long time, you 332 00:15:42,560 --> 00:15:47,440 Speaker 1: draw outsized conclusions based on that volatility. So those are 333 00:15:47,920 --> 00:15:51,080 Speaker 1: my three points with regard to thinking about how to 334 00:15:51,160 --> 00:15:54,640 Speaker 1: think about investments. Number one, know the difference between investing 335 00:15:54,720 --> 00:15:57,560 Speaker 1: versus being an investor. Number two, be aware of resulting, 336 00:15:57,600 --> 00:16:02,000 Speaker 1: and number three, be aware of sequence of a turn risk. Wow, Matt, 337 00:16:02,080 --> 00:16:04,000 Speaker 1: that was a power pack five minutes. How are we 338 00:16:04,040 --> 00:16:07,080 Speaker 1: going to unpack that stuff one bite at a time? Man? 339 00:16:07,200 --> 00:16:10,239 Speaker 1: That was Yeah, that's totally awesome. She did not disappoint. 340 00:16:10,360 --> 00:16:12,240 Speaker 1: We hope your listeners caught all that, but if you didn't, 341 00:16:12,240 --> 00:16:14,600 Speaker 1: we're gonna unpack it right now. All right. So the 342 00:16:14,640 --> 00:16:16,680 Speaker 1: first thing that Paula mentioned she had three points was 343 00:16:17,280 --> 00:16:20,520 Speaker 1: the difference between investing and being an actual investor. I 344 00:16:20,520 --> 00:16:22,560 Speaker 1: think that's a thoughtful point because I think there are 345 00:16:22,600 --> 00:16:25,080 Speaker 1: a lot of people out there who have made a 346 00:16:25,120 --> 00:16:27,760 Speaker 1: foray into investing, and like she said, someone that bought 347 00:16:27,760 --> 00:16:30,440 Speaker 1: a house and had tenants in it, but didn't really 348 00:16:30,440 --> 00:16:33,920 Speaker 1: have an underlying philosophy of how they wanted to approach 349 00:16:33,920 --> 00:16:36,480 Speaker 1: owning real estate. And there are people out there listening 350 00:16:36,560 --> 00:16:38,920 Speaker 1: who are sticking money away in an I RA every 351 00:16:38,920 --> 00:16:41,560 Speaker 1: month or in in a four oh one K, but 352 00:16:41,600 --> 00:16:44,280 Speaker 1: they don't really have much of a philosophy surrounding what 353 00:16:44,320 --> 00:16:46,040 Speaker 1: they're doing, and they just don't know why they're doing it, 354 00:16:46,080 --> 00:16:48,480 Speaker 1: you know. And I think Paula makes a good point 355 00:16:48,600 --> 00:16:51,240 Speaker 1: that knowing why we're doing something can actually help us 356 00:16:51,240 --> 00:16:54,280 Speaker 1: to achieve goals that we wouldn't have otherwise achieved. So 357 00:16:54,320 --> 00:16:56,880 Speaker 1: knowing kind of the why you're doing it, why you're investing, 358 00:16:57,040 --> 00:16:59,640 Speaker 1: as opposed to just kind of blindly dolling it out, 359 00:17:00,440 --> 00:17:03,440 Speaker 1: makes you a better investor in the long run. What 360 00:17:03,520 --> 00:17:05,160 Speaker 1: stood out to me is that she was talking about 361 00:17:05,200 --> 00:17:07,840 Speaker 1: the different metrics, figuring out what it is that's important 362 00:17:07,840 --> 00:17:10,919 Speaker 1: to you, And dude, I love that because what that 363 00:17:10,960 --> 00:17:14,360 Speaker 1: tells me is it's up to you as an individual. 364 00:17:14,359 --> 00:17:16,720 Speaker 1: It's up to you personally, and that's what makes personal 365 00:17:16,760 --> 00:17:20,240 Speaker 1: finance so personal. Right. So, for example, if you're investing 366 00:17:20,520 --> 00:17:23,000 Speaker 1: in the stock market, you're looking at your rate of 367 00:17:23,040 --> 00:17:26,359 Speaker 1: return or real estate, either your cap right or cash 368 00:17:26,440 --> 00:17:29,680 Speaker 1: on cash. Those are easy ways to measure and have 369 00:17:29,800 --> 00:17:32,639 Speaker 1: those metrics that you can measure your investment against. Right, 370 00:17:32,680 --> 00:17:35,359 Speaker 1: How is it performing how will it perform? But aside 371 00:17:35,359 --> 00:17:37,000 Speaker 1: from the numbers, what I think is interesting too is 372 00:17:37,000 --> 00:17:38,879 Speaker 1: that you can also approach it from the standpoint of 373 00:17:39,119 --> 00:17:41,800 Speaker 1: how is this going to affect me as an individual? 374 00:17:41,920 --> 00:17:45,400 Speaker 1: From a lifestyle standpoint? How much time is this investment 375 00:17:45,400 --> 00:17:47,760 Speaker 1: going to take? Do I want to be specifically or 376 00:17:47,800 --> 00:17:50,040 Speaker 1: do I want to be a landlord? If not, then 377 00:17:50,080 --> 00:17:52,479 Speaker 1: I have to take into account management fees or if 378 00:17:52,480 --> 00:17:54,679 Speaker 1: I am going to manage it myself. It's not going 379 00:17:54,720 --> 00:17:56,760 Speaker 1: to be quite as easy as just investing in the 380 00:17:56,800 --> 00:18:00,720 Speaker 1: stock market. There's different measures, right, There's different met tricks 381 00:18:00,760 --> 00:18:04,560 Speaker 1: that you can weigh your investment options against. And when 382 00:18:04,640 --> 00:18:06,840 Speaker 1: you are able to do that, you're able to basically 383 00:18:06,840 --> 00:18:09,520 Speaker 1: start comparing apples to apples and figuring out, all right, 384 00:18:09,560 --> 00:18:12,320 Speaker 1: what about this is going to make this a successful 385 00:18:12,320 --> 00:18:15,720 Speaker 1: and profitable investment? And yeah, I love that, man, Yeah, 386 00:18:15,760 --> 00:18:18,080 Speaker 1: I love too. How she mentioned taking opinions from well 387 00:18:18,160 --> 00:18:21,640 Speaker 1: qualified people, because becoming an investor all on your own, 388 00:18:21,680 --> 00:18:24,240 Speaker 1: picking yourself up by your bootstraps, right to become like 389 00:18:24,240 --> 00:18:26,439 Speaker 1: the warm buffet of investing, well that's just not gonna happen. 390 00:18:26,720 --> 00:18:29,040 Speaker 1: Learning from the people that have gone before, that have 391 00:18:29,119 --> 00:18:31,119 Speaker 1: made the mistakes that have had the successes, that have 392 00:18:31,280 --> 00:18:34,960 Speaker 1: done well and thoroughly learned how to do something that's 393 00:18:35,000 --> 00:18:37,080 Speaker 1: just smart to pick the brains of people that are 394 00:18:37,119 --> 00:18:39,840 Speaker 1: crushing it at something, and so listening to money pros 395 00:18:39,920 --> 00:18:42,919 Speaker 1: that come on this show to talk about a particular topic. 396 00:18:43,160 --> 00:18:45,480 Speaker 1: Putting yourself in the path of well qualified people that 397 00:18:45,560 --> 00:18:47,920 Speaker 1: know what they're talking about is such an important piece 398 00:18:47,960 --> 00:18:50,600 Speaker 1: of becoming a good investor because without that, it's so 399 00:18:50,640 --> 00:18:54,960 Speaker 1: easy to be sucked in by salespeople of all stripes. 400 00:18:55,200 --> 00:18:57,840 Speaker 1: Whether it's a friend that works for an insurance company 401 00:18:57,840 --> 00:19:00,400 Speaker 1: that wants to sell you an investment product that has 402 00:19:00,440 --> 00:19:03,439 Speaker 1: incredibly high fees and incredibly high commissions, you're not going 403 00:19:03,480 --> 00:19:05,560 Speaker 1: to know that unless you're kind of putting yourself in 404 00:19:05,600 --> 00:19:07,959 Speaker 1: the path of well qualified people to take advice. So 405 00:19:08,040 --> 00:19:10,480 Speaker 1: I think that's a great takeaway from what Paula mentioned too. 406 00:19:10,800 --> 00:19:13,320 Speaker 1: And even if you're just going through the motions of 407 00:19:13,320 --> 00:19:15,480 Speaker 1: what you think is investing like you actually may not 408 00:19:15,560 --> 00:19:18,639 Speaker 1: be an investor like you might be investing. That doesn't 409 00:19:18,680 --> 00:19:22,199 Speaker 1: necessarily make you an investor. However, I don't think that 410 00:19:22,240 --> 00:19:25,680 Speaker 1: means that investing is bad though, right, And so, for instance, 411 00:19:25,720 --> 00:19:28,000 Speaker 1: if you know you've got to work sponsored four oh 412 00:19:28,040 --> 00:19:30,720 Speaker 1: one k. Opting into that four oh one K I 413 00:19:30,760 --> 00:19:33,760 Speaker 1: think is better than not, like it still gets you started. 414 00:19:33,880 --> 00:19:35,480 Speaker 1: And what I don't want people to hear is to 415 00:19:35,560 --> 00:19:37,639 Speaker 1: think that, like, dang it all, right, before I do anything, 416 00:19:37,640 --> 00:19:40,320 Speaker 1: I have to become a complete expert. Obviously, there's experts 417 00:19:40,320 --> 00:19:41,840 Speaker 1: out there, like you said, Jill, where you can put 418 00:19:41,840 --> 00:19:44,439 Speaker 1: yourself in the path of those folks. But beyond that, 419 00:19:44,480 --> 00:19:46,720 Speaker 1: there's still a certain amount of understanding, right that that 420 00:19:46,840 --> 00:19:49,240 Speaker 1: you feel like you need to have before you feel 421 00:19:49,280 --> 00:19:51,800 Speaker 1: qualified yourself. But even still, I think there's some small 422 00:19:51,840 --> 00:19:54,160 Speaker 1: steps like opting into your four oh one K, that's 423 00:19:54,160 --> 00:19:56,440 Speaker 1: something that it's a very small thing you can do, 424 00:19:56,760 --> 00:19:59,600 Speaker 1: and you may not know exactly all the ins and outs, 425 00:19:59,800 --> 00:20:02,639 Speaker 1: so something even small steps I think are better than nothing. 426 00:20:03,240 --> 00:20:05,439 Speaker 1: I think there is a potential for someone to have 427 00:20:05,560 --> 00:20:08,240 Speaker 1: heard what apologists said and say, scrap it, I'm throwing 428 00:20:08,240 --> 00:20:11,240 Speaker 1: in the towel before I even start, because I can't 429 00:20:11,240 --> 00:20:13,879 Speaker 1: be a pro. I can't be a knowledgeable investor. That 430 00:20:13,920 --> 00:20:16,600 Speaker 1: takes weeks and months of reading and getting up speed. 431 00:20:16,960 --> 00:20:19,000 Speaker 1: And I don't think that's the case either, right, I 432 00:20:19,040 --> 00:20:22,240 Speaker 1: think you can know enough to be a savvy investor 433 00:20:22,640 --> 00:20:25,440 Speaker 1: with a few hours really of putting in some time, 434 00:20:25,840 --> 00:20:27,680 Speaker 1: and Matt, I think you know, we've got an episode 435 00:20:27,680 --> 00:20:30,000 Speaker 1: retirement investing is simpler than you think, and I think 436 00:20:30,040 --> 00:20:32,200 Speaker 1: that's a good place to start, right. Paula talked about 437 00:20:32,200 --> 00:20:34,120 Speaker 1: investing in real estate, and we have episodes on that. 438 00:20:34,359 --> 00:20:37,600 Speaker 1: But I think one takeaway for people would be finding 439 00:20:37,680 --> 00:20:41,200 Speaker 1: your niche in investing and whether that's just basic stock 440 00:20:41,240 --> 00:20:43,440 Speaker 1: investing through your four oh one K. Man, that's pretty 441 00:20:43,440 --> 00:20:45,720 Speaker 1: easy to do, you know, the the real estate thing. 442 00:20:45,720 --> 00:20:47,040 Speaker 1: There's a lot more that you need to get up 443 00:20:47,040 --> 00:20:49,199 Speaker 1: to speed on, but we think it's super easy to 444 00:20:49,200 --> 00:20:50,679 Speaker 1: start investing in your four O one K and you 445 00:20:50,680 --> 00:20:53,920 Speaker 1: can have enough information to get started within forty five 446 00:20:53,960 --> 00:20:57,600 Speaker 1: minutes or not even Yeah, So so make sure you're 447 00:20:57,600 --> 00:21:00,320 Speaker 1: not taking on too much and discounting yourself before you begin, 448 00:21:00,600 --> 00:21:03,400 Speaker 1: because just because you don't feel like an investor right 449 00:21:03,400 --> 00:21:06,200 Speaker 1: now after listening to Politok doesn't mean that you can't 450 00:21:06,400 --> 00:21:08,560 Speaker 1: quickly get up to speed. It's easier than you think 451 00:21:08,600 --> 00:21:11,880 Speaker 1: it is. Confession, Man, I personally sometimes may not feel 452 00:21:11,880 --> 00:21:15,280 Speaker 1: like an investor after hearing Paulo speak. Right, you're pretty smart, 453 00:21:15,520 --> 00:21:18,120 Speaker 1: but what helps right is to develop your own sort 454 00:21:18,160 --> 00:21:20,480 Speaker 1: of philosophy towards investing. And so what you want to 455 00:21:20,520 --> 00:21:24,960 Speaker 1: ask yourself is do you have guiding philosophy or principles 456 00:21:24,960 --> 00:21:27,360 Speaker 1: that dictate your direction and how you want to invest? 457 00:21:27,880 --> 00:21:30,239 Speaker 1: And so write it down even so you can go 458 00:21:30,280 --> 00:21:32,360 Speaker 1: back to it and then from there you can let 459 00:21:32,400 --> 00:21:35,199 Speaker 1: that inform your decision making. Yeah, Matt, I know you 460 00:21:35,240 --> 00:21:37,640 Speaker 1: and I man, we both favor like a simpler approach 461 00:21:37,800 --> 00:21:40,280 Speaker 1: because that benefits most people. I feel like most of 462 00:21:40,359 --> 00:21:42,800 Speaker 1: us are going to take the time to read the 463 00:21:42,840 --> 00:21:46,240 Speaker 1: financials about specific companies so we can invest in individual stocks. 464 00:21:46,480 --> 00:21:49,520 Speaker 1: So our philosophy is to hit the easy button and 465 00:21:49,560 --> 00:21:53,159 Speaker 1: invest in low cost, widely diversified index funds. But you 466 00:21:53,200 --> 00:21:55,840 Speaker 1: know what, just having that approach, that philosophy, that outline, 467 00:21:56,080 --> 00:21:58,480 Speaker 1: and having that written down there, that's our statement. You 468 00:21:58,480 --> 00:22:00,320 Speaker 1: know what, then I don't have to dabble in any 469 00:22:00,320 --> 00:22:02,560 Speaker 1: other way of investing when it comes to stocks, and 470 00:22:02,600 --> 00:22:04,439 Speaker 1: when it comes to investing in real estate, you know, 471 00:22:04,480 --> 00:22:06,320 Speaker 1: which not everyone needs to get into by any stretch 472 00:22:06,359 --> 00:22:08,280 Speaker 1: of the imagination, but if you do, you should have 473 00:22:08,280 --> 00:22:11,119 Speaker 1: a guiding philosophy. But my guiding philosophy right is to 474 00:22:11,160 --> 00:22:13,480 Speaker 1: invest close to where I live, in neighborhoods that I 475 00:22:13,560 --> 00:22:16,760 Speaker 1: understand and live nearby. It's just an investment that I 476 00:22:16,800 --> 00:22:21,080 Speaker 1: can understand, versus buying apartment complexes or buying a place 477 00:22:21,200 --> 00:22:23,720 Speaker 1: in Detroit where I've never set foot in. Right, So 478 00:22:23,840 --> 00:22:26,960 Speaker 1: just knowing your philosophy and your approach is half the battle. 479 00:22:27,240 --> 00:22:29,760 Speaker 1: It just keeps you from allowing your mind to water 480 00:22:29,880 --> 00:22:31,679 Speaker 1: and all these other things you could be doing, and 481 00:22:31,720 --> 00:22:34,320 Speaker 1: allows you kind of focus on the essentials. Angel. It's 482 00:22:34,359 --> 00:22:37,600 Speaker 1: so important to have those investing parameters. I know, even 483 00:22:37,640 --> 00:22:39,600 Speaker 1: setting out when Kate, now we're looking at our first 484 00:22:39,640 --> 00:22:43,480 Speaker 1: investment properties, we were only considering three twos in a 485 00:22:43,520 --> 00:22:46,080 Speaker 1: certain part of town at a certain price point because 486 00:22:46,080 --> 00:22:48,560 Speaker 1: we knew that that is a obviously what we could afford, 487 00:22:48,600 --> 00:22:50,800 Speaker 1: but what we knew to be most profitable and what 488 00:22:50,840 --> 00:22:52,720 Speaker 1: we knew was going to be the easiest to rent 489 00:22:53,119 --> 00:22:57,199 Speaker 1: in that specific neighborhood. And so yeah, cutting through the noise, 490 00:22:57,359 --> 00:22:59,960 Speaker 1: like like PAULA mentioned, and focusing and lashing onto that, say, 491 00:23:00,400 --> 00:23:03,000 Speaker 1: knowing what it is that you're seeking after, you've got 492 00:23:03,000 --> 00:23:05,040 Speaker 1: to have that direction. And so next we're going to 493 00:23:05,160 --> 00:23:09,840 Speaker 1: discuss uh Paul's second point, which was to beware of resulting. 494 00:23:10,400 --> 00:23:13,560 Speaker 1: This was my favorite point. Yeah, I'm kind of obsessed 495 00:23:13,600 --> 00:23:16,520 Speaker 1: with this idea of resulting. I feel like so many 496 00:23:16,520 --> 00:23:19,840 Speaker 1: people decide whether something was successful or not based on 497 00:23:19,880 --> 00:23:22,160 Speaker 1: the result, right, And that just seems like common sense, 498 00:23:22,240 --> 00:23:24,080 Speaker 1: right of course. Yeah, but when it comes down to it, 499 00:23:24,080 --> 00:23:26,760 Speaker 1: there are so many things that influence a potential outcome, 500 00:23:26,880 --> 00:23:28,920 Speaker 1: and it turns out you just can't base the results 501 00:23:29,080 --> 00:23:32,399 Speaker 1: purely on the outcome. Yeah, it's natural, right, It's natural 502 00:23:32,440 --> 00:23:34,840 Speaker 1: to think and feel that way because us as humans, 503 00:23:34,960 --> 00:23:37,080 Speaker 1: like Paul mentioned, it's our it's our tendency to to 504 00:23:37,080 --> 00:23:40,000 Speaker 1: base the results and the success on the outcomes, right, 505 00:23:40,200 --> 00:23:43,639 Speaker 1: versus trusting the process and the approach that got you 506 00:23:43,680 --> 00:23:46,399 Speaker 1: there in this process and this approach like this is 507 00:23:46,400 --> 00:23:48,840 Speaker 1: what we're talking about that we've already established in the 508 00:23:48,840 --> 00:23:52,000 Speaker 1: first point. And so if you don't know why or 509 00:23:52,080 --> 00:23:54,600 Speaker 1: how you've arrived at where you are, like you've just 510 00:23:54,640 --> 00:23:57,680 Speaker 1: gotten lucky. Yeah, the decision making process is just as 511 00:23:57,680 --> 00:24:00,440 Speaker 1: important as the outcome itself. So for instance, your uncle 512 00:24:00,480 --> 00:24:02,600 Speaker 1: winning the lottery doesn't mean that the fact that you 513 00:24:02,640 --> 00:24:05,119 Speaker 1: played a lottery for eight years made it worth it. 514 00:24:05,200 --> 00:24:08,840 Speaker 1: We know the actual stats of lottery winners, what percentage 515 00:24:08,840 --> 00:24:11,560 Speaker 1: of people actually win the lottery? And you're you're like 516 00:24:11,640 --> 00:24:13,680 Speaker 1: way more likely to get struck by lightning twice in 517 00:24:13,720 --> 00:24:15,639 Speaker 1: the doing the lottery, So we just know what's a 518 00:24:15,720 --> 00:24:17,960 Speaker 1: terrible play, right And also let's too just because he 519 00:24:18,000 --> 00:24:21,040 Speaker 1: won the lottery once doesn't mean he's now an expert 520 00:24:21,080 --> 00:24:23,120 Speaker 1: at winning the lottery, right Like, he did it one 521 00:24:23,160 --> 00:24:27,119 Speaker 1: time and it's never gonna happen again. So instead of 522 00:24:27,119 --> 00:24:29,159 Speaker 1: looking at the results, and I feel like that's a 523 00:24:29,160 --> 00:24:31,439 Speaker 1: good example of that, be sure and crunch the numbers, 524 00:24:31,480 --> 00:24:34,600 Speaker 1: read reports, and trust the facts. Those are the things 525 00:24:34,600 --> 00:24:38,199 Speaker 1: you should cling to as an investor instead of just 526 00:24:38,240 --> 00:24:40,199 Speaker 1: the results in any given year. Yeah, and what this 527 00:24:40,320 --> 00:24:44,399 Speaker 1: is essentially your due diligence of investing, right Like, Oftentimes 528 00:24:44,440 --> 00:24:47,880 Speaker 1: that term gets applied to buying a home or investment 529 00:24:47,880 --> 00:24:51,080 Speaker 1: property specifically, but man, lately we've been using it more 530 00:24:51,080 --> 00:24:54,000 Speaker 1: and more to refer to just doing your homework, doing 531 00:24:54,080 --> 00:24:57,199 Speaker 1: the due diligence, taking the steps necessary to ensure that 532 00:24:57,240 --> 00:24:59,359 Speaker 1: you're doing the right thing. You don't want this to 533 00:24:59,359 --> 00:25:01,679 Speaker 1: be sort of gut decision. You don't want it to 534 00:25:01,680 --> 00:25:03,520 Speaker 1: be an emotional decision. Will get more into that in 535 00:25:03,600 --> 00:25:06,040 Speaker 1: the next point. But you want it to be something 536 00:25:06,160 --> 00:25:09,439 Speaker 1: where you feel confident because, yeah, you've run the numbers. 537 00:25:09,640 --> 00:25:12,760 Speaker 1: You know that the numbers don't lie. Obviously, things can change, 538 00:25:12,840 --> 00:25:15,520 Speaker 1: but you're going into it incredibly informed and confident in 539 00:25:15,520 --> 00:25:18,240 Speaker 1: the decision that you're about to make. Yeah. And so 540 00:25:18,480 --> 00:25:20,840 Speaker 1: there's a lady Annie Duke, and she was a world 541 00:25:20,960 --> 00:25:23,159 Speaker 1: champion poker player, and she wrote a book called Thinking 542 00:25:23,160 --> 00:25:27,320 Speaker 1: in Bets, and she's a fascinating, fascinating person, and she 543 00:25:27,440 --> 00:25:30,480 Speaker 1: specifically talks about how the result of a hand in 544 00:25:30,520 --> 00:25:33,159 Speaker 1: poker is not indicative of how will you played, and 545 00:25:33,200 --> 00:25:36,959 Speaker 1: she extrapolated in great detail about how people think that 546 00:25:37,000 --> 00:25:39,160 Speaker 1: and they think they're better than they are. But when 547 00:25:39,200 --> 00:25:42,720 Speaker 1: it turns out over a series of poker games, the 548 00:25:42,760 --> 00:25:45,800 Speaker 1: person that thinks that the result is the most important thing, 549 00:25:46,119 --> 00:25:48,280 Speaker 1: ultimately they're a worst player in the end and they're 550 00:25:48,280 --> 00:25:50,920 Speaker 1: gonna lose more money and so versus playing the game 551 00:25:50,960 --> 00:25:53,439 Speaker 1: properly like they know that they're supposed to exactly. And 552 00:25:53,520 --> 00:25:55,919 Speaker 1: she learned that early on in her career through talking 553 00:25:55,960 --> 00:25:59,560 Speaker 1: to other really intelligent poker players talking about her bad beats, 554 00:25:59,840 --> 00:26:02,560 Speaker 1: and like, if you've ever played poker before, you know 555 00:26:02,760 --> 00:26:04,760 Speaker 1: that any poker player says that, right, that was a 556 00:26:04,800 --> 00:26:06,919 Speaker 1: bad beat I got I got crushed. It wasn't my fault, 557 00:26:07,040 --> 00:26:08,879 Speaker 1: and that's what everyone thinks. And so she started to 558 00:26:08,880 --> 00:26:11,359 Speaker 1: go into the hands thinking about, Okay, well, actually that 559 00:26:11,400 --> 00:26:13,439 Speaker 1: probably was my fault. That wasn't a bad beat, that 560 00:26:13,520 --> 00:26:15,480 Speaker 1: was me playing it wrong. And thinking about it in 561 00:26:15,520 --> 00:26:18,439 Speaker 1: those terms helped her to get way better at playing poker, 562 00:26:18,600 --> 00:26:20,480 Speaker 1: helped her to kind of realign the way she thought 563 00:26:20,480 --> 00:26:23,280 Speaker 1: about it, and so instead of resulting basing the way 564 00:26:23,320 --> 00:26:26,240 Speaker 1: you think about something based purely on the results alone, 565 00:26:26,400 --> 00:26:28,200 Speaker 1: she started to think about the process as opposed to 566 00:26:28,240 --> 00:26:30,600 Speaker 1: the outcome. And I think that's really helpful for us all. 567 00:26:30,960 --> 00:26:32,920 Speaker 1: So any duke, she puts the priority on the decision 568 00:26:32,920 --> 00:26:35,240 Speaker 1: making process as opposed to the outcome itself, which I 569 00:26:35,240 --> 00:26:37,080 Speaker 1: think makes a lot of sense. Yeah, but she one 570 00:26:37,080 --> 00:26:39,160 Speaker 1: of those people that were like her sunglasses upside down, 571 00:26:39,320 --> 00:26:41,640 Speaker 1: like at the poker table at the tournaments. Oh my gosh, 572 00:26:41,840 --> 00:26:45,080 Speaker 1: I watched so much World Series of Poker, Like, oh yeah, 573 00:26:45,280 --> 00:26:48,800 Speaker 1: I bet you watch Rounders as well in college. You know, 574 00:26:48,840 --> 00:26:51,320 Speaker 1: I've never seen it. What that was one of the best, Well, 575 00:26:51,560 --> 00:26:54,159 Speaker 1: that's the best poker movie ever. But Edward Norton's my 576 00:26:54,160 --> 00:26:56,800 Speaker 1: favorite actors. You know, I t love Edward Norton, but 577 00:26:56,840 --> 00:26:58,719 Speaker 1: I never watched the actual movie. It was always on 578 00:26:58,760 --> 00:27:01,200 Speaker 1: at my friend's house. Well, that's on your to do list. 579 00:27:01,280 --> 00:27:05,800 Speaker 1: You me date night, will you watch it with me? Thanks? Yeah? 580 00:27:05,840 --> 00:27:07,040 Speaker 1: And so in the end, what you want to do 581 00:27:07,200 --> 00:27:09,679 Speaker 1: is to make sure that you're looking at your decisions 582 00:27:09,720 --> 00:27:13,200 Speaker 1: not just based on a single results, but you want 583 00:27:13,200 --> 00:27:14,600 Speaker 1: to have a formula and you want to have an 584 00:27:14,600 --> 00:27:18,000 Speaker 1: approach that will help you succeed over time. So again, 585 00:27:18,040 --> 00:27:21,720 Speaker 1: you're not looking for a single win, but you're looking 586 00:27:21,760 --> 00:27:23,560 Speaker 1: for many of them. You're looking for a ton of 587 00:27:23,560 --> 00:27:25,560 Speaker 1: them over the long haul. Essentially, you're not looking to 588 00:27:25,560 --> 00:27:27,720 Speaker 1: win the battle, You're looking to win the war. All right, Matt. 589 00:27:27,760 --> 00:27:29,639 Speaker 1: After the break, we'll get to Paula's last point and 590 00:27:29,680 --> 00:27:33,040 Speaker 1: talk about how our perception of an investment can have 591 00:27:33,160 --> 00:27:46,119 Speaker 1: massive negative long term ramifications on our psyche. Okay, So 592 00:27:46,200 --> 00:27:49,640 Speaker 1: Paula's last point is to be aware of the sequence 593 00:27:49,680 --> 00:27:53,640 Speaker 1: of returns risk. And so the typical definition it applies 594 00:27:53,680 --> 00:27:56,320 Speaker 1: more to like retirees. And so since we're not anywhere 595 00:27:56,320 --> 00:27:59,080 Speaker 1: close to retirement, even just if you're investing, right, So 596 00:27:59,160 --> 00:28:01,440 Speaker 1: Let's say you just and you opened a roth Ira 597 00:28:01,640 --> 00:28:03,159 Speaker 1: for the first time, and all of a sudden, you 598 00:28:03,160 --> 00:28:05,560 Speaker 1: start seeing the market tank and you think, crap, like, 599 00:28:05,640 --> 00:28:07,479 Speaker 1: what's going on? I made the wrong move. I am 600 00:28:07,520 --> 00:28:09,640 Speaker 1: not investing where I need to be, Like, everything's looking bad. 601 00:28:09,720 --> 00:28:12,199 Speaker 1: But Matt and Joel said to do it. And so 602 00:28:12,240 --> 00:28:14,320 Speaker 1: what a terrible thing to do at that point would 603 00:28:14,320 --> 00:28:16,680 Speaker 1: be to take your money out because at that point, 604 00:28:16,680 --> 00:28:20,280 Speaker 1: what you've done is you've actually realized those losses. It's 605 00:28:20,320 --> 00:28:22,600 Speaker 1: on paper up until that point. Yeah, Pop Paula talked 606 00:28:22,640 --> 00:28:25,000 Speaker 1: about paper losses for its actual loss Yeah, yeah, exactly. 607 00:28:25,040 --> 00:28:27,160 Speaker 1: And what it looks like on paper on your statement 608 00:28:27,800 --> 00:28:30,160 Speaker 1: is different than if you lock them in by taking 609 00:28:30,200 --> 00:28:32,080 Speaker 1: money out of your retirement account. Right. Yeah. If you 610 00:28:32,160 --> 00:28:34,199 Speaker 1: let us sit, you get to see that rebound and 611 00:28:34,200 --> 00:28:36,280 Speaker 1: you get to see that growth. But if you get 612 00:28:36,320 --> 00:28:39,160 Speaker 1: spooked and you get freaked out, you have a negative experience, 613 00:28:39,360 --> 00:28:42,360 Speaker 1: and it becomes a truly negative experience once you make 614 00:28:42,400 --> 00:28:44,760 Speaker 1: those withdrawals. But what I love, though, is that she 615 00:28:44,800 --> 00:28:47,640 Speaker 1: took that concept and then she is applying that just 616 00:28:47,720 --> 00:28:50,440 Speaker 1: more on a conceptual level when it comes to investing 617 00:28:50,520 --> 00:28:52,560 Speaker 1: and not just investing in the market. But all sorts 618 00:28:52,600 --> 00:28:54,880 Speaker 1: of investing. So think if you're a real estate investor 619 00:28:54,960 --> 00:28:58,120 Speaker 1: Matt Right, and you buy a house and you're underlying 620 00:28:58,160 --> 00:29:01,960 Speaker 1: fundamentals are solid, You've listened to you know, our episodes 621 00:29:02,000 --> 00:29:04,360 Speaker 1: on buying a rental home, and you've thought about it 622 00:29:04,400 --> 00:29:07,520 Speaker 1: really well, you know your market, you made a savvy purchase, 623 00:29:07,920 --> 00:29:10,959 Speaker 1: you even found good tenants. But then a pipe bursts 624 00:29:11,000 --> 00:29:13,880 Speaker 1: in the basement and does thousands of dollars worth of 625 00:29:13,960 --> 00:29:16,400 Speaker 1: damage to your home. That's a bummer right to have 626 00:29:16,480 --> 00:29:19,080 Speaker 1: that happen in your first month or two of rental 627 00:29:19,080 --> 00:29:21,520 Speaker 1: property ownership, But that doesn't mean that it was a 628 00:29:21,520 --> 00:29:24,760 Speaker 1: poor investment. You can't take your first month or year 629 00:29:24,920 --> 00:29:28,320 Speaker 1: even of rental property ownership and decide whether it was 630 00:29:28,360 --> 00:29:30,920 Speaker 1: a good or bad investment based on that alone. In 631 00:29:30,960 --> 00:29:32,640 Speaker 1: the same way with the stock market, if you just 632 00:29:32,680 --> 00:29:34,600 Speaker 1: invested in that I ra A and the market is 633 00:29:34,640 --> 00:29:37,720 Speaker 1: tumultuous and seems to be dropping, well, that doesn't mean 634 00:29:37,800 --> 00:29:39,800 Speaker 1: it's not smart to invest for the long term in 635 00:29:39,840 --> 00:29:41,880 Speaker 1: the stock market. That just means that it's a tough 636 00:29:41,920 --> 00:29:44,240 Speaker 1: time right now, but ultimately, over time, when you look 637 00:29:44,280 --> 00:29:47,120 Speaker 1: at the history and the way things ultimately go, it's 638 00:29:47,160 --> 00:29:49,880 Speaker 1: the best move you could make. And so those initial 639 00:29:49,920 --> 00:29:53,360 Speaker 1: results don't mean that this is how things will always look, 640 00:29:53,720 --> 00:29:56,520 Speaker 1: and that initial short term bad result can have a 641 00:29:56,680 --> 00:30:00,400 Speaker 1: long term negative effects on you as an investor if 642 00:30:00,440 --> 00:30:02,560 Speaker 1: you turn and run, right like if you pull out, 643 00:30:02,640 --> 00:30:04,160 Speaker 1: if you you know, if you make the sale, if 644 00:30:04,200 --> 00:30:06,640 Speaker 1: you val that you're never going to invest again. You've 645 00:30:06,680 --> 00:30:11,080 Speaker 1: got to overcome that, and you do that by having metrics. 646 00:30:11,400 --> 00:30:13,640 Speaker 1: You do that by doing your research, by doing your 647 00:30:13,680 --> 00:30:16,440 Speaker 1: due diligence, and knowing that the decision that you've made 648 00:30:16,880 --> 00:30:18,640 Speaker 1: is a sound one and that it's going to be 649 00:30:18,720 --> 00:30:21,640 Speaker 1: one that leads to you making a profit. Yeah, and Matt, 650 00:30:21,680 --> 00:30:24,920 Speaker 1: the analogy that we gave earlier, winning the war is 651 00:30:25,000 --> 00:30:27,160 Speaker 1: what's most important, right, not winning the battle. And so 652 00:30:27,200 --> 00:30:29,760 Speaker 1: if you invest as the market is going down, that 653 00:30:29,800 --> 00:30:31,960 Speaker 1: doesn't mean that it's not wise to invest for the 654 00:30:32,000 --> 00:30:34,320 Speaker 1: long haul in stocks. It just means that you're investing 655 00:30:34,360 --> 00:30:37,040 Speaker 1: in a current rough patch. And if you buy a 656 00:30:37,120 --> 00:30:40,040 Speaker 1: rental house with the right fundamentals, well research, you have 657 00:30:40,880 --> 00:30:43,280 Speaker 1: to put down you're buying in a neighborhood that you understand. 658 00:30:43,640 --> 00:30:46,360 Speaker 1: Just because something goes wrong the first month or two 659 00:30:46,480 --> 00:30:48,880 Speaker 1: or year and you lose a little bit of money 660 00:30:48,880 --> 00:30:51,080 Speaker 1: in the beginning, that doesn't make it an unwise decision, 661 00:30:51,360 --> 00:30:54,480 Speaker 1: and making a quick decision based on that initial sequence 662 00:30:54,480 --> 00:30:57,280 Speaker 1: of returns can lock in your losses and actually hurt 663 00:30:57,320 --> 00:30:59,240 Speaker 1: you even more in the long run. So, for instance, 664 00:30:59,280 --> 00:31:01,800 Speaker 1: selling that home that didn't do well the first year 665 00:31:01,840 --> 00:31:04,760 Speaker 1: can dig you a deeper financial hole than holding onto 666 00:31:04,760 --> 00:31:07,400 Speaker 1: it and writing out that rough stretch man. And something 667 00:31:07,400 --> 00:31:10,400 Speaker 1: that's interesting to note is that Paula's points right two 668 00:31:10,440 --> 00:31:13,520 Speaker 1: and three specifically so to be aware of resulting and 669 00:31:13,520 --> 00:31:16,960 Speaker 1: then her third point beware of the sequence of returns risk. 670 00:31:17,520 --> 00:31:19,720 Speaker 1: There are different sides of the same coin. Where in 671 00:31:19,760 --> 00:31:21,800 Speaker 1: the second point that she mentioned about resulting was more 672 00:31:21,800 --> 00:31:24,239 Speaker 1: of a positive approach, and then this one that we're 673 00:31:24,240 --> 00:31:26,160 Speaker 1: talking about now is more sort of the negative side 674 00:31:26,200 --> 00:31:28,959 Speaker 1: of that. But both of those risks or feelings are 675 00:31:28,960 --> 00:31:31,960 Speaker 1: based on emotion, and so in the first example, something 676 00:31:32,000 --> 00:31:33,720 Speaker 1: good happens and you think, Okay, this is how it's 677 00:31:33,720 --> 00:31:35,880 Speaker 1: always going to be, and you think, I'm a genius, 678 00:31:36,040 --> 00:31:38,120 Speaker 1: this is always gonna work out, I'm always gonna make money. 679 00:31:38,120 --> 00:31:41,440 Speaker 1: It's awesome. Well who iraq, Yeah, Whereas in the second 680 00:31:41,440 --> 00:31:44,040 Speaker 1: example it's more the negative side of it. You think, oh, 681 00:31:44,080 --> 00:31:46,240 Speaker 1: i've invested, things are not looking good. This is just 682 00:31:46,280 --> 00:31:48,760 Speaker 1: how it's always going to be. Things suck. But both 683 00:31:48,840 --> 00:31:52,880 Speaker 1: of these are driven by emotion, and when it comes 684 00:31:52,920 --> 00:31:55,360 Speaker 1: to investing, a lot of times you have to operate 685 00:31:55,400 --> 00:31:57,560 Speaker 1: like a robot. This is really hard to do, but 686 00:31:57,760 --> 00:32:00,520 Speaker 1: you have to sort of turn off your emotions and 687 00:32:00,640 --> 00:32:03,240 Speaker 1: ride out the storm when you know that you've made 688 00:32:03,240 --> 00:32:07,560 Speaker 1: a proper informed research decision. These ups and downs, they 689 00:32:07,560 --> 00:32:10,320 Speaker 1: shouldn't face you, right, And I say they shouldn't because 690 00:32:10,320 --> 00:32:12,440 Speaker 1: we're all human and people will still check in to 691 00:32:12,480 --> 00:32:14,800 Speaker 1: see what SMP is doing that day, because you know 692 00:32:14,840 --> 00:32:17,080 Speaker 1: that you hear people talking and it kind of affects 693 00:32:17,080 --> 00:32:18,760 Speaker 1: you a little bit, but it shouldn't affect you so 694 00:32:18,840 --> 00:32:21,920 Speaker 1: much that you're making decisions and that you're making purchases 695 00:32:22,000 --> 00:32:26,160 Speaker 1: and selling based on what the market is doing right now. Yeah, Matt, 696 00:32:26,280 --> 00:32:29,280 Speaker 1: we're emotional creatures, were emotional beings, and of course it's 697 00:32:29,280 --> 00:32:32,240 Speaker 1: hard to take emotions out of investing, right and investing 698 00:32:32,640 --> 00:32:34,960 Speaker 1: it's better if we could, right, if we can completely 699 00:32:35,000 --> 00:32:39,200 Speaker 1: lobotomize ourselves from all emotion and invest like robots. We can't, 700 00:32:39,480 --> 00:32:42,040 Speaker 1: But what we can do is be aware of the 701 00:32:42,040 --> 00:32:46,520 Speaker 1: fact that those emotions influence our decision making process, and 702 00:32:46,560 --> 00:32:49,479 Speaker 1: we can be better investors if we do our best 703 00:32:49,760 --> 00:32:53,000 Speaker 1: to put our emotions on the sidelines and focus on 704 00:32:53,040 --> 00:32:56,680 Speaker 1: those underlying fundamentals that will give us big wins over time. 705 00:32:57,040 --> 00:33:00,400 Speaker 1: Maybe not the biggest possible win in the immediate moment. 706 00:33:00,880 --> 00:33:02,760 Speaker 1: That's right. Maybe we should have called this one emotional 707 00:33:02,840 --> 00:33:06,560 Speaker 1: investing or zero emotion investing. Yeah, I mean that that 708 00:33:06,560 --> 00:33:10,800 Speaker 1: would be the proper approaches. Zero emotion investing. I like it. 709 00:33:10,840 --> 00:33:14,160 Speaker 1: So speaking about emotions, how do you feel about this beer? 710 00:33:14,520 --> 00:33:17,520 Speaker 1: I just adopted it into my family, that's how good 711 00:33:17,560 --> 00:33:20,000 Speaker 1: it was. Man Like we said, man we we kind 712 00:33:20,000 --> 00:33:22,320 Speaker 1: of got obsessed with this brewery on our vacation last year, 713 00:33:22,680 --> 00:33:24,920 Speaker 1: and it's still doing it for me. The beer that 714 00:33:24,920 --> 00:33:29,120 Speaker 1: we're drinking is Southern Swells Brewing Company freshly picked Citra. 715 00:33:29,400 --> 00:33:32,160 Speaker 1: Citra is a type of hop that has really juicy characteristics. 716 00:33:32,360 --> 00:33:34,040 Speaker 1: And so the one word Matt that I mentioned at 717 00:33:34,080 --> 00:33:37,480 Speaker 1: the beginning of the podcast that described this beer was crushable. 718 00:33:37,920 --> 00:33:40,720 Speaker 1: And that's very true because I'm nearly done with it. 719 00:33:40,720 --> 00:33:44,000 Speaker 1: It's so good. Like a lot of New England style 720 00:33:44,000 --> 00:33:48,160 Speaker 1: I p As has poured a nice hazy gold, pale 721 00:33:48,240 --> 00:33:52,480 Speaker 1: yellow color. It's beautiful. My word was pillowy and I 722 00:33:52,520 --> 00:33:55,960 Speaker 1: stick with it. Man. It had such a light, pillowy, 723 00:33:56,000 --> 00:33:58,640 Speaker 1: foamy head and as I took a little sip of it, 724 00:33:58,680 --> 00:34:00,680 Speaker 1: I could just feel the soft us on my lips. 725 00:34:00,880 --> 00:34:03,040 Speaker 1: Speaking a pillowe, I would totally rest my head on 726 00:34:03,080 --> 00:34:06,720 Speaker 1: this at night. But and it it didn't have any bite, 727 00:34:06,760 --> 00:34:08,160 Speaker 1: you know, like that's the thing like that. It was 728 00:34:08,200 --> 00:34:10,640 Speaker 1: just so soft and kind of smooth for an I 729 00:34:10,719 --> 00:34:14,440 Speaker 1: p a like this and just yeah, incredibly delicious. And 730 00:34:14,480 --> 00:34:18,080 Speaker 1: so thanks to Kate over at Southern Swells Brewing Company 731 00:34:18,080 --> 00:34:21,120 Speaker 1: for donating to the show and supporting the podcast. If 732 00:34:21,160 --> 00:34:22,719 Speaker 1: you're ever in Jack speech, make sure you swing by 733 00:34:22,719 --> 00:34:25,839 Speaker 1: and get a point. Yes, definitely. Let's do our final 734 00:34:25,880 --> 00:34:28,720 Speaker 1: thoughts now, these are our key takeaways of what Paula 735 00:34:28,760 --> 00:34:30,840 Speaker 1: had to share with us. When it comes to investing, 736 00:34:31,200 --> 00:34:35,440 Speaker 1: you need to develop an approach in a philosophy towards investing. 737 00:34:35,480 --> 00:34:37,840 Speaker 1: You need to figure out what metrics are important to 738 00:34:37,920 --> 00:34:40,279 Speaker 1: you as an individual and what it is that you 739 00:34:40,360 --> 00:34:43,719 Speaker 1: are seeking after. Yeah. Man, that's because the decision making 740 00:34:43,719 --> 00:34:47,320 Speaker 1: process is just as important as the outcome itself. You 741 00:34:47,360 --> 00:34:49,160 Speaker 1: need to crunch the numbers and trust the facts that 742 00:34:49,200 --> 00:34:52,080 Speaker 1: you've been presented with, because you can either demonize a 743 00:34:52,120 --> 00:34:54,680 Speaker 1: position you've made or put it on a pedestal based 744 00:34:54,719 --> 00:34:56,960 Speaker 1: on the results alone, and that's just not the way 745 00:34:57,040 --> 00:35:01,400 Speaker 1: a successful investor thinks. Keep in mind that some initial 746 00:35:01,680 --> 00:35:05,200 Speaker 1: negative momentum can really affect your perception of a specific 747 00:35:05,280 --> 00:35:09,480 Speaker 1: investment and can actually lead to real, realized losses were 748 00:35:09,520 --> 00:35:12,640 Speaker 1: you to act on that sort of negative downturn. And 749 00:35:12,680 --> 00:35:14,680 Speaker 1: so what we need to do, and this is hard 750 00:35:14,719 --> 00:35:16,799 Speaker 1: to do, but we need to remove our emotions when 751 00:35:16,800 --> 00:35:20,760 Speaker 1: it comes to making decisions in the investment process. Knowing 752 00:35:20,800 --> 00:35:25,359 Speaker 1: that you have sound, solid underlying fundamentals when it comes 753 00:35:25,400 --> 00:35:28,440 Speaker 1: to your approach, in your criteria and your metrics that 754 00:35:28,440 --> 00:35:31,560 Speaker 1: you're measuring your investment against and will allow you to 755 00:35:31,760 --> 00:35:34,960 Speaker 1: weather the storm when those initial results just don't happen 756 00:35:35,000 --> 00:35:37,040 Speaker 1: to swing your way. All right, Matt, that was a 757 00:35:37,040 --> 00:35:39,760 Speaker 1: fun one. Thanks to Paula Pant from the Afford Anything 758 00:35:39,800 --> 00:35:43,080 Speaker 1: podcast for dishing out that wisdom. It was really fun 759 00:35:43,080 --> 00:35:45,040 Speaker 1: to kind of discuss it together. So if you want 760 00:35:45,040 --> 00:35:47,000 Speaker 1: to know more about what paul is up to, go 761 00:35:47,080 --> 00:35:49,040 Speaker 1: to how to money dot com. You can check out 762 00:35:49,080 --> 00:35:51,439 Speaker 1: the show notes for this episode. To everyone out there 763 00:35:51,520 --> 00:35:54,319 Speaker 1: if you have found this podcast helpful, If you found 764 00:35:54,320 --> 00:35:56,840 Speaker 1: this episode helpful, we would love to hear from you. 765 00:35:56,880 --> 00:35:59,120 Speaker 1: If you could leave a review wherever it is that 766 00:35:59,160 --> 00:36:02,920 Speaker 1: you listen to podcast but especially Apple podcasts, and by 767 00:36:02,960 --> 00:36:05,320 Speaker 1: leaving a review, that just helps us to get the 768 00:36:05,360 --> 00:36:07,840 Speaker 1: word out and it helps others to find this podcast 769 00:36:07,920 --> 00:36:11,040 Speaker 1: that wouldn't normally have found it. So thanks in advance. 770 00:36:11,520 --> 00:36:15,120 Speaker 1: So until next time, Man, best Friends Out, Best Friends Out.