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

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

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Speaker 2: You you kind of jumped the gun on that one.

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Speaker 2: I barely had time to swallow my little taste of beer.

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Speaker 1: There time to get this train roll in my mouth

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Speaker 1: was it.

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Speaker 2: Was still still watering. But this is and ask how

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Speaker 2: to Money Monday episode for folks out there. We've got

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Speaker 2: five listener questions lined up for you. A listener is

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Speaker 2: asking about diagnosable money disorders, whether or not Joel, you

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Speaker 2: in particular, whether or not you've been that you discovered that.

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Speaker 2: This probably sounds really confusing, but we will get to

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Speaker 2: that one here. In this question itself is a hip

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Speaker 2: a violation. I just want to know.

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Speaker 1: I don't think we should be taking you after.

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Speaker 2: You can sign off and allow us to talk about it. Right,

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Speaker 2: it's but it's your right.

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Speaker 1: I guess.

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Speaker 2: Is that how it works out?

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Speaker 1: Not to mesually.

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Speaker 2: But somebody else is wanting to know what he should

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Speaker 2: be doing with this unsustainable housing market the way prices

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Speaker 2: have been going. And another listener is wanting to make

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Speaker 2: the most of a ten thirty one exchange. What is

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Speaker 2: that and how does it pertain to real estate. We'll

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Speaker 2: get to that here in a second, and we'll answer

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Speaker 2: to additional questions. Ten thirty one exchange one of those

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Speaker 2: things not a lot of people know about, but as

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Speaker 2: a real estate investor, if you're planning on swapping properties,

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Speaker 2: it can save you a ton of money. We'll discuss that,

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Speaker 2: along with a lot of other things on this episode.

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Speaker 2: Right man, But some in laws I'll chatting with them,

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Speaker 2: and they recently bought a new car. They're rich, so

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Speaker 2: they've bought.

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Speaker 1: In this market, a brand new car must be loaded.

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Speaker 2: No, they are retired and they thought, you know what,

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Speaker 2: it's time to get us a nice vehicle. That's you've

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Speaker 2: never been owned by anybody else in.

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Speaker 1: The world, like that could have been my inheritance.

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Speaker 2: I'm hey, one day we might be driving that car.

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Speaker 2: I don't know. We'll see how long you've been on

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Speaker 2: a car last on the road. But they got a

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Speaker 2: brand new Kia Sportage. And dude, that thing is I'll say,

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Speaker 2: it's pretty stick and sweet. It's like a hybrid kind

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Speaker 2: of suva, you know, it's like one of those one

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Speaker 2: of those new types. It's not a hybrid, right, No,

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Speaker 2: I'm sorry, No, Yes, it's not an actual hybrid. It's

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Speaker 2: like a crossover.

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Speaker 1: That's what I meant to say. But they've really enjoyed it.

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Speaker 1: But what they have in he is are so hot

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Speaker 1: right now? They are?

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Speaker 2: They are?

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Speaker 1: Yeah, we talk about that with.

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Speaker 2: The car Dealership guide that tell you right in particular

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Speaker 2: is I think that was the beginning of Kia just

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Speaker 2: changing their image, changing their brand. And that's what I

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Speaker 2: keep telling my in law, specifically my mother in law,

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Speaker 2: is I'm curious to see if in ten fifteen years

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Speaker 2: from now, if folks are gonna look at Kia's in

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Speaker 2: the same light the same way that we look at

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Speaker 2: Honda's and Toyota's.

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Speaker 1: Yeah, I think they already kind of are.

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Speaker 2: It seems like they're getting that way.

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Speaker 1: I remember my brother in law had a Hyundai like

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Speaker 1: twenty years ago, and Hyundai's were trash. They were just

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Speaker 1: like nobody respected them. They were so cheap. They had

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Speaker 1: these tenyure warranties. They're like, why why would you buy

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Speaker 1: a Hyundai Instace. You should get yourself a Saturn. That

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Speaker 1: was like the only way they could convince people to

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Speaker 1: buy Hyundai's was this ridiculously incredible warranty and all of

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Speaker 1: a sudden, like overtime, Hyundai Kia, they both just started

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Speaker 1: to turn out better and better cars. Game Now, yeah,

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Speaker 1: they rival with some of the better car manufacturers out there. Yeah,

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Speaker 1: but that being said, they haven't up their game enough

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Speaker 1: to for mind Lust to not have to take that

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Speaker 1: thing back into the dealership multiple times.

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Speaker 2: Now. They've had some issues with the electronics. Things aren't

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Speaker 2: working the way that they're supposed to obviously. But yeah,

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Speaker 2: So this raises the question, then, is it's a good

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Speaker 2: idea to avoid the first model year after a car

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Speaker 2: gets revamped.

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Speaker 1: Basically that's been a baphorism for a long time.

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Speaker 2: Something that you hear, and so I actually dug into

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Speaker 2: the data, dug into the facts, and if you look

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Speaker 2: at that, it actually shows so JD power They've got

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Speaker 2: like a vehicle dependability study, and if you look at

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Speaker 2: the past multiple years, actually the first model year, it

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Speaker 2: doesn't perform any better or any worse when it comes

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Speaker 2: to that particular make and model of the vehicle. Why

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Speaker 2: has that been a thing then for so long? I

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Speaker 2: wonder I think people just back in the day, I

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Speaker 2: think it was more of a thing. But cars today

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Speaker 2: and research kind of points this out. Cars just get

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Speaker 2: tested so thoroughly. I mean they drive it like above

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Speaker 2: twelve thousand feet for so many miles, and they take

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Speaker 2: it to Death Valley and basically they're trying to break

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Speaker 2: the car, and there is substantial testing that there truly

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Speaker 2: shouldn't be anything like that. It doesn't mean that if

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Speaker 2: you were to buy a new car that anecdotally there

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Speaker 2: will be instances where something might go wrong with a vehicle,

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Speaker 2: but generally speaking, that's not necessarily something you should worry about.

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Speaker 2: Don't let that be what keeps you from buying a

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Speaker 2: new vehicle or even when you're.

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Speaker 1: Buying a used vehicle, like going back to be like, oh,

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Speaker 1: well this was the model crossover year twenty thirteen. Maybe

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Speaker 1: I shouldn't go for that, Maybe I should look for

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Speaker 1: a twenty twelve or twenty fourteen instead.

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Speaker 2: Well that doesn't really matter.

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Speaker 1: Really good thing to know. And like you said, you

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Speaker 1: can look back at stuff like JD Power, or you

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Speaker 1: can look at consumer reports. Those reliability rankings are far

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Speaker 1: superior than just kind of the first model year, the

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Speaker 1: truthy non truth sort of way of thinking, kind of

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Speaker 1: the gut reaction or the stories that you hear and

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Speaker 1: actually and you can always especially and you're looking at

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Speaker 1: use vehicles.

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Speaker 2: I think it's the National Highway Institute or whatever, but

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Speaker 2: there's a website where you can go and you can

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Speaker 2: enter in your VEN number and it'll tell you some

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Speaker 2: of the different recalls that are outstanding on that particular vehicle.

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Speaker 2: So we can make sure to link to that in

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Speaker 2: the show notes.

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Speaker 1: Yeah, for this episode. Good resource for sure. Yeah. And

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Speaker 1: by the way, it is always helpful to do a

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Speaker 1: carfax report or to run some sort I think there's

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Speaker 1: actually a free one too. Maybe I'll find that and

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Speaker 1: link to that in the show notes as well. I

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Speaker 1: think there's a free resource where you can kind of

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Speaker 1: find out the vehicle's history, which is just all that's

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Speaker 1: more helpful to know than whether it's the first model

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Speaker 1: year or not, because I don't know what has happened

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Speaker 1: to this specific car over its history. And you know,

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Speaker 1: those are imperfect, but they're still helpful. But Matt, let's

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Speaker 1: totally mention the beer we're having on this episode. This

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Speaker 1: one is called Pyrotechnic Pleasantries. It's by Sour Sellers out

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Speaker 1: of California, out of Rancho Cucamonga, which is just a fun,

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Speaker 1: fun city to say that's not a real city. It

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Speaker 1: truly is that, and I want to visit just so

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Speaker 1: I can say Rancho Cucamonga while i'm there.

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Speaker 2: I love it. But yeah, this is a cho kuka

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Speaker 2: mundo cua manga manga. Yeah, pardon me.

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Speaker 1: This is a beer I picked up when I was

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Speaker 1: in California a couple months ago. And did you you

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Speaker 1: didn't actually go to sourseller? No? No, Actually, the guy

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Speaker 1: at the beer store he recommended it, highly recommended it.

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Speaker 1: So I'm super excited to check this one out today

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Speaker 1: on the show. But let's get on to listener questions.

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Speaker 1: And if you have a question you want to Matt

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Speaker 1: and I to tackle on an upcoming episode, just go

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Speaker 1: to howdomoney dot com slash ask. You'll find the simple

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Speaker 1: instructions there so you can record a voice memo send

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Speaker 1: it our way hopefully we can take it in a

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Speaker 1: couple of weeks on the show. But Matt, let's get

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Speaker 1: to our first question of this episode. This one is

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Speaker 1: about whether or not I'm diagnosably insane.

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Speaker 3: Hey there, this is Keith from the Organ Coast again

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Speaker 3: and I've got a question for you, Joel about how

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Speaker 3: your relationship to money might have changed since your wife

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Speaker 3: has started going to counseling school. My girlfriend is in

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Speaker 3: counseling school, and it's sort of brought out a lot

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Speaker 3: of questions about my relationship to money and insecurities I

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Speaker 3: have around money, Why that came about, and her diagnosing

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Speaker 3: me with lots of psychological issues related to money, and yeah,

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Speaker 3: I'm just curious if you've had the same experience, if

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Speaker 3: it's been a net positive for you, let me know

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Speaker 3: your thoughts.

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Speaker 1: I think this is the first time we've had a

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Speaker 1: question directed at a specific host. So Joel, shall you

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Speaker 1: take this away? My palms are sweating. Actually, I'm just

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Speaker 1: going to kick back this one. Let's move on to

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Speaker 1: are you feeling a little nervous? Keith? Why did you

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Speaker 1: do this to me?

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Speaker 2: You're on the hot seat. Yeah, I'm feeling the pressure

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Speaker 2: a little bit right now. So I'll answer for Joel,

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Speaker 2: which is always what you want to hear. Yeah, when

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Speaker 2: someone asks you a question about nature, it hasn't changed

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Speaker 2: your relationship to money, but it's completely changed your relationship

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Speaker 2: to your wife. You two aren't saying out to I anymore,

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Speaker 2: right exactly?

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Speaker 1: Yes, No, she hasn't diagnosed me with anything formally, because

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Speaker 1: I want to allow her because she's not actually a licensed

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Speaker 1: professional at this point. She's just in school. Okay, No,

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Speaker 1: I'm kidding, But this is actually a really good question,

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Speaker 1: and it's it's fascinating that Keith is going through the

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Speaker 1: same thing I'm going through to a certain extent, and

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Speaker 1: it's helpful to hear that I'm not alone, I guess.

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Speaker 1: And yeah, and she's she's really kind of halfway through

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Speaker 1: her education and she's learned a lot, and I'm like,

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Speaker 1: it's honestly, her going to the school to become a

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Speaker 1: licensed therapist, she's going to become a marriage and family therapist.

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Speaker 1: Has been really good for our relationship and although not

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Speaker 1: always easy, as Keith has figured out, it's definitely opened

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Speaker 1: up a can of worms at some at different points,

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Speaker 1: different fun, interesting conversations and also difficult conversations, but overall

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Speaker 1: a net positive. And I would say it's been good

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Speaker 1: for me, it's been good for us. It's been good

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Speaker 1: for our kids in a lot of ways. To see

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Speaker 1: her dedication, to see her excel at something that's just

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Speaker 1: really demanding. So yeah, I don't know. I think it's

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Speaker 1: also fun to watch because it just very much feels

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Speaker 1: like she was born to do this, which it's so

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Speaker 1: fun for me to get to support her in that.

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Speaker 2: And she's like at the top of her class right

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Speaker 2: like literally she is maybe completely not only getting a's,

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Speaker 2: but she's like acing tests. She was sharing that with

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Speaker 2: Kate and the other night at dinner.

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Speaker 1: And I was like, holy crap, you're you're gonna be

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Speaker 1: really good at this.

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Speaker 2: And I'm sure not just from a textbook standpoint, but

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Speaker 2: so much of like the testing involves actual, like the

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Speaker 2: kind of counseling work.

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Speaker 1: It's not just like Scantron's. Yeah, it's not rote memorization

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Speaker 1: right now, like one of the classes she's taking this semester,

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Speaker 1: it's it's literally people pairing off and diagnosing each other

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Speaker 1: with stuff essentially and working through issues. So it's like

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Speaker 1: doing the practice of being a therapist. So why don't

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Speaker 1: they do that with like heart surgery, And that's a

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Speaker 1: good question. Yeah, you are, Mike a lot of cadavers.

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Speaker 1: You two go off cadavers, that's true, Well, not on

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Speaker 1: each other. That it's not like if you and I

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Speaker 1: were going to med school that we operate on each

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Speaker 1: reason for that, although when we were in Edinburgh recently

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Speaker 1: we learned some interesting stuff about cadavers. Do you remember

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Speaker 1: that with people were digging up bodies in order to

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Speaker 1: sell them to the school in Edinburgh, and that's why

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Speaker 1: they've got those greats over over the over the g

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Speaker 1: plats or whatever. Yeah, exactly, all right, so crazy stuff.

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Speaker 1: Let's continue talking about this for just a second. I

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Speaker 1: will say that I've grown a lot as Emily's been

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Speaker 1: in grad school, like and that I've done more self examination.

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Speaker 1: And I do think that an unexamined life is kind

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Speaker 1: of boring. That you have to kind of do some

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Speaker 1: of this work in order to grow as a person.

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Speaker 1: So she's helped me do that, to help help me

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Speaker 1: unearth different things over the past couple of years, which,

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Speaker 1: like I said, has been kind of a mixture of

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Speaker 1: like fun, hard and enlightening and and it's not always

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Speaker 1: easy to do that hard work, but I think it's valuable.

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Speaker 1: I think, uh, leaving those stones unturned isn't helping anybody,

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Speaker 1: and not recognizing maybe some of those patterns that lead

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Speaker 1: you to a certain place sure isn't healthy. So yeah,

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Speaker 1: growth as an individual, growth as a couple. But when

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Speaker 1: it comes to specifically like money issues, I don't know

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Speaker 1: I think I had actually done a lot of the

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Speaker 1: hard work on that already. I think there are other

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Speaker 1: things that we've probably unearthed more than the issues that

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Speaker 1: I have with money, because honestly, if you've been listening

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Speaker 1: to this podcast for a number of years, you probably

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Speaker 1: heard our philosophy shift, morph and change and grow and

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Speaker 1: hopefully become a little bit freer in some ways. I think,

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Speaker 1: Matt like, we've talked about my journey with frugality and

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Speaker 1: extreme frugality at times, and I think I've grown a

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Speaker 1: lot in that way. I think a lot of what

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Speaker 1: I experienced as in childhood and my parents' relationship with

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Speaker 1: money and to each other about money was difficult and informative,

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Speaker 1: but I've also had to grow past that because I

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Speaker 1: think I had more like a too too secure of

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Speaker 1: an attachment to money, or too insecure of an attachment

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Speaker 1: to money, I guess, And so I've developed been able

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Speaker 1: to kind of work through. I think some of those

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Speaker 1: issues slowly, but surely it's not something that you do

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Speaker 1: over night snap of a finger or anything like that.

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Speaker 1: Sure's I think some of the conversations Emily and I've

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Speaker 1: had have you know, not necessarily any diagnosis I knew

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Speaker 1: I was weird, and I knew that impacted me, but

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Speaker 1: definitely has helped me work through some of those things

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Speaker 1: even more.

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Speaker 2: Yeah, well, I like what you said about working through

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Speaker 2: it too, because I think it is like, yes, it

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Speaker 2: is important to do the work right and to dig

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Speaker 2: in and phrase right, figure out what Yeah, figure out

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Speaker 2: what it is that has impacted you. But simultaneously, I

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Speaker 2: think it's important to make sure that you're not completely

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Speaker 2: living in the past. You are not necessarily like yeah,

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Speaker 2: you shouldn't be defined by your previous actions. What are

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Speaker 2: you doing today? What are you going to do in

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Speaker 2: the future as you're moving forward? And this isn't to

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Speaker 2: say bear your past ignore those feelings, like no, it

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Speaker 2: is worth shove it deep down. It is worth paying

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Speaker 2: attention to that and seeing truly how it has impacted

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Speaker 2: specifically how it has impacted how you view things I

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Speaker 2: guess in the past. But then to take that information

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Speaker 2: and then move forward. Like we've all seen folks who

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Speaker 2: they just have certain hang ups, different things that have

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Speaker 2: happened to them in their lives and they just can't

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Speaker 2: seem to get past that, and it tends to come

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Speaker 2: up in conversations as like an excuse for why they're

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Speaker 2: choosing to not move forward. And I think that eliminates

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Speaker 2: a whole lot of agency that we have as individuals

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Speaker 2: to make the best of what it is that we've

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Speaker 2: learned from those hard, very hard and painful at times experiences.

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Speaker 1: Yeah, but I think we lose some of our agency

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Speaker 1: if we don't do the work of seeing where we've

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Speaker 1: come from and how it's influenced us.

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Speaker 2: So you're just flying blind all this. You don't understand

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Speaker 2: how it was that this, how the plane was put

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Speaker 2: together that you're flying.

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Speaker 1: You know, Oh, yeah, you're treating symptoms instead of the

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Speaker 1: root problem, right for the root cost and so sometimes

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Speaker 1: you got you really do have to go back and

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Speaker 1: look at some of that stuff. And it makes me

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Speaker 1: think about how we talk about money here on the show.

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Speaker 1: Numbers in math are obviously important when we talk about money,

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Speaker 1: but even that is not as important as our own

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Speaker 1: psychology kind of what we're bringing to the table. Money behaviors,

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Speaker 1: ingrained money behaviors, ingrained ways of relating to and thinking

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Speaker 1: about money that have really been instilled in us over

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Speaker 1: the course of a few decades. And so it's one

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Speaker 1: of the like it does of course, take time to

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Speaker 1: overcome some of those hang ups that we have with

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Speaker 1: money and really to even kind of put a finger

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Speaker 1: on how we got there. So I think that's why

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Speaker 1: we try to talk about the psychological side of things.

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Speaker 1: We try to bring on financial therapists something like that.

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Speaker 1: I mean, we really do want people to the whole

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Speaker 1: gamut of a healthy approach to money. We want people

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Speaker 1: to consider that, not just know the maximount you're allowed

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Speaker 1: to contribute to a roth Ira this year and the

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Speaker 1: mechanics of doing it.

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Speaker 2: Like, not just about the mechanics. Yeah, absolutely, Yeah, if

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Speaker 2: we were just a bunch of automatons, then what's the

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Speaker 2: point of even like having a podcast, because well, here

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Speaker 2: is on a single sheet everything you need to know.

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Speaker 2: Follow these steps, and you will be wealthy right by

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Speaker 2: the time you hit fifty years old.

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Speaker 1: And there's some of that, right. Some people need to

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Speaker 1: you need to know about compounding, You need to be

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Speaker 1: kind of have your imagination open to how it works

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Speaker 1: and what it can produce. But that's why the behavioral

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Speaker 1: element is so crucial, so crucial to understanding. So I guess, yeah,

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Speaker 1: I don't know. I guess over time I realized that

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Speaker 1: money was like a security blanket for me, and that

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Speaker 1: it was unhealthy and I had to kind of work

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Speaker 1: through that. I will also say it's something that I

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Speaker 1: continue to wrestle with and I continue to think about

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Speaker 1: it like that because those experiences from childhood still loom large.

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Speaker 1: And so, yeah, I still worry and I have to

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Speaker 1: run like worst case scenario things in my head, realizing

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Speaker 1: that well, the worst case scenario really isn't as bad,

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Speaker 1: and sometimes it's just catastrophizing in my own brain and

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Speaker 1: it's like, well, really, come on, that's unlikely to happen,

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Speaker 1: and even if it did, we'd still be okay.

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Speaker 2: Still be okay. Well, and I mean this is a

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Speaker 2: part of why we have the podcast. We are saying

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Speaker 2: these things not because we don't know them, but because

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Speaker 2: we forget them. We have you know, when it leaders

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Speaker 2: talk about Mission leak, right and how you kind of

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Speaker 2: lose sight of what it is you're striving after the

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Speaker 2: same thing happens when it comes to some of these

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Speaker 2: different personal finance tenets that we need to make sure

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Speaker 2: that we're living.

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Speaker 1: By as well.

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Speaker 2: But okay, so one other things you said too is

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Speaker 2: that it takes time, which I completely agree like it's

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Speaker 2: something that you know, it's something that you need to

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Speaker 2: work on over time. You're not just like healed, right, Like, yeah,

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Speaker 2: you can't just snap your finger, snap your fingers. But okay,

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Speaker 2: so my brain's kind of go in multiple directions here.

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Speaker 2: I think a takeaway maybe for a lot of folks

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Speaker 2: out here who unlike Keith and yourself who you know,

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Speaker 2: you both have girlfriends or wives that are going through

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Speaker 2: who are becoming counselors. But there's a lot of folks

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Speaker 2: out there who don't have that. Yeah, but I still

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Speaker 2: think and this I'm not saying that these are the

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Speaker 2: same thing, but when it comes to talking about money

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Speaker 2: with your partner, I think you can do a lot

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Speaker 2: of some of this work with your partner by just

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Speaker 2: being very intentional about some of the conversations that you

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Speaker 2: have and specifically just carving out time on your calendar

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Speaker 2: to have some of these deeper conversations, which do take time.

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Speaker 2: Its relationship, right, and relationships are messy and they're not efficient,

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Speaker 2: but that's oftentimes how you're able to draw out a

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Speaker 2: deeper fear or a bigger goal out of a life

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Speaker 2: partner that maybe you didn't even realize that they had,

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Speaker 2: or maybe you'd heard them mention it before, but you're

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Speaker 2: now realizing for the first time after talking about this

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Speaker 2: and that they're serious in this way a second that

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Speaker 2: makes you tick. Yeah, yeah, exactly, And so I don't know,

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Speaker 2: I just wanted to mention that because I know we

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Speaker 2: can be awkward sometimes to talk about some of these

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Speaker 2: It's like, oh man, we've never talked about money this way.

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Speaker 2: This is this is brand new, and it's going to

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Speaker 2: feel real clumsy. But I think it's really important to

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Speaker 2: have some of these conversations, especially when you're when you're

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Speaker 2: trying to get a partner on board financially.

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Speaker 1: Yeah. All right, One last thing I want to say

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Speaker 1: too on this one. And I'm not sure if I'm

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Speaker 1: reading into this or not Keith, but it sounded like

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Speaker 1: maybe you were like somewhat slightly just annoyed at maybe

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Speaker 1: the diagnoses that your girlfriend is like bringing down on

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Speaker 1: your head or.

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Speaker 2: Maybe taking aback a little bit by like oh man,

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Speaker 2: which I didn't know I had all this going on.

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Speaker 1: He's totally understandable. And I will say, like, I am

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Speaker 1: kind of one of those people who's like instantly defensive

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Speaker 1: at times, and I don't want to Necessarizy. I don't

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Speaker 1: want to be told who I am, what I like.

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Speaker 1: Don't reveal that about me, like cause it hurts or

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Speaker 1: it's or it's just a tough thing to hear. And

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Speaker 1: sometimes I would rather just like close my ears and

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Speaker 1: go lah la la la la la and not hear it.

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Speaker 1: And but it's it's important too. As much as you

403
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Speaker 1: can kind of lean into those conversations because I think

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Speaker 1: they're good for you, they're good for her and she

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Speaker 1: to be able for her to be able to share

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Speaker 1: that with you, and you to be able to have

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Speaker 1: those conversations with her, I think it's going to be

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Speaker 1: mutually beneficial if you enter into those conversations with like

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Speaker 1: a willingness to learn and a willingness to grow. Again,

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Speaker 1: easier says said than done. But the more you can,

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Speaker 1: the more you can do that, I think the better

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Speaker 1: it's going to be for both of Yeah, totally.

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Speaker 2: Yeah, And Keith, you are not alone. I think for

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Speaker 2: those who are like I never have to deal with that.

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Speaker 2: I think a lot of those folks just haven't spent

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Speaker 2: the time, they haven't been left alone with their thoughts,

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Speaker 2: or they haven't worked through it with a partner before.

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Speaker 2: I think there's a lot more folks out there that

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Speaker 2: do have issues when it comes to money and how

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Speaker 2: much individuals are relying on that money to feel a

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Speaker 2: sense of security.

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Speaker 1: And it's just one of those more socially acceptable ways

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Speaker 1: of being insecure in this world.

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Speaker 2: Right.

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Speaker 1: It's like you.

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Speaker 2: Dress it up as like success or ambition.

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Speaker 1: Or workaholism is another one of those things where it's like, oh,

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Speaker 1: look at that person, they get stuff done, but really, yeah,

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Speaker 1: it doesn't look the same and it's not nearly as

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Speaker 1: devastating in some ways as a drug addiction or something else,

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Speaker 1: but it's still just very much comes from the same

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Speaker 1: root source.

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Speaker 2: Totally.

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Speaker 1: Yep, Keith, best of bluck to youse. You guys continue

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Speaker 1: to have these conversations. We've got more questions to get

436
00:18:59,080 --> 00:19:02,960
Speaker 1: to on this episode, less personal in nature, hopefully, but

437
00:19:03,040 --> 00:19:05,520
Speaker 1: we are going to specifically gonna kind of zero in

438
00:19:05,560 --> 00:19:09,040
Speaker 1: on one listener and his holistic financial situation. Will get

439
00:19:09,040 --> 00:19:10,440
Speaker 1: to that and more right after this.

440
00:19:20,000 --> 00:19:21,600
Speaker 2: All right, Jill, we are back from the break and

441
00:19:21,640 --> 00:19:24,000
Speaker 2: we will get to that listener question from the guy

442
00:19:24,080 --> 00:19:26,000
Speaker 2: who wants us to take a look behind the curtain

443
00:19:26,400 --> 00:19:30,199
Speaker 2: of all of his finance like everything he owns. Honestly,

444
00:19:30,200 --> 00:19:32,879
Speaker 2: I feel like he's he's more typical. I know, it's

445
00:19:32,880 --> 00:19:34,600
Speaker 2: sort of like Keith's question. I feel like a lot

446
00:19:34,640 --> 00:19:37,480
Speaker 2: of times we think that we're alone in our situations,

447
00:19:37,640 --> 00:19:41,280
Speaker 2: are just just so weird and dysfunctional or whatever it is.

448
00:19:41,359 --> 00:19:43,359
Speaker 2: We're all the songs you might you might think, but

449
00:19:43,440 --> 00:19:46,360
Speaker 2: yes we are all. We are all that way, And

450
00:19:46,520 --> 00:19:49,000
Speaker 2: in particular we're talking about Sean. We're gonna get to

451
00:19:49,080 --> 00:19:49,600
Speaker 2: him in a second, but.

452
00:19:49,600 --> 00:19:51,600
Speaker 1: I'm just trying to function dysfunction mat.

453
00:19:51,600 --> 00:19:54,800
Speaker 2: His his financial situation is. I think it's more typical

454
00:19:55,040 --> 00:19:57,560
Speaker 2: than he would actually think it is. But we'll get

455
00:19:57,560 --> 00:19:59,080
Speaker 2: to him here in a second. But first let's hear

456
00:19:59,119 --> 00:20:02,560
Speaker 2: from a listener who's asking about a crazy housing market.

457
00:20:03,080 --> 00:20:05,760
Speaker 4: Hey, Matt and Joel Steve from Boston. Long time, first time.

458
00:20:06,440 --> 00:20:09,080
Speaker 4: Your recent podcast on home ownership got me thinking about

459
00:20:09,080 --> 00:20:11,119
Speaker 4: my own goals of owning a home one day. But

460
00:20:11,160 --> 00:20:14,119
Speaker 4: as someone in my late twenties, especially in my local market,

461
00:20:14,400 --> 00:20:16,760
Speaker 4: it seems like home ownership is a long ways away,

462
00:20:17,359 --> 00:20:20,240
Speaker 4: and there might be some truth to that. In your podcast,

463
00:20:20,320 --> 00:20:23,280
Speaker 4: you shared a stat that over the past thirty years,

464
00:20:23,320 --> 00:20:26,560
Speaker 4: the average growth rate of real estate was five point

465
00:20:26,640 --> 00:20:29,640
Speaker 4: three percent. Well, I did some of my own research

466
00:20:29,720 --> 00:20:31,840
Speaker 4: and I found that over the same period of time,

467
00:20:32,040 --> 00:20:36,240
Speaker 4: the average wage growth rate was three point thirty nine percent.

468
00:20:37,040 --> 00:20:41,200
Speaker 4: To me, this comparison doesn't seem sustainable for younger generations

469
00:20:41,200 --> 00:20:43,160
Speaker 4: to buy homes at the same point of life as

470
00:20:43,240 --> 00:20:46,120
Speaker 4: their parents or grandparents. But I want to get your

471
00:20:46,119 --> 00:20:49,479
Speaker 4: take on it. Is this concerning to you too, especially

472
00:20:49,560 --> 00:20:52,720
Speaker 4: since we know the power of compounding returns, But in

473
00:20:52,760 --> 00:20:55,720
Speaker 4: this case, compounding returns doesn't work in our favor.

474
00:20:56,040 --> 00:21:00,200
Speaker 1: Thanks aw Matt. Let's take a macro question here, put

475
00:21:00,240 --> 00:21:01,760
Speaker 1: on our point to economy.

476
00:21:01,600 --> 00:21:03,120
Speaker 2: Wages versus housing.

477
00:21:03,280 --> 00:21:05,880
Speaker 1: Yeah, so usually values, Usually we're more in the micro

478
00:21:05,960 --> 00:21:08,320
Speaker 1: personal finance space. But I think this is really interesting

479
00:21:08,320 --> 00:21:11,399
Speaker 1: because I think the macro often impacts the micro. Right,

480
00:21:11,400 --> 00:21:13,520
Speaker 1: We talk about that on the show. So we'll do

481
00:21:13,520 --> 00:21:15,640
Speaker 1: our best here to answer this one, Steve. And it

482
00:21:15,680 --> 00:21:19,000
Speaker 1: is true that living in a market like Boston, yes,

483
00:21:19,080 --> 00:21:21,760
Speaker 1: it's going to be more difficult to become a homeowner

484
00:21:21,760 --> 00:21:23,960
Speaker 1: there than it would be in Let's say, I don't

485
00:21:24,000 --> 00:21:27,639
Speaker 1: know Mississippi or parts of Ohio, right that they're just

486
00:21:27,760 --> 00:21:29,399
Speaker 1: there are a lot of cheaper places in the country

487
00:21:29,400 --> 00:21:31,439
Speaker 1: to buy a house than Boston, depends on where you're

488
00:21:31,440 --> 00:21:34,840
Speaker 1: at in Boston as well. Right, sure, yeah, real estate

489
00:21:34,880 --> 00:21:37,600
Speaker 1: markets are hyper local. But as we said in that episode,

490
00:21:37,600 --> 00:21:41,400
Speaker 1: you're referring to that specific market matters even inside of

491
00:21:41,440 --> 00:21:44,399
Speaker 1: a city, even specific locations within that city, or sometimes

492
00:21:44,440 --> 00:21:47,560
Speaker 1: it's even street to street like that's how real estate functions,

493
00:21:47,560 --> 00:21:51,280
Speaker 1: that's how it works. There's just thousands of markets really

494
00:21:51,520 --> 00:21:54,920
Speaker 1: across the country, not just a handful, which is surprising,

495
00:21:54,920 --> 00:21:57,080
Speaker 1: I think to a lot of people. It is obviously

496
00:21:57,160 --> 00:22:00,119
Speaker 1: hyper local. And here's the thing though, the longer you

497
00:22:00,160 --> 00:22:02,200
Speaker 1: own a home, no matter where you end up buying,

498
00:22:02,400 --> 00:22:04,600
Speaker 1: the more likely it is to be a solid financial

499
00:22:04,600 --> 00:22:07,000
Speaker 1: move as well. Time is really key on the home

500
00:22:07,080 --> 00:22:10,200
Speaker 1: lining front. That's something we maybe didn't we talked about

501
00:22:10,200 --> 00:22:12,480
Speaker 1: we touched on on that episode, but that is one

502
00:22:12,520 --> 00:22:15,439
Speaker 1: way in which buyers can be helped over time. As

503
00:22:15,520 --> 00:22:18,480
Speaker 1: rents continue to increase, if you've locked in, in particular

504
00:22:18,520 --> 00:22:19,960
Speaker 1: a lot of those folks who locked in low rates

505
00:22:19,960 --> 00:22:23,240
Speaker 1: on thirty year mortgages, it is a hedge against inflation.

506
00:22:23,320 --> 00:22:26,000
Speaker 1: But you're right, at the same time, home prices continue

507
00:22:26,040 --> 00:22:29,000
Speaker 1: to outpace wage growth. So Matt, what do you think

508
00:22:29,680 --> 00:22:31,240
Speaker 1: how do we tackle that as individuals?

509
00:22:31,359 --> 00:22:33,840
Speaker 2: Well, I think that's the key point, is what can

510
00:22:33,840 --> 00:22:35,800
Speaker 2: we do as individuals, because obviously there's nothing that we

511
00:22:35,840 --> 00:22:38,840
Speaker 2: can do from a macro level, but as individuals we

512
00:22:38,880 --> 00:22:40,879
Speaker 2: have a lot of control over our lives. But I

513
00:22:40,920 --> 00:22:43,439
Speaker 2: think maybe the best way to discuss this might be

514
00:22:43,520 --> 00:22:47,080
Speaker 2: to give an example, so Toronto. It turns out that

515
00:22:47,359 --> 00:22:50,840
Speaker 2: unsustainable housing prices can be sustained for quite a long time.

516
00:22:51,280 --> 00:22:55,399
Speaker 2: Home prices in Toronto they have kadrupled in just about

517
00:22:55,520 --> 00:22:58,560
Speaker 2: fifteen years or so, but only in the past year

518
00:22:58,880 --> 00:23:02,920
Speaker 2: have prices started to correct, and they're actually plunging pretty rapidly.

519
00:23:03,480 --> 00:23:05,720
Speaker 2: We don't know exactly how far it will be that

520
00:23:06,359 --> 00:23:08,480
Speaker 2: they'll fall. But what I'm pointing out here is the

521
00:23:08,520 --> 00:23:11,920
Speaker 2: fact that markets go through cycles, and it is difficult

522
00:23:11,920 --> 00:23:15,119
Speaker 2: to predict when those cycles will occur, how it is

523
00:23:15,160 --> 00:23:19,159
Speaker 2: that they will evolve. But at some point, any sane

524
00:23:19,160 --> 00:23:22,680
Speaker 2: individual is going to opt to rent in an environment

525
00:23:22,800 --> 00:23:26,320
Speaker 2: like Toronto's when it's vastly more affordable and when it

526
00:23:26,400 --> 00:23:30,359
Speaker 2: just becomes financially impossible to buy. The thing is that

527
00:23:30,760 --> 00:23:33,800
Speaker 2: all those micro decisions eventually does have an impact on

528
00:23:33,840 --> 00:23:36,320
Speaker 2: the macro because when enough people do that. When enough

529
00:23:36,359 --> 00:23:41,119
Speaker 2: people choose to rent, over time, prices do start to correct. Essentially,

530
00:23:41,160 --> 00:23:44,000
Speaker 2: it's just supply and demand. And with housing in particular,

531
00:23:44,359 --> 00:23:47,240
Speaker 2: like housing it's a freight train. It's this massive industry,

532
00:23:47,880 --> 00:23:50,239
Speaker 2: and it takes a long time for things to slow down.

533
00:23:50,320 --> 00:23:51,800
Speaker 2: It takes a long time for things to ramp up,

534
00:23:51,840 --> 00:23:54,880
Speaker 2: in particular when it comes to new developments. And we've

535
00:23:54,880 --> 00:23:58,800
Speaker 2: seen it depends on who, like what research you're citing,

536
00:23:58,800 --> 00:24:01,879
Speaker 2: but I think there's something like seven million. We have

537
00:24:01,920 --> 00:24:04,399
Speaker 2: a shortage of something like seven million homes here in

538
00:24:04,440 --> 00:24:07,320
Speaker 2: the US, And it depends on the statute read, depends

539
00:24:07,359 --> 00:24:09,480
Speaker 2: on someone's say four mil. Some would say yeah, whatever,

540
00:24:09,520 --> 00:24:11,760
Speaker 2: But but bottom line, like, there is a shortage. And

541
00:24:11,840 --> 00:24:14,080
Speaker 2: since the Great Recession, like that knocked out a lot

542
00:24:14,080 --> 00:24:17,800
Speaker 2: of homebuilders and we didn't see that rebound right after that,

543
00:24:17,840 --> 00:24:20,639
Speaker 2: and so we've been underproducing as a country, we've been

544
00:24:20,800 --> 00:24:24,639
Speaker 2: underproducing homes and there just is a shortage. And so eventually,

545
00:24:24,680 --> 00:24:28,720
Speaker 2: as money continues to flow into housing in the industries

546
00:24:28,760 --> 00:24:31,600
Speaker 2: that support it, it will correct. But again we're not

547
00:24:31,640 --> 00:24:32,600
Speaker 2: totally sure when well.

548
00:24:32,640 --> 00:24:34,040
Speaker 1: And like we said in that episode, one of the

549
00:24:34,080 --> 00:24:37,040
Speaker 1: things you have to consider along that big long timeline

550
00:24:37,040 --> 00:24:39,160
Speaker 1: of how wages haven't kept up with home price growth, Well,

551
00:24:39,160 --> 00:24:41,840
Speaker 1: homes have changed over that period of time. Homes have

552
00:24:41,880 --> 00:24:45,040
Speaker 1: gotten bigger home price growth. Of course it's going to

553
00:24:45,080 --> 00:24:49,800
Speaker 1: outpace wage growth because it's not just inflation. They're fancier products, yes, right, yep.

554
00:24:49,880 --> 00:24:52,040
Speaker 1: And at the same time, COVID changed what a lot

555
00:24:52,080 --> 00:24:55,679
Speaker 1: of people wanted in a home, and so especially with

556
00:24:55,720 --> 00:24:58,159
Speaker 1: work from home, that has really I think that is

557
00:24:58,760 --> 00:25:01,439
Speaker 1: people have a lot of Americans have placed more of

558
00:25:01,440 --> 00:25:04,160
Speaker 1: a premium on their home, willing to fork over more

559
00:25:04,280 --> 00:25:07,240
Speaker 1: of their take home pay to pay for lodging because

560
00:25:07,320 --> 00:25:08,840
Speaker 1: now it works as office space.

561
00:25:08,640 --> 00:25:10,880
Speaker 2: Too, right, So it's been a shift in priorities as

562
00:25:10,920 --> 00:25:13,040
Speaker 2: to what it is that we're spending our money on exactly. Yeah,

563
00:25:13,080 --> 00:25:14,879
Speaker 2: So what should people do about this like a housing

564
00:25:14,920 --> 00:25:17,920
Speaker 2: market that yes, it's more expensive than ever to buy

565
00:25:17,960 --> 00:25:20,360
Speaker 2: a home and it's going to take more of your

566
00:25:20,800 --> 00:25:23,760
Speaker 2: higher percentage of your income. Well, one the first thing

567
00:25:23,800 --> 00:25:25,439
Speaker 2: you could do, I think is cry. You could just

568
00:25:25,520 --> 00:25:27,919
Speaker 2: be devastated. And I get that.

569
00:25:28,280 --> 00:25:32,159
Speaker 1: I get that impulse because it is it's disappointing for

570
00:25:32,480 --> 00:25:34,159
Speaker 1: if you want to buy a home and you're like,

571
00:25:34,240 --> 00:25:36,760
Speaker 1: this has become prohibitively expensive. I don't know how long

572
00:25:36,800 --> 00:25:37,960
Speaker 1: it's going to take for me to be able to

573
00:25:38,040 --> 00:25:38,439
Speaker 1: afford it.

574
00:25:38,560 --> 00:25:40,760
Speaker 2: Yeah, and we're kind of joking, but we're also kind

575
00:25:40,760 --> 00:25:43,560
Speaker 2: of not joking, like like truly, I think it's worth

576
00:25:43,840 --> 00:25:46,800
Speaker 2: like mourning the fact that, dang it, the market does

577
00:25:46,920 --> 00:25:49,280
Speaker 2: truly look a lot different than it used to. It's

578
00:25:49,320 --> 00:25:51,439
Speaker 2: okay to face the it's sort of like going back to.

579
00:25:51,560 --> 00:25:52,679
Speaker 1: Its require some patience.

580
00:25:53,040 --> 00:25:56,960
Speaker 2: Yeah, Keith's question, like, recognize that this is the facts

581
00:25:57,000 --> 00:26:00,000
Speaker 2: on the ground, but also don't let that this large

582
00:26:00,080 --> 00:26:03,560
Speaker 2: your macro trend perhaps be a distraction as to what

583
00:26:03,600 --> 00:26:05,160
Speaker 2: it is that you can do as an individual.

584
00:26:05,200 --> 00:26:07,240
Speaker 1: Yeah, and you can say, listen, I really want to

585
00:26:07,240 --> 00:26:08,680
Speaker 1: buy a house, and you can force it, but you

586
00:26:08,720 --> 00:26:10,840
Speaker 1: wouldn't want to do that at the expense of making

587
00:26:10,920 --> 00:26:13,119
Speaker 1: a decision that's not in your best financial erst. So

588
00:26:13,240 --> 00:26:17,320
Speaker 1: let's get maybe some more helpful suggestion that cry. And also,

589
00:26:17,440 --> 00:26:20,159
Speaker 1: you know, knowing that wage increases on average won't keep

590
00:26:20,280 --> 00:26:23,800
Speaker 1: up with home price growth, it's important for you as

591
00:26:23,840 --> 00:26:26,000
Speaker 1: an individual to find ways to grow your income at

592
00:26:26,000 --> 00:26:28,359
Speaker 1: a faster clip. So you know, whether that's moving up

593
00:26:28,359 --> 00:26:30,680
Speaker 1: the ladder at your current job, going down the street

594
00:26:30,720 --> 00:26:32,600
Speaker 1: for a sweet pay bump that's going to help you

595
00:26:32,600 --> 00:26:35,439
Speaker 1: stock away more money for that down payment. And another

596
00:26:35,560 --> 00:26:38,000
Speaker 1: important move money move you need to make if you

597
00:26:38,040 --> 00:26:40,240
Speaker 1: want to buy a house at some point is to

598
00:26:40,280 --> 00:26:42,480
Speaker 1: be an investor, because you know, if you're still a

599
00:26:42,480 --> 00:26:44,800
Speaker 1: ways out from being able to purchase a home, from

600
00:26:44,800 --> 00:26:47,280
Speaker 1: being in the market, it could make sense to invest

601
00:26:47,280 --> 00:26:50,000
Speaker 1: some of those dollars in an effort to outpace home

602
00:26:50,000 --> 00:26:53,119
Speaker 1: price escalation with you know, stock market returns from the

603
00:26:53,160 --> 00:26:55,119
Speaker 1: money that you're able to stock away. So I think

604
00:26:55,160 --> 00:26:57,520
Speaker 1: those are a couple of things to consider. It's like, hey,

605
00:26:57,560 --> 00:26:59,720
Speaker 1: grow your income, find ways to grow the money that

606
00:26:59,720 --> 00:27:02,359
Speaker 1: you're bringing in so that home, you know, buying that

607
00:27:02,480 --> 00:27:06,080
Speaker 1: home becomes more of reality. And hopefully if the market

608
00:27:06,080 --> 00:27:08,720
Speaker 1: stalls out, which it's doing in lots of the country

609
00:27:08,760 --> 00:27:11,280
Speaker 1: we are seeing home price corrections in a whole lot

610
00:27:11,280 --> 00:27:15,440
Speaker 1: of places, well then you have the opportunity, the ability

611
00:27:15,560 --> 00:27:18,280
Speaker 1: to pounce because you've been paying attention to your finances

612
00:27:18,320 --> 00:27:20,000
Speaker 1: for years leading up to that point.

613
00:27:20,080 --> 00:27:21,919
Speaker 2: That's right, but we don't necessarily know that that's going

614
00:27:22,000 --> 00:27:25,800
Speaker 2: to happen specifically there in Boston as well. What will

615
00:27:25,840 --> 00:27:28,360
Speaker 2: actually happen with us home prices moving forward. I think

616
00:27:28,400 --> 00:27:30,680
Speaker 2: that's going to be I mean, that's anyone's guess, because

617
00:27:30,760 --> 00:27:33,560
Speaker 2: it is just again, such a complex market. And the

618
00:27:33,600 --> 00:27:36,119
Speaker 2: truth is that there are thousands of many little markets

619
00:27:36,160 --> 00:27:39,359
Speaker 2: around the country, and prices are declining in some of

620
00:27:39,359 --> 00:27:43,680
Speaker 2: those markets and they continue to rise in others. But again,

621
00:27:43,720 --> 00:27:47,040
Speaker 2: that lack of supply is keeping prices higher than many

622
00:27:47,040 --> 00:27:50,120
Speaker 2: folks have predicted. But then interest rates, they factor into

623
00:27:50,160 --> 00:27:52,719
Speaker 2: the price of homes more than they impact any other

624
00:27:52,760 --> 00:27:55,920
Speaker 2: purchase these days. But even as it's become more difficult

625
00:27:55,960 --> 00:27:58,359
Speaker 2: to afford a home and a lot of the country,

626
00:27:58,480 --> 00:28:01,879
Speaker 2: we just don't see signs of Toronto esque bubble from

627
00:28:01,920 --> 00:28:04,520
Speaker 2: what it is that we read and see, primarily due

628
00:28:04,520 --> 00:28:07,520
Speaker 2: to the supply and demand that we're seeing. A price

629
00:28:07,600 --> 00:28:11,440
Speaker 2: plateau could certainly happen given the factors, the more recent

630
00:28:11,480 --> 00:28:13,919
Speaker 2: factors that we've seen in the past twelve eighteen months,

631
00:28:14,160 --> 00:28:17,359
Speaker 2: but ultimately, markets go through cycles and shifts, and no

632
00:28:17,560 --> 00:28:21,040
Speaker 2: market can defy the laws of gravity forever. Another issue too,

633
00:28:21,119 --> 00:28:26,640
Speaker 2: with looking at very large pieces like macro data, looking

634
00:28:26,720 --> 00:28:30,160
Speaker 2: at average wages and average home prices home values too,

635
00:28:30,200 --> 00:28:32,359
Speaker 2: is that you're going to talking about this early on,

636
00:28:32,400 --> 00:28:36,880
Speaker 2: but that ignores the fact that there are certain neighborhoods

637
00:28:36,880 --> 00:28:40,440
Speaker 2: within a city and certain streets within that neighborhood. And

638
00:28:40,480 --> 00:28:43,320
Speaker 2: when you buy a home, you're not buying the quote

639
00:28:43,360 --> 00:28:46,440
Speaker 2: unquote average home like you are buying a specific home.

640
00:28:46,600 --> 00:28:48,520
Speaker 2: It's kind of like the opposite of what we're talking

641
00:28:48,520 --> 00:28:52,719
Speaker 2: about the beginning with new cars and how anecdotally, Yes, unfortunately,

642
00:28:52,760 --> 00:28:54,360
Speaker 2: there might be a time when you have to take

643
00:28:54,360 --> 00:28:55,760
Speaker 2: your car in and get it fixed, even though it's

644
00:28:55,760 --> 00:28:57,920
Speaker 2: brand new. So even though the data points to the

645
00:28:57,920 --> 00:29:00,000
Speaker 2: fact that home values have been rising faster than ways,

646
00:29:00,200 --> 00:29:02,760
Speaker 2: just doesn't mean that you have to buy a home

647
00:29:03,240 --> 00:29:05,360
Speaker 2: that is more expensive than you would like to purchase.

648
00:29:05,400 --> 00:29:07,400
Speaker 1: That's why Kelly Blue Book estimates are so much more

649
00:29:07,440 --> 00:29:11,800
Speaker 1: accurate than zestimates. Sure, like cars are from car to

650
00:29:11,840 --> 00:29:15,000
Speaker 1: Carter car, they don't change really very much, but from

651
00:29:15,000 --> 00:29:16,920
Speaker 1: home to home to home they're pretty consistent. Yeah, but

652
00:29:17,040 --> 00:29:18,640
Speaker 1: those are the opposite of condes.

653
00:29:18,720 --> 00:29:20,720
Speaker 2: Yes, yeah, I mean I don't know. I mean, I

654
00:29:20,760 --> 00:29:23,000
Speaker 2: know Back Bay, that's one neighborhood in Boston because that's

655
00:29:23,000 --> 00:29:24,640
Speaker 2: where Kate and I stayed when we visited there. We

656
00:29:24,640 --> 00:29:27,600
Speaker 2: stayed in airbnb. Is very nice, But I don't know,

657
00:29:27,800 --> 00:29:30,200
Speaker 2: besides that other neighborhood's there in Boston, but like here

658
00:29:30,200 --> 00:29:31,959
Speaker 2: in Atlanta, it makes me think of like the difference

659
00:29:31,960 --> 00:29:36,760
Speaker 2: between some nice Intewl neighborhoods like inmand Park or Buckhead

660
00:29:36,840 --> 00:29:41,320
Speaker 2: or Midtown. Those neighborhoods are so much different than East Point,

661
00:29:41,560 --> 00:29:42,400
Speaker 2: than Capitol View.

662
00:29:42,520 --> 00:29:44,640
Speaker 1: Even those neighborhoods you mentioned are different from one another.

663
00:29:45,120 --> 00:29:48,040
Speaker 2: Yes, absolutely, but generally speaking, I mean you're talking about

664
00:29:48,280 --> 00:29:51,440
Speaker 2: if you're taking the average Atlanta home, it's incorporating all

665
00:29:51,520 --> 00:29:53,520
Speaker 2: of those prices, but that doesn't necessarily mean that you

666
00:29:53,560 --> 00:29:56,120
Speaker 2: are considering living in some of those much much much

667
00:29:56,240 --> 00:29:58,920
Speaker 2: nicer neighborhoods. So just something to keep in mind that

668
00:29:59,360 --> 00:30:01,520
Speaker 2: it's good to see some of these averages, but when

669
00:30:01,560 --> 00:30:04,160
Speaker 2: it comes to purchasing a home, you're not buying the

670
00:30:04,160 --> 00:30:06,360
Speaker 2: average home. You are buying a deal. You're looking for

671
00:30:06,400 --> 00:30:07,800
Speaker 2: a deal, and you're going to buy a specific home

672
00:30:07,840 --> 00:30:08,240
Speaker 2: that's going.

673
00:30:08,160 --> 00:30:10,440
Speaker 1: To work for you. And I think that's we've seen

674
00:30:10,480 --> 00:30:13,520
Speaker 1: a lot of migratory shifts and where people are moving

675
00:30:13,960 --> 00:30:16,960
Speaker 1: and the kind of homes are looking for, and they're

676
00:30:17,120 --> 00:30:20,120
Speaker 1: moving to more suburban and rural areas in order to

677
00:30:20,240 --> 00:30:22,640
Speaker 1: get more house or in order to save more money

678
00:30:22,640 --> 00:30:25,080
Speaker 1: on that purchase, and so sometimes you have to look

679
00:30:25,120 --> 00:30:27,400
Speaker 1: and see where the opportunity is and it might not

680
00:30:27,440 --> 00:30:30,240
Speaker 1: be in the neighborhood you're currently living in. And if

681
00:30:30,280 --> 00:30:33,400
Speaker 1: you really if home ownership trump's location for you or

682
00:30:33,800 --> 00:30:37,040
Speaker 1: those are all things to be taken into consideration as

683
00:30:37,080 --> 00:30:39,600
Speaker 1: you're kind of starting to think about purchasing a home.

684
00:30:39,960 --> 00:30:43,479
Speaker 1: It's a massive difficult purchase to consider, and the market,

685
00:30:43,800 --> 00:30:46,400
Speaker 1: the current market in particular, makes it even more difficult

686
00:30:46,640 --> 00:30:48,560
Speaker 1: for a lot of people. I totally get it. I

687
00:30:48,560 --> 00:30:50,440
Speaker 1: think there are things you can do as an individual

688
00:30:50,520 --> 00:30:53,480
Speaker 1: on all these levels, though, to prepare yourself, including kind

689
00:30:53,480 --> 00:30:58,239
Speaker 1: of preparing financially and hopefully you're able to increase your

690
00:30:58,240 --> 00:31:01,960
Speaker 1: income and increase your returns being savvy with your career

691
00:31:02,360 --> 00:31:04,840
Speaker 1: and with the money that flows into you every paycheck.

692
00:31:04,920 --> 00:31:06,760
Speaker 2: Yeah, the ability to make those right decisions and have

693
00:31:06,800 --> 00:31:09,080
Speaker 2: the money on hand to pounce when you see that deal.

694
00:31:09,440 --> 00:31:11,560
Speaker 2: All right, Let's hear from a new listener and he

695
00:31:11,720 --> 00:31:13,840
Speaker 2: is wanting to know what he should be doing with

696
00:31:13,880 --> 00:31:14,520
Speaker 2: his money.

697
00:31:14,800 --> 00:31:18,160
Speaker 5: Hey, Matt and Jowel, this is Sean from Salt Lake City, Utah.

698
00:31:18,840 --> 00:31:21,920
Speaker 5: So I need your assessment on my money.

699
00:31:21,960 --> 00:31:22,440
Speaker 2: Situation.

700
00:31:22,920 --> 00:31:26,200
Speaker 5: So I'm forty years old. I make about three thousand

701
00:31:26,280 --> 00:31:31,200
Speaker 5: dollars a month, netting twenty four hundred roughly. I invest

702
00:31:31,320 --> 00:31:34,440
Speaker 5: three hundred to five hundred and fifty per month, kind

703
00:31:34,440 --> 00:31:38,240
Speaker 5: of depending on what bills are coming out of that

704
00:31:38,360 --> 00:31:41,400
Speaker 5: check and how much the check is and whatnot. I

705
00:31:41,560 --> 00:31:45,719
Speaker 5: don't currently have a retirement plan at my job, although

706
00:31:45,760 --> 00:31:51,040
Speaker 5: I hear that upgraded benefits might be on the way. Recently,

707
00:31:51,080 --> 00:31:53,800
Speaker 5: I started a rough IRA and I have thirty two

708
00:31:53,880 --> 00:31:57,320
Speaker 5: hundred dollars in NI. Roughly, in robinhood, I have about

709
00:31:57,320 --> 00:32:02,080
Speaker 5: twenty six hundred with a sixty four split between ETFs

710
00:32:02,080 --> 00:32:07,480
Speaker 5: and stocks, and from listening to your guys's suggestions, I've

711
00:32:07,520 --> 00:32:10,160
Speaker 5: started dumping some money into the S and P five

712
00:32:10,240 --> 00:32:12,800
Speaker 5: hundred the last few times i've put money in. I

713
00:32:12,840 --> 00:32:16,280
Speaker 5: also have twenty seven hundred dollars in crypto. Currently, I

714
00:32:16,280 --> 00:32:20,840
Speaker 5: have no savings. Let's see debt wise, I have about

715
00:32:20,880 --> 00:32:23,920
Speaker 5: thirty five hundred dollars in credit card debt and I

716
00:32:24,000 --> 00:32:28,200
Speaker 5: owe about eighty five hundred dollars towards a camper asset. Wise,

717
00:32:28,280 --> 00:32:31,160
Speaker 5: I have a car that's worth about eight thousand, which

718
00:32:31,200 --> 00:32:33,360
Speaker 5: I plan on driving into the ground and I take

719
00:32:33,400 --> 00:32:36,680
Speaker 5: good care of it, and maybe a few thousand dollars

720
00:32:36,680 --> 00:32:40,400
Speaker 5: elsewhere in smaller things. Yeah, So just wondering what you

721
00:32:40,520 --> 00:32:45,440
Speaker 5: guys's suggestion would be on where to transfer my money

722
00:32:45,480 --> 00:32:48,239
Speaker 5: to or to change it at all, just to make

723
00:32:48,280 --> 00:32:50,280
Speaker 5: sure my money is working the best for me and

724
00:32:50,680 --> 00:32:53,040
Speaker 5: that I'm doing the smartest thing I can with it.

725
00:32:53,160 --> 00:32:55,800
Speaker 1: Thanks all right, Matt, lots still aid through here. I

726
00:32:55,800 --> 00:32:58,880
Speaker 1: feel like Sean kind of bore his soul, his financial soul.

727
00:33:00,520 --> 00:33:02,680
Speaker 1: Thanks for all the info. Sean will do our best

728
00:33:02,800 --> 00:33:05,920
Speaker 1: to give the most robust advice that we can. But

729
00:33:06,240 --> 00:33:09,160
Speaker 1: and one thing, Matt. First. Thing's first, Sean is saving

730
00:33:09,280 --> 00:33:11,640
Speaker 1: sounds like between ten and fifteen percent of his pay. Yeah,

731
00:33:11,680 --> 00:33:15,080
Speaker 1: that's really great. That's really good. Right, And by the way,

732
00:33:15,160 --> 00:33:18,120
Speaker 1: fingers crossed, right, that your employer starts offering better benefits soon,

733
00:33:18,280 --> 00:33:20,000
Speaker 1: because that can make a massive difference when you think

734
00:33:20,040 --> 00:33:22,360
Speaker 1: about like something like a three percent match and how

735
00:33:22,360 --> 00:33:25,320
Speaker 1: that can add up over years and decades. That is,

736
00:33:25,560 --> 00:33:27,840
Speaker 1: that's not nothing. So I sure hope that that your

737
00:33:27,880 --> 00:33:30,320
Speaker 1: employer moves in that direction. If not, I don't know,

738
00:33:30,360 --> 00:33:32,120
Speaker 1: it might be time to start looking for a place

739
00:33:32,160 --> 00:33:35,040
Speaker 1: where they have better benefits. Those benefits can add a

740
00:33:35,040 --> 00:33:38,320
Speaker 1: significant amount to kind of your total comp totally.

741
00:33:38,440 --> 00:33:41,600
Speaker 2: Yeah, So okay, The biggest concerns that I have with

742
00:33:41,760 --> 00:33:44,240
Speaker 2: what Sean has said is that he doesn't have any

743
00:33:44,280 --> 00:33:47,120
Speaker 2: savings on hand, and that he's still got some credit

744
00:33:47,120 --> 00:33:50,000
Speaker 2: card debt lingering around. We want every how the money

745
00:33:50,040 --> 00:33:53,960
Speaker 2: listener out there to be investing, definitely, but only when

746
00:33:54,000 --> 00:33:57,520
Speaker 2: they've taken care of these two things first, only once

747
00:33:57,520 --> 00:33:59,520
Speaker 2: they've taken care of some of the basics. And so

748
00:33:59,560 --> 00:34:00,720
Speaker 2: what I would do if I were you, I would

749
00:34:00,760 --> 00:34:03,520
Speaker 2: take your robin Hood holdings, the crypto money that you've got,

750
00:34:03,760 --> 00:34:07,360
Speaker 2: sell that in order to save up that basic emergency

751
00:34:07,400 --> 00:34:10,320
Speaker 2: fund that we always talk about, and that means getting

752
00:34:10,400 --> 00:34:13,280
Speaker 2: to at least two thousand, four hundred and sixty seven

753
00:34:13,400 --> 00:34:15,960
Speaker 2: dollars in savings. We didn't pull that number out of

754
00:34:16,000 --> 00:34:19,160
Speaker 2: thin air. That's a number that economists, that researchers have

755
00:34:19,280 --> 00:34:21,799
Speaker 2: landed on. That is enough to have on hand to

756
00:34:22,320 --> 00:34:24,840
Speaker 2: handle most kind of small emergencies that the majority of

757
00:34:24,920 --> 00:34:27,760
Speaker 2: folks are faced with in life that tend to derail

758
00:34:27,840 --> 00:34:30,960
Speaker 2: them on their quest to financial freedom. That should be

759
00:34:31,239 --> 00:34:33,440
Speaker 2: enough for you to weather a bunch of financial storms.

760
00:34:33,480 --> 00:34:35,279
Speaker 2: It's at least the starting point that you need to

761
00:34:35,320 --> 00:34:38,480
Speaker 2: hit yeah, but then use the rest of any additional

762
00:34:38,480 --> 00:34:40,680
Speaker 2: money that you have on hand to crush that credit

763
00:34:40,719 --> 00:34:43,680
Speaker 2: card debt. And by the way, just moving forward, we

764
00:34:43,719 --> 00:34:45,799
Speaker 2: only want you to use credit cards if you can

765
00:34:45,840 --> 00:34:49,000
Speaker 2: pay them off on time, if you can pay off

766
00:34:49,120 --> 00:34:52,359
Speaker 2: that balance in full every single month. We love taking

767
00:34:52,360 --> 00:34:54,520
Speaker 2: advantage of some of the different benefits we've been talking

768
00:34:54,560 --> 00:34:57,560
Speaker 2: about that recently that credit cards have to offer, but

769
00:34:58,160 --> 00:35:00,360
Speaker 2: make sure that you are receiving. You don't want to

770
00:35:00,360 --> 00:35:02,840
Speaker 2: pay for those benefits right in the form of interest.

771
00:35:02,960 --> 00:35:05,759
Speaker 1: Only take them if they're free, and they're only free

772
00:35:05,800 --> 00:35:08,560
Speaker 1: to you if you use credit cards properly the way

773
00:35:08,600 --> 00:35:11,560
Speaker 1: we describe in the show. And also, Matt, the money

774
00:35:11,560 --> 00:35:14,040
Speaker 1: that that Shawn's invested in crypto goes against another principle

775
00:35:14,080 --> 00:35:16,440
Speaker 1: we have, which is to invest in the basic boring

776
00:35:16,440 --> 00:35:19,919
Speaker 1: stuff with ninety five percent of your funds. We only

777
00:35:19,960 --> 00:35:22,120
Speaker 1: want crypto or single stocks and I think to be

778
00:35:22,280 --> 00:35:25,120
Speaker 1: five percent of your overall portfolio. And since you're just

779
00:35:25,120 --> 00:35:27,000
Speaker 1: getting percent max five percent.

780
00:35:26,760 --> 00:35:28,759
Speaker 2: Max like you do, if you don't want to even

781
00:35:29,080 --> 00:35:31,000
Speaker 2: mess with five percent, you can keep it at totally

782
00:35:31,040 --> 00:35:31,560
Speaker 2: two and a half.

783
00:35:31,560 --> 00:35:34,200
Speaker 1: You can keep it at one one hundred percent boring. Yeah, yeah,

784
00:35:34,200 --> 00:35:37,000
Speaker 1: there's nothing wrong with that, but you this, considering where

785
00:35:37,000 --> 00:35:39,520
Speaker 1: you're at in your investing journey, it's just too early

786
00:35:39,600 --> 00:35:43,520
Speaker 1: to have any exposure to alternative asset classes like crypto

787
00:35:43,600 --> 00:35:46,160
Speaker 1: when you're just getting started, and so at basic index

788
00:35:46,200 --> 00:35:48,080
Speaker 1: funds or target date funds are where you should be

789
00:35:48,160 --> 00:35:51,000
Speaker 1: laser focused. Sean and I wouldn't stake any more money

790
00:35:51,040 --> 00:35:54,040
Speaker 1: in that Robinhood account either. That brokerage account, it's just

791
00:35:54,080 --> 00:35:56,440
Speaker 1: not as tax efficient as the WROTH that you're sticking

792
00:35:56,480 --> 00:35:59,799
Speaker 1: money in. Robinhood does offer a roth IRA and they're

793
00:36:00,000 --> 00:36:02,919
Speaker 1: they're actually the only brokerage out there that's offering a match,

794
00:36:02,960 --> 00:36:05,960
Speaker 1: so that's kind of cool. If you're going to invest

795
00:36:05,960 --> 00:36:07,960
Speaker 1: in a ROTH and you're gonna do it with Robinhood,

796
00:36:08,000 --> 00:36:11,280
Speaker 1: that's fine, But just don't invest in the brokerage account

797
00:36:11,760 --> 00:36:13,760
Speaker 1: right now, because you want to make sure you're maxing

798
00:36:13,760 --> 00:36:16,320
Speaker 1: out the WROTH before you do any other types of investing.

799
00:36:16,640 --> 00:36:19,439
Speaker 1: And so reah, regardless of where you've got your roth ira,

800
00:36:19,680 --> 00:36:22,000
Speaker 1: preferably with one of the low cost companies that we love,

801
00:36:22,280 --> 00:36:25,840
Speaker 1: plow all of your investable dollars into that WROTH instead.

802
00:36:25,840 --> 00:36:28,680
Speaker 1: Of the brokerage account in order for you to basically

803
00:36:28,760 --> 00:36:30,960
Speaker 1: avoid unnecessary taxation later on.

804
00:36:31,040 --> 00:36:36,640
Speaker 2: Totally. Yeah, ROTH always comes first before any other investible account.

805
00:36:36,880 --> 00:36:39,319
Speaker 2: But Sean also loved just how you talked about your car,

806
00:36:39,440 --> 00:36:41,520
Speaker 2: you know, taking care of that thing, keeping that puppy

807
00:36:41,600 --> 00:36:43,279
Speaker 2: running for as long as you can, running it into

808
00:36:43,280 --> 00:36:46,279
Speaker 2: the ground, keeping that expense low, which is this is

809
00:36:46,320 --> 00:36:48,880
Speaker 2: a major expense transportation. This is going to allow you

810
00:36:48,920 --> 00:36:51,759
Speaker 2: to then funnel more towards paying off your credit card

811
00:36:51,760 --> 00:36:55,080
Speaker 2: debt and then ramping up that emergency fund. But once

812
00:36:55,120 --> 00:36:58,239
Speaker 2: you've done those those two things, you should resume those

813
00:36:58,280 --> 00:37:01,320
Speaker 2: regular contributions to the WROTH at that point. And also,

814
00:37:01,360 --> 00:37:03,520
Speaker 2: I'm not totally sure what the interest rate is on

815
00:37:03,520 --> 00:37:05,880
Speaker 2: the camper. You didn't mention that, but if it is

816
00:37:06,040 --> 00:37:08,840
Speaker 2: north of seven percent, that's that's kind of our dividing line.

817
00:37:08,960 --> 00:37:10,640
Speaker 2: If it is that, then it would be a good

818
00:37:10,640 --> 00:37:14,680
Speaker 2: idea to start paying that off more quickly as well. Basically,

819
00:37:14,880 --> 00:37:16,480
Speaker 2: the quicker that you can pay that off, the more

820
00:37:16,520 --> 00:37:19,280
Speaker 2: flexibility you're going to have to save and invest moving forward.

821
00:37:19,640 --> 00:37:23,720
Speaker 2: And the balance actually on your trailer is actually pretty high,

822
00:37:23,760 --> 00:37:26,160
Speaker 2: and so that tells me that it's pretty sweet which

823
00:37:26,200 --> 00:37:28,200
Speaker 2: is great and hopefully you're getting a lot of value

824
00:37:28,200 --> 00:37:31,000
Speaker 2: out of it, but not just you know, we're not

825
00:37:31,040 --> 00:37:33,960
Speaker 2: just talking about financing a car. We also want to

826
00:37:33,960 --> 00:37:38,080
Speaker 2: make sure that you're not financing any additional fun toys essentially,

827
00:37:38,160 --> 00:37:41,360
Speaker 2: So maybe you've got the sweet camper and you're also thinking,

828
00:37:41,840 --> 00:37:44,320
Speaker 2: I need a sweet electric mountain bike to go with ethnically,

829
00:37:44,640 --> 00:37:47,600
Speaker 2: but man, those things run like eight thousand dollars, but

830
00:37:47,719 --> 00:37:49,319
Speaker 2: I could finance it, And no, we don't want you

831
00:37:49,400 --> 00:37:52,000
Speaker 2: to do that at all. It's okay, Like we've all

832
00:37:52,000 --> 00:37:54,000
Speaker 2: got different goals and different things that we're saving up for.

833
00:37:54,080 --> 00:37:58,239
Speaker 2: It's okay to save up and maybe achieve that as

834
00:37:58,280 --> 00:38:01,239
Speaker 2: a goal sooner than later. But I think ideally you

835
00:38:01,239 --> 00:38:04,120
Speaker 2: would also have a fully funded emergency fund before you're

836
00:38:04,239 --> 00:38:07,239
Speaker 2: dumping more money into things that are going to depreciate

837
00:38:07,239 --> 00:38:12,320
Speaker 2: in value rather than maintain a solid foundation of financial stability.

838
00:38:12,360 --> 00:38:13,719
Speaker 1: Yeah, and once you pay off the credit card debt,

839
00:38:13,760 --> 00:38:17,880
Speaker 1: hopefully you never have any again moving forward, and hopefully

840
00:38:17,920 --> 00:38:20,080
Speaker 1: you're able to also just grow that gap so that

841
00:38:20,120 --> 00:38:22,279
Speaker 1: you can save up more for those purchases math that

842
00:38:22,280 --> 00:38:22,839
Speaker 1: you're talking about.

843
00:38:22,880 --> 00:38:23,680
Speaker 2: That's the fun stuff.

844
00:38:23,680 --> 00:38:25,680
Speaker 1: That's the goal, is that you're not financing stuff like that,

845
00:38:25,760 --> 00:38:28,279
Speaker 1: especially in today's environment where interest rates have gone up.

846
00:38:28,280 --> 00:38:30,640
Speaker 1: It's like the less the more you can pay in cash,

847
00:38:30,719 --> 00:38:33,000
Speaker 1: the better, right, So saving up for whatever you're trying

848
00:38:33,040 --> 00:38:35,040
Speaker 1: to buy. But Sean, it sounds like you're well in

849
00:38:35,040 --> 00:38:37,680
Speaker 1: your way. You're getting the information, and you're making the changes.

850
00:38:37,760 --> 00:38:40,320
Speaker 1: So we wish you continued success.

851
00:38:40,320 --> 00:38:40,560
Speaker 2: Man.

852
00:38:40,640 --> 00:38:43,080
Speaker 1: All right, we got more to get to on this episode,

853
00:38:43,080 --> 00:38:44,960
Speaker 1: including a listener who wants to know whether he should

854
00:38:45,320 --> 00:38:47,279
Speaker 1: sell a car in order to pay off some of

855
00:38:47,320 --> 00:38:49,360
Speaker 1: his debts. We'll get to that and more right after this.

856
00:39:00,000 --> 00:39:02,359
Speaker 2: We're back in. Before we get to that question about

857
00:39:02,400 --> 00:39:04,879
Speaker 2: whether or not a listener should sell his car, let's

858
00:39:04,920 --> 00:39:08,440
Speaker 2: hear from a listener who's looking for he's considering this

859
00:39:08,680 --> 00:39:11,120
Speaker 2: sweet way to avoid the tax man when it comes

860
00:39:11,160 --> 00:39:11,880
Speaker 2: to real estate.

861
00:39:12,080 --> 00:39:12,920
Speaker 1: Let's hear it.

862
00:39:13,400 --> 00:39:16,320
Speaker 6: Hey, Matt Jeel, this is Neil from Texas. I'm selling

863
00:39:16,320 --> 00:39:18,920
Speaker 6: my home and an investment property in order to purchase

864
00:39:19,320 --> 00:39:22,080
Speaker 6: a four plex. One of my sales closed a week ago.

865
00:39:22,160 --> 00:39:24,520
Speaker 6: The other sale is closing in a few weeks. I'm

866
00:39:24,520 --> 00:39:26,040
Speaker 6: going to be a nomad for a while, so I

867
00:39:26,040 --> 00:39:28,200
Speaker 6: don't need the funds for a new home. I want

868
00:39:28,200 --> 00:39:30,080
Speaker 6: to do a ten thirty one exchange, but I don't

869
00:39:30,080 --> 00:39:32,160
Speaker 6: know where to start. What do I need to do

870
00:39:32,280 --> 00:39:34,600
Speaker 6: to make sure that I follow the rules. My follow

871
00:39:34,680 --> 00:39:36,719
Speaker 6: up has to do with realtor fees. I found the

872
00:39:36,719 --> 00:39:38,399
Speaker 6: four plex on my own, and I think I can

873
00:39:38,440 --> 00:39:42,280
Speaker 6: handle the negotiating process. It's selling for five thousand dollars,

874
00:39:42,360 --> 00:39:45,160
Speaker 6: so the realtor fees would be substantial. Is it common

875
00:39:45,200 --> 00:39:46,840
Speaker 6: to make a deal with a realtor to work for

876
00:39:46,840 --> 00:39:48,840
Speaker 6: a flat fee? Since I've done most of the legwork

877
00:39:48,920 --> 00:39:51,800
Speaker 6: myself and I only need help with the closing process,

878
00:39:52,480 --> 00:39:54,520
Speaker 6: I was thinking that if my offer stated that my

879
00:39:54,600 --> 00:39:56,800
Speaker 6: realtor fee is only two thousand dollars or whatever it

880
00:39:56,880 --> 00:39:59,360
Speaker 6: is agreed upon, it might be a more attractive offer.

881
00:39:59,640 --> 00:40:00,319
Speaker 1: What do you think?

882
00:40:00,680 --> 00:40:02,400
Speaker 6: Thanks for your help and for all the great content.

883
00:40:02,520 --> 00:40:05,000
Speaker 1: Love the show, all right, man, this is a good question,

884
00:40:05,040 --> 00:40:06,360
Speaker 1: and there's a lot to a lot that we can

885
00:40:06,440 --> 00:40:09,080
Speaker 1: learn about real estate investing in this one. First off, though,

886
00:40:09,120 --> 00:40:10,759
Speaker 1: I think Neil said that he was buying this four

887
00:40:10,800 --> 00:40:12,919
Speaker 1: plex or five grand. I bet that's not the case.

888
00:40:12,920 --> 00:40:15,120
Speaker 1: My guest is at five hundred grand, right, five hundred k.

889
00:40:15,239 --> 00:40:16,840
Speaker 1: That's what the hell we'll think of it.

890
00:40:16,840 --> 00:40:17,520
Speaker 2: That's my assumption.

891
00:40:17,680 --> 00:40:19,520
Speaker 1: Five thousand dollars four plex would be amazing. You'd be

892
00:40:19,560 --> 00:40:23,279
Speaker 1: financially independent immediately. I'd buy it same here, no matter

893
00:40:23,320 --> 00:40:25,720
Speaker 1: the condition, no out of the location. Well, it depends

894
00:40:25,760 --> 00:40:28,000
Speaker 1: on the location a little bit. But Neil, we love

895
00:40:28,040 --> 00:40:30,760
Speaker 1: that you're upgrading through a four plexure. You're like legit

896
00:40:30,880 --> 00:40:33,560
Speaker 1: big time landlord now, which is great, and even more

897
00:40:33,600 --> 00:40:36,040
Speaker 1: so because you're looking to do this ten thirty one exchange,

898
00:40:36,200 --> 00:40:39,080
Speaker 1: which can be an awesome move when done properly, allowing

899
00:40:39,080 --> 00:40:42,400
Speaker 1: real estate investors to sell a property snag another one

900
00:40:42,520 --> 00:40:45,680
Speaker 1: while avoiding any sort of taxation. But I said when

901
00:40:45,800 --> 00:40:48,480
Speaker 1: done properly, and that's because the devil's in the details.

902
00:40:48,640 --> 00:40:50,920
Speaker 1: When we're talking about a ten thirty one exchange and

903
00:40:51,080 --> 00:40:53,640
Speaker 1: the price of messing it up, it can be steep.

904
00:40:53,880 --> 00:40:54,040
Speaker 2: Right.

905
00:40:54,080 --> 00:40:56,520
Speaker 1: It means paying capital gains tax on the sale of

906
00:40:56,520 --> 00:40:59,320
Speaker 1: at home fifteen percent of the proceeds for the average

907
00:40:59,320 --> 00:41:02,200
Speaker 1: person basically of all the games you've accrued on that property.

908
00:41:02,239 --> 00:41:04,840
Speaker 1: So it is it is worth dotting your eyes, crossing

909
00:41:04,880 --> 00:41:07,600
Speaker 1: your t's and kind of getting a little more familiar

910
00:41:07,680 --> 00:41:09,600
Speaker 1: with the ten thirty one exchange that you can proceed

911
00:41:09,640 --> 00:41:10,520
Speaker 1: properly totally.

912
00:41:10,719 --> 00:41:14,000
Speaker 2: A big aspect of making sure that you perform at

913
00:41:14,040 --> 00:41:17,839
Speaker 2: ten thirty one exchange properly is the timing. A ten

914
00:41:17,920 --> 00:41:22,880
Speaker 2: thirty one exchange is an incredibly time sensitive procedure. Specifically,

915
00:41:22,920 --> 00:41:25,640
Speaker 2: you've got to know the forty five day and the

916
00:41:25,719 --> 00:41:28,359
Speaker 2: one and eighty day rule, and so within forty five

917
00:41:28,440 --> 00:41:31,319
Speaker 2: days of the sale of your current property you need

918
00:41:31,360 --> 00:41:34,320
Speaker 2: to have designated a property that you want to purchase

919
00:41:34,360 --> 00:41:36,799
Speaker 2: a new property basically, So what that means is that

920
00:41:36,800 --> 00:41:39,960
Speaker 2: the clock is ticking and you can't actually be in

921
00:41:40,000 --> 00:41:44,000
Speaker 2: possession of the excess funds from closing when you make

922
00:41:44,040 --> 00:41:47,000
Speaker 2: the sale on your current investment property because that money

923
00:41:47,040 --> 00:41:50,120
Speaker 2: actually it has to be held by a qualified intermediary.

924
00:41:50,560 --> 00:41:51,960
Speaker 2: It's typically a law firm.

925
00:41:52,040 --> 00:41:53,880
Speaker 1: And ORKI me me just reach out. I'll hold on

926
00:41:53,920 --> 00:41:54,279
Speaker 1: to a point.

927
00:41:54,760 --> 00:41:56,640
Speaker 2: Well, it can be an individual as long as so.

928
00:41:56,680 --> 00:41:59,600
Speaker 2: There are actually pretty strict requirements as to what the

929
00:41:59,600 --> 00:42:04,000
Speaker 2: IRS allows to be a QI a qualified intermediary. So

930
00:42:04,040 --> 00:42:07,160
Speaker 2: it can't be someone that you have financial ties with,

931
00:42:07,280 --> 00:42:10,400
Speaker 2: it can't be family. It also can't be an agent.

932
00:42:10,440 --> 00:42:13,120
Speaker 2: It can't be somebody who you've employed in the past

933
00:42:13,160 --> 00:42:15,759
Speaker 2: two years. So it can't be like your broker, real

934
00:42:15,800 --> 00:42:17,759
Speaker 2: estate agent. It can't be a closing attorney. It needs

935
00:42:17,800 --> 00:42:19,160
Speaker 2: to be somebody that's completely new.

936
00:42:19,320 --> 00:42:21,560
Speaker 1: And typically there's a fee for holding these funds.

937
00:42:21,239 --> 00:42:22,920
Speaker 2: Exactly because they want to make a little bit of

938
00:42:22,960 --> 00:42:25,840
Speaker 2: spread on doing all the work. Because there is work involved,

939
00:42:25,840 --> 00:42:28,400
Speaker 2: you have to you can actually become it's almost, I

940
00:42:28,400 --> 00:42:31,520
Speaker 2: don't know, it's not quite like becoming a notary, but

941
00:42:31,960 --> 00:42:36,000
Speaker 2: you like you get a qualified intermediary ei N and

942
00:42:36,280 --> 00:42:39,040
Speaker 2: that's basically like a Social Security number for employers, an

943
00:42:39,040 --> 00:42:42,440
Speaker 2: employer identification number. So there is some work involved with

944
00:42:42,480 --> 00:42:45,200
Speaker 2: the reporting that they provide the IRS to make sure

945
00:42:45,200 --> 00:42:47,160
Speaker 2: that there is a clean paper trail and that truly

946
00:42:47,480 --> 00:42:50,239
Speaker 2: that money has gone to the right person and that

947
00:42:50,280 --> 00:42:52,520
Speaker 2: you haven't that you weren't in possession of it. But

948
00:42:52,560 --> 00:42:55,520
Speaker 2: then the one hundred and eighty day rule, it stipulates

949
00:42:55,600 --> 00:42:58,799
Speaker 2: that you must close out on this new property within

950
00:42:58,920 --> 00:43:01,600
Speaker 2: one hundred and eighty day of the sale of the

951
00:43:01,640 --> 00:43:04,080
Speaker 2: old one. And so it sounds like you've already identified

952
00:43:04,080 --> 00:43:07,200
Speaker 2: that new quadplex, that four plex, so you might be

953
00:43:07,239 --> 00:43:09,799
Speaker 2: able to make it happen within this tight window. And

954
00:43:09,880 --> 00:43:11,960
Speaker 2: if so, congrats kudos to you man.

955
00:43:12,000 --> 00:43:14,400
Speaker 1: Yeah, you just avoided tax or at least kick the

956
00:43:14,400 --> 00:43:16,800
Speaker 1: can down the road for a little while, which is great.

957
00:43:16,960 --> 00:43:19,680
Speaker 1: That's the whole point, yeah, is to avoid that all together.

958
00:43:19,880 --> 00:43:21,479
Speaker 1: And for everyone else out there, by the way, Matt,

959
00:43:21,480 --> 00:43:23,840
Speaker 1: ten thirty one exchanges, they're pretty cool and they're a

960
00:43:23,840 --> 00:43:26,960
Speaker 1: great tool really in the tool belt of the experienced

961
00:43:26,960 --> 00:43:30,480
Speaker 1: real estate investor, allowing them to kick that taxation can

962
00:43:30,520 --> 00:43:34,480
Speaker 1: down the road, sometimes even forever, because in particular, I

963
00:43:34,480 --> 00:43:39,080
Speaker 1: mean forever if you die owning that home and you

964
00:43:39,160 --> 00:43:42,000
Speaker 1: leave it to let's say a child, that they get

965
00:43:42,040 --> 00:43:44,800
Speaker 1: what's known as a stepped up basis, and so taxation

966
00:43:44,920 --> 00:43:47,440
Speaker 1: can be avoided almost in perpetuity with the use of

967
00:43:47,640 --> 00:43:50,120
Speaker 1: ten thirty one exchanges and just real estate in general,

968
00:43:50,160 --> 00:43:51,919
Speaker 1: which is kind of one of the things that makes

969
00:43:51,920 --> 00:43:54,080
Speaker 1: it cool. But I would say this too, don't let

970
00:43:54,160 --> 00:43:56,439
Speaker 1: the tax tail wag the dog. If you can't find

971
00:43:56,480 --> 00:43:58,920
Speaker 1: the right property, let's say, you know, don't force something

972
00:43:59,360 --> 00:44:02,239
Speaker 1: just in order to avoid taxation, right potentially buying the

973
00:44:02,239 --> 00:44:04,600
Speaker 1: wrong property that doesn't make sense for you. So I

974
00:44:04,600 --> 00:44:07,320
Speaker 1: think ten thirty one exchanges are helpful when used properly.

975
00:44:07,520 --> 00:44:10,400
Speaker 1: I think if you allow the ten thirty one exchange

976
00:44:10,680 --> 00:44:12,560
Speaker 1: to be the goal instead of a means to the goal.

977
00:44:12,880 --> 00:44:15,719
Speaker 1: Then you might be enticed into using it in a

978
00:44:15,719 --> 00:44:16,879
Speaker 1: way that's not in your best interest.

979
00:44:16,960 --> 00:44:19,239
Speaker 2: Yeah, hopefully for everyone else out there who might have

980
00:44:19,280 --> 00:44:21,319
Speaker 2: an investment property, you're not just learning about the ten

981
00:44:21,360 --> 00:44:23,200
Speaker 2: thirty one and now thinking I've got to find a

982
00:44:23,239 --> 00:44:26,080
Speaker 2: way to use this tax loophole. We don't want that

983
00:44:26,120 --> 00:44:28,120
Speaker 2: to be the case. But then, on the subject of

984
00:44:28,120 --> 00:44:31,520
Speaker 2: realtor fees, I think those are most definitely negotiable. I've

985
00:44:31,600 --> 00:44:35,719
Speaker 2: certainly had realtors offer their services at a discount just

986
00:44:35,760 --> 00:44:37,560
Speaker 2: because they'll know that I'm going to give them more

987
00:44:37,600 --> 00:44:41,200
Speaker 2: business in the future than the average person who's playing

988
00:44:41,239 --> 00:44:43,759
Speaker 2: to just live in their primary residence for the next

989
00:44:43,800 --> 00:44:44,160
Speaker 2: ten years.

990
00:44:44,360 --> 00:44:45,839
Speaker 1: Real estate, and that's sure that kind of thing can

991
00:44:45,880 --> 00:44:49,359
Speaker 1: often get a better rate just because that agent knows, well,

992
00:44:49,400 --> 00:44:51,359
Speaker 1: I might be helping this person buy three or four

993
00:44:51,400 --> 00:44:52,320
Speaker 1: houses in the next.

994
00:44:52,160 --> 00:44:54,839
Speaker 2: Three or four years exactly. Yeah. But I also say this,

995
00:44:55,000 --> 00:44:57,800
Speaker 2: I've been more than happy to pay agents full price,

996
00:44:57,840 --> 00:45:00,920
Speaker 2: full commission, because the great ones they're well worth that

997
00:45:01,000 --> 00:45:01,600
Speaker 2: three percent.

998
00:45:02,360 --> 00:45:03,120
Speaker 1: But it's worth.

999
00:45:02,880 --> 00:45:05,640
Speaker 2: Asking if they'll be willing to take a reduced commission

1000
00:45:05,680 --> 00:45:09,000
Speaker 2: just based on a reduced workload and the likelihood of

1001
00:45:09,080 --> 00:45:12,960
Speaker 2: more purchases. With you being an investor, you're going to

1002
00:45:13,000 --> 00:45:15,000
Speaker 2: be able to provide them with more business off there

1003
00:45:15,000 --> 00:45:17,360
Speaker 2: in the future. I know that if I was a realtor,

1004
00:45:17,400 --> 00:45:20,400
Speaker 2: I would most definitely be willing to cut an investor

1005
00:45:20,560 --> 00:45:22,640
Speaker 2: a break. Joe, Let's move on. Let's get to our

1006
00:45:22,719 --> 00:45:23,799
Speaker 2: last questions for this.

1007
00:45:23,719 --> 00:45:25,680
Speaker 1: Becoming the costco of realtors.

1008
00:45:27,239 --> 00:45:29,360
Speaker 2: Last question has to do with whether or not a

1009
00:45:29,360 --> 00:45:32,560
Speaker 2: listener should sell his car in order to pay off

1010
00:45:32,600 --> 00:45:33,680
Speaker 2: some credit card debt.

1011
00:45:34,320 --> 00:45:37,400
Speaker 7: Hello, Matt and Joel, this is Armuu. I'm calling from

1012
00:45:38,200 --> 00:45:42,759
Speaker 7: Los Angeles, California. I'm a pretty new listener to the podcast.

1013
00:45:43,040 --> 00:45:46,960
Speaker 7: I was wanting to know is it a good idea

1014
00:45:47,160 --> 00:45:50,040
Speaker 7: for me to sell my car to pay off my

1015
00:45:50,200 --> 00:45:54,680
Speaker 7: credit card debt? A little background is through a pandemic.

1016
00:45:54,960 --> 00:45:59,319
Speaker 7: I use my credit cards quite a bit out of necessity,

1017
00:45:59,400 --> 00:46:02,439
Speaker 7: just because they're everything that was going on. I wasn't

1018
00:46:02,480 --> 00:46:05,120
Speaker 7: working as much, and so now I find myself in

1019
00:46:05,120 --> 00:46:08,680
Speaker 7: a situation where my credit card balances are pretty high

1020
00:46:08,719 --> 00:46:11,359
Speaker 7: and I'm having a hard time paying them off. I'm

1021
00:46:11,400 --> 00:46:14,880
Speaker 7: basically paying the minimum every month just to make sure

1022
00:46:15,400 --> 00:46:18,080
Speaker 7: that they stay in good standing, but of course, due

1023
00:46:18,120 --> 00:46:21,600
Speaker 7: to that they're not being there, the balances aren't going down,

1024
00:46:22,239 --> 00:46:25,120
Speaker 7: and of course my credit has taken a hit for

1025
00:46:25,160 --> 00:46:28,720
Speaker 7: that reason. So I have a twenty nineteen Nissan Ultimate,

1026
00:46:29,400 --> 00:46:34,600
Speaker 7: I owe about eleven four hundred dollars, and I have

1027
00:46:34,719 --> 00:46:38,480
Speaker 7: about six thousand dollars in credit card debt to payoff,

1028
00:46:39,160 --> 00:46:44,640
Speaker 7: and through Carvana, my car is currently worth eighteen thousand,

1029
00:46:44,760 --> 00:46:48,799
Speaker 7: seven hundred dollars. So what I was considering doing is

1030
00:46:49,040 --> 00:46:52,919
Speaker 7: selling my car, paying off the remainder of my car loan,

1031
00:46:53,560 --> 00:46:58,000
Speaker 7: paying off my credit card debt, and using what's left

1032
00:46:58,200 --> 00:47:02,200
Speaker 7: of what I sell my car for along with another

1033
00:47:02,520 --> 00:47:07,160
Speaker 7: few one hundred dollars I have saved to put as

1034
00:47:07,200 --> 00:47:10,759
Speaker 7: a down payment on a new car. My only apprehension

1035
00:47:10,760 --> 00:47:15,440
Speaker 7: about doing so is car prices are pretty high, interest

1036
00:47:15,520 --> 00:47:18,720
Speaker 7: rates aren't very low, and of course I'm a little

1037
00:47:18,719 --> 00:47:20,040
Speaker 7: worried about what I would.

1038
00:47:19,880 --> 00:47:20,560
Speaker 2: Get approved for.

1039
00:47:21,840 --> 00:47:28,920
Speaker 7: My score is currently around five seventy. Is it a

1040
00:47:28,960 --> 00:47:32,319
Speaker 7: good idea for me to sell my car and pay

1041
00:47:32,320 --> 00:47:37,279
Speaker 7: off my debt based on the factors that are outlined previously?

1042
00:47:38,160 --> 00:47:40,839
Speaker 2: Arman, thank you so much for being a new How

1043
00:47:40,880 --> 00:47:43,239
Speaker 2: to Money podcast listener. By the way, we used to

1044
00:47:43,239 --> 00:47:45,239
Speaker 2: call it poor, not poor, But I'm glad we don't

1045
00:47:45,239 --> 00:47:46,960
Speaker 2: do that anymore because it made it hard to find. Yes,

1046
00:47:48,000 --> 00:47:49,840
Speaker 2: but we are glad to have you on board. But

1047
00:47:49,920 --> 00:47:52,279
Speaker 2: let's talk about what you've got going on here. It's

1048
00:47:52,280 --> 00:47:54,120
Speaker 2: a you know, we're bummed here. We're sorry to hear

1049
00:47:54,280 --> 00:47:57,840
Speaker 2: that the pandemic and messed up your finances. And yet again,

1050
00:47:58,120 --> 00:48:00,319
Speaker 2: you are not alone on that front. I think a

1051
00:48:00,320 --> 00:48:03,960
Speaker 2: lot of folks went through the tough season of life

1052
00:48:04,239 --> 00:48:06,880
Speaker 2: back in starting in twenty twenty. So don't beat yourself up.

1053
00:48:06,960 --> 00:48:09,719
Speaker 2: You know that's not helpful at a time right now

1054
00:48:09,719 --> 00:48:12,120
Speaker 2: when you're trying to basically write the ship, when you're

1055
00:48:12,120 --> 00:48:14,919
Speaker 2: trying to take the correct steps moving forward. But at

1056
00:48:14,920 --> 00:48:17,439
Speaker 2: the same time, it's crucial to find a way out

1057
00:48:17,440 --> 00:48:20,440
Speaker 2: of this. You can't continue to make those minimum payments

1058
00:48:20,840 --> 00:48:24,000
Speaker 2: and selling a car that is a pretty big step.

1059
00:48:24,640 --> 00:48:26,360
Speaker 2: It's one that we have encouraged folks to do in

1060
00:48:26,400 --> 00:48:29,759
Speaker 2: the past, for sure, and it could work if you

1061
00:48:29,800 --> 00:48:32,400
Speaker 2: went about it the right way. But there are a

1062
00:48:32,440 --> 00:48:34,120
Speaker 2: few other things that we want you.

1063
00:48:34,200 --> 00:48:36,480
Speaker 1: To consider first, Like first things first, how are you

1064
00:48:36,480 --> 00:48:38,400
Speaker 1: going to get around? Do you have to drive to

1065
00:48:38,440 --> 00:48:42,399
Speaker 1: your job? And if you do well, then I mean

1066
00:48:42,520 --> 00:48:45,640
Speaker 1: you can't necessarily sell this car and not find another one.

1067
00:48:46,680 --> 00:48:48,480
Speaker 1: Selling this car to pay off your credit card debt

1068
00:48:48,520 --> 00:48:50,920
Speaker 1: and then buying a more expensive new one, though that

1069
00:48:50,920 --> 00:48:54,360
Speaker 1: doesn't ultimately help your financial situations real either, you're kicking

1070
00:48:54,360 --> 00:48:57,040
Speaker 1: another can down the road. And you specifically mentioned saving

1071
00:48:57,120 --> 00:48:59,359
Speaker 1: up enough for a down payment, which means that you're

1072
00:48:59,560 --> 00:49:01,920
Speaker 1: you're looking to take out another car loan, which is

1073
00:49:01,960 --> 00:49:03,279
Speaker 1: going to be more than the one you have now

1074
00:49:03,320 --> 00:49:04,959
Speaker 1: in all likelihood, given the fact that you'd be buying

1075
00:49:04,960 --> 00:49:07,400
Speaker 1: a new car, and that's not something we like hearing.

1076
00:49:08,080 --> 00:49:09,480
Speaker 1: Like you said, you'd be paying more, you'd have a

1077
00:49:09,560 --> 00:49:11,840
Speaker 1: higher interest rate. Even if you did get approved, the

1078
00:49:11,960 --> 00:49:14,480
Speaker 1: terms would be massively unfavorable. They'd be worse than the

1079
00:49:14,520 --> 00:49:16,600
Speaker 1: ones you're carrying on the car that you have now.

1080
00:49:16,880 --> 00:49:19,400
Speaker 1: So no, we don't love this plan. That's not what

1081
00:49:19,440 --> 00:49:21,120
Speaker 1: we would suggest. If you're going to sell your car

1082
00:49:21,239 --> 00:49:23,160
Speaker 1: to pay off credit card debt, we'd want you to

1083
00:49:23,200 --> 00:49:26,120
Speaker 1: either go car less. Just hard to do in Los Angeles,

1084
00:49:26,120 --> 00:49:27,600
Speaker 1: of course, Yeah, how I need a car to get

1085
00:49:27,600 --> 00:49:29,440
Speaker 1: around most of the time in that city in particular,

1086
00:49:29,840 --> 00:49:33,040
Speaker 1: or to buy something much much cheaper with cash, saving

1087
00:49:33,080 --> 00:49:35,520
Speaker 1: you money each and every month moving forward. But that'd

1088
00:49:35,520 --> 00:49:37,239
Speaker 1: be difficult to do too, because it sounds like there's

1089
00:49:37,239 --> 00:49:39,920
Speaker 1: not quite enough cash on hand to buy something suitable.

1090
00:49:40,000 --> 00:49:41,680
Speaker 2: Yeah. Well, and then on top of that, it's not

1091
00:49:42,040 --> 00:49:44,560
Speaker 2: easy to buy even a used car right now, Joel,

1092
00:49:44,600 --> 00:49:48,279
Speaker 2: you learned that firsthand in recent weeks. And it would

1093
00:49:48,280 --> 00:49:51,279
Speaker 2: also be different too, Armand if you had a fancier car,

1094
00:49:51,400 --> 00:49:53,799
Speaker 2: right like if you had a few years ago you

1095
00:49:53,800 --> 00:49:56,640
Speaker 2: had gone out and bought a new Jeep brand Wagoneer

1096
00:49:56,719 --> 00:49:58,640
Speaker 2: for eighty thousand dollars, if.

1097
00:49:58,520 --> 00:50:01,000
Speaker 1: You're rolling with a Ribbean, Yeah, that would.

1098
00:50:00,840 --> 00:50:03,680
Speaker 2: Be it would be a different story because it's like, yeah,

1099
00:50:03,920 --> 00:50:06,880
Speaker 2: you don't need to have that much car compared to

1100
00:50:07,239 --> 00:50:09,920
Speaker 2: what you're dealing with and the rest of your personal finances.

1101
00:50:09,920 --> 00:50:12,160
Speaker 2: But that's not necessarily the case. Yeah, you've got a

1102
00:50:12,160 --> 00:50:14,520
Speaker 2: twenty nineteen Ultima.

1103
00:50:13,960 --> 00:50:16,279
Speaker 1: Like that's a that's a pretty affordable.

1104
00:50:15,800 --> 00:50:18,560
Speaker 2: Car in twenty nineteen, So technically that probably means it's

1105
00:50:18,600 --> 00:50:20,439
Speaker 2: from twenty eighteen, so that think is five years old

1106
00:50:21,080 --> 00:50:23,200
Speaker 2: if you've owned that entire time, like you've already taken

1107
00:50:23,320 --> 00:50:26,560
Speaker 2: most of the depreciation hit on that vehicle typically like

1108
00:50:26,600 --> 00:50:30,239
Speaker 2: a roup fifty to sixty percent, and so what more

1109
00:50:30,280 --> 00:50:33,240
Speaker 2: affordable car could you potentially go to if you were buying,

1110
00:50:33,440 --> 00:50:35,120
Speaker 2: if you're going from like no car to one car

1111
00:50:35,200 --> 00:50:37,919
Speaker 2: right now, yes, maybe we would point you like towards

1112
00:50:37,960 --> 00:50:41,320
Speaker 2: something that is a little more affordable. But twenty nineteen

1113
00:50:42,000 --> 00:50:44,120
Speaker 2: Nissan Ultima is a pretty solid car.

1114
00:50:44,239 --> 00:50:46,080
Speaker 1: Yeah, I mean it's still in the grand scheme of

1115
00:50:46,160 --> 00:50:50,239
Speaker 1: Armand's finances. That's a big commitment, but it's better than

1116
00:50:50,280 --> 00:50:53,399
Speaker 1: the alternative, right. And so there's just not an easy

1117
00:50:53,400 --> 00:50:55,759
Speaker 1: solution to getting you in a solid car Ormond to

1118
00:50:55,800 --> 00:50:57,360
Speaker 1: get to and from work while also paying off that

1119
00:50:57,440 --> 00:51:00,080
Speaker 1: credit card debt that involves selling that car. And so

1120
00:50:59,719 --> 00:51:01,840
Speaker 1: the best solution, although it's not an easy one, is

1121
00:51:01,880 --> 00:51:05,000
Speaker 1: to increase your income, and that is I think the

1122
00:51:05,000 --> 00:51:08,880
Speaker 1: best suggestion we can give a side hustle is probably

1123
00:51:08,920 --> 00:51:11,080
Speaker 1: the best thing for helping you get through this pinch.

1124
00:51:11,400 --> 00:51:15,040
Speaker 1: We were not like hustle culture dudes who want to

1125
00:51:15,040 --> 00:51:17,880
Speaker 1: suggest that people like work for jobs in order to

1126
00:51:18,480 --> 00:51:21,799
Speaker 1: crush their finances, right, stuff like that. But when you're

1127
00:51:21,800 --> 00:51:23,799
Speaker 1: in a position like you are, if you can find

1128
00:51:23,800 --> 00:51:26,480
Speaker 1: a way to increase your income to help you pay

1129
00:51:26,480 --> 00:51:30,680
Speaker 1: off that credit card debt more quickly and simultaneously keep

1130
00:51:30,680 --> 00:51:33,640
Speaker 1: that Ultima on hand, because it's a reasonably priced car

1131
00:51:33,760 --> 00:51:36,279
Speaker 1: that is going to probably perform well for you for

1132
00:51:36,360 --> 00:51:38,360
Speaker 1: years to come. Well, then that solution just makes the

1133
00:51:38,360 --> 00:51:38,799
Speaker 1: most sense.

1134
00:51:38,920 --> 00:51:41,600
Speaker 2: Yeah. Well, and I mean we talked about this last week,

1135
00:51:41,640 --> 00:51:45,080
Speaker 2: but cutting back, like taking a step into frugality is

1136
00:51:45,080 --> 00:51:48,800
Speaker 2: the most immediate step that you could take. And maybe

1137
00:51:48,840 --> 00:51:51,240
Speaker 2: you have done that, but if you haven't truly gotten

1138
00:51:51,239 --> 00:51:53,839
Speaker 2: serious about cutting back in some of the other things

1139
00:51:53,840 --> 00:51:55,560
Speaker 2: that you're spending money on, I think that could also be.

1140
00:51:56,280 --> 00:51:58,200
Speaker 2: That's the other lever that you can pull, right basically

1141
00:51:58,320 --> 00:52:02,200
Speaker 2: questioning every outgoing expense exactly exactly, But ultimately you don't

1142
00:52:02,239 --> 00:52:06,400
Speaker 2: necessarily you're probably not wanting to live a prolonged lifestyle

1143
00:52:06,480 --> 00:52:09,800
Speaker 2: where it feels like you are depriving yourself of everything.

1144
00:52:09,840 --> 00:52:11,920
Speaker 1: So when in credit card debt and like living that

1145
00:52:12,120 --> 00:52:14,480
Speaker 1: monastic existence for a short put time period, I think

1146
00:52:14,560 --> 00:52:15,200
Speaker 1: it makes sense.

1147
00:52:15,360 --> 00:52:18,200
Speaker 2: Yeah, exactly, Like when you have an end goal in

1148
00:52:18,560 --> 00:52:20,200
Speaker 2: goal in mind, like when you see the light at

1149
00:52:20,200 --> 00:52:22,080
Speaker 2: the end of the tunnel, then it can be a

1150
00:52:22,080 --> 00:52:24,560
Speaker 2: worthwhile pursuit. But living, yes, sticking with that for a

1151
00:52:24,600 --> 00:52:26,640
Speaker 2: long period of time is going to be difficult, and

1152
00:52:27,400 --> 00:52:29,480
Speaker 2: in with that mind, it will be important to find

1153
00:52:29,520 --> 00:52:32,080
Speaker 2: ways to either increase your income, make some more money

1154
00:52:32,080 --> 00:52:34,080
Speaker 2: so that you can pay more than just the minimums

1155
00:52:34,120 --> 00:52:36,440
Speaker 2: on your credit cards. But if you're not able to

1156
00:52:36,480 --> 00:52:38,400
Speaker 2: do that at this point, right like if there's just

1157
00:52:38,440 --> 00:52:40,839
Speaker 2: not enough time left in your schedule, if you are

1158
00:52:41,280 --> 00:52:44,640
Speaker 2: working all the possible hours with no way to increase

1159
00:52:44,640 --> 00:52:46,319
Speaker 2: what it is that you're bringing in every single month,

1160
00:52:46,680 --> 00:52:49,880
Speaker 2: you might want to speak to a nonprofit debt counselor

1161
00:52:49,920 --> 00:52:54,600
Speaker 2: at an affiliate of NFCC, the National Foundation for Credit Counseling,

1162
00:52:55,200 --> 00:52:59,120
Speaker 2: or with a group called Money Management International. Will make

1163
00:52:59,120 --> 00:53:01,640
Speaker 2: sure to link to both those organizations in our show notes.

1164
00:53:02,080 --> 00:53:04,280
Speaker 2: And then, by the way, drive that ultimate for years

1165
00:53:04,400 --> 00:53:07,040
Speaker 2: after you pay that thing off. Once you're able to

1166
00:53:07,040 --> 00:53:09,239
Speaker 2: pay off that credit card debt and you've got to

1167
00:53:09,239 --> 00:53:11,880
Speaker 2: pay it off car, then you're gonna seriously be ready.

1168
00:53:12,040 --> 00:53:14,520
Speaker 2: You're gonna be able to make some big money moves.

1169
00:53:14,680 --> 00:53:17,399
Speaker 2: At that point, you're no longer digging yourself out of

1170
00:53:17,600 --> 00:53:21,000
Speaker 2: a hole. Instead, you're like you're using that shovel to

1171
00:53:21,000 --> 00:53:23,520
Speaker 2: build a mountain for yourself.

1172
00:53:23,520 --> 00:53:25,319
Speaker 1: Most most people start in some sort of a hole,

1173
00:53:25,560 --> 00:53:28,200
Speaker 1: especially if you went to school or you've made financial

1174
00:53:28,200 --> 00:53:30,719
Speaker 1: mistakes like everybody has to dig themselselves out to some

1175
00:53:30,800 --> 00:53:33,560
Speaker 1: degree in armand like you're gonna dig yourself out, you

1176
00:53:33,600 --> 00:53:34,880
Speaker 1: just might need a little bit of help from one

1177
00:53:34,920 --> 00:53:37,040
Speaker 1: of these organizations that Matt mentioned. Those are the places

1178
00:53:37,040 --> 00:53:39,759
Speaker 1: to go. Or you might just need find a way

1179
00:53:39,800 --> 00:53:41,719
Speaker 1: to get a bigger shovel, which is get that they

1180
00:53:41,760 --> 00:53:44,160
Speaker 1: get that income up. Yeah, all right, best of luck,

1181
00:53:44,239 --> 00:53:46,439
Speaker 1: Armond rooting for you, man ur R. Matt. Let's mention,

1182
00:53:46,680 --> 00:53:49,799
Speaker 1: get back to this beer that we had on this episode.

1183
00:53:49,880 --> 00:53:54,319
Speaker 1: This one's called Pyrotechnic Pleasantries by Sour Sellers out of

1184
00:53:55,200 --> 00:54:00,160
Speaker 1: Rancho Cucamonga, speaking of California. Say it, enjoy it, hold

1185
00:54:00,160 --> 00:54:02,040
Speaker 1: it up on the label so I could say it properly.

1186
00:54:02,160 --> 00:54:04,279
Speaker 1: But oh my god, Well, first of all, I want

1187
00:54:04,320 --> 00:54:06,759
Speaker 1: to mention the label because did you ever have you

1188
00:54:06,800 --> 00:54:09,359
Speaker 1: ever seen the Triplets of Bellville? Oh yeah, it's got

1189
00:54:09,400 --> 00:54:10,200
Speaker 1: that style of art.

1190
00:54:10,280 --> 00:54:12,439
Speaker 2: Yeah, yeah, done it. It kind of has like so for

1191
00:54:12,760 --> 00:54:16,040
Speaker 2: everyone else out there. It's a it's an animated short film.

1192
00:54:16,040 --> 00:54:19,640
Speaker 2: It's a movie, but it's got a very unique style

1193
00:54:19,680 --> 00:54:23,960
Speaker 2: of illustration. It's this French illustrated movie about bicyclists, and

1194
00:54:24,040 --> 00:54:26,799
Speaker 2: it's got a bunch of other quirky stuff in it

1195
00:54:26,880 --> 00:54:29,960
Speaker 2: as well. Anyway, all that to say, I like this beer.

1196
00:54:30,080 --> 00:54:32,880
Speaker 2: This is pyrotechnic pleasantries. Joel, what were your thoughts on it?

1197
00:54:33,280 --> 00:54:35,799
Speaker 1: So this is a strawberry sour, so it was like

1198
00:54:35,880 --> 00:54:38,480
Speaker 1: re fermented with strawberries, I believe. And this is a

1199
00:54:38,520 --> 00:54:41,040
Speaker 1: bunch of different beers that they've blended together they made

1200
00:54:41,120 --> 00:54:43,680
Speaker 1: over the years, which just gave it a depth of character,

1201
00:54:43,719 --> 00:54:45,040
Speaker 1: Oh my goodness, which was wonderful.

1202
00:54:45,120 --> 00:54:47,640
Speaker 2: I love. So they've actually got the blend info on

1203
00:54:47,719 --> 00:54:50,359
Speaker 2: the side there, which I love for a data nerd

1204
00:54:50,440 --> 00:54:52,160
Speaker 2: like you, Oh my gosh, I love having those data.

1205
00:54:52,160 --> 00:54:53,479
Speaker 2: So I'm going to go through it real quick. Thirty

1206
00:54:53,520 --> 00:54:57,200
Speaker 2: five percent fifty four month barrel aged brown mixed culture

1207
00:54:57,239 --> 00:54:59,879
Speaker 2: twelve percent. That's like spontaneous four and a half years

1208
00:54:59,880 --> 00:55:02,840
Speaker 2: on that beer. Yes, nineteen of a nineteen month barrel

1209
00:55:02,960 --> 00:55:05,640
Speaker 2: age Sayson And then thirty four percent of this beer

1210
00:55:05,719 --> 00:55:08,240
Speaker 2: is a twenty six month barrel aged golden.

1211
00:55:08,320 --> 00:55:10,160
Speaker 1: So this is like science in a battle.

1212
00:55:10,200 --> 00:55:12,839
Speaker 2: It's like a science experiment. This is the suicide from

1213
00:55:12,880 --> 00:55:13,480
Speaker 2: a chem lab.

1214
00:55:14,440 --> 00:55:16,480
Speaker 1: But a great beer blender knows how to blend all

1215
00:55:16,480 --> 00:55:18,399
Speaker 1: these together and create something special, and they really did

1216
00:55:18,400 --> 00:55:18,600
Speaker 1: on this.

1217
00:55:18,640 --> 00:55:20,360
Speaker 2: There's no way that this isn't good for our digestion.

1218
00:55:20,719 --> 00:55:24,040
Speaker 1: Yeah, and it's so it's so tart and very sweet

1219
00:55:24,080 --> 00:55:26,000
Speaker 1: with the strawberry vibes going on. I think it could

1220
00:55:26,120 --> 00:55:28,960
Speaker 1: probably used a tiny bit more strawberry actually going on,

1221
00:55:29,520 --> 00:55:30,800
Speaker 1: But overall I was thrilled with it.

1222
00:55:30,800 --> 00:55:32,560
Speaker 2: I feel like it had the right amount of strawberry.

1223
00:55:33,440 --> 00:55:34,440
Speaker 1: As far as the fruit that.

1224
00:55:34,400 --> 00:55:35,520
Speaker 2: Was on the nose, I feel like it could have

1225
00:55:35,680 --> 00:55:37,880
Speaker 2: used a touch more sweetness because then I think that

1226
00:55:37,880 --> 00:55:40,480
Speaker 2: sweetness would have pulled that strawberry forward a little bit

1227
00:55:40,560 --> 00:55:41,920
Speaker 2: rather than it feel like it was just kind of

1228
00:55:41,920 --> 00:55:44,960
Speaker 2: there in the background. But it was really aggressive, yeah,

1229
00:55:45,040 --> 00:55:49,000
Speaker 2: you know, acidic, punchy. But man, I really I did

1230
00:55:49,040 --> 00:55:51,239
Speaker 2: really like it. Like the first sip, I was like, ooh,

1231
00:55:51,360 --> 00:55:54,000
Speaker 2: that's that's tart, that's brash.

1232
00:55:54,080 --> 00:55:55,160
Speaker 1: Yeah, made you pucker for sure.

1233
00:55:55,160 --> 00:55:57,040
Speaker 2: But then the more, you know, as I continue to

1234
00:55:57,040 --> 00:55:59,799
Speaker 2: have more SIPs, I enjoyed it just even more and more.

1235
00:56:00,360 --> 00:56:01,640
Speaker 2: Maybe it was the perfect blend.

1236
00:56:01,680 --> 00:56:03,520
Speaker 1: This is one of my favorite styles, and it's something

1237
00:56:03,560 --> 00:56:06,600
Speaker 1: that I feel like because it's a finer, it's a

1238
00:56:06,600 --> 00:56:09,200
Speaker 1: more specialized kind of beer we don't drink as often,

1239
00:56:09,280 --> 00:56:11,919
Speaker 1: and they're more expensive too, so this one. I'm glad

1240
00:56:11,920 --> 00:56:13,399
Speaker 1: I picked this up while we were in California. While

1241
00:56:13,400 --> 00:56:15,440
Speaker 1: I was in California, Yeah, brought it back because you did.

1242
00:56:15,560 --> 00:56:17,440
Speaker 1: It was delicious and we've never had a beer from

1243
00:56:17,480 --> 00:56:19,319
Speaker 1: these guys before, so it's fun to try something from

1244
00:56:19,320 --> 00:56:22,839
Speaker 1: a completely new group of folks, for sure. Yeah, all right, Matt,

1245
00:56:22,880 --> 00:56:24,439
Speaker 1: that's going to do it for this episode. We'll put

1246
00:56:24,440 --> 00:56:26,600
Speaker 1: show notes up on the website at how to money

1247
00:56:26,600 --> 00:56:28,680
Speaker 1: dot com with some of the links that we mentioned

1248
00:56:29,000 --> 00:56:31,160
Speaker 1: in answer some of these questions. And that's right by

1249
00:56:31,160 --> 00:56:33,799
Speaker 1: the way. For if you have a question you want

1250
00:56:33,800 --> 00:56:35,960
Speaker 1: Matt and I to tackle on an upcoming episode, just

1251
00:56:36,040 --> 00:56:38,239
Speaker 1: go to how to money dot com slash ask send

1252
00:56:38,280 --> 00:56:40,719
Speaker 1: your voice memo over. Hopefully we'll take it on the

1253
00:56:40,760 --> 00:56:42,239
Speaker 1: next ask HTAM episode.

1254
00:56:42,320 --> 00:56:43,840
Speaker 2: That's all right, but buddy, that's gonna be it for

1255
00:56:43,920 --> 00:57:01,799
Speaker 2: this one until next time. Best Friends Out, Best Friends Out.