1 00:00:00,120 --> 00:00:02,520 Speaker 1: Welcome to how to Money. I'm Joel and I'm Matt, 2 00:00:02,640 --> 00:00:25,000 Speaker 1: and today we're talking about recession proofing your finances. So, Joel, 3 00:00:25,079 --> 00:00:28,840 Speaker 1: I know how much you love diapers where I'm all 4 00:00:28,840 --> 00:00:32,760 Speaker 1: the time, dude, I'm going to mention a personal fail, 5 00:00:32,920 --> 00:00:35,000 Speaker 1: which is my my wife and I, Kate and I 6 00:00:35,120 --> 00:00:37,720 Speaker 1: we thought that nineteen would be the year that we 7 00:00:37,840 --> 00:00:41,000 Speaker 1: kicked diapers to the curb. Our third daughter just turned two, 8 00:00:41,159 --> 00:00:42,840 Speaker 1: and we thought, you know what, it might be time. 9 00:00:42,840 --> 00:00:45,199 Speaker 1: We think she's she's pretty smart, she's pretty sharp, she's 10 00:00:45,240 --> 00:00:47,160 Speaker 1: pretty with it, and get her on that potty train. 11 00:00:47,200 --> 00:00:49,720 Speaker 1: Band wife, Yes, exactly. Well, she's got two older sisters, 12 00:00:49,760 --> 00:00:51,400 Speaker 1: and we thought with her seeing it all the time, 13 00:00:51,479 --> 00:00:54,600 Speaker 1: she'd be ready for it. And I was really excited 14 00:00:54,600 --> 00:00:56,880 Speaker 1: about being able to cut diapers from the budget because 15 00:00:56,880 --> 00:01:00,280 Speaker 1: we spent around fifty bucks every month on diaper and 16 00:01:00,320 --> 00:01:01,840 Speaker 1: Kate and I talked about it and we decided that 17 00:01:02,040 --> 00:01:04,320 Speaker 1: if we were going to cut diapers, that we would 18 00:01:04,400 --> 00:01:06,479 Speaker 1: keep that amount of money in the budget and then 19 00:01:06,560 --> 00:01:08,080 Speaker 1: just be able to eat a little bit nicer. So 20 00:01:08,080 --> 00:01:11,399 Speaker 1: we're not actually increasing our food budget, but we would 21 00:01:11,440 --> 00:01:14,640 Speaker 1: be able to get say, nicer cheeses, nicer meets the 22 00:01:14,680 --> 00:01:18,319 Speaker 1: sharkutie to get to eat the diaper money. Yeah, exactly, 23 00:01:18,920 --> 00:01:21,720 Speaker 1: but man, we totally failed. We we came back at 24 00:01:21,720 --> 00:01:23,800 Speaker 1: the beginning of the year, beginning of January, and we're 25 00:01:23,840 --> 00:01:26,560 Speaker 1: hoping that, yeah, we'd be able to kick it off. 26 00:01:26,640 --> 00:01:29,320 Speaker 1: But that's not on you. That's on Dotti. Okay, that's 27 00:01:29,319 --> 00:01:31,080 Speaker 1: her fault, and I will talk to her about it. 28 00:01:31,120 --> 00:01:34,000 Speaker 1: She needs upper game. In all fairness though she's only 29 00:01:34,200 --> 00:01:36,759 Speaker 1: twenty four months, and with the other girls, we waited 30 00:01:36,840 --> 00:01:39,199 Speaker 1: until I think like twenty six and maybe twenty eight months, 31 00:01:39,480 --> 00:01:41,000 Speaker 1: but we just we just thought we were ready. We 32 00:01:41,000 --> 00:01:43,640 Speaker 1: thought she could handle it. And really we're most excited 33 00:01:43,640 --> 00:01:45,800 Speaker 1: about being able to cut diapers from the budget. So 34 00:01:46,240 --> 00:01:47,680 Speaker 1: who knows, man, it might be a few more months 35 00:01:47,720 --> 00:01:51,080 Speaker 1: now that we're gonna rock those diapers and no nice cheese. 36 00:01:51,080 --> 00:01:53,640 Speaker 1: Is any parents out there listening, They totally know or 37 00:01:53,680 --> 00:01:57,360 Speaker 1: remember the potty training stage, And it's different for every kid. 38 00:01:57,640 --> 00:02:01,280 Speaker 1: Like I swear, our first outer Selma like overnight, she 39 00:02:01,600 --> 00:02:04,920 Speaker 1: like one accident maybe, but no overnight accidents. It was amazing. 40 00:02:05,000 --> 00:02:07,160 Speaker 1: And then our second daughter still did pretty well, but 41 00:02:07,400 --> 00:02:09,200 Speaker 1: it was completely different. It took a lot longer than 42 00:02:09,200 --> 00:02:11,160 Speaker 1: we thought, and we had to keep wearing the pull 43 00:02:11,240 --> 00:02:13,480 Speaker 1: ups at night. And so it's different for every kid, 44 00:02:13,560 --> 00:02:15,399 Speaker 1: and some kids don't get it till later, and some kids, 45 00:02:15,480 --> 00:02:17,720 Speaker 1: well boys as well, Like yeah, with boys it takes 46 00:02:17,800 --> 00:02:19,919 Speaker 1: much longer. So typically, I mean a lot of times, 47 00:02:19,919 --> 00:02:21,760 Speaker 1: I think boys are around three years old before they 48 00:02:21,760 --> 00:02:24,040 Speaker 1: even consider potty training. But yeah, like it said, it's 49 00:02:24,040 --> 00:02:26,000 Speaker 1: different for all kids. So you're just hoping that Dottie 50 00:02:26,040 --> 00:02:28,880 Speaker 1: was like a bathroom Mozart, like a proud of basically, yeah, 51 00:02:29,040 --> 00:02:31,640 Speaker 1: we we were even ambitious enough to say, do we 52 00:02:31,680 --> 00:02:33,520 Speaker 1: even need to pull up the little toy potty, you know, 53 00:02:33,560 --> 00:02:35,720 Speaker 1: like the little kid one, because she would climb up 54 00:02:35,919 --> 00:02:38,720 Speaker 1: onto the stool and hop up on the on the 55 00:02:38,720 --> 00:02:41,800 Speaker 1: toyle that like the big girls do. Nope, Yeah, huge fail. 56 00:02:42,720 --> 00:02:45,680 Speaker 1: Are speaking of goals, So we're you're well into January 57 00:02:45,720 --> 00:02:47,959 Speaker 1: at this point, but I think it's okay for people 58 00:02:48,000 --> 00:02:50,360 Speaker 1: still to set a goal to kind of improve in 59 00:02:50,360 --> 00:02:53,120 Speaker 1: a way in one way or another. And I think 60 00:02:53,160 --> 00:02:55,359 Speaker 1: sometimes maybe at this point, maybe you're two and a 61 00:02:55,360 --> 00:02:56,880 Speaker 1: half weeks in and you've already failed at a goal 62 00:02:56,960 --> 00:03:00,120 Speaker 1: or two like Dottie did. Right, Dottie completely failed. I 63 00:03:00,160 --> 00:03:02,920 Speaker 1: just fell flat on her face. Yeah, so maybe you 64 00:03:02,960 --> 00:03:05,040 Speaker 1: haven't met your goal. I think, like we talked about 65 00:03:05,080 --> 00:03:07,320 Speaker 1: in the Creating a Money roadmap, sometimes it's those little things. 66 00:03:07,320 --> 00:03:09,280 Speaker 1: It's it's not necessarily the end goal that is the 67 00:03:09,280 --> 00:03:11,359 Speaker 1: good goal to have. It's it's the little incremental things 68 00:03:11,400 --> 00:03:12,720 Speaker 1: that you can do along the way. They're going to 69 00:03:12,760 --> 00:03:15,080 Speaker 1: help you achieve that bigger goal. And one thing I 70 00:03:15,080 --> 00:03:16,880 Speaker 1: wanted to mention that's been kind of helpful to me 71 00:03:17,000 --> 00:03:19,800 Speaker 1: recently is when I really need to buckle down and 72 00:03:19,800 --> 00:03:23,000 Speaker 1: get some work done is putting my phone in airplane mode. 73 00:03:23,280 --> 00:03:26,399 Speaker 1: And just like I mentioned a long time ago that 74 00:03:26,480 --> 00:03:28,240 Speaker 1: it's been helpful for me to put my phone in 75 00:03:28,280 --> 00:03:30,720 Speaker 1: gray scale mode because I just want to look at 76 00:03:30,760 --> 00:03:33,760 Speaker 1: it less. It just makes me less interested in looking 77 00:03:33,800 --> 00:03:36,760 Speaker 1: at Instagram or Facebook. In the same way, get if 78 00:03:36,800 --> 00:03:38,360 Speaker 1: I really want to buffle down at work, it makes 79 00:03:38,400 --> 00:03:40,720 Speaker 1: it look like a kindle. Yeah, exactly, tell you that 80 00:03:40,720 --> 00:03:44,880 Speaker 1: I got my kindle by all right? Anyway, sorry to interrupt. 81 00:03:45,560 --> 00:03:47,080 Speaker 1: So yeah, I mean, I think for anybody that really 82 00:03:47,080 --> 00:03:48,960 Speaker 1: wants to buffle down and get something done and they 83 00:03:48,960 --> 00:03:51,160 Speaker 1: feel like their phone is constantly distracting them, you know, 84 00:03:51,200 --> 00:03:54,560 Speaker 1: set an hour or two hours or even just thirty 85 00:03:54,600 --> 00:03:57,200 Speaker 1: minutes in a row of having your phone on airplane mode, 86 00:03:57,360 --> 00:03:59,560 Speaker 1: you'll just kind of forget that it's even there, and 87 00:03:59,760 --> 00:04:02,200 Speaker 1: you'll you'll actually get more done because we don't realize 88 00:04:02,200 --> 00:04:04,200 Speaker 1: how how often we're interrupted by our phone, by a 89 00:04:04,200 --> 00:04:06,800 Speaker 1: text message, by notification, by an alert, and so just 90 00:04:06,880 --> 00:04:08,600 Speaker 1: kind of putting it completely out of sight, out of 91 00:04:08,600 --> 00:04:10,280 Speaker 1: mind is like a great way to kind of boost 92 00:04:10,280 --> 00:04:12,800 Speaker 1: your productivity. Yeah, man, I totally agree. You know, and 93 00:04:12,880 --> 00:04:15,320 Speaker 1: the past few months, I've actually had my phone on 94 00:04:15,760 --> 00:04:17,919 Speaker 1: when it's on silent mode that it doesn't vibrate, so 95 00:04:17,920 --> 00:04:20,800 Speaker 1: it's basically completely silent. Which the reason I did that 96 00:04:20,839 --> 00:04:22,679 Speaker 1: was because I would have my phone sitting on my desk, 97 00:04:23,160 --> 00:04:25,000 Speaker 1: and you know, you get all the spam calls and 98 00:04:25,040 --> 00:04:26,800 Speaker 1: you can recognize them because their area codes that you 99 00:04:26,839 --> 00:04:29,880 Speaker 1: don't recognize. But I still would reach over towards it 100 00:04:29,920 --> 00:04:31,640 Speaker 1: to silence. It would hit the little button to make 101 00:04:31,640 --> 00:04:33,960 Speaker 1: it stop vibrating because I don't want to burn my battery. 102 00:04:34,520 --> 00:04:37,280 Speaker 1: But just the fact of reaching towards my phone, I 103 00:04:37,320 --> 00:04:39,240 Speaker 1: would kind of pick it up and then hop over 104 00:04:39,279 --> 00:04:41,839 Speaker 1: to an app and it would Yeah, it was another distraction. 105 00:04:41,960 --> 00:04:44,400 Speaker 1: It's a total attention breaker. Yeah, but that being said, 106 00:04:44,440 --> 00:04:46,560 Speaker 1: it doesn't break my attention nearly as much if it 107 00:04:46,600 --> 00:04:48,360 Speaker 1: just kind of pops up if I see the notification, 108 00:04:48,560 --> 00:04:50,279 Speaker 1: because I won't reach for it. For for me, it 109 00:04:50,320 --> 00:04:52,599 Speaker 1: was the physical act of reaching towards it is what 110 00:04:52,680 --> 00:04:54,880 Speaker 1: threw me off. But I can kind of dart my 111 00:04:54,920 --> 00:04:56,960 Speaker 1: eyes over and see that it's just an unknown caller 112 00:04:57,080 --> 00:04:59,200 Speaker 1: or a number I don't recognize and keep moving on 113 00:04:59,240 --> 00:05:00,800 Speaker 1: with life. But yeah, with you, man, if I need 114 00:05:00,800 --> 00:05:03,640 Speaker 1: to really buckle down, flipping it over to airplane mode 115 00:05:03,680 --> 00:05:06,520 Speaker 1: is is truly the only way just to to get quality, 116 00:05:06,680 --> 00:05:09,240 Speaker 1: deep work done, which is which is key. Yeah, And 117 00:05:09,240 --> 00:05:12,320 Speaker 1: sometimes honestly, doing something like that actually means you might 118 00:05:12,360 --> 00:05:14,800 Speaker 1: have fewer hours of work that you actually have to 119 00:05:14,800 --> 00:05:17,920 Speaker 1: put in because if you're more productive while you're working 120 00:05:17,960 --> 00:05:19,800 Speaker 1: with your phone and airplane mode, you might not have 121 00:05:19,839 --> 00:05:21,800 Speaker 1: to work as many hours in the day because the 122 00:05:21,839 --> 00:05:23,720 Speaker 1: hours you're working are so much more productive. Now you 123 00:05:23,720 --> 00:05:25,599 Speaker 1: don't have that restart time. They say that anytime you 124 00:05:25,600 --> 00:05:27,480 Speaker 1: have a break in your concentration like that, sometimes they 125 00:05:27,480 --> 00:05:29,600 Speaker 1: can take up to fifteen minutes. They kind of get 126 00:05:29,640 --> 00:05:31,719 Speaker 1: your train of thought back completely where you're back in 127 00:05:31,760 --> 00:05:34,920 Speaker 1: the groove. And man, I completely agree with that, sweet Matt, 128 00:05:34,960 --> 00:05:37,680 Speaker 1: So let's tell everybody the beer we're drinking in today's episode. 129 00:05:37,800 --> 00:05:40,719 Speaker 1: Today's beer was sent to us by a listener, Philip, 130 00:05:40,880 --> 00:05:44,960 Speaker 1: from Chico, California, which is where Sierra Nevada's base. So 131 00:05:45,160 --> 00:05:47,080 Speaker 1: I don't think he works there, but he lives there, 132 00:05:47,120 --> 00:05:49,440 Speaker 1: and I love that he sent us this beer. In particular, 133 00:05:49,440 --> 00:05:54,320 Speaker 1: Maths Homer. Yeah, this beer is called Resilience, Butte County 134 00:05:54,400 --> 00:05:57,560 Speaker 1: Proud I p A. And if you're not aware, there 135 00:05:57,560 --> 00:06:00,560 Speaker 1: have been a lot of wildfires in California, UH, and 136 00:06:00,640 --> 00:06:03,719 Speaker 1: a lot of the employees of the brewery Sierra Nevada, 137 00:06:03,800 --> 00:06:05,760 Speaker 1: which is one of the biggest craft breweries in the 138 00:06:05,839 --> 00:06:09,960 Speaker 1: nation right were affected, were displaced by the wildfires surrounding 139 00:06:10,000 --> 00:06:12,680 Speaker 1: their brewery and surrounding where their employees live. And so 140 00:06:13,000 --> 00:06:16,160 Speaker 1: Sierra Nevada decided to brew this beer Resilience UH and 141 00:06:16,240 --> 00:06:19,760 Speaker 1: donate all the proceeds to a fund that helps those 142 00:06:19,800 --> 00:06:22,400 Speaker 1: that were impacted by by the fire. And the really 143 00:06:22,400 --> 00:06:25,360 Speaker 1: cool thing, Matt, my favorite part about this story of 144 00:06:25,360 --> 00:06:29,600 Speaker 1: this beer is that other breweries, hundreds of other breweries 145 00:06:29,640 --> 00:06:33,520 Speaker 1: around the country have banded around Sierra Nevada to brew 146 00:06:33,720 --> 00:06:37,240 Speaker 1: this same recipe at their breweries and they're selling it 147 00:06:37,440 --> 00:06:39,880 Speaker 1: and doing the same exact thing, So totally awesome. I 148 00:06:39,920 --> 00:06:42,080 Speaker 1: went to a brewery recently and they had their own 149 00:06:42,200 --> 00:06:44,719 Speaker 1: version of Resilience. It's the same exact recipe because Sierra 150 00:06:44,800 --> 00:06:46,760 Speaker 1: about to put the recipe out there for everyone to use, 151 00:06:47,200 --> 00:06:50,400 Speaker 1: and they say so, they're calling it Resilience and and 152 00:06:50,440 --> 00:06:52,440 Speaker 1: they're saying that all the proceeds are going to to 153 00:06:52,520 --> 00:06:55,400 Speaker 1: the same campfire fund helping people that were impacted by 154 00:06:55,400 --> 00:06:58,039 Speaker 1: the by the fires in California. Yeah. Man, I love that. 155 00:06:58,080 --> 00:06:59,880 Speaker 1: And even if you don't love craft beer, right you 156 00:07:00,000 --> 00:07:02,960 Speaker 1: and admire the community and the support that is rallying 157 00:07:03,000 --> 00:07:05,480 Speaker 1: together in order to help change people's lives that were 158 00:07:05,480 --> 00:07:08,120 Speaker 1: affected by those fires. I love that. Yeah, such a 159 00:07:08,160 --> 00:07:11,400 Speaker 1: cool way to use the beer. And I already love 160 00:07:11,440 --> 00:07:15,000 Speaker 1: the packaging. It kind of reflects the beauty of that 161 00:07:15,120 --> 00:07:17,040 Speaker 1: part of the world. And also just like those roots 162 00:07:17,120 --> 00:07:18,880 Speaker 1: kind of coming out of the name Resilience on the 163 00:07:18,920 --> 00:07:22,480 Speaker 1: can reminds you of that community, grassroots effort, the roots 164 00:07:22,520 --> 00:07:25,000 Speaker 1: run deep. I love it. It's got the Yosemite look, 165 00:07:25,000 --> 00:07:28,520 Speaker 1: which is basically my favorite place on Earth. So I 166 00:07:28,560 --> 00:07:31,800 Speaker 1: already love it. But let's go ahead and taste it. Man, cheers, Man, dude, 167 00:07:31,800 --> 00:07:34,360 Speaker 1: that's awesome. And before we mentioned our one word, I 168 00:07:34,400 --> 00:07:35,920 Speaker 1: wanted to share why we have a beer every week, 169 00:07:35,960 --> 00:07:38,640 Speaker 1: which is craft beer is something that you and I love, obviously, 170 00:07:39,160 --> 00:07:41,720 Speaker 1: and so we have a beer while we talk about money, 171 00:07:41,880 --> 00:07:43,720 Speaker 1: and it's just one of the things that we care about, 172 00:07:43,840 --> 00:07:45,880 Speaker 1: and it's one of the things that we're not depriving 173 00:07:45,920 --> 00:07:48,080 Speaker 1: our life of. It is something that we value and 174 00:07:48,120 --> 00:07:50,160 Speaker 1: because that we spend money, right, Like we we're not 175 00:07:50,200 --> 00:07:52,640 Speaker 1: looking to cut back in every single aspect of life, 176 00:07:52,720 --> 00:07:54,800 Speaker 1: but we try to be intentional with our money. Craft 177 00:07:54,800 --> 00:07:56,800 Speaker 1: beer is one of the ways that we are intentional 178 00:07:56,800 --> 00:07:59,000 Speaker 1: and do spend money. So just keep that in mind 179 00:07:59,040 --> 00:08:01,240 Speaker 1: when you're seeking to kind of get your financial life 180 00:08:01,240 --> 00:08:03,520 Speaker 1: and order right. It's okay to spend money, just make 181 00:08:03,520 --> 00:08:06,640 Speaker 1: sure you're spending money on the things that matter to you, alright. Also, 182 00:08:06,880 --> 00:08:09,600 Speaker 1: what's your one word to describe this beer? Alright? My 183 00:08:09,640 --> 00:08:12,000 Speaker 1: word is gonna involve the use of a hyphen So 184 00:08:12,040 --> 00:08:15,040 Speaker 1: I'm going old school. I don't even know if that's hyphenated, 185 00:08:15,320 --> 00:08:17,440 Speaker 1: but I'm going for it. That's not only way to 186 00:08:17,440 --> 00:08:18,880 Speaker 1: get both those words. You just say Yeah, you just 187 00:08:18,880 --> 00:08:20,200 Speaker 1: wanted it to be hyphen it is so you can 188 00:08:20,200 --> 00:08:23,960 Speaker 1: get two words and cheater. Alright, Matt, what word would 189 00:08:24,080 --> 00:08:26,720 Speaker 1: you use to describe this week's beery? Man, My word 190 00:08:26,760 --> 00:08:28,840 Speaker 1: is multi, So a little bit later on the show, 191 00:08:28,840 --> 00:08:31,320 Speaker 1: we'll get into why we use those words to describe 192 00:08:31,320 --> 00:08:33,800 Speaker 1: this beer, but for now, let's get to the subject 193 00:08:33,840 --> 00:08:36,760 Speaker 1: at hand, Matt, recession proofing your finances. And we really 194 00:08:36,760 --> 00:08:39,040 Speaker 1: wanted to tackle this topic, Matt, because there are so 195 00:08:39,080 --> 00:08:42,520 Speaker 1: many people doom and gloom naysayers that saying that the 196 00:08:42,559 --> 00:08:45,880 Speaker 1: economy is gonna crash any moment, And truly, the economy 197 00:08:45,880 --> 00:08:48,719 Speaker 1: has been doing really well for the past pretty much decade, right, 198 00:08:48,920 --> 00:08:51,400 Speaker 1: And I think it's really important for our listeners to 199 00:08:51,440 --> 00:08:54,160 Speaker 1: know that that we shouldn't be paying super close attention 200 00:08:54,280 --> 00:08:57,880 Speaker 1: to these predictions of a recession, but it is good 201 00:08:57,960 --> 00:09:01,480 Speaker 1: to be prepared right for whatever might occur, And in particular, 202 00:09:01,559 --> 00:09:04,880 Speaker 1: preparing for a recession is really more than anything being 203 00:09:04,880 --> 00:09:07,320 Speaker 1: prepared for short term bumps in the road. And so 204 00:09:07,400 --> 00:09:09,760 Speaker 1: that's kind of what we're going to cover in this episode. Yeah, 205 00:09:09,760 --> 00:09:11,920 Speaker 1: there can be two extremes when it comes to our 206 00:09:11,960 --> 00:09:14,400 Speaker 1: outlook towards the coming years of our economy. Right, you 207 00:09:14,400 --> 00:09:19,120 Speaker 1: can either be overly positive and optimistic due to near sightedness, 208 00:09:19,120 --> 00:09:21,880 Speaker 1: thinking that our current situation will continue on like it 209 00:09:21,920 --> 00:09:26,720 Speaker 1: has forever, which is like human nature, which is human nature. Yeah, 210 00:09:27,000 --> 00:09:28,320 Speaker 1: so you might think you will continue to get those 211 00:09:28,360 --> 00:09:30,040 Speaker 1: raises at work, you might get great returns to the 212 00:09:30,040 --> 00:09:32,040 Speaker 1: stock market, might think that gas prices are going to 213 00:09:32,080 --> 00:09:34,160 Speaker 1: continue to go down because that's what's happening right now. 214 00:09:34,720 --> 00:09:37,280 Speaker 1: Or he might be overly negative in thinking that the 215 00:09:37,320 --> 00:09:39,640 Speaker 1: market is going to crash. You know, just like you said, 216 00:09:39,679 --> 00:09:41,960 Speaker 1: you like the naysayers. We think that it might just 217 00:09:42,040 --> 00:09:44,520 Speaker 1: be too good to be true. And either way, we 218 00:09:44,600 --> 00:09:47,360 Speaker 1: can't control our economy. We can't control the markets, but 219 00:09:47,440 --> 00:09:51,120 Speaker 1: what we can control our our personal finances. This reminds 220 00:09:51,120 --> 00:09:53,959 Speaker 1: me too of Stephen Covey. He's got that that classic books, 221 00:09:53,960 --> 00:09:56,520 Speaker 1: Seven Habits of Highly Effective People, and he talks about 222 00:09:56,520 --> 00:09:58,840 Speaker 1: how you have your circle of concern. Right, there's a 223 00:09:58,880 --> 00:10:00,920 Speaker 1: lot of things that impact you and that you are 224 00:10:00,960 --> 00:10:03,760 Speaker 1: interested in and that concern you. However, within that circle 225 00:10:03,800 --> 00:10:06,760 Speaker 1: of concern, there's a smaller circle, which is your circle 226 00:10:06,840 --> 00:10:10,080 Speaker 1: of influence. And the idea is to focus on the 227 00:10:10,080 --> 00:10:12,280 Speaker 1: things that you can control. Focus on the things that 228 00:10:12,320 --> 00:10:15,800 Speaker 1: you have influence over, and that's personal finance. Right, Like 229 00:10:15,840 --> 00:10:18,400 Speaker 1: you can read all the news reports, you can follow 230 00:10:18,440 --> 00:10:21,560 Speaker 1: the stocks and the charts all you want, but that's 231 00:10:21,559 --> 00:10:24,400 Speaker 1: not going to change what the market actually does. What 232 00:10:24,520 --> 00:10:27,680 Speaker 1: you can change, though, are your own personal finances. And 233 00:10:27,760 --> 00:10:29,679 Speaker 1: before we get into the nuts and bolts of how 234 00:10:29,720 --> 00:10:33,200 Speaker 1: you can prepare your personal and your families finances for 235 00:10:33,240 --> 00:10:35,800 Speaker 1: a potential recession, I did want to just quickly address 236 00:10:35,880 --> 00:10:38,800 Speaker 1: to like a mental mindset shift that needs to take 237 00:10:38,840 --> 00:10:41,240 Speaker 1: place for a lot of people. If you're somebody that 238 00:10:41,280 --> 00:10:44,439 Speaker 1: logs onto CNBC every day or has the news on 239 00:10:44,760 --> 00:10:49,160 Speaker 1: and here's people crying about potential recession and predicting the 240 00:10:49,240 --> 00:10:51,440 Speaker 1: all the potential bad things that can happen. That can 241 00:10:51,480 --> 00:10:53,679 Speaker 1: be a recipe for you making moves that are not 242 00:10:53,720 --> 00:10:56,080 Speaker 1: in the best interest of your long term financial future. 243 00:10:56,360 --> 00:10:59,760 Speaker 1: So be careful about the news that you're consuming and 244 00:11:00,160 --> 00:11:02,760 Speaker 1: people that you're listening to, because if you adopt more 245 00:11:02,800 --> 00:11:05,480 Speaker 1: of a long term strategy towards your personal finances, those 246 00:11:05,559 --> 00:11:08,280 Speaker 1: day to day naysayers, it really they have a lot 247 00:11:08,360 --> 00:11:10,839 Speaker 1: less impact on what you actually do with your money. 248 00:11:11,240 --> 00:11:13,360 Speaker 1: And so after the break, we're gonna talk about some 249 00:11:13,400 --> 00:11:16,520 Speaker 1: specific things that you can do to recession proof your finances. 250 00:11:16,600 --> 00:11:18,880 Speaker 1: And again, these are things that you can do proactively 251 00:11:19,320 --> 00:11:31,079 Speaker 1: versus reacting to the news and the market. So there 252 00:11:31,120 --> 00:11:33,120 Speaker 1: are a lot of important things you need to consider 253 00:11:33,280 --> 00:11:36,000 Speaker 1: when your recession proofing your finances, and the first one 254 00:11:36,120 --> 00:11:39,360 Speaker 1: is to build a strong emergency fund. If you feel 255 00:11:39,360 --> 00:11:42,000 Speaker 1: like a recession might impact you in a meaningful way, 256 00:11:42,320 --> 00:11:45,480 Speaker 1: it's really important to squirrel away more cash. When the 257 00:11:45,520 --> 00:11:48,520 Speaker 1: economy is roaring, an emergency fund is still meaningful, right, 258 00:11:48,559 --> 00:11:50,640 Speaker 1: We've talked about that before the show, but it's even 259 00:11:50,720 --> 00:11:54,199 Speaker 1: more meaningful when we're talking about a potential recession because 260 00:11:54,360 --> 00:11:57,880 Speaker 1: in the event of job loss or decreased pay or 261 00:11:58,160 --> 00:12:00,760 Speaker 1: fewer hours that you're able to work for your incurrent 262 00:12:00,760 --> 00:12:03,640 Speaker 1: employer because of a recession, it's important to have kind 263 00:12:03,640 --> 00:12:06,200 Speaker 1: of more money, uh scrolled away in your bank account 264 00:12:06,280 --> 00:12:07,960 Speaker 1: so that you can be prepared. So how much we're 265 00:12:07,960 --> 00:12:09,640 Speaker 1: talking about here, we're talking about like a hundred bucks 266 00:12:10,000 --> 00:12:12,360 Speaker 1: bucks that won't get you very far usually, and so 267 00:12:12,480 --> 00:12:15,000 Speaker 1: typically the sort of initial emergency fund that you want 268 00:12:15,000 --> 00:12:16,640 Speaker 1: to put together is like a thousand bucks, right, A 269 00:12:16,640 --> 00:12:19,679 Speaker 1: thousand dollars will get you far, but ideally we're talking 270 00:12:19,720 --> 00:12:22,079 Speaker 1: three to six months, maybe even a little bit more 271 00:12:22,120 --> 00:12:24,080 Speaker 1: if you like to have a little more margin, a 272 00:12:24,080 --> 00:12:25,640 Speaker 1: little more of a buffer, and when it comes to 273 00:12:25,679 --> 00:12:27,960 Speaker 1: your finances, but at least three to six months of 274 00:12:28,000 --> 00:12:30,360 Speaker 1: expenses is what you want to have when it comes 275 00:12:30,400 --> 00:12:34,319 Speaker 1: to setting aside money for a strong emergency fund. Yeah, 276 00:12:34,400 --> 00:12:36,560 Speaker 1: for a lot of years, cash has been considered like 277 00:12:36,559 --> 00:12:39,800 Speaker 1: a terrible investment, and rightly so, it's not an investment 278 00:12:39,800 --> 00:12:42,040 Speaker 1: at all, right, right, and for rightly so right for 279 00:12:42,080 --> 00:12:44,840 Speaker 1: that reason, and because returns on cash have been really low, 280 00:12:44,920 --> 00:12:47,640 Speaker 1: right the low interest rates paid out on cash accounts. 281 00:12:47,640 --> 00:12:49,840 Speaker 1: But in the current state of things, interest rates are 282 00:12:49,920 --> 00:12:52,520 Speaker 1: rising on the savings accounts, and so it's not actually 283 00:12:52,559 --> 00:12:54,760 Speaker 1: a terrible place to put your money right now. Um. So, 284 00:12:54,840 --> 00:12:57,480 Speaker 1: at the same time that it's not a terrible place 285 00:12:57,520 --> 00:12:59,839 Speaker 1: to store your money, it's also more important to put 286 00:12:59,840 --> 00:13:02,760 Speaker 1: your money there because of a potential recession and because 287 00:13:02,760 --> 00:13:04,439 Speaker 1: of the impact that could have on you and your family. 288 00:13:04,640 --> 00:13:07,920 Speaker 1: And we did an entire episode dedicated towards setting aside 289 00:13:07,960 --> 00:13:10,560 Speaker 1: money for an emergency fund. And again, that might mean 290 00:13:10,880 --> 00:13:13,440 Speaker 1: investing less and saving more in the short term, and 291 00:13:13,480 --> 00:13:15,520 Speaker 1: that is okay, But but look that one up. That's 292 00:13:15,559 --> 00:13:18,320 Speaker 1: episode number twenty one where we talk about everything you 293 00:13:18,320 --> 00:13:20,840 Speaker 1: need to know about an emergency fund. Yeah, and speaking 294 00:13:20,880 --> 00:13:24,480 Speaker 1: of investing less that it might make sense to potentially 295 00:13:24,480 --> 00:13:27,440 Speaker 1: back off your IRA contributions or your four oh one 296 00:13:27,520 --> 00:13:30,640 Speaker 1: K contributions through an employer. Let's say you're investing tend 297 00:13:30,640 --> 00:13:32,440 Speaker 1: to twelve percent of your pay in a four oh 298 00:13:32,520 --> 00:13:35,520 Speaker 1: one K, you're backing that automatic deduction off to like 299 00:13:35,600 --> 00:13:38,160 Speaker 1: six percent or wherever it is, you know, just making 300 00:13:38,160 --> 00:13:40,320 Speaker 1: sure you of course get the company match through your 301 00:13:40,320 --> 00:13:44,520 Speaker 1: employer if priority exactly, and then after that making sure 302 00:13:44,559 --> 00:13:46,600 Speaker 1: that you're not investing any more than that until you 303 00:13:46,600 --> 00:13:48,480 Speaker 1: feel like your emergency fund is where you want it 304 00:13:48,480 --> 00:13:50,960 Speaker 1: to be, excellent man. And the next you want to 305 00:13:51,000 --> 00:13:54,280 Speaker 1: attack high interest rate debt and don't take out more debt. 306 00:13:54,320 --> 00:13:56,320 Speaker 1: And so this makes sense from a number standpoint, right, 307 00:13:56,320 --> 00:13:58,199 Speaker 1: from a number is an interest rate standpoint, you want 308 00:13:58,200 --> 00:14:00,040 Speaker 1: to attack the loans that you have to have the 309 00:14:00,080 --> 00:14:03,280 Speaker 1: highest interest rate. If a recession hits, it's so important 310 00:14:03,320 --> 00:14:05,800 Speaker 1: to tackle that high interest rate debt. That's the most important. 311 00:14:06,040 --> 00:14:08,719 Speaker 1: Let's say you've got five thousand dollars in student loan 312 00:14:08,760 --> 00:14:11,480 Speaker 1: debt at a three percent rate and ten thousand dollars 313 00:14:11,480 --> 00:14:14,040 Speaker 1: of credit card debt at a nineteen percent interest rate. 314 00:14:14,320 --> 00:14:17,640 Speaker 1: I think it makes right, which could be I think 315 00:14:17,679 --> 00:14:19,320 Speaker 1: it makes a lot more sense for people to try 316 00:14:19,320 --> 00:14:22,360 Speaker 1: to tackle that credit card debt because a three percent 317 00:14:22,360 --> 00:14:25,720 Speaker 1: interest rate isn't gonna kill you, but nine interest rate is. 318 00:14:26,120 --> 00:14:28,840 Speaker 1: Ultimately it's gonna crush you because it's really hard to 319 00:14:28,840 --> 00:14:31,720 Speaker 1: gain an advantage. I would recommend putting every extra dollar 320 00:14:31,800 --> 00:14:34,360 Speaker 1: that you have towards a really high interest rate debt 321 00:14:34,400 --> 00:14:38,280 Speaker 1: like that before attacking anything with a super low interest rate. Yeah, 322 00:14:38,280 --> 00:14:40,280 Speaker 1: you definitely need to be smart about it. Yeah, and 323 00:14:40,480 --> 00:14:43,360 Speaker 1: you also mentioned not taking out more debt. I think 324 00:14:43,360 --> 00:14:46,640 Speaker 1: a lot of people think that taking out a home 325 00:14:46,680 --> 00:14:50,160 Speaker 1: equity loan or refinancing your house that now is a 326 00:14:50,200 --> 00:14:52,320 Speaker 1: good time to do that. And if you're actually gonna 327 00:14:52,360 --> 00:14:55,040 Speaker 1: lower your rate and get better terms, it might still 328 00:14:55,040 --> 00:14:56,760 Speaker 1: make sense for you. But you don't want to take 329 00:14:56,800 --> 00:14:59,880 Speaker 1: on more debt, and so doing a cash out refinance 330 00:15:00,040 --> 00:15:02,680 Speaker 1: on your personal home in order to have some extra 331 00:15:02,680 --> 00:15:05,200 Speaker 1: cash to pad your lifestyle, well, that ultimately is going 332 00:15:05,240 --> 00:15:08,120 Speaker 1: to bite you in the end. Usually you're refinancing into 333 00:15:08,440 --> 00:15:11,560 Speaker 1: longer term debt at a higher rate and with a 334 00:15:11,640 --> 00:15:15,080 Speaker 1: higher principal balance, So you definitely want to stay away 335 00:15:15,080 --> 00:15:17,760 Speaker 1: from taking out more debt when we're talking about recession 336 00:15:17,840 --> 00:15:21,120 Speaker 1: proofing your finances. And the next make yourself an invaluable 337 00:15:21,160 --> 00:15:23,840 Speaker 1: employee at wherever you work, right, and then just make 338 00:15:23,880 --> 00:15:26,320 Speaker 1: hay while the sun shines. Like you're not guaranteed to 339 00:15:26,400 --> 00:15:28,960 Speaker 1: keep that job. You don't know how long that's gonna last. Right, 340 00:15:29,080 --> 00:15:30,960 Speaker 1: And so now is just not the time to slock 341 00:15:31,000 --> 00:15:33,320 Speaker 1: off focus on your career, especially if you start to 342 00:15:33,360 --> 00:15:37,400 Speaker 1: see signs of a potential recession potential bearer market coming up. 343 00:15:37,680 --> 00:15:39,400 Speaker 1: You don't want to slack off at work, right, Like, 344 00:15:39,440 --> 00:15:41,920 Speaker 1: this is the time to maybe leads initiatives and do 345 00:15:42,000 --> 00:15:44,880 Speaker 1: something where you're even stepping beyond the role that you 346 00:15:44,920 --> 00:15:48,280 Speaker 1: currently have to take on more responsibility and hopefully that 347 00:15:48,280 --> 00:15:51,680 Speaker 1: will just cement your position in your place at your employer. Yeah, 348 00:15:51,720 --> 00:15:54,200 Speaker 1: you never want to be the person that says, that's 349 00:15:54,200 --> 00:15:57,720 Speaker 1: not my job description or that's not really what I do, 350 00:15:58,120 --> 00:16:01,760 Speaker 1: and taking any opportunity to make yourself invaluable to make 351 00:16:01,800 --> 00:16:05,480 Speaker 1: your employer realize that they need you. You want to 352 00:16:05,480 --> 00:16:07,800 Speaker 1: be the least expendable person there. That's that's your goal 353 00:16:08,120 --> 00:16:09,880 Speaker 1: and I think that's a really important thing to to 354 00:16:09,880 --> 00:16:11,960 Speaker 1: think about in the line of a potential recession. Probably 355 00:16:11,960 --> 00:16:13,960 Speaker 1: wouldn't hurt Ntill like SHOWU with doughnuts either, right, you know, 356 00:16:14,040 --> 00:16:16,200 Speaker 1: like if Joel's always showing up with donuts but Matt 357 00:16:16,280 --> 00:16:18,200 Speaker 1: never brings the donuts and they both do equal amounts 358 00:16:18,200 --> 00:16:20,400 Speaker 1: of work, well we know who's on the chopping. Matt 359 00:16:20,480 --> 00:16:24,200 Speaker 1: might get axed again. On the topic of employment, Matt, 360 00:16:24,280 --> 00:16:27,280 Speaker 1: if you can create an additional stream of income by 361 00:16:27,440 --> 00:16:30,280 Speaker 1: putting together a side hustle, that you might even be 362 00:16:30,280 --> 00:16:32,480 Speaker 1: able to convert it into a full fledged business in 363 00:16:32,520 --> 00:16:35,440 Speaker 1: the event of a job loss. I think having some 364 00:16:35,480 --> 00:16:38,760 Speaker 1: sort of side hustle, side income, multiple streams of income. 365 00:16:38,920 --> 00:16:40,520 Speaker 1: You know, we talk about real estate on the show, 366 00:16:40,560 --> 00:16:42,680 Speaker 1: and that's been helpful. If you could rent out a 367 00:16:42,760 --> 00:16:45,080 Speaker 1: room in your house on Airbnb, whatever it is. A 368 00:16:45,160 --> 00:16:48,240 Speaker 1: side hustle and multiple streams of income, those are great 369 00:16:48,280 --> 00:16:50,120 Speaker 1: things to to think about, really, And we've got a 370 00:16:50,160 --> 00:16:53,320 Speaker 1: whole episode dedicated to side hustles. That's episode number thirty five. 371 00:16:53,440 --> 00:16:56,080 Speaker 1: You can check out creating a Dope side Hustle, which 372 00:16:56,120 --> 00:16:57,920 Speaker 1: is kind of funny, right, Like the reason we titled 373 00:16:57,960 --> 00:17:01,200 Speaker 1: it that is because not all hustles are created equally, 374 00:17:01,240 --> 00:17:03,040 Speaker 1: and we wanted to shine a light on that, because 375 00:17:03,040 --> 00:17:06,040 Speaker 1: there are some side hustles that are kind of dead end, right, 376 00:17:06,080 --> 00:17:08,280 Speaker 1: and then there's some side hustles that could lead, like 377 00:17:08,320 --> 00:17:10,560 Speaker 1: you said, Joel, to an actual business. And dude, this 378 00:17:10,640 --> 00:17:12,680 Speaker 1: is exactly what Kate and I did ten years ago, 379 00:17:13,000 --> 00:17:15,399 Speaker 1: back when the Great Recession hit. And you know, two 380 00:17:15,440 --> 00:17:18,600 Speaker 1: thousand and eight, we started our photography business in the 381 00:17:18,640 --> 00:17:21,600 Speaker 1: midst of a recession, which is crazy, right, but that's 382 00:17:21,640 --> 00:17:24,119 Speaker 1: the whole reason we went that direction. The company I 383 00:17:24,160 --> 00:17:27,200 Speaker 1: was working for is a small advertising agency. We weren't 384 00:17:27,240 --> 00:17:29,000 Speaker 1: doing so great at the time. We were losing some 385 00:17:29,040 --> 00:17:30,720 Speaker 1: clients that we you know, we lost a couple of 386 00:17:30,760 --> 00:17:32,720 Speaker 1: big ones, and I kind of saw the writing on 387 00:17:32,760 --> 00:17:35,320 Speaker 1: the wall. I didn't necessarily think I was gonna get fired, 388 00:17:35,400 --> 00:17:36,960 Speaker 1: but I also knew it wasn't my calling. I wasn't 389 00:17:36,960 --> 00:17:39,560 Speaker 1: having a great time in my position there, and so 390 00:17:39,800 --> 00:17:42,240 Speaker 1: finding an outlet where I can make money and find 391 00:17:42,240 --> 00:17:43,800 Speaker 1: all the things that you're looking for in a job 392 00:17:44,080 --> 00:17:47,320 Speaker 1: on the side was incredibly valuable for us. I was 393 00:17:47,359 --> 00:17:50,120 Speaker 1: able to keep those both going for gosh, maybe about 394 00:17:50,119 --> 00:17:52,119 Speaker 1: six months, where I kind of had this side hustle 395 00:17:52,160 --> 00:17:54,240 Speaker 1: going on, but after that we went full on, went 396 00:17:54,280 --> 00:17:56,920 Speaker 1: full time and I've been doing photography full time for 397 00:17:56,960 --> 00:17:59,760 Speaker 1: over ten years now, which is honestly crazy to even 398 00:17:59,800 --> 00:18:02,320 Speaker 1: say allowed that I haven't had a real job and 399 00:18:02,400 --> 00:18:05,360 Speaker 1: ten years, but man, I wouldn't have traded it for 400 00:18:05,440 --> 00:18:09,879 Speaker 1: almost anything. That's awesome, man. And And also on the 401 00:18:09,920 --> 00:18:13,160 Speaker 1: work note, it's important to have your resume ready and 402 00:18:13,240 --> 00:18:15,560 Speaker 1: to you know, reach out to the people in your 403 00:18:15,560 --> 00:18:18,840 Speaker 1: network if job loss is a real potential for you. 404 00:18:19,119 --> 00:18:21,720 Speaker 1: So if you haven't touched your resume in years, it's 405 00:18:21,760 --> 00:18:23,359 Speaker 1: it would be good to spend a few evenings kind 406 00:18:23,359 --> 00:18:25,440 Speaker 1: of getting up to speed. And also, you know, you 407 00:18:25,440 --> 00:18:27,800 Speaker 1: don't have to obviously ask people for a job, but 408 00:18:27,920 --> 00:18:30,320 Speaker 1: just connecting with people in the business that work at 409 00:18:30,320 --> 00:18:33,120 Speaker 1: other companies, set up a coffee date, whatever it is, 410 00:18:33,440 --> 00:18:36,600 Speaker 1: staying in touch with people that you've worked with and 411 00:18:36,640 --> 00:18:39,399 Speaker 1: that do similar jobs to you that could be helpful 412 00:18:39,400 --> 00:18:42,200 Speaker 1: to you in a potential, you know, economic downturn. Keep 413 00:18:42,240 --> 00:18:45,560 Speaker 1: those relationships alive and invest in them right now while 414 00:18:45,720 --> 00:18:48,040 Speaker 1: things are good. Yeah, definitely doesn't hurt. The next thing 415 00:18:48,080 --> 00:18:51,639 Speaker 1: you want to consider is to not make big, expensive 416 00:18:51,680 --> 00:18:54,360 Speaker 1: plans you might be thinking about taking a sweet European 417 00:18:54,440 --> 00:18:57,040 Speaker 1: vacation that you've been saving up for. Well, it may 418 00:18:57,040 --> 00:18:58,840 Speaker 1: not be the best time, especially if you're not in 419 00:18:58,920 --> 00:19:01,600 Speaker 1: a strong position. It comes to say, like your emergency fund. 420 00:19:01,840 --> 00:19:03,560 Speaker 1: You want to make sure you are set up and 421 00:19:03,720 --> 00:19:06,199 Speaker 1: your finances are in a healthy place. But yeah, I 422 00:19:06,200 --> 00:19:08,480 Speaker 1: think twice when it comes to making some big purchases 423 00:19:08,680 --> 00:19:12,720 Speaker 1: or making big expensive plans. Yeah, especially purchases that have 424 00:19:12,800 --> 00:19:15,199 Speaker 1: a lot of recurring expenses, right, Matt and we we 425 00:19:15,240 --> 00:19:17,080 Speaker 1: talked about that in the Everything Costs More Than You 426 00:19:17,119 --> 00:19:19,840 Speaker 1: Think episode, that that everything that you buy comes with 427 00:19:19,920 --> 00:19:23,600 Speaker 1: secondary costs. And if you're buying something that I think 428 00:19:23,600 --> 00:19:25,840 Speaker 1: I can afford this it works into my lifestyle, Well, 429 00:19:26,200 --> 00:19:28,399 Speaker 1: make sure that you've really factored in those secondary costs, 430 00:19:28,440 --> 00:19:30,840 Speaker 1: because that can come back to bite you if you 431 00:19:30,880 --> 00:19:33,600 Speaker 1: haven't planned well. And I agree that making expensive plans 432 00:19:33,600 --> 00:19:36,440 Speaker 1: for the future is just a bad move in line 433 00:19:36,440 --> 00:19:39,960 Speaker 1: of a potential recession. If you're booking a vacation that 434 00:19:40,040 --> 00:19:41,879 Speaker 1: feels like it's at the top of your budget, well, 435 00:19:42,000 --> 00:19:44,800 Speaker 1: you know, maybe consider doing something way cheaper this year 436 00:19:45,119 --> 00:19:47,320 Speaker 1: and saving more money so that you can do it 437 00:19:47,359 --> 00:19:50,160 Speaker 1: without any guilt or remorse. Next year and you can 438 00:19:50,200 --> 00:19:52,560 Speaker 1: actually afford it. I think it's just really important, more 439 00:19:52,600 --> 00:19:55,080 Speaker 1: than anything, to not count your chickens before they hatch. 440 00:19:55,359 --> 00:19:59,600 Speaker 1: But what if you like guilty vacations, Joel and unhatched chickens. 441 00:20:01,160 --> 00:20:03,080 Speaker 1: That's not a good idea, man, it sounds like an omelet. 442 00:20:03,840 --> 00:20:06,439 Speaker 1: And then finally, to consider your credit score. Work on 443 00:20:06,720 --> 00:20:09,080 Speaker 1: boosting your credit score. You want to make sure you 444 00:20:09,119 --> 00:20:12,000 Speaker 1: have as healthy of a score as possible when it 445 00:20:12,040 --> 00:20:14,800 Speaker 1: comes to a downturn in the market, because guess what, man, 446 00:20:14,840 --> 00:20:17,040 Speaker 1: this is something I learned firsthand, which is that when 447 00:20:17,040 --> 00:20:19,960 Speaker 1: there is a huge downturn in the market, lending standards 448 00:20:20,040 --> 00:20:22,040 Speaker 1: get really, really strict. And if we didn't have a 449 00:20:22,119 --> 00:20:23,840 Speaker 1: high credit score. When we were trying to apply for 450 00:20:23,880 --> 00:20:27,199 Speaker 1: a mortgage for our first home because we were self employed, right, 451 00:20:27,240 --> 00:20:29,400 Speaker 1: it's about the same business I mentioned from ten years ago. 452 00:20:29,760 --> 00:20:32,080 Speaker 1: We'd only been in business for one year and when 453 00:20:32,119 --> 00:20:34,080 Speaker 1: we had saved up enough money to put down for 454 00:20:34,119 --> 00:20:36,720 Speaker 1: a down payment on our first house. But banks like 455 00:20:36,840 --> 00:20:39,880 Speaker 1: to see multiple years of business tax returns, and because 456 00:20:39,920 --> 00:20:42,640 Speaker 1: we only had one year, it's severely limited our options 457 00:20:42,640 --> 00:20:45,080 Speaker 1: when it came to a mortgage. And dude, if we 458 00:20:45,119 --> 00:20:47,280 Speaker 1: didn't have a decent credit score, we wouldn't have been 459 00:20:47,280 --> 00:20:49,720 Speaker 1: able to qualify at all for a mortgage, and we 460 00:20:49,720 --> 00:20:52,240 Speaker 1: would have missed out on that suite eight thousand dollars 461 00:20:52,280 --> 00:20:54,960 Speaker 1: from the government. Remember that, Do I remember that? Because 462 00:20:54,960 --> 00:20:57,080 Speaker 1: you got that too? Of course, Yeah, that that was 463 00:20:57,359 --> 00:20:59,200 Speaker 1: Who knows that that that will probably never happen again 464 00:20:59,200 --> 00:21:00,960 Speaker 1: in the history of our country. That was just kind 465 00:21:00,960 --> 00:21:03,200 Speaker 1: of a crazy tax credit eight thousand dollars for buying 466 00:21:03,200 --> 00:21:05,400 Speaker 1: a house that you didn't never have to pay back, 467 00:21:05,600 --> 00:21:07,240 Speaker 1: and there was one before that, right that you did 468 00:21:07,240 --> 00:21:10,040 Speaker 1: have to pay I think all those folks felt a 469 00:21:10,040 --> 00:21:13,080 Speaker 1: little short changed, right understandably, so I would have been 470 00:21:13,080 --> 00:21:15,520 Speaker 1: so pissed. Yeah, So, so I think it's really important 471 00:21:15,600 --> 00:21:17,879 Speaker 1: yet to work towards the increasing your credit score, because 472 00:21:17,920 --> 00:21:20,880 Speaker 1: as lending standards tighten, you want to make sure that 473 00:21:20,920 --> 00:21:23,520 Speaker 1: if you do decide to buy a house, or do 474 00:21:23,840 --> 00:21:27,000 Speaker 1: for some reason need financing on a car, we would 475 00:21:27,080 --> 00:21:28,960 Speaker 1: tell you not to do that. That's not a great 476 00:21:28,960 --> 00:21:31,440 Speaker 1: idea to finance a vehicle. But if you do find 477 00:21:31,480 --> 00:21:34,840 Speaker 1: yourself needing financing, it's really important to make sure that 478 00:21:34,880 --> 00:21:36,879 Speaker 1: you have a tip top credit score because banks are 479 00:21:36,920 --> 00:21:39,440 Speaker 1: just gonna be in general more nervous to lend money. Yeah, 480 00:21:39,560 --> 00:21:41,080 Speaker 1: it makes me think of you know, back in two 481 00:21:41,080 --> 00:21:44,000 Speaker 1: thousand eight, where where were you sort of financially or 482 00:21:44,080 --> 00:21:46,080 Speaker 1: just kind of in your life at the very bottom 483 00:21:46,160 --> 00:21:49,560 Speaker 1: of the market. Well, I was completely just getting started 484 00:21:49,640 --> 00:21:51,280 Speaker 1: really in the work world. You know, I've been looking 485 00:21:51,280 --> 00:21:54,480 Speaker 1: for a couple of years, still very very low income, 486 00:21:54,840 --> 00:21:57,480 Speaker 1: but I was at least a high saver. I'd saved 487 00:21:57,520 --> 00:22:01,359 Speaker 1: a lot, and so saving been my priority. Investing was 488 00:22:01,400 --> 00:22:03,000 Speaker 1: a little bit of my porty, but saving was my 489 00:22:03,000 --> 00:22:05,200 Speaker 1: main priority because I wanted to buy a house, and 490 00:22:05,240 --> 00:22:07,400 Speaker 1: in the downturn, I was able to to take advantage 491 00:22:07,600 --> 00:22:09,520 Speaker 1: with a stockpile of cash to buy a house and 492 00:22:09,520 --> 00:22:11,159 Speaker 1: then increase my savings rate even more and trying to 493 00:22:11,160 --> 00:22:13,240 Speaker 1: buy another one two years later. So yeah, if you 494 00:22:13,280 --> 00:22:15,879 Speaker 1: want to be able to take advantage of potential opportunities 495 00:22:15,920 --> 00:22:18,399 Speaker 1: to in a recession, because there are opportunities for people 496 00:22:18,760 --> 00:22:20,520 Speaker 1: to make a move, to make an investment at a 497 00:22:20,560 --> 00:22:23,520 Speaker 1: discount that they don't come around all the time. So 498 00:22:23,560 --> 00:22:26,359 Speaker 1: I think it's important to be prepared financially to to 499 00:22:26,400 --> 00:22:29,080 Speaker 1: take advantage of anything that comes along. And if you 500 00:22:29,200 --> 00:22:30,840 Speaker 1: don't have that cash and you don't have that high 501 00:22:30,880 --> 00:22:33,359 Speaker 1: credit score. Chances are you're you're not gonna able to 502 00:22:33,400 --> 00:22:35,520 Speaker 1: take advantage of something that of an opportunity that you 503 00:22:35,560 --> 00:22:37,320 Speaker 1: might even see you right in front of you. That's right, man. 504 00:22:37,359 --> 00:22:39,880 Speaker 1: We're gonna talk more about that specific thing, right, taking 505 00:22:39,920 --> 00:22:43,560 Speaker 1: advantage of opportunities in the market, and we're going to 506 00:22:43,640 --> 00:22:47,000 Speaker 1: talk specifically about investing in light of a potential recession 507 00:22:47,160 --> 00:22:58,040 Speaker 1: right after the break. All right, So let's talk now 508 00:22:58,080 --> 00:23:01,159 Speaker 1: specifically about investing things that you want to consider and 509 00:23:01,280 --> 00:23:02,800 Speaker 1: the steps you want to take. How about you kick 510 00:23:02,840 --> 00:23:04,639 Speaker 1: it off, all right, Matt. Yeah. The first thing is 511 00:23:04,680 --> 00:23:07,480 Speaker 1: to consider your asset allocation. And so we've talked about 512 00:23:07,520 --> 00:23:10,040 Speaker 1: retirement investing before. Yeah, And Matt and I are firm 513 00:23:10,040 --> 00:23:12,280 Speaker 1: believers that if you're in the wealth building stage that 514 00:23:12,359 --> 00:23:15,960 Speaker 1: we think it's important to continue investing mostly in a 515 00:23:16,119 --> 00:23:19,199 Speaker 1: stock type portfolio. And we've talked more about that in 516 00:23:19,240 --> 00:23:21,600 Speaker 1: episodes past, and I'm sure we'll talk more about investing 517 00:23:21,760 --> 00:23:24,720 Speaker 1: in future episodes. But in particular, there's a Vanguard quiz 518 00:23:24,720 --> 00:23:26,879 Speaker 1: that can kind of help you understand your risk tolerance, 519 00:23:27,040 --> 00:23:28,200 Speaker 1: and so we'll put a link to that in the 520 00:23:28,200 --> 00:23:30,560 Speaker 1: show notes. But I think if you're in that wealth 521 00:23:30,560 --> 00:23:34,040 Speaker 1: building stage, it's super important to to stay the course 522 00:23:34,320 --> 00:23:37,080 Speaker 1: and be invested in mostly stock type choices because even 523 00:23:37,119 --> 00:23:40,040 Speaker 1: if there's a potential recession, we're talking about your portfolio 524 00:23:40,119 --> 00:23:42,080 Speaker 1: for the long term. When you're investing, you should be 525 00:23:42,119 --> 00:23:46,040 Speaker 1: thinking about that money staying put for ten years or longer. 526 00:23:46,359 --> 00:23:48,640 Speaker 1: And so if that is the case, you should be 527 00:23:48,720 --> 00:23:51,399 Speaker 1: investing in mostly stocks. So we'll put a link to 528 00:23:51,400 --> 00:23:53,480 Speaker 1: that Vanguard quiz to kind of help you understand your 529 00:23:53,480 --> 00:23:55,919 Speaker 1: own risk profile. But I think it is important to 530 00:23:55,960 --> 00:23:58,040 Speaker 1: mention that that stocks are a great choice for people 531 00:23:58,320 --> 00:24:00,439 Speaker 1: if they're in that wealth building phase. Joel, And you 532 00:24:00,480 --> 00:24:02,720 Speaker 1: mentioned are you hinted at the sort of ten year 533 00:24:02,840 --> 00:24:05,520 Speaker 1: time frame right, follow that ten your rule. So if 534 00:24:05,560 --> 00:24:08,040 Speaker 1: you know that you won't be accessing your funds for 535 00:24:08,040 --> 00:24:10,840 Speaker 1: for ten years, definitely you know, stay the course. You 536 00:24:10,880 --> 00:24:13,760 Speaker 1: want to stay heavily invested in stocks. If you do 537 00:24:13,840 --> 00:24:16,000 Speaker 1: expect to be tapping into that portfolio. You want to 538 00:24:16,000 --> 00:24:18,960 Speaker 1: make sure your portfolio is balanced with bonds and cash. 539 00:24:19,080 --> 00:24:21,240 Speaker 1: You want to maintain that balance if you're getting closer 540 00:24:21,280 --> 00:24:24,000 Speaker 1: to the point where you're gonna withdraw some of those funds. Yeah, Matt, 541 00:24:24,000 --> 00:24:26,320 Speaker 1: and like we kind of briefly mentioned at the top 542 00:24:26,440 --> 00:24:29,400 Speaker 1: of the show. Mental preparation is key as well. So 543 00:24:29,600 --> 00:24:31,960 Speaker 1: if you're gonna make changes based on data day news, 544 00:24:32,280 --> 00:24:34,400 Speaker 1: turn off the news. If you aren't willing to stay 545 00:24:34,440 --> 00:24:37,280 Speaker 1: the course despite difficulty in the stock market, you'll likely 546 00:24:37,280 --> 00:24:40,520 Speaker 1: need to make changes before a recession occurs. Like giving 547 00:24:40,560 --> 00:24:42,679 Speaker 1: somebody else the password to your Vanguard accounts so that 548 00:24:42,760 --> 00:24:45,960 Speaker 1: you don't make any knee jerk cells. That's a great 549 00:24:45,960 --> 00:24:47,919 Speaker 1: way to do it, honestly, Yeah, I mean for real, 550 00:24:47,960 --> 00:24:49,840 Speaker 1: Like if you have a spouse, uh and who is 551 00:24:49,880 --> 00:24:52,080 Speaker 1: way more levelheaded, maybe they should have the reins for 552 00:24:52,080 --> 00:24:53,960 Speaker 1: the next few years if if you see a downturn 553 00:24:54,040 --> 00:24:56,080 Speaker 1: right completely completely, and I think some of the best 554 00:24:56,080 --> 00:24:59,360 Speaker 1: advice ever given to any investor is to not look 555 00:24:59,440 --> 00:25:01,280 Speaker 1: day to day and honestly not even look a month 556 00:25:01,320 --> 00:25:03,840 Speaker 1: a month, just don't even look at your portfolio. Be 557 00:25:03,880 --> 00:25:06,160 Speaker 1: resigned to look at your portfolio only once a year, 558 00:25:06,359 --> 00:25:08,320 Speaker 1: because I think, yeah, day to day, month to month, 559 00:25:08,359 --> 00:25:10,840 Speaker 1: we see, we see a balance dropping, we see the 560 00:25:10,840 --> 00:25:13,879 Speaker 1: harmful effects of a recession hitting our investments, and we 561 00:25:13,920 --> 00:25:15,760 Speaker 1: want to take action, We want to do something. But 562 00:25:15,880 --> 00:25:18,560 Speaker 1: the problem is when we do something while the recession 563 00:25:18,720 --> 00:25:21,160 Speaker 1: is in full swing, we actually hurt our long term 564 00:25:21,160 --> 00:25:24,960 Speaker 1: financial future. So mental preparation is key, and whether that 565 00:25:25,000 --> 00:25:27,960 Speaker 1: means handing off your Vanguard password to your spouse or 566 00:25:28,200 --> 00:25:30,760 Speaker 1: typing in something random and you can't remember it and 567 00:25:30,800 --> 00:25:33,000 Speaker 1: just not opening the statements. If you do get statements 568 00:25:33,000 --> 00:25:35,280 Speaker 1: in the mail or to your or to your email inbox, 569 00:25:35,640 --> 00:25:37,480 Speaker 1: that is going to make it so much better for 570 00:25:37,520 --> 00:25:40,000 Speaker 1: you because you're not going to make decisions based on 571 00:25:40,080 --> 00:25:42,280 Speaker 1: the day to day whims of the market. And again, 572 00:25:42,359 --> 00:25:44,399 Speaker 1: from a mental standpoint, right, it's easy to say that 573 00:25:44,440 --> 00:25:46,520 Speaker 1: you'll write it out when the stock values are near 574 00:25:46,560 --> 00:25:48,960 Speaker 1: all time highs. Things are great. If you feel good, 575 00:25:49,000 --> 00:25:50,600 Speaker 1: you're like, oh, of course, I'll do the smart thing 576 00:25:50,880 --> 00:25:53,000 Speaker 1: because mentally you know you know that that's the right 577 00:25:53,040 --> 00:25:55,800 Speaker 1: thing to do. But however, it is much harder to do. 578 00:25:56,040 --> 00:25:59,920 Speaker 1: If you're watching your portfolio drop with no end in sight, 579 00:26:00,400 --> 00:26:02,280 Speaker 1: you might start to panic, and so you need to 580 00:26:02,280 --> 00:26:05,720 Speaker 1: prepare yourself to stomach the ups and the downs. And 581 00:26:05,800 --> 00:26:08,120 Speaker 1: so this is why Joel, that we're talking about this now, 582 00:26:08,119 --> 00:26:11,000 Speaker 1: we're talking about this ahead of time, because if you 583 00:26:11,040 --> 00:26:13,439 Speaker 1: can and sort of do the mental exercises of what 584 00:26:13,560 --> 00:26:16,239 Speaker 1: it might feel like to to see your portfolio drop by. 585 00:26:17,440 --> 00:26:19,720 Speaker 1: It just prepares you and hopefully that will put into 586 00:26:19,760 --> 00:26:22,800 Speaker 1: better position when it comes time to continue to stay 587 00:26:22,800 --> 00:26:26,200 Speaker 1: the course. Yeah, and not all recessions are created equal. 588 00:26:26,440 --> 00:26:27,800 Speaker 1: You know. The last one that we went through in 589 00:26:27,840 --> 00:26:30,879 Speaker 1: our country ten years ago was was really hard and 590 00:26:31,040 --> 00:26:33,280 Speaker 1: it affected a lot of people, a lot of foreclosures, 591 00:26:33,320 --> 00:26:36,480 Speaker 1: lots of job loss, So many terrible things can happen 592 00:26:36,560 --> 00:26:38,720 Speaker 1: during a recession. But one of the biggest things that 593 00:26:38,840 --> 00:26:41,440 Speaker 1: average people who didn't lose their job, didn't lose their house, 594 00:26:41,960 --> 00:26:44,359 Speaker 1: did that actually hurt them in the long run was 595 00:26:44,440 --> 00:26:47,920 Speaker 1: changing their allocation of their portfolio while the stock market 596 00:26:48,000 --> 00:26:51,760 Speaker 1: was experiencing its greatest discomfort. I mean, I had a 597 00:26:51,800 --> 00:26:54,719 Speaker 1: friend who at work who told me that he was 598 00:26:55,160 --> 00:26:57,560 Speaker 1: selling his stocks and going into cash because he couldn't 599 00:26:57,600 --> 00:27:01,080 Speaker 1: handle it anymore. And while I understand in that mental reaction, 600 00:27:01,320 --> 00:27:02,919 Speaker 1: you have to be able to kind of close yourself 601 00:27:02,960 --> 00:27:05,560 Speaker 1: off from that possibility because that is when you bake 602 00:27:05,640 --> 00:27:07,840 Speaker 1: in losses, and that is when you harm your long 603 00:27:07,960 --> 00:27:10,520 Speaker 1: term potential financial future. That's right, That's that's when you 604 00:27:10,560 --> 00:27:13,959 Speaker 1: actually realize those losses. Hopefully he didn't sell in summer 605 00:27:13,960 --> 00:27:17,119 Speaker 1: of two thousand nine, because I don't remember what it was, 606 00:27:17,200 --> 00:27:18,960 Speaker 1: but it was not it was not good. It wasn't 607 00:27:18,960 --> 00:27:20,640 Speaker 1: at the very bottom of the market. It was pretty 608 00:27:20,640 --> 00:27:22,760 Speaker 1: close to it, somewhere around there. And and yeah, like 609 00:27:22,800 --> 00:27:25,200 Speaker 1: that's that's how people ultimately hurt themselves the most, because 610 00:27:25,440 --> 00:27:27,560 Speaker 1: if you look back, and it's actually helpful that we've 611 00:27:27,560 --> 00:27:29,720 Speaker 1: had one so recently to look back and see how 612 00:27:29,800 --> 00:27:32,679 Speaker 1: quickly things turned around. And you know, we don't have 613 00:27:32,720 --> 00:27:36,679 Speaker 1: any prognostication tools. We don't prognostication. I like it, right. 614 00:27:36,920 --> 00:27:39,240 Speaker 1: We can't read the future. I don't have a crystal ball. 615 00:27:39,440 --> 00:27:41,440 Speaker 1: But it's important to kind of see that history. It's 616 00:27:41,440 --> 00:27:43,720 Speaker 1: actually helpful to note that it lasted for you know, 617 00:27:43,760 --> 00:27:47,480 Speaker 1: a couple really hard years, but what ultimately happens, Things 618 00:27:47,560 --> 00:27:49,959 Speaker 1: kind of come back to a state of normalcy. That's right, man, 619 00:27:49,960 --> 00:27:52,320 Speaker 1: you gotta write it back up. And then one last 620 00:27:52,320 --> 00:27:55,720 Speaker 1: tip is that you need to have your cash ready 621 00:27:55,840 --> 00:27:58,040 Speaker 1: and so now is the time to work to be 622 00:27:58,080 --> 00:28:01,040 Speaker 1: in a position to invest more r the next recession. 623 00:28:01,560 --> 00:28:05,640 Speaker 1: Warm buffet encourages people to be greedy when others are fearful, 624 00:28:05,920 --> 00:28:09,800 Speaker 1: and fearful when others are greedy, and honestly, what that 625 00:28:09,840 --> 00:28:12,440 Speaker 1: means is not listening to the news because people get 626 00:28:12,440 --> 00:28:14,159 Speaker 1: scared and they freak each other out, and there's this 627 00:28:14,200 --> 00:28:17,560 Speaker 1: herd mentality and everyone starts selling. That's the precise time 628 00:28:17,600 --> 00:28:20,200 Speaker 1: that you want to take advantage of the market being 629 00:28:20,280 --> 00:28:22,200 Speaker 1: on sale. You don't just want your finances to be 630 00:28:22,240 --> 00:28:25,119 Speaker 1: recession proof. You don't want to just get by. But 631 00:28:25,440 --> 00:28:27,880 Speaker 1: what we're talking about here will allow us to be 632 00:28:28,000 --> 00:28:30,879 Speaker 1: ready and prepared and to excel and do even better 633 00:28:31,160 --> 00:28:33,199 Speaker 1: the next time there's a downturn. You have to take 634 00:28:33,240 --> 00:28:36,919 Speaker 1: advantage of opportunity that comes along this episode, Matt, we 635 00:28:37,000 --> 00:28:38,880 Speaker 1: created it not to worry people. We don't want to 636 00:28:38,880 --> 00:28:41,920 Speaker 1: free people out. We're not making any predictions even that 637 00:28:42,000 --> 00:28:44,320 Speaker 1: a recession is going to happen. I think it's important 638 00:28:44,360 --> 00:28:47,040 Speaker 1: to to realize though, that there is a potential for 639 00:28:47,080 --> 00:28:49,520 Speaker 1: a recession to come, and it isn't something to be 640 00:28:49,560 --> 00:28:51,360 Speaker 1: worried about, to be on pins and needles, to be 641 00:28:51,360 --> 00:28:53,240 Speaker 1: on the edge of your seat, but it is something 642 00:28:53,280 --> 00:28:55,960 Speaker 1: to be prepared for. And if you are willing to take, 643 00:28:56,200 --> 00:28:58,320 Speaker 1: you know, just some of the steps that we mentioned above, 644 00:28:58,520 --> 00:29:01,360 Speaker 1: you're gonna put yourself in such a better position to 645 00:29:01,440 --> 00:29:05,760 Speaker 1: kind of handle personally whatever difficulty may occur during a recession, 646 00:29:05,920 --> 00:29:08,120 Speaker 1: while at the same time just getting a personal finances 647 00:29:08,320 --> 00:29:10,600 Speaker 1: in a good space. Another thing to consider too is 648 00:29:10,720 --> 00:29:13,520 Speaker 1: know your individual situation. Right, If you are in an 649 00:29:13,520 --> 00:29:16,560 Speaker 1: industry that is greatly affected by the market, that sees 650 00:29:16,600 --> 00:29:19,000 Speaker 1: a lot of ups and downs in conjunction with the 651 00:29:19,040 --> 00:29:21,880 Speaker 1: ups and downs of the market, you might want to say, 652 00:29:21,920 --> 00:29:24,840 Speaker 1: build a fatter emergency fund, right. Or you might be 653 00:29:24,920 --> 00:29:27,320 Speaker 1: in an industry that is not affected by the market, 654 00:29:27,400 --> 00:29:30,680 Speaker 1: like doctors, right, the medical industry really it isn't affected 655 00:29:30,680 --> 00:29:33,280 Speaker 1: that much by swings in the market. No, your specific 656 00:29:33,320 --> 00:29:35,680 Speaker 1: situation and just trying to be smart about take that 657 00:29:35,680 --> 00:29:37,840 Speaker 1: into account when it comes to how you are going 658 00:29:37,880 --> 00:29:40,240 Speaker 1: to prepare for a potential downturn in the market. Yeah, 659 00:29:40,320 --> 00:29:43,600 Speaker 1: I think about when oil prices hit a super low 660 00:29:43,640 --> 00:29:45,840 Speaker 1: price of close to like forty dollars a barrel, maybe 661 00:29:45,840 --> 00:29:47,480 Speaker 1: maybe it even went a little bit lower than that. 662 00:29:47,760 --> 00:29:51,800 Speaker 1: I just remember he reading stories about so many job 663 00:29:51,840 --> 00:29:55,719 Speaker 1: losses that were completely unexpected from people working in Texas, 664 00:29:55,720 --> 00:29:58,880 Speaker 1: working in the oil industry around the country, ghost towns. Yeah, 665 00:29:58,880 --> 00:30:02,080 Speaker 1: completely overnight. And so think about what industry you're in, 666 00:30:02,280 --> 00:30:04,840 Speaker 1: how long you've been at your employer. It's obviously important 667 00:30:04,880 --> 00:30:07,560 Speaker 1: to take some of these steps anyway, but it's really 668 00:30:07,560 --> 00:30:09,480 Speaker 1: important to kind of take stock of your own situation. 669 00:30:09,520 --> 00:30:12,400 Speaker 1: It helps you kind of factor in how much effort 670 00:30:12,400 --> 00:30:14,080 Speaker 1: you need to put into some of these things. Yeah, 671 00:30:14,080 --> 00:30:15,840 Speaker 1: that's right, some folks just might be more at risk. 672 00:30:16,040 --> 00:30:18,080 Speaker 1: All right, Matt, Let's get back to the beer. The 673 00:30:18,080 --> 00:30:21,320 Speaker 1: beer that we drank today was Sierra Nevada Resilience. I 674 00:30:21,440 --> 00:30:23,600 Speaker 1: P a may Man. This was a delicious beer and 675 00:30:23,600 --> 00:30:26,720 Speaker 1: it poured a nice clear amber with a beautiful head, 676 00:30:27,280 --> 00:30:29,600 Speaker 1: sort of like an old school beer. Right, Yeah, that 677 00:30:29,680 --> 00:30:32,440 Speaker 1: was the word I used to describe Sierra Nevada's Resilience, 678 00:30:32,440 --> 00:30:34,560 Speaker 1: I pa. And by the way, I would drink so 679 00:30:34,640 --> 00:30:36,280 Speaker 1: much of this beer just for the cause. I love 680 00:30:36,320 --> 00:30:38,200 Speaker 1: that that my money is going to to help people 681 00:30:38,400 --> 00:30:40,680 Speaker 1: that were affected by the wildfires in California. But the 682 00:30:40,680 --> 00:30:43,120 Speaker 1: word I used to describe this beer was old school. 683 00:30:43,280 --> 00:30:47,080 Speaker 1: It really reminds me of their winter beer celebration. Oh yeah, 684 00:30:47,120 --> 00:30:50,240 Speaker 1: it's got this just truly iconic old school. I p 685 00:30:50,400 --> 00:30:52,760 Speaker 1: a vibe. And I feel like, honestly, if you had 686 00:30:52,800 --> 00:30:55,200 Speaker 1: poured this class for me and you hadn't have told 687 00:30:55,200 --> 00:30:57,480 Speaker 1: me what brewery was from, I would have said that's 688 00:30:57,480 --> 00:31:00,400 Speaker 1: a Sieran Nevada. I feel it's like they're beers are 689 00:31:00,520 --> 00:31:03,520 Speaker 1: iconic in a way. And this beer, while not the 690 00:31:03,520 --> 00:31:06,760 Speaker 1: style I necessarily trend towards at this moment in time 691 00:31:06,800 --> 00:31:09,080 Speaker 1: with what I like to drink, it's refreshing to have this. 692 00:31:09,240 --> 00:31:12,880 Speaker 1: It's such a good beer. It's so distinct and flavorful. 693 00:31:13,200 --> 00:31:15,720 Speaker 1: I love what's hearing about it does and and this 694 00:31:15,840 --> 00:31:18,800 Speaker 1: is just another really really good beer from them, ye man, 695 00:31:18,800 --> 00:31:22,080 Speaker 1: in my word was malti because yeah, it just has 696 00:31:22,120 --> 00:31:24,880 Speaker 1: a huge malt backbone. In my in my opinion, so 697 00:31:24,920 --> 00:31:26,640 Speaker 1: many of the i pas that we're drinking today are 698 00:31:26,840 --> 00:31:32,520 Speaker 1: very florally and citrusy and hazy. Uh it's the new school. 699 00:31:32,520 --> 00:31:35,000 Speaker 1: It's the East Coast I p A. And this is certainly, 700 00:31:35,240 --> 00:31:37,280 Speaker 1: uh more of an old school, not even a West 701 00:31:37,280 --> 00:31:39,200 Speaker 1: Coast IPEA, but more of the old school sort of 702 00:31:39,200 --> 00:31:42,120 Speaker 1: flavor profile. So a lot of malts. It's a darker beer. 703 00:31:42,240 --> 00:31:45,160 Speaker 1: That's why I said old school. Yell, come on, But 704 00:31:45,200 --> 00:31:49,160 Speaker 1: it's it's got that malt backbone where it's a little bready, 705 00:31:49,200 --> 00:31:50,640 Speaker 1: and I think that's what a lot of people think 706 00:31:50,640 --> 00:31:53,040 Speaker 1: of when they think of a of an old school beer, 707 00:31:53,080 --> 00:31:56,160 Speaker 1: they think sort of malts, and so yeah, we're on 708 00:31:56,200 --> 00:31:59,480 Speaker 1: the same page, man, old school malti beer. This is delicious. 709 00:31:59,480 --> 00:32:01,960 Speaker 1: I want to think, Philip Man, thank you so much 710 00:32:01,960 --> 00:32:05,440 Speaker 1: for sending us these beers. This is fantastic. And because 711 00:32:05,480 --> 00:32:07,640 Speaker 1: we were sent these, Joe and I promised to go 712 00:32:07,680 --> 00:32:10,120 Speaker 1: out and we'll buy some of these ourselves as well 713 00:32:10,200 --> 00:32:13,120 Speaker 1: to personally support the cause to Yeah, and yeah, if 714 00:32:13,160 --> 00:32:15,400 Speaker 1: you see this on tap at your local brewery, because 715 00:32:15,400 --> 00:32:17,960 Speaker 1: that brewery decided to to support Sierra Nevada and the 716 00:32:17,960 --> 00:32:20,440 Speaker 1: employees of Sierra Nevada and the people affected by by 717 00:32:20,440 --> 00:32:23,560 Speaker 1: the wildfires in California through this route by that beer, 718 00:32:23,640 --> 00:32:25,840 Speaker 1: because first off, it's a good beer, and second off, 719 00:32:26,120 --> 00:32:28,600 Speaker 1: it's doing so much good. And yeah, I love that 720 00:32:28,640 --> 00:32:30,840 Speaker 1: story and I love that Philip sent us is beer 721 00:32:30,880 --> 00:32:32,920 Speaker 1: to drink, all right, Joel, these are our final thoughts 722 00:32:32,920 --> 00:32:35,560 Speaker 1: when it comes to recession proving your finances. Number one, 723 00:32:36,040 --> 00:32:39,760 Speaker 1: build a strong emergency fund. Cash is king. You want 724 00:32:39,760 --> 00:32:41,800 Speaker 1: to make sure that you have enough margin, you have 725 00:32:41,960 --> 00:32:44,240 Speaker 1: enough financial buffer. You want to be ready with that 726 00:32:44,320 --> 00:32:46,760 Speaker 1: cash to make moves when the time comes and you 727 00:32:46,800 --> 00:32:48,480 Speaker 1: just don't know what the future holds, you might need 728 00:32:48,560 --> 00:32:50,720 Speaker 1: that cash to float, you buy it for a couple 729 00:32:50,720 --> 00:32:53,080 Speaker 1: of months. Matt. It's also important for folks to start 730 00:32:53,080 --> 00:32:57,080 Speaker 1: attacking their high interest rate debt now before the recession hits, 731 00:32:57,240 --> 00:32:59,640 Speaker 1: because in the event of a potential job loss or 732 00:33:00,200 --> 00:33:02,440 Speaker 1: just to reduced income, it's gonna be so much harder 733 00:33:02,600 --> 00:33:05,120 Speaker 1: to attack that debt then. So attack it now and 734 00:33:05,160 --> 00:33:07,640 Speaker 1: make sure you're on solid financial ground when it comes 735 00:33:07,680 --> 00:33:10,040 Speaker 1: to the debt that you're carrying. Another helpful tip is 736 00:33:10,080 --> 00:33:13,640 Speaker 1: to create additional streams of income. This is something that 737 00:33:13,680 --> 00:33:15,360 Speaker 1: you can do with a side hustle, this is something 738 00:33:15,360 --> 00:33:18,120 Speaker 1: you can do with real estate, with investment properties. But 739 00:33:18,160 --> 00:33:21,000 Speaker 1: find a way to diversify your streams of income. If 740 00:33:21,160 --> 00:33:23,720 Speaker 1: you've got all your eggs one basket with a single employer, 741 00:33:23,800 --> 00:33:26,120 Speaker 1: well you're kind of at the whims of whatever happens 742 00:33:26,120 --> 00:33:30,160 Speaker 1: to not only that industry, but that specific company, and 743 00:33:30,200 --> 00:33:33,840 Speaker 1: so yeah, find ways to diversify. Also, don't make super 744 00:33:33,880 --> 00:33:36,800 Speaker 1: expensive plans for the future. You don't want to write 745 00:33:36,840 --> 00:33:38,719 Speaker 1: a check that you can't cash, and you don't want 746 00:33:38,720 --> 00:33:41,640 Speaker 1: to book an expensive vacation that you can barely afford 747 00:33:41,880 --> 00:33:44,920 Speaker 1: in light of a potential recession. Just cut back on 748 00:33:45,040 --> 00:33:48,120 Speaker 1: expensive potential plans and think small for the time being. 749 00:33:48,480 --> 00:33:50,480 Speaker 1: As you up your cash reserves, that will make it 750 00:33:50,520 --> 00:33:52,719 Speaker 1: a little bit easier in the future to take that 751 00:33:52,720 --> 00:33:55,360 Speaker 1: sweet vacation that you've always wanted to take. And then finally, 752 00:33:55,400 --> 00:33:58,160 Speaker 1: when it comes to your investments, man, stay the course. 753 00:33:58,320 --> 00:34:00,960 Speaker 1: If you are invested in low cost index funds and 754 00:34:01,000 --> 00:34:03,360 Speaker 1: you're invested in stocks, you know that you're in this 755 00:34:03,440 --> 00:34:06,160 Speaker 1: for the long haul. Do not be affected by the news, 756 00:34:06,560 --> 00:34:08,759 Speaker 1: be ready, try to prepare yourself so that you can 757 00:34:08,760 --> 00:34:11,799 Speaker 1: stomach that. But in the end, you know, like Joel 758 00:34:11,840 --> 00:34:14,719 Speaker 1: mentioned earlier, looking back at the great recession right ten 759 00:34:14,800 --> 00:34:17,040 Speaker 1: years ago, and you can see the rise, and you 760 00:34:17,080 --> 00:34:19,920 Speaker 1: can see where we've come from, that's gonna happen again. 761 00:34:20,040 --> 00:34:22,960 Speaker 1: Right If you have confidence in our country and in 762 00:34:23,040 --> 00:34:25,960 Speaker 1: our economy and industry and business, things are gonna be 763 00:34:25,960 --> 00:34:28,360 Speaker 1: all right. And as long as you do not sell 764 00:34:28,400 --> 00:34:30,799 Speaker 1: and make any knee jerk reactions, your portfolio is gonna 765 00:34:30,880 --> 00:34:34,200 Speaker 1: end up just fine. Yeah. So again, don't worry. We're 766 00:34:34,200 --> 00:34:36,560 Speaker 1: not trying to freak you out. We're not predicting anything, 767 00:34:36,840 --> 00:34:39,200 Speaker 1: but we are saying that preparation is key, and if 768 00:34:39,200 --> 00:34:41,360 Speaker 1: a recession does happen, you want to make sure that 769 00:34:41,360 --> 00:34:43,640 Speaker 1: you're on solid financial footing and that you can weather 770 00:34:43,680 --> 00:34:46,680 Speaker 1: the storm and even potentially take advantage of opportunities that 771 00:34:46,719 --> 00:34:48,920 Speaker 1: come along. All right, everyone, thanks so much for listening. 772 00:34:48,960 --> 00:34:51,960 Speaker 1: We will have show notes up for this episode at 773 00:34:52,080 --> 00:34:54,920 Speaker 1: our website, how to money dot com. Yeah, and if 774 00:34:54,960 --> 00:34:57,160 Speaker 1: you are a listener of the show, we would love 775 00:34:57,200 --> 00:34:59,120 Speaker 1: to hear from you. I know it takes a minute 776 00:34:59,120 --> 00:35:01,360 Speaker 1: of your time to hop over there to Apple Podcasts 777 00:35:01,600 --> 00:35:03,919 Speaker 1: to leave a review, but we really do read them 778 00:35:03,920 --> 00:35:05,719 Speaker 1: and it means a lot, right. It helps us to 779 00:35:06,160 --> 00:35:08,040 Speaker 1: get the word out for folks that haven't heard the 780 00:35:08,040 --> 00:35:10,600 Speaker 1: podcast yet, and it helps us to know maybe what 781 00:35:10,680 --> 00:35:13,719 Speaker 1: topics are resonating with you as listeners. We actually see 782 00:35:13,760 --> 00:35:16,080 Speaker 1: the reviews as a feedback loop, and so for us 783 00:35:16,160 --> 00:35:18,640 Speaker 1: to be able to see what you have found helpful 784 00:35:18,800 --> 00:35:21,000 Speaker 1: will help us to be just a better podcast in general. 785 00:35:21,040 --> 00:35:24,120 Speaker 1: So thank you in advance, no doubt, buddy. Okay, until 786 00:35:24,160 --> 00:35:26,600 Speaker 1: next time, Best friends Out, Best Friends Out.