1 00:00:00,080 --> 00:00:03,000 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,000 --> 00:00:06,520 Speaker 1: and today we are discussing forging financial flexibility in an 3 00:00:06,559 --> 00:00:30,760 Speaker 1: uneasy economy, hitting them with the old triple Joel, we 4 00:00:30,840 --> 00:00:35,199 Speaker 1: are talking about specifically flexibility. It's not often that we 5 00:00:35,520 --> 00:00:38,879 Speaker 1: dedicate an entire episode to a singular characteristic, but that 6 00:00:38,960 --> 00:00:40,920 Speaker 1: is what we're doing today. We think that, honestly, that 7 00:00:41,000 --> 00:00:45,040 Speaker 1: this is an underrated characteristic. I think with this one attribute, 8 00:00:45,040 --> 00:00:47,839 Speaker 1: you can take somebody who's you know, kind of like average, 9 00:00:47,840 --> 00:00:50,199 Speaker 1: maybe even below average with their finances, but if they 10 00:00:50,240 --> 00:00:52,560 Speaker 1: have the ability to be flexible when it comes to 11 00:00:52,600 --> 00:00:55,840 Speaker 1: the money and the different opportunities that they're presented with, 12 00:00:55,960 --> 00:00:58,080 Speaker 1: and and just flexible in all the different ways that 13 00:00:58,080 --> 00:01:00,240 Speaker 1: we're going to talk about today, that all of a 14 00:01:00,240 --> 00:01:02,480 Speaker 1: sudden go from like zero to hero. Maybe maybe not 15 00:01:02,560 --> 00:01:05,520 Speaker 1: as impactful as grit, because we've talked about that, I 16 00:01:05,560 --> 00:01:09,039 Speaker 1: won't how how grit can make like a massive difference 17 00:01:09,040 --> 00:01:10,800 Speaker 1: in your ability to make progress with your finance as 18 00:01:10,800 --> 00:01:14,320 Speaker 1: someone with with grit but the same income as someone 19 00:01:14,360 --> 00:01:16,319 Speaker 1: who doesn't have the grit, Well, we would say that 20 00:01:16,319 --> 00:01:19,720 Speaker 1: you're going to have a much better chance of sustaining 21 00:01:19,800 --> 00:01:23,320 Speaker 1: and making progress. But yeah, alright, person A, they've got grit, 22 00:01:23,600 --> 00:01:27,280 Speaker 1: but they're not flexible. Yeah, it's person be. They've got 23 00:01:27,880 --> 00:01:31,240 Speaker 1: very little grit, but they're incredibly flexible. I might actually 24 00:01:31,240 --> 00:01:33,680 Speaker 1: side with the person who's got some flexibility, right because 25 00:01:33,920 --> 00:01:36,880 Speaker 1: like the person who's flexible, they're just more resilient. Uh. 26 00:01:36,920 --> 00:01:38,520 Speaker 1: And honestly, that's a lot of what we're gonna be 27 00:01:38,520 --> 00:01:42,120 Speaker 1: talking about today is being resilient everybody on a discount 28 00:01:42,120 --> 00:01:44,959 Speaker 1: grit as well, specific ways in which you can be 29 00:01:45,000 --> 00:01:47,960 Speaker 1: flexible in order to pounce on opportunities and especially as 30 00:01:48,200 --> 00:01:50,720 Speaker 1: like like, like the title says, there's a lot of 31 00:01:50,760 --> 00:01:53,200 Speaker 1: economic uncertainty right now, but there's a reality that you 32 00:01:53,240 --> 00:01:55,520 Speaker 1: can actually use that to your advantage. That's right. Yeah, 33 00:01:55,560 --> 00:01:57,120 Speaker 1: But first, man, I told you that I'm going to 34 00:01:57,240 --> 00:01:59,720 Speaker 1: get the Companion pass next year. That's my goal. We've 35 00:01:59,720 --> 00:02:03,360 Speaker 1: got the Chase Southwest credit card. But this is a 36 00:02:03,400 --> 00:02:06,760 Speaker 1: new little bit of information starting next year. They increased 37 00:02:07,200 --> 00:02:09,880 Speaker 1: the number of points that's gonna take to get the 38 00:02:09,880 --> 00:02:12,520 Speaker 1: Companion passed. They did an all bait and switch on 39 00:02:12,600 --> 00:02:15,320 Speaker 1: me because I had already applied. Isn't like a hundred 40 00:02:15,320 --> 00:02:17,639 Speaker 1: thousand more points now? Not a hundred thousand more. It's 41 00:02:17,680 --> 00:02:21,399 Speaker 1: it used to be a hundred thousand points, so it's 42 00:02:21,400 --> 00:02:23,760 Speaker 1: not a massive uptick, but it's still This is one 43 00:02:23,800 --> 00:02:26,639 Speaker 1: of the ways that we're seeing inflation impact some of 44 00:02:26,680 --> 00:02:30,079 Speaker 1: the different rewards that you earn with different airline, different carriers, 45 00:02:30,120 --> 00:02:32,440 Speaker 1: but also the different bonuses that you receive from the 46 00:02:32,440 --> 00:02:34,080 Speaker 1: credit card. You canna still be able to make this happen. 47 00:02:34,080 --> 00:02:37,760 Speaker 1: Are you can be flexible enough to the real question 48 00:02:37,880 --> 00:02:40,320 Speaker 1: is is if I identify that this is no longer 49 00:02:41,040 --> 00:02:43,160 Speaker 1: going to be worth it, will I continue down the 50 00:02:43,160 --> 00:02:45,800 Speaker 1: path and earn the companion pack just because I have 51 00:02:45,840 --> 00:02:48,480 Speaker 1: stated that it's something that we're going after. But I 52 00:02:48,480 --> 00:02:50,960 Speaker 1: think we'll be into the stunt cost fallacy that three 53 00:02:51,000 --> 00:02:52,880 Speaker 1: thousand bucks, you guys have been three thousand bucks, and 54 00:02:52,880 --> 00:02:55,519 Speaker 1: you get the seventy five thousand points plus they throw 55 00:02:55,560 --> 00:02:58,280 Speaker 1: in like an additional ten thousand points plus the initial 56 00:02:58,320 --> 00:03:00,520 Speaker 1: three thousand and spend, and so right out of the 57 00:03:00,520 --> 00:03:03,480 Speaker 1: gate you're starting with eight eight thousand points. You're most 58 00:03:03,480 --> 00:03:05,720 Speaker 1: of the way there. Most of the way there exactly. Um. 59 00:03:05,919 --> 00:03:07,880 Speaker 1: So this is a card that that we're hoping will 60 00:03:07,919 --> 00:03:11,560 Speaker 1: allow us to obtain that coveted companion pass. It's just 61 00:03:11,600 --> 00:03:15,440 Speaker 1: something that we've never done before. How how we talked 62 00:03:15,440 --> 00:03:17,600 Speaker 1: about it before? I guess just briefly, But what makes it? 63 00:03:17,639 --> 00:03:20,840 Speaker 1: A companion pass? So finance so valuable because once you 64 00:03:20,880 --> 00:03:24,160 Speaker 1: get it, so once I get it, I can buy 65 00:03:24,160 --> 00:03:25,960 Speaker 1: it to get to go somewhere, to fly somewhere, and 66 00:03:25,960 --> 00:03:29,079 Speaker 1: then a companion gets to come along with me for 67 00:03:29,240 --> 00:03:32,200 Speaker 1: absolutely free. Well you have to pay like the taxes 68 00:03:32,360 --> 00:03:34,480 Speaker 1: for that tick. I guess it is a big question. 69 00:03:35,320 --> 00:03:39,200 Speaker 1: Luckily for you, I can change the companion. You can 70 00:03:39,240 --> 00:03:41,800 Speaker 1: change your companion like multiple times in a given year, 71 00:03:42,160 --> 00:03:44,480 Speaker 1: and so I can change it from Kate to you, 72 00:03:44,720 --> 00:03:47,480 Speaker 1: from you to my daughter. Uh, there's all sorts of 73 00:03:47,520 --> 00:03:49,600 Speaker 1: options available. Let's start with me and go Hawaii. Tho 74 00:03:49,760 --> 00:03:52,720 Speaker 1: can we do that? That's one of the Southwest cards 75 00:03:53,240 --> 00:03:55,080 Speaker 1: where they're hooking you up with a lot of points. 76 00:03:55,120 --> 00:03:57,360 Speaker 1: And by the way, this is a card that you 77 00:03:57,400 --> 00:04:00,560 Speaker 1: can learn more about via our credit cards tool how 78 00:04:00,560 --> 00:04:03,320 Speaker 1: do money dot Com forward slash credit cards. And if 79 00:04:03,400 --> 00:04:05,320 Speaker 1: you are actually not a fan of Southwest, you can 80 00:04:05,320 --> 00:04:07,120 Speaker 1: actually sort by some of the other airlines as well. 81 00:04:07,120 --> 00:04:10,120 Speaker 1: If you're a Delta guy, maybe you're into American airlines, 82 00:04:10,240 --> 00:04:12,200 Speaker 1: those options are there for you. As well. You can 83 00:04:12,280 --> 00:04:14,120 Speaker 1: check that out straight up cash back to I mean, 84 00:04:14,400 --> 00:04:16,160 Speaker 1: based on how you spend, this is gonna help you 85 00:04:16,440 --> 00:04:18,200 Speaker 1: find the credit card that's going to be best for 86 00:04:18,240 --> 00:04:21,240 Speaker 1: how you spend. But and Matt, the reality is if 87 00:04:21,279 --> 00:04:24,359 Speaker 1: you have a Southwest, uh, if Southwest flies from the 88 00:04:24,360 --> 00:04:27,520 Speaker 1: airport nearest where you live, that companion pass can be 89 00:04:27,560 --> 00:04:29,840 Speaker 1: just a massive benefit because you're gonna have that for 90 00:04:29,960 --> 00:04:34,039 Speaker 1: two years. So yeah, it's a really really cool Yeah, 91 00:04:34,040 --> 00:04:36,160 Speaker 1: it's a really cool perk. We should actually probably flush 92 00:04:36,200 --> 00:04:37,680 Speaker 1: that out and write an article about that on the 93 00:04:37,720 --> 00:04:40,040 Speaker 1: website or something like that. But the Southwest Companion Pass 94 00:04:40,520 --> 00:04:44,360 Speaker 1: is this like perk that's not as well known about it. 95 00:04:44,360 --> 00:04:46,680 Speaker 1: It doesn't get talked about enough. But if you can 96 00:04:46,720 --> 00:04:48,599 Speaker 1: meet that spend threshold, get those points and get the 97 00:04:48,600 --> 00:04:50,480 Speaker 1: companion pass, and if you travel enough to make it 98 00:04:50,480 --> 00:04:52,280 Speaker 1: worth it, it can be like one of the greatest 99 00:04:52,360 --> 00:04:54,960 Speaker 1: values when it comes to credit card rewards. And that's right. 100 00:04:55,000 --> 00:04:56,840 Speaker 1: But let's move on. Matt. Let's mention the beer we're 101 00:04:56,839 --> 00:04:59,000 Speaker 1: having on the show. This one is called six It's 102 00:04:59,000 --> 00:05:01,960 Speaker 1: a Saeson style here by Upright Brewing out of Portland, Organ. 103 00:05:02,120 --> 00:05:03,960 Speaker 1: We'll give our thoughts on this one. At the end 104 00:05:04,000 --> 00:05:06,440 Speaker 1: of the episode. But let's get onto the topic at hand. 105 00:05:06,480 --> 00:05:09,800 Speaker 1: We are talking about the Triple lefts forging financial flexibility 106 00:05:09,839 --> 00:05:12,719 Speaker 1: in an uneasy economy. We just love alliteration. Sorry, we 107 00:05:12,720 --> 00:05:15,400 Speaker 1: won't apologize. It's kind of our favorite thing, at least 108 00:05:15,400 --> 00:05:17,320 Speaker 1: for now. Maybe we'll switch it up. Yeah, well, what 109 00:05:17,400 --> 00:05:19,680 Speaker 1: if all of our future titles of our episodes are 110 00:05:19,880 --> 00:05:22,080 Speaker 1: just all puns? We can do? I think people would 111 00:05:22,080 --> 00:05:24,320 Speaker 1: hate worse. Um, I don't know. It's a good question. Okay, 112 00:05:24,480 --> 00:05:26,280 Speaker 1: but we might start getting more hate mail, which I 113 00:05:26,320 --> 00:05:29,840 Speaker 1: think I'm okay with. But let's let's thinking about this 114 00:05:29,839 --> 00:05:32,200 Speaker 1: this topic, Matt. It made me think of actually our 115 00:05:32,200 --> 00:05:34,800 Speaker 1: summer vacation this year. We went to Tybee Island, which 116 00:05:34,839 --> 00:05:37,560 Speaker 1: is like our favorite place to go just outside of Savannah, Georgia, 117 00:05:37,720 --> 00:05:40,800 Speaker 1: for a week as a family. And unfortunately it wasn't 118 00:05:40,839 --> 00:05:42,640 Speaker 1: until right after we left, but there was this massive 119 00:05:42,680 --> 00:05:45,680 Speaker 1: swarm of jellyfish that that descended in the water. They're 120 00:05:45,720 --> 00:05:48,480 Speaker 1: basically right right afore we departed. Since it's jellyfish, aren't 121 00:05:48,480 --> 00:05:51,159 Speaker 1: they wouldn't it technically technically be a school of jellyfish? 122 00:05:51,279 --> 00:05:56,040 Speaker 1: Maybe swarm they do sting? Yeah, I guess what I think, okay, okay, 123 00:05:56,120 --> 00:05:58,560 Speaker 1: but you're probably right. But they're not even really an 124 00:05:58,640 --> 00:06:02,120 Speaker 1: army of jelly fish. Are they actually fish either? Technically? Okay, yeah, 125 00:06:02,120 --> 00:06:05,200 Speaker 1: because they're like blobs. Yeah, I think that's that's the 126 00:06:05,240 --> 00:06:09,120 Speaker 1: scientific definition of jellyfish blobs. But there's this article actually 127 00:06:09,120 --> 00:06:11,160 Speaker 1: published by the local TV station right after we left, 128 00:06:11,160 --> 00:06:13,520 Speaker 1: saying that lifeguards had to treat three d folks for 129 00:06:13,600 --> 00:06:15,719 Speaker 1: jellyfish things in a single weekend. And it's not like 130 00:06:15,760 --> 00:06:18,359 Speaker 1: Tybee is really that big, but it's like everybody that 131 00:06:18,440 --> 00:06:21,440 Speaker 1: was right exactly, And so we end up seeing a 132 00:06:21,480 --> 00:06:23,680 Speaker 1: few while we were there. My oldest daughter, she even 133 00:06:23,720 --> 00:06:26,360 Speaker 1: got stung a couple of times. But after we left, 134 00:06:26,360 --> 00:06:29,400 Speaker 1: the conditions got worse by a meaningful amount, which which 135 00:06:29,440 --> 00:06:31,599 Speaker 1: meant like swimming in the water, it's just not that 136 00:06:31,680 --> 00:06:34,800 Speaker 1: fun with all this jellyfish hanging around, And those changing 137 00:06:34,839 --> 00:06:37,400 Speaker 1: conditions meant that folks had to react differently. People coming 138 00:06:37,440 --> 00:06:40,520 Speaker 1: to the beach that week, had to take a different tactic, 139 00:06:40,560 --> 00:06:42,800 Speaker 1: had to enjoy themselves on the beach in a different way. 140 00:06:43,240 --> 00:06:46,400 Speaker 1: Maybe a little less body boarding, a little more bocci 141 00:06:46,480 --> 00:06:47,960 Speaker 1: ball on the beach. Right, So you're gonna have to 142 00:06:48,160 --> 00:06:50,080 Speaker 1: you have to change your plans just a little bit 143 00:06:50,120 --> 00:06:52,680 Speaker 1: because of the environment that you're in. I would say 144 00:06:52,720 --> 00:06:54,359 Speaker 1: the same is true for us and for our money, 145 00:06:54,640 --> 00:06:56,400 Speaker 1: right if we want to make the money we're given 146 00:06:57,040 --> 00:06:59,719 Speaker 1: go the furthest It's important to know the basics, but 147 00:06:59,760 --> 00:07:02,279 Speaker 1: it's also crucial to get a read on the overall 148 00:07:02,440 --> 00:07:05,360 Speaker 1: environment that we're doing business in. And just like you 149 00:07:05,440 --> 00:07:07,880 Speaker 1: might need to adapt your vacation plans if jellyfish have 150 00:07:08,000 --> 00:07:11,040 Speaker 1: taken over the water, seeing the current trends right in 151 00:07:11,080 --> 00:07:14,160 Speaker 1: the in the financial space can help us optimize our 152 00:07:14,160 --> 00:07:17,840 Speaker 1: decisions in order to avoid unnecessary pain and you know, 153 00:07:17,880 --> 00:07:20,920 Speaker 1: grow our wealth more quickly and more efficiently too. Yeah, 154 00:07:20,960 --> 00:07:23,000 Speaker 1: you know, this is always important to keep in mind, 155 00:07:23,000 --> 00:07:26,640 Speaker 1: but even more so considering that we're living in an 156 00:07:26,680 --> 00:07:29,800 Speaker 1: incredibly like dynamic environment right now, right like, we've seen 157 00:07:29,800 --> 00:07:31,760 Speaker 1: more change in the past two years than we would 158 00:07:31,800 --> 00:07:35,320 Speaker 1: typically see in a decade or honestly even longer. And 159 00:07:35,400 --> 00:07:38,240 Speaker 1: aside from what we've recently experienced, and I'm talking about 160 00:07:38,280 --> 00:07:42,680 Speaker 1: the pandemic, stimmy checks, economic doomsday scenarios which then flipped 161 00:07:42,680 --> 00:07:45,680 Speaker 1: into a booming recovery and then then again now inflation 162 00:07:45,720 --> 00:07:49,160 Speaker 1: in the fear of recession like all of these things. Uh, 163 00:07:49,200 --> 00:07:52,960 Speaker 1: the truth is that nothing ever stays the same. There 164 00:07:52,960 --> 00:07:55,440 Speaker 1: are definitely some core principles and fundamentals that are that 165 00:07:55,440 --> 00:07:57,120 Speaker 1: are pretty much always going to be true out there, 166 00:07:57,320 --> 00:08:00,240 Speaker 1: but everything else around us is going to to you 167 00:08:00,280 --> 00:08:03,720 Speaker 1: to evolve with change. It's the only constant, right And 168 00:08:03,840 --> 00:08:06,360 Speaker 1: if we decide on a course of action and stick 169 00:08:06,520 --> 00:08:08,560 Speaker 1: with it, stick to it, no matter what the market 170 00:08:08,600 --> 00:08:11,880 Speaker 1: is doing around us, we're gonna be financially worse off. 171 00:08:12,320 --> 00:08:14,920 Speaker 1: And that's why it's important to maintain a level of 172 00:08:14,960 --> 00:08:18,400 Speaker 1: financial flexibility, which is what we're talking all about today. Yeah, 173 00:08:18,440 --> 00:08:20,480 Speaker 1: and makes me think of Atlanta traffic, Matt. If you 174 00:08:20,640 --> 00:08:23,920 Speaker 1: if you know that going downtown at five pm, clearly 175 00:08:23,960 --> 00:08:26,200 Speaker 1: it's gonna be the worst possible time top in your 176 00:08:26,240 --> 00:08:28,720 Speaker 1: car and and try to head into the heart of 177 00:08:28,720 --> 00:08:31,400 Speaker 1: the city, and so you might want to change your plans. Accordingly, 178 00:08:31,440 --> 00:08:33,560 Speaker 1: if you could do a noon lunch with that friend 179 00:08:33,720 --> 00:08:36,640 Speaker 1: or coworker instead, you might opt for that. And so 180 00:08:36,920 --> 00:08:39,319 Speaker 1: you have to be flexible in order to avoid pain 181 00:08:39,400 --> 00:08:42,400 Speaker 1: in this world. But let's talk about how like something 182 00:08:42,400 --> 00:08:44,679 Speaker 1: specific in regards to that where that people have been 183 00:08:44,720 --> 00:08:47,560 Speaker 1: hearing a lot more lately, is the word recession, right, 184 00:08:47,679 --> 00:08:50,240 Speaker 1: especially if you turn on CNBC for any amount of 185 00:08:50,240 --> 00:08:53,600 Speaker 1: time or read the financial media. Will we have one? 186 00:08:53,640 --> 00:08:55,199 Speaker 1: Are we in one? How bad is it going to be? 187 00:08:55,280 --> 00:08:58,040 Speaker 1: Those are big kind of questions that are being talked about, 188 00:08:58,480 --> 00:09:00,720 Speaker 1: and I'm sorry if you turn into hear the answer 189 00:09:00,880 --> 00:09:02,840 Speaker 1: to that question. We we don't have it. Um, we 190 00:09:02,920 --> 00:09:06,120 Speaker 1: don't know, But especially when economic storm clouds are on 191 00:09:06,120 --> 00:09:08,920 Speaker 1: the horizon, we would say that your ability to flex, 192 00:09:09,000 --> 00:09:12,240 Speaker 1: to be flexible, is even more necessary. We are seeing 193 00:09:12,280 --> 00:09:15,679 Speaker 1: some warning signs right. Layoffs are happening with greater rapidity. 194 00:09:15,720 --> 00:09:18,720 Speaker 1: We're hearing of hiring freezes happening at companies like Amazon. 195 00:09:19,160 --> 00:09:22,720 Speaker 1: At my friend, he works at a big, major tech company, 196 00:09:22,840 --> 00:09:25,440 Speaker 1: and he was like a shoe in for this new 197 00:09:25,440 --> 00:09:27,520 Speaker 1: position and it was gonna come with a little more 198 00:09:27,800 --> 00:09:31,000 Speaker 1: pay as well, and they freezed all sorts of pay 199 00:09:31,040 --> 00:09:33,880 Speaker 1: increases across the board. So right as he was on 200 00:09:33,920 --> 00:09:36,800 Speaker 1: the precipice of getting this new job, they shut it down, 201 00:09:36,880 --> 00:09:38,320 Speaker 1: and so he's gonna have to be content where he 202 00:09:38,360 --> 00:09:40,679 Speaker 1: is for a little bit longer. The reality is a 203 00:09:40,679 --> 00:09:42,480 Speaker 1: lot of this is happening in the tech sector, and 204 00:09:42,480 --> 00:09:44,760 Speaker 1: it's hard to know if we're in store for some 205 00:09:44,880 --> 00:09:48,440 Speaker 1: incredibly minor economic pains that are keenly felt in just 206 00:09:48,480 --> 00:09:50,960 Speaker 1: a few of these specific sectors, or if the entire 207 00:09:51,240 --> 00:09:53,520 Speaker 1: economy is likely going to feel some of the wrath. 208 00:09:53,640 --> 00:09:56,640 Speaker 1: But yeah, despite our inability to predict the future, to 209 00:09:56,679 --> 00:10:00,120 Speaker 1: predict the reality of a likely recession or not to, 210 00:10:00,320 --> 00:10:04,520 Speaker 1: the truth is more economic pain is probable. Yeah. I mean, 211 00:10:04,640 --> 00:10:07,679 Speaker 1: what the FED is attempting to do by rashinging up 212 00:10:07,679 --> 00:10:09,960 Speaker 1: interest rates is exactly that, right, Like they're trying to 213 00:10:10,000 --> 00:10:12,520 Speaker 1: cool the economy off. They're trying to curb demand and 214 00:10:12,600 --> 00:10:15,760 Speaker 1: thereby slowing the rate of inflation. Uh, and what that 215 00:10:15,800 --> 00:10:18,280 Speaker 1: means for a lot of folks, It's probably gonna mean 216 00:10:18,320 --> 00:10:21,080 Speaker 1: lost jobs. And so if you're you're paying attention to 217 00:10:21,160 --> 00:10:24,120 Speaker 1: the different macro trends out there, the riding it's been 218 00:10:24,160 --> 00:10:26,480 Speaker 1: on the wall. And you know, we're not saying that 219 00:10:26,520 --> 00:10:29,719 Speaker 1: you need to start watching CNBC regularly, or or that 220 00:10:29,800 --> 00:10:32,520 Speaker 1: you need to read the detailed minutes from each FED 221 00:10:32,600 --> 00:10:34,760 Speaker 1: meeting and see what j Pal has to say, although 222 00:10:34,800 --> 00:10:36,599 Speaker 1: you'd like to do that with your monocolon sometings in 223 00:10:36,720 --> 00:10:38,880 Speaker 1: order to to know how it is that you should 224 00:10:38,880 --> 00:10:40,679 Speaker 1: handle your money and what you should be doing, but 225 00:10:40,760 --> 00:10:43,760 Speaker 1: we are saying that getting at least a sense for 226 00:10:43,840 --> 00:10:46,600 Speaker 1: which way the economic winds are blowing, you know, just 227 00:10:46,600 --> 00:10:48,320 Speaker 1: like lick your thumb, kind of stick your thumb out 228 00:10:48,320 --> 00:10:50,400 Speaker 1: there and see which way the winds are blowing. That 229 00:10:50,440 --> 00:10:52,560 Speaker 1: can be helpful and it can allow you to to 230 00:10:52,840 --> 00:10:56,320 Speaker 1: use those winds, those readings to your advantage as opposed 231 00:10:56,320 --> 00:10:58,680 Speaker 1: to just getting tossed around by them. I don't know 232 00:10:58,760 --> 00:11:02,120 Speaker 1: much about sailing, but you into face your sails in 233 00:11:02,160 --> 00:11:06,240 Speaker 1: a way that captures the wind. Basically, airplanes, if you're 234 00:11:06,240 --> 00:11:09,680 Speaker 1: flying across the world, why is there a two hour 235 00:11:09,720 --> 00:11:11,520 Speaker 1: difference between your flight there and your flight back. It's 236 00:11:11,559 --> 00:11:13,800 Speaker 1: head wins and tail wins, right, And if you're using 237 00:11:13,920 --> 00:11:16,840 Speaker 1: tail winds to your advantage, you're gonna arrive at your 238 00:11:16,840 --> 00:11:18,679 Speaker 1: destination more quickly. And I think the same thing can 239 00:11:18,720 --> 00:11:21,760 Speaker 1: be true with our money. If we stay flexible, then 240 00:11:21,840 --> 00:11:25,120 Speaker 1: we are more liable to to take those headwinds were 241 00:11:25,120 --> 00:11:26,840 Speaker 1: and turn them on their face and actually make them 242 00:11:26,840 --> 00:11:29,480 Speaker 1: more beneficial to us while everyone else is just suffering 243 00:11:29,520 --> 00:11:31,960 Speaker 1: from the reality. If we can see the direction in 244 00:11:32,000 --> 00:11:34,840 Speaker 1: which things are headed and plan and react accordingly, we 245 00:11:34,880 --> 00:11:37,440 Speaker 1: can be in a much better position to pounce when 246 00:11:37,480 --> 00:11:40,080 Speaker 1: things are difficult, right exactly, and instead of sailing into 247 00:11:40,080 --> 00:11:42,160 Speaker 1: the wind, figure out where the winds blowing and say, well, 248 00:11:42,320 --> 00:11:44,040 Speaker 1: I kind of want to go in that general direction, 249 00:11:44,160 --> 00:11:45,920 Speaker 1: and then I can. I don't know. Again, I don't 250 00:11:45,960 --> 00:11:48,640 Speaker 1: know anything about sailing. You use the rudder and you 251 00:11:48,720 --> 00:11:52,800 Speaker 1: kind of points your boat that direction starboard. I don't know, sport, 252 00:11:52,920 --> 00:11:57,560 Speaker 1: I don't. But the truth is that that economic cycles 253 00:11:57,600 --> 00:12:00,200 Speaker 1: are a fact of life too, right, so that that 254 00:12:00,280 --> 00:12:03,840 Speaker 1: deserves to be talked about. It's it's not like these 255 00:12:04,160 --> 00:12:07,600 Speaker 1: headwinds that we're starting to see that we've never seen 256 00:12:07,640 --> 00:12:11,360 Speaker 1: them before, or that they're impossible to identify, which we 257 00:12:11,440 --> 00:12:15,320 Speaker 1: just haven't realized that we haven't experienced them recently like 258 00:12:15,400 --> 00:12:18,360 Speaker 1: we have in the recent past. Yeah. Yeah, And and 259 00:12:18,400 --> 00:12:20,840 Speaker 1: the truth is that the more we know about history, 260 00:12:21,080 --> 00:12:23,040 Speaker 1: the more we can see if if you're only looking 261 00:12:23,040 --> 00:12:25,240 Speaker 1: at the past twelve years of history, you have a 262 00:12:25,280 --> 00:12:27,960 Speaker 1: limited scope, a limited knowledge. That's why what the folks 263 00:12:28,000 --> 00:12:30,360 Speaker 1: who don't know history are doomed to repeat it. And 264 00:12:30,400 --> 00:12:33,480 Speaker 1: the more we can know about the history of economic cycles, 265 00:12:33,720 --> 00:12:36,000 Speaker 1: the more we can be prepared to be in a 266 00:12:36,040 --> 00:12:39,960 Speaker 1: position to flourish when the next downward economic cycle comes 267 00:12:39,960 --> 00:12:43,320 Speaker 1: along and the reality that there are fluctuations between periods 268 00:12:43,320 --> 00:12:46,080 Speaker 1: of economic growth and contraction. We've had a pretty good 269 00:12:46,080 --> 00:12:49,120 Speaker 1: growth run over the past twelve ish years, something like 270 00:12:49,320 --> 00:12:52,080 Speaker 1: one of the longest stained bull runs in history until 271 00:12:52,360 --> 00:12:54,880 Speaker 1: the beginning of this year. But it appears that not 272 00:12:54,960 --> 00:12:57,719 Speaker 1: just the stock market heading for a down period, which 273 00:12:57,800 --> 00:13:00,400 Speaker 1: we've experienced in a big way this year, but then 274 00:13:00,400 --> 00:13:03,760 Speaker 1: we might be headed for a period of contraction economic 275 00:13:03,760 --> 00:13:06,400 Speaker 1: contraction in the nearestterm future. Part of that is because 276 00:13:06,440 --> 00:13:09,600 Speaker 1: our economy at least partially experienced some of that sustained 277 00:13:09,600 --> 00:13:14,000 Speaker 1: growth thanks to historically low interest rates, which incentivized that growth. 278 00:13:14,160 --> 00:13:16,559 Speaker 1: But when you start to see that these cycles happened regularly, 279 00:13:16,960 --> 00:13:18,960 Speaker 1: it's easier to see how you can maybe use them 280 00:13:19,000 --> 00:13:21,640 Speaker 1: to your advantage in small ways, making hay while the 281 00:13:21,679 --> 00:13:24,560 Speaker 1: sun shines and Matt, let's give one quick example of this. 282 00:13:24,880 --> 00:13:28,720 Speaker 1: You know, we talked at nauseum about refinancing mortgages mortgage 283 00:13:28,760 --> 00:13:31,720 Speaker 1: debt when rates were historically low. I feel like maybe 284 00:13:31,760 --> 00:13:33,240 Speaker 1: it felt like we were beating a dead horse after 285 00:13:33,559 --> 00:13:36,200 Speaker 1: like we were the boys who Cried Wolf. Yeah, we 286 00:13:36,320 --> 00:13:38,679 Speaker 1: made a video and stuck it up on Instagram for 287 00:13:38,960 --> 00:13:41,600 Speaker 1: encouraging people to refly while rates were low. We kept saying, 288 00:13:41,679 --> 00:13:44,680 Speaker 1: rates are not likely to get much better than this. 289 00:13:44,760 --> 00:13:46,400 Speaker 1: We didn't know if they're going to continue to go lower. 290 00:13:46,440 --> 00:13:47,959 Speaker 1: But I guess what I'm saying is, I don't want 291 00:13:48,000 --> 00:13:49,680 Speaker 1: to be like, well, we knew that they were going 292 00:13:49,760 --> 00:13:51,920 Speaker 1: to go up. We didn't know that. We didn't know up. 293 00:13:51,960 --> 00:13:53,760 Speaker 1: But what we did know at that point in time 294 00:13:54,040 --> 00:13:56,560 Speaker 1: was that our rates right now the lowest they've been 295 00:13:57,000 --> 00:13:59,560 Speaker 1: in basically the history of mortgages. Yes, and so you 296 00:13:59,600 --> 00:14:02,040 Speaker 1: have to say that truth that you know the facts 297 00:14:02,040 --> 00:14:04,080 Speaker 1: on the ground, what you know now, and to take 298 00:14:04,120 --> 00:14:06,679 Speaker 1: action based on those facts. So while we didn't know 299 00:14:06,720 --> 00:14:08,680 Speaker 1: what the future held, we didn't know rates were going 300 00:14:08,760 --> 00:14:11,440 Speaker 1: to spike in the way that they have. We didn't 301 00:14:11,480 --> 00:14:13,880 Speaker 1: know that inflation was gonna do what it's done. We 302 00:14:13,880 --> 00:14:16,720 Speaker 1: couldn't have predicted that either. The truth is, you could 303 00:14:16,720 --> 00:14:20,400 Speaker 1: have locked in an uber low mortgage rate for thirty 304 00:14:20,480 --> 00:14:23,840 Speaker 1: years to come, not knowing what the future holds, but 305 00:14:23,880 --> 00:14:25,760 Speaker 1: being able to take advantage of at least what the 306 00:14:25,760 --> 00:14:28,720 Speaker 1: present is giving you. Yeah, And speaking of inflation, I mean, 307 00:14:28,760 --> 00:14:31,240 Speaker 1: we're literally in a cycle of inflation right now, of 308 00:14:31,320 --> 00:14:35,240 Speaker 1: higher inflation even different publications, different media outlets out there, 309 00:14:35,280 --> 00:14:38,080 Speaker 1: like the Wall Street Journal, they literally created an inflation 310 00:14:38,120 --> 00:14:41,360 Speaker 1: calculator so that you could figure out what your specific 311 00:14:41,480 --> 00:14:44,200 Speaker 1: rate of inflation is. Right, And so, for instance, did 312 00:14:44,200 --> 00:14:46,880 Speaker 1: you buy a house this past summer, did you also 313 00:14:46,920 --> 00:14:48,680 Speaker 1: happen to eat a lot of bacon and then you 314 00:14:48,760 --> 00:14:53,200 Speaker 1: also bought a new luxury e V at the same time. Well, 315 00:14:53,240 --> 00:14:56,680 Speaker 1: if so, then you experienced peak inflation for a bunch 316 00:14:56,680 --> 00:15:00,600 Speaker 1: of goods simultaneously at the same time. Uh. But a 317 00:15:00,720 --> 00:15:05,440 Speaker 1: financially flexible individual instead would want to make different choices, right, 318 00:15:05,840 --> 00:15:08,760 Speaker 1: they would have maybe opted to have kept on renting. 319 00:15:09,200 --> 00:15:12,120 Speaker 1: They maybe wouldn't have bought any bacon, and they would 320 00:15:12,120 --> 00:15:13,960 Speaker 1: have they would have kept driving their old minivan. And 321 00:15:14,000 --> 00:15:17,480 Speaker 1: so when it comes to spending, attempting to be financially 322 00:15:17,520 --> 00:15:21,680 Speaker 1: flexible means adapting your buying decisions based on what's happening 323 00:15:21,680 --> 00:15:24,800 Speaker 1: with prices, and so inflation is one of the major players. 324 00:15:24,840 --> 00:15:27,040 Speaker 1: It's one of the big factors that has a dramatic 325 00:15:27,160 --> 00:15:29,800 Speaker 1: impact on what it looks like in our current economy, 326 00:15:29,800 --> 00:15:32,920 Speaker 1: in our current environments. But we're actually going to talk 327 00:15:33,320 --> 00:15:35,760 Speaker 1: through some other examples of what it looks like to 328 00:15:35,960 --> 00:15:38,640 Speaker 1: be financially flexible in your life. We will get to 329 00:15:38,720 --> 00:15:50,480 Speaker 1: that and more right after this. Alright, let's keep talking 330 00:15:50,480 --> 00:15:53,760 Speaker 1: about financial flexibility. It's it's a really important skill to 331 00:15:53,800 --> 00:15:57,360 Speaker 1: adopt because when, yeah, those headwinds are staring you down 332 00:15:57,360 --> 00:15:59,800 Speaker 1: in the face, if you don't adapt, you're just going 333 00:15:59,880 --> 00:16:01,720 Speaker 1: to move slower. It's gonna feel like you're marching up 334 00:16:01,760 --> 00:16:04,400 Speaker 1: hill like our parents had to do school both ways 335 00:16:04,800 --> 00:16:06,640 Speaker 1: when they were kids. Right, We heard that a lot. 336 00:16:06,800 --> 00:16:08,360 Speaker 1: But honestly, you know what this reminds me of it. 337 00:16:08,520 --> 00:16:10,360 Speaker 1: It reminds me of did you ever do like in 338 00:16:10,440 --> 00:16:13,360 Speaker 1: school where you had to create a structure out of 339 00:16:13,600 --> 00:16:17,400 Speaker 1: either Plato or something like that, Plato or something that 340 00:16:17,440 --> 00:16:19,160 Speaker 1: was more flexible, I forget what it was, like jelly 341 00:16:19,240 --> 00:16:22,960 Speaker 1: or something like that, and you connected toothpicks with those 342 00:16:22,960 --> 00:16:25,080 Speaker 1: different materials and I was like, Okay, which one of 343 00:16:25,120 --> 00:16:27,880 Speaker 1: these structures is gonna be able to withstand shaking or whatever? 344 00:16:27,960 --> 00:16:29,880 Speaker 1: And I don't know why, but nobody thought that the 345 00:16:29,880 --> 00:16:32,000 Speaker 1: flexible structure was actually gonna stand And was like, oh, 346 00:16:32,000 --> 00:16:34,520 Speaker 1: of course, the one that's solid, and you slowly shake 347 00:16:34,600 --> 00:16:37,080 Speaker 1: that one and it falls apart because there is no 348 00:16:37,120 --> 00:16:40,200 Speaker 1: flexibility in the joints. But the structure that's made with 349 00:16:40,240 --> 00:16:43,480 Speaker 1: the more flexible joints, it shook around a little bit, 350 00:16:43,520 --> 00:16:46,680 Speaker 1: but guess what, it did not fall over. That's basically 351 00:16:46,720 --> 00:16:48,960 Speaker 1: what we're talking about. When it comes to being financially flexible. 352 00:16:48,960 --> 00:16:50,360 Speaker 1: You want to have a little bit of give and 353 00:16:50,400 --> 00:16:52,760 Speaker 1: the joints you want to be able to be adaptable 354 00:16:52,800 --> 00:16:55,200 Speaker 1: when it comes to the different circumstances that we face. 355 00:16:55,840 --> 00:16:57,680 Speaker 1: And one of the simplest ways we can gain more 356 00:16:57,680 --> 00:17:01,040 Speaker 1: financial flexibility in our lives is by in frugally, by 357 00:17:01,120 --> 00:17:04,600 Speaker 1: keeping major expenses in particular to a minimum in your life. 358 00:17:04,920 --> 00:17:07,440 Speaker 1: And so the largest sections of your monthly budget, they're 359 00:17:07,480 --> 00:17:10,800 Speaker 1: likely housing and cars, And if you ask those two 360 00:17:10,880 --> 00:17:13,159 Speaker 1: line items in a meaningful way, that's going to have 361 00:17:13,200 --> 00:17:15,800 Speaker 1: a massive effect on how flexible you can be. So 362 00:17:15,960 --> 00:17:17,760 Speaker 1: let's say you're in the house hacking, right, you slash 363 00:17:17,800 --> 00:17:22,200 Speaker 1: that expense even more. Like that's financial flexibility on steroids. 364 00:17:22,600 --> 00:17:24,760 Speaker 1: You're you're able to turn your living in situation potentially 365 00:17:24,800 --> 00:17:28,679 Speaker 1: into a profit generator, which just gives you an insane 366 00:17:28,720 --> 00:17:31,600 Speaker 1: amount of flexibility. Instead of turning something that is a 367 00:17:31,720 --> 00:17:34,600 Speaker 1: deficit every month turning it into an acid every month. 368 00:17:35,080 --> 00:17:38,320 Speaker 1: Is is that's an impressive way to change your trajectory 369 00:17:38,320 --> 00:17:41,600 Speaker 1: of your personal finances. You can become insanely financially resilient 370 00:17:41,600 --> 00:17:43,920 Speaker 1: doing that. And not everyone wants to run out a 371 00:17:43,960 --> 00:17:45,679 Speaker 1: room in their place or wants to sleep in the 372 00:17:45,720 --> 00:17:48,480 Speaker 1: living room like our friend Craig Kurlop did. Matt, that 373 00:17:48,560 --> 00:17:51,040 Speaker 1: was an interesting choice on his part, but it's it's 374 00:17:51,040 --> 00:17:53,480 Speaker 1: certainly he would credit that to a lot of the 375 00:17:53,480 --> 00:17:56,159 Speaker 1: reasons he's been able to accomplish his financial goals a 376 00:17:56,200 --> 00:17:58,800 Speaker 1: whole lot sooner in his twenties and early thirties. But 377 00:17:59,080 --> 00:18:00,640 Speaker 1: and I get that that's not for everyone, but it's 378 00:18:00,640 --> 00:18:02,960 Speaker 1: important to mention that the more you can reduce the 379 00:18:03,040 --> 00:18:05,520 Speaker 1: bigger line items in your budget, cutting a car out 380 00:18:05,520 --> 00:18:07,960 Speaker 1: of your life or at least reducing rent by moving 381 00:18:07,960 --> 00:18:10,240 Speaker 1: into a smaller place, I don't know, there are other 382 00:18:10,320 --> 00:18:12,760 Speaker 1: options out there for you. The more creative you can get, though, 383 00:18:13,080 --> 00:18:16,639 Speaker 1: you become so much more financially limber, and that's going 384 00:18:16,680 --> 00:18:20,119 Speaker 1: to have a massive impact on your ability to withstand 385 00:18:20,560 --> 00:18:24,159 Speaker 1: an adverse or an uneasy economy moving forward. Yeah, and 386 00:18:23,960 --> 00:18:26,040 Speaker 1: and we do like to focus on those big expenses, 387 00:18:26,119 --> 00:18:27,880 Speaker 1: right because we want you to get some of those 388 00:18:27,880 --> 00:18:31,719 Speaker 1: big wins under your belt before, certainly before you're kind 389 00:18:31,720 --> 00:18:35,000 Speaker 1: of just fretting and pouring over these really small expenses. 390 00:18:35,040 --> 00:18:38,040 Speaker 1: But like the small things in life matter too. Obviously 391 00:18:38,080 --> 00:18:39,840 Speaker 1: they're not going to move the needle quite as much, 392 00:18:39,920 --> 00:18:43,920 Speaker 1: but you know, getting those small, specifically recurring bills reduced 393 00:18:44,080 --> 00:18:46,320 Speaker 1: is really important. And I think that's the key word, 394 00:18:46,359 --> 00:18:48,320 Speaker 1: is the fact that they're recurring. That's how these small 395 00:18:48,320 --> 00:18:51,560 Speaker 1: expenses go from being something that seems like you shouldn't 396 00:18:51,600 --> 00:18:54,800 Speaker 1: be paying any attention to to maybe giving a little 397 00:18:54,800 --> 00:18:56,840 Speaker 1: bit more of your time and attention because there is 398 00:18:56,880 --> 00:18:59,919 Speaker 1: this outsized impact that they have because the fact that 399 00:19:00,040 --> 00:19:03,040 Speaker 1: they repeat again and again and so on one hand, 400 00:19:03,040 --> 00:19:05,000 Speaker 1: it doesn't seem like a big expense. But if this 401 00:19:05,040 --> 00:19:07,919 Speaker 1: is a recurring expense or like a subscription and you 402 00:19:07,960 --> 00:19:11,040 Speaker 1: never cancel it, like we're talking about like a you know, 403 00:19:11,040 --> 00:19:12,840 Speaker 1: it makes me think of like scrabble get like a 404 00:19:12,840 --> 00:19:15,800 Speaker 1: double triple word score. This is like a sixty x 405 00:19:15,880 --> 00:19:18,800 Speaker 1: multiplier impact. If this is an expense that you have 406 00:19:19,040 --> 00:19:20,720 Speaker 1: potentially for the rest of your life. And like we 407 00:19:20,720 --> 00:19:22,680 Speaker 1: talked about it on a recent Friday flight, we people 408 00:19:22,760 --> 00:19:25,720 Speaker 1: underestimate the amount of money they're spending on subscriptions, and 409 00:19:25,720 --> 00:19:28,440 Speaker 1: and so they downplay it like, yeah, I know, I've 410 00:19:28,480 --> 00:19:32,560 Speaker 1: got some monthly recurring expenditures that I probably could act, 411 00:19:32,840 --> 00:19:35,200 Speaker 1: But it's not that bad. Every is for most people. 412 00:19:35,240 --> 00:19:37,160 Speaker 1: It's it is bad. It's worth than any thing exactly, 413 00:19:37,160 --> 00:19:39,080 Speaker 1: like even yourself phone service or your internet bill, or 414 00:19:39,080 --> 00:19:42,679 Speaker 1: a gym membership, what you are paying for insurance. All 415 00:19:42,760 --> 00:19:45,280 Speaker 1: of these things matter, even something as small as you know, 416 00:19:45,320 --> 00:19:47,840 Speaker 1: trading down from a name brand to a store brand 417 00:19:48,400 --> 00:19:50,159 Speaker 1: or often for like a cheaper cut of meat. You know, 418 00:19:50,440 --> 00:19:53,920 Speaker 1: all of these moves, are you showing some flexibility to 419 00:19:53,920 --> 00:19:56,879 Speaker 1: to save when costs are rising? Yeah, yeah, that's a 420 00:19:56,880 --> 00:19:59,600 Speaker 1: good point, like that, these are all specific, tangible ways 421 00:20:00,000 --> 00:20:02,320 Speaker 1: that you can make yourself more financially resilient and more 422 00:20:02,320 --> 00:20:05,240 Speaker 1: financially flexible by cutting spending in the big ways and 423 00:20:05,320 --> 00:20:07,520 Speaker 1: the small ways. And now we talked about creating a 424 00:20:07,560 --> 00:20:10,040 Speaker 1: bare bones budget back on episode three sixty two. I 425 00:20:10,080 --> 00:20:12,320 Speaker 1: think that's an episode that that most folks should go 426 00:20:12,359 --> 00:20:14,560 Speaker 1: back and listen to if they haven't heard it, because 427 00:20:14,880 --> 00:20:16,600 Speaker 1: having one of those in places a great way to 428 00:20:16,640 --> 00:20:18,800 Speaker 1: be able to pivot if and when you need to. 429 00:20:19,200 --> 00:20:21,119 Speaker 1: And so basically, what we mean by a bare bones 430 00:20:21,119 --> 00:20:23,600 Speaker 1: budget is you've got your normal budget and you're saying, like, 431 00:20:23,680 --> 00:20:25,840 Speaker 1: this is what I spend typically every month, but there's 432 00:20:25,880 --> 00:20:27,119 Speaker 1: a lot of fluff in there. There's a lot of 433 00:20:27,160 --> 00:20:29,600 Speaker 1: things that are nice to have buy, but they're not 434 00:20:29,720 --> 00:20:32,080 Speaker 1: need to have, right the roof over your over your head, 435 00:20:32,160 --> 00:20:36,120 Speaker 1: maintaining maintaining insurance, like putting food on the table, those 436 00:20:36,119 --> 00:20:38,280 Speaker 1: are need to have. And so creating a bare bones 437 00:20:38,280 --> 00:20:41,560 Speaker 1: budget that helps you see exactly all the fluff you 438 00:20:41,560 --> 00:20:44,920 Speaker 1: can cut instantaneously if the worst possible thing happens. Let's 439 00:20:44,960 --> 00:20:47,000 Speaker 1: say you do lose a job or something like that, 440 00:20:47,200 --> 00:20:49,720 Speaker 1: if you saw a reduction in income, knowing that you 441 00:20:49,760 --> 00:20:52,879 Speaker 1: can immediately pivot to the bare bones budget versus the 442 00:20:52,920 --> 00:20:55,560 Speaker 1: one you normally use and reduce those expenses in a 443 00:20:55,560 --> 00:21:00,520 Speaker 1: meaningful way, basically overnight. By implementing the barebon budget, that 444 00:21:00,560 --> 00:21:02,680 Speaker 1: allows for a whole lot more peace of mind, and 445 00:21:02,920 --> 00:21:05,919 Speaker 1: it provides you additional time to find another job or 446 00:21:06,000 --> 00:21:09,000 Speaker 1: restore that income. We've heard from listeners Matt who have 447 00:21:09,400 --> 00:21:12,120 Speaker 1: implemented something like this and they've said, you know what, 448 00:21:12,160 --> 00:21:14,560 Speaker 1: when and they have lost a job and they've let 449 00:21:14,640 --> 00:21:17,040 Speaker 1: us know, guess what. Having more money and savings and 450 00:21:17,080 --> 00:21:21,320 Speaker 1: having a bare bones budget. Those two things dramatically impacted 451 00:21:21,400 --> 00:21:24,040 Speaker 1: my mental health while I was out of work. It 452 00:21:24,119 --> 00:21:26,600 Speaker 1: made me feel less like behind the eight ball and 453 00:21:26,640 --> 00:21:28,879 Speaker 1: more like I had some breathing room, I had some margin, 454 00:21:29,280 --> 00:21:31,639 Speaker 1: and I could take my time to see what was next, 455 00:21:31,840 --> 00:21:33,520 Speaker 1: as opposed to feeling like you got to go out 456 00:21:33,560 --> 00:21:36,720 Speaker 1: there and get the first crappiest job that you that 457 00:21:36,800 --> 00:21:38,960 Speaker 1: you get offered. Yeah, it's it's a hard financial tool 458 00:21:39,000 --> 00:21:40,800 Speaker 1: and that it allows you to see how much money 459 00:21:40,800 --> 00:21:42,359 Speaker 1: you're actually spending, but it's it's sort of like the 460 00:21:42,480 --> 00:21:45,320 Speaker 1: softer tool as well, Like it's it's a boost. It's 461 00:21:45,440 --> 00:21:47,919 Speaker 1: like it's an emotional boost that gives you the confidence 462 00:21:47,960 --> 00:21:50,000 Speaker 1: to know that things are likely going to be okay. 463 00:21:50,320 --> 00:21:52,040 Speaker 1: And so let let's kind of talk through some different 464 00:21:52,040 --> 00:21:56,159 Speaker 1: scenarios some ways, uh where you might see financial flexibility 465 00:21:56,160 --> 00:21:58,520 Speaker 1: play out in your life. And like one of the 466 00:21:58,520 --> 00:22:01,520 Speaker 1: ones I'm thinking of is the more flexibility you have, 467 00:22:02,000 --> 00:22:03,359 Speaker 1: the more that you're gonna be able to pounce on 468 00:22:03,400 --> 00:22:06,240 Speaker 1: a deal when it comes along budgeting. It's a great 469 00:22:06,280 --> 00:22:10,160 Speaker 1: way to plan your spending wisely. Always like taking that approach, 470 00:22:10,480 --> 00:22:12,600 Speaker 1: But what if you come across the deal that's just 471 00:22:12,720 --> 00:22:15,359 Speaker 1: too good to pass up. But you haven't budgeted for it. 472 00:22:15,400 --> 00:22:17,080 Speaker 1: Are you gonna be like a hard liner? Are you 473 00:22:17,119 --> 00:22:18,720 Speaker 1: gonna stick with the budget and be like, oh, well 474 00:22:18,800 --> 00:22:20,800 Speaker 1: I didn't budget for it, therefore I have to pass 475 00:22:20,880 --> 00:22:23,280 Speaker 1: up on this. Well, this is where having some financial 476 00:22:23,280 --> 00:22:26,680 Speaker 1: flexibility can come in handy you. Obviously you don't want 477 00:22:26,680 --> 00:22:29,560 Speaker 1: to overdo this, right, But the truth is that having 478 00:22:29,760 --> 00:22:33,080 Speaker 1: an additional chunk of money set aside for killer deals 479 00:22:33,240 --> 00:22:36,280 Speaker 1: like uh, like an outrageously cheap flight or a mountain 480 00:22:36,280 --> 00:22:39,600 Speaker 1: bike that's off that can be really nice, and it 481 00:22:39,600 --> 00:22:41,639 Speaker 1: can allow you to feel like you can make that 482 00:22:41,680 --> 00:22:44,320 Speaker 1: a priority when you otherwise may have just walked away 483 00:22:44,400 --> 00:22:46,840 Speaker 1: all bombed realizing that like, well I'm gonna have to 484 00:22:46,920 --> 00:22:48,880 Speaker 1: maybe I'll budget for that next year. It's like, no, 485 00:22:49,240 --> 00:22:51,480 Speaker 1: pounce on the deal. Take advantage of the situation and 486 00:22:51,520 --> 00:22:53,879 Speaker 1: being flexible and having that extra cash on hand is 487 00:22:53,920 --> 00:22:55,800 Speaker 1: what's going to allow you to do that. Yeah, it 488 00:22:55,840 --> 00:22:57,600 Speaker 1: makes me, but I don't really have to be saving 489 00:22:57,760 --> 00:22:59,879 Speaker 1: for those chief flights, Matt, because I'm gonna be your 490 00:23:00,040 --> 00:23:01,879 Speaker 1: companion from here on out, which is nice. Still going 491 00:23:01,920 --> 00:23:03,800 Speaker 1: to cover the theeas and taxes, dull, that's true, but 492 00:23:03,840 --> 00:23:07,280 Speaker 1: those are cheap. Those are very cheap. But let's talk 493 00:23:07,320 --> 00:23:10,159 Speaker 1: to financial flexibility. It also means being flexible with your 494 00:23:10,200 --> 00:23:12,399 Speaker 1: timeline and your goals based on what's happening with the 495 00:23:12,400 --> 00:23:14,520 Speaker 1: economy and with the market in general. It's like a 496 00:23:14,560 --> 00:23:18,159 Speaker 1: mental flexibility. Yeah, for sure. You can see this really 497 00:23:18,160 --> 00:23:20,920 Speaker 1: acutely right now in the housing market. Let's say that 498 00:23:21,000 --> 00:23:22,679 Speaker 1: for a couple of years, you've been saving up and 499 00:23:22,720 --> 00:23:25,960 Speaker 1: looking to buy your first house, which is exciting, right, 500 00:23:26,000 --> 00:23:28,480 Speaker 1: That's something you've been looking forward to. It was exciting. 501 00:23:28,560 --> 00:23:30,840 Speaker 1: It's not exciting anymore. A lot of folks, it's actually 502 00:23:30,880 --> 00:23:33,440 Speaker 1: quite scary now they're not excited about it, right, because 503 00:23:33,440 --> 00:23:35,960 Speaker 1: and maybe you're getting close to that ideal down payment 504 00:23:35,960 --> 00:23:37,919 Speaker 1: amount and you're like, man, I've been listening to how 505 00:23:37,920 --> 00:23:39,439 Speaker 1: the money and I have gotten so much better with 506 00:23:39,480 --> 00:23:41,439 Speaker 1: my finances, and I am stocking away more and like 507 00:23:41,480 --> 00:23:43,320 Speaker 1: we are at this point and we are ready to buy. 508 00:23:43,320 --> 00:23:46,359 Speaker 1: But now, because of rising interest rates, housing has become 509 00:23:46,840 --> 00:23:49,879 Speaker 1: way less affordable. The question is like should you still pounce? 510 00:23:49,920 --> 00:23:52,920 Speaker 1: And so much of that depends on so many specifics 511 00:23:52,960 --> 00:23:55,360 Speaker 1: of your situation, and we can't speak to that directly. 512 00:23:55,440 --> 00:23:58,760 Speaker 1: But highly flexible folks. A lot of highly flexible folks 513 00:23:59,000 --> 00:24:02,320 Speaker 1: would opt to weight, hoping to see price declines in 514 00:24:02,359 --> 00:24:04,359 Speaker 1: the coming months. But let's say the house of your 515 00:24:04,440 --> 00:24:07,600 Speaker 1: dreams comes along, A highly financially flexible person might also 516 00:24:07,920 --> 00:24:10,000 Speaker 1: choose to buy the home and then refinance at a 517 00:24:10,080 --> 00:24:13,400 Speaker 1: litter date, whin brates do eventually go down. But being 518 00:24:13,400 --> 00:24:16,600 Speaker 1: financially flexible, it's all about holding out for a better 519 00:24:16,800 --> 00:24:19,400 Speaker 1: environment or waiting for the right thing to come along, 520 00:24:19,400 --> 00:24:22,160 Speaker 1: instead of kind of forcing the issue. Opting to become 521 00:24:22,160 --> 00:24:25,440 Speaker 1: a house for by overspending is doing the exact opposite 522 00:24:25,440 --> 00:24:28,239 Speaker 1: of staying financially flexible. You're you might be locking your 523 00:24:28,280 --> 00:24:30,720 Speaker 1: locking yourself into something that is going to prevent your 524 00:24:30,760 --> 00:24:35,440 Speaker 1: financial flexibility in the future. That's right, Yeah, changing your spending, 525 00:24:35,520 --> 00:24:38,040 Speaker 1: changing your financial goals, shifting your timeline. That will make 526 00:24:38,080 --> 00:24:42,080 Speaker 1: sense based on what's happening in the economy. But how 527 00:24:42,200 --> 00:24:44,159 Speaker 1: can you be more financially flexible when it comes to 528 00:24:44,280 --> 00:24:46,760 Speaker 1: earning money. Let's talk about that here for a second, 529 00:24:46,960 --> 00:24:49,480 Speaker 1: because one thing that goes a long way, and that 530 00:24:49,600 --> 00:24:53,240 Speaker 1: endeavor that's worth discussing is to focus more on amassing 531 00:24:53,480 --> 00:24:56,520 Speaker 1: peace out money. I don't even remember what episode it 532 00:24:56,600 --> 00:24:57,840 Speaker 1: was but we'll link to it in the show notes. 533 00:24:57,880 --> 00:25:00,679 Speaker 1: When we originally talked about peace some money. This might 534 00:25:00,720 --> 00:25:03,639 Speaker 1: even be in the sub one hundred episode range. But 535 00:25:03,720 --> 00:25:06,880 Speaker 1: some of our listeners might have their minds entirely focused 536 00:25:07,000 --> 00:25:10,439 Speaker 1: on fire on financial independence, retiring early. They want to 537 00:25:10,480 --> 00:25:12,840 Speaker 1: amass a bunch of money. They want to stop working 538 00:25:12,920 --> 00:25:16,520 Speaker 1: way earlier than most folks. That's not a bad aim, 539 00:25:16,560 --> 00:25:19,880 Speaker 1: but the reality is that financial independence, it's it's more 540 00:25:19,880 --> 00:25:23,119 Speaker 1: on a spectrum and it's not only achieved by amassing 541 00:25:23,960 --> 00:25:26,800 Speaker 1: Typically what we say is twenty five times your annual 542 00:25:26,800 --> 00:25:29,960 Speaker 1: expenses and then quitting your job. Because the more money 543 00:25:29,960 --> 00:25:32,560 Speaker 1: that you're you're able to bank, the more cash backup 544 00:25:32,600 --> 00:25:35,239 Speaker 1: that you have the boulder that you can be in 545 00:25:35,280 --> 00:25:38,120 Speaker 1: your choices, essentially buying yourself some freedom. And we would 546 00:25:38,119 --> 00:25:40,480 Speaker 1: say that having a fatter bank account, having more cash 547 00:25:40,560 --> 00:25:44,200 Speaker 1: on hand, can empower you to do something like change careers, 548 00:25:44,240 --> 00:25:46,440 Speaker 1: to switch to a career that might pay a little 549 00:25:46,440 --> 00:25:48,240 Speaker 1: bit less but gives you more of what you're now 550 00:25:48,280 --> 00:25:50,520 Speaker 1: looking for in life. You can allow you to seek 551 00:25:50,560 --> 00:25:53,560 Speaker 1: employment just elsewhere, or to even ask for like a 552 00:25:53,600 --> 00:25:57,000 Speaker 1: promotion or for a raise that you might be nervous 553 00:25:57,080 --> 00:26:00,000 Speaker 1: to ask for all of these things are more possib 554 00:26:00,040 --> 00:26:02,159 Speaker 1: But when you've got that piece out money and you 555 00:26:02,160 --> 00:26:05,200 Speaker 1: mentioned seeking employment, maybe that might not pay you as much, 556 00:26:05,280 --> 00:26:08,080 Speaker 1: or maybe going to work for yourself, right, that's another 557 00:26:08,119 --> 00:26:10,080 Speaker 1: thing you can you can consider. It feels like when 558 00:26:10,119 --> 00:26:13,040 Speaker 1: you have more financial flex when you have more peace 559 00:26:13,040 --> 00:26:15,080 Speaker 1: out money, more money sitting in your bank account, it 560 00:26:15,119 --> 00:26:17,560 Speaker 1: makes you feel more confident, more runway to go start 561 00:26:17,600 --> 00:26:20,000 Speaker 1: your own thing and see what happens. It's also important 562 00:26:20,040 --> 00:26:23,200 Speaker 1: to mention that having multiple streams of income is another 563 00:26:23,240 --> 00:26:26,119 Speaker 1: way to make yourself more financially flexible. Not putting all 564 00:26:26,160 --> 00:26:29,240 Speaker 1: your eggs in one income basket can help you feel 565 00:26:29,240 --> 00:26:32,359 Speaker 1: more at ease and offer you more flexibility. Especially when 566 00:26:32,480 --> 00:26:35,520 Speaker 1: you're seeing nasty economic headlines and you're worried about your 567 00:26:35,520 --> 00:26:38,280 Speaker 1: own financial future. Well, not having it all tied to 568 00:26:38,560 --> 00:26:41,360 Speaker 1: one company or one paycheck can help alleviate at least 569 00:26:41,359 --> 00:26:43,840 Speaker 1: some of those fears. If you lose your main job 570 00:26:43,880 --> 00:26:45,840 Speaker 1: and you've got no other income coming in, that that 571 00:26:45,880 --> 00:26:47,720 Speaker 1: can be really scary. And so that's part of what 572 00:26:47,760 --> 00:26:50,720 Speaker 1: we like about owning rental properties. The cash flow they 573 00:26:50,760 --> 00:26:53,520 Speaker 1: produce each year and each and every month. It means 574 00:26:53,520 --> 00:26:56,200 Speaker 1: that we don't have to solely rely on our small 575 00:26:56,200 --> 00:26:58,919 Speaker 1: business income, but there are how the money may not 576 00:26:59,000 --> 00:27:02,879 Speaker 1: always be around. Hopefully it will hopefully yeah, well and 577 00:27:02,920 --> 00:27:06,320 Speaker 1: hopefully please don't cancel us right exactly what what if 578 00:27:06,560 --> 00:27:11,320 Speaker 1: Matt says something completely ridiculous, which is highly likely, highly unlikely, 579 00:27:11,359 --> 00:27:13,800 Speaker 1: and then it's gonna be you. If anyone gets canceled, 580 00:27:13,800 --> 00:27:16,399 Speaker 1: it's gonna be Joel. It's probably true, but there are 581 00:27:16,400 --> 00:27:18,520 Speaker 1: all sorts of things that could happen to dry up 582 00:27:18,960 --> 00:27:22,359 Speaker 1: some of our income, like ad spending could dramatically reduces 583 00:27:22,680 --> 00:27:25,600 Speaker 1: that's a big part of our livelihood. But having another 584 00:27:25,680 --> 00:27:28,440 Speaker 1: stream of income, having other sources where we make income 585 00:27:28,480 --> 00:27:32,159 Speaker 1: every month means we're not as reliant specifically on the 586 00:27:32,200 --> 00:27:35,040 Speaker 1: podcast to make money or and so that's something you 587 00:27:35,040 --> 00:27:38,359 Speaker 1: can implement into your life as well, and it's important 588 00:27:38,400 --> 00:27:41,600 Speaker 1: to mention not all the ways you can generate additional 589 00:27:41,600 --> 00:27:44,520 Speaker 1: income streams are not created equal, but side gigs are 590 00:27:44,600 --> 00:27:46,640 Speaker 1: one way to do it. Although here's the thing, you're 591 00:27:46,680 --> 00:27:50,240 Speaker 1: straight up trading time for money when you choose to 592 00:27:50,320 --> 00:27:52,640 Speaker 1: drive for Lift or Uber or something like that. Having 593 00:27:52,640 --> 00:27:54,879 Speaker 1: a side hustle is kind of different. It allows you 594 00:27:54,920 --> 00:27:57,359 Speaker 1: to to start building up your own business, which can 595 00:27:57,400 --> 00:28:00,560 Speaker 1: be another effective route and it's often more animal but 596 00:28:00,600 --> 00:28:02,359 Speaker 1: it often takes a little more time for that to 597 00:28:02,400 --> 00:28:04,800 Speaker 1: pay out from a financial perspective. But we would say 598 00:28:04,800 --> 00:28:07,359 Speaker 1: building up other streams of income over time so you 599 00:28:07,400 --> 00:28:10,000 Speaker 1: aren't reliant on a single job or a single employer 600 00:28:10,359 --> 00:28:14,040 Speaker 1: is massively helpful. It makes you a more financially flexible persons. Right, Yeah, 601 00:28:14,080 --> 00:28:16,720 Speaker 1: So on that note, actually, it's important to keep your 602 00:28:16,720 --> 00:28:20,720 Speaker 1: eyes open to where opportunity exists, right and to be 603 00:28:20,720 --> 00:28:22,879 Speaker 1: able to strike when you know, while the iron is hot. 604 00:28:23,560 --> 00:28:26,680 Speaker 1: Weird economic times, they have often been the best time 605 00:28:27,200 --> 00:28:30,120 Speaker 1: for people to in particular, let's start their own businesses. 606 00:28:30,520 --> 00:28:33,280 Speaker 1: This kind of seems counterintuitive, but it's totally true. We've 607 00:28:33,320 --> 00:28:36,320 Speaker 1: actually seen the pandemic accelerate the rate at which small 608 00:28:36,359 --> 00:28:39,240 Speaker 1: businesses are being created. We think that's a good thing. 609 00:28:39,640 --> 00:28:43,280 Speaker 1: Before the pandemic that we're around is something on average 610 00:28:43,280 --> 00:28:47,480 Speaker 1: like two nine new businesses being formed every month, but 611 00:28:47,560 --> 00:28:52,120 Speaker 1: then by July spiked to over five and fifty thousand 612 00:28:52,280 --> 00:28:54,840 Speaker 1: new businesses formed in just one month. It's like almost 613 00:28:54,880 --> 00:28:58,040 Speaker 1: double yeah, and you know it's it's leveled off now. 614 00:28:58,440 --> 00:29:00,720 Speaker 1: According to the data from the Census here we're holding 615 00:29:00,720 --> 00:29:04,880 Speaker 1: steady at around UH four fifteen thousand new businesses per month. 616 00:29:05,120 --> 00:29:07,800 Speaker 1: But that is a large number of individuals who discovered 617 00:29:07,800 --> 00:29:10,120 Speaker 1: that they were either a unhappy with the work that 618 00:29:10,160 --> 00:29:12,720 Speaker 1: they're doing uh and decided to make a change or 619 00:29:12,800 --> 00:29:14,800 Speaker 1: be at the very least, it's a it's a large 620 00:29:14,880 --> 00:29:18,840 Speaker 1: number of entrepreneurs who have identified a problem. Right. They 621 00:29:18,920 --> 00:29:20,880 Speaker 1: focused in on a whole in the market that they 622 00:29:20,920 --> 00:29:24,480 Speaker 1: are seeking to fill. Uh. Anytime there are changes within 623 00:29:24,520 --> 00:29:28,080 Speaker 1: the economy, there's also going to be opportunity there. You 624 00:29:28,120 --> 00:29:30,440 Speaker 1: have to be able to recognize those problems. Uh. And 625 00:29:30,520 --> 00:29:32,840 Speaker 1: how it is that you can provide value. Um. It 626 00:29:32,880 --> 00:29:34,280 Speaker 1: makes me think about Joel, Like when Kate and I 627 00:29:34,280 --> 00:29:39,200 Speaker 1: started our photography company, oh my gosh, like fifteen years ago. 628 00:29:39,200 --> 00:29:41,200 Speaker 1: I didn't can't even do the math now, but nobody 629 00:29:41,280 --> 00:29:44,520 Speaker 1: was basically providing the kind of photography that we knew 630 00:29:44,520 --> 00:29:46,960 Speaker 1: that we could provide. And so I say that because 631 00:29:47,320 --> 00:29:51,280 Speaker 1: it sort of sounds like a cold, emotionless business decisions 632 00:29:51,360 --> 00:29:53,280 Speaker 1: like oh there's a need in the market, Oh there's 633 00:29:53,680 --> 00:29:56,920 Speaker 1: value to be provided. But that's so important in order 634 00:29:56,960 --> 00:29:59,240 Speaker 1: for a business to be able to sustain itself. Right, 635 00:29:59,400 --> 00:30:01,040 Speaker 1: I think a lot of times when folks talk about 636 00:30:01,120 --> 00:30:04,840 Speaker 1: entrepreneurship they use words like passion. Uh, they use words 637 00:30:04,920 --> 00:30:07,760 Speaker 1: like they try to over romanticize it, and it's about 638 00:30:09,080 --> 00:30:10,400 Speaker 1: I don't know, just like all of these kind of 639 00:30:10,960 --> 00:30:14,240 Speaker 1: googlely mushy terms when it comes to the business and 640 00:30:14,280 --> 00:30:17,520 Speaker 1: how it's this thing that they're really excited about, your baby. 641 00:30:17,600 --> 00:30:19,680 Speaker 1: There's a lot of emotional words attached to it as 642 00:30:19,680 --> 00:30:22,640 Speaker 1: opposed to some of these harder, more business types of words. 643 00:30:22,640 --> 00:30:25,240 Speaker 1: But it can't just be about passion and what is 644 00:30:25,400 --> 00:30:26,800 Speaker 1: what it is that you want to do. You have 645 00:30:26,840 --> 00:30:29,320 Speaker 1: to actually identify a market. And so I think it 646 00:30:29,440 --> 00:30:32,800 Speaker 1: just really pays to be aware to the different opportunities 647 00:30:32,920 --> 00:30:36,520 Speaker 1: that might be revealing themselves to you in this current economy. 648 00:30:36,600 --> 00:30:40,040 Speaker 1: Possible to be passionate about something that actually loses your 649 00:30:40,080 --> 00:30:42,480 Speaker 1: money instead of makes you absolutely that's called a hobby, 650 00:30:42,600 --> 00:30:45,719 Speaker 1: yeah right, or internet gambling, which is a bad idea. Well, 651 00:30:45,880 --> 00:30:48,400 Speaker 1: it makes me think too, talking about like flexibility and 652 00:30:48,480 --> 00:30:51,520 Speaker 1: kind of pouncing on opportunity matt and and starting your 653 00:30:51,520 --> 00:30:53,160 Speaker 1: own business. That just makes it makes me think of 654 00:30:53,160 --> 00:30:54,920 Speaker 1: a conversation I had with someone when we went to 655 00:30:54,960 --> 00:30:57,920 Speaker 1: Finncon this year, which is our nerdy financial media conference, 656 00:30:58,280 --> 00:31:01,280 Speaker 1: and someone told me about getting a stimulus check and 657 00:31:01,320 --> 00:31:05,160 Speaker 1: how that revolutionized, that changed their life. And it's amazing 658 00:31:05,240 --> 00:31:08,080 Speaker 1: how just like this small influx of cash from the 659 00:31:08,080 --> 00:31:11,520 Speaker 1: government unexpectedly, when everything else was going well in her life, 660 00:31:11,560 --> 00:31:14,800 Speaker 1: she was able to still meet her other financial obligations. 661 00:31:15,080 --> 00:31:17,400 Speaker 1: It was like seed money for her to start her business. 662 00:31:17,720 --> 00:31:21,800 Speaker 1: And now she's massive, like she's making meaningful income from 663 00:31:21,800 --> 00:31:24,200 Speaker 1: that business. She's been able to quit her regular job. 664 00:31:24,480 --> 00:31:25,640 Speaker 1: These are the kind of things like this is what 665 00:31:25,640 --> 00:31:27,959 Speaker 1: we're talking about with financial flexibility. What do you do 666 00:31:28,000 --> 00:31:30,200 Speaker 1: when an unexpected sum of money drops in your lab 667 00:31:30,560 --> 00:31:33,600 Speaker 1: and you know what matt coming soon in a few months. 668 00:31:33,720 --> 00:31:35,239 Speaker 1: A lot of people are going to experience that with 669 00:31:35,400 --> 00:31:37,600 Speaker 1: a tax refund. What are you gonna do when that 670 00:31:37,680 --> 00:31:39,479 Speaker 1: drops in your lab? Are you going to use it 671 00:31:39,480 --> 00:31:42,760 Speaker 1: to fund your next venture to start something, or are 672 00:31:42,800 --> 00:31:45,320 Speaker 1: you gonna spend it on stuff? We would say the 673 00:31:45,320 --> 00:31:48,520 Speaker 1: financially flexible flexible person would take that as an opportunity 674 00:31:48,800 --> 00:31:52,000 Speaker 1: to start something meaningful, as opposed to just soaking it 675 00:31:52,080 --> 00:31:55,520 Speaker 1: up and making some more random purchases. That's right. So yeah, 676 00:31:55,680 --> 00:31:58,160 Speaker 1: these have been a few different examples of how financial 677 00:31:58,200 --> 00:32:02,040 Speaker 1: flexibility can man manifest itself in your life. But we're 678 00:32:02,040 --> 00:32:05,480 Speaker 1: gonna continue down the practical side of things. We want 679 00:32:05,480 --> 00:32:08,120 Speaker 1: to make sure that you have some practical steps that 680 00:32:08,200 --> 00:32:11,280 Speaker 1: allow you to achieve financial flexibility, and we will get 681 00:32:11,320 --> 00:32:23,400 Speaker 1: to those right after this. Alright, let's keep rolling. We're 682 00:32:23,400 --> 00:32:27,440 Speaker 1: talking about how to become more financially flexible. And the 683 00:32:27,520 --> 00:32:30,600 Speaker 1: reality is, like most Americans, the financial state they're in, 684 00:32:30,960 --> 00:32:35,920 Speaker 1: they've got no flexibility right Their income barely exceeds their outgoing. 685 00:32:36,280 --> 00:32:40,000 Speaker 1: They don't have enough margin to be flexible. They're living 686 00:32:40,240 --> 00:32:42,960 Speaker 1: paycheck to paycheck. And we've talked about the stats of 687 00:32:42,960 --> 00:32:46,920 Speaker 1: how even people making significant amounts of money six figures 688 00:32:47,480 --> 00:32:50,000 Speaker 1: in many cases are still living paycheck to paycheck. It's 689 00:32:50,000 --> 00:32:52,560 Speaker 1: a real problem. And so what we want for our listeners, 690 00:32:52,640 --> 00:32:54,680 Speaker 1: no matter what your income is, we want you to 691 00:32:54,680 --> 00:32:56,479 Speaker 1: have flexibility in your life so that you can make 692 00:32:56,560 --> 00:32:58,640 Speaker 1: choices that are best for you and your family, no 693 00:32:58,800 --> 00:33:01,360 Speaker 1: matter what's happening in the broader economy as a whole. 694 00:33:01,640 --> 00:33:04,160 Speaker 1: And so far we've painted a picture of what it 695 00:33:04,160 --> 00:33:06,560 Speaker 1: could look like if you're financially flexible. Hopefully, we've laid 696 00:33:06,560 --> 00:33:09,720 Speaker 1: out a few different scenarios that you can grasp onto 697 00:33:09,760 --> 00:33:11,640 Speaker 1: where you can see, oh, this is a way in 698 00:33:11,640 --> 00:33:13,720 Speaker 1: which I could take advantage of this low rate at 699 00:33:13,720 --> 00:33:15,120 Speaker 1: this period of time, or a way in which I 700 00:33:15,120 --> 00:33:17,320 Speaker 1: could pounce because I got some extra cash, or a 701 00:33:17,320 --> 00:33:20,160 Speaker 1: way in which, yeah, I could modify my behavior based 702 00:33:20,200 --> 00:33:23,280 Speaker 1: on what's happening around me. But let's let's do more. 703 00:33:23,360 --> 00:33:26,000 Speaker 1: Let's get super specific and practical what steps you need 704 00:33:26,040 --> 00:33:28,000 Speaker 1: to take to become more financially flexible in your life. 705 00:33:28,000 --> 00:33:31,320 Speaker 1: And we would say having solid savings is a foundational 706 00:33:31,320 --> 00:33:35,080 Speaker 1: element of flexible finance, right. Being in a strong cash 707 00:33:35,120 --> 00:33:38,000 Speaker 1: position is kind of the bedrock of being able to 708 00:33:38,040 --> 00:33:40,960 Speaker 1: do so much what we have already discussed. So whether 709 00:33:40,960 --> 00:33:43,520 Speaker 1: that's the ability to pounce on a deal because companies 710 00:33:43,560 --> 00:33:46,800 Speaker 1: are liquidating inventory, right, or whether that means having the 711 00:33:46,840 --> 00:33:49,640 Speaker 1: financial margin on hand to be able to launch that 712 00:33:49,680 --> 00:33:51,800 Speaker 1: new business venture, whatever it is you're looking to do. 713 00:33:51,880 --> 00:33:55,160 Speaker 1: It's it's crucial to have at least that basically fund 714 00:33:55,160 --> 00:33:57,800 Speaker 1: amount that we always talk about two thousand, four hundred 715 00:33:57,840 --> 00:34:00,520 Speaker 1: and sixty seven dollars, and after that you want something 716 00:34:00,560 --> 00:34:03,280 Speaker 1: like three to six months worth of expenses in your 717 00:34:03,280 --> 00:34:07,080 Speaker 1: savings account on hand. That in and of itself is 718 00:34:07,120 --> 00:34:09,279 Speaker 1: going to make a massive difference in and how much, 719 00:34:09,280 --> 00:34:12,480 Speaker 1: by the way, depends on your specific financial situation. But 720 00:34:12,880 --> 00:34:15,319 Speaker 1: getting to that level, getting to that point, if you're 721 00:34:15,320 --> 00:34:18,520 Speaker 1: not there yet, you'll be surprised at just how mentally 722 00:34:18,600 --> 00:34:21,279 Speaker 1: free you feel and how much actual backstop you have 723 00:34:21,320 --> 00:34:24,120 Speaker 1: to make different decisions in your life based on what's happening. Yeah, well, 724 00:34:24,120 --> 00:34:26,279 Speaker 1: I mean speaking of mental freedom, right, like having that 725 00:34:26,360 --> 00:34:30,360 Speaker 1: cash on hand, it has these non monetary benefits as well. 726 00:34:30,400 --> 00:34:33,400 Speaker 1: It's going to reduce stress in your life. More cash 727 00:34:33,480 --> 00:34:36,000 Speaker 1: egals more peace of mind. And when you are living 728 00:34:36,000 --> 00:34:39,200 Speaker 1: paycheck to paycheck, you know where you're on the financial precipice. 729 00:34:39,400 --> 00:34:42,120 Speaker 1: That is a stressful place to be, and it can 730 00:34:42,160 --> 00:34:45,080 Speaker 1: also get expensive. Folks who have no marginal are more 731 00:34:45,160 --> 00:34:48,360 Speaker 1: likely to overdraw their checking account, for instance, leading to 732 00:34:48,480 --> 00:34:51,600 Speaker 1: fees that can exacerbate the problem. If that's the case, 733 00:34:51,640 --> 00:34:53,480 Speaker 1: if you're banking with a bank that is charging you 734 00:34:53,520 --> 00:34:56,360 Speaker 1: crappy fees, we would recommend that you bank elsewhere, go 735 00:34:56,400 --> 00:34:58,439 Speaker 1: with one of the great online banks that we talked 736 00:34:58,440 --> 00:35:00,640 Speaker 1: about all the time. But you're also going to be 737 00:35:00,719 --> 00:35:03,520 Speaker 1: more likely than to turn to worse financial products or 738 00:35:03,520 --> 00:35:06,279 Speaker 1: to even get worse deals from companies that you end 739 00:35:06,360 --> 00:35:09,600 Speaker 1: up doing business with, for instance, paid a loans, or 740 00:35:09,680 --> 00:35:11,799 Speaker 1: if you're at a bad financial state, let's say your 741 00:35:11,840 --> 00:35:14,080 Speaker 1: credit isn't so great, well, you're gonna pay more for 742 00:35:14,160 --> 00:35:17,000 Speaker 1: car insurance in most states, making it even harder to 743 00:35:17,040 --> 00:35:20,080 Speaker 1: get ahead. And then no surprise, right scrambling to pay 744 00:35:20,120 --> 00:35:22,840 Speaker 1: all of these additional fees, all of these new bills, 745 00:35:22,840 --> 00:35:24,600 Speaker 1: these new payments that that you have every month, is 746 00:35:24,640 --> 00:35:28,520 Speaker 1: going to continue to take a toll on your not 747 00:35:28,560 --> 00:35:30,640 Speaker 1: only your mental health, but just the impacts that's going 748 00:35:30,680 --> 00:35:33,040 Speaker 1: to have on your physical well being as well. Less 749 00:35:33,200 --> 00:35:37,880 Speaker 1: financial flexibility means just you're beholden more to companies who 750 00:35:37,840 --> 00:35:40,600 Speaker 1: you're doing business with, and that creates additional financial hardships 751 00:35:40,600 --> 00:35:43,120 Speaker 1: and mental stress too. And it's important to note as 752 00:35:43,160 --> 00:35:45,399 Speaker 1: well that there are actually some financial tools that can 753 00:35:45,400 --> 00:35:48,040 Speaker 1: help you be more flexible. So we'd say savings is 754 00:35:48,080 --> 00:35:50,759 Speaker 1: a part of that. It's it's a crucial step in 755 00:35:50,840 --> 00:35:54,799 Speaker 1: order to become more financially flexible. But let's talk about 756 00:35:54,840 --> 00:35:58,600 Speaker 1: some actual tools you can use simultaneously that might help you, 757 00:35:58,640 --> 00:36:01,479 Speaker 1: that might aid you in being more flexible. Let's let's 758 00:36:01,520 --> 00:36:03,360 Speaker 1: start with like if you own a home, write a 759 00:36:03,360 --> 00:36:05,640 Speaker 1: home equity line of credit that can allow you to 760 00:36:05,719 --> 00:36:09,280 Speaker 1: reduce the emergency fund that you have to have on hand, 761 00:36:09,640 --> 00:36:12,439 Speaker 1: allowing you to potentially invest a little bit more if 762 00:36:12,880 --> 00:36:15,720 Speaker 1: let's say all the markets down right. Uh. It still 763 00:36:15,760 --> 00:36:19,080 Speaker 1: offers a bit of financial backstop at much less egregious 764 00:36:19,080 --> 00:36:21,319 Speaker 1: interest rates than credit cards. Because if you don't pay 765 00:36:21,320 --> 00:36:23,440 Speaker 1: your credit card bill off on time and in full 766 00:36:23,480 --> 00:36:25,720 Speaker 1: every month, we're not cool with that. That doesn't provide 767 00:36:25,760 --> 00:36:28,840 Speaker 1: you financial flexibility. That makes you beholden to the banks, 768 00:36:28,840 --> 00:36:31,279 Speaker 1: into the credit card providers. So the goal is to 769 00:36:31,520 --> 00:36:35,000 Speaker 1: not tap that helock, but to have it available should 770 00:36:35,040 --> 00:36:37,360 Speaker 1: you need it in case of an emergency. And we 771 00:36:37,360 --> 00:36:39,560 Speaker 1: don't think this takes you off the hook for having 772 00:36:39,560 --> 00:36:42,000 Speaker 1: cash on hand. It doesn't mean we want you to 773 00:36:42,080 --> 00:36:46,479 Speaker 1: be comfortable having bucks in savings like that's not enough. 774 00:36:46,560 --> 00:36:48,680 Speaker 1: But it can be an effective backup to the backup. 775 00:36:48,760 --> 00:36:50,360 Speaker 1: That's how we think about it. And the same is 776 00:36:50,360 --> 00:36:52,239 Speaker 1: true with a roth ira because that's actually one of 777 00:36:52,239 --> 00:36:56,440 Speaker 1: the most flexible accounts you can sock away investment dollars into. 778 00:36:56,719 --> 00:36:59,040 Speaker 1: You're putting in after tax dollars. You have the ability 779 00:36:59,080 --> 00:37:02,400 Speaker 1: to take all of the contributions out tax and penalty 780 00:37:02,440 --> 00:37:05,279 Speaker 1: free because of the way the wrath is constructed, and 781 00:37:05,320 --> 00:37:07,240 Speaker 1: so if you've been contributing for a bunch of years 782 00:37:07,239 --> 00:37:09,080 Speaker 1: some of that wrath money, it can act as a 783 00:37:09,080 --> 00:37:12,960 Speaker 1: backup to the backup too, again, like tapping that helock, 784 00:37:13,320 --> 00:37:16,520 Speaker 1: tapping your wrath to pay for consumption really bad idea. 785 00:37:16,800 --> 00:37:18,319 Speaker 1: But the fact that you can have both of these 786 00:37:18,360 --> 00:37:23,160 Speaker 1: tools acting as extreme backups does allow for more financial flexibility. 787 00:37:23,239 --> 00:37:25,800 Speaker 1: It means you do have a last line of defense 788 00:37:25,840 --> 00:37:29,759 Speaker 1: basically if something does go wrong. But also investing that 789 00:37:29,960 --> 00:37:32,239 Speaker 1: is important as well, And specifically, let's talk about being 790 00:37:32,239 --> 00:37:36,200 Speaker 1: opportunistic because investing more when the stock market is on sale, 791 00:37:36,200 --> 00:37:38,960 Speaker 1: that can be a way to take advantage of some 792 00:37:39,160 --> 00:37:41,439 Speaker 1: not so great economic news of a not so great 793 00:37:41,440 --> 00:37:44,360 Speaker 1: economic cycle. That being said, it's easier some than done 794 00:37:44,680 --> 00:37:46,560 Speaker 1: than done right. Like some folks they will sit on 795 00:37:46,600 --> 00:37:49,600 Speaker 1: cash for far too long in an effort to invest 796 00:37:49,640 --> 00:37:51,920 Speaker 1: while the market starts to sag at you know, they 797 00:37:52,000 --> 00:37:53,680 Speaker 1: like they want to catch it at the bottom basically, 798 00:37:54,200 --> 00:37:56,239 Speaker 1: but then that often means that they're missing out on 799 00:37:56,280 --> 00:37:59,759 Speaker 1: opportunities along the way if they get the timing wrong 800 00:37:59,800 --> 00:38:02,360 Speaker 1: and they're trying to time it perfectly. But in the 801 00:38:02,400 --> 00:38:04,319 Speaker 1: same way that we want you to be able to 802 00:38:04,440 --> 00:38:06,120 Speaker 1: pounce on a deal when you see an item mark 803 00:38:06,200 --> 00:38:08,719 Speaker 1: down or an item that's on clearance. We want you 804 00:38:08,760 --> 00:38:11,759 Speaker 1: to adopt that same mentality when it comes to your investments. 805 00:38:11,880 --> 00:38:13,880 Speaker 1: And that's great news if you are in the wealth 806 00:38:13,960 --> 00:38:15,960 Speaker 1: growing stage of your life. But let's say you're getting 807 00:38:16,200 --> 00:38:20,280 Speaker 1: closer to retirement. Maybe you'd love to quit tomorrow, um, 808 00:38:20,320 --> 00:38:23,759 Speaker 1: but you've seen a fairly dramatic decline in your retirement account. Well, 809 00:38:23,800 --> 00:38:26,200 Speaker 1: this is we're making an intentional effort to be flexible. 810 00:38:26,280 --> 00:38:28,000 Speaker 1: Is really going to pay off. You've got a couple 811 00:38:28,040 --> 00:38:30,080 Speaker 1: options here. You could continue to work a little bit 812 00:38:30,160 --> 00:38:33,719 Speaker 1: longer where you are. You're keeping that revenue stream alive 813 00:38:34,320 --> 00:38:37,279 Speaker 1: while giving your investments time to recover. Or you could 814 00:38:37,360 --> 00:38:39,960 Speaker 1: opt to reduce your lifestyle right like maybe pushing off 815 00:38:39,960 --> 00:38:42,000 Speaker 1: some of the some of the expensive travel that you've 816 00:38:42,040 --> 00:38:44,160 Speaker 1: been hoping to do. Either way, that would allow you 817 00:38:44,200 --> 00:38:47,800 Speaker 1: to sidestep that sequence of returns risk, that risk you 818 00:38:47,880 --> 00:38:50,719 Speaker 1: face by immediately taking out too much of your portfolio 819 00:38:50,920 --> 00:38:55,160 Speaker 1: immediately after retirement, hamstringing your retirement plans. Uh. And you 820 00:38:55,200 --> 00:38:58,480 Speaker 1: know you do this by not tapping those accounts, allowing 821 00:38:58,520 --> 00:39:00,640 Speaker 1: them time to recover. Yeah, and what you're what you're 822 00:39:00,640 --> 00:39:02,640 Speaker 1: saying there too, is it so much of it depends 823 00:39:02,640 --> 00:39:06,560 Speaker 1: on your specific personal financial situation, right, how you're able 824 00:39:06,560 --> 00:39:08,960 Speaker 1: to be flexible and how you're able to pounce, because 825 00:39:08,960 --> 00:39:10,920 Speaker 1: it's gonna look different for someone who's in their twenties 826 00:39:11,000 --> 00:39:14,359 Speaker 1: versus someone who's in their sixties. And that's a good point, Like, 827 00:39:14,440 --> 00:39:17,320 Speaker 1: but what can you do? I think it feels pretty 828 00:39:17,360 --> 00:39:19,240 Speaker 1: crappy if you're in your sixties and you were ready 829 00:39:19,280 --> 00:39:22,239 Speaker 1: to retire this year or next year or something like that. 830 00:39:22,719 --> 00:39:25,920 Speaker 1: But the truth is there are options available to you. 831 00:39:26,320 --> 00:39:29,040 Speaker 1: They can allow you to be more flexible, and it's 832 00:39:29,040 --> 00:39:31,960 Speaker 1: not always a fun or easy decision, but the truth is, 833 00:39:32,000 --> 00:39:35,200 Speaker 1: like you have more ability, more say over your life 834 00:39:35,239 --> 00:39:37,400 Speaker 1: than you think. Yeah, Like you know, it kind of 835 00:39:37,440 --> 00:39:40,600 Speaker 1: reminds me of traveling by car because maybe, like the 836 00:39:40,640 --> 00:39:43,400 Speaker 1: older school method would be, you pull out the ray 837 00:39:43,400 --> 00:39:45,319 Speaker 1: and McNally, you look at the map whatever, you print 838 00:39:45,360 --> 00:39:47,359 Speaker 1: off the directions via map quest, and you've got all 839 00:39:47,360 --> 00:39:50,279 Speaker 1: the pages. They're sitting your passenger seat, and you've identified 840 00:39:50,640 --> 00:39:52,520 Speaker 1: a route, a path that you're gonna take, even by 841 00:39:52,640 --> 00:39:54,239 Speaker 1: we're not old enough to have done that. So I 842 00:39:54,280 --> 00:39:56,160 Speaker 1: never did that. I printed out a map quest directions 843 00:39:56,200 --> 00:39:57,719 Speaker 1: back in the day, but I grew up as a 844 00:39:57,760 --> 00:40:00,239 Speaker 1: kid sitting in the passenger seat looking at the US. 845 00:40:00,320 --> 00:40:02,759 Speaker 1: Oh yeah, dude, I loved it. I was like I 846 00:40:02,760 --> 00:40:04,640 Speaker 1: had the binoculars. I would like look off in the 847 00:40:04,680 --> 00:40:09,279 Speaker 1: distance for for police, just in case that happened to 848 00:40:09,320 --> 00:40:12,879 Speaker 1: be going going too fast. Never worked out though, because 849 00:40:12,920 --> 00:40:14,839 Speaker 1: it's so shaky. But like, that's kind of the old 850 00:40:14,880 --> 00:40:17,040 Speaker 1: school method. And that's what it looks like to to 851 00:40:17,080 --> 00:40:19,319 Speaker 1: not be flexible because we didn't have the information to 852 00:40:19,400 --> 00:40:20,960 Speaker 1: let us know that there is a better route. But 853 00:40:21,040 --> 00:40:23,560 Speaker 1: today what do we have. We've got ways, and all 854 00:40:23,600 --> 00:40:27,359 Speaker 1: of a sudden, it's like rerouting. By going this route, 855 00:40:27,360 --> 00:40:29,640 Speaker 1: you will say, however much time and tells you when 856 00:40:29,640 --> 00:40:33,120 Speaker 1: police are on the come up. But there is a 857 00:40:33,160 --> 00:40:36,560 Speaker 1: degree of flexibility when it comes to following directions like that. 858 00:40:36,600 --> 00:40:39,960 Speaker 1: But I mean, in my experience, I have always followed 859 00:40:39,960 --> 00:40:42,680 Speaker 1: those instructions because they do get you there faster. And 860 00:40:42,719 --> 00:40:46,359 Speaker 1: so it takes having a more open spirit, a willingness 861 00:40:46,440 --> 00:40:50,640 Speaker 1: to try something different even though that wasn't your original intent. Yeah, 862 00:40:50,719 --> 00:40:52,640 Speaker 1: and by the way, I think it's important to mention 863 00:40:52,680 --> 00:40:54,200 Speaker 1: that there are ways in which you could attempt to 864 00:40:54,200 --> 00:40:58,120 Speaker 1: be financially flexible, taking advantage of different cycles that might 865 00:40:58,440 --> 00:41:01,239 Speaker 1: actually produce the wrong aults. Let's say you're like, wait 866 00:41:01,280 --> 00:41:04,880 Speaker 1: a second, this stock is down, maybe I should invest 867 00:41:04,920 --> 00:41:07,800 Speaker 1: now because because it's not doing so hot, But that 868 00:41:07,800 --> 00:41:09,440 Speaker 1: that would be different than what we'd recommend. We don't. 869 00:41:09,520 --> 00:41:12,040 Speaker 1: We don't want you to invest in individual stocks basically, 870 00:41:12,040 --> 00:41:14,560 Speaker 1: no matter what, unless you're just it's play money, right 871 00:41:14,560 --> 00:41:16,799 Speaker 1: that you're messing around with you. But yeah, there's a 872 00:41:16,800 --> 00:41:20,600 Speaker 1: fine line between being opportunistic and then speculated, Yes, speculating 873 00:41:20,640 --> 00:41:23,200 Speaker 1: being stupid. The truth is like, how can you become 874 00:41:23,200 --> 00:41:26,719 Speaker 1: more financially flexible? It makes me think about just physical flexibility, Matt, 875 00:41:26,719 --> 00:41:29,120 Speaker 1: my body. I am not the most flexible guy. I 876 00:41:29,160 --> 00:41:31,840 Speaker 1: remember in elementary school my gym teacher would say, like 877 00:41:31,880 --> 00:41:33,239 Speaker 1: I would be doing the sitting reach and the like, 878 00:41:33,680 --> 00:41:35,400 Speaker 1: but for real, you should try. I'm like, no, I 879 00:41:35,440 --> 00:41:38,920 Speaker 1: am trying. I'm just not flexible. The Presidential Fitness Challenge 880 00:41:38,440 --> 00:41:42,960 Speaker 1: that whatever, yes, and I was horrible at it, largely 881 00:41:43,000 --> 00:41:45,279 Speaker 1: because I'm not flexible at all. But it's like you 882 00:41:45,320 --> 00:41:48,839 Speaker 1: can do a decent number of jump ropes or whatever. 883 00:41:48,840 --> 00:41:50,319 Speaker 1: I can't remember what else we have the rule or 884 00:41:50,360 --> 00:41:51,960 Speaker 1: sit and reach thing like I would terrible at your 885 00:41:51,960 --> 00:41:54,040 Speaker 1: foot against the box. Do you have to like reach past? Yes, 886 00:41:54,280 --> 00:41:57,160 Speaker 1: not happening. For couldn't do it, but I probably could, 887 00:41:57,160 --> 00:41:59,160 Speaker 1: write if I started working on it. I wanted to 888 00:41:59,160 --> 00:42:01,640 Speaker 1: get there, and I was doing a certain amount of 889 00:42:01,760 --> 00:42:04,879 Speaker 1: stretching every single day. There's a way that you can forge, right. 890 00:42:05,320 --> 00:42:07,640 Speaker 1: I just need to make it a priority. My lower 891 00:42:07,719 --> 00:42:09,680 Speaker 1: back would probably feel better if I did too. But 892 00:42:09,840 --> 00:42:12,080 Speaker 1: as James Clear says, Matt, I love this quote. He says, 893 00:42:12,080 --> 00:42:14,799 Speaker 1: the ultimate form of preparation is not planning for a 894 00:42:14,800 --> 00:42:18,640 Speaker 1: specific scenario, but a mindset that can handle uncertainty. And 895 00:42:18,640 --> 00:42:21,560 Speaker 1: so we didn't talk a lot about mindset. We talked 896 00:42:21,600 --> 00:42:23,080 Speaker 1: a lot about We try to give a lot of 897 00:42:23,080 --> 00:42:25,319 Speaker 1: practical advice in this episode, a little bit, just as 898 00:42:25,320 --> 00:42:28,120 Speaker 1: far as shifting your goals and changing what it is 899 00:42:28,160 --> 00:42:31,520 Speaker 1: that's an acceptable financial goal for you. And the truth is, 900 00:42:31,560 --> 00:42:34,680 Speaker 1: you can just shake your fist at the economic conditions right, 901 00:42:34,800 --> 00:42:36,920 Speaker 1: or you can adapt. You can you can be the 902 00:42:37,280 --> 00:42:40,400 Speaker 1: get off my lawn type person who is just angry 903 00:42:40,440 --> 00:42:43,359 Speaker 1: at the situation, or you can make a change. And 904 00:42:43,640 --> 00:42:46,400 Speaker 1: you can't plan for every potential scenario that might occur. 905 00:42:46,560 --> 00:42:48,720 Speaker 1: That is true, but most of us have more wiggle 906 00:42:48,800 --> 00:42:51,480 Speaker 1: room and more say over where our dollars go than 907 00:42:51,600 --> 00:42:54,360 Speaker 1: we think. And and the reality is that all of 908 00:42:54,400 --> 00:42:57,080 Speaker 1: us can plan more effectively for uncertainty, which of course 909 00:42:57,200 --> 00:43:00,400 Speaker 1: is something you're gonna regularly encounter for the rest of 910 00:43:00,440 --> 00:43:03,520 Speaker 1: your life. Uncertainty change. Like you said earlier, Matt, is 911 00:43:03,520 --> 00:43:06,120 Speaker 1: the only constant. Uncertainty is a reality of life, and 912 00:43:06,160 --> 00:43:08,799 Speaker 1: so it's worth spending more time preparing yourself and your 913 00:43:08,800 --> 00:43:11,799 Speaker 1: finances so that you can be more adaptable, especially like, 914 00:43:11,840 --> 00:43:13,680 Speaker 1: who knows what the future holds. We couldn't have predicted 915 00:43:13,680 --> 00:43:15,400 Speaker 1: a lot of the things that are happening now. We 916 00:43:15,440 --> 00:43:17,200 Speaker 1: don't know what's gonna be happening over the next year 917 00:43:17,280 --> 00:43:20,799 Speaker 1: or two. Will inflation be tamed, will mortgage rates come down? 918 00:43:21,200 --> 00:43:24,040 Speaker 1: We don't know. But the more adaptable and flexible you 919 00:43:24,080 --> 00:43:26,520 Speaker 1: can be, the more you can take advantage of economic 920 00:43:26,600 --> 00:43:28,680 Speaker 1: cycles as they shift. And you know it all right, man, 921 00:43:28,760 --> 00:43:31,320 Speaker 1: Let's get back to our beer you and I enjoyed 922 00:43:31,600 --> 00:43:34,920 Speaker 1: on this episode, UH six, which is a dark rise, 923 00:43:35,080 --> 00:43:39,120 Speaker 1: says On with layered malt flavors, pleasant stone and mineral 924 00:43:39,160 --> 00:43:41,839 Speaker 1: notes and the dry finish. I didn't even launch into 925 00:43:41,880 --> 00:43:44,760 Speaker 1: my tasting notes yet. That's just reading what the bottle 926 00:43:44,800 --> 00:43:48,520 Speaker 1: bottle said. This is by upright brewing out there in Portland, Oregon. 927 00:43:48,840 --> 00:43:51,640 Speaker 1: What were your thoughts on this one, buddy? So when 928 00:43:51,680 --> 00:43:54,680 Speaker 1: I opened this bottle, I thought, says on great, I'm 929 00:43:54,719 --> 00:43:56,960 Speaker 1: looking forward to this one. It was so very different 930 00:43:57,000 --> 00:44:00,359 Speaker 1: than I expected it. Actually, I didn't think was gonna 931 00:44:00,360 --> 00:44:02,160 Speaker 1: look like this or taste like this. It didn't. Yeah, 932 00:44:02,520 --> 00:44:06,280 Speaker 1: didn't have those typical traditional saison notes. That being said, 933 00:44:06,760 --> 00:44:08,080 Speaker 1: I liked it in a lot of ways. It was 934 00:44:08,120 --> 00:44:11,359 Speaker 1: more like Belgian do bell in my opinion. It had 935 00:44:11,400 --> 00:44:13,480 Speaker 1: like some of those spices. It was actually darker than 936 00:44:13,520 --> 00:44:16,400 Speaker 1: I expected. Most saisons are are lighter. It's not my 937 00:44:16,520 --> 00:44:19,480 Speaker 1: favorite style, but it is a decent fall beer. Is 938 00:44:19,560 --> 00:44:20,920 Speaker 1: kind of like the perfect time to drink it, if 939 00:44:20,920 --> 00:44:23,520 Speaker 1: we're gonna drink this beer early winter beer. Yeah, so 940 00:44:23,640 --> 00:44:26,799 Speaker 1: I'll say I liked it, even though it was not 941 00:44:26,880 --> 00:44:28,480 Speaker 1: what I was about at what you're expecting when I 942 00:44:28,480 --> 00:44:31,279 Speaker 1: popped the town. It kind of has like this unrefined 943 00:44:31,520 --> 00:44:33,239 Speaker 1: character to it, Like it almost kind of feels like 944 00:44:33,280 --> 00:44:35,160 Speaker 1: a like tastes like a really good homebrew. I was 945 00:44:35,200 --> 00:44:36,960 Speaker 1: gonna say kind of like, kind of like you unrefined, 946 00:44:37,200 --> 00:44:40,680 Speaker 1: undefined like me, it's so like the malts, I feel like, 947 00:44:40,800 --> 00:44:43,640 Speaker 1: are you I mean you mentioned a double or do belle. 948 00:44:44,040 --> 00:44:46,040 Speaker 1: I feel like it tastes more like a Belgian quad 949 00:44:46,520 --> 00:44:50,080 Speaker 1: but then without the big robust backbone, like it's got 950 00:44:50,080 --> 00:44:53,279 Speaker 1: those darker notes and some raisin e vibes. Totally got 951 00:44:53,280 --> 00:44:55,440 Speaker 1: the razor raising is going on, but it doesn't have 952 00:44:55,480 --> 00:44:59,280 Speaker 1: those Belgian yeasts um that give it that super Belgian flavor. 953 00:44:59,360 --> 00:45:02,640 Speaker 1: Just has those dark or flavors. It's real brown bread raisins. 954 00:45:03,239 --> 00:45:05,640 Speaker 1: It wasn't overly sweet as well, so it definitely had 955 00:45:05,680 --> 00:45:08,960 Speaker 1: that dry character. But simultaneously it was dark, right, and 956 00:45:08,960 --> 00:45:11,080 Speaker 1: so I feel like you don't often get dry and 957 00:45:11,160 --> 00:45:13,640 Speaker 1: dark in the same bottle. Normally, if it's dark, that 958 00:45:13,719 --> 00:45:16,080 Speaker 1: means there's a lot of a lot of sugar in it. 959 00:45:16,280 --> 00:45:18,760 Speaker 1: And so the fact that this is dark and dry, 960 00:45:18,880 --> 00:45:20,960 Speaker 1: it's almost as if it doesn't compute, like these two 961 00:45:21,080 --> 00:45:24,960 Speaker 1: sort of flavors shouldn't belong together, like an enigma beer. Yeah, yeah, 962 00:45:25,000 --> 00:45:28,400 Speaker 1: it's it's very very interesting. It's not a combination that 963 00:45:28,440 --> 00:45:30,200 Speaker 1: you would expect, but I liked it. I would say 964 00:45:30,239 --> 00:45:33,239 Speaker 1: pretty good. Uh, And it's always fun to have a beer, 965 00:45:33,680 --> 00:45:36,360 Speaker 1: a different kind of beer than what we're typically used to, 966 00:45:36,600 --> 00:45:38,399 Speaker 1: as well as a beer by a brewery that we've 967 00:45:38,440 --> 00:45:41,120 Speaker 1: never had before. We've never had an upright brewing beer. 968 00:45:41,239 --> 00:45:43,399 Speaker 1: Looks like it's it's got a bass cleft on that hop. 969 00:45:43,520 --> 00:45:45,200 Speaker 1: So this says upright. I wonder if it's like an 970 00:45:45,280 --> 00:45:47,600 Speaker 1: upright basse or something like it. I wonder if that's 971 00:45:47,640 --> 00:45:50,600 Speaker 1: like the origins of this brewery. But appreciate you picking 972 00:45:50,640 --> 00:45:51,680 Speaker 1: this one up, and I'm glad that you and I 973 00:45:51,680 --> 00:45:53,959 Speaker 1: got to share it today. Agreed. All Right, that's gonna 974 00:45:53,960 --> 00:45:55,839 Speaker 1: do it for this episode. If you want show notes 975 00:45:55,880 --> 00:45:58,920 Speaker 1: links to some of the articles or previous episodes we mentioned, 976 00:45:59,080 --> 00:46:00,759 Speaker 1: you can find those up on our website at how 977 00:46:00,840 --> 00:46:02,799 Speaker 1: to money dot com. That's right, buddy, So that's going 978 00:46:02,840 --> 00:46:05,319 Speaker 1: to be it until next time. Best Friends Out, Best 979 00:46:05,400 --> 00:46:06,359 Speaker 1: Friends Out,