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

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Speaker 1: Today we are answering your listener questions. You know what, man,

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Speaker 1: this is a listener Question Monday where we've got five

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Speaker 1: excellent questions we are going to get to today, including

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Speaker 1: a question from a listener and she's asking about the

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Speaker 1: impact of settling some debts. We've got another couple and

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Speaker 1: they're asking where to stash some money for their upcoming wedding.

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Speaker 1: I'm looking forward to that. Muzzle took to y'all and

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Speaker 1: another listeners asking what to do with money that was

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Speaker 1: given to his new baby. He knows that he's not

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Speaker 1: supposed to put it under the crypt mattress. No matter what,

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Speaker 1: you should never do that, but you don't want to

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Speaker 1: do that. Looking forward to talking about that one baby.

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Speaker 1: She just can't be trusted with money in general. One

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Speaker 1: they're either going to blow it on stupid stuff or

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Speaker 1: they're gonna stick in their mouth. And money is dirty.

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Speaker 1: Everyone knows that. Let's let's that's a smart baby. If

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Speaker 1: you care about your child, don't give them. What If

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Speaker 1: he's got a boss baby, then all right, we're talking

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Speaker 1: different circumstances. There is that a kids movie that's like

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Speaker 1: for adults, right, Uh no, I think it was made

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Speaker 1: for kids. Really yeah, okay, maybe not our kids, you know,

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Speaker 1: it's it's for like teenagers, right, like for like twelve

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Speaker 1: year olds. I don't think so. I think it's for

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Speaker 1: like kid kids. Okay, yeah, well we're supposed to be

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Speaker 1: funny kid humor. But maybe we'll watch this maybe all right, Well, Matt,

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Speaker 1: Before before we get to these listening questions, I did

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Speaker 1: want to mention, at the risk of sounding somewhat repetitive,

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Speaker 1: all these a great place to save money on groceries.

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Speaker 1: I believe that, And I was reminded this, like everybody

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Speaker 1: knows what about your Costco doctas listen at all I

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Speaker 1: Costco is great. Love Costco. There are two different things,

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Speaker 1: though you know, I still haven't been. It's like I

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Speaker 1: have three kids and I can love them all like

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Speaker 1: the same thing is true of like loving Costco and

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Speaker 1: all the For for me, Costco is the child from

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Speaker 1: another marriage that I never visit neither, which I don't have,

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Speaker 1: by the way, but I have a Costco membership, but

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Speaker 1: we have still never been to the Costco actually here

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Speaker 1: in Atlanta, and it's a shame we only go when

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Speaker 1: we're out of town. You should remedy that this weekend

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Speaker 1: soon enough. All right, Well, so I was in I

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Speaker 1: was in all the other day and guess what the

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Speaker 1: price of a gallon of milk was? Five dollars. No,

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Speaker 1: most places are now you can't go under that far.

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Speaker 1: Like that's just not how this guesting game works. But

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Speaker 1: jump them back and forth. But basically, if you go

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Speaker 1: to most grocery stores these days, milk is gonna cost

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Speaker 1: you somewhere in the range of three dollars to three

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Speaker 1: dollars and fifty cents a gallon at all the it's

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Speaker 1: like prices. It's a dollar ten for a gallon of milk,

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Speaker 1: and so is it ten cents for a leader and

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Speaker 1: it comes to a class jar. You know, it's funny,

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Speaker 1: but randomly the half game. And this has been this

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Speaker 1: way for like multiple months now, so it's not just

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Speaker 1: like a one day thing for some in their milk

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Speaker 1: so cheap. The half gallon costs more than the gallon.

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Speaker 1: So even if you only drink the half gallon, usually

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Speaker 1: buy the gallon. But it's one of those and not

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Speaker 1: everybody drinks milk, I know. But it's just a reminder

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Speaker 1: to me that, like all, the is consistently changing the

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Speaker 1: game in in grocery pricing, and there not only they

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Speaker 1: just making it cheaper for their customers, but they're having

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Speaker 1: an impact in the competitive landscape of groceries making it

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Speaker 1: cheaper basically everywhere to shop for groceries are keeping prices

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Speaker 1: low across the board. But that being said, they're still

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Speaker 1: cheaper at all than they are any other grocery store,

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Speaker 1: and it's not even close in many In many circumstances,

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Speaker 1: like I got strawberries the other day, they're a dollar

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Speaker 1: thirty nine for a pint, and I haven't seen them

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Speaker 1: cheaper than two dollars and fifty cents a pint somewhere else.

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Speaker 1: So they're not always guaranteed to be lower on every

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Speaker 1: single item, but they're going to be consistently lower, and

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Speaker 1: if you shop at all they your grocery bill is

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Speaker 1: going to go down a lot most definitely. Yeah, and

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Speaker 1: milk specifically, I mean, I don't think it's necessarily a

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Speaker 1: lost leader, because I've read that the quality is good. Right,

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Speaker 1: it's a generic, private label, and so they're able to

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Speaker 1: get their their milk. They negotiate directly with farmers. I

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Speaker 1: bet they're still losing money on it to get you yeah,

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Speaker 1: I think it to sell that price, they're definitely losing

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Speaker 1: well and just generally speaking, because they're able to keep

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Speaker 1: overhead costs low. Right, Like you get the cart, you

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Speaker 1: gotta stick that quarter in there. They only have a

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Speaker 1: certain number of items, and so they're able to three

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Speaker 1: or four employees in the store. You stop quickly yet

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Speaker 1: because you have to return your own cart and you

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Speaker 1: don't need somebody who's retrieving the carts. I love it.

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Speaker 1: I will say one thing I don't like about the milk.

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Speaker 1: So sometime last year they switched they kind of had.

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Speaker 1: They used to have like these more squatty like square

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Speaker 1: looking milk jugs, like it was flat on topic. It

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Speaker 1: made it look like where you could like almost like

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Speaker 1: where you could stack them or something like that. Sure, yeah,

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Speaker 1: they stack a better actually that those are cheaper to ship.

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Speaker 1: I think well that those jugs poured wonderfully, like I mean,

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Speaker 1: no dribble down the side or real. It's funny because

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Speaker 1: most people say the opposite, and I have felt the

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Speaker 1: opposite of no, no no dude ever since they moved to

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Speaker 1: the more traditional looking milk jug with like the you

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Speaker 1: know more the pointy top, I swear every single time,

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Speaker 1: it just like dribbles down the side, gets on the bottom,

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Speaker 1: and you've got the ring of milk inside your fridge

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Speaker 1: every single time. Honestly, it might have had something to

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Speaker 1: do with us switching to organic. I mean, we pay,

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Speaker 1: you know, way more for milk, you know, like we're

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Speaker 1: paying like three bucks for like a half gallon um.

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Speaker 1: But that being said, you know what, I don't have

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Speaker 1: to wipe up a milk mess every single time. And

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Speaker 1: plus you know, we're going to organic for other reasons

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Speaker 1: as well. But that's one thing that I really disliked

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Speaker 1: about the new package redesign. I don't know who's in

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Speaker 1: charge of making, you know, making that call, but I

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Speaker 1: disliked it. Well, you should tweet at them if you'd

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Speaker 1: like to let them know. But it's just it's still

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Speaker 1: it's just impressive. Like, you know, we're all concerned about

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Speaker 1: the rising cost of food and what inflation is doing

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Speaker 1: to our budgets. And if you want one easy decision

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Speaker 1: that's going to help when it comes to finding inflation

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Speaker 1: in your life and making sure that your grocery bill

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Speaker 1: doesn't like, you know, climb into the Stratosphere. I feel

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Speaker 1: like that simple choice of going to all the instead

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Speaker 1: of a lot of the other grocery stores you could

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Speaker 1: go to, at least for some of your items, is

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Speaker 1: going to make a big difference. But Matt, let's move on.

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Speaker 1: Let's mention the beer that we're having on this episode.

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Speaker 1: This one is called sour Strawberry Rhubarb and it's by

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Speaker 1: speaking of Strawberry Edmonds. Host who Yeah, they're out of

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Speaker 1: South Carolina. I believe Charleston, so which is a great city.

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Speaker 1: And we will give our thoughts on this beer at

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Speaker 1: the end of the episode. But for now, let's get

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Speaker 1: to listener questions, and we've got five that we're gonna

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Speaker 1: take on this episode. If you have a question you

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Speaker 1: want us to answer in the future, you've out of

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Speaker 1: money question you want Matt and me to tackle, go

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Speaker 1: to how to money dot com slash ask their simple

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Speaker 1: instructions for you to submit your question our way, and Matt,

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Speaker 1: let's get to that first one. This one is about

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Speaker 1: settling a debt with your credit card company. Hi, Matt

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Speaker 1: and Joel, this is Megan calling from Fort Campbell, Kentucky.

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Speaker 1: I have a question regarding debt. Let's say through either

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Speaker 1: uninformed choices or through unfortunate circumstances, you find yourself with

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Speaker 1: a pretty significant amount of unsecured debt like credit cards,

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Speaker 1: in a situation where you're living paycheck to paycheck and

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Speaker 1: you don't have a lot of extra to be putting

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Speaker 1: towards that debt besides the minimum payment. Would you suggest

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Speaker 1: continuing to make the minimum payment, which obviously will take

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Speaker 1: several years and you'll end up paying quite a bit

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Speaker 1: of interest, or would you suggest stopping payments on one

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Speaker 1: or all of those debts and then settling with the

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Speaker 1: debt or for a lower amount. Obviously that ruined your

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Speaker 1: credit for a period of time, But is it worth

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Speaker 1: it to get the debt essentially settled and taken care of,

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Speaker 1: as opposed to taking a longer period of time to

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Speaker 1: pay the debt off the quote unquote right way. I

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Speaker 1: love to know your thoughts. Thank you alright, Megan, great question,

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Speaker 1: And you know, I'm not sure if this is actually

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Speaker 1: you in the scenario. It kind of sounds like a

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Speaker 1: hypothetical question. But we'll do our best to everyone out

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Speaker 1: there you might find themselves in a situation like this.

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Speaker 1: But first of all, you're you're right about those minimum payments.

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Speaker 1: You know, your your credit card statement, it will actually

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Speaker 1: show you how long it's going to take to pay

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Speaker 1: off that balance if you, you know, just stick with

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Speaker 1: those minimum monthly amounts and oftentimes depending on your balance,

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Speaker 1: like we're talking like years and years, like sometimes even decades,

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Speaker 1: and depressing to look down there at that statement. I mean,

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Speaker 1: it's hard enough when you know you have what is

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Speaker 1: the truth and lending statement where it tells you the

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Speaker 1: actual cost of the loan that a lender is required

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Speaker 1: to show you. That's also depressing where you're looking at

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Speaker 1: it and you're just like, oh my, this three dollar

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Speaker 1: house just cost six fifty. Yeah exactly. But I could

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Speaker 1: only imagine that would feel even like even a little

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Speaker 1: more sickening if that's on a credit card. Yep. And

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Speaker 1: that's because of just that insane amount of money that

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Speaker 1: you're paying towards interest that your credit card issuer is

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Speaker 1: receiving over those years. This is not an ideal strategy.

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Speaker 1: Paying those minimums on revolving high interest debt is something

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Speaker 1: that you only want to do if literally if you

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Speaker 1: have no other option. Yeah, so you kind of cut

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Speaker 1: to the chase. Matt, that's not something we want Megan

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Speaker 1: or anybody else doing just paying the minimum, because it

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Speaker 1: just ensures that you're going to be in debt for

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Speaker 1: a long, long time, paying a whole lot of your

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Speaker 1: hard earned money in interest to the credit card companies.

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Speaker 1: And and then you know, Megan asked about stopping payments,

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Speaker 1: Well that could put you in a better position. You know,

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Speaker 1: if you don't want to pay for a bunch of

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Speaker 1: months consecutively, your credit card company, well, they they might

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Speaker 1: just be willing to discuss a settlement for some of

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Speaker 1: the debt that you owe, but there's no guarantee that

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Speaker 1: they will. And additionally, even if they do settle, you're

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Speaker 1: likely going to see your credit score a major hit,

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Speaker 1: like you said, Megan, and so that that sucks, depending

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Speaker 1: on if you're gonna need your credit score for other

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Speaker 1: things that could have a major impact on your life.

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Speaker 1: And and yeah, just to put it into context, fair

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Speaker 1: Isaac says that someone with a score of six eighty,

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Speaker 1: they'd see a drop of about fifty points, whereas someone

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Speaker 1: with a higher score in the seven eight range, they

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Speaker 1: can see their score go down like a hundred and

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Speaker 1: fifty points, which is just a dramatic decrease and it's

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Speaker 1: gonna have profound impacts on your ability to take out

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Speaker 1: alone in the future. Um and on top of that,

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Speaker 1: you'll encourag a tax bill for the amount of debt

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Speaker 1: that's been forgiven too. So this is like long term damage, Matt.

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Speaker 1: These are uh, not small effects from what seems like

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Speaker 1: a small or insignificant choice. This is a big choice

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Speaker 1: that has ramifications that could last for years and years

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Speaker 1: and years. You know that damage sticks around, you know

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Speaker 1: the specifically it'll last seven years. Yes, we're talking about

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Speaker 1: you make this play, and you your credit score will

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Speaker 1: take that initial bump and it'll you know, slowly start

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Speaker 1: to I'm back up over time, but that you're right,

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Speaker 1: that settlement will remain on your credit report for seven years,

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Speaker 1: negatively affecting your score the entire time, although to a

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Speaker 1: lesser degree, you know, as you get closer to the

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Speaker 1: end of that seven years. But still it's like, this

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Speaker 1: is a big decision and it's one you don't want

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Speaker 1: to take lightly. That's right. Yeah, And Megan, you already

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Speaker 1: mentioned that you're living paycheck to paycheck, so we're not

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Speaker 1: even gonna talk about cutting back on your spending. Instead,

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Speaker 1: we want you to focus on the other side of

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Speaker 1: the equation, increasing your income, you know, while you're making

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Speaker 1: these minimum payments. That's the area that we would love

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Speaker 1: to see you focus on. And so is there a

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Speaker 1: way that you can get a raise at your current job,

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Speaker 1: or you know, considering like how hot the job market is,

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Speaker 1: Like have you been just out there pounding the pavement

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Speaker 1: to find something that could potentially offer you a higher

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Speaker 1: salary while still providing that meaningful work. Because if you

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Speaker 1: don't change how much money is flowing in, it's going

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Speaker 1: to be difficult to get rid of this debt once

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Speaker 1: and for all. You know, basically the input like that

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Speaker 1: needs to change in order for you to tackle this

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Speaker 1: debt in a more substantial way within a shorter amount

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Speaker 1: of time. Yeah, think of it like if you're trying

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Speaker 1: to build muscle mass, but you're not actually eating any food,

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Speaker 1: or the only food that you're eating is drunk food,

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Speaker 1: Like you're not fueling your body to actually um. You

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Speaker 1: might be pumping pumping iron, but you're not providing the

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Speaker 1: nutrients necessary to like help those muscles grow. At the

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Speaker 1: same time. You kind of have to have both, right,

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Speaker 1: That's right. You can't just see a bunch of Cheetos

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Speaker 1: and expect to be elsewll I mean unless they're like

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Speaker 1: Cheetos made with creatine, and then then maybe you can.

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Speaker 1: Uh but I hear that's just like water weights. Well yeah,

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Speaker 1: and if you're uh, if you're increasing income, I if

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Speaker 1: that's if that's proving too difficult. I think the last

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Speaker 1: thing that we need to kind of lay out there

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Speaker 1: for Megan or really anybody else in this position is

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Speaker 1: is that if your credit card debt is overwhelming you,

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Speaker 1: the best thing to do is not to like go

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Speaker 1: all Ostrich and put your head in the sand and

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Speaker 1: just stop paying the bill. The best thing to do

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Speaker 1: is is to go to a not for profit credit counselor.

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Speaker 1: And Money Management International and the National Foundation for Credit

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Speaker 1: Counseling that's NFCC dot org. Those are two organizations that

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Speaker 1: have local chapters across the country and they'll help you

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Speaker 1: for free. And so, yeah, they can help you come

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Speaker 1: up with the debt management plan. And the counselors of

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Speaker 1: these organizations and they even have the ability to negotiate

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Speaker 1: with the debt issuers on your behalf. And so most

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Speaker 1: of these services are offered at no cost to you.

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Speaker 1: You know, other folks on the internet will claim the

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Speaker 1: same abilities, but they're going to try to charge you

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Speaker 1: for them, and then oftentimes they leave you in a

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Speaker 1: worse position. In the end, you're out more money and

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Speaker 1: you're in you know, your credit scores in a bind,

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Speaker 1: and you still owe the full amount of the debt.

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Speaker 1: And so, yeah, we would suggest getting outside help from

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Speaker 1: one of these well respected nonprofits because that's really what

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Speaker 1: someone who is behind the debt eight ball to this

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Speaker 1: extent really needs. Like, if you're asking that question, you

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Speaker 1: can only afford the miniums for basically the rest of

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Speaker 1: your life. You're living paycheck to paycheck to that extent.

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Speaker 1: What you need is outside help, and this is really

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Speaker 1: the only place we would suggest turning for that outside help. Yeah,

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Speaker 1: and especially too, I mean, hopefully by talking to these

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Speaker 1: different agencies, they will help you to arrive at a

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Speaker 1: point to to where you understand if you need a

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Speaker 1: great credit score or not. Yes, we do talk about

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Speaker 1: the different ways at a good credit score, how that

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Speaker 1: can impact your life. But is it the worst thing

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Speaker 1: in the world for you to not be able to

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Speaker 1: get the best rate? Uh, you know, like on a

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Speaker 1: car loan? Well, you know, we don't necessarily want you

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Speaker 1: to have a car note if you cash for it,

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Speaker 1: you don't need better. Yeah, that score to be superstellar. Yeah,

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Speaker 1: obviously it will have an impact on, say a mortgage,

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Speaker 1: but say you are at least ten years from even

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Speaker 1: the thought of owning your own home. Well, if that's

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Speaker 1: the case, and you're completely underwater and you're struggling to

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Speaker 1: pay these bills, settling with a credit card, it may

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Speaker 1: not be the worst thing in the world. You know,

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Speaker 1: your credit score is a tool, but you do not

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Speaker 1: need a perfect credit score to to grow your wealth

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Speaker 1: and to make smart financial moves moving forward. So we

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Speaker 1: wanted to mention that because you've got to take into

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Speaker 1: account your own personal situation and what you've got looming

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Speaker 1: on the horizon, no doubt. So, Megan, best of luck

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Speaker 1: and anybody else out there in this situation. Again, getting

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Speaker 1: that pair of eyes on your situation from an expert

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Speaker 1: who helps people like you out day in and day out,

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Speaker 1: we think is a good thing too. All right, mat

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Speaker 1: let's get to a couple more questions, including someone who

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Speaker 1: wants to know where to put money that they're saving

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Speaker 1: up for a wedding. We'll get to that and more

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Speaker 1: right after this. M all right, Joel, we are back

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Speaker 1: from the break, and like you said, we will get

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Speaker 1: to that question about what to do with some wedding money.

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Speaker 1: But first we are going to hear from a listener

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Speaker 1: who's employer has an incredible match and he is trying

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Speaker 1: to figure out what to do with his debt. Hi,

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Speaker 1: Joel and Matt, my name is Luise. I am calling

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Speaker 1: from the Dallas Fort Worth metroplex area in Texas, and

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Speaker 1: I first off want to thank you guys so much

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Speaker 1: for all of the solid advice and great content you

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Speaker 1: guys put out. Thank you so much. I have a

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Speaker 1: question about my debt and my savings. I currently have

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Speaker 1: debt that I'm trying to pay off with the snowball method,

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Speaker 1: and I want to do it faster. And the way

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Speaker 1: that I want to do that is stop contributing to

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Speaker 1: my employer sponsored for one K. Now, my employer for

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Speaker 1: one K is a traditional four one K. They have

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Speaker 1: a rath option. However, they don't match the wrath. They

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Speaker 1: do match the traditional and they do it once a

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Speaker 1: year in March, and so every year I save twelve

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Speaker 1: percent and they match me twelve into that account. I

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Speaker 1: don't plan on being with the company next March. I

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Speaker 1: am currently looking for another job, and I have my

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Speaker 1: graduate degree now, I got my m b A, and

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Speaker 1: I'm currently looking for new opportunity. So I plan on

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Speaker 1: being gone. And what I want to do is stop

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Speaker 1: contributing to that four one K and contribute to my

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Speaker 1: roth IRA and contribute more to paying off the debt.

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Speaker 1: Now I'm not sure if this is the right way

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Speaker 1: to go, or maybe I should focus completely on paying

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Speaker 1: off the debt and hold off on the retirement account

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Speaker 1: until I start my next job and then save through them.

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Speaker 1: Or should I keep the account open and just contribute

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Speaker 1: a very small percentage or keep everything the same and

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Speaker 1: just keep doing what I'm doing. Any advice would be great,

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Speaker 1: thank you. It seems like Luis he's got a number

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Speaker 1: or of different options here to choose from this. This

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Speaker 1: nice having options like a financial buffet of choices that

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Speaker 1: he has, which not the worst thing in the world

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Speaker 1: to have a plenty of options that you're disposed right.

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Speaker 1: I haven't been to Golden Crowd since I was a kid,

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Speaker 1: though it's been a while. Should I go back? I

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Speaker 1: just don't want to get in a fight or something

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Speaker 1: like that, because I hear that happens now, which should

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Speaker 1: happen recently. So when I was a little little kid,

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Speaker 1: Ryan's was the buffet of choice for us. But then

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Speaker 1: we got a Golden Crow. Was that a step up? Yes?

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Speaker 1: It was, but they did not have those buttered east

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Speaker 1: rolls like Ryans. Did you know what I'm talking about.

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Speaker 1: It's been a long time, so not really, but I

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Speaker 1: know I went to a Ryan's when I was a kid,

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Speaker 1: so so literally, okay, small change that literally, me and

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Speaker 1: a friend of mine, Kyle, we drove to New York

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Speaker 1: City while we're in college for spring was it, I

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Speaker 1: don't know, spring break, fall break, winter break or something,

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Speaker 1: and we were driving. We got hungry. We didn't have

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Speaker 1: much money, but we we saw Ryan's. We pulled over

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Speaker 1: and bought in an entire container, I don't know, it's

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Speaker 1: like twenty four uh east rolls and we just ate

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Speaker 1: those for the car bloading. That's that's what we needed

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Speaker 1: to do. Name of the game and the marathon. Let's

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Speaker 1: move on to Luis's question. That's like interesting inside, I

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Speaker 1: think everyone wanted to know about you, and now now

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Speaker 1: they do. But I really like Louise's goal of paying

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Speaker 1: off his debt faster right, it's something that we're not

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Speaker 1: typically going to try to dissuade people away from paying

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Speaker 1: off their debt, right. Uh. And but it's also really

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Speaker 1: cool how Louise's employer matches twelve of his salary when

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Speaker 1: he's investing, and so that's kind of rare to most

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Speaker 1: employers match. I don't know half that much or less. So, yeah,

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Speaker 1: that's I'm sure that's accelerated his ability. Your salary that's

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Speaker 1: what will cover, right, Yeah, this is way more so. Yeah,

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Speaker 1: I'm sure that's just made it so much easier for

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Speaker 1: him to save quickly for retirement, which is great. And

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Speaker 1: uh and getting the full company matches money gear number

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Speaker 1: two on our list, and uh yeah, number one is

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Speaker 1: basically having that super small e fund almost in place.

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Speaker 1: But literally the second thing you're gonna want to focus

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Speaker 1: on is investing enough to get the full company match.

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Speaker 1: That's something that's nearer due to our hearts. We don't

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Speaker 1: want anyone avoiding that step while they're making financial progress.

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Speaker 1: But Louise, since it's sounds like you're on the way

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Speaker 1: out the door at least for the time being, it

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Speaker 1: seems like a different tactic might be in order. Totally. Yeah,

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Speaker 1: normally would say like, no way, you keep getting that match. Like,

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Speaker 1: that's what I was thinking as I was listening to,

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Speaker 1: you know, his question until he gave more the details,

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Speaker 1: because you always you always want to go with that

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Speaker 1: no brainer option that allows you to effectively double your investments.

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Speaker 1: But since that annual match, it just happened for him,

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Speaker 1: And since you don't plan on being there a year

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Speaker 1: from now, Luis, it doesn't seem necessary to focus all

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Speaker 1: of your attention there. We would still like for you

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Speaker 1: to be investing, and it sounds like that you're going

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Speaker 1: to be by funding your rath Eyre. That's great because

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Speaker 1: we would hate for you to to take time away

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Speaker 1: from saving for your future altogether. But since there's no

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Speaker 1: match with no added incentive, uh, you know, putting all

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Speaker 1: of your additional dollars towards debt elimination, uh seems totally reasonable. Yeah, yeah,

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Speaker 1: I agreed. And again, Matt, that is why personal finances,

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Speaker 1: personal and people specific situations matter when you're giving advice,

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Speaker 1: because yeah, there's if you're not actually going to get

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Speaker 1: the match because of the timing of the wig win

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Speaker 1: and how the employer puts that money into your account,

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Speaker 1: then it might make sense to prioritize something else and

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Speaker 1: and sometimes right that that singular focus on something like

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Speaker 1: debt paid down can actually help you make more rapid

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Speaker 1: progress too. And so that's like what the debt snowball

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Speaker 1: method really is all about. If you're in debt paydown

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Speaker 1: mode but you know you're not familiar with the different

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Speaker 1: paydown methods. We talked about those back in episode eight five,

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Speaker 1: specifically talked about the avalanche versus the snowball method. And

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Speaker 1: so if you find yourself in debt and you're trying

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Speaker 1: to figure out how to pay them off, that's an

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Speaker 1: episode worth listening to. But how you go about paying

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Speaker 1: off your debt is going to have a major impact

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Speaker 1: on how quickly it is that you get debt out

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Speaker 1: of your life. And if you want a helpful tool,

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Speaker 1: by the way, to help you create that plan, give

429
00:19:40,560 --> 00:19:44,040
Speaker 1: you some visualization of the progress you're making on debt

430
00:19:44,280 --> 00:19:47,359
Speaker 1: dot it is a great free resource with that in

431
00:19:47,400 --> 00:19:49,760
Speaker 1: the shows two on debt it and uh So much

432
00:19:49,840 --> 00:19:53,040
Speaker 1: of this though, has to do with people's personality. Matt, like, um,

433
00:19:53,080 --> 00:19:54,679
Speaker 1: you know, if you're if you're pumped, if you're like

434
00:19:54,760 --> 00:19:57,280
Speaker 1: hyper focused on getting rid of that debt and you

435
00:19:57,320 --> 00:20:00,359
Speaker 1: know this is like a burden that's been weighing you

436
00:20:00,400 --> 00:20:02,600
Speaker 1: down mentally, then it could make sense to go full

437
00:20:02,600 --> 00:20:05,760
Speaker 1: bore skip out on investing. It's not our favorite approach.

438
00:20:05,760 --> 00:20:07,640
Speaker 1: We like people to be doing both at the same time.

439
00:20:07,880 --> 00:20:09,520
Speaker 1: But if you are a kind of a maniacal debt

440
00:20:09,600 --> 00:20:12,119
Speaker 1: hater and you just want that stuff gone as quickly

441
00:20:12,160 --> 00:20:14,320
Speaker 1: as possible, and you feel like you can do it

442
00:20:14,400 --> 00:20:18,160
Speaker 1: in a much quicker time frame because you stop investing

443
00:20:18,240 --> 00:20:20,320
Speaker 1: for a specific period of time, then I think it's

444
00:20:20,359 --> 00:20:22,920
Speaker 1: a worthwhile decision for for some folks to make. Totally. Yeah,

445
00:20:22,960 --> 00:20:25,400
Speaker 1: that's that behavioral finance, that's that psychology side of money

446
00:20:25,400 --> 00:20:28,480
Speaker 1: where the numbers don't necessarily make sense, Like then the

447
00:20:28,560 --> 00:20:31,840
Speaker 1: numbers don't necessarily add up, but there are other benefits

448
00:20:31,840 --> 00:20:33,679
Speaker 1: that you have to keep in mind, and you you

449
00:20:33,680 --> 00:20:36,440
Speaker 1: figure those benefits out by knowing yourself. But let's talk

450
00:20:36,480 --> 00:20:38,440
Speaker 1: about debt for a second, because you know, you kind

451
00:20:38,440 --> 00:20:41,040
Speaker 1: of mentioned this earlier, Joe, Like, we're not fans of debt,

452
00:20:41,520 --> 00:20:44,480
Speaker 1: but some kinds of debt, of course, are going to

453
00:20:44,520 --> 00:20:47,359
Speaker 1: be worse than others getting rid of, like the nasty

454
00:20:47,520 --> 00:20:49,480
Speaker 1: kinds of debt, like credit card debt, in particular, that

455
00:20:49,520 --> 00:20:52,880
Speaker 1: can be life changing from a psychological standpoint as well

456
00:20:52,880 --> 00:20:55,920
Speaker 1: as a number standpoint. And so we're talking about let's say,

457
00:20:55,920 --> 00:20:57,680
Speaker 1: maybe paying off like a zero present car loan or

458
00:20:57,680 --> 00:21:00,200
Speaker 1: trying to pay off your three percent mortgage as gonna

459
00:21:00,200 --> 00:21:02,600
Speaker 1: be a different story, right, Like we're less keen on

460
00:21:02,680 --> 00:21:04,960
Speaker 1: you attacking debts like those, but getting rid of credit

461
00:21:04,960 --> 00:21:06,600
Speaker 1: card debt or student loan debt can feel like a

462
00:21:06,640 --> 00:21:09,439
Speaker 1: weight that it's suddenly just lifted from your shoulders. You

463
00:21:09,480 --> 00:21:12,560
Speaker 1: feel the tension melts away. Just you know, you gotta

464
00:21:12,640 --> 00:21:15,520
Speaker 1: keep that mental and emotional side of things in mind. Uh,

465
00:21:15,560 --> 00:21:18,399
Speaker 1: And the benefits that you would receive from getting rid

466
00:21:18,400 --> 00:21:21,200
Speaker 1: of your debt is important to consider in this equation.

467
00:21:21,440 --> 00:21:23,679
Speaker 1: Another factor to consider, too, is just how long it's

468
00:21:23,680 --> 00:21:25,879
Speaker 1: gonna take you to get rid of that debt, right,

469
00:21:25,920 --> 00:21:27,439
Speaker 1: Because if you want to go, like Joel said, like

470
00:21:27,440 --> 00:21:31,720
Speaker 1: full bore, focus solely on your debt, well is it

471
00:21:31,760 --> 00:21:34,439
Speaker 1: are we talking like six to seven years? Because that's

472
00:21:34,480 --> 00:21:37,320
Speaker 1: gonna look a lot different than six to seven months. Uh,

473
00:21:37,440 --> 00:21:39,679
Speaker 1: I'm not gonna you know, a bat an eyelash if

474
00:21:39,760 --> 00:21:41,760
Speaker 1: you are, you know, if you're saying, hey, I'm gonna

475
00:21:41,760 --> 00:21:44,439
Speaker 1: miss out on setting aside money towards my retirement for

476
00:21:44,480 --> 00:21:47,320
Speaker 1: six to seven months, but I'm gonna feel so much better, Uh,

477
00:21:47,560 --> 00:21:50,160
Speaker 1: more power to you six to seven years though. Uh

478
00:21:50,200 --> 00:21:52,920
Speaker 1: you start thinking through all of the potential upsides of

479
00:21:53,000 --> 00:21:55,440
Speaker 1: the market's going to have within that period of time. Uh,

480
00:21:55,480 --> 00:21:57,600
Speaker 1: and that would be something that we would be even

481
00:21:57,680 --> 00:22:00,440
Speaker 1: less excited about. Yep, for sure. I agree. The shorter

482
00:22:00,440 --> 00:22:02,160
Speaker 1: of the time period, the more it can make sense

483
00:22:02,200 --> 00:22:04,800
Speaker 1: to forego investing to take care of that debt quickly

484
00:22:04,800 --> 00:22:06,560
Speaker 1: so you can then get back on the investing train

485
00:22:06,720 --> 00:22:08,920
Speaker 1: and in an even bigger way. By the way, Luis,

486
00:22:08,960 --> 00:22:11,240
Speaker 1: best of luck. Finding a new job now is of

487
00:22:11,280 --> 00:22:13,200
Speaker 1: course a great time to be in the job market,

488
00:22:13,480 --> 00:22:16,719
Speaker 1: and hopefully you get another match, just a suite at

489
00:22:16,760 --> 00:22:20,240
Speaker 1: your next employer, um, but very badly maybe not though,

490
00:22:20,280 --> 00:22:21,719
Speaker 1: because that is a heck of it's hard to come

491
00:22:21,760 --> 00:22:24,399
Speaker 1: by exactly, But that's something to prioritize. When you have

492
00:22:24,680 --> 00:22:27,359
Speaker 1: your picking litter job wise, and you've got maybe seven

493
00:22:27,440 --> 00:22:29,800
Speaker 1: or eight employers who are interested in you, you can

494
00:22:29,840 --> 00:22:32,240
Speaker 1: be like, great, what's the salary, but also like, yeah,

495
00:22:32,240 --> 00:22:33,760
Speaker 1: what's your what's your four one game match? And they're

496
00:22:33,760 --> 00:22:36,160
Speaker 1: like that's interesting. A lot of people don't ask about that,

497
00:22:36,280 --> 00:22:38,400
Speaker 1: but but Luis is going to because that's the kind

498
00:22:38,400 --> 00:22:41,159
Speaker 1: of perkui you want to know on the front end, right,

499
00:22:41,160 --> 00:22:43,080
Speaker 1: You wanna know how good it is because that makes

500
00:22:43,080 --> 00:22:45,280
Speaker 1: a big difference in in your in the bottom line,

501
00:22:45,280 --> 00:22:47,880
Speaker 1: in your compensation package, and so yeah, hopefully you're also

502
00:22:47,920 --> 00:22:50,080
Speaker 1: making more money too. You've got little to no debt,

503
00:22:50,280 --> 00:22:53,399
Speaker 1: which allows you to invest like Gangbusters in the near future,

504
00:22:53,400 --> 00:22:55,439
Speaker 1: not just in your rathe right, but also in that

505
00:22:55,480 --> 00:22:58,280
Speaker 1: work sponsored for one k where you're getting after it

506
00:22:58,320 --> 00:23:00,600
Speaker 1: in a big way and at the same time you're like, boom,

507
00:23:00,680 --> 00:23:03,040
Speaker 1: no debt. I get to go on more vacations also,

508
00:23:03,480 --> 00:23:05,920
Speaker 1: which would be lovely. Heck. Yeah, So Luis, best of

509
00:23:06,000 --> 00:23:08,040
Speaker 1: luck to you. Julus here from that couple who is

510
00:23:08,080 --> 00:23:11,920
Speaker 1: looking now to sock away some money for their wedding. Hey,

511
00:23:12,040 --> 00:23:15,680
Speaker 1: Matt and Joel, this is Josh from Toronto, Canada. Recently

512
00:23:15,880 --> 00:23:19,280
Speaker 1: came across your Guys podcasts and have since been loving

513
00:23:19,280 --> 00:23:22,080
Speaker 1: the content you've been putting out. I've learned so much.

514
00:23:22,440 --> 00:23:26,199
Speaker 1: My question is about a wedding fund. Recently, me and

515
00:23:26,240 --> 00:23:29,119
Speaker 1: my fiancee got engaged and have been looking at wedding

516
00:23:29,119 --> 00:23:32,840
Speaker 1: funds we're wondering where the best place would be for one,

517
00:23:33,160 --> 00:23:35,720
Speaker 1: especially as we want our money to grow over the

518
00:23:35,800 --> 00:23:39,720
Speaker 1: period of time, which should be about two years. UM.

519
00:23:39,800 --> 00:23:42,399
Speaker 1: I'd love to hear your guys advice and keep with

520
00:23:42,400 --> 00:23:44,920
Speaker 1: the great work. Cheers all right, Josh, thanks for the

521
00:23:44,960 --> 00:23:48,240
Speaker 1: kind words. Man, Glad you're enjoying the podcast, and dude,

522
00:23:48,240 --> 00:23:51,119
Speaker 1: congrats on getting engaged. Josh is kind of part of

523
00:23:51,160 --> 00:23:53,040
Speaker 1: this like huge throng that's gonna be getting married over

524
00:23:53,040 --> 00:23:55,200
Speaker 1: the next couple of years, because when when you look

525
00:23:55,200 --> 00:23:58,399
Speaker 1: at the stats, folks, so many folks postponed their wedding

526
00:23:58,440 --> 00:24:00,640
Speaker 1: because of COVID and they're they're fine getting the chance

527
00:24:00,680 --> 00:24:02,720
Speaker 1: to get hitch now. And you know, I think the

528
00:24:02,720 --> 00:24:04,960
Speaker 1: the estimates show that like two point five million weddings

529
00:24:04,960 --> 00:24:07,359
Speaker 1: are gonna happen this year alone, right, which is like

530
00:24:07,480 --> 00:24:10,320
Speaker 1: way more than what happened in a normal year. It was.

531
00:24:10,400 --> 00:24:12,680
Speaker 1: I don't know if we've ever cracked two million weddings before.

532
00:24:12,760 --> 00:24:15,560
Speaker 1: So definitely a lot of people getting married, and so

533
00:24:16,160 --> 00:24:18,280
Speaker 1: people just like making up for lost time in all

534
00:24:18,320 --> 00:24:20,840
Speaker 1: areas of our lives, but especially people getting getting married,

535
00:24:20,840 --> 00:24:25,359
Speaker 1: forming that union. So it's getting that married, filing jointly status.

536
00:24:25,400 --> 00:24:28,040
Speaker 1: That's what I'm talking about. It's really the most romantic

537
00:24:28,080 --> 00:24:30,840
Speaker 1: reason to do it is for tax filing status purposes,

538
00:24:31,000 --> 00:24:34,359
Speaker 1: like hey, baby, I love you, and why don't jointly

539
00:24:34,359 --> 00:24:36,760
Speaker 1: save on our taxes and cohabitate? Hey, you do have

540
00:24:36,800 --> 00:24:39,520
Speaker 1: to look at all aspects of what getting married will

541
00:24:39,560 --> 00:24:44,000
Speaker 1: do uh to your life and tax your tax filing status.

542
00:24:44,119 --> 00:24:47,840
Speaker 1: Definitely something worth considering. It's not insignificant, said Josh. All Right,

543
00:24:47,840 --> 00:24:50,200
Speaker 1: you're asking where is the best place for a wedding fund?

544
00:24:50,800 --> 00:24:53,560
Speaker 1: Honestly stashing it in the savings again, like this sounds

545
00:24:53,760 --> 00:24:56,880
Speaker 1: so incredibly boring, but we feel that it is the

546
00:24:56,920 --> 00:24:58,800
Speaker 1: best thing to do. If you were in the US,

547
00:24:58,840 --> 00:25:01,920
Speaker 1: we would recommend buying some bonds in order to try

548
00:25:01,920 --> 00:25:04,960
Speaker 1: and keep up with this crazy runaway inflation that we've seen,

549
00:25:05,640 --> 00:25:08,480
Speaker 1: but specifically with a two year timeline, you're just taking

550
00:25:08,520 --> 00:25:11,760
Speaker 1: on too much risk by putting those dollars into the market.

551
00:25:12,320 --> 00:25:15,000
Speaker 1: You could be looking at potentially having less money on

552
00:25:15,119 --> 00:25:17,520
Speaker 1: hand than when you first started out, meaning that you

553
00:25:17,560 --> 00:25:20,879
Speaker 1: would have to cut back on your expenses. That sounds honestly,

554
00:25:20,880 --> 00:25:22,560
Speaker 1: that sound stressful to me, Like you know you're gonna

555
00:25:22,560 --> 00:25:25,480
Speaker 1: get married, This isn't something that you're speculating where you're like, oh,

556
00:25:25,520 --> 00:25:27,400
Speaker 1: you know, there's a chance we're gonna get married, so

557
00:25:27,520 --> 00:25:30,040
Speaker 1: maybe we will also change it by growing our money.

558
00:25:30,160 --> 00:25:31,679
Speaker 1: Maybe we'll see a draw down a little bit. But

559
00:25:31,680 --> 00:25:34,000
Speaker 1: it's not a big deal. We're not it's not guaranteed

560
00:25:34,000 --> 00:25:36,159
Speaker 1: to happen. No weddings, you put them on the calendar,

561
00:25:36,160 --> 00:25:38,879
Speaker 1: folks start planning their summers around them. Whenever it is

562
00:25:38,880 --> 00:25:40,359
Speaker 1: that you're looking to get married, and so that we

563
00:25:40,359 --> 00:25:43,159
Speaker 1: would not recommend that you put that money at risk. Um,

564
00:25:43,200 --> 00:25:45,840
Speaker 1: it's just too much. And attempting them to grow that money,

565
00:25:46,000 --> 00:25:47,800
Speaker 1: it's just not a wise move. Yeah, I can't even

566
00:25:47,840 --> 00:25:51,040
Speaker 1: imagine just kind of emotionally seeing a bad day in

567
00:25:51,040 --> 00:25:53,639
Speaker 1: the market and thinking, like, I guess that means cantering

568
00:25:53,640 --> 00:25:56,880
Speaker 1: costs are going down. Family, they just can't make you. Sorry.

569
00:25:56,880 --> 00:25:59,200
Speaker 1: We're gonna have to cut them from the sorry Grandma,

570
00:25:59,280 --> 00:26:01,520
Speaker 1: from the love you, but you're not no longer invoted

571
00:26:01,560 --> 00:26:03,200
Speaker 1: to our wedding because we can't afford it. And those

572
00:26:03,240 --> 00:26:05,320
Speaker 1: are the kind of things that you might actually we

573
00:26:05,400 --> 00:26:06,879
Speaker 1: joke about it, but you might actually have to make.

574
00:26:07,160 --> 00:26:10,080
Speaker 1: You have to make some hard cost cutting choices. If

575
00:26:10,119 --> 00:26:13,600
Speaker 1: the amount of money that you're saving is actually you're decreasing,

576
00:26:13,680 --> 00:26:16,360
Speaker 1: which overall in the long in the long haul, right,

577
00:26:16,680 --> 00:26:18,639
Speaker 1: that money invested in the market is going to go

578
00:26:18,720 --> 00:26:20,960
Speaker 1: up in the short term though, over the course of

579
00:26:21,080 --> 00:26:23,480
Speaker 1: eighteen months, twenty four months, like there's a good chance

580
00:26:23,600 --> 00:26:26,159
Speaker 1: you might have less than you started out with. And

581
00:26:26,200 --> 00:26:30,199
Speaker 1: that sounds just demoralizing. Yeah, big picture, zoom out. It

582
00:26:30,320 --> 00:26:32,399
Speaker 1: is stressful enough to play a wedding. You don't want

583
00:26:32,440 --> 00:26:34,960
Speaker 1: to add that additional stress of potentially seeing your money

584
00:26:35,040 --> 00:26:36,639
Speaker 1: draw down. Yeah, it's like, well, I should I go

585
00:26:36,760 --> 00:26:40,199
Speaker 1: stick it on black on a roulette wheel. Probably not

586
00:26:40,240 --> 00:26:42,359
Speaker 1: that either, right, because that would be stressful. You're like,

587
00:26:42,400 --> 00:26:43,960
Speaker 1: you either double it and you have an amazing wedding

588
00:26:44,320 --> 00:26:46,480
Speaker 1: or you lose it all and you know, you get

589
00:26:46,480 --> 00:26:48,520
Speaker 1: married in Vegas at one of those chapels, I guess.

590
00:26:48,720 --> 00:26:51,520
Speaker 1: But let's talk about affordable weddings for a second map

591
00:26:51,600 --> 00:26:55,119
Speaker 1: because um, yeah, since we know same music acounts are

592
00:26:55,160 --> 00:26:56,800
Speaker 1: now the best place to stick some of those dollars,

593
00:26:57,040 --> 00:26:59,080
Speaker 1: let's talk about maybe ways to save money on the

594
00:26:59,080 --> 00:27:01,600
Speaker 1: cost of a wedding. And and the average constable wedding

595
00:27:01,800 --> 00:27:04,720
Speaker 1: is just under thirty dollars that's according to the not

596
00:27:05,040 --> 00:27:07,719
Speaker 1: which is a wedding website. And you know, with demand

597
00:27:07,800 --> 00:27:11,320
Speaker 1: picking up in a real way and inflation already being

598
00:27:11,320 --> 00:27:13,000
Speaker 1: a thing, I feel like we might start seeing the

599
00:27:13,040 --> 00:27:16,439
Speaker 1: cost for venues and services ticking up even more. And

600
00:27:16,480 --> 00:27:18,960
Speaker 1: so it's important to do whatever you can, Josh, to

601
00:27:19,080 --> 00:27:22,320
Speaker 1: save money for for this wedding. And our advice is

602
00:27:22,359 --> 00:27:24,719
Speaker 1: to pick one or two things that you won't scrimp

603
00:27:24,720 --> 00:27:27,680
Speaker 1: on that are like the centerpieces of your wedding, whether

604
00:27:27,720 --> 00:27:31,199
Speaker 1: it's a venue, the photographer of the food, not the

605
00:27:31,240 --> 00:27:35,359
Speaker 1: actual center pieces, just the most important things to you,

606
00:27:35,480 --> 00:27:37,399
Speaker 1: the key factors. Yes, and there's some things where you're

607
00:27:37,400 --> 00:27:39,800
Speaker 1: gonna be like, no, we're gonna do burgers, but that photographer,

608
00:27:39,880 --> 00:27:42,720
Speaker 1: oh man, I totally want them because you know they

609
00:27:42,720 --> 00:27:44,679
Speaker 1: take the most artistic shots or whatever it is. Or

610
00:27:44,720 --> 00:27:47,560
Speaker 1: maybe it's like I don't care about the pictures. What

611
00:27:47,640 --> 00:27:50,199
Speaker 1: I want is like rack a Lamb or I don't know,

612
00:27:50,440 --> 00:27:53,040
Speaker 1: just coming up with brandis Lambs good stuff. Yeah, I

613
00:27:53,080 --> 00:27:56,240
Speaker 1: also like burgers. But you have to kind of make

614
00:27:56,280 --> 00:27:58,480
Speaker 1: those choices just like you do in like your regular

615
00:27:58,520 --> 00:28:00,520
Speaker 1: monthly budget. You have to do do the same for for

616
00:28:00,560 --> 00:28:02,359
Speaker 1: this wedding and cut back on things that don't matter

617
00:28:02,440 --> 00:28:04,320
Speaker 1: to you, right, so you can spend more on the

618
00:28:04,320 --> 00:28:06,280
Speaker 1: things that do. And then really, man, it's just like

619
00:28:06,320 --> 00:28:08,920
Speaker 1: our our craft beer roule, Like you can sports here

620
00:28:08,960 --> 00:28:11,000
Speaker 1: and there on the things you love, but you can't

621
00:28:11,200 --> 00:28:14,240
Speaker 1: sports on everything or your bro that's right. Well a

622
00:28:14,280 --> 00:28:17,000
Speaker 1: few otherwise to save more, Josh that we'd recommend consider

623
00:28:17,040 --> 00:28:19,080
Speaker 1: getting married on a day of the week that isn't

624
00:28:19,119 --> 00:28:22,720
Speaker 1: specifically a Saturday, Friday, nights or Sunday afternoon weddings can

625
00:28:22,880 --> 00:28:26,520
Speaker 1: work really well atted benefit. You can also potentially invite

626
00:28:26,560 --> 00:28:29,280
Speaker 1: fewer guests if make it to your Sunday afternoon wedding. Oh,

627
00:28:29,320 --> 00:28:32,600
Speaker 1: I'm so sorry to make it to work exactly. Yeah,

628
00:28:32,720 --> 00:28:34,359
Speaker 1: like we we really don't want to kill the fund

629
00:28:34,440 --> 00:28:37,080
Speaker 1: of your wedding day. Honestly, our wedding was a party

630
00:28:37,160 --> 00:28:39,680
Speaker 1: that I will never forget. I'm very glad that we

631
00:28:39,680 --> 00:28:42,120
Speaker 1: didn't come back too much, but we were like we

632
00:28:42,120 --> 00:28:44,600
Speaker 1: were still on a budget. And so truly it does

633
00:28:44,680 --> 00:28:47,120
Speaker 1: come down to you thinking through the aspects and the

634
00:28:47,160 --> 00:28:48,880
Speaker 1: portions of your day that are going to be most

635
00:28:48,920 --> 00:28:51,920
Speaker 1: important to you. And with this increase in weddings this year,

636
00:28:52,280 --> 00:28:55,440
Speaker 1: I mean basically wedding vendors and different venues. They're going

637
00:28:55,480 --> 00:28:57,760
Speaker 1: to see their you know, basically their counters. Like it

638
00:28:57,760 --> 00:29:00,320
Speaker 1: looks more busy, right, Like that's the increase that we're

639
00:29:00,320 --> 00:29:05,600
Speaker 1: seeing this year compared to like the last prepan wedding year.

640
00:29:06,200 --> 00:29:08,600
Speaker 1: And as you start to reach out to vendors, I

641
00:29:08,640 --> 00:29:11,080
Speaker 1: think honestly a lot of them might be somewhat relieved

642
00:29:11,240 --> 00:29:13,320
Speaker 1: to hear that you're looking at, you know, a couple

643
00:29:13,320 --> 00:29:16,000
Speaker 1: of years into the future because they don't have availability

644
00:29:16,080 --> 00:29:19,120
Speaker 1: right now. And vendors hate seeing leads come in that

645
00:29:19,160 --> 00:29:21,520
Speaker 1: they know that they have to say no to uh.

646
00:29:21,560 --> 00:29:23,600
Speaker 1: And so the advantage here is that first of all,

647
00:29:23,800 --> 00:29:25,200
Speaker 1: you've got the pick of the litter when it comes

648
00:29:25,240 --> 00:29:28,520
Speaker 1: to securing the vendors and the locations or whatever that

649
00:29:28,680 --> 00:29:30,920
Speaker 1: you want the most. But then on top of that,

650
00:29:30,960 --> 00:29:32,920
Speaker 1: I think you have the potential to lock in rates

651
00:29:33,280 --> 00:29:35,680
Speaker 1: uh pre inflation, right. And so a lot of these

652
00:29:35,920 --> 00:29:37,640
Speaker 1: like they're just trying to keep their their heads on

653
00:29:37,720 --> 00:29:39,280
Speaker 1: straight in order to do their job. They'll give you

654
00:29:41,280 --> 00:29:44,400
Speaker 1: wedding exactly. Yeah. And so there's a lot of vendors though,

655
00:29:44,400 --> 00:29:46,360
Speaker 1: who may not book that far in advance, but stay

656
00:29:46,360 --> 00:29:48,239
Speaker 1: in touch because like I know, for me, back when

657
00:29:48,240 --> 00:29:50,680
Speaker 1: I was shooting weddings, I wouldn't book more than eighteen

658
00:29:50,680 --> 00:29:53,200
Speaker 1: months in advance. First of all, I didn't like having

659
00:29:53,240 --> 00:29:56,440
Speaker 1: my years mapped out for me like that, But I

660
00:29:56,440 --> 00:29:57,920
Speaker 1: also knew that there was a good chance I was

661
00:29:57,920 --> 00:30:00,280
Speaker 1: going to be able to raise my rates dur ring

662
00:30:00,400 --> 00:30:02,960
Speaker 1: that period. Uh. And so that's something to keep an

663
00:30:03,000 --> 00:30:05,720
Speaker 1: eye on. Make sure that you are aware of what

664
00:30:05,760 --> 00:30:08,719
Speaker 1: the consequences would be if you were to change plans,

665
00:30:08,720 --> 00:30:10,280
Speaker 1: maybe if you were to change dates. You want to

666
00:30:10,400 --> 00:30:13,200
Speaker 1: know that you can transfer that deposit. But I see

667
00:30:13,200 --> 00:30:16,200
Speaker 1: this honestly as a huge advantage, your ability to plan

668
00:30:16,880 --> 00:30:21,080
Speaker 1: way off into the future and secure that two price. Yeah, man,

669
00:30:21,120 --> 00:30:24,080
Speaker 1: I totally agree. And I just want to say that

670
00:30:24,760 --> 00:30:27,280
Speaker 1: spending money on a wedding is actually should be kind

671
00:30:27,320 --> 00:30:29,760
Speaker 1: of fun, right right. You should certainly stick to your budget,

672
00:30:30,040 --> 00:30:34,160
Speaker 1: but don't skimp totally and have an awesome wedding that

673
00:30:34,240 --> 00:30:36,120
Speaker 1: highlights of things you care about the most. Like I

674
00:30:36,160 --> 00:30:38,000
Speaker 1: look back on my wedding with fondness, not just because

675
00:30:38,040 --> 00:30:40,160
Speaker 1: I got married to my wife, who I love very much,

676
00:30:40,240 --> 00:30:42,280
Speaker 1: but because all our friends with there and it was

677
00:30:42,320 --> 00:30:43,920
Speaker 1: a party and it didn't have to cost an arm

678
00:30:43,920 --> 00:30:45,320
Speaker 1: on the leg for it to be a great party,

679
00:30:45,320 --> 00:30:47,920
Speaker 1: like you could still have like really cheap beer, like

680
00:30:48,120 --> 00:30:50,440
Speaker 1: crummy wine like which we did. We had cheap beer

681
00:30:50,480 --> 00:30:52,560
Speaker 1: and crumby wine and that, you know, it hurt my

682
00:30:52,560 --> 00:30:54,120
Speaker 1: heart a little bit, but I had to skimp on

683
00:30:54,120 --> 00:30:56,080
Speaker 1: those things. Like I swear you were that into beer

684
00:30:56,120 --> 00:30:58,760
Speaker 1: at that point. I love, I did like beer a lot. Yeah,

685
00:30:58,800 --> 00:31:03,360
Speaker 1: but I'm pretty sure we had bud Wiser. Yes, and

686
00:31:03,360 --> 00:31:05,080
Speaker 1: you know, we stepped we classed it up. We had

687
00:31:05,320 --> 00:31:08,320
Speaker 1: we had blue Moon because we're going up. We're going

688
00:31:08,320 --> 00:31:11,479
Speaker 1: to European with it, right. Yeah, you know, slightly class here,

689
00:31:11,720 --> 00:31:14,520
Speaker 1: but it's one of those things where earlier where like

690
00:31:15,160 --> 00:31:17,320
Speaker 1: it was worth the trade off because we wanted more

691
00:31:17,360 --> 00:31:19,760
Speaker 1: of our friends to be at the party and it

692
00:31:19,880 --> 00:31:22,520
Speaker 1: was a lot of fun. Um And so yeah, make

693
00:31:22,560 --> 00:31:24,880
Speaker 1: sure that you prioritize having fun with the people you

694
00:31:24,880 --> 00:31:27,000
Speaker 1: love on that day that you're getting married to the

695
00:31:27,040 --> 00:31:30,000
Speaker 1: person you love most of all. So, uh, Josh, best

696
00:31:30,000 --> 00:31:32,360
Speaker 1: of luck to you in the wedding plans and yeah,

697
00:31:32,360 --> 00:31:34,360
Speaker 1: I can't wait for that invitation in the mail. Um,

698
00:31:34,400 --> 00:31:36,280
Speaker 1: you know, in the next year or so. Um, Matt,

699
00:31:36,320 --> 00:31:38,440
Speaker 1: we got a couple more questions to get to including

700
00:31:38,800 --> 00:31:42,480
Speaker 1: one about credit scores and helping a friend with hers.

701
00:31:42,680 --> 00:31:54,440
Speaker 1: We'll get to that right after this break. All right,

702
00:31:54,480 --> 00:31:56,240
Speaker 1: we are back for the break, and we've got a

703
00:31:56,240 --> 00:31:58,400
Speaker 1: couple more questions that we have to get to before

704
00:31:58,440 --> 00:32:00,760
Speaker 1: the end of this episode. This one has to do

705
00:32:00,840 --> 00:32:04,600
Speaker 1: with investing money for your daughter. Him, Matt and Joel.

706
00:32:04,720 --> 00:32:07,560
Speaker 1: My name is Corey and I am from Pittsburgh, Pennsylvania.

707
00:32:07,840 --> 00:32:10,760
Speaker 1: My wife and I recently welcomed our daughter to the world,

708
00:32:11,280 --> 00:32:14,520
Speaker 1: and we were wondering what the best investments would be

709
00:32:14,560 --> 00:32:18,479
Speaker 1: to get her financially started. Over the first five months,

710
00:32:18,480 --> 00:32:21,520
Speaker 1: she's received money from family and friends, UM, and we

711
00:32:21,560 --> 00:32:23,960
Speaker 1: want to make sure that we're doing the best with

712
00:32:24,040 --> 00:32:26,160
Speaker 1: that money that we can so we can set her

713
00:32:26,240 --> 00:32:28,840
Speaker 1: up for her future whenever she needs it or when

714
00:32:28,880 --> 00:32:32,000
Speaker 1: she turns eighteen and we turn over any accounts to her.

715
00:32:32,440 --> 00:32:34,760
Speaker 1: We were going to open a five twenty nine account

716
00:32:34,760 --> 00:32:37,880
Speaker 1: for her, UM, and that'll be helpful obviously if she

717
00:32:37,960 --> 00:32:40,160
Speaker 1: goes to school, but if for some reason she doesn't

718
00:32:40,160 --> 00:32:44,000
Speaker 1: go to school or doesn't want to, we want to

719
00:32:44,520 --> 00:32:47,880
Speaker 1: diversify where we're putting the money for her, so it's

720
00:32:47,920 --> 00:32:51,240
Speaker 1: just not all in one account. UM. We do plan

721
00:32:51,360 --> 00:32:54,160
Speaker 1: on buying a few savings bonds, but we were just

722
00:32:54,240 --> 00:32:58,520
Speaker 1: curious what other accounts that we can invest in for her,

723
00:32:58,760 --> 00:33:02,240
Speaker 1: put money in that would help her start her future.

724
00:33:02,520 --> 00:33:05,360
Speaker 1: Thanks a lot, love the show, all right, Matt, This

725
00:33:05,440 --> 00:33:08,560
Speaker 1: is a celebratory how the Money episode, I would say,

726
00:33:08,560 --> 00:33:10,960
Speaker 1: where listeners are going through all sorts of different life events.

727
00:33:10,960 --> 00:33:13,160
Speaker 1: So big congrats to Corey. A lot of good news

728
00:33:13,240 --> 00:33:15,000
Speaker 1: on this new baby girl, and lots of good news.

729
00:33:15,040 --> 00:33:17,200
Speaker 1: We we celebrate with you, Corey. We're excited for for

730
00:33:17,200 --> 00:33:20,360
Speaker 1: you and your fam and it is nice when you're

731
00:33:20,360 --> 00:33:23,760
Speaker 1: going through a big event like this, I'm sure. Josh

732
00:33:24,000 --> 00:33:26,440
Speaker 1: last listener, he hopes he has generous friends and family

733
00:33:26,480 --> 00:33:28,080
Speaker 1: who want to like pay for some of his wedding,

734
00:33:28,160 --> 00:33:30,760
Speaker 1: And it sounds like Corey has generous friends and family

735
00:33:30,800 --> 00:33:33,280
Speaker 1: who are you know, wanting to set his daughter up

736
00:33:33,280 --> 00:33:36,800
Speaker 1: for future financial success. And you know, money for her

737
00:33:36,800 --> 00:33:38,440
Speaker 1: future is just one of the best things that someone

738
00:33:38,480 --> 00:33:41,120
Speaker 1: can give you at that stage in her life. And

739
00:33:41,160 --> 00:33:44,360
Speaker 1: so but now the pressure is on for Corey because

740
00:33:44,600 --> 00:33:47,320
Speaker 1: they need to invest that money wisely for her future.

741
00:33:47,800 --> 00:33:50,520
Speaker 1: And Corey, this this first suggestion I have is going

742
00:33:50,560 --> 00:33:53,040
Speaker 1: to sound a little bit weird, but you know, that

743
00:33:53,600 --> 00:33:54,960
Speaker 1: if you've listened for any length the time, you know

744
00:33:54,960 --> 00:33:57,520
Speaker 1: I'm weird. And so one of the best places to

745
00:33:57,560 --> 00:34:00,200
Speaker 1: put money for your daughter is actually in your own

746
00:34:00,280 --> 00:34:03,280
Speaker 1: roth ira, if you've got one. And so I promise

747
00:34:03,360 --> 00:34:05,200
Speaker 1: I'm not trying to get you to steal from your daughter.

748
00:34:06,080 --> 00:34:07,960
Speaker 1: That people are gonna give give you money intentive for

749
00:34:07,960 --> 00:34:10,680
Speaker 1: your daughter and you're like, joints, that's mine. In fifteen years,

750
00:34:10,719 --> 00:34:12,320
Speaker 1: she's gonna listen to this and be like that sounds

751
00:34:12,360 --> 00:34:17,040
Speaker 1: like Dad, what the heck, what's this problem? And so yeah,

752
00:34:17,160 --> 00:34:19,960
Speaker 1: having having that money in your wrath though, and then

753
00:34:20,080 --> 00:34:22,919
Speaker 1: keeping track of this money that's specifically intended for her,

754
00:34:23,360 --> 00:34:25,719
Speaker 1: like let's say in a spreadsheet for future reference. You know,

755
00:34:25,760 --> 00:34:28,480
Speaker 1: having this money in your retirement account and not an

756
00:34:28,520 --> 00:34:30,600
Speaker 1: account with her name on it is going to help

757
00:34:30,640 --> 00:34:33,160
Speaker 1: her when it comes time to get financial aid for

758
00:34:33,239 --> 00:34:35,840
Speaker 1: college if she chooses that route. In the rath I

759
00:34:35,840 --> 00:34:39,040
Speaker 1: area is just one of the best investment vehicles bar none.

760
00:34:39,400 --> 00:34:41,239
Speaker 1: And so that is why I make this recommendation. And

761
00:34:41,280 --> 00:34:44,040
Speaker 1: I realized that it's a little awkward, but I think

762
00:34:44,120 --> 00:34:46,520
Speaker 1: for for a lot of people who care about their

763
00:34:46,560 --> 00:34:49,560
Speaker 1: kids and want the money to grow best for their kids,

764
00:34:49,800 --> 00:34:51,640
Speaker 1: and let's say you're not maxing out your wrath, it

765
00:34:51,640 --> 00:34:53,600
Speaker 1: could be a great option. That's right. There's a way

766
00:34:53,640 --> 00:34:55,680
Speaker 1: that you can do that use this vehicle while still

767
00:34:55,719 --> 00:34:58,279
Speaker 1: helping your kiddo. And it also gives you some flexibility

768
00:34:58,320 --> 00:35:01,520
Speaker 1: over when and how use those funds because you can

769
00:35:01,640 --> 00:35:05,560
Speaker 1: pull out those specific contributions at any time tax and

770
00:35:05,719 --> 00:35:08,239
Speaker 1: penalty free. And Corey, one other option is that you

771
00:35:08,239 --> 00:35:11,000
Speaker 1: can find a way for your kiddo to earn some money.

772
00:35:11,360 --> 00:35:13,640
Speaker 1: That's uh, it might be a little easier said than

773
00:35:13,680 --> 00:35:15,640
Speaker 1: done for her to have an actual job before she

774
00:35:15,680 --> 00:35:18,160
Speaker 1: turns fourteen, but if you are able to do this,

775
00:35:18,239 --> 00:35:20,680
Speaker 1: you can help her to open up her own rath.

776
00:35:20,719 --> 00:35:24,840
Speaker 1: Are not daddy's roth. Ira are always flouting child labor laws. Man, Hey,

777
00:35:24,920 --> 00:35:27,440
Speaker 1: if it allows you to get that tax advantage account

778
00:35:27,480 --> 00:35:29,000
Speaker 1: up and running, that's what you want to do. We

779
00:35:29,000 --> 00:35:31,840
Speaker 1: we actually we talked about this with tax expert Shannon

780
00:35:31,960 --> 00:35:35,120
Speaker 1: Weinstein on the show recently. But it's something that we're

781
00:35:35,120 --> 00:35:37,239
Speaker 1: hoping to do with our oldest girls soon. Joel, Like

782
00:35:37,239 --> 00:35:39,200
Speaker 1: we talked about, you know, us both doing this with

783
00:35:39,280 --> 00:35:42,000
Speaker 1: your dollar Selma with my daughter Eavy, but getting them

784
00:35:42,040 --> 00:35:44,200
Speaker 1: started with a wrath early on. It's a game changer.

785
00:35:44,760 --> 00:35:46,760
Speaker 1: But like I said, they have to actually have earned

786
00:35:46,960 --> 00:35:50,000
Speaker 1: income for that to become an option. And you know, Corey,

787
00:35:50,000 --> 00:35:52,760
Speaker 1: he didn't say how much money his Uh, those generals

788
00:35:52,760 --> 00:35:55,839
Speaker 1: folks have given them, So it's hard to know how

789
00:35:55,880 --> 00:35:57,880
Speaker 1: many different suggestions to kind of throw out there. You

790
00:35:57,960 --> 00:36:01,839
Speaker 1: might have heard about UGMA or counts. Uh. Those can

791
00:36:02,000 --> 00:36:04,680
Speaker 1: can make sense in the right circumstance, but the problem

792
00:36:04,680 --> 00:36:07,480
Speaker 1: with those is that they they actually have an effect

793
00:36:07,480 --> 00:36:10,600
Speaker 1: on financial aid for school in the future. So yeah,

794
00:36:10,680 --> 00:36:13,080
Speaker 1: kind of depending on the situation, those may or may

795
00:36:13,080 --> 00:36:15,120
Speaker 1: not be a good choice for you. That's right, because

796
00:36:15,160 --> 00:36:18,520
Speaker 1: so many of these decisions do revolve around financial aid

797
00:36:18,680 --> 00:36:21,600
Speaker 1: for higher education. And they can throw a rention things

798
00:36:21,680 --> 00:36:23,719
Speaker 1: if there's too much money in your child the name

799
00:36:24,000 --> 00:36:26,440
Speaker 1: and so Matt, that brings up five plans and and

800
00:36:26,480 --> 00:36:29,840
Speaker 1: Corey he mentioned that as an option in his question. Fortunately,

801
00:36:29,880 --> 00:36:31,719
Speaker 1: you know he lives in the state of Pennsylvania, and

802
00:36:31,760 --> 00:36:35,640
Speaker 1: Pennsylvania has an excellent five plan And and Corey will

803
00:36:35,640 --> 00:36:37,880
Speaker 1: actually get a tax break for contributing to one of

804
00:36:37,920 --> 00:36:40,759
Speaker 1: these plans for his daughter. Corey, your specific plan in

805
00:36:40,800 --> 00:36:44,759
Speaker 1: the Pennsylvania plan uses Vanguard Funds and has incredibly low fees,

806
00:36:44,800 --> 00:36:47,760
Speaker 1: and so sticking at least some of that money there

807
00:36:48,160 --> 00:36:50,360
Speaker 1: is gonna be a great option for you. Um and

808
00:36:50,360 --> 00:36:52,800
Speaker 1: and if you don't end up using that money for schooling,

809
00:36:53,040 --> 00:36:55,640
Speaker 1: whether it's private school, trade school, or a traditional four

810
00:36:55,719 --> 00:36:59,239
Speaker 1: year degree, dollars can go towards any of those. Well,

811
00:36:59,320 --> 00:37:02,200
Speaker 1: you can transfer that five nine plan to another beneficiary

812
00:37:02,480 --> 00:37:05,160
Speaker 1: in order to avoid tax and penalties. But I like

813
00:37:05,200 --> 00:37:07,960
Speaker 1: your desire to diversify and to not stick all of

814
00:37:07,960 --> 00:37:09,960
Speaker 1: that money in one vehicle. You know, we think five

815
00:37:10,000 --> 00:37:12,720
Speaker 1: twenty nine plans can be a solid account for people,

816
00:37:12,760 --> 00:37:15,239
Speaker 1: but sadly they often opt to put money in the

817
00:37:15,239 --> 00:37:18,279
Speaker 1: five nine plan before they've taken care of putting you know,

818
00:37:18,360 --> 00:37:20,480
Speaker 1: a chunk of dollars into some of those more important

819
00:37:20,480 --> 00:37:23,680
Speaker 1: retirement plans like the Wrath or even you know they're

820
00:37:23,719 --> 00:37:26,200
Speaker 1: four oh one k at work totally. Yeah, honestly, depending

821
00:37:26,200 --> 00:37:28,760
Speaker 1: on the amount, consider sticking some of this money, Corey

822
00:37:28,840 --> 00:37:31,720
Speaker 1: and just into a plane savings account. This is twice

823
00:37:31,760 --> 00:37:34,560
Speaker 1: now that we we've recommended savings accounts. But if it's

824
00:37:34,600 --> 00:37:36,920
Speaker 1: just a few thousand bucks and you are already maxing

825
00:37:36,920 --> 00:37:39,440
Speaker 1: out your own roth eyras, then you can totally use

826
00:37:39,520 --> 00:37:42,879
Speaker 1: this just for like some simple enriching activities like as

827
00:37:42,920 --> 00:37:46,120
Speaker 1: your daughter grows up, like like art classes, piano lessons,

828
00:37:46,480 --> 00:37:49,279
Speaker 1: horseback riding like these are all the kinds of activities

829
00:37:49,560 --> 00:37:52,560
Speaker 1: that are so formative for kids. Uh, And you know

830
00:37:52,600 --> 00:37:55,680
Speaker 1: you're marketing this money for special activities like those can

831
00:37:55,800 --> 00:37:57,880
Speaker 1: ensure that you know you aren't just saving for her

832
00:37:57,880 --> 00:37:59,919
Speaker 1: college expenses or you know, or even getting her start

833
00:38:00,320 --> 00:38:03,400
Speaker 1: on retirement savings early, but that you are using this

834
00:38:03,440 --> 00:38:05,759
Speaker 1: money that was intended for her in a way that's

835
00:38:05,760 --> 00:38:08,360
Speaker 1: going to create memories, It's gonna build confidence, and it

836
00:38:08,400 --> 00:38:10,680
Speaker 1: can teach her about some things that she would likely

837
00:38:10,719 --> 00:38:13,480
Speaker 1: never learn in school. And so in the same spirit,

838
00:38:13,520 --> 00:38:15,800
Speaker 1: you could maybe put some of that money in ibans,

839
00:38:15,800 --> 00:38:18,360
Speaker 1: which are still paying quite a bit because inflation is

840
00:38:18,400 --> 00:38:20,239
Speaker 1: still running hot. You've got to keep it there for

841
00:38:20,280 --> 00:38:22,560
Speaker 1: at least a year. But that can also be a

842
00:38:22,600 --> 00:38:25,600
Speaker 1: great medium term option. But especially I feel like I

843
00:38:25,680 --> 00:38:27,040
Speaker 1: kind of go back and forth when it comes to

844
00:38:27,960 --> 00:38:30,479
Speaker 1: getting my kids set up and getting a roth ira going,

845
00:38:30,560 --> 00:38:34,120
Speaker 1: because on one hand, I see the power of compound interest,

846
00:38:34,440 --> 00:38:37,320
Speaker 1: but on the other hand, I think that's totally something

847
00:38:37,480 --> 00:38:40,080
Speaker 1: that they can do after they graduate. They get that

848
00:38:40,160 --> 00:38:42,440
Speaker 1: nice paying job, they've got enough money to set aside,

849
00:38:42,640 --> 00:38:46,120
Speaker 1: start contributing towards retirement, say at the age of two

850
00:38:46,160 --> 00:38:47,879
Speaker 1: years old, Like, do you think an even like either

851
00:38:48,000 --> 00:38:50,680
Speaker 1: of our kids dual are going to be unaware that

852
00:38:50,719 --> 00:38:54,280
Speaker 1: they should be contributing to the rab ira where compounding

853
00:38:54,320 --> 00:38:56,120
Speaker 1: should be on their side of course, not like will

854
00:38:56,160 --> 00:38:59,120
Speaker 1: be beaten into their heads mercilessly. They are going to

855
00:38:59,239 --> 00:39:01,560
Speaker 1: know what's up. And so I go back and forth.

856
00:39:01,600 --> 00:39:04,480
Speaker 1: I'm kind of torn because on one hand, I know

857
00:39:04,520 --> 00:39:07,080
Speaker 1: what the numbers say, and I know that the sooner

858
00:39:07,200 --> 00:39:08,920
Speaker 1: the better. But on the other hand, I think, you

859
00:39:08,960 --> 00:39:10,799
Speaker 1: know what, like there there are going to be some

860
00:39:10,880 --> 00:39:14,080
Speaker 1: things that I want them to build accounts that I

861
00:39:14,120 --> 00:39:17,480
Speaker 1: want them to have full ownership of the contributions that

862
00:39:17,520 --> 00:39:19,839
Speaker 1: were made to that accounts. Uh. And so I don't

863
00:39:19,840 --> 00:39:22,120
Speaker 1: know when it comes to retirement specifically, I feel like

864
00:39:22,160 --> 00:39:23,759
Speaker 1: I'm at this point, I'm kind of squarely in the

865
00:39:23,760 --> 00:39:25,839
Speaker 1: camp of I'm not gonna I don't think I'm gonna

866
00:39:25,840 --> 00:39:28,200
Speaker 1: contribute to that, even though I know that the compounding

867
00:39:28,200 --> 00:39:31,000
Speaker 1: effect would be massive, it would be significant if you

868
00:39:31,000 --> 00:39:32,640
Speaker 1: were able to, you know, get a kid set up

869
00:39:33,000 --> 00:39:35,319
Speaker 1: with a roth Ira starting at age eight or nine.

870
00:39:35,760 --> 00:39:37,799
Speaker 1: I am less keen on doing that right now as

871
00:39:37,800 --> 00:39:40,120
Speaker 1: opposed to saving for college, because that's also something that

872
00:39:40,120 --> 00:39:42,480
Speaker 1: they can do. They can apply for grants, they can

873
00:39:42,520 --> 00:39:45,280
Speaker 1: apply for scholarships. But that's certainly something that I see

874
00:39:45,680 --> 00:39:47,600
Speaker 1: us having more of a hand in, for sure. For sure,

875
00:39:47,640 --> 00:39:50,319
Speaker 1: I get that I understand where you're coming from on

876
00:39:50,360 --> 00:39:52,760
Speaker 1: that front. And Corey certainly has a lot of different

877
00:39:52,800 --> 00:39:54,120
Speaker 1: choices here that he can make with the money, and

878
00:39:54,160 --> 00:39:56,879
Speaker 1: so much of it depends on how much money he's

879
00:39:56,920 --> 00:39:59,319
Speaker 1: hanging onto like has been given. But really, I think

880
00:39:59,360 --> 00:40:01,000
Speaker 1: what we all you want to say when we talk

881
00:40:01,040 --> 00:40:04,040
Speaker 1: about plans is that they can be a good account,

882
00:40:04,120 --> 00:40:05,960
Speaker 1: especially if you're pretty sure your kid is going to

883
00:40:06,040 --> 00:40:08,360
Speaker 1: go to college. But you also want to remember the

884
00:40:08,400 --> 00:40:11,000
Speaker 1: here and now, right You want to remember spending on

885
00:40:11,040 --> 00:40:13,120
Speaker 1: things that matter, like you just talked about, Matt. Something

886
00:40:13,160 --> 00:40:16,680
Speaker 1: as simple as horseback riding lessons or piano lessons like

887
00:40:16,719 --> 00:40:20,520
Speaker 1: those are formative experiences, and you don't want to just

888
00:40:20,560 --> 00:40:22,720
Speaker 1: put money in a wrath and in a five account

889
00:40:22,719 --> 00:40:25,160
Speaker 1: and be like, now we don't have money for these,

890
00:40:25,360 --> 00:40:27,440
Speaker 1: for these wonderful things that would be good for you

891
00:40:27,640 --> 00:40:29,880
Speaker 1: as you grew up and have different interests, like you

892
00:40:29,920 --> 00:40:32,080
Speaker 1: want to make sure that those dollars are ready to

893
00:40:32,120 --> 00:40:34,400
Speaker 1: flow in that direction to so Corey, you've got a

894
00:40:34,400 --> 00:40:36,120
Speaker 1: few good options. It just you know, you might want

895
00:40:36,120 --> 00:40:38,560
Speaker 1: to funnel money into a few different accounts, even for her.

896
00:40:38,800 --> 00:40:40,759
Speaker 1: But all right, let's get to one more question. This

897
00:40:40,800 --> 00:40:43,279
Speaker 1: one comes from a listener who's trying to help a

898
00:40:43,320 --> 00:40:46,960
Speaker 1: friend out with her messed up credit score. Hello, my

899
00:40:47,040 --> 00:40:50,600
Speaker 1: name is Crystal and I'm from Davis, West Virginia. My

900
00:40:50,680 --> 00:40:52,880
Speaker 1: husband and I are having a debate on how to

901
00:40:52,960 --> 00:40:56,160
Speaker 1: improve my friends credit score. My friend has a very

902
00:40:56,200 --> 00:40:58,680
Speaker 1: poor credit history. She grew up with a family that

903
00:40:58,880 --> 00:41:03,040
Speaker 1: unfortunately never taught her how to save firstbend. Also, they

904
00:41:03,080 --> 00:41:05,640
Speaker 1: would often borrow money from her with no plans of

905
00:41:05,719 --> 00:41:09,000
Speaker 1: returning it. Due to some new events in her life,

906
00:41:09,040 --> 00:41:11,640
Speaker 1: she is finally going to form some boundaries with her family,

907
00:41:12,160 --> 00:41:15,040
Speaker 1: so we are trying to figure out the fastest way

908
00:41:15,080 --> 00:41:17,880
Speaker 1: for her to improve her score. She has had credit

909
00:41:17,920 --> 00:41:20,520
Speaker 1: cards in the past, though currently has none due to

910
00:41:20,560 --> 00:41:24,560
Speaker 1: not trusting herself. So this is the debate. My husband

911
00:41:24,560 --> 00:41:26,920
Speaker 1: says that as long as you have a credit card,

912
00:41:27,440 --> 00:41:30,440
Speaker 1: even if you don't use it, having that zero balance

913
00:41:30,480 --> 00:41:33,200
Speaker 1: at the end of the month improves your score as

914
00:41:33,200 --> 00:41:35,800
Speaker 1: long as your credit card company does not close your account.

915
00:41:36,400 --> 00:41:38,680
Speaker 1: I say that you have to use it at least

916
00:41:38,680 --> 00:41:42,120
Speaker 1: in small quantities and pay it completely off each month

917
00:41:42,200 --> 00:41:45,560
Speaker 1: in order for your credit score to improve. Oh and

918
00:41:45,840 --> 00:41:48,680
Speaker 1: a side question, if I were to add her onto

919
00:41:48,719 --> 00:41:51,279
Speaker 1: my credit card, though I would not give her a

920
00:41:51,320 --> 00:41:55,759
Speaker 1: card to improve her credit score, would any inquiries to

921
00:41:55,920 --> 00:41:59,439
Speaker 1: her credit history affect my credit score? By the way,

922
00:41:59,560 --> 00:42:02,200
Speaker 1: my husband and Chris, loves the show and shares y'all's

923
00:42:02,239 --> 00:42:04,719
Speaker 1: love of beer, So we'll be sending you a beer

924
00:42:04,760 --> 00:42:09,640
Speaker 1: from our local brewery, Sumptown Ales. Shortly. Thank you. Oh,

925
00:42:09,680 --> 00:42:13,080
Speaker 1: first off, Stumptown Ales. That sounds like a delightful little brewery,

926
00:42:13,120 --> 00:42:15,040
Speaker 1: so we'll keep an eye out for that's Crystal. And

927
00:42:15,239 --> 00:42:17,719
Speaker 1: we're glad that you and your husband that you both

928
00:42:17,840 --> 00:42:19,560
Speaker 1: listened to the show. I'm glad that I don't know.

929
00:42:19,600 --> 00:42:21,680
Speaker 1: I feel like when you hear a husband and a wife,

930
00:42:21,719 --> 00:42:23,560
Speaker 1: you know, when you hear a couple who both listened

931
00:42:23,560 --> 00:42:24,719
Speaker 1: to the show, I feel like we're kind of like

932
00:42:24,760 --> 00:42:27,720
Speaker 1: sitting there with them. The couple that had money together

933
00:42:27,719 --> 00:42:30,319
Speaker 1: stays together. What I've always said, together but Crystal will

934
00:42:30,320 --> 00:42:32,680
Speaker 1: also kudos to you both for helping your friend out

935
00:42:32,680 --> 00:42:35,040
Speaker 1: in this way, Like, there are just so many folks

936
00:42:35,080 --> 00:42:38,600
Speaker 1: who haven't received the education or the confidence boosting instruction

937
00:42:38,640 --> 00:42:41,120
Speaker 1: to go alongside it. Most folks they need help wherever

938
00:42:41,160 --> 00:42:43,239
Speaker 1: they can get it, So teaching them the ropes is

939
00:42:43,239 --> 00:42:44,920
Speaker 1: one of the best things that you can do. You're

940
00:42:44,960 --> 00:42:47,840
Speaker 1: a good friend. That being said, it is possible to

941
00:42:47,880 --> 00:42:50,520
Speaker 1: do that poorly. We don't want you to be overbearing.

942
00:42:50,520 --> 00:42:52,360
Speaker 1: It doesn't sound like you are, but that's definitely something

943
00:42:52,400 --> 00:42:55,040
Speaker 1: out there for everyone else who's listening. But if your

944
00:42:55,080 --> 00:42:57,200
Speaker 1: your friend is curious and if she wants to grow,

945
00:42:57,440 --> 00:43:00,680
Speaker 1: keep helping. And also, Chris, you mentioned injuries. It sounds

946
00:43:00,719 --> 00:43:03,200
Speaker 1: like your friend is is you know, making some strides.

947
00:43:03,320 --> 00:43:05,560
Speaker 1: They're like, that's just one of those things that we all,

948
00:43:05,680 --> 00:43:07,400
Speaker 1: I think I have to learn as we get older.

949
00:43:07,719 --> 00:43:10,320
Speaker 1: You know, you might have been raised with unhealthy family boundaries,

950
00:43:10,400 --> 00:43:13,279
Speaker 1: especially in regards to money. Uh, it's not easy to

951
00:43:13,320 --> 00:43:15,600
Speaker 1: kind of draw these firmer lines, but it is crucial

952
00:43:15,880 --> 00:43:18,640
Speaker 1: if you want to have healthy relationship with money and

953
00:43:18,719 --> 00:43:20,920
Speaker 1: with your family. Something else that kind of stood out

954
00:43:20,960 --> 00:43:22,560
Speaker 1: to me too. She was talking about how her friend

955
00:43:22,840 --> 00:43:25,839
Speaker 1: like she doesn't trust herself to have credit cards. Uh.

956
00:43:25,880 --> 00:43:27,960
Speaker 1: It makes me wonder if it's not is it that

957
00:43:28,000 --> 00:43:29,920
Speaker 1: she doesn't trust herself, or is it that she doesn't

958
00:43:30,200 --> 00:43:32,359
Speaker 1: trust her family? Like I don't want to get all

959
00:43:32,360 --> 00:43:35,319
Speaker 1: like psychological and you know, play psychiatrists here, but I

960
00:43:35,320 --> 00:43:37,560
Speaker 1: feel like when you have had that kind of experience

961
00:43:37,680 --> 00:43:39,920
Speaker 1: when it comes to your money, it could keep you

962
00:43:39,960 --> 00:43:42,640
Speaker 1: from potentially doing things that in the long run would

963
00:43:42,719 --> 00:43:45,640
Speaker 1: benefit your financial situation. But there are just different things

964
00:43:45,640 --> 00:43:48,400
Speaker 1: that we do to you know, to protect ourselves. Uh,

965
00:43:48,440 --> 00:43:50,640
Speaker 1: there's almost like a fear there that's keeping her from

966
00:43:50,680 --> 00:43:53,480
Speaker 1: moving forward. Sure, and we've all got different histories with

967
00:43:53,680 --> 00:43:57,239
Speaker 1: our families and and different hang ups based on childhood

968
00:43:57,239 --> 00:43:58,960
Speaker 1: things that happened. Even if we grew up in a

969
00:43:58,960 --> 00:44:00,920
Speaker 1: healthy home, we have hang ups like we all do.

970
00:44:01,400 --> 00:44:03,200
Speaker 1: And uh, you know I've mentioned this on the show.

971
00:44:03,239 --> 00:44:05,759
Speaker 1: My wife is becoming a therapist. She's in school right now,

972
00:44:05,840 --> 00:44:08,440
Speaker 1: and so we are digging up a lot of our

973
00:44:08,520 --> 00:44:12,000
Speaker 1: own pasts together and it's it's been interesting, Like there

974
00:44:12,000 --> 00:44:13,480
Speaker 1: are a lot of patterns in my life that I

975
00:44:13,480 --> 00:44:16,799
Speaker 1: have not attributed necessarily to my parents growing up. But

976
00:44:16,840 --> 00:44:20,000
Speaker 1: I can clearly see how how I've been affected by them.

977
00:44:20,239 --> 00:44:22,319
Speaker 1: And you know, it's not to say that they're bad.

978
00:44:22,320 --> 00:44:25,040
Speaker 1: Folks are wonderful, but there are still things that you know,

979
00:44:25,120 --> 00:44:27,400
Speaker 1: I wrestle with or or patterns of behavior in my

980
00:44:27,440 --> 00:44:29,440
Speaker 1: life because of that, and and that is true for

981
00:44:29,480 --> 00:44:31,960
Speaker 1: all of us. But Crystal, Crystal really makes an excellent

982
00:44:31,960 --> 00:44:35,600
Speaker 1: point about becoming an authorized user. Let's talk about that

983
00:44:35,640 --> 00:44:38,400
Speaker 1: for a second, because that is a way to to

984
00:44:38,440 --> 00:44:42,360
Speaker 1: allow someone else, basically to piggyback on your good credit standing,

985
00:44:42,560 --> 00:44:44,680
Speaker 1: like they're hopping on your shoulders and you're you're taking

986
00:44:44,680 --> 00:44:47,120
Speaker 1: them for a ride up the credits Core train. And

987
00:44:47,239 --> 00:44:49,440
Speaker 1: you know, Crystal, it sounds like you're smart enough to

988
00:44:49,520 --> 00:44:52,279
Speaker 1: know not to hand a credit card that's tied to

989
00:44:52,400 --> 00:44:55,279
Speaker 1: this account over to your friend, because that could end

990
00:44:55,360 --> 00:44:57,880
Speaker 1: up in a messy situation. She could use that credit

991
00:44:57,920 --> 00:45:00,680
Speaker 1: card and you know you're responsible or the depths that

992
00:45:00,760 --> 00:45:03,399
Speaker 1: she racks up. But should you do this, I guess

993
00:45:03,440 --> 00:45:06,279
Speaker 1: that's that's an important question because it's a really nice

994
00:45:06,320 --> 00:45:09,240
Speaker 1: thing for you to consider doing, but there are small

995
00:45:09,239 --> 00:45:11,120
Speaker 1: ways that this could potentially go off the rails that

996
00:45:11,160 --> 00:45:13,000
Speaker 1: you need to be aware of. And so if you

997
00:45:13,040 --> 00:45:15,800
Speaker 1: start handling that credit card poorly. It's now going to

998
00:45:15,840 --> 00:45:18,160
Speaker 1: impact your friend too, so that could cause a strain

999
00:45:18,200 --> 00:45:19,920
Speaker 1: in the relationship. Let's say you go off the deep

1000
00:45:20,000 --> 00:45:22,720
Speaker 1: end and you start spending money like a mad person.

1001
00:45:23,160 --> 00:45:25,319
Speaker 1: She could be like, hey, you're actually hurting my credit

1002
00:45:25,360 --> 00:45:28,080
Speaker 1: score more than this isn't helping like I thought it

1003
00:45:28,120 --> 00:45:30,920
Speaker 1: was going to be. And so yeah, authorized users, by

1004
00:45:30,920 --> 00:45:34,360
Speaker 1: the way, they also have access to account information, So

1005
00:45:34,360 --> 00:45:37,080
Speaker 1: so your friend could theoretically call the credit card company

1006
00:45:37,239 --> 00:45:39,960
Speaker 1: and ask for statements or even log in to redeem

1007
00:45:40,000 --> 00:45:42,600
Speaker 1: the rewards that you've been accruing. So this is just

1008
00:45:42,640 --> 00:45:44,520
Speaker 1: like a judgment call that you're gonna need to make,

1009
00:45:44,600 --> 00:45:47,520
Speaker 1: and so much of this depends on the specifics of

1010
00:45:47,560 --> 00:45:50,560
Speaker 1: your friendship. But just no, it is certainly a nice gesture,

1011
00:45:50,800 --> 00:45:53,359
Speaker 1: but it's it's also possible that things could go could

1012
00:45:53,480 --> 00:45:55,920
Speaker 1: go wrong totally. It depends too on the specifics of

1013
00:45:55,960 --> 00:45:59,880
Speaker 1: your specific card, because not all cardholders treats authorized users

1014
00:45:59,920 --> 00:46:01,920
Speaker 1: the same way. Some of them allow more access, some

1015
00:46:01,960 --> 00:46:04,359
Speaker 1: of them allow less access. So if it is something

1016
00:46:04,360 --> 00:46:06,040
Speaker 1: that you want to do but the first card you

1017
00:46:06,120 --> 00:46:08,640
Speaker 1: check is like they can do almost everything that you

1018
00:46:08,680 --> 00:46:10,960
Speaker 1: can do, well, maybe look to the other credit card

1019
00:46:11,280 --> 00:46:13,440
Speaker 1: and maybe they have tighter restrictions on on what she

1020
00:46:13,480 --> 00:46:16,360
Speaker 1: could see there. But but onto the main debate that

1021
00:46:16,400 --> 00:46:18,799
Speaker 1: you're having with your husband, it actually looks like you're

1022
00:46:18,840 --> 00:46:21,640
Speaker 1: both right, So we don't necessarily have to take sides here.

1023
00:46:22,280 --> 00:46:25,239
Speaker 1: Your husband is right because her credit score, it will

1024
00:46:25,280 --> 00:46:27,760
Speaker 1: go up just by the fact that she has credit

1025
00:46:27,840 --> 00:46:30,400
Speaker 1: that's going to be available to her. She doesn't have

1026
00:46:30,480 --> 00:46:33,319
Speaker 1: to actually utilize that available credit, but as long as

1027
00:46:33,400 --> 00:46:35,839
Speaker 1: it is available to her, it's going to help out.

1028
00:46:36,120 --> 00:46:38,960
Speaker 1: But you are also right because she should use that

1029
00:46:39,040 --> 00:46:41,400
Speaker 1: card a couple of times a year, you know, or

1030
00:46:41,400 --> 00:46:44,480
Speaker 1: maybe more on a recurring basis, like say she's got

1031
00:46:44,480 --> 00:46:47,640
Speaker 1: a bill every single month that gets charged to that card. Um,

1032
00:46:47,760 --> 00:46:49,759
Speaker 1: And that is, like you mentioned you kind of hinted at,

1033
00:46:49,760 --> 00:46:52,360
Speaker 1: in order to keep that new line of credit active.

1034
00:46:52,840 --> 00:46:55,480
Speaker 1: And that's because that issuers they have been known to

1035
00:46:55,560 --> 00:47:00,600
Speaker 1: cancel inactive credit cards sometimes, which during the pandemic didn't

1036
00:47:00,600 --> 00:47:02,839
Speaker 1: we know most definitely like they were all freaking out

1037
00:47:02,840 --> 00:47:04,920
Speaker 1: and trying to figure out how to shore up their losses.

1038
00:47:05,040 --> 00:47:06,799
Speaker 1: And people that hadn't used their credit card in six

1039
00:47:06,800 --> 00:47:09,080
Speaker 1: months or something, they might have seen their account closed

1040
00:47:09,080 --> 00:47:11,880
Speaker 1: and he seeing their account, their available credit limits drop

1041
00:47:12,400 --> 00:47:15,040
Speaker 1: turn in the Lurch had an impact on their credit scores.

1042
00:47:15,400 --> 00:47:17,799
Speaker 1: But you know, actually recently we we didn't a full

1043
00:47:17,840 --> 00:47:21,719
Speaker 1: episode surrounding the different credit credit score myths that are

1044
00:47:21,760 --> 00:47:24,080
Speaker 1: out there. So this might be one worth sharing with

1045
00:47:24,120 --> 00:47:27,000
Speaker 1: your friend. This is episode four one. Uh, you could

1046
00:47:27,000 --> 00:47:29,480
Speaker 1: potentially if you are like going out for a walk

1047
00:47:29,600 --> 00:47:31,680
Speaker 1: or working out together. I don't know. In the same

1048
00:47:31,719 --> 00:47:33,520
Speaker 1: way that I saw Crystal and her husband both like

1049
00:47:33,520 --> 00:47:35,799
Speaker 1: sitting down and listening to the show, I kind of see,

1050
00:47:35,880 --> 00:47:38,520
Speaker 1: you know, Crystal and her friend maybe listening to an episode,

1051
00:47:38,760 --> 00:47:40,799
Speaker 1: uh and then kind of talking about it afterwards. It's

1052
00:47:40,800 --> 00:47:42,680
Speaker 1: just I think a healthy way for us to talk

1053
00:47:42,719 --> 00:47:45,919
Speaker 1: more about our finances, especially Crystal. I mean, let's be honest,

1054
00:47:45,960 --> 00:47:48,080
Speaker 1: like you are going to have a little more insight,

1055
00:47:48,239 --> 00:47:51,160
Speaker 1: a little more sway on her situation as she's it

1056
00:47:51,200 --> 00:47:53,640
Speaker 1: sounds like she's turning to you for help, uh, and

1057
00:47:53,840 --> 00:47:55,960
Speaker 1: and you're they're kind of dispensing advice. I see this

1058
00:47:56,040 --> 00:47:58,200
Speaker 1: almost being like like like a big sister kind of

1059
00:47:58,280 --> 00:48:00,319
Speaker 1: role that you're playing for her, which is really sweet. Yeah,

1060
00:48:00,360 --> 00:48:02,520
Speaker 1: for sure, I mean I love I think more people

1061
00:48:02,520 --> 00:48:04,160
Speaker 1: should do that for their friends, like they see, like

1062
00:48:04,200 --> 00:48:06,799
Speaker 1: my friends a total financial mess, and it's like you

1063
00:48:06,840 --> 00:48:09,359
Speaker 1: have a certain amount of knowledge, you have the path. Yeah,

1064
00:48:09,440 --> 00:48:11,279
Speaker 1: and you can participate and you don't have to be,

1065
00:48:11,320 --> 00:48:13,600
Speaker 1: like you said, Matt, overbearing, Like there's a way to

1066
00:48:13,600 --> 00:48:17,080
Speaker 1: do it appropriately and not overstep the bounds. Um. But yeah,

1067
00:48:17,080 --> 00:48:18,839
Speaker 1: you also don't want to just like if you see

1068
00:48:18,880 --> 00:48:22,319
Speaker 1: your friend like trading water, like you know, barely keep

1069
00:48:22,360 --> 00:48:24,319
Speaker 1: their head afloat. You want to thought on a life

1070
00:48:24,320 --> 00:48:27,240
Speaker 1: preserver and your advice could be that very life preserver

1071
00:48:27,560 --> 00:48:30,360
Speaker 1: for for their financial life. And now, one other thing

1072
00:48:30,440 --> 00:48:32,799
Speaker 1: I think we should mention here is you and I

1073
00:48:32,880 --> 00:48:35,239
Speaker 1: we've been throwing shades at the buy now, pay later

1074
00:48:35,280 --> 00:48:38,760
Speaker 1: companies for for years. We don't really like the business model.

1075
00:48:39,280 --> 00:48:41,960
Speaker 1: But yeah, companies like Clara and after payers what I'm

1076
00:48:41,960 --> 00:48:45,120
Speaker 1: thinking about. But things have actually changed and we actually

1077
00:48:45,200 --> 00:48:47,799
Speaker 1: kind of think about these companies a little bit differently now.

1078
00:48:48,000 --> 00:48:51,480
Speaker 1: And that's specifically because they're reporting consumer payments to the

1079
00:48:51,480 --> 00:48:54,880
Speaker 1: credit bureaus, right, and so this is now actually away

1080
00:48:55,000 --> 00:48:58,719
Speaker 1: a really really inexpensive way for people to boost their

1081
00:48:58,760 --> 00:49:02,520
Speaker 1: credit scores that wasn't previously available to them, specifically something

1082
00:49:02,520 --> 00:49:05,040
Speaker 1: that you would buy via a buy now pay leader service.

1083
00:49:05,040 --> 00:49:07,759
Speaker 1: It's reported as an installment loan, which is going to

1084
00:49:07,880 --> 00:49:11,359
Speaker 1: compliment any benefit that you're receiving from, like let's say

1085
00:49:11,360 --> 00:49:13,719
Speaker 1: a revolving line of credit like a credit card. It's

1086
00:49:13,760 --> 00:49:15,799
Speaker 1: it's not an excuse to overspend. We still don't want

1087
00:49:15,800 --> 00:49:18,120
Speaker 1: people to use them add nauseum and making payments on

1088
00:49:18,160 --> 00:49:20,840
Speaker 1: every single thing they buy, but there is something to

1089
00:49:20,880 --> 00:49:23,279
Speaker 1: be said. If you have to buy something and you're

1090
00:49:23,280 --> 00:49:25,480
Speaker 1: trying to build your credit up, then this is a

1091
00:49:25,520 --> 00:49:28,720
Speaker 1: good way to use those like for easy payments basically

1092
00:49:28,719 --> 00:49:31,360
Speaker 1: boost your credit score, and some of the other services

1093
00:49:31,400 --> 00:49:33,560
Speaker 1: that kind of help you do the same thing. Well

1094
00:49:33,560 --> 00:49:36,600
Speaker 1: that those actually costs money, and these bnpls they're interest free,

1095
00:49:36,680 --> 00:49:38,520
Speaker 1: so if you can make the payments it's something you're

1096
00:49:38,560 --> 00:49:41,040
Speaker 1: gonna buy anyway. This is a great other way, Crystal,

1097
00:49:41,120 --> 00:49:44,040
Speaker 1: to like have your friend help improve her own credit score.

1098
00:49:44,200 --> 00:49:46,480
Speaker 1: Something she was gonna buy anyway, put it on BNPL

1099
00:49:46,840 --> 00:49:49,920
Speaker 1: and that will report to the bureaus, effectively helping to

1100
00:49:49,920 --> 00:49:52,520
Speaker 1: booster score. That's right. Not only can it be a

1101
00:49:52,520 --> 00:49:54,960
Speaker 1: low cost way of doing it, assuming she makes those

1102
00:49:54,960 --> 00:49:57,000
Speaker 1: payments on time. I mean, like a lot of these

1103
00:49:57,000 --> 00:50:01,719
Speaker 1: are zero interests and she's literally paying not for that

1104
00:50:01,760 --> 00:50:04,440
Speaker 1: new bike helmet because she was still paying for the

1105
00:50:04,440 --> 00:50:05,840
Speaker 1: bike count. But she's paid for the bike helemet, but

1106
00:50:05,880 --> 00:50:08,480
Speaker 1: she's not paying additional fees. She's not paying interest, assuming

1107
00:50:08,560 --> 00:50:12,040
Speaker 1: you pay when you're supposed to on time. I mean, honestly, like,

1108
00:50:12,080 --> 00:50:14,000
Speaker 1: I feel like it's taken us a few weeks here,

1109
00:50:14,120 --> 00:50:15,759
Speaker 1: but I think we have completely changed how we view

1110
00:50:15,800 --> 00:50:18,359
Speaker 1: these things because now there is an actual utility that

1111
00:50:18,400 --> 00:50:21,680
Speaker 1: they provide you. Before, the only utility they provided was

1112
00:50:21,719 --> 00:50:23,600
Speaker 1: that you didn't really have to pay for it all

1113
00:50:23,600 --> 00:50:26,839
Speaker 1: all at once. It encourage consumption. But now we view

1114
00:50:26,840 --> 00:50:28,920
Speaker 1: them almost as like a credit card. UH. There is

1115
00:50:28,960 --> 00:50:31,520
Speaker 1: a benefit that you receive from that, specifically a benefit

1116
00:50:31,560 --> 00:50:34,080
Speaker 1: to UH to your credit score. UH and like you said,

1117
00:50:34,120 --> 00:50:36,759
Speaker 1: specifically like the credit mix, that is one of the

1118
00:50:36,800 --> 00:50:39,600
Speaker 1: major factors that plays into your overall FICO score. And

1119
00:50:39,640 --> 00:50:41,960
Speaker 1: so let's say you don't have a mortgage. Let's say

1120
00:50:42,360 --> 00:50:43,840
Speaker 1: you know it hasn't been that long since you've been

1121
00:50:43,840 --> 00:50:45,880
Speaker 1: out of school, maybe you recently just got a new job.

1122
00:50:45,960 --> 00:50:47,759
Speaker 1: You don't have a car loan because you've heard you

1123
00:50:47,800 --> 00:50:50,439
Speaker 1: shouldn't do that. You don't have a mortgage yet, maybe

1124
00:50:50,440 --> 00:50:52,279
Speaker 1: you don't have student loans. If that's the case, you

1125
00:50:52,280 --> 00:50:55,000
Speaker 1: don't have any installment loans, uh, and so the ability

1126
00:50:55,040 --> 00:50:58,000
Speaker 1: to get some installment loans within your credit mix is

1127
00:50:58,000 --> 00:51:00,520
Speaker 1: going to really help out your score. Again, in that

1128
00:51:00,520 --> 00:51:02,399
Speaker 1: doesn't mean you should go out of your way. It's

1129
00:51:02,400 --> 00:51:04,759
Speaker 1: a buy junk you don't need. But if you're going

1130
00:51:04,800 --> 00:51:07,279
Speaker 1: to already buy those things, I think that's a great

1131
00:51:07,280 --> 00:51:08,839
Speaker 1: way to give your score that little boost. You did

1132
00:51:08,840 --> 00:51:10,759
Speaker 1: not think we were gonna have to this point like

1133
00:51:10,840 --> 00:51:12,359
Speaker 1: where we were like, now they're actually not that bad.

1134
00:51:12,400 --> 00:51:14,959
Speaker 1: I completely agree because yeah, now they are a credit

1135
00:51:15,000 --> 00:51:18,880
Speaker 1: building apparatus for people specifically who have a low credit score.

1136
00:51:19,120 --> 00:51:23,280
Speaker 1: And yeah, without fees, because typically those things come with fees.

1137
00:51:23,320 --> 00:51:25,600
Speaker 1: Like we've always liked self dot com as a place

1138
00:51:25,600 --> 00:51:28,240
Speaker 1: where people can go that comes with a small fee.

1139
00:51:28,239 --> 00:51:30,120
Speaker 1: It's still a great product, but it comes with a

1140
00:51:30,160 --> 00:51:32,839
Speaker 1: small pe fee. These these bnpls, they come with no fee.

1141
00:51:33,320 --> 00:51:35,799
Speaker 1: So as long as you play the games in the rules,

1142
00:51:36,120 --> 00:51:37,840
Speaker 1: you pay attention to how to jump through the hoops. Right,

1143
00:51:37,840 --> 00:51:39,120
Speaker 1: all right, let's get back to the beer that we

1144
00:51:39,160 --> 00:51:42,239
Speaker 1: had on this episode. This was sour strawberry rubar from

1145
00:51:42,400 --> 00:51:44,920
Speaker 1: Edmunds Post Brewing. What were your thoughts on this one. Well,

1146
00:51:44,960 --> 00:51:48,080
Speaker 1: I will say that my first sip brought a wave

1147
00:51:48,160 --> 00:51:50,520
Speaker 1: of relief because the last edmonds Ost beer that we

1148
00:51:50,560 --> 00:51:53,880
Speaker 1: had wasn't a beer. Yeah, you might recall that we

1149
00:51:53,880 --> 00:51:55,959
Speaker 1: had that the Peanut Butter Jelly one Peanut Butter and Jelly,

1150
00:51:56,040 --> 00:51:57,560
Speaker 1: but it wasn't a beer. It was like as a

1151
00:51:57,640 --> 00:52:01,200
Speaker 1: malt beverage. And man, that was a huge letdown because

1152
00:52:01,400 --> 00:52:03,600
Speaker 1: I wasn't paying attention. I had my little two year

1153
00:52:03,600 --> 00:52:06,680
Speaker 1: old and he was memories running around like the price

1154
00:52:06,719 --> 00:52:08,799
Speaker 1: tag all the price tags off and I felt so bad,

1155
00:52:08,840 --> 00:52:10,960
Speaker 1: So I'll just grab some beers what I thought were beers,

1156
00:52:11,120 --> 00:52:12,600
Speaker 1: and I just got out of there and checked out.

1157
00:52:13,040 --> 00:52:15,000
Speaker 1: But we didn't really care for that one so much.

1158
00:52:15,280 --> 00:52:19,000
Speaker 1: But this is an actual sour ao so good. Edmondo

1159
00:52:19,040 --> 00:52:21,280
Speaker 1: was kind of totally redeem themselves with this one. Totally

1160
00:52:21,280 --> 00:52:23,840
Speaker 1: redeem themselves. Yeah, you know, it was fruity, it was tart,

1161
00:52:24,120 --> 00:52:25,640
Speaker 1: but it wasn't over the top. And the flavors that

1162
00:52:25,640 --> 00:52:27,640
Speaker 1: they were trying to trying to introduce with the strawberry,

1163
00:52:27,640 --> 00:52:28,919
Speaker 1: it kind of made me think of like the old

1164
00:52:28,920 --> 00:52:31,960
Speaker 1: school fruit roll ups, you know, back like this totally

1165
00:52:32,040 --> 00:52:33,560
Speaker 1: back in the day, the fruit roll ups that were

1166
00:52:33,560 --> 00:52:35,440
Speaker 1: wrapped in the clear plastic and you had to unwind

1167
00:52:35,480 --> 00:52:37,479
Speaker 1: them out of the it's like a stick. This tastes

1168
00:52:37,520 --> 00:52:38,799
Speaker 1: a lot like that, you know, you know what I'm

1169
00:52:38,840 --> 00:52:41,479
Speaker 1: talking company. You'd like by it into it not fruit

1170
00:52:41,480 --> 00:52:44,800
Speaker 1: by the front, but the specifically it was the shiny

1171
00:52:44,920 --> 00:52:47,200
Speaker 1: fruit roll. You know what I'm talking about. You also

1172
00:52:47,239 --> 00:52:50,279
Speaker 1: were a child. But the combination, I guess of the

1173
00:52:50,360 --> 00:52:52,000
Speaker 1: rue barb and the strawberry, it kind of made me

1174
00:52:52,040 --> 00:52:54,719
Speaker 1: think of like apricot a little bit, sort of like

1175
00:52:54,719 --> 00:52:57,640
Speaker 1: a stone fruit, even though we've got a berry here.

1176
00:52:57,680 --> 00:52:59,600
Speaker 1: But it was really good. I really liked it. Uh,

1177
00:53:00,000 --> 00:53:02,879
Speaker 1: you know, generally speaking, edmonds os they're fantastic. They're they're

1178
00:53:02,920 --> 00:53:05,680
Speaker 1: in Charleston, South Carolina, and we would highly recommend for

1179
00:53:05,680 --> 00:53:07,920
Speaker 1: folks to check them out. And strawberries are just one

1180
00:53:07,960 --> 00:53:10,120
Speaker 1: of the best fruits to put in beer anyway. And

1181
00:53:10,160 --> 00:53:12,720
Speaker 1: I feel like strawberries and ruebar's like that's a classic

1182
00:53:12,760 --> 00:53:17,520
Speaker 1: pie mixture creation is strawberry Southern? Yeah, And like my

1183
00:53:17,520 --> 00:53:20,360
Speaker 1: grandma used to grow ruebarb in her backyard in Montana actually,

1184
00:53:20,640 --> 00:53:22,919
Speaker 1: and that was my favorite, my mom's favorite pie growing

1185
00:53:22,960 --> 00:53:25,719
Speaker 1: does not sound Southern. And I don't know if I've

1186
00:53:25,719 --> 00:53:28,719
Speaker 1: actually ever tasted that kind of pie or not, but

1187
00:53:29,080 --> 00:53:31,080
Speaker 1: it is. If I did, it was in childhood. It's

1188
00:53:31,120 --> 00:53:33,000
Speaker 1: been a long time, but this beer is delicious. I

1189
00:53:33,040 --> 00:53:35,800
Speaker 1: love strawberries and beer, and the combo of strawberry and

1190
00:53:35,880 --> 00:53:38,080
Speaker 1: ruebarb together is like it's it's a winner in my book.

1191
00:53:38,080 --> 00:53:40,600
Speaker 1: It still doesn't beats for you. Your top fruit is,

1192
00:53:40,719 --> 00:53:43,160
Speaker 1: of course, raspberries. I think for me, I think my

1193
00:53:43,160 --> 00:53:46,640
Speaker 1: my favorite fruited sour might have to be blueberries. I

1194
00:53:46,680 --> 00:53:49,760
Speaker 1: love blueberries and sours. Cherries are up there too. Oh shoot,

1195
00:53:49,920 --> 00:53:54,480
Speaker 1: I forgot about. Cherries are delicious, really good. Yeah, alright,

1196
00:53:54,600 --> 00:53:56,520
Speaker 1: check out edmonds ost if you haven't already. For sure,

1197
00:53:56,760 --> 00:53:58,879
Speaker 1: that's gonna do it for this episode. For folks who

1198
00:53:58,880 --> 00:54:01,160
Speaker 1: want the show notes links to things that we mentioned

1199
00:54:01,280 --> 00:54:03,240
Speaker 1: on this episode, you can find them on our website

1200
00:54:03,360 --> 00:54:05,120
Speaker 1: at how to money dot com. That's right, buddy, So

1201
00:54:05,160 --> 00:54:08,040
Speaker 1: that's going to be it until next time. Best Friends Out,

1202
00:54:08,200 --> 00:54:09,359
Speaker 1: Best Friends Out.