Lifestyle
Ask HTM - Avoiding the Credit Card Burn, Timing a HELOC, & Solar to Retire Sooner #1045
In episode 1045 of 'Ask HTM', Joel and Matt tackle listener questions about managing credit card interest, timing for a Home Equity Line of Credit (HELOC), and the potential benefits of sola...
Ask HTM - Avoiding the Credit Card Burn, Timing a HELOC, & Solar to Retire Sooner #1045
Lifestyle •
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Interactive Transcript
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I'm Jonathan Goldstein and on the new season of Heavyweight.
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And so I pointed the gun at him and said this isn't a joke.
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A man who robbed a bank when he was 14 years old.
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And a centenarian rediscoveres a love lost 80 years ago.
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How can a 101 year old woman fall in love again?
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Listen to Heavyweight on the I Heart Radio app,
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Introducing IVF Disrupted, the Kind Body Story.
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It grew like a tech startup.
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While Kind Body did help women start families,
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Listen to IVF Disrupted, the Kind Body Story,
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on the I Heart Radio app, Apple Podcasts, or wherever you get your podcasts.
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Welcome to How To Money. I'm Joel.
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I am Matt.
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And today we're answering your listener questions.
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Yeah, buddy, this is episode 1045.
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I just saw that.
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Which sounds like it sounds like it's time for a mid-morning break.
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You know, you hear 1045.
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That's when the folks use to step out of the office to go for a smoke break.
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Oh, back in Mad Man era.
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Well, I mean, I'm even thinking about my first corporate job out of college.
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Oh, really?
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Yeah, we're looking at an ad agency.
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Like a few ladies would always step out.
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Got your desk at nine and 1045 was the time it was felt allowed.
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I guess so.
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Because they would always combine and kind of tap on the door
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and one of the other ladies would go,
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what's funny, did you ever eat?
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Well, you can share what you want to share.
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One of my caliber gears.
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I used to smoke a little bit.
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Yeah, I was going to ask, did you take,
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would you take smoke breaks?
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I know.
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20 years ago.
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No, like way back then.
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I wouldn't do it at work.
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I'd that one felt one.
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I didn't want to smell that work.
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And then two, it also was like these ladies did not care.
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They didn't care.
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But my buddy, the increased productivity that nicotine can provide.
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Does that offset the time that smokers take?
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So maybe it's a wash.
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I was wondering that because I have some friends who are in their way.
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They're not doing the nicotine gun, are they?
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For the kids listening to this podcast, we do not endorse using nicotine.
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But I have specifically smoked.
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Visibly smoking.
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But who are getting more into like the pouches
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and there's like dissolvable nicotine substances?
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Pouches the gum from productivity standpoint.
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I think it does help them focus it work.
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It's crazy.
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I don't want to be beholden to any substance.
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No, that's kind of a separate coffee.
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A little bit of craft beer.
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It's ever coffee.
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But yeah, I guess that's from that standpoint, I'm going to.
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And it just, it gets expensive.
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Yeah, that's like one more thing that I can just not have to worry about.
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Buying on the rig.
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I was going to say that one of my,
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I was working as a graphic designer.
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One of my co-designers, Brian, him and I, we would always get annoyed.
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Because they're taking like multiple breaks a day.
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And I was like, you know what?
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At least once a week, you and I should roll in here with our pipes.
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It was kind of hip to smoke a pipe back then.
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And so once a week we'd go and sit for 30, 45 minutes for a
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quantum-quote smoke break and have philosophical conversations.
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You just put all your smoke breaks into one long one.
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Yeah, that being said, they're down there for like 10, 12, 13 minutes.
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Sure. I don't know.
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I believe it.
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We are way off tangent, dude.
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This is an Ask How to Money Up A Said.
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And maybe we will actually get to some of those questions.
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Like a listener is looking to avoid getting tripped up paying credit card interest.
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He wants like all of the good that you can receive from a credit card without any of the bad.
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We're going to talk about the best time to get a heat lock.
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This listener, she's contemplating a renovation.
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So that plays into what our answer is going to be.
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Now the listener is thinking about how solar, how getting solar panels might aid
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in his ability to retire sooner.
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So yeah, we'll get to those plus a couple more during today's episode.
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There we go.
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And we will avoid any additional smoking talk or any other vices that folks might
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participate.
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Trying to avoid it.
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Although we are going to drink a craft beer on this episode.
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This one's what we do.
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It's complicated being a wizard.
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We'll give our thoughts on this one at the end of the episode.
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Real quick, Matt, I wanted to speak and go smoking a pipe.
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It's complicated.
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Wizard smoking a pipe, right?
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Like and off.
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Well, I went to the thrift store recently that's near my house that I hadn't been to before.
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There's one that's like super close to my house, but then there's one that's a little further away.
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I went to the one that's a little further away because some people had said
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that's the best thrift store in town.
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I was like, okay, I'll check it out.
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Was it?
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And it was great.
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It was a really good thrift store.
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Was it?
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Which one is that?
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It's called City Thrift.
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Oh, yeah.
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Is that a national chain of thrift stores?
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Don't think it is.
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It's like it will seem like a smaller one.
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Like it's America's thrift and Goodwill are bigger.
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I haven't seen any other City Thrift locations of this particular one,
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but there probably are.
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But the reason I went there was because, sadly, we have a funeral to attend this weekend.
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And my little dude, we needed to get him like a sports coat.
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And I was like, man, how much does a sports coat going to cost my buying at brand new?
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And how often is he actually going to wear this thing?
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Probably never again.
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And so that's the time when the thrift store makes no sense.
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Oh, yeah, right?
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Totally agree.
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And so we got him a great one.
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It was either five or six dollars.
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I don't remember.
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But I'm not.
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Doesn't matter.
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Five or six bucks, it's the same thing.
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So good.
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So much cheaper.
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He was so pumped.
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They're going to like,
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J Crew for kindergarteners.
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Yes.
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We basically got him a whole funeral outfit.
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He already had like some dark pants.
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We were there, but we got him a shirt, some dark shoes.
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And then that and the whole total walking out.
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Got a dress for my daughter was like $26 for everything.
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All of the guy I even got myself a new tie because I used to.
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I guess it's all used there for $2.09.
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Hey, that's not always the case actually because sometimes you'll find stuff with tags on it.
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Things that have never been worn before.
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That always blows my mind.
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The shoes we got him looked like they'd been worn once.
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Probably they probably had been.
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Yeah, they probably had been.
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So which is kind of crazy.
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So don't forget about the thrift stores.
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The other thing that I saw there was just a ton of Halloween costumes.
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And I was like, oh my gosh.
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That's surprising.
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Yeah, there were a lot like multiple racks of Halloween costumes.
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I wonder if they like hang onto them in the back and then they pull them out.
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Oh, probably at the beginning of October.
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Yeah, because I would think that you would see more
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Halloween costumes after Halloween or like at the beginning of the year when folks are kind of
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cleaning out the house a little bit.
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They're like, oh, I'm going to hang onto this because I'm going to wear it again.
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And then January rolls around.
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They're like, I'm not going to wear this again.
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Right.
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Let's put this on the donate pile.
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But that would be a smart thing to do.
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It sounds like a free market sort of innovative,
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capitalistic maneuver that this city, what was it?
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City thrift.
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City thrift.
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I'm going to look it up.
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Yeah.
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We check that one out.
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Just word to the wise, if your local thrift store has
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solid Halloween costume options, it's probably worth checking there.
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If you want to get something kind of cheaper actually made not not homemade,
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not home spun, you like the homemade costumes.
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We do some homemade stuff, but it just depends on what the kids have going on.
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You want to know.
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I just reuse costumes from prior years, assuming no one like I just,
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how many times have I worn my, have you had your turtles costume?
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I don't know.
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Have you done the costume recently over the past couple of years?
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When the kids were younger, we dressed up more with them,
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got to do the themed family.
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Maybe I'll bring it back this year.
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I'll be Michelangelo.
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Got to do the new Michelangelo, TNT.
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How do you create a costume that looks like that graphic novel style?
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That's the big question.
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Because you're going to look like Michelangelo from the 80s.
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Slow back.
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He looks so soft and plushy.
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I was going to say one other way that a thrift store,
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when it really shines, is when you have a pre-teen
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who doesn't totally understand her own style yet and is trying out different things,
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trying different looks, how much more affordable is it to do it there
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than buying items new when they may not, you know, they might wear them like twice.
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Right.
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And then it's just like, oh yeah, I don't really like that anymore.
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She came home the other day with Bootcut jeans,
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which is something we had talked about recently.
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She's like, what's something from when you're younger?
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I guess we're talking specifically about style,
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that we don't do anymore.
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And I was just like, well,
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there's this thing called Bootcut jeans, although Bootcut jeans are kind of
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like cut the size of our jeans.
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I explained that to her.
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I was just like, we used to even do that to make it even wider
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so that they would fit over your tennis shoes.
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Yeah.
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No way.
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I was like, yeah, that's how we used to do it.
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Back 20 years ago.
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It took me back to
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30 years ago.
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2002 is when,
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I think it's last time I had some Bootcuts.
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Nice.
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Anyway,
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yeah, thrift stores for the win.
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Don't sleep on the thrift store.
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All right, let's get to your questions.
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If you have a money question, go to howdemoney.com slash ask.
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It's pretty simple.
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To record the voice memo on the app of your phone,
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send it over our way.
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Hopefully we can take your question.
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Next week on the show,
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Matt, let's get to a question specifically about
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paying off a credit card, doing it in the smartest way possible.
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Hey, Matt and Joel.
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This is Ben from Grand Rapids.
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Thanks so much for all that you're doing with the podcast.
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Been following along for about six years now
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and your resources have been a huge part of my journey already.
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Quick question for you guys.
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So I use a Capital One Venture card
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and I treat it like a debit card.
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I paid off in full and just enjoy the rewards
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and the fraud protection from it.
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My question is about auto pay.
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So for years, I've had it set to auto pay the statement balance,
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which is really the only thing that they kind of offer
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within Capital One.
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But since the current balance is usually higher than the statement balance,
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I often end up making a manual payment
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for the current balance and then canceling the auto pay
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so it doesn't double pay.
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I'm not even sure if Capital One would allow that,
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but it's, yeah, I think I do it mostly out of fear
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in trying to avoid interest.
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So my question is, am I overthinking this?
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If I just let the auto pay handle the statement balance,
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does it ensure that it'll never be charged interest?
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Or do I need to manually pay the current balance
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each time to truly avoid interest?
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If so, is there a way to automatically do that
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in Capital One that I'm not aware of?
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Because it appears that only the statement balance
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is the allowed thing to choose for auto pay.
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So yeah, I'd love to know if the statement balance auto pay option is enough
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or if I'm right to worry about the difference
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between statement and current balance.
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So thanks a ton for your help guys.
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Really appreciate this.
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All right, Ben.
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Short answer, it is enough,
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but that doesn't mean that you shouldn't be worrying about it.
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There's other things to think about here.
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So we've got-
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What should a worry constantly be?
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Don't be stressed, but we do want you to think about it.
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I do love that you are using your credit card like a debit card.
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You know, he's got a general healthy skepticism towards his credit card,
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which I think is a-
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I don't know, it's a good, healthy approach.
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And that is warranted because half the folks who use their credit cards,
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they don't treat their credit cards with care.
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They're not paying attention because they find themselves
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in recurring credit card debt.
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And so having the attitude Ben that you have
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is going to be what keeps you in the 50% of folks who use their credit cards well.
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And he specifically outlined the benefits there.
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I talked about the fraud protection, the rewards that makes using credit cards wisely so worth it.
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Yeah, I agree.
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We call them the Golden Rules of Plastic on our website at howdemoney.com.
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If you're interested in kind of reading up what-
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When it's okay to use a credit card,
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well, we're okay with credit cards,
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but only if you use them this smart way.
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And Matt, most folks say no about the rewards,
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the 2% cashback, right?
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Or the travel rewards that you can get from using a credit card.
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But I think most people don't understand the value of fraud protection
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that credit cards can provide.
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And I love the Ben highlighted that.
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So just real quick, I wanted to just mention credit cards
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that come with superior legal protections against fraud.
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So that you aren't liable if you lose your credit card
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and someone else uses it as if they were you.
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So you drop it on the payment, someone else picks it up.
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And they're like, oh, goody.
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I'm going to Aldi.
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They're probably going somewhere else to spend even more money.
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But I'm going to Aldi and get my groceries on this thing.
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Well, that Aldi trip is not on you.
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Whereas if someone used your debit card,
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you are either if you don't catch it in time,
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you could be on the hook for some or all of that expense.
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And you're also trying to call your own money back
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as opposed to with a credit card.
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You are you're not out the money.
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It hasn't left your account.
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And so it is just another reason that we like credit cards
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as a method of payment if you can use them in a healthy way.
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Yeah, by the way, one of the reasons you don't go to Aldi
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to use somebody else's card is because they got the
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camera set up now.
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They got the on the self checkout.
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It's like a high death, really nice picture of your face
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as you're there scanning your card.
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You don't get your...
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Yeah, but you're talking about the fraud protection.
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This is actually something...
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I don't think I've...
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I haven't shared this yet on the show.
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I have previously mentioned a car rental company
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that did not hold my car rental reservation that I had made.
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So we won't get into all that.
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And so they had canceled that reservation
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and I re-booked with a different provider.
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And they said, all right, you know, you can cancel
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and that will show back up on your...
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I did the paid and full in order to get the biggest discount
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at the time.
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That will show back up on your card
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in like three to five business days.
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Guess what never happened.
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They never refunded me.
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They never credited me the amount, dude.
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And so it was like two weeks later that I remembered
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and I checked my statement.
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It still wasn't there.
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So I guess what I did hopped on there.
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And at this point in time,
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there's no way that I was gonna...
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Like I'm sure I could have like reached out to them
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and been like, hey guys,
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how come this is a giant company?
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They had already treated me incredibly poorly.
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So I went over onto the credit card on the online portal,
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flagged that charge.
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And it just had a nice option there as one of the reasons.
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Violent dispute.
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It was the fact that, oh, this is something that had been canceled.
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It's not like...
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It didn't...
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I feel like it used to say,
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please reach out to the business first.
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But they were just like, oh,
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did you... was this a charge that should have been canceled
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or refunded?
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And they're like, yes.
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And they're like, cool, we got your back.
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We'll be in touch.
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And they immediately credited my account by that $900.
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And then it took them like over a month.
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I want to say almost two months of them
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evidently reaching out to budget
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to see if they would be able to...
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be able to provide that money.
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Anyway, the temporary credit was there that entire time.
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And I wasn't out that money until they officially...
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And so they officially got it back.
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And of course, I didn't really care
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because in my mind, it was all...
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It was already back in my account.
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But for them to have done that for me, it was wonderful.
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That's pretty sweet.
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So great.
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It's an undervalued characteristic the credit card's offer.
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Yeah.
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It's not often that you have to put it to use,
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but, man, I'm certainly glad that I was able to do that.
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Then as opposed to being forced to have to manually claw back my own money
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where I had...
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had I put that on a debit card.
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For sure.
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You also can get great rental card insurance
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through your credit card as well.
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If you use the right credit card, that's true.
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Let's talk about statement balances versus current balances.
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That's really the heart of Ben's question here.
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He says,
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really, which one makes sense?
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And he's going through the manual way to pay the current balance
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instead of just the statement balance.
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Well, your credit card billing cycle
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it closes it basically the same time every month.
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And then you are responsible for paying that balance by the due date.
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And if you do,
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you're avoiding the most nefarious feature of credit cards
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paying those high interest rates,
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which of course, got worse in recent months.
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And so auto paying the statement balance is a great way to go.
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And it makes the most sense for most folks.
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Because as long as you get the money sitting in your bank account,
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it's this seamless transaction happening behind the scenes
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that you don't have to worry about.
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And we don't...
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I don't know if a credit card issue...
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issue a math that allows you to auto pay your current balance
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as opposed to the statement balance.
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I don't think it's a thing.
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Probably because the current balance is always changing
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multiple times a day for many people.
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So still paying that statement balance,
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it's good enough for most folks.
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They really shouldn't need to go any further
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or pay that current balance like Ben is keen to do.
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Yeah, you can choose minimum balance,
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but we wouldn't recommend you do that.
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That's the wrong option.
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I think Ben's just worried that something's going to happen.
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And he's going to be charged interest,
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which is why he is manually going in there.
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He's paying that current balance each month.
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You don't need to do that.
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You will avoid the downsides of credit card
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if you allow that auto pay to go through.
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But that being said, there are some perks
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to taking your approach as well.
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And one of the benefits here is that
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you're giving a potential boost to your credit score.
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So that balance being reported to the credit bureaus
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is going to be smaller,
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which lowers your credit utilization rate,
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which increases your score over time.
spk_0
So if your score is just okay,
spk_0
and this is something that you're trying to focus on,
spk_0
increasing, then this can be an effective tactic
spk_0
to essentially keep that running,
spk_0
that revolving balance to a minimum.
spk_0
So I normally pay the statement balance,
spk_0
Matt, and just kind of let it automatically
spk_0
be paid every single month on the last.
spk_0
Unless I make a really big purchase,
spk_0
because when I make a really big purchase,
spk_0
that's when I'm like,
spk_0
oh, what was your latest, really big purchase?
spk_0
I'm trying to remember what it was.
spk_0
You're talking thousands of dollars,
spk_0
right?
spk_0
Like if you're like,
spk_0
oh, like if you're booking a trip,
spk_0
perhaps,
spk_0
booking a trip, maybe a bunch of flights or something like that,
spk_0
or a car rental,
spk_0
if there's something that is a little bit out of the ordinary,
spk_0
and I don't want it to impact that credit utilization
spk_0
ratio,
spk_0
I will just manually go in there,
spk_0
and it's, you know,
spk_0
I probably don't need to,
spk_0
and is it really going to impact my score all that much?
spk_0
Probably not,
spk_0
and even if it does impact it by a few points,
spk_0
pull up bounce back pretty quickly.
spk_0
Yeah, probably,
spk_0
but it's still,
spk_0
I don't like to own the line though.
spk_0
Yeah, I don't like even getting close,
spk_0
you know, you just,
spk_0
I just like to make sure that I'm not going to,
spk_0
yeah, I'm going to go anywhere near that line.
spk_0
So I'll bounce in there,
spk_0
pay it off real quick,
spk_0
get it done with.
spk_0
I think there's also something powerful
spk_0
about taking things off auto-pilot,
spk_0
and there's something
spk_0
really great about auto-pilot
spk_0
and certain things in our lives,
spk_0
but a lot of people opt for auto-pay,
spk_0
and then they don't ever look at their credit card statements,
spk_0
so they're just not regularly being confronted
spk_0
by their spending habits,
spk_0
and, you know, maybe they consistently have enough money
spk_0
in the bank to cover their statement balance
spk_0
to be able to pay that off on time and in full
spk_0
without having to worry about
spk_0
whether or not they can pay it,
spk_0
or it's going to impact their credit score.
spk_0
Maybe their credit card's limit is so high
spk_0
that they're not even getting anywhere close to that,
spk_0
territory, and so they're like,
spk_0
yeah, statement balance, done.
spk_0
I don't have to even think about it.
spk_0
If there are, avoiding maybe the worst parts
spk_0
of credit card's interest in late payments,
spk_0
but if those people were to log in
spk_0
and were to be confronted with their spending
spk_0
on a monthly basis,
spk_0
if they were to look at the actual transactions,
spk_0
and then they were to manually,
spk_0
I think, pay that credit card bill
spk_0
instead of just letting it auto-pay,
spk_0
I think maybe for some folks it would wake them up
spk_0
just some of the spending choices
spk_0
that they're making
spk_0
that aren't in their best interest.
spk_0
And so, yeah, do you need to manually log in
spk_0
and feel the pain viscerally in order
spk_0
to be a smart credit card user?
spk_0
No, but it could be a helpful psychological trick,
spk_0
I think, for some folks to go in there every now and again,
spk_0
more often than they currently are.
spk_0
And I do think that it could lead to some positive benefits,
spk_0
totally.
spk_0
Yeah, and I don't think this is quite what Ben's doing,
spk_0
but he's mentioning going in there
spk_0
and cancelling the auto draft,
spk_0
the auto payment that's scheduled.
spk_0
Hopefully he's not completely unscheduling it,
spk_0
and then rescheduling it or something like that.
spk_0
I think he's just going in there for that particular payment.
spk_0
But essentially, he's got it there as like a safety net, I think.
spk_0
So just in case he does,
spk_0
if it slips his mind,
spk_0
that it will get taken care of.
spk_0
But I think for a lot of folks,
spk_0
it is a good safety mechanism
spk_0
to have that auto pay on.
spk_0
In case you forget or things get busy,
spk_0
maybe just slips your mind
spk_0
and you don't close out that month.
spk_0
And for that reason, I would recommend,
spk_0
keep that auto pay on.
spk_0
I guess that's a thing that worries me
spk_0
if he's going in there and manually paying.
spk_0
And he takes off auto pay,
spk_0
and he forgets to manually paying one month.
spk_0
I think it's just cancelling that particular one.
spk_0
Because like the way it set up,
spk_0
it feels, I think it's just,
spk_0
I don't personally do auto pay.
spk_0
I like living life on the edge, Ben.
spk_0
So you put a calendar reminder to go in every single month
spk_0
and manually pay the money.
spk_0
At the end of the month,
spk_0
I go in there and I close out the month with my different cards.
spk_0
And I scheduled the payment.
spk_0
I don't actually make the payment,
spk_0
but I scheduled it based on the current balance
spk_0
of the previous calendar month.
spk_0
And because I don't like being part of it
spk_0
with my money sooner than I have to, Joel.
spk_0
I'll always schedule it for one day
spk_0
before when it's actually due,
spk_0
which maximizes the time that that money's sitting
spk_0
in my own account earning that interest, baby.
spk_0
There you go.
spk_0
So yeah, I guess Ben really,
spk_0
yeah, you don't have to change your habits.
spk_0
And if this is working for you, go for it.
spk_0
And maybe this is just creating more insight to your money
spk_0
and it's kind of fueling that drive
spk_0
to make progress with your finances,
spk_0
to spend less and to save more.
spk_0
That's great.
spk_0
But also know that you can choose that statement
spk_0
balance option if you want to make your life a little simpler.
spk_0
And you'll be okay if you do that too.
spk_0
All right, we got more to get to on this episode,
spk_0
including how do you convince your parents
spk_0
to make better financial decisions?
spk_0
We'll discuss that more right after this.
spk_0
I'm Jonathan Goldstein, and on the new season of Heavyweight,
spk_0
I help a centenarian mend a broken heart.
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How can a 101 year old woman fall in love again?
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And I help a man atone for an armed robbery
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he committed at 14 years old.
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this isn't a joke.
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And he got down and I remember feeling kind of a surge of like,
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okay, this is power.
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Plus, my old friend Gregor and his brother
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We can give you a whole brand new thing
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Being more able to look at people in the eye.
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Listen to Heavyweight on the iHeartRadio app, Apple Podcasts,
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or wherever you get your podcasts.
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Run a business and not thinking about podcasting?
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Think again.
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Call 844-844-iHeart to get started.
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That's 844-844-iHeart.
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I started trying to get pregnant about four years ago now.
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and it just kind of felt like the window could be closing.
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Bloomberg and iHeart Podcasts present.
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IVF disrupted the Kind Body story.
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A podcast about a company that promised to revolutionize
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Introducing Kind Body, a new generation of women's health
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and fertility care.
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Backed by millions in venture capital and private equity,
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it grew like a tech startup.
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While Kind Body did help women start families,
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it also left behind a stream of dissolution
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and angry patients.
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You think you're finally like with the right people
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in the right hands and then to find out again
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that you're just not.
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Don't be fooled.
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By what all the bright and shiny.
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Listen to IVF disrupted the Kind Body story.
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Starting September 19th on the iHeart Radio app, Apple Podcasts,
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or wherever you get your podcasts.
spk_0
We are back from the break and we will get to that
spk_0
relational money question here in a second.
spk_0
But Joel, let's first hear from a listener
spk_0
who is wanting to make sure that she is nailing the timing
spk_0
when it comes to applying for HELOC.
spk_0
Hey, Matt and Joel, this is Corinne from Upstate New York.
spk_0
I had a question about the right time to get a HELOC.
spk_0
Here's my situation.
spk_0
I am fairly confident that I'm going to be laid off
spk_0
from my job sometime in the next three to five months.
spk_0
But no worries about that.
spk_0
We're very lucky.
spk_0
My family is in Money Gear 7.
spk_0
And honestly, I have been thinking about leaving my job
spk_0
for a couple of years now,
spk_0
but I was never able to go through it.
spk_0
So it's probably going to be a really good thing for me.
spk_0
The thing is, my wife and I have been noodling
spk_0
with the idea of a significant home renovation.
spk_0
We have no immediate or specific plans,
spk_0
but it's something we'll probably want to do
spk_0
sometime in the next five or 10 years.
spk_0
And right now, I have a high income at my job.
spk_0
And after I'm laid off, I don't anticipate getting another job.
spk_0
We have two young kids at home,
spk_0
so I'll be focused on them and running the household.
spk_0
My wife will likely go back to work,
spk_0
mostly for the health insurance,
spk_0
but her income will be significantly less than mine is now.
spk_0
So would it make sense to get a HELOC now
spk_0
while my income is still high?
spk_0
Or am I oversyncing it since our future renovation plans
spk_0
are still so fuzzy?
spk_0
I just don't want to lose out on good financing opportunities
spk_0
once or W2 income drops,
spk_0
but it seems a little silly to fuss over a home renovation
spk_0
project that may not ever even happen.
spk_0
So I'm kind of leaning toward doing nothing now,
spk_0
but I'm very curious for your thoughts.
spk_0
Thanks very much.
spk_0
Matt, it's very rare that you hear someone say,
spk_0
I'm probably going to get laid off in a few months,
spk_0
but no biggie, someone who's in such great spirits.
spk_0
That is the power, I think,
spk_0
of financial responsibility over a long period of time,
spk_0
which Corinne and her partner have obviously taken a heart,
spk_0
like they have taken a lot of steps there in Money Gear 7.
spk_0
So they have a lot of options to say,
spk_0
yeah, I'll probably get laid off and it'll be okay.
spk_0
And actually, we're going to have less income coming in,
spk_0
but we can still afford a renovation.
spk_0
We'll figure it out.
spk_0
Yeah, I mean, clearly they've done a lot of work
spk_0
to get to the point that they're at.
spk_0
I like that she was also,
spk_0
she was just like, I didn't really like that job anyway.
spk_0
It's like already something that she was thinking about.
spk_0
And so I think it's, yeah, I guess she's just
spk_0
in an amazing position to be able to have the financial
spk_0
standing to take that traditionally very bad news
spk_0
and get straight.
spk_0
Well, if you don't love your job and you're kind of ready
spk_0
to leave, but you can kind of see the storm clouds
spk_0
on the horizon, getting laid off is the best way to go.
spk_0
Oftentimes because you're able to negotiate a severance package
spk_0
on the way out the door, or as if you just leave
spk_0
of your own volition, you're just like, well, all right, see ya.
spk_0
Yeah.
spk_0
And then they're like, well, we're going to lay you off
spk_0
next month, but okay, sure, if you want to go now,
spk_0
that's great.
spk_0
So yeah, maybe waiting a little bit longer
spk_0
is the perfect way to do this.
spk_0
And the Sam Dogen who writes at Financial Samurai,
spk_0
he's written about this extensively,
spk_0
the concept of engineering and negotiating a layoff.
spk_0
His situation was a little unique working in Silicon Valley,
spk_0
but still I think there's some stuff
spk_0
that we can extrapolate as individuals
spk_0
when it comes to trying to negotiate,
spk_0
leaving our employer if we're so inclined.
spk_0
And obviously, Corinne is in the financial position
spk_0
to be able to do this well.
spk_0
That's right.
spk_0
We're big fans of Helox, by the way,
spk_0
home equity, line of credit,
spk_0
but similar to credit cards, I'm only for it
spk_0
if you use them properly.
spk_0
And generally speaking, I would love to see many more
spk_0
homeowners out there having access to a Helox,
spk_0
but opting not to use it, not unlike how we use
spk_0
the credit that's available to us via our cards.
spk_0
It can almost like function as like a backup emergency fund
spk_0
of sorts, certainly having one is no excuse
spk_0
to not have gone through the money gears
spk_0
and actually amassed a decent chunk of savings.
spk_0
And with a big chunk of savings on hand,
spk_0
and hopefully Roth IRA contributions
spk_0
that you could potentially draw on were you to,
spk_0
were you to be in a pinch,
spk_0
you never have to actually tap that Helox
spk_0
for emergency purposes, but still,
spk_0
since having access to one cost you essentially nothing,
spk_0
I think Corinne raises just a good point as to,
spk_0
you know, why not?
spk_0
Why not pursue this product?
spk_0
Well, I think the reason why the Helox
spk_0
makes more sense to have
spk_0
than so many other financial products
spk_0
is because you're not paying interest on it
spk_0
unless you actually tap that.
spk_0
So it's like get the Helox,
spk_0
you don't actually pay typically any closing costs
spk_0
or pay any money to open the Helox.
spk_0
And then if you never take any of the money out,
spk_0
you're doing just fine.
spk_0
You just had it there as a just in case account
spk_0
and hopefully you never have to use it.
spk_0
But Corinne does want to tap her Helox,
spk_0
which is also fine.
spk_0
And doing a home renovation,
spk_0
that's a reasonable use of that product.
spk_0
We would say that it's,
spk_0
why not go for a Helox if you have a plan
spk_0
to pay it off in a reasonable amount of time?
spk_0
We would ideally want you to be able to pay it off
spk_0
within five years,
spk_0
but that's the longest timeline
spk_0
that we want you to consider
spk_0
if you're taking out money on a Helox.
spk_0
Otherwise, you're taking on too much risk.
spk_0
And so good news is,
spk_0
rates are likely to go down on your Helox
spk_0
over the coming months and maybe years,
spk_0
making it easier to pay off over time.
spk_0
But the real question is here,
spk_0
when should she take the Helox out?
spk_0
And we would say do it now.
spk_0
And that is because while you're gainfully employed,
spk_0
you're likely to get the best terms.
spk_0
You've got, if you lost your job next week,
spk_0
credit unions and banks,
spk_0
they might tell you to take a hike.
spk_0
Hey, guess what?
spk_0
You don't have enough income to justify us
spk_0
giving you this loan,
spk_0
even though you might not need it for five or 10 years,
spk_0
like they're not going to listen to that.
spk_0
They're going to look at what's currently going on
spk_0
with your finances.
spk_0
And if you don't have a paycheck coming in,
spk_0
they might turn you away.
spk_0
Some lenders will underwrite based on assets,
spk_0
but many won't.
spk_0
So I just say don't risk it
spk_0
because you could find yourself in a position
spk_0
where you want access to some of your home equity
spk_0
and you don't have it.
spk_0
Why not while the sun is shining,
spk_0
open the account.
spk_0
It makes me think of a man who just lost his job
spk_0
and he's trying to close on a house.
spk_0
And it just throws all of the,
spk_0
just a ton of wrenches into the gears
spk_0
of his ability to do this.
spk_0
And so yeah, while you have the job,
spk_0
establish this account,
spk_0
and then you can always choose to not use it
spk_0
because Karin's prudent here when it comes to finances.
spk_0
She's not going to screw this up.
spk_0
Totally, yeah.
spk_0
There's no real downside to getting the loan now
spk_0
and not using it,
spk_0
even if you don't actually use it for the renovation.
spk_0
She says, well, what's the point in fussing with this
spk_0
if this isn't a renovation that actually takes place?
spk_0
Well, there's not really much downsides to go ahead
spk_0
and get it even though even if the home renovation
spk_0
isn't something that you, that you end up doing.
spk_0
Now on that note,
spk_0
I love how flexible you are with this potential home renovation
spk_0
because you said this might be something that happens
spk_0
a decade down the line or maybe even not at all.
spk_0
Like that's a lot of wiggle room and a lot can happen
spk_0
in that sort of time frame,
spk_0
including saving up a bunch of money
spk_0
to pay for this renovation with cash.
spk_0
So, while I think it makes sense to go ahead
spk_0
and get a helic now,
spk_0
for the other reasons we mentioned,
spk_0
just know that you might be able to completely avoid tapping it
spk_0
or maybe you just need it for a small amount
spk_0
of the remaining balance of the Renault
spk_0
because you thought, all right,
spk_0
we were able to save up the vast majority of it,
spk_0
but then you said, oh, you know what,
spk_0
let's go ahead, let's go with the nicer tile.
spk_0
Oh, let's go ahead and add this as well
spk_0
and you end up spending maybe a little bit more
spk_0
and you're thinking, all right, we'll shoot.
spk_0
It actually did pay off to get the helic.
spk_0
Next, we have 20 extra grand right now.
spk_0
Oh, wait, we have the helic.
spk_0
Oh, wait, we do.
spk_0
And we can pay that jump off in, you know,
spk_0
nine, 12 months, something like that.
spk_0
Exactly.
spk_0
So, I think that that's a wise move
spk_0
and just, again, that time frame is,
spk_0
it's great that you've got so much flexibility there too
spk_0
because I will say, as adults,
spk_0
like I think our, like we know our typical needs
spk_0
and what it is that we're looking for
spk_0
if we're looking to renovate a home,
spk_0
but when you have kids,
spk_0
do kids relative to adults, kids are very dynamic
spk_0
as far as their interests,
spk_0
the kind of space that they're looking for,
spk_0
like the hobbies it might be interested in.
spk_0
And that doesn't even account for possibly moving
spk_0
for schools, right?
spk_0
Like as adults, I don't know when I was younger,
spk_0
I didn't consider at all the school district
spk_0
other than like, oh yeah, this is just
spk_0
generally speaking a good school district,
spk_0
so I know that that's probably good for home values,
spk_0
but there are other considerations that go into that
spk_0
when you actually have a kid who you are putting
spk_0
in a particular school and where it is you live
spk_0
has a large impact on the type of school that you're in.
spk_0
And so that could be something that ends up happening
spk_0
down the road as well,
spk_0
and so like you said, this might be a renovation
spk_0
that happens in a couple years,
spk_0
or it might never happen,
spk_0
but having the option to be able to tap that HELOC
spk_0
for various reasons I think is a good idea.
spk_0
And Matt, just briefly,
spk_0
maybe we should mention shopping for a HELOC,
spk_0
getting close to different lenders
spk_0
and a credit union, local credit union might be your best bet,
spk_0
but shop around, get a few different quotes,
spk_0
you can typically do that from the comfort of your home online,
spk_0
just going to a few different websites for lenders near you.
spk_0
And because that's important too,
spk_0
that's we talk about that when we're talking about
spk_0
financing a home, getting a mortgage,
spk_0
but the same is true with a HELOC,
spk_0
rates and fees are gonna differ by different lenders.
spk_0
So yeah, make sure you do your diligence
spk_0
on the front end there.
spk_0
All right, let's get to another question.
spk_0
This one is from a listener who thinks
spk_0
that solar power might help him retire sooner.
spk_0
I'm Matt and Joel, my name is Jacob,
spk_0
and I'm calling from Western Pennsylvania.
spk_0
I'm 51 years old.
spk_0
I make about 200,000 a year.
spk_0
I have roughly 1.5 million saved for retirement,
spk_0
plus 150 in high yield savings.
spk_0
I still have about 300,000 left in my mortgage,
spk_0
but that's a low interest rate.
spk_0
So I'm not paying it off early.
spk_0
I'd like to retire in the next five to 15 years,
spk_0
depending on a lot of different things.
spk_0
Here's my question.
spk_0
Our electric bill runs about $400 a month.
spk_0
Solar contractors say a solar system
spk_0
to cover 90% of our usage would cost about $70,000.
spk_0
After a federal tax credit,
spk_0
my net cost would be about 50,000 with a break even,
spk_0
around 11 years, not including the opportunity
spk_0
cost of investing the 50,000.
spk_0
If I finance the project,
spk_0
the break even stretches closer to 20 years,
spk_0
but my monthly payment would stay the same
spk_0
as it is right now.
spk_0
So in the big picture,
spk_0
I think I would still be winning on that trade off.
spk_0
I'm also considering trying to self GC the project,
spk_0
which is not something that I know much about,
spk_0
but I think I could handle it.
spk_0
And that would save me 10 to $15,000 on the total cost.
spk_0
My question is, should I spend the 50,000 of cash now
spk_0
to control expenses later in my retirement?
spk_0
Should I keep the money invested
spk_0
and just absorb the higher utility costs
spk_0
or should I take the extra risk of self GCing
spk_0
to make the numbers look a little bit better?
spk_0
I appreciate.
spk_0
Appreciate any advice you can give me.
spk_0
Thanks and have a great day.
spk_0
All right, so I believe that Jacob has a very good chance
spk_0
of retiring in five years.
spk_0
Sounds like it.
spk_0
Based on how much he's got set aside.
spk_0
That being said, again,
spk_0
we're talking about Windows of Time here
spk_0
and flexibility, like the fact that he's thinking,
spk_0
all right, I don't know sometime like in the next five,
spk_0
I don't know, maybe it'll be 15 years from now.
spk_0
I think that's pretty clutch when it comes to actually
spk_0
being able to pull the trigger in retiring.
spk_0
As opposed to that flexibility,
spk_0
have an option to get to the list.
spk_0
Yeah, as opposed to like shooting for a specific year
spk_0
and then just realizing,
spk_0
oh, where are you, they're gonna have to alter
spk_0
our lifestyle significantly?
spk_0
Which, hey, for some people, it's totally worth it,
spk_0
depending on what you got going on.
spk_0
But I just don't love the idea of assuming
spk_0
that you'll be able to work even longer
spk_0
in order to make more money until you're just a ripe old age.
spk_0
Cause that's not always in the cards for folks.
spk_0
But again, Jacob having the flexibility to go either way,
spk_0
I just put some in the cat bird seat.
spk_0
Yeah, I like it.
spk_0
Agreed.
spk_0
And okay, there's the retirement window
spk_0
that Jacob mentioned,
spk_0
but there's another window that we're looking at here
spk_0
specifically with Jacob's question, Matt.
spk_0
And it is the short time that he's going to be able
spk_0
to qualify for the tax credit for installing solar.
spk_0
Oh, yeah.
spk_0
And the tax credit is not an insubstantial amount
spk_0
in this case.
spk_0
It could really turn something that feels like
spk_0
a solid decision into a not so great one overnight.
spk_0
Like, and I mean literally overnight
spk_0
because like January 1st,
spk_0
if you finish the installation then,
spk_0
you're screwed.
spk_0
Like you're out of luck.
spk_0
You do not get the federal tax credit.
spk_0
In his case, I guess close to $20,000.
spk_0
Cause that's what he said, right?
spk_0
spk_0
spk_0
And $70,000 install,
spk_0
but with the credits,
spk_0
he's looking at close to 50.
spk_0
It's holy cow.
spk_0
That's very significant.
spk_0
It's kind of like how the EV tax credit went away
spk_0
at the end of last month.
spk_0
And October 1st, if you bought an EV,
spk_0
like what sucker is going into buy an EV on October 1st?
spk_0
The number nobody has purchased a new EV
spk_0
in the last six days.
spk_0
I'm curious who's that first person
spk_0
who's actually going to buy an EV like,
spk_0
who is that person and what pushed them over the edge?
spk_0
Well, if you're ultra wealthy
spk_0
and you don't qualify for any other rebates,
spk_0
that's true.
spk_0
If your AGI is above a certain threshold,
spk_0
then you're like, I don't matter.
spk_0
That's just point.
spk_0
I'll just get him whatever that's a good point.
spk_0
But it must be a like it Joel.
spk_0
In this case, like you just don't want to wait too long.
spk_0
The economics of the project
spk_0
are going to get far worse if you wait.
spk_0
So given the known reality
spk_0
of no more solar tax credit starting in 2026,
spk_0
I think bouncing now is really important.
spk_0
Yeah, but he also mentioned financing,
spk_0
which I don't love because that makes
spk_0
the numbers much less compelling.
spk_0
Jacob, you'd be paying interest unnecessarily.
spk_0
And like you said, the break even timely,
spk_0
it gets stretched way out.
spk_0
Yes.
spk_0
So the other hand, what he's saying is,
spk_0
well, I could invest that money instead.
spk_0
But we're likely talking about interest rates
spk_0
I'm assuming like somewhere in the six to 10% range.
spk_0
That's if you have good credit,
spk_0
which I'm assuming Jacob does.
spk_0
But that being said, the chances of outperforming
spk_0
go down significantly.
spk_0
If you're looking to say, oh, well,
spk_0
my money's got to earn more than 9% in the market.
spk_0
Yeah, I don't know if I would.
spk_0
I would count on that.
spk_0
That's not going to go into my calculations.
spk_0
I'd rather take the guaranteed number,
spk_0
which is paying, you know, paying cash
spk_0
and not paying the 9% interest
spk_0
than hoping I earn more in the market.
spk_0
Yeah, and on top of that,
spk_0
Jacob's got a lot of cash on hand, man.
spk_0
He's got a good amount in savings.
spk_0
And so forking over $50,000 to do the solar project,
spk_0
I don't think that would crush his finances.
spk_0
You're still going to have plenty of cash on hand.
spk_0
He still currently has a job.
spk_0
He's earning 200K.
spk_0
So he'd be able to fairly quickly,
spk_0
I think, refill those coffers.
spk_0
But even once he just pays for that solar project,
spk_0
he still has six months worth of income on hand,
spk_0
which is quite a bit that significant.
spk_0
But what it would immediately do though,
spk_0
of course, is lower his monthly bills,
spk_0
very nicely moving forward.
spk_0
And so I think if you are getting hung up
spk_0
on the investing sort of part of your calculus here,
spk_0
just to remind yourself that you can take the savings
spk_0
that you are receiving every single month,
spk_0
essentially what you wouldn't pay to the utility company.
spk_0
Yeah, and we said 90% of his overall usage,
spk_0
so 90% of that $400 every month,
spk_0
plug that straight into the market, man.
spk_0
So you're kind of getting,
spk_0
getting to have your cake and eat it too.
spk_0
Agreed.
spk_0
And financing is better than leasing.
spk_0
There's a lot of weird stuff when it comes to leasing
spk_0
your solar panels, but it's still not our favorite.
spk_0
And if you try to sell that home,
spk_0
by the way, in the future, while still owing money
spk_0
on those solar panels, it could add unnecessary stress
spk_0
to the situation, especially if you don't have the cash
spk_0
on hand to pay that loan down in full.
spk_0
And on another note, which I think is important to mention here,
spk_0
not only are you going to be saving on your energy bills,
spk_0
but you'll also be adding to the value of your home.
spk_0
That's something that a lot of people who install solar
spk_0
they're not really thinking about, I don't think.
spk_0
They're really not that hell-mequity in the sense that,
spk_0
hey, it's like a feature.
spk_0
It's a benefit.
spk_0
It's like an amenity at a nice hotel.
spk_0
It's a selling point.
spk_0
Yes, absolutely.
spk_0
And so if, for instance, he installs a solar,
spk_0
and then he saves, let's say, roughly four grand a year
spk_0
for the next two years, he saved himself eight grand
spk_0
in energy bills.
spk_0
And then he's like, oh, man, it's time to move on.
spk_0
I gotta sell this home.
spk_0
Well, man, I'm such an idiot.
spk_0
Why did I spend all this money on solar?
spk_0
Well, the truth is you're gonna get a lot of that money
spk_0
back upon resale.
spk_0
So potential buyers are gonna be willing to pay more
spk_0
because of the perpetual energy savings
spk_0
that having solar on the house provides,
spk_0
like your investment in the energy savings of this house,
spk_0
even if they don't accrue to you for decades to come,
spk_0
they'll accrue to somebody else and they'll pay you for that.
spk_0
So saving money now, it's a big attraction,
spk_0
but it's also, I think, helpful to know
spk_0
that it's a decent investment in your property too.
spk_0
Yeah, to that extent, I would make sure to keep good records
spk_0
to even show and to even demonstrate
spk_0
if and when the time came for you to sell that house
spk_0
to say, hey, where are my utilities were?
spk_0
This is where they are now.
spk_0
That way, when it comes to someone who's thinking about,
spk_0
oh, well, another house just like you're sold for this,
spk_0
and you can say, well, you got a factor
spk_0
in the additional savings here
spk_0
that you're gonna realize every single month,
spk_0
being able to communicate that effectively, I think, as clutch.
spk_0
And then just shop around with multiple installers.
spk_0
Make sure specifically though that they can get the system
spk_0
up and running before the end of the year,
spk_0
because if not, if the install completes in 2026,
spk_0
you can miss out on those tax credits.
spk_0
I think for that reason, I would avoid,
spk_0
he mentioned possibly GCing it himself.
spk_0
I think for that reason, like GCing it himself,
spk_0
sounds like he's not super interested in doing it,
spk_0
but he's maybe capable, he sounds like a smart guy.
spk_0
I would be more likely to say yes
spk_0
if it was earlier in the year,
spk_0
but because there are going to be,
spk_0
there's gonna be like a mad rush, I think,
spk_0
of folks who are trying to get these things done, agreed.
spk_0
And these installers are gonna be booked through,
spk_0
like December 31st, man.
spk_0
And that's one of the things you need to prioritize
spk_0
is like, hey, how, like, I would even interview people
spk_0
who have used the company in the past and say,
spk_0
do they stick to their timeline?
spk_0
Like I would want to, similar to interviewing a general
spk_0
contractor who's doing other work at your house,
spk_0
I would want to know that they actually,
spk_0
they do good work that people who have used them
spk_0
are happy with it and that they get it done
spk_0
in the time they say they're gonna get it done.
spk_0
And because it's a lot of money on the line.
spk_0
There's a lot of money on the line.
spk_0
It's so crucial right now.
spk_0
I think getting this done makes sense.
spk_0
GCing it could delay that process
spk_0
and that could cost you more than the savings
spk_0
you might be able to realize.
spk_0
So that could be a cheap move, not a frugal move.
spk_0
100%.
spk_0
Another aspect too that, like you're talking
spk_0
about the ongoing savings every month being the,
spk_0
like you got the benefit, the immediate benefit
spk_0
of the monthly savings, but then just kind of like
spk_0
the long-term benefit of like the increased equity
spk_0
in the home.
spk_0
There's also like something else,
spk_0
as I was just picturing this on my own home,
spk_0
on my own roof, like it gets really hot up in the attic
spk_0
and there is just a massive increase in your home's ability
spk_0
to deflect solar energy that is not just getting sucked
spk_0
into the attic, right?
spk_0
And so I was up there recently changing out the air filter.
spk_0
I was just like, it is so hot up here.
spk_0
And picturing solar panels on there,
spk_0
it literally takes the brunt of the solar energy,
spk_0
not only does it create, of course, electricity with it,
spk_0
but it literally shades your home to where it creates
spk_0
this energy passive system, which means that you need
spk_0
to use even less energy to actually cool your home.
spk_0
So some people might call it a double whammy.
spk_0
It's a double, yeah, it's a double whammy.
spk_0
Is that what you're gonna say?
spk_0
What you're saying?
spk_0
I was, actually.
spk_0
It's like it serves the end goal of what you're trying
spk_0
to achieve even more.
spk_0
And I think that's just, I don't know how big
spk_0
of a deal that is, but you can tell the difference
spk_0
in your house, you know, like imagine,
spk_0
even when the external temperature outside
spk_0
is roughly the same.
spk_0
When it's a sunny day, at least at our house, man,
spk_0
on the second floor, it gets so hot.
spk_0
It can get really hot up there as opposed to a cloudy day
spk_0
where you're not getting that direct blast from the sun.
spk_0
That's just bacon, the upstairs, bacon, the attic.
spk_0
So green.
spk_0
We got more questions to get to Matt,
spk_0
including convincing your folks to make
spk_0
better financial decisions.
spk_0
And what about the best cell phone plan for wearables?
spk_0
We'll get to those questions right after this.
spk_0
[♪ OUTRO MUSIC PLAYING [♪
spk_0
I'm Jonathan Goldstein, and on the new season of heavyweight,
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I help a centenary in Menda Broken Heart.
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How can a 101-year-old woman fall in love again?
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this isn't a joke.
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okay, this is power.
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Listen to heavyweight on the iHeartRadio app, Apple Podcasts,
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All right buddy, we are back from the break.
spk_0
And of course, it is now time for the Facebook question of the week,
spk_0
which this week happens to be from Bode MacBode Face Esquire.
spk_0
Remember, I think that's a real name.
spk_0
Bode MacBode.
spk_0
So that's like a British boat or submarine or something
spk_0
that they didn't online pull for.
spk_0
They allowed the public to name the boats.
spk_0
This is why we can't have nice things.
spk_0
I know. I don't think they were expecting this name to win,
spk_0
but it did.
spk_0
So in Atlanta, there is a public works project
spk_0
where they drilled underground from the river to like a new reservoir.
spk_0
And they did something similar.
spk_0
And you remember what ended up willing?
spk_0
I don't.
spk_0
Ended up winning for the name for the drill.
spk_0
What was it?
spk_0
Drilla Mike.
spk_0
So like killer Mike from run the jewels.
spk_0
Which is a great.
spk_0
Yeah, it's how awesome is that.
spk_0
Yeah, I think it's right.
spk_0
Anyway, this is from Bode MacBode Face Esquire.
spk_0
TLDR, how do I convince my dad not to take out a home equity loan
spk_0
to pay for a new air conditioning and a new furnace?
spk_0
My parents, 77 and 75, they don't have central air in their home
spk_0
and their furnace is legit 50 or 60 years old.
spk_0
Which is impressive, by the way.
spk_0
It's probably why it still runs actually because it's like,
spk_0
it'll make them like they used to.
spk_0
They are planning on installing AC and getting a new furnace,
spk_0
but they're going to take out a home equity loan instead of taking
spk_0
some money out of their retirement.
spk_0
Cost could be 15 to 25,000 dollars.
spk_0
How do I convince them that taking out a home equity loan on a home?
spk_0
I don't think it's paid off yet.
spk_0
Is a horrible idea when interest rates will be 8% or higher?
spk_0
I don't know what their situation is with their investments
spk_0
and how they have things invested.
spk_0
But if you are in stocks, you have had a pretty good couple of years
spk_0
being retired at 77 and 75.
spk_0
I'm sure my parents are more conservative with their money,
spk_0
but they still have to be making some money, right?
spk_0
I feel like taking the money out of their retirement
spk_0
would still be a much better idea in the long run than a home equity loan.
spk_0
How do I show them that doing this is a bad idea?
spk_0
Dad is retired post-hol with a pension, social security,
spk_0
and he moved his TSP to a private company.
spk_0
Mom's retirement income is fairly negligible.
spk_0
Thanks.
spk_0
Yeah, I'm not sure if this specific details matter here as much,
spk_0
because I think what we want to talk about is sort of the relational dynamic
spk_0
that comes with financial advice and other people.
spk_0
Yes, especially your parents.
spk_0
I think every time you're trying to convince friends and family members
spk_0
to make more prudent financial decisions,
spk_0
that is often a recipe for relational dysfunction.
spk_0
Typically, inserting yourself into that scenario
spk_0
when it's not been asked for leads to hurt feelings, right?
spk_0
And so if they come to you and they sincerely ask you for your advice,
spk_0
well, I would be willing to offer my non-judgmental input,
spk_0
but most folks don't love unsolicited advice.
spk_0
They don't like for you to come and tell them what you think they should do.
spk_0
And so if you really feel the need to intervene,
spk_0
I guess maybe the best way to go would be to ask a question
spk_0
instead of telling them what you would do or worse what you think they should do,
spk_0
but maybe ask a question like, hey, tell me more about this HAC install.
spk_0
And tell me more about how you're financing it.
spk_0
Or I don't know, but maybe curiosity instead of judgment
spk_0
and trying to convince them that they should take your advice and not go their own way.
spk_0
So just immediately bringing down the hammer.
spk_0
Be inquisitive. I totally agree.
spk_0
And it's not like that your folks are looking to take out a payday loan, right?
spk_0
Or they're not looking to send money to a scammer overseas or something like that.
spk_0
If that was the case, I would say, hey, you probably do need to seriously intervene in that instance.
spk_0
But taking out a HELOC versus taking money out of the retirement,
spk_0
it might not be a bad call.
spk_0
It sounds like this expenses a need, not a want.
spk_0
So I don't think I would fault them for replacing that old unit
spk_0
and upgrading to a full-fledged HVAC system while they're at it.
spk_0
And it sounds like nobody here has an idea of what their cash situation looks like.
spk_0
But I think there's a good chance that I would use some investment dollars at that point in my life for an expense like this.
spk_0
But it's also not a clear cut situation.
spk_0
Maybe they are in a cash flow tight sort of situation.
spk_0
They've got things figured out when you take into account the pension, social security.
spk_0
And so they're just saying, you know what?
spk_0
We're just going to keep that on autopilot.
spk_0
We can afford the payments.
spk_0
What we don't want to do is draw down on any retirement funds unnecessarily.
spk_0
Yeah. Yeah. And yeah, maybe they know things that you don't.
spk_0
And again, this is like you're saying that this is not this egregious financial move where you're like,
spk_0
I have to intervene because they're out of their mind.
spk_0
My mom's like watching QBC day in day out and has packages showing up 10 times a day to the doorstep.
spk_0
It's not a problem along those lines.
spk_0
Whereas a kid who abaging parents, you feel like you really have to intervene.
spk_0
This is one of those things where what's known as the most fully optimized versus not the most fully optimized.
spk_0
And I think they're close enough to where you can let your parents cut them to slack on this and let them do their thing.
spk_0
All right. Let's get to a question from Jordan who says looking to find a cheaper phone plan.
spk_0
My wife is against mint because you can't have a line for wearables like kids GPS watches.
spk_0
Is there a similarly priced service that has that option?
spk_0
And Matt, we are seeing more wearable specific plans, which I like to see.
spk_0
And they're cheaper than cell phone specific plans.
spk_0
I think because the cell phone companies know that you're not going to use as much data on your watch as you would with an actual phone.
spk_0
But before we talk about that, I just want to stream in high-deaf video games.
spk_0
Right on your watch.
spk_0
Right. Exactly.
spk_0
Probably not streaming a show or a movie.
spk_0
Maybe on your watch.
spk_0
Two years you are.
spk_0
Yeah, actually.
spk_0
But there are like device specific plans I wanted to mention.
spk_0
Like the gabwatch, depending on how old your kid is and what you want as far as parental protections.
spk_0
That might be something you look into.
spk_0
The on the gab plans the watch is like typically free, but you pay a higher monthly rate.
spk_0
And the watch, you know, it comes out of the box with those more parent-friendly features.
spk_0
I don't love how expensive it is for what you get.
spk_0
But for some parents and even for us for a time it worked.
spk_0
It can be worth the trade off.
spk_0
So just know that it's, yeah, if you want a traditional like Apple or Android watch,
spk_0
you're going to want to go with one of these new fangled wearable specific plans.
spk_0
But there are also these like tech companies that have made watches specifically for kids.
spk_0
And they have their kind of standalone plans that you can opt for as well.
spk_0
Yeah, it's all in one.
spk_0
It's like an all inclusive resort.
spk_0
You don't have to worry.
spk_0
It's like you can you can stick with your current a cellphone provider or you can go with mint and then operate the wearable outside of that.
spk_0
But if you are looking for something that's kind of that has your cellphone plans you and your wife or kid as well,
spk_0
US mobile.
spk_0
It totally rocks in particular when it comes to the wearable specific plans.
spk_0
$6.50 a month for a smart watch.
spk_0
That's if you if you pay all at once, if you pay annually, that is my opinion.
spk_0
That's a pretty great rate.
spk_0
When it comes to the actual device, I would suggest going used.
spk_0
Certainly make sure to get the GPS get the cellular cellular model of like an Apple watch for instance,
spk_0
some of those Apple watches are GPS only in the plus cellular models cost more.
spk_0
But that's the only way you're going to go to use it standalone.
spk_0
That's right.
spk_0
But US mobile is our current favorite from us folks in the cell phone and in the smart watch space.
spk_0
I was just talking to a friend and I couldn't believe that they're still with AT&T.
spk_0
Dude, like the OG original terrible cell phone provider, they're paying over 70 a month for...
spk_0
Going back to our last question, I'm sure you didn't obliterate him.
spk_0
Did you make a helpful gentle suggestion?
spk_0
I made a very good case as to why US mobile in particular is so awesome.
spk_0
I was just explaining to her the benefits.
spk_0
Specifically, I was telling her the best part is that hey, you can even switch between the different networks.
spk_0
That is what's so great about US mobile.
spk_0
You can stay on AT&T's network.
spk_0
So with US mobile, it's called dark star.
spk_0
So dark star is AT&T.
spk_0
You can go with warp.
spk_0
So that's the Verizon MVNO.
spk_0
That's with US mobile.
spk_0
Or if you want to go with light speed, that's the T-Mobile version that they have.
spk_0
And you can switch in the middle of a month.
spk_0
You can switch whenever you want to say things aren't working out for you.
spk_0
You can be like, oh, okay, you just log online.
spk_0
I literally did this within the first month of trying US mobile because I thought AT&T was going to be the better option.
spk_0
And it wasn't so I hopped over.
spk_0
I'm sorry, I should say.
spk_0
I thought that dark star was going to be the best network.
spk_0
Turns out that it wasn't so I hopped over to warp.
spk_0
And my phone was offline for less than five minutes before it's hopped over.
spk_0
Was recognized by the new network and I was good to go.
spk_0
You can even do like a multi network option to where you pay extra extra data.
spk_0
Let's say you normally go with warp.
spk_0
But then you know, you know that like, oh, when we go off to the cab and the old ones,
spk_0
the only network that works up there is T-Mobile.
spk_0
You can do that too.
spk_0
You can do data add-ons at high speeds with a different network as well.
spk_0
Like the network flexibility with the MDNO specifically with US mobile man.
spk_0
It blows my mind.
spk_0
I think it's just like the best things since sliced bread.
spk_0
That's what's so fascinating now in the space is because some of these in-be-in-no operators
spk_0
because of that flexibility.
spk_0
They're better than the traditional guys that advertise all the time.
spk_0
And it's better.
spk_0
Yeah.
spk_0
And I don't know what kind of like shady deals they got going on in the background where they are allowed to do this.
spk_0
I don't understand how they have been allowed.
spk_0
Why did the big guys agree to it?
spk_0
Right.
spk_0
Why did the big networks agree to this?
spk_0
They've got dirt on them, I think.
spk_0
I think that's...
spk_0
It sure seems like US mobile is going to be able to take over the world with the kind of rates and service that they're offering.
spk_0
Yeah.
spk_0
For sure.
spk_0
I think that's the one-stop shop man.
spk_0
Like that's what I would go.
spk_0
Everybody else is going to be minimum ten bucks a month for wearable plans.
spk_0
A lot of them are closer to 15 a month.
spk_0
So less than half of that at US mobile.
spk_0
All right Matt, let's get back to the beer before we clock out for today.
spk_0
This, we don't actually clock out.
spk_0
But we should have like the punch card.
spk_0
That'd be awesome.
spk_0
Like Flingstone style.
spk_0
Sometimes you still see them in certain establishments.
spk_0
spk_0
Okay, this beer was from Burlington Beer Company.
spk_0
It's called It's Complicated Being Wizard.
spk_0
What were your thoughts on this double IPA?
spk_0
It was pretty tasty.
spk_0
It was bold.
spk_0
It had a certain degree of sweetness going on.
spk_0
Which I was thinking about because you're kind of stopped up.
spk_0
Could you, do you feel like you're able to pick up on all the flavors?
spk_0
I think I probably was missing a step.
spk_0
Was it a little muted?
spk_0
I don't know.
spk_0
Not bringing my A game, my A tasting game.
spk_0
I know when I'm like get a cold or congested.
spk_0
I can't.
spk_0
That's like the first thing to go is I can't taste anything.
spk_0
Yeah.
spk_0
And so food and drink becomes very unattractive to me.
spk_0
I tasted it and I enjoyed it.
spk_0
I just don't know that I fully enjoyed every element of this beer because of it.
spk_0
When it tastes like to you, then I'll let you know what you're missing out on.
spk_0
It tasted like, yeah, semi-sweet double IPA with like a nice rep representative of a Hazy IPA.
spk_0
But nothing spectacular sticking out.
spk_0
No notes that I can cling to where I was like, oh man, this was unique in this way.
spk_0
Okay.
spk_0
Maybe a little pineappley vibe if I was going to pick.
spk_0
I think you got most of it.
spk_0
How I would describe it as well.
spk_0
They don't claim to be Hazy, but it poured a little bit Hazy,
spk_0
but it didn't have like those sharp, hoppy notes that you get with some of the best New England Hazies out there.
spk_0
So it's drink like halfway between just a regular Hazy IPA and more of a traditional American bubble.
spk_0
Yeah.
spk_0
But I'm certainly glad though that we got to share one of these today, buddy.
spk_0
And that's going to be it for this Ask How To Money episode.
spk_0
You can find our show notes up on the website.
spk_0
Some of the different resources we mentioned during this episode.
spk_0
Like you mentioned, the golden rules of credit earlier on.
spk_0
We'll link to that.
spk_0
We'll link to the financial samurai engineering your own, your own layoff.
spk_0
You can find all that up in our show notes, but that'll be it.
spk_0
So until next time, best friends out.
spk_0
Best friends out.
spk_0
I'm Jonathan Goldstein, and on the new season of Heavyweight.
spk_0
And so I pointed the gun at him and said this isn't a joke.
spk_0
A man who robbed a bank when he was 14 years old.
spk_0
And a centenarian rediscoveres a love lost 80 years ago.
spk_0
How can a 101 year old woman fall in love again?
spk_0
Listen to Heavyweight on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
spk_0
Introducing IVF Disrupted, the Kind Body Story.
spk_0
A podcast about a company that promised to revolutionize fertility care.
spk_0
It grew like a tech startup.
spk_0
While Kind Body did help women start families, it also left behind a stream of disillusioned and angry patients.
spk_0
You think you're finally like in the right hands? You're just not.
spk_0
Listen to IVF Disrupted, the Kind Body Story.
spk_0
On the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
spk_0
In the 1980s, modeling wasn't just a dream. It was a battlefield.
spk_0
It's a freaking war zone. These people are animals.
spk_0
The Model Wars podcast peels back the glossy cover and reveals a high stakes game where survival met more than beauty.
spk_0
Hosted by me, Vanessa Grigoriades, this is the untold story of an industry built on ruthless ambition.
spk_0
Listen to Model Wars on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.
spk_0
This is an iHeart Podcast.
Topics Covered
I Heart Podcast
podcasting for business
Heavyweight podcast
IVF Disrupted
Kind Body Story
How To Money podcast
credit card interest
home renovation financing
solar panels retirement
thrift store shopping
Halloween costumes thrift store
affordable kids clothing
pre-teen fashion
Bootcut jeans
money questions podcast