20 Episode results for "Bureau Of Labor Statistics"
Jobs Friday: Reversal In The Recovery
"N. p. r. Have heaven stacey in cardiff here. This is indicator from planet money. Today is the first jobs friday of the year but unfortunately we are going to have to refrain from blasting the traditional. Celebratory jobs. Friday air horn because we did not get good news. This morning. there was no good news this morning. Note the bureau of labor statistics released the jobs report for the month of december. And it showed that the economy lost one hundred forty thousand jobs and this was the first month since last april that the economy has lost jobs. Which means that. The labor market's recovery. Which was already slowing down has actually gone into reverse because of the covid resurgence throughout the country. Now not every. Part of the labor market has been equally damaged and not every worker has been equally affected and so for today's show. We have scoured through the details of the jobs report. And we are going to give you are three. Big takeaways from the report are takeaways. Not just for what happened last month but for all of last year a year in which the economy lost more than nine million jobs making twenty twenty the single worst year of job losses since world. War two twenty twenty a year that a lot of us would meet prefer not to remember but a year that we will certainly never forget own three takeaways from the jobs report. I when we look back over the last few months more and more people who lost their jobs because of the pandemic are not getting rehired and this has been one of the defining trends of the pandemic. Recently we had all hoped that after the massive number of layoffs at the very beginning of the pandemic those first couple of months that employers would be able to rehire a lot of their workers as the economy recovered and at first. That is what happened. That progress obviously stalled out and has gone into reverse back in february before the pandemic really arrived in the us. Roughly one million people had been unemployed for more than half a year. Now there are close to four million people who are long term unemployed. And here's another way to look at that out of everyone who is unemployed right now. More than one out of three of them have been unemployed for longer than half a year and this matter so much because the longer somebody is out of work the harder it is for them to get a job again in the future they losing their contacts skills can get rusty they become dejected and businesses might increasingly become reluctant to hire them so unless the labor market improves their job loss increasingly starts to look permanent and that also matters for the rest of the economy because if long-term unemployment keeps rising. That's also just a lot of people who are going to be afraid to spend any money in the economy and that hurts businesses that are still going and the people that work for them as well. Okay so our second takeaway from this jobs. Report is the to understand what's happening in the labor market. You have to look at each economic sector individually because the effects of this pandemic been really uneven across the economy arguably the sector that has suffered the most has been leisure and hospitality. It includes jobs mainly in restaurants and bars and hotels and also jobs in the arts like jobs in the theater and in museums the sector had been recovering. Some of its jobs but in december started losing jobs again because of the pandemic resurgence all across the us since the pandemic started almost one out of every four jobs in leisure and hospitality has been lost. That is up to almost four million jobs and a lot of those jobs like jobs and restaurants and bars that have gone out of business are gone forever which means those workers will have to find new jobs when the economy recovers and understand. How big a deal. This is about it this way. There are almost ten million fewer jobs in the whole economy then before the covid recession forty percent of all those disappearing are counted for just by the laws in this one single sector leisure and hospitality as parts of the economy. That have actually been recovering. We can look at the manufacturing and construction sectors. Both of those sectors are now close to having recovered all of the jobs that initially lost in the early months of the pandemic and maybe just as importantly there are signs that they will keep on growing. Keep on recovering yeah. The construction sector is obviously tied to the housing market and housing market has actually been booming for a couple of reasons. First because mortgage rates are so low and second because there's just so much demand for houses and not many existing houses left that are available to buy which means a builders will have to keep building more houses as for manufacturing. It's doing well because people are buying more stuff more stuff to put in their houses where they're spending so much more time right now. In fact the most recent survey of managers in the manufacturing sector shows that the manufacturing economy has grown for the eighth consecutive month remember jobs in the manufacturing sector had mostly been falling for decades. But right now at least they are going up. That's sector is looking pretty good. And the jobs gained in these sectors recently have obviously not been enough to offset the weakness in the rest of the labor market but that's a silver lining that we still think people should know about. I feel like we need some silver linings right now. Yeah yeah why. Not and finally arthur takway looking back across all twenty twenty. It's just very clear how the labor market's collapse has intensified some of the inequalities that existed going into the covid recession. And we can see this just simply by looking at the different unemployment rates for different groups yes so for example different racial and ethnic groups the unemployment rate throughout the pandemic has climbed more for black and hispanic americans than it has for white americans. The black unemployment rate is close to ten percent right now and for hispanic americans. It is above nine percent. The white unemployment rate is just six percent which is still high but lower than the overall unemployment rate can also look at educational status college graduates for example poor much more likely to be able to keep during their jobs from the safety. Their homes with their unemployment rate is just three point. Eight percent really low for high school graduates though get employment rate is more than twice as high and for people who don't have a high school diploma. It's more than two and a half times as high close to ten percent and there is also an incredible data point in this jobs report. That shows us. Just how unequal the labor market is and here. It is so wages actually went up by more than five percent in the past year. And this sounds like great news and in normal times it would be great news. Wages are going up for people but in this case is not as good as it looks at first blush because wage growth only measures the wages of people who still have their jobs and obviously still have wages that can be measured in right now. What high wage growth actually showing is that people with low wages were overwhelmingly more likely to have lost their jobs and therefore lost their wages. And what's especially sad about this right now. Is that right. Before the pandemic the fortunes of all these different groups had been converging inequality seemed to be shrinking in the labor market because the low unemployment numbers the strong labor market had finally started reaching groups. That had been left behind in the past and the pandemic has undone that progress. And it's also just a sign that so long as these inequalities persist these inequalities that have been around for so long time any new recession will likely impose more suffering on those groups that have been left behind traditionally than on everybody else. This absurdity indicator was produced by nick fountain. In fact check by sean saw donya indicators edited by patty hearst and it is a production of npr.
9 AM MARKET MINUTE
"This is a market minute by yahoo. Finance i'm jared liquor in new york. Stock futures are mixed but a reversal from the weeks. Trend is seeing the dow up fifty points while the nasdaq is underwater. Four tenths of a percent. That's as us treasuries are sinking and the tenure yield is popping for basis points. The bureau of labor statistics was expected to release the march inflation figures for producer prices. That report is delayed in transportation boeing recommending that sixteen of its seven. Thirty seven max. Customers deal with an electrical issue. american areas. parking seventeen of the jets. While american is grounding sixteen boeing alerted the faa of the manufacturing issue. Late thursday atop yahoo finance training ticker is naked brand grew up two percent after an investment firm. Tied to crypto. Took a passive stake in the mean stock. Us dollar index is firmer racing thursday's loss as gold and silver give back thursday's gains. Crude oil is off about half a percent just under sixty dollars per barrel overseas. The footsie in london is down about two tenths of a percent while the dax cat forty are slightly greek for more market news and industry insights to yahoo finance dot com. Adp we understand the importance of building the right team and offer the data insights to help just as importantly our ai. Technology helps you pay the team. Accurately grow stronger with adp hr talent time and payroll.
How to Be Young Money Millionaires! (By Age)
"How to be a young money millionaire. It's brian preston. The money guy restoring order to your financial chaos retired investing taxes. You got financial questions. He's got financial answers. It's brian preston. The money guy might not be the best little lane but it is warm up. Nailed it much better. And we're we're gonna do this by as well. We had a lot of practice going into that and and we're super excited because one of the things we hear from you guys over and over and over again is how do i get young folks. Either i am a young person. Or i influence. Young people or have children have grandchildren. How do i get them excited about finances. How do i get them to grab on to this exciting thing so we thought you know what we're going to put together some information that will be valuable for that demographic. This is about a month ago month and a half ago. I was at dinner with another couple and they said look. My teenager has come into some money. They're doing some side jobs. They want to start investing their older siblings telling them bitcoin and read anything into bitcoin people. But i don't know that's your first and so he's like. Do you have a video. You can share and i went back and looked in all of our teenage videos are young investor. You know videos were pre the content. So i felt like we needed to kind of really get people energized but also this is hopefully something you can share with loved ones. This is something. If you're younger person uses to get motivated. But i think this is going to really help a lot of people. Don't know how to get the ball rolling and so what we did is we decided to sort of an anecdote an anecdotal survey. We wanted to do a little study to say. Okay what do young people think about money. What are some young folks views on monday. If you questions we ask them and we ask folks all the way from as young as eleven years old all the way to twenty four years old. So we're kind of like you know because if we asked my kids at three and five. I don't know that they would have gotten it and so we asked a few questions. One of the questions we asked was what are how much is rich. And it was beautiful. Okay so we had a game. We have some of the older for us. Two million dollars is is not going to be a millionaire anyone more. you've got to be a multimillionaire. One of the folks that hey getting a beer with dinner and not worrying about it wasn't loving the eleven year old but you know you go out and you have a drink with your dinner and it's not a big deal and then someone else even taking two to three vacations per year without penny pinching would actually go on vacation so that made a lot of sense to us and then we another question we said are. How much money do you need to retire. Obviously you guys are far away from retirement. How much well. Someone said eight times your salary by the age of sixty that they probably have a multiplier on there a lot better right. Someone's at one hundred thousand dollars per year. I guess they were saying. You know. If i if i could somehow generate that we another person we asked at four hundred fifty thousand dollars really interesting they nailed that number and then maybe have a pension one of our team members. Children here said a million dollars. That's how much if you have a million dollars in you can retire and so then we asked a few questions said okay. Well how do you become rich. How one go about becoming wealthy and we had passive income was a solution. That person's obviously been looking at youtube videos someone that asset allocation. That was the teacher's pet. Just trying to come up with something that sound good this next one become tiktok famous tiktok i do know i embarrassed myself in the content main. 'cause that's not even available in the united states anymore pre pandemic shows how i keep up with social apps then the other social. How do you become rich was save and put money in the bank. And that's actually pretty intuitive. That's a really good answer. And then the last question we asked is okay. What sort of jobs. To rich people have what vocations they pursue and the answers were engineers. Which i like influencers. Who i'm guessing is the same person that mentioned being tiktok famous. So what's a business and finance is not bad and then one person said the owner of amazon and that certainly could be accurate assessment. So here's what i'm starting to be curious about is just hit me. You go to the bureau of labor statistics. It's the government documents you can go pull down. All the data occupations is influencers officially on the list for the we need to gio v. c of influence or is is now official title. Because you heard that come up often and it is interesting that we live in toms that you can actually make a living being content creator and influence or let's talk about. Why is this actually important. Why is this concept of making sure. Young folks actually have good financial skills. I think one of the very first reasons is we are huge fans of the millionaire next door and one of the things that they talk about in the millionaire next door. is this idea of economic outpatient. Care what i think is so beautiful and you'll define in a second. Is they talk about it. From both sides both the person receiving it as well as the person giving it but perhaps we ought to define what is economic outpatient care. Well it's really so they don't need it and you don't give it. It's really what you hoping because this failure to launch is a real thing where there's more and more statistics out there that show that adult children are having a hard time going out on their own and if you can get them in the habit of saving early enough i think that that actually will instill some habits that creates success but it also will help you in your own financial independence journey if you're an older if your parent or grandparent. Because the less you have to give. Because they're self sufficient the more you'll have for your own retirement savings if you are a young person out there. Perhaps one of the things you want to do is actually leave the nest. You don't wanna have to depend on mom and dad to be the allowing you to reach all of your financial dreams so if you can understand how to build wealth outside of receiving it from family from mom and dad. Then you're probably going to set yourself up. The experience share that i switched majors in college so when have to live parents basement. That was because i had friends in college. I wanted to ensure one percent that. I'd have a job when i graduate so we could all live in atlanta together and because that was the plan we all talked about. And with my first major which was finance. I was scared. I was going to be stuck at a sales job. That'd be laid off within three months. Because i didn't have any wealthy relatives or family or anybody else so i chose accounting because everybody who graduated with an accounting degree from the university of georgia pretty much had joined up before they graduated so i was going the path that ensured hanging out with friends not living in the parents basement so the way we thought we would approach this this break into sort of three age segments right. We're gonna go zero to thirteen how you should talk to her. Think about finances and we should focus on their. We're gonna go from fourteen to twenty four and were go from twenty five to thirty five those sort of the three brackets and so the best place usually to start is at the beginning. Yeah let's go. Let's talk about the zero to thirteen year. Olds this is what i'm hopeful. Is that your motivating in creating the next generation of financial mutants a lot. And here's what. I'm hoping goes into that. The first thing i think is a parent or as a young person. You're hopefully building. The skill set is what is the value of a dollar. You know it's funny. When i talked to my daughter's again my kids are very very young. And what i find so interesting is they prefer change like they prefer like so. I can offer my daughter's like a five dollar bill or too shiny quarters and you know what my daughters are going to. They're going to pick the to shiny quarters. I think that when we're young that's kind of the way that we view the world. It's not until we actually do begin to understand. The value of the dollar. The value of the money then begins to start clicking. Make sense for us. This sounds like manipulation of young folks. I mean i used to pick up my poor little brother because he was five years younger than me. I always want to sit in the front seat with him in the back seat. But i'd say i won't the back seat and i knew of i said i want the bags he would run to the backseat and jump in the sounds like you trick your your daughter's the same way with the to shiny quarters versus the value but here. But here's the part. I i think the teachable moments. I'm trying to help you teach needs versus. There's some exercises. You can do to actually start in stealing this so they do develop that value of a dollar. I know we go to restaurants. It's no look. There's there's two things i if they're on the kids menu. If it comes with a drink. I expect you as a tightwad. You probably will take the free of course free drive. It's not free on the kids meal. make them. don't let them get the drink. I mean go ahead. And the scarcity sharpens the blade of building the ability to defer gratification. Take a little bit of today for that. Great big beautiful tomorrow. So that's actually a great teachable moment because then you can also explain that two dollars a nine on since there's an opportunity cost if you spend that money now and that drink versus what it should be are also just share with your kids. Look i have a common things yoga thing. This is horrible. Just because can't afford style love twenties when i was growing up. If we ever went to a fast food restaurant it was a big deal to get a coke or sprite and now recognized. It was a big deal. I don't want my kids to lose sight of that and you say oh it's a given. Oh an extra two dollars extra a given. I want them to know that there's just like you said there's an opportunity cost making that choice to spend that extra amount of money every now and then we're also in like a dollar store or five and below where the all the goods and they're pretty affordable and. I think the for a lot of parents is is let your kids get what you won't be happy. I turned into another discipline exercise. Where i'll say. Hey pick out the one thing you really want two or three things. Pick one thing and look. I know it's slightly painful but then the day you're helping them hone those skills of discipline and being able to figure out what's a need versus a want and working through these the critical skills that you're going to need in life because that's what you're really trying to work to make sure that decision matrix in their head is leading them on the right path. Now so what are the things that i do. My daughters are super young. Five three and so even trying to discern between like needs and wants is difficult because obviously me and mom of provide for all of their needs and so pretty much everything they desire is really a want so one of the things that we did as my daughter recently lost her first tooth and so two theory broader samawa super super exciting and one of the things. I wanted her to get like very early. On is whenever we get money no matter if we working for the whatever. They're sort of three categories. We have to think about it how to do that. And this is actually a picture of her with her with her dollars. And so what i wanted to wanted. Wanted to walk her through whenever we have financial resources. There's a giving component that we ought to think about no gratefulness for like how we got it and what we should do with that. There's a saving component. How any to think about the future and there's a spinning opponent. So what i'll actually do is out for her broker dollar into change and i let her pick and choose. Okay how do you want. Get into the give side. She has a little piggy bank with three compartments. How much goes into the give. How much goes on to say how much goes in the spin. And then whatever's in the spin we can go to the five below the dollar four quarters not just to because she liked the tucson probably gave her four quarters. Probably i do love the decision matrix of give save spend simple enough mid also is kind of it when you start thinking about how you need to break up your financial decisions. That's great footwork to kind of making a long-term great decisions we've also talked about the marshmallow test. Yup this is one of those things where you can ask your children and you have some experience share on this tubo where you you said that. Two daughters barrett's your oldest. You are able to offer her jelly bean. Tell tell that story. So what i did is i was put down one night and i said hey baby. I've got this jelly bean right here on your nightstand in the morning. When you come see daddy if you bring me this jelly bean back and you don't eat it. I'll give you two jelly beans. While the next morning woke up. She came downstairs holding it out in front of her saying daddy daddy daddy. She was ready to cash in her jelly bean. I have another daughter. That's a little bit younger. I have not tried it with her. Because i know to you. I said baylor i have a judge soon as i got jelly bean have already eaten it and she'd be looking for the next one i just know that they're wired differently like that. But it's interesting my daughter. I'm recognizing if there is like this savers gene think about i think my oldest might have that savers gene. She might get deferred gratification. I be an opportune. The wonderful world of financing her future. We'll see what happens. I think it's always a numbers person. And i've told you guys when i was younger one of the highlights for me was in high school. I had that teacher that taught me that. If i could just start saving a little bit right now at have an awesome amount of money. I'd be a millionaire in retirement. We've decided we talk about the army of dollar bills. We talk about it when you're twenty years old. It's worth every dollars worth eighty dollars. We expanded upon that. And let's talk about what we've done for people who are zero to thirty hours. We thought this is so power. Because it's really cool for one dollar to turn into eighty-eight but what we said is what happens if you start at zero and again we said let's just assume a flat ten percent rate of return. We didn't want to be too too aggressive with it. But if it's cool for one dollar at age twenty two turn into eighty-eight it is way cooler for a newborn someone just starting out their life. Every dollar that gets put away on their behalf. Kim turn into six hundred and forty seven dollars by the time they get to sixty five. I think okay if you're a parent or grandparent. When you see a stat like that. I want you to ask yourself before you give that little poised. Now look give them give him a stuffed animal. Maybe instead of one stuff. Dan instead of having ten stuffed animals only get one stuffed animal. Because i think most kids play with the boxes more than they actually do that toys. This could show you how powerful even. If something's only ten dollars that could be a tremendously valuable opportunity in the future if that money was put to work for them. So one of the things that we've always had available as we actually have a deliverable on our resource page. If you money guy dot com slash resources will ever deliverable called. How powerful are your dollars or we like to sort of the wealth multiplier we said. Why don't we take that even a step further instead of starting at twenty. Let's go all the way back. And what i think is remarkable. Is that not only can every one dollar that you invest that zero turn into almost six hundred and fifty dollars but if you wanted that newborn to be a millionaire how much would you have to save each month for them to get there. It's about thirteen bucks while thirteen dollars a month to get less than fifty cents a day. Isn't it look if you're an inflation person. Because i have so many people tell me about the time they get to be sixty five. A million dollars won't but you doubled it. The two minutes still just twenty five dollars a month per dollar a day to be a millionaire which is really remarkable. So guys you can see a lot of benefits. The biggest thing is for zero thirteen. The money skill sesa goa create success in the long-term understand the value of every dollar. You can instill that in your children or grandchildren. That's what you're hoping they pick up in that stage of life. Yup let's transition now. I wanna talk about fourteen to twenty four year olds now. That's a big broad group because you're kind of jumping into the upper end of middle school. All the way through graduating college probably into their first jonah. why things. but here's the thing i do know. Fourteen year olds. They're starting to realize how life works a little bit. I know when i was fourteen. I was already thinking about what happened. When i turned sixteen and i was trying to figure out how i could save as much money right so i could turn that Future thousand dollar car. I had input three thousand dollars in it. Really good decision making at the tom. I needed a show like this to show people what money can become. That's really the skill that you're gonna develop for the fourteen to twenty four year olds is what is the opportunity for every dollar that you have and what i think is so interesting. Is you just said a perfect. A fourteen year old can get the idea in their head of. Oh well if i do this. I can have a car at sixteen or sixteen year old can think. Okay how much do. I want to go off to college. Whether a twenty four year old they probably are thinking they need to recognize what the dollars they put away at. Twenty four can become later in life. I think this is a huge huge swath of time. We're getting the basics of finance. Down is so so so important. Well you said this is likely the period of time you make your first investment and to encourage always like you know. What do you do when you're trying to start an engine of a car. You pour a little bit into the carburetor you pour a little bit of fuel in. They're just kind of prime. The pump so i think this is the perfect opportunity. If you're looking for teachable moments with your children or grandchildren are even. This is something guys if you're a youngster out there watching us sound so old saying it that way. But if you're young person you could easily approach your parents or grandparents and say look how about instituting a matching autograph. Because this is what i've done with my kids i've dollar for dollar matching program Where for my oldest. We use it. For her custodial roth but you could. If he didn't want to worry about the self employment tax following the angle tax return to do that. Custodial roth account you can do this. With just a normal custodial account or you could even do this. If you're trying to save for college with a five twenty nine plan but all i know is is try to create something that really encourages greases the skid to start the habit of becoming addicted to saving and investing money. Another thing that i think is so important that happens the stage and i feel like we as an education system. Failed this a little bit. Because i know when i was coming through primary school. I never learned about like budgeting normal finance. But i think if we can help our fourteen to twenty four year olds understand if x comes in you need some number less than ex going out. Very simple budgeting understanding the idea of scarcity idea of deferred gratification. That's a skill set. That is so much more valuable that while the kids are in your house and you have some control you want them to learn that because you said when you got on campus at the university of georgia there were folks lined up well willing to give you a t shirt or a bag of chips to go. Sign up for a credit card. A credit card. Frankly is the anti budgeting mechanism. You don't need to worry about what's coming out because that bad boy just keeps on swiping. Well i think this is the stage. Not only. Is it your first investments but you kind of alluded to this boat. If you're gonna have a budget. That is a great skeleton system of how much money's coming in how much is going out and we all know the older. You get the more complicated i mean. I've shared the store. And it's probably been a while since i've expressed what go kart. Math is when i was younger. I wanted a go-cart knew. My dad made like thirty five thousand dollars a year that the go kart was five hundred dollars i was like mafia can afford so many go-carts why i have one i just want was that is what i call young person go kart math i've kinda coined it because i wanted to go kart what i've learned as i've gotten older there's a lot of things pullin at your back pocket as an adult so you might as well go ahead and start passing on those lessons to young people especially as they get that first job they start working because they're going to quickly learn that there's this thing called uncle sam who codes himself under the word you so you can put your social security medicare and this is also the part where i maybe. This is the accountant in me. I love the thought of budgeting and the fact that if you start with budgeting at a young age you'll learn that wealth creation consists of either. You have to make more money or yet to spend less in power of a good reconciliation of what you're trying to do is so powerful and that's why this could lead to the first bank account you know because it's not only investing you're trying to encourage it's also good management of your cash or investments. All this stuff is kind of working together now. I get myself in trouble again. I have young daughters and oftentimes and my wife. And i'll go out on a date or something. We'll have babysitters come in. And i'm always amazed by the babysitter. So i'm like hey i'd like to pay you like oh can you. Just give me cash the check. I don't have a checking again. And i'm like really you're travel like bite my tongue because i don't want to step on their toes but i'm thinking man. I remember the first time. I got to go with my parents and go open up that first savings account like it was a big deal and that was like in high school that was in these formative years and i can't imagine like getting all the way through high school high school and not having that experience it would probably feel overwhelming. And you feel lost. So i'm glad that my parents decided to curate that experience for me a serious question here. How many of them is vim. Oh yeah a lot. I would figure because here's the thing. We live in downtown franklin. Which is just south of nashville tennessee. So being that we're connected to nashville. There's a lot of people trying to get famous. Have great musical skills. So we have people in downtown. Franklin time playing the violin playing guitar you know doing things. I've i've found it quite interesting now. Outside of their tar. They've got open instead of you throwing a few bucks in. They'll typically have a scan for your vindman. Oh where you been where you can take. Your phone am ben modem. It's really a brilliant talking about greasing the skids of making it easy to tip you. Just take your phone over there. Qr code it. and you're set it. The i briefly touched on this. I want to go a little deeper on how you can actually make this practical. You're probably trying to figure out. Do i do a normal custodial account. Or do i do a custodial roth account assuming you're under eighteen years of age and here's the part i need you to ask yourself do you want to. I love the value of tax free growth. Because both we're gonna share some numbers that are mind blowing on. What the opportunity for every dollar to become if you will put an invest it for the future What what. I find interesting though is that there are a few hoops. You have to jump to if you want to get that tax free growth first of all to open up a any type of ira. You have to have earned income wages self employment income so that means you're either working someplace or you're doing a side gig that you can follow self-employment like babysitting cutting grass. No problem brian. I got it covered my daughter. I have her do some chores around. The house. And i gave her forty bucks. She got earned income earned income. But now if you're matching dollar for dollar she could say that's eight hundred dollars worth of income. The problem is you still go to file a tax return because you have to tell our favorite taxing uncle uncle sam to follow tax return with the irs reporting that income. You also going to have to pay in. You probably will likely will not have to pay income taxes. Because it's just such a low number. It'll be covered. It'll be okay but you will have to pay no matter how low the number is you ought to pay self employment tax which is fifteen point three percent because you pay both the employer as well as you know the the the individual now gonna w. two because i worked fast food all through high school. You know so. That's only seven point. Four percent and i got a w. two but i just wanna make sure people were aware of the difference. Between a normal custodial account doesn't have all that is just income taxes you just have to set it up. Set up the beneficiary But then the custodial roth is going to require because it's a our ray structure earned income in those other compliance requirements. But maybe someone who did not have access or exposed that one of the things that i remember so fondly and i think i had. I had an unfair advantage. Because i was studying financial. Planning the university of georgia study financial. Planning in a remember. I took my very first investments course and i learned about stocks and bonds. All stuff. And i was like i can do this. I mean i've got. I've got a bank account. I've got a checking account. Why don't open an investment account. And i think a lot of folks in this fourteen to twenty four. This is probably the stage where they might open their very first investment account. Ever even if it's not like some that mom and dad helped him do custodial roth. This is the first time they're seeing a 401k. For the first time or they heard one of their dad's friends a gofundme. This might be the stage where they do that for the very first time. Well i and this is easy. I want some priorities and some things to think about. If you do have wage income this gets real easy. Do the roth. Ira that's the scariest place you ought to start. And then if you're looking at when where and how to make that happen because you guys like that's great in theory but what's actually the steps. There's so many new technologies created opportunities. Just think about the fact that you can use fidelity investments has a bunch of zero investment options every no minimums on open the account no commissions zero minimums on the investment choices. Zero costs on the internal pence's of these funds their index funds so super cheap. There's also acorn there's robinhood tons of there's lots of apps. There's lots of opportunities to open that. I investment account. Then you're asking yourself. What do i invest in this. Is that question that i had. Somebody asked me dinner one night and because the older sibling was trying to suggest bitcoin. And i have no. I'm not gonna give an opinion here on bitcoin. But i do think it's interesting because you've made the example of individual stocks. I think it's much easier if you think about the fact that you won't to invest give yourself the most highest likelihood of success. And that's index investments. It is so much easier to buy a basket of holdings because that's what an index is instead of you going out there and buying five hundred individual holdings for the s. and p. five hundred or a thousand holdings it feels like a total market index. You could do that by banking one purchase into an index target retirement on an even offers you some asset allocation there as you get older so it's a set it forget it you'll have to come up with two things. How much money can i save. When do i need the money. The investment will do the rest of it. I think a sign of success. Here's if the young person that you're talking to or interacting with her. Maybe if you are a young person the thing that we don't want you to get addicted to is the investing is like the picking things. It's the pudding the money to work. If you can get addicted to putting your dollars to work your savings rate is going to be exponentially more important than whatever your rate of return is so you should focus on. How can i put away. Not how do. I divvied up what i'm invested so cast a wide net. Yes the biggest thing. I want you to be a fisher of dollars. I've given the analogy a few times recently. Is that. There's a difference between fishing to catch like your life. Depends upon it because your retirement will. That's spreading a wide net. If you knew you had to fish for a living you're going to put a net in the water and that's what index investing is and. That's what the index target retirement funds will do. If you were fishing for a living with just a spear gun. You might get lucky if you hit the big one. If you're a cab and get the great white whitewell but the problem is most people. Don't do that so yeah you might go hungry so you hear all your friends talking about how much you're making a bitcoin. How much you're making an tesla. Those wells have been caught already. And i'm worried that if you are thinking that's how you're going to get to your welt right now. You might come up empty so go ahead and like i said fish like your life depends upon it throw a net in the water versus just throwing out there one spirit time because it's just going to be a lot harder and a want bigger risk that you will not reach success. The other thing. I think so important that you have to master at this face. Is you really have to understand debt now. Sure the beautiful part about being young as you've not had a lot of time to get yourself into a debt problem with the exception of student loans. That's the one debt that this age range is to seem a lot. But if you can get yourself or your young person that you're interacting with to understand debt. By the time they get to twenty three twenty four. You're going to set them up for so much success because it's the folks who get out of school and start their first job and start thinking. Oh if i can just afford the monthly payment that means i can afford it. That's not having a healthy understanding of net. That's not recognizing how harmful and disaster sick and beats your long-term financial. I think here's the mistake. The majority of young folks make is that they see debt is this mirage or vaults bridge to get them to the point that they can afford stuff they think. They've hey i deserve. This earned it. I'm going to be with the car and it's okay. I'm gonna just use debt. I can't really afford to pay for this out of my pocket so use debt and yeah i'm not getting save yet but that's okay in a few years making even more money i've got plenty of i'll go. I got plenty of time. I'll go make up what i've already done here. And then but the thing is you. Don't get the tom back. You also are backwards. Mean because you've got your car payments are here and they stay here. You never started investing. You're completely upside down. In starting the habit that becomes financial mutant status. And this is. This is my god on debt. You need to treat debt like it's a chainsaw. And what i mean by that is that chainsaws can be very effective but manner they scary. There's a reason every haunted house has chainsaws with the chains. Taken off of them because they scare the heck out of you every time they read them up. You need to treat debt the exact same way because the problem is it's a very effective tool but if you're using it and you're not scared of it you're using it completely wrong and this is what you're go. I'm telling you you go wake up thirty years old new. Remember this show you about. Why did i get myself and so much credit card debt. Because that's that's the problem. I saw in college especially my junior and senior years. Who autumn up. Here's we're getting credit card debt. And yes their credit limit was only fifteen hundred two thousand dollars but man that was that was when you're paying interest over twenty percent. Fifteen hundred. Two thousand dollars can feel like a lot of repression on usa. Stay away from it and try to be. Make sure that you have more money going into investing than you do. Banking debt payments and. That's go go a long way to help you create success and this is why it's so powerful because you said something a second ago brian. The young folks say oh. I've got plenty of time. I've got i'm i've got plenty of time and while that's true what you need to recognize that plenty of time that you have is the thing that makes your dollar so powerful again if we wanna think about you know for a twenty year old. We know that one dollar turns into eight dollars by the time they turned sixty five well for that fourteen year. Old one dollar turns into a hundred and sixty one dollars but if you just wait ten years you all the way out until age twenty four it drops to fifty one dollars. Turning into fifty is still amazing. Still be so excited about that but you can see that every year that you wait every year further you get closer to retirement. The less powerful those dollars are so the sooner you can figure it out the earlier you can get that train rolling the more momentum. It's going to get stronger. Army of dollar bills are going to be well. I think every financial type in financial concepts and other things. They always use trees as the imagery. I like to think that if you can think about investing you're planning seeds of that great big lava oak giving yourself plenty of time for grow whereas debt. There's a reason we talk about chainsaw as the tool. You're cutting down. It's the shovel you're digging your whole with. Think about those things in those concept guys in this is so powerful to know that every dollar has the potential to be a hundred sixty bucks and even by the way a twenty four year. Old every dollars fifty bucks of fifty times. Multiple is still tremendously valuable. So if you're watching this as a twenty four year old you still have. The world is your oyster. You have it by the tail. You just have to make sure you have a healthy relationship with debt and let your army of dollars start building his young and as early as possible so again. If you wanna know just how powerful your dollars can be. We have a deliverable out on a website. Money guide dot com slash resources. And we actually show you what every dollar from age fourteen to twenty four can turn into but we take it a step further. It's okay if you want to be a millionaire or maybe you want your fourteen year old to be a millionaire. How much would they have to save every month starting from now all the way until they get to retirement at age sixty five for a fourteen year old about fifty two dollars but before he's a million dollars is not going to be worth what it is. If you want them to be a multimillionaire two million dollars let's on their atar. We've even put those numbers on the deliverable as well so go grab that resource completely free so money. Guy dot com slash resources. What do you have to lose on that absolutely. So let's talk about twenty five to thirty five year olds. This is my wife. I mean my wife would say probably yes to but my daughter for sure would say hey is her favorite musical and there's a song that don't throw away your shot. I'm not gonna throw away my show our the little wayne. There was no way. I was going to go again. Because i didn't want to go back to the well when i'm just not feeling it today but it there is something to be said about the opportunity of youth. And that's what i want. People to understand is that you have a tremendous opportunity if you're under forty years of age to let the primary driver of your success financially to not be. How smart your with the decision. Making but the multiplier effect of your money just growing over tom compound in growth can be tremendously valuable to you. What i think is so amazing bras. We in our day jobs. We get help. Successful people continue with their success. Make good financial decisions and it's always so interesting. We never have that person say to us. You know what guys i wish. I wouldn't have figured out sound financial management so badly. I wish that i just wouldn't have been so good. I wish i would have squandered my twenties and thirties a little. That's not what we're here. The thing was here's man. I wish i would've figured this out. Ten years ago. I wish i would start at the beginning of my clearest so many people post on our comments you guys can probably quickly find it. Say and where were you guys when i was in my twenties. Where were you guys. When i was in my thirties. We're here for you right now. This is where we're leveraging technology to create you the next step a lot of your probably like gosh if i just had an instruction manual what to do my very next dollar because i just don't know what to do because it feels like everybody out. There is pushing products. They feel like they wanna get my wallet. That's where the money got show comes. It is because we want you to come learn apply and grow. We don't ask anything of you until you're so successful that you might need our professional services. So that's why we did create the financial order of operations. This is non steps on what to do with everydollar and guess what this is completely free. Go to money dot com slash resources. Youtube can download this free deliverable on what the first non steps a financial order of operations are and if you get yourself in a situation where you're starting to make money just seeing what the steps are isn't enough for you. We have a step by step guide through a course that you can buy any let you go. We'll give you nudges. We'll give you coaching. We'll give you worksheets. All of this will help you so that you don't feel like you are thrown way. You're shot you're not having to you know. Try to trial and error and make mistakes and then screw something up just because you didn't know what to do with the very next hour earned who Brian i i worked at chili's right and did pretty good. I waited tables and it worked out really well. But then i got my very first job and i had a salary and i remember and i was like man. I went from making like a hundred dollars on a weekend. Night was just like live and their was. Have this salary. Now i remember. I got my first paycheck. And i was just like bridge. I could make twenty five dollars in athens last me for a whole month. Now i have hundreds and thousands of dollars it. Hundreds of thousands of dollars had hundreds or thousands of dollars. Wanna make sure clarify then. I was like well. I was your first job. So i don't remember pay them. Uh oh yeah. That's hilarious when i need so great those if you are that person and you just starting out. You're getting out of college or you know someone who's just starting out. They just got their first job. The financial operations. It should be a gift that you give to them. Send them a link. Let them see because rather than having them bumble their way through and make mistakes and have to figure. Oh where did i go sideways. This is going to be the roadmap that lets them. Get it right from the very beginning. Let them learn from har and all of the other folks around us mistakes so that they don't have to make the same mistakes they became. So let's jump into a few of those first steps. I mean the the first thing is like step. One is deductibles covered. I want you to have enough money to get through if something bad happen. You don't that's getting a few thousand dollars saved up before you do anything else just so you don't get derailed before you even get started. The second thing is obviously take advantage of that free money from your employer employer match but then here's the number three god avoid that high interest. We're talking about the credit cards. We're talking about the store credit cards. We're talking about going getting getting ahead of yourself on this student. Loan debt where you don't know whether you should be paying it down and you should be investing we cover all that stuff so you have a healthy relationship with debt and let's not forget the car loans. Because here's the other part. I think and we'll give you some guidance on this. We have a whole rule about auto debt. Which is twenty three eight. We want you first of all. You're not buying luxury brands. That's the first thing i want you to know. I'm looking for reliable transportation if it's used it's even better because we know cars sink like a rock and water under appreciation. So you're gonna put twenty percent down. You don't finance for more than three years. And it's no more than eight percent of your gross income but also understand you need to ensure you're investing your army of dollar bills meaning. You're putting more money a month into your investments. Then your car payment. That is the only way you're going to have a healthy relationship with debt when it gets time to buy the first house. You don't want your housing expenses or this could be your apartment to you. Don't want your housing expenses really exceeding twenty five percent of your gross income if you live in a coastal city. Either west coast east coast. You'll hear that number you'll laugh rows if you have to go up to thirty five percent that's okay but you're going to have to make up the money somewhere else. Who once again. You're ensuring that your army of dollar bills are being respected and you're investing a healthy amount. Each month the benefit of this age range is that like in my example. I was able to live really really cheap when i was just finishing up college. Well just because. I had the salary now and i had more money did me that. I had to increase my lifestyle. One of the things you ought to focus on in this decade is figuring out yes after you work through the financial operations after you make sure you knock all steps one two three four. Then you start thinking okay. I've got to start putting my dollars to work for me. I've got to start working towards that goal of saving twenty twenty five percent and this is a mindset shift that i see a lot of people miss. It's okay great at the end of the month. I'll just see what's leftover does that. I'll save that. Well i know in my personal life. When i used to wait so the end of the month that money would just find a way to disappear. It would always be zero the end of the month so one of the things that i learned is i had to pay myself i. I haven't seen sofa priority. Make myself a priority. And i want him an army of dollar bills to get the attention they needed so i set it up just like paying my ribs or just like paying utility bills. I had savings happening on the front end. That was how was able to get addicted to saving early on to do that. Hard work in my twenties. There was sort of new and foreign to me that i had not been doing in college and remember. The goal is twenty to twenty five percent of your gross income. You can include your employer match if you're less than one hundred thousand is a single individual two hundred thousand as a as a married couple but the other part i just want people to understand is i know that's aspirational especially when you're in your twenties but really work hard to get a twenty twenty five percent. You're you're older self will give you big bear hug. Maybe even a sloppy kiss on the chat on the cheek because they'll be so excited with tears because that are down the their face because it is such a just joyous moment if you can put the hard work in while you're young you get the dividends later and i. i don't know how else to say the priority of pay yourself. I is just paramount to your long term financial success. Those dividends are substantial again. If we want to talk about how powerful your dollar bills can be for a twenty five year old every dollar that they put the work and turned into forty four dollars and even though at thirty five the number drops even at thirty five. If maybe a little late maybe you made some of those mistakes in your twenties. But you're just now getting after even at thirty five every dollar that you invest in. Turn over thirteen times by the time you to retirement. This is the part of your life or your money has the most juice so if you can make that hard decision to put a little bit of a day just like you said is going to pay dividends and make for a huge exciting tamara. The the thing i think A lot of people are also at this stage. Because it's still. I think we're gonna have. Some people is their first investment. They're saying where i'll put it. I still like the index target retirement lawns. Because all you have to do choose what you know how much you can save each month or per year and then wing you it. And then they're going to do everything else for you because you choose the year that you need it like a twenty fifty five twenty sixty something like that and then it's going to get more more conservative is gonna be very aggressive in the beginning more and more conservative as older and it just makes it easy where he can focus on the behavior of getting that army of dollar bills working for you versus hyper focusing on all the different investment choices. If you want tool that you can use to help you navigate this. Well go out to our website. Money guy dot com slash resources and you can see what the wealth multiplier is for every dollar from age. Twenty five to thirty five. Maybe you're that thirty year old and say you know what i worked hard at. I've got ten thousand dollars saved up. Well what you do. Is you take ten thousand dollars. Multiply times wealth multiplier. That's what you're on track to. By the time you get to sixty five without saving another dollar if you have that question. Okay ought to be a millionaire. What's required to do that. Starting zero we show you on the deliverable. Exactly how much have to save every month to be a millionaire or if you want to take it even a step further we show you how much have to save to be a multi millionaire by the time you get to retirement. Let's bring it all together because we've kind of covered all the different age groups. I want to talk about. What is it. look like if you actually see this on a slot. The power of starting young. Yes so what. I think is really really incredible as if you look at again. We're just talking about like monthly savings. Someone starting at zero. They want to be a millionaire by the time they get sixty five to got to save about thirteen dollars a month. Someone at twenty. We've talked about this. They got to save about ninety five dollars a month. The someone who waits until thirty five has to save a little over six hundred dollars a month to get to a million dollars at the time they turn sixty five this visual. We didn't talk about it in the content meeting. but now this makes me that meam. That's out there. With the domino's it starts with a little tiny domino in you push that domino over and it keeps knocking bigger and bigger until you have this huge domino. The this is exactly what the power starting young is is that you can make a decision as small as thirteen dollars a month. Here's what i also think it's interesting pick on financial advisor advice sites. They talk about the effect or something. Because i say it's not the coffees that are that are making you not reach. Financial independence is probably screwing up. Your housing is screwing up your your cars. And how much doing that. But something like this. If you're young enough effect because if you can see if you're saving if you've got as you know a brand new child or you've got a five year old so this is for parents who are thinking about saving our grandparents who thinking about saving for the kiddos. This is powerful. I can tell you what both of my daughters. I thought about weddings. I've thought about this was not for education. This was just thinking about the demands that will be put on me as the father. I started doing. Start off as fifty a month in turn into a hundred a month and now it's up to two hundred a month. I just want to do a little bit to start building. Acids and i gotta tell you now that my daughter's seventeen it's amazing what that money becomes. I mean. it is legitimate money that i know of. I've gotten this when i turned twenty to twenty five. Whatever aged actually we decided we're go releases it will be life changing off of fifty dollars. Time is where it all started so so get excited about that. But i think is so wild and incredible is you guys are financial mutants. And you're like. Hey here i love it a thirteen dollars a month for my brand new grandbaby sounds amazing. Well you know it'd be interesting. I hear you guess talking about the longer that money is invested the better off. It'll be what if. I just wanted to put one lump sum in what if on the day that my child was born on the day that my grandchild was born. I just wanted to write a check and say here's your million dollars. You just can't cash it in so he turned sixty five. What would that look like. Well of course in true money guy. Fashion and true fulltime equivalent. Daniel fashion we put together an illustration to show you what that is. So if you have a newborn and you want them to have a million dollars by the time they get to sixty five you should consider overeating an account and dropping in one thousand five hundred and forty four dollars. Wow that's incredible because that seems that seems digestible. It seems like a reasonable. Especially if you're a grandparent or parent. I could do that. you know. it's kind of like the same. Feeling i had when i was in high school and i heard. Hey if you could save one hundred dollars a month you'll be a millionaire. I could do that but there's gonna be a lot of parents and grandparents. I can make that commitment now. I don't have this fully hash to my head brian. But i'll say you know this made me think about remember back when your friends started having babies and all this stuff and they'd be like oh. We're going to have a baby shower which really means. Oh we want you to help us by the things i've thought about like how could it be if there was like on the registers. Like hey you know my kid's future millionaire bucket like i don't know if we wanted to ride dear abby to see if that's good etiquette but i love from mutant perspective. I don't need like the elephant blanket. It's gonna get like spit up on i ten of those already. You don't my kidneys. This they need the very first few soldiers in their army of dollar bills. Now that's so exciting even if you have the fifteen year old and you want to get them excited you say hey you know what it's only gonna take if you wanted to have a million dollars by the time you turn sixty five. Let's do some roth contributions for you two years in a row. It's sixty eight hundred dollars. So why don't you know one year You put in three thousand the next year you put in three thousand. I'll make up the difference or you can do your dollar for dollar match. It gets really really exciting that it doesn't take a lot to get that ball and get that momentum going to really be absolutely life change. I think it's exciting. I mean think about this from a spot check perspective because there's going to be twenty twenty five thirty thirty five year olds watching this. My my seventeen year old daughter has a about half of what that twenty year old that eleven thousand three hundred. Hours in her custodial roth That's really powerful. Because it was built off of twenty dollars here forty dollars fifty dollars a lot of you. Twenty year olds. And you're probably thinking gosh. If i could just maybe that's my goal. I could get this thing to eleven thousand funding to beat eleven thousand. Because you could take maybe only have five thousand saved up but you start stacking in that behavior of one hundred dollars a month. It's going to combat on top of it but my thirty year olds. You're looking at this. Yeah i could come up. I i might be able to have thirty thousand dollars in the thirty five year old. I could come up with fifty thousand arcade saved that. Use this as a spacek. There's multiple uses for the power of starting young. We think that this is the stage age. Where your dollars can just be so so powerful and we want to be that team. That's going to help you make those dollars. Be as powerful as they can be if you want to go to the website go to money. Guide dot com slash resources. We actually have this deliverable hanging out there for you. Have our normal. How powerful your dollars. That shows age twenty all the way out. but now we even have this young money deliverable. We're showing you. What's it like if you start at zero all the way till outrage thirty five. If you have someone in your life is never had their. What was your gym teachers. Mr morrow never borrow moment. Never had their morrow moment you want them to have their money guy moment think about printing this out giving it to them and blowing their mind and get them excited about their financial. Then you too could be a young money millionaire. That was better money got team. I want to tell you go subscribe. Go to youtube. give a subscribe. Also realize we're giving this away gotta money guy dot com slash resources. This is the abundance cycle. I come give you tons of free advice. You w- earn apply grow. You're going to reach a level of success that need a co-pilot that you need somebody to continue on after you're no longer here for your loved ones. We are that resource and you hope you consider bound wealth through the abundant cycle. Go check it out. Money got dot com slash resources. I'm brian preston. Mr bohannon money got team out the money guy. Show is hosted by brian. Preston about wealth. Management is a registered investment advisory firm regulated by the securities and exchange commission in accordance and compliance with the securities laws and regulations abound wealth management does not render or offer to render personalized investment or tax advice through the money guys show the information provided is for informational purposes only and does not constitute financial tax investment or legal advice.
Teacher Shortage Is Adding to the Problems Schools Are Having During the Pandemic
"The radio on your dashes. More than radio that sirius xm button is instant access to a world exclusive entertainment including ad free music channels for every genre and decade. You can also hear your favorite sports comedy talk and news. Plus you can stream with the sirius. Xm app on your phone connected home devices. So grab your phone. Dial pound two five zero and just say sirius. Xm to get twelve months for five dollars a month with a new select subscription call for offer details fees and taxes apply. It's monday december twenty first. I'm oscar ramirez from the daily podcast in los angeles. And this is a reopening america the disruption that the pandemic has caused the education system as ranged from kids. Having to transition to remote learning parents experiencing burnout trying to help their kids learn and balance work life but it has also caused the teacher shortage early retirements and quarantines are forcing some school administrators to recruit parents as substitute teachers increase class sizes and even use bus drivers to babysit classrooms. Arizona in particular has been hit hard by a shortage of teachers and many say that educational achievement has suffered because of it valerie line national reporter at the wall street journal joins us for more. Thanks for joining us valerie. We've been checking in periodically obviously with our teachers as the pandemic continues to go on. We know how big of a disruptor the pandemic has already been to the school system students learning in class students learning at home remotely. It's been quite a mass stopping classes because of rising cases it's all over the place but we're also seeing that there's a big teacher shortage out there and school districts are having to get really. I guess you would say in how to fill some of those seats recruiting parents. Bus drivers to babysit classrooms. There's really this all hands on deck type of mode for a lot of school systems out there right now so valerie. You wrote a pretty comprehensive article about what's going on. Tell us what we're seeing with. This teacher shortage. You really can't overstate the disruption. That's happening in k. Twelve and all education in this country particularly in the public schools. You know it was one in the spring to have brush adrenaline. And we're gonna make virtual learning work and get through the spring. And now the pandemic drags on into its ninth month. You're seeing parents. Frustrated kids not learning as much as they should have by now and teachers really starting to burn out and all the disruption that you're talking about is adding up to a real Difficult working environment for teachers. And you're seeing people leave the profession. You're also seeing commonly in many school districts that are not enough teachers in the building. The whole class with it because they're quarantining. Or what have you so really. The staffing crunch in american schools is something. You can't underestimate back to the teachers. You know the staffing crunch really the teachers at stay behind then. Those are the ones that get really fatigued by the whole thing. They're the ones that get the burn out of the whole thing and a lot of the teachers and administrators. I spoke with say exactly that like it's tough now. It's tough for teachers to have to sell out for another teacher during their planning time. For example the what's really is the burn out factor and whether that teachers will stay in the field or potentially retire early and also one thing to think about is whether what's happening in the school system. Entices young people to go into teaching. They see what's happening firsthand. And will they decide to go that route. See how tough it is for their own teachers that they admire and and in some cases. Really see being overwhelmed. According to the bureau of labor statistics public school employment in november was down eight point seven percent from february. This is the lowest level since two thousand and you guys have a nice little graph showing the progression of employment and just see that sharp drop earlier this year and throughout the pandemic arizona has shown a real stark contrast in. All of this heavily acted by this. I thought that that statistic from the bureau of labor statistics was really eye opening fee thinking about it. Schools have on this nine percent fewer people in the building but the buildings the same size. Their responsibilities are the same if not more and because of physical social distance teachers can have fewer kids in the classroom so in some ways. They're stretch thinner. What really struck me. Visiting schools was how being off having nine percent pure people in the building taxes. The others that are or and to your point about arizona. Yes i think this is happening in pockets. All across the country in arizona certainly is one educated. I talked to including this head of state. Superintendent just said yeah. It's a crisis for us. Let's get a little deeper in arizona. They weren't higher traditionally certified teachers for seventy eight percent of some open positions that they had so they had to get creative. A lot of them. Bill by emergency substitutes. Obviously you get people from other counties student teachers where a big source of Plugging that hole there. And then beyond that are urging parents people with you know. They reduced some of the requirements. So they're people with high school diplomas can take an online course and then be certified emergency substitutes. So they're getting very creative with how to fill a lot of these positions keeping about it they're required to have you know not just legally but morally educators. They want to educate they need to have teachers in the balloons. Virtually or physically. But they're having to get really creative to make that happen so the relaxing around standards is at theme. You hear all over the country iowa and missouri for example lowered their requirements to be an emergency substitute and atlanta. You could be twenty years old and we talked to some kids that were twenty years old and not teachers that physically in the classroom. So i think it's one of those things. Arizona has had is an example of state. That's had a teacher shortage building for a number of years. You know as you might remember the red fred. Protests of two thousand eighteen really started in phoenix and and kind of blossomed out and other places around the country so the teacher shortage comparatively low teacher pay their the really high ratio of students. Teachers were just like twenty. Three and a half students per teacher in arizona compared to sixteen kids per teacher nationally. There's just a lot of pressure point. They're building up. And then the combination of that that wave of teacher shortage building crashing up against the wave of the pandemic. It's really created a tough situation in many many arizona schools. You have a lot of examples in the article. They're all very good. But i wanted to focus a little bit. If you can on principle christine hollingsworth this is in phoenix. And they're having a severe staff shortages. There she was up Until early in the morning trying to find a substitute teacher in many cases she stepped in to help teach classes. Other teachers are combining classes. Tell us a little bit about how they're approaching this. What are the things. That was really amazing. Being around principal holidays work ways. Just how she was wondering what you kept saying. It's all hands on deck. We're figuring out as we go because we have to buy. I should note that just how cheerful how positive she was. How much she loved. Seeing even the small cohort of students that was able to be in the and she was so happy to see them put through their masks. And say hey. I can see your smile under there so i would say that teachers are really in administrators are trying to make the best ever really tough situation but the day that i spent some time with her. She was having a hard time. Finding substitutes there's nationwide pressure on substitute teachers. And they're just not enough of them and she couldn't trying to substitute for our teacher. Even though she'd been trying she was up at four that morning. Trying to find some wine and figure out how she was going to handle it. And i was like we. You guys you were up at four and it's eight school starting. she's like. I'm not before every day and i think that's part of the reality is that that we were talking about earlier is just as this stretches on kind of where we head. It is the new normal for schools. If is constant change every day it has been for nine months. Yeah i mean it's tough. This hollingsworth went onto this elementary school database. To see if she can fill a bunch of these open seats. And i guess. They only got five applicants for dozens of teaching jobs. This is across thirty two different elementary schools. I mean that's just really kind of illustrates how short this thing is and we're talking about other creative options. Sometimes a teacher will come on and say man. This is just not for me anymore. And then they quit within the first couple of weeks or so and that was kind of another recurring theme that a lot of people were experiencing so as just a tough time overall and obviously we need more funding for these programs for the teachers. It's just tough all around really difficult situation for online learning and hybrid learning all around like you said i will Point out that the pressure in schools is more intense in some places than others right so in rural areas for example. Really hard right now to get teachers to fill jobs but in cities where there's good quality of living and you know maybe you know support for teachers in schools you. You might have far more applicants for jobs. It's uneven but i think there's definitely pressure on the teachers supply and many many places nationwide valerie line national reporter at the wall street journal. Thank you very much for joining us. Oh sure thanks so much for having me. I'm oscar ramirez and this has been re opening america. Don't forget today's big news stories. You can check me out on the daily podcast every monday through friday so follow us on iheartradio or wherever you get your podcast. At american public university we believe quality. Education must be more affordable. That's why as a leader in online higher education. We focus on minimizing costs and maximizing return on learner investment and we believe higher education must be more accessible so our online programs start every month american public university within reach without limits. Learn more at american public. You dot com.
Reccession vs Depression
"Welcome to kiss myths and mystery. I'm your host kid. Chrome the economic impact of the corona virus on the. Us economy is almost as big a topic as a consequence of the virus on this population. Unfortunately there is enough disinformation to make either topic fusing in today's podcast. GonNa lay out some numbers and make clear the difference between a recession and depression to understand the immensity of each. We need to look at these numbers. I the population of the United States is approximately three hundred. Twenty nine million. The thirty point two million small businesses in the US comprise about ninety eight percent of all businesses. Fifteen million are self employed and of that number about nine million are unincorporated total employed in the US as of this podcast. Roughly one hundred fifty eight million. A recession is a gradual decline of the economy that occurs over at least six months. Nineteen seventy four. The Commissioner of the Bureau of Labor Statistics gave a more in-depth dictionary definition. This included that there needed to be a one point. Five percent decline in Gross National Product or the total value of all goods and services produced in a given year plus for investment and unemployment needed to reach six percent or higher on the other hand. A depression is an extended. Recession are serious decline in the economy that lasts for a year or more for depression to be in effect. Unemployment rates need to raise to twenty percent or above and there needs to be a significant decline in the gross domestic product or GDP and there are other smaller factors that we will take into consideration at this time is short. A recession is simply a short term economic trough but a depression is a recession on steroids since eighteen fifty four the United States has experienced thirty three recessions but only one depression so depression is a long term recession with twenty percent or above unemployment. Now politicians batted around the number of unemployed like a ping pong ball. Some people think that to get these figures on employment. The government uses the number of people collecting unemployment insurance referred to as you I these benefits under state or federal government programs but some people are still jobless when their benefits run out and many more not eligible all or delay or never apply for benefits so quite clearly you or unemployment. Insurance information cannot be used as a source for complete information on the number of unemployed with shelter in place mandate many states as well as the closing all businesses except grocery stores and pharmacies due to the Corps Corona virus. You can be assured that the number of unemployed is going to soar no doubt the both twenty percent recession or depression. It would seem that with a higher number of unemployed that the economy would be affected consequently in decline and that would leave the deciding factor of recession or depression determined by the GDP which has gone up for the past three years and how long it takes for the unemployed to become employed to the tune of one hundred fifty eight million once again. How our economy will rebound is as unpredictable as a final impact of the corona virus on the population recession or depression. Who who knows but at least now you have some facts and numbers you can rely on. Recession versus depression was produced here of night owl sound studio and brought to you by the Rogue Valley Metaphysical Library and books of Mystery Adventure. Lie on the edge at KIT CRUMB DOT COM and by internationally known PSYCHIC AND MEDIUM SHARON. Bauer author of the book. Life Eternal love immortal. You can get this book at Sharon. Bauer medium DOT com. Wash your hands. Respect social distancing. Stay healthy I'm kid chrome. Thanks for listening.
What The 14.7% Unemployment Rate Means
"Hello and welcome to the fivethirtyeight politics podcast by gambling drew. The Bureau of Labor Statistics released its monthly jobs report for April on Friday. Clarifying some of the data behind what many Americans already knew? The economic toll of the corona virus pandemic has been unprecedented. The unemployment rate jumped to a record. Fourteen point seven percent from a low of three point five percent just two months ago during the seventy years that the country has been tracking the unemployment rate the previous highs and unemployment were around ten percent in nineteen eighty two and two thousand nine the peak unemployment rate during the Great Depression which was before the government trap. These numbers is estimated to be around twenty five percent but as bad as the data may seem likely underestimating the damage so today we're going to dig into the numbers in the jobs report and ask what they can and can't tell us and also try to get a sense of what the future looks like so here with me to do. That is the former commissioner of the Bureau of Labor Statistics from two thousand and thirteen to two thousand seventeen. Eric Grossman. She's currently senior faculty member at the Cornell University School of Industrial and labor relations hierarchy. Thank you for being with US. Gallons pleasure to be here. Also here with us is senior writer at five thirty eight covering the economy. Amelia Thompson Davao. Melia Halen. So we're going to get into the nitty gritty numbers in this jobs report but just to start Erica. What's your initial reaction to today's job report as somebody who spent a career thinking about an employment. Well it's historic. These numbers will go into the history books. It's unprecedented in recent history. And it helps us to understand the magnitude but it's also a good lesson in the fact that when you're talking about a situation like this that's so large and so- unprecedented and affecting such a large market. No one number is ever going to tell you everything you want to know. So the unemployment rate is an important number to look at because it has this long history. It's comparable over time but there's no way that somebody who wants to understand what's going on should stop there. They need to look at a bunch of the other. Tens of thousands of numbers at the be. Ls Put out at the same time. All right and we are going to definitely get into those numbers before we do. Amelia how are you processing this? I know you've been talking to people who have been laid off or furloughed for months now kind of seeing it all come together and this report. What's your reaction? It's still incredibly stunning. Even though in a lot of ways it's confirming what we've already been observing for the past month and a half or so. I mean the numbers of this magnitude are incredible. And you know I think we'll we'll dig into this but as Erica was saying I think part of the report that was scariest to me and sort of most telling about what's happening underneath those top line. Numbers was how widespread the losses are across industries. And how some people are being disproportionately affected on there. Were some pretty significant racial disparities younger people and part time workers are also being hit really hard and it's not that any of those things. I think were cries to people who have been following the economic fallout of the Public Health. Response TO THE CORONA VIRUS PANDEMIC. But the thing about these numbers is even though there are some important sources of uncertainty that. I'm sure we'll unpack in this podcast. It's a really high quality report. I think the folks at at the Bureau of Labor Statistics have been really responding very admirably to a difficult and very fast moving situation that our economic data was not designed to capture. Our data is not designed to capture the economy shutting down. Pretty much overnight. I think it's fair to say that when these reports and these surveys were conceived of. This was not something that anyone expected to happen. And so the fact that even though this data lags a bit. It's her mid April so the situation may have changed. It's still just really really detailed and really high quality and let us get under the surface in a lot of ways that we haven't been able to do with the more preliminary data that's been coming out. Yeah just so listeners. Understand I know. Our listeners are very familiar with us. Talking about surveys. Because we talk about polls all the time on this podcast but you know this is a survey. They've talked to tens of thousands of Americans in order to get a picture of what the economy looks like from workers perspective and employers perspective right. So it's really two surveys. Yes indeed. How many people do they actually talk to in? All this gives us a sense of how big this surveys. So it's two totally different surveys. They ask very different questions because obviously employers can tell you how many people to have on their payrolls but they can't tell you who they don't have on their payrolls right and they can't ask all the demographic answer all the demographic questions in the intention -ality questions that you can ask of the hassles so with the employers. It's the survey. The survey covers. Well over three hundred thousand workplaces every month right and it captures about one third of the jobs in the country every month on the household side. They talked to sixty thousand families every month and that covers about one hundred and twenty thousand working age adults. And they're that survey is much more. Detailed has got all the demographics it covers. People who are out of the labor force people who are unemployed and it goes into a lot of detail about About their situation is and the bill puts them together because these two different perspectives are really important to understanding the labor market? As a whole. You're saying that while the unemployment rate is useful and has a long history so you can compare over time that you have to look at a lot of other numbers in order to actually understand what's going on in the economy today in terms of what struck you by surprise what out to you in looking through today's job report. What worries you or maybe makes you optimistic. So one of the things that I did in the run-up to this report was trying to think really hard about what my fundamental question was and I decided that my question was of the jobs that we had in February how many of them have been ended temporarily permanently and how many of them went to part-time right. And we're basically otherwise disrupted so of that whole number of jobs that we had in February. We know this hammer came down in. How many of those jobs were affected and so they added up actually six different kinds of disruption and. I looked at those and if it comes down to. Is that almost a quarter twenty three point? Four percent of jobs were disrupted in one of these ways or another that includes people who have a job but they were not at work. Those numbers swelled and the BIA less concerned about many of them actually really belonging in the temporary layoff category. But this is how the people answer the question and be less doesn't monkey with that just an unprecedented number of people who answering the question as if they were on something like an unpaid family leave but they're probably not because it just wouldn't of swelled up in this way then you have a huge entry of people into where people working part time for economic reasons. Then you have workers who are officially laid off so you can imagine that very small employer might not actually say to people you are laid off. They might say you're just going on on leave right but larger employer more formal employer than probably notified. The workers that they were on temporary layoff. Those numbers swelled by almost seventeen million so all of those those three categories of workers. They're all maintaining their relationship with their employer in some way or another. And that's something that we can. We can return to right. We can talk about that. Then the other categories I looked at was the increase in an unemployed workers who are not on temporary layoff. And here's the thing that surprised me. This number didn't go up. It went down just by small amount. Five hundred thousand in in the scale of things we're looking at today so you almost nobody who got a pink slip and said okay now. I I've been fired now. Going to look for work. That just didn't happen. What they seem to have done is saying well. I'm not going to be looking for work until this is over. Because we had a huge increase in the number of people who say they're not looking for work recounted his out of the labor force. So if you add all these folks up you end up with over. Twenty three percent of the labor force. Having jobs disrupted and that's not certainly not counting all the people working from home like you and me or many of the people who took pay cuts if some kind to that's right that's something that we can't really see in this employer said we're going to have to pay you eighty percent of your salary through the end of. May or whatever you know. They said this at the beginning of April. They're not going to be counted in this either. What you know in theory that would be counted but the problem is there. Such large compositional changes that it show up so most of the people who lost their jobs are low wage jobs that drives the average wage of the people remaining up. And so you. You can't doesn't register that we've had these pay cuts you're gonNA need much more detailed data to go after that right right. It's sort of hard to Parse this report. Yeah I was also very struck by the fact that there weren't more permanent layoffs in this report I have to say I was expecting to see a spike in that and it was encouraging cautiously encouraging. To me to see that because obviously it's much better for people to maintain a relationship with their employer because in theory. What's different about this recession from other recessions is that there wasn't something fundamentally wrong with the economy we had to stop the economy because if a pandemic and so or were you know slowed down significantly like in theory. Businesses are already starting to reopen in stem states. People should be able to go back to work and you would hope that things would be able to get moving again and people would really want to go out and do the things that are safe to do. And it's just it'll be much much easier for businesses to reopen if they've maintained that relationship with their employees so I think it's encouraging to see that more employers are not just laying people off and saying goodbye. You don't work for me anymore. Good luck that. They're trying to sort of keep a relationship with their employees. Despite everything that's happening the way I would temper my optimism and I'm curious to hear what you think of this Erica. Is You know in the states. That aren't reopening as quickly. And given that the reopening kind of partial and it seems like there are going to be some businesses that are allowed to open. I and others will open much later. I'm in Illinois and there's this whole sort of five step plan for how things will reopen and things are very staggered and so I guess my concern would be that as this goes on. Would some of those relationships either. Bees to more formally severed or would workers just you know. Let's say they work at a restaurant and they just haven't heard from their boss in a long time and they start thinking. Gee I really don't have a job to go back to or do some of these businesses start going under and so that's the sort of. I think the big question mark is kind of like how do those relationships hold up as this persists and how many of those businesses can actually stay afloat but it is really good to see that at least in theory a lot of these people do have jobs to go back to right and so by my count about four. Fifths of these disrupted employment. Relationships maintain the relationship with the employer. So that's really good. I'm totally in agreement with you on that. But the question of how long can that survive? We don't really have you know the data go on with that there. I think you just have to use your common sense in the longer that this goes on the more likely three things will happen. You mentioned two of them. One of them is that the employer goes under. And that's why certainly the idea of the P P P and the feds loans to businesses are to try and keep businesses that otherwise viable businesses alive until they can start up again. The other possibility is that the employees decides to break it off because they can't hold on for so long and they go find something else so. That's a possibility. And then there's the third one that we can only begin to speculate about his. How many business models of these employers have to change which will change their staffing requirements? So although this wasn't about the economy being fundamentally in bad shape we do have long run. Changes that employers are reacting to and they may use this to push further in that direction and we have new things. We've learned and new practices that are going to be in place going. Forward that may change staffing relationships so staffing in nursing homes may change staffing in restaurants. Could well change in and another customer facing jobs. Those may change that could change the needs of employers so all of those things mean. They're probably will be some big structural changes from this. That will be hard to adapt to one more thing. I'M GONNA throw out though. I think that glee is consistent with With the point you made is the the last. Three recessions had almost no use of temporary layoffs by employers to adjust to the recession and we had long jobless recoveries after them all right. This time I'm with you that maintaining these relationships is necessary for a quick rebound. It made up be sufficient but but it is necessary. Yeah is it fair to say? I know that the cares act was enlarge part designed to incentivize employers to keep the relationship with employees. So that they don't have to retrain them do background checks etcetera etcetera etcetera. Is it fair to say that the is act has been a success in that regard? Well I only know what I'm reading in the newspaper about that. It sounds like it's been less of a success than intended. Sounds like it. Maybe wasn't large enough and it by using the mechanisms that they used. The tendency was for larger employers to have more access to it than smaller employers. So I think that that was a problem and I think there's a little bit of an education element there too that employers aren't used to paying people to not work got kind of goes against the grain and maybe a little bit hard for them to do that. And then finally some of the uncertainty about how it's going to be applied in whether or not the money will be grant or alone may make work employers also reluctant to To use it to pay workers for something they get no benefit from because they may have to then pay it back. Yeah another thing. I've heard from business owners. I've talked to is that the time span is also a concern for them. You know this is just something that runs into the summer and I think a lot of people are looking at this and saying we don't know how long this is. GonNa last but we are not going to be reopening in the way that we were before certainly not for the foreseeable future at not possibly ever Sa- does it really make sense for me to bring my staff back in the way that they were before or try to keep paying them you know. Do I think like as you were saying Erica? That point about does the way. Some businesses are run. Change kind of fundamentally response to this business. Owners are grappling with that and that may also have complicated the way that they're able to use the federal assistance or even their willingness to use it and to clarify for folks who aren't familiar the part of the paycheck protection program. Was You get alone? And if you keep your employees employed through a certain date to a certain extent then the loan becomes a grant and so that was kind of how that incentive work I do want to ask though with these really bad numbers that we're talking about and the degree to which employers have maintained relationships with employees in your estimate is the worst of this behind us or is it are we still on the downward trend. Well we have two things that we know of happened. One is that this only carries through mid April and we know that job losses continued at least through the end of April. By the same token we are seeing certainly some states a lightening up on restrictions so those two will kinda counteract each other to some extent how much they will. We don't know but I suspect that the levels of unemployment may not look that different in a month and they are now because we have these two countervailing forces. I mean that's sort of best. Guess right pushing further than that were really getting into the realm of what the virus does what the policy responses to that and so if the epidemiologists who are worried about second and third and continuing waves about this or about are sitting at a very high plateau for a long time are correct and these new levels probably aren't going to be reduced for to buy too much for a while on the other hand if we get our our testing are tracing our treatments and ultimately the vaccine in place pretty effectively than the fact that we we don't have these relationships means we could have a very fairly quick rebound. You mentioned that there's only goes through mid April so we've had another three weeks of potential job losses under our belt at this point if we actually wanted a picture of what the economy what. The labor market looked like. Today what do you think the actual unemployment rate is today so the LS gave us a hint by saying that if they transferred all of these folks who are employed but not on the job the counted them as having been been on temporary layoff then. The unemployment rate would be very close to twenty percent. So that's one measure. The other measure is that the less always produces this thing they call a fondly call you six which is the broader measure of labor market utilization. And although I'm usually fine with just using the unemployment rate because you six sending unemployment rate more more or less together so that gives you the same picture this time because we have so many people who are on temporary layoff and so many people who report themselves as wanting a job who are out of the Labor Force. I think looking at you. Six is particularly useful and US six even without the correction that be less talked about went up to twenty two point eight percent so if we add in that other five percent then we're talking about an unemployment rate under utilization rate of a twenty eight percent. Something like that right. So I think that that's the range that we're talking about under utilization around twenty eight percent unemployment rate about twenty percent. Yeah and I think for me. It is helpful to try to think in ranges right now because there is you know. These numbers are so huge. That even if there's a there's a confidence interval on all of these and the losses are just so huge that even within that confidence interval there's like of actual people the challenge is like we have data that moves fast. We have some data that moves fast and we have some data that is very thorough and provides a clearer picture and this report falls into the very thorough in clearer picture category but not really into the fast category and obviously we've been seeing the weekly initial unemployment claims data. So I think what I've been trying to do is think about like what the ranges are that. This report seems to be telling us how that fits with what this other data is showing us. It's all pretty apocalyptic so I think there is kind of a tendency to just be like. Wow this is really really bad. Does it matter exactly how bad it is but it actually really does matter to know as precisely as we can how bad it is because we need to know who the people are who are being most hurt. When one of the things that really jumped out of this report to me again was the people who just seem to be getting hammered by. This recession are low. Wage workers people who already might have been in part time employment younger workers and You know sort of being able to see that even in this data from mid April is really helpful Yep and I think one other thing we may see is some exit from the Labor forces people with underlying conditions and elderly workers so the one bright area we had had in of recent past in terms of labor force participation was older workers their participation was increasing. And now you may have people say well. You know if I'm going to be at risk of catching the virus from working then maybe I I will retire now and folks who have underlying conditions before That didn't prevent them from working. May Now feel that those conditions do prevent them from doing some cases from doing the jobs that they were doing before. So we're GONNA have that effect to. We've been talking a lot about numbers and I know Amelia. You've been doing a lot of reporting on the ground and while this is a data story it's also a human story are people behind all of these job. Losses what kind of stories are you hearing from people about how this is affecting their lives? I think one of the reasons that I was really interested to look at the demographic information and the information by industry in this report. Sort of like the numbers that are underlying the main headline numbers that everyone sort of usually reads in these reports and then moves on is because the impact has been so disproportionately distributed on groups. That are maybe less able to handle an economic shock of this magnitude. And also it's hit unexpected places so one thing that I have come across a lot of our people who work in various parts of the healthcare industry saying I've lost my job. My hours have been seriously cut at the service. That might seem really counterintuitive because this is a pandemic and the healthcare sector. You shouldn't be affected in the healthcare sector also isn't usually effected in recessions and the issue is that a lot of doctors offices and elective procedures have been basically put on hold and those are what. Bring a lot of money into the healthcare industry And so you know. I think we really saw that in this report that healthcare and then also education especially private education is being hit really hard. And that's certainly something that I've heard you know talking to doctors who are really figuring out how they're going to keep their practices open or dentists and then there's the question of the demographics and who's really being hit and I think I'm repeating a little of what I said before but I just think it's so important to understand that they're always sort of disparities in in the way that recessions and economic shocks hit people but this one the unemployment rate for Hispanic workers was almost twenty percent historically high and the unemployment rate for black workers also higher than for Asian or white workers although it was a little lower than for Hispanic workers and that's a reversal. I mean that's right. Inverse normally the Hispanic unemployment rates have been significantly lower than the rest and now they've shot up to higher. We noticed that last month and the trend has been even starker. This time. It's really dramatic. The other thing is that Asian Americans have usually had a lower than average unemployment rate. And now they've shot up to a little bit higher than unemployment rate for whites which probably reflects their by modal distribution either both on average more highly educated and more people in the low education levels as well yeah well and the other sort of demographic thing that I think is important to point out is that this is also seems to be hitting women harder. the unemployment rate for women hire. And that's also something that we usually don't see in where we haven't seen in recent recessions sort of men have been hurt. I in terms of the job losses and they've had a higher share of job losses. And I think that again is just reflective of the incredibly weird nature of this and it's it's hitting industries that don't usually get hit in economic downturns and industries like healthcare and education have higher shares of women. And so all of these things I think are just are are really important. You know in terms of the challenges that people are facing schools are closed right now. Mothers tend to have a higher share of childcare responsibilities. Anyway women are also being hit harder economically those are really important things to understand and then it's also important because I think there's GonNa be a there already is starting to be a discussion about okay. This is a crisis that is not going to be resolved by the time this aid to employers and employees that Congress passed late March has expired which is happening over the summer. So are we going to continue to support people in some way and understanding who's being hardest hit and the fact that you know. Low wage workers are continuing to really bear a lot of the brunt of the impact of this recession. Yeah I think that Some of the low wage workers have faced a very difficult choice. They can stay out of a job and tab this this loss of income and maybe not be able to claim unemployment insurance benefits or they can go back to a very dangerous job. A job at that wasn't maybe wasn't that dangerous before but has become dangerous and that's a new reality that is very troublesome in one word in strict economic sense. We can hope that that that some part of that will translate into at least higher compensation for those workers who choose to go back because they are accepting a risk that That wasn't there before and and should be compensated. Yeah it sounds like from listening to your comments Erica. That really dissolution year is to get the pandemic under control. And we've talked about this a lot how it is both an economic problem and a public health problem. So you guys aren't public health. Experts won't ask you what the government should be doing from that perspective. We've talked about it. I mean from an economic perspective wrapping up here. What are the questions that the government has to have to answer here about where they intervene at this point if they can intervene shorter getting the pandemic under control? I think there are two things that I think is really important. One is that For a certain amount of time the goal is not stimulus I cringe when people call the cares act. Stimulus Act what it is. Is Life support while we put the economy on a medically induced coma right and so we need good policy for keeping businesses viable and workers able to pay their rent and afford food and all of that during the shutdown period. Then afterwards we will need stimulus package because we have a depressed economy that we want to come back and those those goals are a bit different. You know we. I don't think right now. We need to worry about declining labor force participation right now. We actually want a lot of people staying home and not working. That's the goal. We just need to keep them alive and the businesses alive then when things are under control then we need a good stimulus package and remember that in the Great Depression. Even the huge works projects and new deal projects weren't sufficient to Polis out of the Great Depression. It took World War. Two to do that because we were even those great new deal. Projects were not enough so we are at a Great Depression. Level unemployment rates right. Now we are going to need stimulus efforts once we have the pandemic under control. That are probably going to be much larger than we've ever seen before if we want to get out of the depress state quickly and I think that's that's going to be a big challenge for our economic and our political system aright. That seems like a good place to leave things. So thank you so much for joining us today. I got my pleasure. Thank you for having me Eric. Aggression is the former commissioner of the Bureau of Labor Statistics from two thousand thirteen to two thousand seventeen and she is currently a senior faculty member at the Cornell University School of Industrial and labor relations. And of course thank Amelia Chorus. Amelia Thompson is a senior writer covering the economy. Here at five thirty. My name is Gail Andrew. Tony Child is in the virtual control room. You can get in touch by emailing US. At podcast at five. Thirty eight DOT COM. You can also of course tweeted us with questions or comments. If you're a fan of the show leave us a rating or review in the apple? Podcasts store or tell someone about us. Thanks for listening and we'll see.
"To npr by from news. Eighty eight seven in houston. I'm getting louder for all things considered this afternoon. Mad arab is watching the rollout of the covid vaccine at houston hospitals houston's. Va medical center is now giving up the pfizer vaccine but one nurse told houston public media some of our colleagues. Don't plan to take it. Carlos lally gave a covid vaccine education workshop. Va nurses morning. I did ask everyone. Hey how you doing. It is pretty much the majority of the staff there. They have concern for the safety. That if it's affecting the safety of the vaccine is a lot of them are afraid to get the vaccine houston. Va received an initial shipment of three thousand doses for healthcare workers. Business reporter flooring and martin has been going over new data on worker for tallies texas. The bureau of labor statistics says a number of fatalities at work by nearly twenty five percent last year in two thousand nineteen. There were six hundred and eight worker deaths in texas. That's up from four hundred. Eighty eight thousand. Eighteen fatalities had gone down every year. Since two thousand sixteen nationwide the number of worker deaths was the highest since two thousand seven transportation and construction had the most fatalities also environmental reporter. Katie watkins's looking at how houston is tightening regulations on storing hazardous materials. The new rules response to the explosion at watson. Grinding in manufacturing almost a year ago he houston city. Councilmember sally alcorn. They're still work to be done. State legend and other places to better protect our residents in neighborhoods from things they know about and things they don't know about one of the changes were prohibit businesses with dangerous chemicals from operating within a thousand feet of schools and churches for the latest on the corona virus in greater houston. You can go to our website. That's houston public media dot org or forecast for this. Evening is calling for clear skies should drop down to about thirty nine degrees for thursday sunny high near sixty two right now. We have partly cloudy skies fifty two degrees on the uh campus. I'm water news eddie. Eight seven support for npr comes from npr stations. Other contributors include. At and t.
"Points this is. Npr from news at eight seven in houston on game daughter. The houston health department is reporting over a thousand new cova cases. Today harris county hospitals are also reporting troubling numbers with about one hundred more covid patients in their. I see us last week. Used to mayor sylvester. Turner has can only do so much to limit the spread of covid. The only really to have a curfew hanage at some point in town. Who can do that but again. It's gonna require everyone to do even more. Turner says a surge in hospitalizations. That would come from thanksgiving day. Celebrations wouldn't be filled until next week. He says he's relying on the personal responsibility of business owners in the public. So a curfew doesn't have to be issued houston's job losses of slowed but employment is still down from a year ago flooring and martin is looking at the latest numbers on the bureau of labor statistics greater houston lost more than one hundred and fifty thousand jobs and the year ending october. That's a four point. Eight percent decline a little better than the six percent. Nationwide decrease seven straight month of year over year job losses for houston sector with the most losses leisure and hospitality. Houston lost more than forty. Five thousand jobs stare especially in food and drinking places other hard hit sectors include construction manufacturing oil and gas and trade and transportation. And we're seeing the price of gas. Go up here in texas. Aaa texas says the statewide average is now a dollar eighty five. That's up five cents from last week. The average here in houston is a dollar. Seventy nine prices are inching up after some of the cheapest thanksgiving gas prices in years for more on the corona virus in greater. Houston you can go to our website. Houston public media dot. Org is going to be partly cloudy tonight with overnight low near forty two degrees tomorrow sunshine high near fifty six tomorrow night's low around forty on gail delattre news at seven. You know that feeling where you're exhausted by the news but you also can't stay away from the news. I am here to help the back. My name is sam sanders. My show is called. It's been a minute. Every week journalist and i process the week of news in culture in a way that doesn't feel.
The economic impact of covid19
"Welcome to kiss miss and mysteries. I'm your host Kit Crumbs today. We'll be discussing all things economic in relationship to the corona virus as of this morning. Twenty two million Americans had filed for unemployment. And that's just a number that have filed so far the economic impact of the corona virus on the. Us economy is almost as big a topic as the consequences of the virus on his population. Unfortunately there is enough disinflation to make either topic confusing. Today's podcast. I'm going to lay out some numbers and made clear the difference between recession a depression to understand the immensity of each. We need to look at some numbers. The population of the United States is roughly three hundred twenty nine million the thirty point two million small businesses in the US comprised ninety eight percent of all businesses. Fifteen million are self employed and that number about nine million are unincorporated total employed in the US as of this podcast. Roughly a hundred and fifty eight million and keep in mind. There are millions that are Solo Entrepreneurs. A recession is a gradual decline of the economy. Did curse over at least six months in one thousand nine hundred seventy four. The Commissioner of the Bureau of Labor Statistics gave a more in-depth dictionary type definition. This included that there needed to be a one point. Five percent decline in Gross National Product or the total value of all goods and services produced in a given year plus foreign investment and unemployment needed to reach six percent or higher on the other hand. A depression is an extended recession or serious decline in the economy that lasts for years for depression to be in effect on employment rates. Need to rise about twenty percent and there needs to be a significant decline in gross domestic product among other factors in short a recession is simply short term economic trough but a depression is a recession on steroids since eighteen fifty four. The United States has experienced thirty-three recessions. And only one depression so depression is a long term recession with twenty percent or above unemployment politicians bat around the number of unemployed like a ping pong ball. Some people think that to get these figures on unemployment. The government uses the number of people collecting unemployment insurance referred to as you I- unemployment insurance benefits under state or federal government programs but some people are still jobless when their benefits run out and many more are not eligible at all or delay or never apply for benefits so those numbers that I announced the beginning of this podcast twenty two million on employed is woefully low. So quite clearly you. I- information cannot be used as a source. Complete information on the number of unemployed with the shelter in place mandate many states as well as the closing of all businesses except grocery stores and pharmacies to corona virus. You can be assured that the number of unemployed is going to soar no doubt above twenty percent recession or depression. It would seem that. With a high number of unemployed that the economy would be affected and consequently decline and that would leave the deciding factor recession or depression determined by the GDP which has gone up for the past three years and how long it takes for the unemploymed to become employed once again how our economy will rebound is us unpredictable as the final impact of the corona virus all the population recession or depression. Who knows but at least now? You have some facts to go by. Economic facts concerning the corona virus recession versus depression was produced here at night. Owl Sounds Studio and brought to you by the rogue valid metaphysical library books of mystery adventure in life on the edge at Kit Crumbs Dot Com and by internationally known psychic and medium Sharon Bauer author of the Book. Lies. Eternal love immorally. You can get at Sharon. Bauer media DOT COM. I'm kick crumb. Thanks for listening.
Jobs Friday: The Racial Unemployment Gap
"N. P. R. Breath Carbon. Stacey in the day couldn't arrive fast enough because today I didn't even finish it's Friday. That's what the Air Horn signifies because jobs. Friday couldn't even wait very special official day. It comes only once a month and there is a lot to celebrate this month. In the month of January the economy created impressive. Two hundred twenty five thousand thousand jobs and the unemployment rate was three point six percent which means that the unemployment rate stayed close to its lowest point in about fifty years. Now on this show show. We have cited this low unemployment rate before as a sign of a relatively healthy labor market. And when you break it down further it's also true that the unemployment rate has come down in recent years for every group of workers but that does not mean that the unemployment rate is the same for every group fright. The Bureau of Labor Statistics breaks all these numbers down reports on the unemployment rates for different racial and ethnic groups for white workers for example the unemployment rate is down close to three percent but for black or African American workers. The story is really different. Their unemployment rate is still six percent twice as high as the unemployment rate for white workers and this gap gap between black and white workers is known as the racial unemployment gap and that is what today's show is all about. It is also the focus of ongoing research by Ben Gadget Lori a senior economist at the Center for American progress. One of the things that I find is that the black one implement rate is twice the white unemployment rate but the key is that gap has has been consistent since January of Nineteen seventy two when the Bureau of Labor Statistics started following it since one thousand nine hundred seventy two almost five decades ago that ratio of roughly two to one one for black unemployment to white unemployment has held in fact for most of that time the ratio has been higher than two to one and this unemployment gap between white and black workers also so exists when you focus just on workers with the same educational backgrounds or when you zoom in on the same age groups or other categories for example black women have a higher unemployment rate right than white women and black workers with college. Education have a higher unemployment rate than white workers who also have a college degree. Benda argues that this gap is the result of when he calls structural racism. Says it's really important to understand. What the word structural means in this context so we think about racism we think about individual behavior someone being racist towards Schwartz someone else structural? Racism is that system is created so that people of different demographic groups end up getting further behind an outcomes so example of that is the criminal justice system so their studies showing that White person gets arrested is less likely to be incarcerated than a black person so once someone gets involved involved in the justice system when they're incarcerated once they come out they are going to have lower outcomes than anybody else if we have people who are more likely to be incarcerated. That's GonNa Create Racial gaps in outcomes like employment We think about education systems. The schools that are in certain segregated areas are going to have worse Outcomes and then you create these racial gaps without individual behavior because the system is creating these gaps Benja highlights a few trends to show that structural. Racism is what's causing causing get employment gap and it's not the result of something else. The most important trend is the sheer persistence of the gap itself through both good and bad economic times. This this includes times when the labor market has been really strong or tight tight so when economists say tight labor market they are talking about a situation where the economy is so strong and so so many people have jobs. The businesses really have to work hard to find employees. This tends to make it harder for businesses to discriminate against groups of workers because they just need eight people to do the jobs. For example. Black workers or people with disabilities and mega says a tight. Labor market can have that effect. It's a great thing. And in fact. Participation dissipation in the labor force and participation means either looking for work or finding work has gone up faster for black workers then for white workers in recent years as has the labor market has gotten tighter and yet the racial unemployment gap has stayed the same and what that suggests is that even once. Black workers are in the labor force and looking for work they still face systemic barriers to actually getting hired that white workers do not face and so one thing that we know about with African Americans. Is that a Lotta Times Times. They are the first fired and alas hired. A lot of research has shown that this is the case in a lot of cases. It's actually the first fire. That's more of a stronger effect that when there's a downturn Africa's are usually the ones that are fired I for example during the deep recession that ended now more than ten years ago the black unemployment rate went up more more than the white unemployment rate and took longer to start recovering than the white unemployment rate did and a trend that big bang says cannot be the result of individual or isolated cases of racism. It's happening on to scale across the whole economy. That's what he means by systemic or structural racism a simple way to put it is that it's racism without racists and obviously Benghazi is not saying that there are no racist in the economy. Would he's trying to say. Is that to shrink. The racial unemployment gap policies have to address the system that creates a gap in the first place and ask for what might work Bengal will share some of those ideas with us right after the break support for this podcast and the the following message come from Google from Connecticut to California from Mississippi to Minnesota millions of American businesses are using Google tools to grow online learn learn more at Google dot com slash. Grow support also comes from the capital. One saver card earned four percent cashback on dining and entertainment to percents at at grocery stores and one percent all other purchases. Now when you go out you cash in capital one. What's in your wallet? Terms apply Benghazi Jewelry says that policies to close the racial unemployment gap between black and white workers can't just leave the burden for shrinking the gap on individual people or individual individual companies. They have to address systemic problems. Here's one example. The biggest key is with a mass incarceration and so one of the things that we know about is that there's huge racial disparities in the criminal justice system and when people come out of the criminal justice system they have a hard time of being able to join the labour market. So there's things that we have. We can focus on in terms of employers. I think about programs that higher formerly incarcerated individuals. They work there and now to get skills and then they get kind of Think about like a stamp of approval so the become more employable. Because what you want you wanna put the onus on employers to say oh they use that as an excuse to say well what. We don't trust people who were formerly incarcerated but if you're able to get rid of bias any program or policy to get rid of that bias is going to to help. Close that gap. Another thing recommends is to bolster the staff and funding of agencies that exist to enforce civil rights laws and which are empowered to investigate a business win. A worker brings a claim of racial discrimination agencies like the Equal Employment Opportunity Commission the Federal Agency created in nineteen sixty five as part of the civil rights. ACT The EEOC. Oh see is there to combat employment hiring discrimination however over the last forty years the EEOC has been systemically dismantled lower staff law resources and they are the groups not just a federal EEOC but state level groups need to be able to enforce the rights laws so why these to enforce the existing laws and strengthened laws strengthen the agencies that enforce laws another thing Bunga says would make a difference changes in the economics profession itself. He's an economist and he notes that black economists are underrepresented in economics relative to the overall population and in fact he thinks that is one of the reasons. The racial unemployment gap hasn't gotten more attention. Even though it's been there and pretty much fixed for half a century it's one of the things that it's been fifty years that we've seen this unemployment rate gap and economists should have been looking at this over the last time but this is something that only recently. I've noticed when I've been focusing on it. That people have talked talked about it that has made some of the newspapers made some of the articles about jobs day but not enough people talk about it and I think that has to do with. Who are people looking at the numbers who are the economists there? There himself tweets about the labor market every jobs Friday at Benja underscore adulatory and in fact. That's where we came across his work and as always we'll have links that we referenced Prince in today's episode. NPR DOT org slash money. This episode was produced by Lena. Sons Giri in fact check by Britney Cronin our editors Patty Hirsch and the indicator is a production of N._p._R.'s.
20 In Demand Jobs For Seniors
"This work matters with bestselling author and syndicated talk. Show host ken coleman. It's friday december the twenty fastest growing jobs for seniors. Here's why hearings new data from the us. Bureau of labor statistics shows that workers. Sixty five and older is the second highest unemployment rate that group so that demographic sixty five and older second highest unemployment rate and. It's important that if you've got a a senior in your home in your friend network and they're struggling to get a job. This is why this information is really important role. Roll these really quick. Because there's twenty of them in by the way you can send this show you can just send today show after we're live here. It runs for twenty four hours on demand here on youtube. So you can send them to. Hey watch the first. Few minutes of the show construction managers applications and system software developers. I was thrilled about this. Because bethel tech. We've just signed a partnership with them and we're sending people to them because they can train you in nine months for fifteen thousand dollars or less if you use the ken coleman discount and to see that sixty five and older a big category applications and system software developers really exciting Packers packager psychologist tax. Dr excuse me taxi drivers and chauffeur's counselors a general and operations managers computer programmers. There it is another technology. Job bethel tech dot net. Tell them ken sent you. Construction labor's human resource workers marketing and sales managers licensed practical and licensed vocational nurses by the way that is exploding with this recent spike in corona virus. I read an article this morning. That certain states their medical systems are trying to get retired doctors and nurses to come out of retirement very interesting. Artisan related workers electricity few a food. Preparation workers musicians and singers. Recreation and fitness worker shipping receiving traffic clerks librarians and finally nursing psychiatric and home health. As if you are a healthy senior when you talk about home health. Certainly during corona virus. What an exploding industry. That is where they just need. People could come in and provide home health services. Just assist if you like what you're hearing make. Certa subscribe and share work matters with a friend for help on your career journey. Listen to the ken. Coleman show podcast part of the ramsey network.
More Job Growth, But Slower
"N. P. R.. Everyone stays in if this is indicated from planet money in today's jobs Friday, and so we have been wondering if it's time to bring back in old celebratory tradition from jobs Fridays, it's true. The Air Horn, the Air Horn I know we stopped blowing the jobs day Air Horn when the pandemic struck because things were so awful and so many people were losing their jobs. So the question now is I mean have they improved enough that we should resume the tradition? Yeah I'm leaning yes or at least yes each. Just today, the Bureau of Labor Statistics released jobs report for the month of August, and it showed that the economy created one point four, million new jobs last month, and the unemployment rate fell from ten point, two percent to eight point, four percent. That's the first time. The unemployment rate has fallen below ten percent out of double digits since pandemic started to we can only say stacey that the numbers are trending in the right direction I mean, that's a good argument for like a relative Air Horn but there I mean there's a huge downside as you know I mean first of all, remember that a lot of the money. That was supporting the economy from the big stimulus bill started expiring at the end of July through it was right before the data for today's jobs report was collected. So the report might not get be capturing how that lost support will affect the labor market, and also even though the labor market is improving, the pace of that improvement has actually slowed down the number of jobs created with smaller in August, than in July, and that is the second straight month there has been a decline in the number of jobs created. Those are all excellent points. All Ultra I cannot argue with any of that things are definitely still not great. But I think I'm GonNa Call Anyway Stacey just because like we have missed the Air Horn. I don't know I've mixed feelings, but I'll give it to you. Maybe we can modified a little like a relative is softer than usual Erhan whatever just give us your Horn give us your. Ford. That That that was nice. Those Cathartic. I think our three guests today are also excited about it. Yes. We have brought back our jobs date Ninja squad three economists Nick. Bunker. Martha Kimball. And BANGADUA Laurie who analyze and breakdown the details of the jobs report every month like it's their job because in many ways you could see it is their job. Yeah. It's a part of their job for sure. So after a quick break Nick Martha in Banja each, you're gonNA share with us one big takeaway from today's jobs report and also stacey as one of our three Ninjas will remind us today's jobs Friday happens to coincide with the birthday very important musician. Musician Oh yeah. He's going to send us off into the long Labor Day weekend. Support for NPR in the following message come from Tiaa committed to the idea that while most things in life run out from clean shirts in the morning to a favorite dessert. Lifetime income in retirement shouldn't learn more at Tiaa dot org slash never run out. This message comes from NPR sponsor Microsoft. The world has changed and Microsoft teams is there to help us stay connected teams is the safe and secure way to chat, meet, call and collaborate to learn more visit Microsoft dot com slash teams. Okay. I up on our roster of jobs day. Ninjas is Nick Bunker. Nick is an economist at the indeed lab. So Nick, what are you choosing to highlight from today's jobs report? So the indicator that I want to focus on is the level of employment in August compared to what we saw back in February February was the last month before the pandemic started devastating the US labor market. So even though the labor market has improved in recent months nixes we need to go back to February to see how much improvement it's still needs to make before it's back to where it was. While we've had few reports in a row, now were adding millions of jobs. We're still down more than eleven, million jobs than we saw back in February. So progress is being made, but the labor market is still a really big hole to understand this another way. There are still seven point, six percent fewer jobs now than there were in February and we can see how bad. That is by comparing to the damage that was caused by the great recession of two, thousand and eight and two, thousand nine which remember was itself an absolutely horrible recession that took years to recover from and back. Then at the absolute bottom of the labor market in that recession, knick points out there were only six percent fewer jobs than before the recession started. So the hit, right To leave market is still larger than the worst period during the great recession sobering thought about how long they're still left to go. Okay. Next up our next jobs they Ninja is Martha Gamble who senior manager of economic research at Schmidt Futures. So my indicator from this jobs report is fifty percents that is the percent decrease in employment that the motion picture and sound recording industry has. experienced. Since February Martha analyzed the Employment Situation in all the major economic industries and the movie and music industry was the one with the most lingering damage from the pandemic, and you'll do other industries that are also really struggling to bounce back to see what they all had in common performing arts and spectator sports scenic and sightseeing transportation and accommodation. A lot of these industries fall into. Leisure activities or travel activities and I. Think it's really important to emphasize that are jobs that we all want to be there on the other side of this like I don't know about you. But at some point when this is over. I want to go see a movie I WanNa go to a play I wanNA take a trip me to eat. More says, a lot of times people are too dismissive of workers in the arts arguing that maybe they should get trained for a new job or that they should switch careers. This really bothers her a lot of those workers have trained for years and even the jobs that they often take to support themselves as servers and bartenders. For example, have also been really hit hard by the pandemic whenever this is over we want those people to be doing those jobs again, and so it's not as simple as just saying, well, they should all retrain and find new jobs even if they could find new jobs I also do want to point out the irony in all of us being dismissive about the real economic suffering that the arts industry is going through right now. While we're all stuck at home watching everything that Netflix's can give us data's a really good point I think. Maybe, we should be more grateful and now Cardiff you have promised us some kind of revealed here a musician who is celebrating a birthday today apparently yes, and I guess the person who is going to give us this final surprise is our third jobs day Ninja Bangadua Laurie. He is a senior economist at the Center for American Progress I think tank this beam beyond birth in all I'd be remiss not to talk about black women's unemployment fiance. Yeah. WHO Doesn't want to celebrate the birthday of beyond say and on Jobs Day what a great coincidence Says the reason he is looking at the unemployment rate for black women. Is it fair? Struggles are especially indicative of what's happening to labor market now and especially the struggles that a lot of parents are facing in juggling their work at the same time as watching their kids or taking care of elderly parents or relatives who are sick with Kobe you look at childcare that because childcare is not. Open because schools are not reopening that we have some sort of hybrid system doing virtual learning that the burden the onus falls on women and especially black women who tend to be head of households in August. The unemployment rate for black women was still at an extremely high twelve percent that's higher than the ten point five percent unemployment rate for Hispanic women and much higher than the seven point three. PERCENT UNEMPLOYMENT rate for white women, and even though the August jobs report seems like it was pretty good overall Bengal disappointed to see that the labor force participation rate for black women did not increase and so what that says is that even though the economy's quote unquote recovering, they are still out of the labor market because they have these other birds, other owners that they have to take care of. For the household, these racial gaps have been persistent Anga says, and it's important to keep in mind these details within the jobs report whenever we look at the overall economic picture and not forget them. We WanNa wish our listeners a restful and safe Labor Day weekend and we asked Panga for a beyonce's recommendation to close out the show while the jobs numbers and what's been happening. It's been kind of. Depressing. So Black Parade is something that's pretty uplifting. I liked listen to yes. Please wish granted. Let's hear some black parade on the way out of the show. This episode of the indicated was produced by Autumn Barnes in fact check by Britney Cronin our editors Patty hearst and the indicator is a production of NPR. Insulin.
Why Arent More Women Investing?
"She makes money. Moves is proudly sponsored by fidelity getting married having a baby buying a house getting divorced caring airing first parent big moments have big impacts on your finances here motions your whole life head to fidelity dot com uh-huh slash life events for resources tools and guidance. UNMAKING lives big ups and downs. Elit less up and down check out fidelity let's see dot com slash life events today fidelity brokerage services LLC member NYSE SIPC. She makes money. Moves is the production of Glamour. An iheartradio I'm not sure if I'm making the right decisions and how I'm investing because I don't know a lot about it. I essentially rely on an investment manager to to make those decisions and just in general what I I be doing with money that I'm saving. I'm Samantha Bari. The editor in chief of bomber. And this is she makes money move. The you know about the gender pay gap. According to the Bureau of Labor Statistics Women are are typically paid about eighty two cents for every dollar amount mix for women of color. It's even left the pay. Gap Isn't the only factor hurting autumn. Lines women also approach investing differently or ignore it entirely many of us take our paychecks and lead them sitting in a savings account. Listeners Bash is a terrible idea. Fifty seven percent of women don't invest at all compared to forty four percent of men that's according to a survey by the investments APP acorns which also found that sixty one percent of women felt they had a low understanding of investing vesting compared to forty four percent of men but when women do invest it pays off according to a stem connector report. Women earned earned twelve percent higher returns than men when it came to individual investments. Today's guest has been saving money for most of her life. She saved and invested from a young age and today at thirty seven. She's quarter of a million dollars but she's not sure what financial steps to take AAC next. This is her story. I'm Sarah I live in San Francisco and thirty seven years old. I work in marketing communications communications at a technology company. And I have been saving money since I was about eighteen. It always had instilled in me this idea that you should always say whatever you can and that you shouldn't spend anything unless you have the cash spend it so I made sure early on that I lived within my means as much as I could when she left home at seventeen or guest. WHO's asked us to call her? Sarah worked full full time at a retail job for three years before starting college. During that time I wanted to save up money so that I didn't have to take out as much and loans. Sara was planning for her financial future in other ways to she enrolled in a 401k and opened an investment retirement account the my financial adviser at the Times Times that I was one of the youngest people ever met who was interested in opening a roth. Ira when she started college. Sara worked part time and went to an in-state state school to save on tuition for us later. She graduated with about fifteen thousand dollars in student. Loan Debt Sarah has been saving money throughout her her twenty s but instead of paying off her loans early when she graduated she decided to buy real estate in June of two thousand eight. She bought a house in Oregon with her boyfriend. At the time was always really important to me that investing in property especially not being married that both both are names. Were on the title because I had no idea what was going to happen. Things are great when you're in a relationship and then things go south and you can end up getting screwed on property or in financials in general so we went in fifty fifty both put down percent with him working and with US renting out one of the rooms that helped to offset quite a bit of the cost. Unfortunately there timing wasn't grace. If you remember two thousand eight well. That was a a horrible time to buy a house. Because two months later the economy came crashing down so we bought this house and we really had no choice but to essentially look at it as an investment shortly after graduating from College Sarah applied for Grad School. She felt like she was behind her peers and she wanted to get started on the NEXTSTEP. Step right away but it wasn't a great time to do that either. I was a product of the great recession and it was a very bad time to go to graduate school so the year before when I was looking into it it was a very good time and there are plenty of loans plenty of grants plenty of teaching opportunities and then as soon as as I decided that it was going to go everything kind of fell out from under me and all of the grants were essentially polled and the only option John was to take out loans after Grad School. Sara and her boyfriend broke up. Breakup are usually hired. When you own a house together? It gets even harder after we were stuck with this house. We couldn't sell it because the economy's still hadn't really bounced back yet so we decided to hold onto it and enter into like a business relationship. We both moved out of the house so we were able to rent it out and that paid the mortgage so we figured as long as we could sustain that it was worthwhile just just to hold onto instead of selling it under what we had purchased it so we held onto this house. We lived our separate lives. He moved to another city and then I moved to the bay area in San Francisco. Sarah continued to be frugal. I started out at a nonprofit. I had salary salary that wasn't large at all but it was something that I was able to work with. And and just make sure that I was able to pay for my my life essentially and I've always tried to live within my means. I had roommates for a while and just tried to keep my rent down as much as possible. Try to live in rent controlled apartments this and not eat out much. I mean it's definitely not the most glorious lifestyle but tried to make do with what could and do cheap and free events with the money. She saved Sarah eventually bought her ex out of the house in Oregon. I knew at some point. We wouldn't be able to hold onto this house together forever however it went. It wasn't worthwhile for either of US We came to a mutually agreeable price of the money that he had originally put into the house today. Ace Sarah's in a good place financially. She's refinanced her student loans with a private bank and she's paying down the forty one thousand dollar balance. She rose from Undergrad and graduate school. She doesn't make much of the house in Oregon. What it pays for itself? Every year she tries to maxine the 401K and Roth IRA and she has that two hundred and fifty thousand dollars why she continues to live beneath her means in San Francisco. She tries tries to enjoy her life to when I have extra money. Leftover I mean they're things that come up. I'm traveling so I like taking vacations. I like going places doing different things but I try in general to save as much as possible you know upwards of like around fifteen hundred a month. She's great saving but Sarah has questions and about what to do with all that money. I'm not sure if I'm making the right decisions and how I'm investing because I don't know a lot about it. I essentially rely on an investment investment manager to to make those decisions and just in general. What should I be doing with money that I'm saving right now? She's renting a home. She might want to buy a house but she also liked to have a baby which would come with its own financial demands. There are plenty of ways. She could spend her money she we just wants to be strategic. I definitely didn't think that I would be thirty seven and unmarried. That wasn't really in the plan in but it's happened happened and I'm completely happy with everything that's happened it. Just it's not what I originally anticipated and I want to have a kid at some point and so I don't know if I am going to marry my current partner but if I do I would like to know at what point is. Is it worthwhile to have a prenuptial agreement. I'm also trying to decide. Do I take money out of my savings and try to buy a house in San Francisco. So so that's been a really challenging point for me especially doing this all myself. Because I don't want to assume that I'm going to get married. I don't want to assume that I'M GONNA have that partner so I'm wondering what financial decisions should I make that. I'm set up appropriately for the future. More on. She makes money moves right after this quick break she makes money. Moves is proudly sponsored by fidelity ever notice that most financial decisions are emotional to take buying a house. Sure sure it's about the money. Of course you're also worrying about has noted things will. We need another bedroom. Can I live. With Tangerine kitchen will the dog like the yard fidelity dot com slash life. Events is an information hub for lives big moments and the resources go beyond financial chill. Because if you're having a baby or caring for your parents are getting divorced. You're thinking of so much more than money. You wonder. Will I be okay. I'm already how life change go to fidelity dot com slash life events for curated content tools planning checklists reckless and actionable next steps. So you could manage everything that goes into blocks big moments fidelity brokerage LLC MEMBER NYSE EH SIPC. I'm Barry Welcome back to she makes money moves. Today's expert knows the the importance of saving early and planning for your financial future. Hey Hey hey. It's me tiffany. The budget needs to your favorite financial educator. I'm here to help women go from were. They are to where they want to be with their money. Tiffany thank you for joining us again. Sara yes. Great Story I love Sara. Sara is opposed to child of somebody that at a very young age was financially savvy. Quarter of a million across investments and savings and. She's thirty seven great but despite all the good financial decisions she's made her it seems that she gives creditor financial advisor and lack confidence in her own. Ability is that common very common because Sarah has taken herself as far as she knows how to take us you know. He's done all the right things she stayed. She lives under her means but I think that she is not relying on the fact that if you bought yourself this far you can also take yourself a little further. And I suspect that she has financial advisers. Who are not teacher so one of the things I look for? Is I look for a teacher when I sit down with you. Oh and I'm asking you questions. You're teaching me. How and what we're doing not that I'm going to do it myself but I wanNA understand little? Sarah feels feels like this. Because they're telling her what they're doing but they're not teaching showing her. Your knowledge should be growing with whoever your your financial experts on your life. This should not be hoarding information. Or they're not the right. People should be dating financial advisors as in like the right one recently just hired someone after six months of looking being because I had outgrown my financial adviser from before. How does a financial adviser get paid? Financial advisors typically get paid in two ways one way is they get paid need a percentage of how much they're investing for you right and another way that you basically pay a flat fee about how much is the percentage fee was should never be more than one percents never more than one percent. They'll try to push you to one point five one four. That's hundreds of thousands of dollars. Potentially lifetime lost. What are you looking at it as a flat fee for financial council adviser? What the rain is I mean? I've had people who were as lowest two hundred and fifty dollars a month. That's really low and typically maxes out at about fifteen thousand dollars for the year at the higher end of those fees you're probably paying for someone who's more specialized like financial planner rice a financial planner. That does more than just manage. Investments like a financial planner at that level costing. That much is doing more than just. Hey put your money here. Fifteen thousand I need you to Dancing and do backflips not just. Hey tiffany this is where you invest your money my financial planner now were also talking about building a will a trust. We are Talking about estate planning overall like what happens if I'm sick. What does that look like? What does health care like in my old age? We're also going over my tax tax strategy. How should someone go by finding financial planner? This is what I did. I mean my friend. She's like I've never seen anything like this before. I wrote down everything as I interview interview. People I said. Here's my life on paper here. My goals at the bottom. I had my specific goals. That's the thing about Sarah to. She needs to get very specific. What do you want I want? I want to retire by age. Forty five and when I have two million dollars in the bank I want to be debt. Free by forty whatever that looks like be clear on that that Sarah has some specific concerns about having a baby and buying a home so having someone who's specialized at this stage would probably be important to her are there less S. expensive alternatives to a traditional financial adviser for someone who's just starting yes. What I'm paying for is the overall advice that you can't get a machine to do but there are things like vanguard Charles Schwab where literally you can put in your age and your risk tolerance and they will manage your assets acids for you so much research has been done? That person doing it does not beat a machine doing it right so with a Robo advisor the kind that you get with. Let's say Charles Swab. You would only pay the operating V to invest because you're not actually paying a person to make investment decisions for you. Something like that would probably make more four cents for someone with less money to invest on a more straightforward financial situation Let's take a step back and talk about investing in general it can be overwhelming Wyoming. How can we wrap our heads around the basics stocks bonds retirement so stocks and bonds? Typically how you going to invest until either retirement. I'm in a cow or just a wealth account when you're investing in retirement which really saying is I'm investing in maintaining my current lifestyle. I think people think of retirement and they're gonNA live of like PDD like download. No that's not why not living like when I'm sixty-five or use your so but it doesn't mean that you can but your retirement account the purpose purpose of it is to help you maintain your current lifestyle. Now you can also simultaneously invest for wealth. was I suggest so. Then there are stocks and bonds stocks. Excellent more risky right are less. So right. How much should you invest in stocks versus bonds in your portfolio? This is the best breakdown. Depending on your age you know how much he should be. Investing in stocks versus bonds so the age you are is the percentage that you should be invested in burn in bonds. Yes because you're closer. Yes you're closer to retirement right. So in Sarah's thirty-seven saying thirty seven percent of her investment portfolio you should be in bonds and the rest should be in stocks. The older you get every year you should be closer and closer to a safer portfolio bonds. Yes which are bond. What about investing in the stock market in general? I think a lot of new investors are really wary of losing money. I want you to think of the stock market as like when a kid draws a A lightning sitting bolt so you will see a lightning bolt. It looks like Harry Potter scar up and down that exact trajectories up always up but tipping on the way up right so the dipping their people freak out about but it's never not gone up right is it but the dipping is important if you are if you. Xt Five. That's why you don't WanNa be too much in stocks. I suggest looking at investing money in total stock market index fund and then also investing your age in a total bond market index fund. Will your money is going to be doing. The stock market has always done go up right dipping as it goes up but the way you protect the dipping is because every year you get safer and safer so what is an index fund so an index fund is a fund that mirrors stock market. Right if you do an index fund if you know next ten twenty thirty years even as dip. I'm going to go up. You can let your money do its thing right. You know okay so if you just sign up for that and kind of set it and forget it they literally have something called target date funds. Will it actually she just for you. It says how old are you. We're going to adjust because your target date is sixty five so as you get closer and closer to sixty five we will actually adjust for you. You will adjust how much you aren't stocks bonds for you. So what if you want to invest with your loose. So we're hearing from a lot of millennials and Gen z's he's that where they spend their money where they invest their money. They wanted to be reflection of who they are. And whether that is in the companies that they enjoy Oy or consume whether that's in sustainability can you approach investing in a socially conscious way there little companies that will allow for that. So there's a company called Elvis. It's a woman run owned company. And what I like about Elvis is that they actually have a component when you can invest in your values it shows you like all all of the investment pots and you can choose a pot that says investing in my values and then choose what your values are so buying. Real estate is another way to invest. Assuming you can eventually sell that property operative for more than you paid for us. There's holding onto the house. She owns in Oregon. The rental income pays for its maintenance. She's living the San Francisco. Where real estate is really expensive? Rent is high which is concerned that. If she buys a fair she'll wipe out their savings. What can she do? I mean I would be mindful that. Do you have to buy here so I I believe that real estate is still a great way to grow wealth especially if the real estate is appreciating or especially if you give a property where it's not just one unit slowing like not just a one family property so she could maybe spend more on a two family home that that would give her rental income make sense. She also wants to plan for a potential parenthood. How do you go down that road? A friend of mine did this. He got surrogates because because she was like she was a lawyer. She was doing well for herself. She's like I'm getting older. I may or may not find a blue in time but I wanted to see children. She's got two beautiful sons. She's done it that way. And so what what. She did to prepare his one. Shaughnessy sat down with mothers and ask. What are the costs related? When you were having a child I can start to prepare? The biggest thing is going to be childcare right right. I mean this is for any parent anyway. You never know anything everything but just sitting down with other mothers especially your mothers that have had children within a year Did you tend to after two or three three years. You forget everything. Yes if she wants to freeze her eggs she'll need to think about the price tag there which could be in the tens of thousands of dollars she should also. I don't know what her insurance covers and her employers maternity leave policy. Yes something like once you get to a certain as when you're in your twenties the thing you look for for job as money money money money. I'll do yoga and drink water. Who Need Health Insurance? But then once you start to get to your thirties being more mindful of You know although the Stop pays twenty thousand dollars less their insurance is amazing more on she makes money moves right after this quick break she makes money. Moves is proudly sponsored by Fidelity Galaxy. What's the first thing using when you're having a baby guessing you didn't say money we got it at times like these? Your emotions take over over. Excitement fear what. If you're having twins we created fidelity dot com slash life events for big moments just like this breath because you need more than financial resources. Checkout curated content tools planning checklists an actual next steps for. When you're you're getting married buying a house dealing with an injury are getting? Divorced are having to bundles of joy go to fidelity dot com slash live events events for help with the financial of the emotional stuff just about all the stuff except maybe changing diapers fidelity brokerage. LLC THE MEMBER NYSE SIPC. I'm Samantha Bari. Welcome back to she makes money moves one of the things that it comes up in. Sara's story is she has had that experience in the past. She bought a house with an ex-boyfriend She had to buy him. That's never easy process. Let's be honest. Let's breakdown okay conversations with about money with your partner. Sometimes the most difficult thing is early simple and soon as what I say I think second day my husband I was like. What's your credit? Is the sexy tiffany. He was like. I don't know I'm like you know who knows credits. So but you have to create an open day and date uh-huh because he's not shocked but conversations about money can be lights things like Let's use cash because you know I don't want to raise my credit card art and seeing like what's the reaction to that right. So you want to normalize the financial conversations with small things or like you know. This date actually might be more expensive than it needs to be. We can always just go to the park. It's hard but it's necessary because you want to know what you're walking into because here's the thing if we're dating and you're thinking about marriage I don't I want you to swipe every day on a credit card because we get married I'm paying off my own days. What is there is partner is not as financially secure as she is? How should they navigate that you have to find a common denominator when it comes the money because especially if? I'm assuming that if Sarah is doing better might want to help sift her partners relationship with the money and so in the beginning I call myself a financial bully. You're GONNA do this. We're going to do this. And he was like that didn't work and then I realized that I had to find a common denominators something that we both agreed upon easily when it came to money. What about PRENUPS? When you think about prenups you think of like movie stars unfree notes and you think oh well? That's somebody the lot of money. What's your take on? Do you need a premium. Especially if you WANNA protect your assets right right so when I put my husband in a pre nup but first he was all how would you approach it. Give me the opener so I think we were watching television and it came up. I was waiting for the. You know the right moment. I think you know whatever we were watching. pre-nup came up in the television show and I was was like. What do you think about that? I think we should get a pre nup and he was like yeah but he had no idea what he was talking about what you saw on. TV right he was like you know what I wanted my premium that you have to make dinner at least three times a week. I'm like Sir what's happening. Broke down like no. It is like this financial will document than he got offended. Okay he was upset with it like. Do you think I will take your money. That would never do that. How do you tackle that? You know you WanNa pre-nup you WanNa have that conversation tation. You don't want somebody that you love to be heard how is it. I said it's not about that. Of course I trust you. I said but it's not just me. There are people who depend on me That if for whatever reason we're not together I don't want to not be able to support them because we're going through something and then finally said so for us. The pre-nup was really just like what's mine is mine like what I'm building my business. Isn't that what you're bringing to the table as yours and what we built together so we invest in real estate together we split equitably so once he he realized like Oh it made it easy that we both use the same lawyer because then it wasn't like you're saying Yeah Lori said it was the lawyer was there in the best interest of finally May. Yes any final advice for Sarah on what has already been a very very good financial pass for her. Create your Financial document where it's the state of where you are financially in the goals that you want to achieve then start to interview financial planners and remember you're looking for someone who's going to educate educate you on the process. That's in you know like you're willing to do the work. It's very obvious you have to discipline. You have the income. You are rocking out already. So I went to stand in Net and acknowledged that I'm a Rockstar like I'm killing this money thing and that was only thing you need is access to the next level of knowledge. It's easy to feel overwhelmed by investing plenty of people. Do I know I used to but if you're not investing if you're leaving your money in a checking account because you're afraid to make mistakes that is the biggest mistake of all no no matter what age you are if you haven't started investing yet it's time check this show notes for apps that make investing easy and a website that will direct you due to a nearby financial advisor if you want face to face help. It's like this saying the best time to plant a tree is twenty five years ago or today not your tree now To learn more about what we've talked about in this episode visit Glamour Dot Com slash money. And if you'd like to share your story we'd love to hear it and help you make money moves emails hot money at Glamour Dot Com. She makes money. Moves is the production of Glamour. An iheartradio with new episodes dropping every Tuesday I'm your host and glamorous editor in chief Samantha. Bury The podcast is co written and Co produced by campus Iro and Deanna Bushman support from Larne Brown West Rosenfeld. Editorial oversight is provided by Mati Con. Pristina Everest is executive producer. Mary do is audio engineer. Recording how provided by Mark Bond Gelder Jewish heads up business and development of this podcast and pop singer heads upper research team special. Thanks to Tiffany Alicia and our guests Sarah for sharing her story Uh She makes money. Moves is proudly sponsored by fidelity live throws. A lot of us can be amazing. Like a walk down on the isle or a tiny bundle of joy. Or maybe it's a curveball. Like sickness or divorce Fidel's dot com slash life events has resources sources for you whether you want to assess the financial impact plan. Next Steps are even get self-care tapes for belives. Big Moments let us help help you navigate fidelity brokerage services. LLC member NYSE SIPC the uh-huh.
The Actual Costs of Owning a Home #323
"Fifteen minutes could save you. Fifteen percent or more. is that shakespeare. It's geico here. Yeah that's shakespeare. From one of some published works would be not for awakening may give the batteries for fifteen minutes. Could save you fifteen percent or more. No it's from geico. 'cause they help save people money. I hate to break it to you but geico got it from shakespeare. Gyco fifteen minutes could save you fifteen percents or more managing. Your money has typically been complicated time consuming and just another reason to bite your nails this year. You don't need to reinvent yourself. Every day is a chance to build your future and emlyn finance wants to help you keep building what you started last year in the year before that. We've been fans for one for a while and it's unmatched automation tools. Make reaching your financial goals easier than ever. Yeah last year investor. Pedia named him one the number one app for sophisticated investors and low-cost investing visit in one finance dot com slash. How to money to sign up and get thirty dollars to invest terms and conditions apply. Welcome to the money. joel. And i am matt's today we're discussing the actual costs of owning a home just before we hit record you and i were talking and we were considering naming this episode houses cost more than you because that is. That's basically we're going to cover this episode. We didn't have said back in the day called. Everything costs more than you think we does. It does and we wanted people to think through just all the additional aspects that go into whatever. Purchase that you're making there are always these auxiliary tertiary these additional expenses that accompany those things that we just don't think about and if we think about them in the moment before we make the purchase if we take just a couple minutes to think about is this thing going to add any other costs in my life besides just the cost of buying this item. It's really helpful because it could make us think twice before actually doing it. Yeah there's a lot of baggage that comes with owning a home that being said. We're not hating on homeownership unify. We are all about homeownership. Ownership in general is great but homes are an incredible asset that so many people have been able to increase net worth their wealth because of their homes. And so all that say. We're not completely knocking homeownership. But we do want to make sure that folks are aware of the additional costs associated with them. It's just important to go into it with your eyes wide open. Yeah right exactly all right. Let's before we get to that. Though i wanted to mention i wanna ask you. If i've been frugal. Cheap all right so basically we have our two thousand six honda odyssey minivan. I love that. That's but the the problem with it is that it doesn't have an auxiliary input. There's no place for me to For the your tune yeah plugging my phone and play my future islands or whatever and so because of that We've been forced to listen to traditional radio. And it's there's too many ads and i hate national radio sucks. Can't find great bands like future islands on. The radio actually listened to the radio the car that we have right now. I mean we've owned for years now. I know that. I don't have the presets gotta it's all it always has the numbers up there where you can like. Preset your your favorite radio stations. Yeah i have never done that because we just don't listen to the radio either listening to a podcast you enjoy or two tunes right and so yeah for us. It's been annoying. And i'm trying to remedy that you're trying to get us on the radio. No that's not what i'm gonna okay so i was like right. How how to actually like find a way to create an input here. I can either get like a new head unit installed right which is kind of a pain. There's like factory things where i can take apart my head my current unit and i can plug something in the back and that just takes some time and some effort and so. I haven't been ready to commit to that yet. And so i went kind of old school. And i got an fm transmitter. And i figured. I'll give it a shot so it's like twenty bucks to get this. Fm transmitter and i can listen to my stuff now on my car. But it sounds like you're listening to the radio right. Staticky and stuff in the background transmitters suck like okay. Well i'll tell you what. I think i think i think so too. It just reminds me way back in the day. I guess we were in a similar situation. I have gotten an aftermarket stereo put in our old vehicle that we were in a similar boat right. We we didn't have the auxiliary input. And i'll still rocking my old school. Click wheel. Ipod photo was the first release the first version of the ipod. That was in color awesome. Yeah it was so thick it was the sixty gig so it was huge dude but because of that i had my entire library on their now would sink podcasts and other things on there so of course. I got one of those dangles on there. You're gonna slap on the top dude. It was always such a pain in the butt to actually get it to connect and then you're driving along and somebody else's also broadcasting on that channel and hear some other tunes. I honestly feel like most of our listeners. Probably don't even know what an fm transmitter is like. Wait wet like what did you do. Because if you own a car that from the last decade which do not it automatically comes with an auxiliary eh bluetooth connectivity right. Yeah my car. Doesn't have those things. So i i think i need to go back to the drawing board on this deal back right. Yep i can. I can still good and And i think one of them have to do is just buy the part. That honda makes an open up my dashboard and do the install amount. So you think that's something you can do on your own. I think so okay. Yeah why guarantee that. There's a video on youtube where somebody has done this exact thing right. And so it's not like you have some obscure vehicle you'll have some like fiat made from the seventies or something like that whereas like there's nobody wanting to put an auxiliary input on a fiat from nineteen seventy five. Maybe i don't know. But i guarantee there's someone who's done that on a honda odyssey. That's about the age of years man. I bet you're right so i'm going to scour you to find the right part our report back unless you know how the install goes absolutely an hour and a half or two hours to like commit to doing the job so the joke is in our house when i tell kate when she's all right. How long is this project going to take. I immediately have a knee jerk amount of time and then we multiply by three because in reality. I'm like this is just a thirty minute project. That's a long. I think it's going to take out. It's more like an hour and a half always. It always does take what i think it's going to do. I'm like So thankful but that really happens man to hear that the. Fm transmitter didn't work out. But it's worth revisiting. Maybe they got better like you know the technology. Yeah i would would have gotten better and it's like oh now it's like cd quality not quite though i was hoping i was hoping based on reviews i was thinking that maybe but not quite. Didn't live up to the hype Not that there's much hype surrounding right. Let's mention the bureau having other show today. This one's call from an derby brewing. It's called derby juice. Ip thanks to my little sister. Sally for donating this beer to you and i to have on the show today. Thanks ain't south. that's how she's no. North lagos caller. Yeah all right. Let's move on to the topic at hand though we're talking about the actual cost of owning a home. I remember buying my first home. And i was so naive it. I felt like i knew a little bit. I did some research. But i still honestly was lacking so much information in order to make smart purchase. I was careful to buy a home. That cost less than what bank was willing to lend me. So that was a good start. But i did a really poor job at thinking through the other expenses that i would incur now that i was a homeowner back then i was more cheaper than i guess i still am. Sometimes as we just found out but yeah so. I was able to get some of the furnishings in the kitchen. Necessities for free or close to it donations from friends and free websites and stuff like that helps a lot but there are other costs of homeownership. That was also learning about on the fly. And i just wasn't prepare for them so this episode is for all of you out there. Who have the goal of purchasing a home. Which is an awesome goal So that you have a better understanding of the overall costs that are involved with that purchase. Yeah it's it's so important. Know what it is that you're getting into ahead of time you know many first-time homebuyers in particular things that just basically swapping out their rent for a mortgage and they're like oh all of a sudden not throwing away my rent instead now. This is building at my net worth and they think that as long as the numbers are fairly equal than they won't feel as much of an impact but of course many you'll now be responsible for repairs and upkeep etc of course. They don't assume that their current landlord is gonna come over and fix a leaky faucet but they still don't factor in the myriad costs and you know they quickly will find out that their housing budget wasn't quite up to snuff and so we're going to address that today we're gonna talk through all the different ways Were essentially getting kinda like nickeled and dimed when it comes to owning a home and again it's important to go into it with eyes open and part of the reason i wanted to talk about. This today was a lot of people are buying homes right now right. The housing market continues to be a bright spot for the economy as a whole even as inventory remains kind of there are a lot of people out there shopping and just a handful of years ago. Matt all the finance writers made it. Sound like millennials would never be interested in owning a home like this is the generation. That's always going to rent and that turned out not to be true. Our generation is now buying homes in big numbers these days and in fact millennials purchased Almost forty percent of the homes available for purchase that were for sale in two thousand nineteen. But no matter your age wherever you're at on the buying spectrum whether you're saving up hoping to buy your first home soon or whether you've been running for a while and you're thinking you'd like to own a home again. There's a lot of stuff you're gonna need to consider and also if you're considering purchasing a home. We wanted to get this episode out there sooner this year than later because when it is that you purchase a home can have a significant effect on the overall price that you pay for that house depending on the specific market. You're looking to buy in. It can vary but typically april may and june are going to be the most profitable months for sellers. Homes are listed for less time on the market and sellers received higher premiums than Other times of the year. So this tells me that as a buyer you likely want to avoid these months you wanna look to the other months of the year in order to to score deal so the sooner the better and that's part of why wanted get this episode out there Here at the end of february. Hey oftentimes november through january great times to buy home so yeah especially if you're in the process of saving up you probably don't want to hit the spring home buying season when everyone else says you might want to be looking at the peak times and of course to total costs attributed to housing continue to easily be the largest expense that we as americans have in our budget according to the two thousand nineteen expenditure survey from the bureau of labor statistics. The average house is a whopping thirty. Three percent what we spend our money on. That's not ideal in matinees opinion. it should be. We think it's best to cut down the cost of housing in your life Whenever you can but when we're pouring so much of our income into one specific category. Let's make sure that we know where all that money's going. How can take steps now to prepare for those expenses. All right so let's go ahead and dive into it. The first sort of category of expenses that we wanted to address when it comes to home ownership is when it comes to purchasing that home right. Let's talk about the costs associated with biennial home And first of all you know you wanna make sure that your overall finances are in solid shape and emergency fund is going to come in majorly handy for some of the costs that were about to detail later in this episode. But you also don't want to have loads of other debt obligations that you can barely keep up with when you are looking to purchase a home. If you were to do that. you wouldn't put yourself in a very strong financial position And as you start saving up for that you know you also might need to make some some real sacrifices in order to become a homeowner If it's truly a high priority for you might need a downgrade other priorities in your life. Like maybe that's going to involve trimming your beer budget. I'll say it ain't so maybe scaling back On your travel plans which has been a lot easier for folks in the past year And so this comes down to personal priorities but most people have to make some changes in order to afford that new place. Yeah you'll also need to make sure that you have a solid down payment in hand that involves many months often years of saving up in order to have that down payment in your hands. Ideally matinee suggest twenty percent so that you can avoid paying private mortgage insurance Pm i in special mortgage products that you can use where it might make sense to purchase when you haven't been able to save up quite that much. We won't get into that in this episode. We talked about it before. But the more you can put down the better off. You're going to be not only. Can you avoid pm. I every single month but your monthly payments going to be lower to annual also scored the lowest interest rate possible. When you're putting down at least twenty percent so there's so many reasons That that's a good idea. But that's a huge thing that you need to be saving for when you're talking about buying a home and once you that twenty percent saved up closing costs those are we need to think about next. There's a whole host of fees and costs associated with buying a home typically. They're gonna run anywhere between two and five percent so that means you're looking at between fifty six hundred dollars in fourteen thousand dollars on closing costs. That's for the the cost of the median home that sold in america last year. So you're saying it's really cheap to buy a home totally cheap fourteen thousand dollars super cheap right. No so yeah those. Those are the things that i i think. A lot of first time homebuyers especially or maybe a little blindsided by they have saved up five percent as down payment and then they don't have the other cash on hand to pay for the closing costs they have to roll them into the loan or they opt instead to put down less down payment in order to put money towards those closing costs. And that just puts you in a weaker position when it comes to your personal finances and since these closing costs are one time cost. Ideally you'll want to minimize. How often you pay these costin you do that. By purchasing a that you plan on owning for a minimum of seven years the longer the better really because their transaction costs are real. Estate are just so high. And it's okay to if you don't plan on living in that home the entire time you own it you might decide to move into another home and run out the one you've been living in. But the ownership timeline is crucial in order to make sure that you're not getting hosed on a home purchase and that's right and so these are kind of like these one time cost associated becoming a homeowner but after that there are additional costs. And we're gonna get to all of those including maintenance costs and what it costs to sell your home. that's right. it costs you money to sell your home. We're going to get to all of that right after the break with no fees or minimums on checking and savings accounts banking with capital. One is like the easiest decision in the history of decisions kind of choosing to listen to another episode of your favorite podcast and with capital one's top rated up. You can deposit checks and transfer money anytime anywhere making capital on an even easier decision. That's banking reimagined. What's in your wallet. Terms apply capital one. Na member fdic after the year we've all been through saving money should be the top of everyone's resolution list. So if you're still paying insane amounts of money every month for a wireless service. What are you doing switching to mint. Mobile is the easiest way to save this year. As the first company to sell premium wireless service online only mint mobile at you. Maximize your savings with plants. Starting at just fifteen dollars a month. Joe you and i both of our families have been with mint mobile now for over a year and we are saving serious money dude. This is something we talk about on the show a lot we talk about. How switching to a low cost selfo provider is a great way to save money and by going online only and eliminating the traditional cost of retail mint. Mobile passes significant savings on to you our listener. All plans come with unlimited talk and text plus high speed data delivered on the nation's largest five g network and if you're not one hundred percent satisfied mint mobile has you covered with their seven day. Money back. guarantee. To get your new wireless plan for just fifteen bucks a month and get that plan shipped to your door for free go to mint mobile dot com slash money. That's mint mobile. Dot com slash. Money kutcher wireless bill to fifteen bucks a month at mint. Mobile dot com slash. Money back to the break in again. I want to reiterate matt that we are not trying to dissuade people from homeownership. We just want people to know how much it actually costs before you decide to jump in. There's a strong case to be made. That running a home is just as smart as buying a home and maybe smarter But i think also there are a ton of reasons to own a home. And i understand that We both own our own homes. We love it. We own other homes to out so we're not against someone huge fans of home ownership right. It's like i see homeownership as bad as like no. It's not quite as it's not quite as bad. But i was like buying a boat whereas like ooh what about the deal like. Have you thought through this like have you thought about the additional cost. The amount of time that it's going to take out of your weekends. I mean actually owning a boat is a lot like put it on boat level though of really no. It's not the worst thing you can do it. It's really is one of the worst truly has to be like your passion. It's gotta be your equivalent if you're going to own a boat but you can't casually go into and in the same way you can't just casually purchase a home. It is something that you could easily get into something you could rush into. But it's not something that you can easily get out of and we're actually going to get to that later in the show but i male. Let's dive into these recurring costs that once you've purchased a home. There are ongoing costs. I think can be really easy to overlook. You're going to end up paying them. But you might bust your budget paying them if you haven't factored them ahead of time right and especially if you're a newer homeowner there are lots of aspects homeownership that you may not even realize are necessary. Some a required by law. You've got to have insurance on the when when you have a mortgage but other basic tasks like cleaning out your gutters might seem more optional. But they're still important in preserving and growing value of your home. If you don't clean the gutters you're going to have other issues water buildup which leads to rot which leads termites lots of issues and you know not clean the gutters leads to a more expense when it comes to maintain your home. Yeah and maintaining your home in general just isn't cheap so let's get down to brass tacks the age of your property the condition. It's in when you purchase it and the location where you're buying your home. We'll have a massive impact on the specific cost. They'll be facing but let's talk about those specific recurring cost matt. Yeah and so you know as we talk about maintaining a home. There's a good rule of thumb and it's a rule of thumb that we recommend for folks. Which is that. One percent of the cost of the home annually is one you can use to estimate the costs that are going to be associated with maintaining your house right. So let's say you bought a home. That was maybe a little bit higher than the median household cost last year Let's see about a home costs. Three hundred thousand dollars. You should be expecting to set aside around three thousand dollars For just ongoing maintenance costs and so that's kind of one another is if you set aside one dollar per square foot s- every year right so again. If you live in sixteen hundred square foot home maybe you can estimate to set aside sixteen hundred dollars every year in order to keep your home in tip top shape and so when we say general maintenance cost to you know we're talking my stuff as small as leaky faucet H fact filters all the way up to even bigger expenses that you might face like roof repair or replacement predictable things Or or even like a new system altogether right so of course. These are roussel thumb. And they're not always gonna apply. There's gonna be some years where the expenses are a lot lower. There's gonna be some years you know like maybe if there's a hurricane or something like that and roof is already getting old tree comes down which was also getting old. You might have a really expensive year when it comes to. Your house is going to fluctuate and so it kind of depends on the home that you pick as well as a little bit of luck as well yemen another recurring cost. You're gonna deal with. Every month is utilities. And that's a costs you need to budget for. Don't assume either that it's going to be roughly the same as what you spent when you were renting a place depending on the size age and weather proofing. That's been done. You might find yourself with far more expensive monthly utility bills. Then what you had at the last place. You lived co fleet. that's not the case but Move dot org has a great resource where they've calculated the average costs of all the different utilities and ranked. Each state won't link to that in our show notes but especially if you're moving into a place that's bigger and especially if you're moving into a place that's older. You're you're likely going to see your utility bills. Go up from the levels you used to seeing them at and especially if you used to live in an apartment where all of your utilities including internet were included because that was kate ni- before we purchased our first home. We realized how spoiled we were and honestly it's kind of shameful but how wasteful we were. We moved in just like oh my gosh. It's so hot and then we look at our utility bill. We're like oh my gosh. Electricity cost much money it so it almost seems like a given right. People are expecting to be utilities and in we we literally weren't. I mean we knew that. Like oh yeah. They'll be some increased costs because of utilities. But yeah it. It's really did come as a shock to us but in a way man all of these categories or mentioning right. Now they're there's somewhat right. We have control over those expenses and this one in particular is one that you probably have the most control over. You certainly have control over your utilities but when it comes to put inside of house your furnishings your furniture. You know what poster. He decided to hang up on the wall. But this is to keep in mind though too because like especially to if you're upgrading and size this can really get out of hand. If you're not being careful for instance if you're moving from like a studio apartment to three or four bedroom home will ding like now. You need new beds new mattresses some other odds and ends two two tie them together. You're going to need another dresser things like that. The rug from the big lebowski which really ties a room together exactly but again. Luckily we do have a decent. Bit of control over these categories The thing is though something to keep in mind. And i think we actually did talk about this in the everything more than you think episode. But the diderot effect you remember. This'll yeah basically you get one nice thing. And then everything else around it needs to be upgraded to. Yeah it was a. He was a french philosopher and he basically had this theory. Or i mean i guess the philosophy what is it actually happened to him and they named it after was it so i think he got a new robe Maybe that was it. It was something new that he got and then it was like man. Everything else around me feel shabby now that have this fancy new robe or he was previously a frugal dude and then he ended every got one nice thing and so. That's the thing i mean. The same thing is true. When it comes to your home mike you move in. And you're like oh man. All of our old furniture looks really crappy in this place. And so you upgrade one item and then you realize oh man that rugs really good. We should really get a new coffee table. And then you get the new coffee table. And you're like oh man. It'd be great if we had a leather couch to tie together in a big screen. Tv and so. Like i think you run into the diderot effect. And i'll spell it. It's d. d. e. r. o. Diderot i think it was a at the end to it's not like paradiso. I'm willing to something in the show notes explaining wikipedia articles. But it's definitely something to keep an eye out for when it comes to buying a home. Because i think we can easily fall susceptible to that habit of consumption different. I being careful no-doubt matt's hope maintaining a home not cheap. Some of the ones that we just mentioned some of the recurring cost we that we just talked about. We have some control over and we can lower the cost of those things but then there are other costs associated with owning a home that we have far less control over. But we need to factor those in just as. Well right yeah. Property taxes is one of those things and they're often included in your overall payment if you decide to escrow payment. It's a good idea to look into the average property. Tax costs where you live. Because that's going to have a major impact when it comes to affordability and when you find a specific house that you want to make an offer on definitely check to see what the taxes were on that home last year because that alone can make a big difference in your monthly payment. What you're going to on that house every single month and chances are two unless you get a really good deal in the house. Your purchase price. The price that you're paying for that house will likely increase the property. Tax based on its appraised value. Lester insurance is another kind of major cost of homeownership that is also rolled into your Your escrow rolled into your mortgage payment. Typically you know renters insurance is cheap. You might have paid as little as ten dollars a month for that coverage as a renter but homeowner's insurance will cost you a good bit more rates obviously very by hundreds or even more every year but it also depends on the insurance company Who you go with so make sure that you shop around. It's really helpful if you go to one of those sites that aggregate multiple quotes definitely want to make sure that you're getting the best deal before you purchase at home. Yep that's another recurring cost and you do have some control over that one Let's talk about home. Ownership association fees to a lot of people. Especially if you're looking to buy a condo you're going to encounter paying a hoa fee folks that live in a single family home live in places with an hiv too. But if you choose to live somewhere that charters one be sure to know what's included in that. Hoa payment pool. Access landscaping sanitation. Your water bill. Those might all be things that are included. But it's important to find out because they might not be. You can change based on how things are run to so take note of the financial health of your homeowner's association and take an active role in this ocean to matt. My mother-in-law owns a condo. Not too far from where we live in. The building is adorable but it needs a lot of help in release them love and the joy fees have been too low throughout the year so in the past couple of years. They've had to charge special assessments to all the owners of the of the properties in order to keep up the building and keep it from falling apart. And so yeah you wanna make sure that the hoa has plenty of funds in reserve that they're being run well because the hoa fees could jump dramatically. If that's the case yeah and that's something that you can ask them directly It's not something that they will always share with you but see if you can get a hold of their budget or their hoa report for the year similarly. When we're looking at first time we actually looked at a loft not too not too far from here and we were able to quickly figure out that the hoa did not have any reserves in its And they were assessing their like levying. Or whatever like a special assessment because anti-ruf needed to be completely redone. It was going to increase the estimated mortgage that we're gonna be paying by thirty percent and so we're just like oh. This isn't nearly the deal that we thought it was going to be Going to cost a lot to live here over the course of the next ten years. So yeah that's definitely something to keep an eye out for a special assessment like that could be considered an emergency. Which is the next thing you really need to budget for. Is potential emergencies thing is that you can't. I see happening your own emergencies night on your specific house. Exactly and so yeah. That's another reality when it comes to budgeting for the actual cost of homeownership. Most things you can plan for every month in your maintenance fund right you can plan for the eventual demise if your system but it's important to have savings beyond just those maintenance fees For unexpected things that come up. That aren't so big the ob filing insurance claiming Hopefully you're not filing an insurance claim for smaller emergencies. That pop up a down tree limbs that hiv roof and does i don't know five six eight hundred dollars. A thousand dollars worth of damage. Or a waterline. Busting would fall into this category. That's an emergency and it's important to have the same on hand to be able to deal with it dude as you're talking through these things it makes me realize two things right first of all that we have lots of threats around our own house we've got lots of hundred year old oaks with branches that extend out towards our house that could potentially fall on us a little bit as well as on us a little bit. I liked little crush me and my sleep but also not like the old waterlines. These are all things that in particular. Like if you have an older home. I mean you should definitely be setting aside the proper amount every month to make sure that you're going to be able to cover these potential expenses and i'm realizing that i think i'm under-funding our house. Maintenance budget i one hundred bucks maybe one hundred and fifty into that category every single month. Up your game on that. No seriously i think over. I mean over the years because we renovated. I guess not all that long ago. I'm like okay. A lot of stuff is kinda. You never know. There could be something else and it's not like we replaced every single system in right. We didn't we honestly didn't touch. Hardly any of the systems. We just it on just a little bit. And i am a pretty handy dude and so a lot of times. I'm like well. There's a lot of these maintenance things i can do my own. I'm not paying for somebody also. So obviously. I'm kind in the frugal camp. When it comes to stuff like that but you wanna make sure that you have those funds on hand that you have those your own personal reserves that way when something does come up you don't cheap out right like you don't want to avoid making a repair or something that you know needs to be fixed because you don't have any money than that problem continues to get worse before you know it it's going to end up costing you way more duct tape doesn't fix everything is some things but not many things so i if that's your goal or if that's how you're avoiding having an emergency fund well you're you're going to be out of luck at some point for when it comes to home ownership it's not duct tape. It's caulk duct tape like fixes all the rest of our problems but when it comes to the homes. It's like nothing a little bit of paint. Some can't fix just like cover up everything because that does work in a number of cases it doesn't always work and probably shouldn't yeah in nervous has a solid calculator for you can see the total costs. You're likely to incur all in one place willing to that in our show notes not to scare folks but there are of course a of things that you're going to need to consider before you take the plunge into home ownership and so hopefully our little laundry list of things you need budget for. Didn't scare you too much. That being said we're going to dig into the cost of selling a home right after the break. Just in case you thought owning Home was daunting enough. Selling home has own costs associated with it. And we'll talk about that right after this to show you how easy it is to file a claim with geico. We hired a soap opera star. Gracious me my car has storm damage. And i had to file a claim go to possibly get worse when my claims team. Leave me for someone else. Someone less intense. 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When it's time to uproot maybe move states move cities or maybe just move down the block which you and i have both done within our neighborhoods of my moving in the past twelve years has been done in a very very small vicinity right like within a mile of each other. So yeah but the thing is. We've never sold homes because again. We like homes. We we like to own homes. There's a lot of good that comes from home ownership but we just wanna make sure that folks Have open is when it comes to the cost associated with owning a home but what it does come time to sell a home. You wanna make sure that you know what those costs are as well so Does come with his fair share of costs and so just getting a home. Ready to sell is going to cost you money. You know you will want to gussied up in order to get top dollar from a buyer and if you do this well you're likely to get every dollar. And then more from those minor improvements on the back end forking out a little doda depression of the paint and stage the home a little bit like that's going to entice more buyers to make an offer if you're selling your lucky maybe we'll even have a bidding war. Oh yeah that's what you're going forward you really want man And that's that's because we came across the stat and seven out of ten buyers are focused on buying a home. That is moving ready. They're even willing to own a smaller home. If it's moving ready versus repairing folks don't want to deal with you know what we know what they would consider a headache to easy. But if you put a little bit of elbow grease into it if you're willing to put forth a little bit of you know mental space and thought as well as a little bit of money. You are likely to get more money for your home. It does come time to sell all right. You just gave a good stat now. I am going to return the favor and provide another stat. Do two thirds of buyers are making an offer without even seeing your house in person. These crazy yeah. So it's like literally the amount of people making an offer without having seen the home has doubled in recent years and so much of that is because of the pandemic of course right those updates that you're doing to your home could mean even more than they did. In the past the weight your home shows online is incredibly crucial. In today's market you might even need to spend more to get great pictures up there right. You don't want to take them with a flip phone or even maybe your own smartphone. You might want professional pictures up there right If you flip london anymore. Hey nobody knew. No but i bet some of our listeners do because you know they they wanna be analog. Don't want all the notifications and all the buzzing and all that jazz. We have a smartphone to listen to podcast on the phone. I don't think so. I don't think we should promote flip phones. I would not go back to one. But i understand if you're into that. I think one of the reasons we talk about smartphones and how great they are to like. We had this conversation recently. Smartphones are so amazing because of all the pieces of technology that they've made obsolete in this one small device that you keep in your pocket true like the calculator the flashlight measuring devices. No pads the the whole world. The internet is at your fingertips a string. It's really is amazing it. I don't feel like it's even necessary for me to continue like. I don't need anybody on the idea that smartphones are lately. We've all got when they were great and they do a lot for us. But but yeah. I think that's one of the things that people do need to consider. When they're selling a home there might be an increased cost to get good photos and a good video up and that going to be worth it because bring the interest. It's going to be a big reason that you actually sell your home especially with everyone. Being more focused on what your home looks like on a site like redfin or zillow and less focused on what it looks like when you walk through the door like it needs to look beautiful on the internet. That's right yeah you wanna create that buzz On the flip side of things here so that means when it if you are a buyer and you're looking for homes don't be turned off by the homes the listings were looks like. I don't know really dusty. The image quality is terrible. And you're like ooh this doesn't look very shiny like that's how you get a deal. That's how you get like those are the house. You should be thinking okay. Nobody else is very excited to see this place. I bet there's a good chance we could even get an offer that gets accepted. That's even lower than asking price. Potentially that's how you need to think about it. but again we're not going back here. We're not we're not talking about buying. We're talking about selling a home and you know if you're selling your home need to keep in mind that your home could sit on the market for a few months in that right. There will also cost you money. We're talking about carrying costs There are ways to sell your home faster. You know just like you said you'll taking better pictures and pricing at well. But it's important to know that selling your home isn't always quick and straightforward and you'll need to be financially prepared for the entire process. You know you might be stuck for a while where you're paying to mortgages perhaps Maybe you've got your possessions in a pod that you're paying for every single week we are in a seller's market these days so this really hasn't been as much of a concern but buyers who do ask too much for their place could still experienced the pain of listing hanging out for longer than they hoped for start seeing the days on market start to tick upwards and when you're a cell that's never good. Look yeah that's true. Too certain point it gets like snake bitten. You're like oh if things been up there for forty five days and it's still listed. Maybe not i better see a meaningful price job before i go take a look at that place. Yeah yeah another cossio. Encou- when selling homes realtor fees. That's a major cost when you sell if you followed our advice in your own home for at least seven years. That home has likely seen some appreciation. Which is great so those realtor fees will be deducted from the profit that you're making on your home you won't actually have to write a check which which is which is nice but that doesn't mean that those costs aren't there right on the sale of three hundred thousand dollar home. You're most likely looking at roughly eighteen thousand dollars in realtor fees and that's an important to keep in mind. Yeah you might be doing the quick mental of how much you might be able to walk away from the table with a you know like to sell at that amount. You're thinking man. I'm going to be able to pocket a lot of money here but don't forget about those realtors fees. They definitely take a pretty big bites out of that amount and another expense when it comes to selling. Your home is the cost of moving stuff. If you're not you hauling it right like you know even just running your own truck to to move across the country not cheap but hiring. Movers is far more costly. And the price really does vary it. It depends on how full service you want to go. Yeah you hire movers. Who will pack everything for you to right. yes yeah. That's like the premium movers. And that is really nice. But it's also really expensive comes with a pretty seat fee. That's one of the things to consider. Consider the size of your home as well as the the distance of the move that you're planning to make If you hire movers it can easily run into the mini thousands of dollars. Yes it can also to just real quickly. Dwell on moving second matt complaints about moving companies have soared during the pandemic and even before covid. It was an industry are rife with problems. A lot of people got scammed out of money or possessions from moving companies and you might find your possessions being held hostage if you hire the wrong move or two so it's really partner research any company before you end up using them check. What's being said about them online. And on the website of the better business bureau make sure that the company is licensed and also to consider finding a moving company on moving dot. Org because it's a trade association that vets movers. If you're just looking in the yellow pages or maybe that advertise on facebook. You might be in for a rough time. What about a piece of plastic tape to a tree at the exit by the interstate. Probably not a good idea. You're moving that way so that was kind of like a lot of bad news right a lot of expensive things so let's maybe in on a more positive note unfortunately for most folks when when it does come time to sell your home. Taxes are typically nonexistent on the sale of a principal residence. Unless your home has appreciated a massive amount you will receive gains tax free up to two hundred fifty thousand dollars as a single person and five hundred thousand dollars if you're married and so that's definitely a good thing that you at least don't have to worry about uncle sam taking Take a little bit of cut. A little piece of the action. Get out here. awful. Sam slaps a hand away In that again. I think we've tried to reiterate a couple of times in this episode. Even though i feel like this is like a bad news for the most part. Hey it's really expensive to own a home. You should really reconsider but is great. I am so glad that our family has put down roots in a community. We've lived in our neighborhood for like twelve years now and our specific house for almost seven years and even though we would do it again in a heartbeat that doesn't mean that it came without real monetary cost associated with it. The key is knowing what the actual cost of owning the home. You're looking at will be before you go all in and make an offer before you upgrade house. Either it's important to know the actual the true costs of homeownership. Before you make the plunge knowledge is power. Have your eyes open the more cognizant. You are of all of these different ways home. It's gonna cost you money the more you'll be prepared to make the move. Yes that is right man all right. Let's go ahead and take it back to the beer that you and i shared on this episode And that was a derby juice by ayn dirty brewing and they're actually here out of atlanta Look up in peachtree corners georgia Which i don't even know where that is but it's technically kind of within the greater atlanta area. I've never been there. Have you been there. I'm not yeah no. This was again beer that my little sister tossed our way. And i've never had any other beers before so it was a joy to try one that would you think about it. I mean i thought it was a nice local brew and it wasn't magically delicious like charms or anything like that but i thought it was a really solid. Ip a and again there are so many local breweries now literally. I did not know this career existed until my little sister. She's like more into like we're into craft beer really into craft beer and she knows more than i do for sure at this point at least about them. There's folks who you know about that. She doesn't know about. You're probably right. But for the most part she is more knowledgeable. And i'm willing to admit it. I'm i love crafting. Obviously it's part of our show. But i think with three kids and her having none. It's probably a little easier to get out to the ruthin. It is for me. Yeah heard evan they get out to. The brewers maybe a little bit more than Than we do these sure. But yeah so. This was a hazy support. A nice kind of hazy colored. It definitely sets the expectations as to what it's going to taste like. But i was actually surprised that had a decent amount of bitterness going on a lot of times. Some of these as can come across. Maybe a little more Full in body but sometimes they lack in the bitterness. But i felt listen. This kind of brought him with a west coast bitterness to the hazy game. A little bit style mixture. They're going on. Maybe so but at the same time it wasn't overly heavy Before the show. I had a massive lunch. Kate in the girls made this chocolate granola and so when i went for lunch as soon as i cracked open the door just meant like brownies. It houses. I don't know what that is but i'm gonna eat. It must shovel it in my mouth mash. I don't know how many bowls of granola with yogurt. And i had. But i came back down and i was just like. Oh i do not feel like drinking beer today which i rarely ever say but sometimes when you eat a bunch of food you're kind of like i don't know if i should put more calories into my body but this one was great though because it wasn't too filling. I'm glad that united this one no doubt and thanks again to my little sis. Yeah thanks allie. Aunt's house alfred dropping. It our way. Are they going to do it for this episode though. And if you want show notes for this episode links Some of the stuff we mentioned including that nerdwallet calculator will have those up on our website at how to money dot com. That's right so we hope you've enjoyed this deep dive into the expenses associated with owning a home And we'll see you back here on friday for our friday flight where we tackle the this week's news and personal finance. Sorry joel. that's going to be it for this episode until next time. Best friends best friends out own with no fees or minimums on checking and savings accounts banking with capital. One is like the easiest decision in the history of decisions kind of like choosing to listen to another episode of your favorite podcast and with capital wants top-rated app. You can deposit. Checks ain't transfer money anytime anywhere making capital on an even easier decision that's banking. What's in your wallet. Terms apply capital one. Na member fdic with the covid nineteen pandemic still on the rise and businesses needing to adapt entrepreneurs are moving to online courses more than ever start your own online course and get in on the ground floor of the hottest entrepreneurial trend with vic think if it makes creating marketing and selling customized online courses. Simple grow your business by sharing your skills knowledge and talents with the world whether you are a guitar teacher or business coach. Think if it can help you reach an teach millions start selling your online course today at kick dot com. That's think i f icy dot com.
Budget Tips and Tricks for Retirement
"Hello and welcome to move improve on. Debbie Miller your host and today we're GonNa talk about something that May interest you. If you're budgeting for retirement I'm gonNA share ways to stay within that budget. And yes. It is possible to be a cheapskate but still enjoy life. So spending in retirement is really broken down into three phases Think of it as the Gogo years the slow go years and the no go years during early retirement which is the Gogo years. You're spending is pretty high. You're traveling you're having fun shopping. Golf he fish you actively joy your free time and depending on your health is face can span ages fifty five to seventy five really so you have plenty of time to enjoy life. Then the next phase is the slow. Go years where do to health or age. You stay home. More shop and travel less spending in inflation adjusted. Terms has been shown to decrease during this phase. Let's as is usually anywhere from seventy to eighty five age range. The last one is the no go years. And that's where you really spend on health care. That replaces what used to be spent on entertaining in inflation. Adjusted TERMS SPENDING CREEPS. Back UP DURING THIS TIME. Usually in your eighties and beyond. So how can you really manage to budget for all this? Well you can enjoy a comfortable retirement and live off your pension or social security by using a few of these ideas to help you stretch your dollar even further and I'm GonNa talk about that today. Some people enjoy finding ways to pinch pennies. And now now that you have the extra time. Here's here's some things you can do first of all you. You may already do this but you can shop for the best prices on gasoline. There's an APP for your phone. Call Gas Guru Ji. You are you so if you're into saving money on gas but you're not interested in doing any work. Consider that APP is called gas. Grew Goo this APP draws its gas price information from the oil price information service so the prices are always up to date. And you just go to your APP store on your phone in pressing gas type in gas guru and it will provide directions to the cheapest gas station near you And then you can share your savings with friends on facebook. If you're into bragging about stuff like that is another App this call gas buddy you wine. And that's the best known gas price APP It's a crowdsource. App Acts Asks People to enterprises that they pay at the in a particular location sitting gas. Buddy list the gas station in your area and let you find the lowest price so you could say hey. Has it own gas for a dollar ninety two today in the bodyguard town and then somebody else may pipe in? Yeah but I got it for a dollar seventy five so then you know okay. We'll go over there. The APP incentivizes people to post gas prices by offering a weekly drawing for one hundred dollars gas card. So there's another way to save gas buddy gives users points every time they post crisis and they need to report about six or seven gas prices to be eligible for the drawing. So it's not something you just do one time. Oh I'm GonNa get Volley Blah Blah Blah. Gas Buddy does have strong following. But it's APP feels a bit David and it's not the most intuitive interface. Some users complained that the prices could be outdated is another popular crowdsource navigation. App is called ways w. a. z. e. and it. Lets you know how much you pay for gas as you travel. So if you're heading across the state or North South or whatever it can direct to the cheapest gas station by navigating to partner gas stations. The APP offers ways only deals so on your APP on Apple App store on your phone. You want hit W. A. Z. E. and like gas buddy ways gets instated from everybody else who uses it but ways users really friendly and they tip each other off to accidents and if a cop is hiding someplace. You knows that you can slow them now. The way you can save money though is to reduce the amount of time out. This can be expensive if you join others for dinner. And they decide to split the bill evenly so you would have to pay their share drinks. Appetizer anything else. That you didn't get yourself. That's not always advantageous. So if you WANNA get their little early until the waiter you want separate check or this way when they come to the table to take orders to say I wanNA separate check better yet. Take advantage of happy hour prices on food and drinks. Many restaurants are rate appetizer. Surin happy hour and you can make a beer or pactel stretch far. Don't be afraid to ask for Senior Citizen. Discount Price Tobacco the number of times you eat out to the Bureau of Labor Statistics States that people between the ages of sixty five and seventy four spent about twenty eight hundred dollars annually to eat out age. Seventy-five up spending about twenty two hundred annually. Now you really want get in the habit. You may already do this but you can track your everyday expenses because that adds up fast. Did you order something on Amazon? Did you buy a bottle of wine? How do you currently track? You're spending. Do you know where your money goes now. If you WANNA do it manually. Who can take a small diary with you in right down every day? What you spent money on. It's easier to stick to a budget if you know where you're spending money on but if you want an APP is several out there that we should look into 'cause you can put it on your phone. Keep track of it that way. One is called Spendy S. E. N. D. And it's really vest if you're looking for a basic doodle expense tracker. App It's very popular up. Minimalistic interface is easy to navigate. Main page gives an overview of your weekend spending Organiz from the most recent expenses or savings to the least recent. There's also options to display an overview of the month year or accustomed period of time. Even so if you WANNA know how much we spend ruined to Florida in January and we went here and here near that way. You can budget for Trips easier you can easily get a visual representation of your expenses in the form of a bar. Graphs and charts. And you can back up the data into your computer if you created account although you can use. The APP is an unregistered user. Pictures of receipts can be attached to each expensive. Your Wallet doesn't get clogged by a stack of paper. Receipts you can also add people into your account so they can see your expenses or export the data as an excel file or you can have multiple bank accounts in case you have more than one for different purposes again. That's called spend E. S. P. E. D. E. E. There's another one out there though. It's strangely enough called cockpit expense and it's best for keeping track of bills and expenses multiple bank accounts. But what's Nice about? It is the best feature of the APP is how integrates your expenses with calendar. So you can see how much you spend on each day so you may go to free days not spend anything and then all of a sudden the weekend comes in foam. We're spending money. The interface for this is not the most intuitive but the APP does have a lot of useful functions. It does have a budget tracker in a graph for charting your cash flow but you can also keep track of multiple bank accounts and account types. You can sink your account with your email and most importantly I think. Is You? Keep track of your bills. You always pay them on time thing. And there's another one It's called money and in in why not Emma O. N. E. Y. is called money. Mo. In why it's best for new users who want to get in the habit of tracking expenses the layout of the main page as all your recent spending in your total expenses and the remaining amount of money to spend all in one place. The APP gives you many challenges to make savings a little bit more exciting. For example you could have a challenge to enter Key in entries for seven days straight net way. You can start to see a pattern of where you spend your money on a weekly basis. And then there's a report tab you can look at your expenses and income over a period of time that you can customize but there's enough options and you can easily add up to three new categories so another thing you can do to save money in retirement. It's fine deals discounts. Now for example if you like the great outdoors by Seniors National Parks Past. I'm able to buy one awhile ago. Less my lifetime. It only had to pay twenty dollars for it and I have used it. Frequently gives you entry more than two thousand sites in parks so that's a good thing to think about. If you're trying to save money on cell phone service you can join an adult child's family plan or take advantage of senior discounts from major carriers currently sprint as a good plan for seniors. Great Call as a Jitterbug phone phone. Great with great palm it offers good rates and simple funds for seniors. That's all me if you're a member of AARP you can get discounts on phones and Service. In addition to other discounts that offer so that's a good investment of money you pay yearly in for another way to save. Money is to trim your financial service species vanguard infidelity are among the competitors for your money if you go that route than guard recently moved to commission free. Online trades on eighteen hundred exchange traded funds and civility has a free CD Free Index Fund. Now so you WANNA consider online banking to or lower zero fees for typical services another way to save money. It's just an audit you're spending regularly Spending daily weekly monthly. I know what you're waiting. Worry monies for him. If you tend to buy on impulse you might WanNa sleep on your decision. You may change your mind the next day many services offer identity protection. But they'll try to auto renew and you WanNa do that magazine. Subscriptions might be another place to cut back. You can visit your local library. Once a month and read articles free. I'm not a big fan of product warranties on items like microwaves toasters or small appliances. Sometimes it's more expensive than than to buy new cheaper to buy a new appliance Spend the money will warranty. Today's away from retailer to make money but just by replacement of the time comes. Microwaves are not that expensive. Probably won't need a gym measure membership if you're moving to a community fitness center and that's included in the monthly fee probably locate a community recreation center post by that. Lets you pay to drop in a much lower rate than a membership. Another way to save money is to scour websites for senior discounts. WanNa remember to ask for discounts at restaurants theaters museums goes for training airline. Travel plans to some airlines when you make a reservation online you have a category senior citizen. And that put that in. And you get the reduction. Right away you could serve as an usher in your local theatre in exchange for a reduced price. Ticket travel tips. Yeah you WANNA travel. You got time now you save for this WanNa do. Roadscholar provides educational trips year towards older adults. If you're single you can ask to be paired with another single person in a double run to save money if you got minds sleeping with someone who may or may not snore. Group called Global. Volunteers provides the -cations volunteers. So if you're going to cruise choose the least fancy cabin gone also saved by booking at the last minute and you want to read by the month at an Airbnb or a place especially if you're thinking of moving to another city state while do an AIRBNB or Vr B. O. Cheaper you WANNA use a single airline credit card with mileage benefits. He can rack up free airfare is he traveled outside the US use a card that does not charge foreign transaction seat. Do that other way to save money. As Shock Secondhand shopping upscale thrift stores can be fun and cost cutting way to find clothing role. You're retired internees. Many business closes she wants. Did many places offered bus trips to thrift shops. And if you sell your extra clothing to secondhand shots we can make money off of that. That long gone you don't need anymore may be demanded of vintage clothing store. That business suit that you used to have to wear three or four times a week. You don't need that anymore. We changed your soup for Polo Shirt. Consignment stores that also sell your clothes. Online are good idea because they usually get a higher price and your jewelry can fetch talk dollar auction house so if your children grandchildren got one at. You may want to go ahead and sell it. Clean out your closet. Please do not rent a storage unit guarantee you will ever look inside a storage unit again. If you put stuff in it clean out your closet you probably have closed near you know you had given him the money you save are selling what you don't need. It can be used to take a nice trip. Want to listen to my recent podcast on downsizing decluttering in minimalism. See if you don't agree with me on that now. The big ways save money. Is The housing costs by selling the family home. It's likely you don't need the space anymore. In the money you save on. Maintenance utilities can be put to good use elsewhere. Many people decide to move overseas. I did a recent podcast retiring overseas and you can get more information on how to choose a place of make that move. Don't WanNa live overseas. Look at other states where you can trim costs. Some states offered retirees that tax breaks on property taxes. I've done several podcasts. On retiree to other cities that are reasonably priced. I interview people who live there and they we could find out what it's like. Florida's pros and cons was the topic of recent. One I did. You should listen to as well gives an overview of the sunshine state may decide to stay in the city or town where you are but you WANNA move to something smaller or less maintenance costs or on one level. You can save on taxes insurance and utilities to us. News and World Report conducts an online survey for retirees in according to their findings the top ten most affordable places to retire right now are Asheville North Carolina Winston Salem North Carolina Grand Rapids Michigan Knoxville Tennessee Chattanooga Tennessee Lakeland Florida Fort Wayne Indiana Pittsburgh Pennsylvania El Paso Texas Greenville South Carolina now according to US News report the ten best places to retire different from the most affordable best places to retire are Fort Myers Florida Sarasota Florida Lancaster Pennsylvania Asha Delana Port Saint Lucie Florida Jacksonville Florida Winston Salem North Carolina Nashville Tennessee Grand Rapids Michigan in Dallas Fort Worth Texas. You some ideas from places you might WanNa start your search. Another way to save money is to plan for your healthcare costs. Likely Your role the Medicare but you know it doesn't cover everything. It's estimated that you probably near need about. Ooh three hundred thousand dollars to cover medical expenses for the duration of your retirement. And that of course depends on how serious the medical issue is and how old you are. And that's been keeping these costs down by exercising eating healthily and don't put off going to the doctor always you can save. Money may be helpful to purchase long term healthcare policy. The younger you. Are you purchase. The better being sick is expensive. Many chronic health conditions are preventable. And you can make healthier choices throughout life which reduces your chances of suffering from diabetes high blood pressure arthritis. You may not want to get a colonoscopy because it's expensive but in our cancer of the stomach and lower abdomen area is not cheap. So take care of yourself. Another way to save. Money is to work part time you can do consulting writing volunteering in so many other options will keep you active and contribute to keeping your health in good shape and meeting other people in interacting keeps you being lonely and there's so much on the Internet that you can do now it's really You can be out on your boat right story submitted. Nobody on realiser never thing you could do to save money in retirement is to sell your extra vehicle. You may no longer need to vehicles if you don't commute to work anymore won't be driving as much so you can reduce your gasoline clause shirt currence maintenance and it can move to a gated community. You can get around in a golf cart nothing you WanNa do to save money as to reevaluate your insurance policies as much. The children are grown. Gone the House is paid off may not need life insurance anymore. We should also review your auto and homeowners. Insurance policies were senior discounts. Winter driving less. That makes a big difference. Another way to save money. Don't be afraid to ask for help. Nonprofit groups are wonderful resource for people over the age of sixty the group. The National Council on Aging is a trusted national leader working to ensure that every person can age well since nineteen fifty. Its mission hasn't changed. Its goal is to provide improve the lives of millions of older adults. Especially those who are still struggling. Nco A empowers people with the best solutions to improve their health even on security and we strengthened government programs that all depend on as we age every year. Millions of people use their signature programs. They have one called benefits checkup. Every letterman mind Medicare matters and another one. This called aging mastery program and they offer online tools to collaborate with a nationwide network of partners. You can learn more about them at N. C. A. DOT. Org One of the biggest concerns that you might want to have a spending a little more time with it's to understand the effects of inflation on your income. Inflation is something most Americans probably don't think about much but it does have a significant influence on their financial lives not only does inflation affect the prices of consumer goods but federal government uses as a benchmark in determining whether they should increase contribution limits to qualified retirement plans or raise monthly social security benefits on individual level. The inflation rate affects. How much retirement dollars will really be worth over time? It can take a serious bite out of your nest egg so you need to understand how inflation may may hurt your retirement strategy. I think it's a must for insurance. Have enough to last through your later years. In terms of the actual dollar amount inflation can cost retirees. The numbers are pretty startling. I think the secure retirement institute constructed a model demonstrating the effect. Inflation could have on the average social security benefit over twenty years. According to its research a one percent inflation rate could swallow up thirty four thousand four hundred sixty dollars of retirees benefit if the inflation rate were to increased three percents at same shortfall would total of more than one hundred seventeen thousand. That's a Lotta money to lose. Healthcare isn't the only item that can drive up retirees expenses. You have housing traveling and if you support adult children that can influence how much you have left to send a survey from the employee benefits research. Institutes found that forty. Five point nine percent retirees spent more in the first two years after they retired than they did in the years immediately. Prior to that twenty eight percent of households were standing hundred twenty percent of their retirement income over that same period which suggests to me that some seniors may be experiencing lifestyle inflation. Ciara make sure you have a good financial advisor in meet with him or her on a regular basis to ensure a prosperous retirement. While thanks for joining me today in learning how to be cheapskate in retirement. If you have any questions please email me move or improve with Debbie at gmail.com or check out my website. Www DOT boomer housing options dot com. And I'll see you next time. Thanks for joining me today.
Big Money Moves Youre Probably Overlooking #305
"To show you how easy it is to file a claim with geico. We hired a soap opera star. Gracious me mike. Or has storm damage. And i had to file a claim go to possibly get worse when my claims team of me for someone else someone less intense. No actually when you file a claim with geico you get your own dedicated claims team. Who promises to stay with you throughout the process. I've never known such loyalty. I can't wait for the second season. Geigo great service without all the drama at qualcomm. We believe in staying connected and you can see us wherever five g helping transform telemedicine supporting remote education empowering mobile. Pc's the invention ages here learn more at qualcomm dot com slash invention age. Welcome to the money. I'm joel into. I am matt's today. We're discussing big money moves. They probably overlooking. Yeah joe. we're talking about big. Money moves in like a lot of areas in her life. If we get a few things writes a lot of the other things will kind of fall into place you know if we prioritize the correct things and in this case if we prioritize our money for just the most impacts it'll allow us to not have to worry about maybe a lot of these other smaller all these smaller things that can sometimes take up a lot of room in our minds and others. Little things added up. I think can sometimes overwhelm us Versus if we're able to focus on fewer things that do actually have a larger impact and mean. That is what we're going to talk about today. The things that have a larger impact to focus on those things yeah all right speaking of large impacts that money can have yeah Recently the lottery was at record highs. I don't know if you saw that so last week. i think the mega millions and man i forget what they're called. There's two different ones. And they were both a national lottery. Yeah everybody can participate. Yeah so i think both of the jackpots were valued at over four hundred million dollars which is pretty impressive and And at that point in time a lot of people start writing articles about it. Oh look at the jackpot on these things and more people. I think probably get excited to play the lottery. Well obviously you. We would say playing the lottery. Not a good idea. Your chances of winning are almost none And and you're just throwing away money when you play the lottery but financially. It's not a good move right. I'm not gonna pooh-pooh somebody if they're like why liked to do the scratch offs i like. I like to pick the numbers. Yeah five bucks in the office pool and you know i deal with my co workers or whatever yeah have you ever y- that being said i feel like sometimes i've heard folks getting lottery tickets and our stockings at christmas like for some people. It's more of a way of life dude lottery. Tickets never has been something that our family has participate. I don't think i've ever bought a lottery ticket. My life and not that i wouldn't necessarily but It's just not something about the same thing here and like we said it's fun it can be fun. I guess but it's not like a financial plan no means definitely not a financial plan But i think the biggest thing about the lottery is kind of the excitement meter. That's gets inside of us if we do play I have played some blackjack in my day. And i understand the excitement of gambling. It is kind of. It's kind of joy to to do that every once in a while so every couple years. There's a there's a casino not too far from where my mother-in-law lives and i'll go. I'll play. I'll put one hundred bucks down on blackjack and it's fun for a couple hours but Every now and then please result again. He's back at the tables isn't here but okay so to get in on that excitement but to use it in a much more productive way. There's a bank out. There called yada savings. Yes and so. I just wanted to let everybody know about this. We'll put a link to it in our show but it's basically it allows you to put money in a savings account and you get paid at a rate of point two percent which is not the best in the world but it's also not the worst but in addition to to what you're getting paid on your funds give essentially a chance to win big prizes based on saving more money and that's the kind of lotto into matt every twenty five bucks you deposit. They will give you a ticket and then you can choose what odds you want. Do you want to enter into the thousand dollar sweepstakes or the ten million dollar sweepstakes. Obviously the odds are much worse if you're entering into ten million dollar sweepstakes but yeah yanno seems really cool. I kind of like what. They're up to making savings more of a game. Yeah opponent as well that yada dumb name. It's not the kind of name that makes you feel confident about where your money's going. It's like i keep my money with yada. It does look like lotto. I wonder if that's part of why they did it. But i wanted to point out though that this isn't an actual bank right is like one of these platforms. That's a cash management platform. But the money that you deposit with them is actually insured by their partner banks and so it is money that has fdic insured so money that you have not account you will not lose or if you do. It's insured right up to two hundred fifty thousand dollars but they have a legitimate partnership with With banks who are fdic insured and so this is again one of these newer cash management platforms that are tapping into different ways. That makes us. They get excited to actually save our money to invest our money That's something that traditional banks aren't very good at but obviously a lot of these newer start. Ups are good at and so yeah. If you're down for earning maybe a little bit less than what a lot of the online banks are offering butts you are enticed by the potential to win cash prizes than checkout yada. Yeah i feel like the lottery. Gets people excited to be parted from their money and yada is getting people excited to save more money. Which is a win win. it is all right. Let's go onto the beer that we're going to have this episode. This one is called holmberg. And it's by four peaks brewing company. This one was sent to us by listener jacob. So jacob sending this one our way we look forward to Letting everybody know what we think about this beer at the end of the episode But matt let's get onto the topic at hand. We're talking about big money moves that people are probably over looking big money energy big money big money and now when people say when they spin the wheel of fortune wheel. Yes so yeah when it comes to feel like everybody's got like a sacred cow or two things that they're not typically willing to try something in our budget we feel like is is set in stone at least in our minds And then in this episode though we're going to ask you to open your mind a bit and let everything that you're currently attached to be on the be on the chopping block because in particular the big stuff that we often see as immovable. Because it's gonna take too much effort to make a change in our lives. Well we often just allow that line item to stay the way it is despite the realization that it would make a real difference in our happiness and in our budget if we did something about it instead of just like sticking with the status quo. Yeah it's also easy to get bogged down with a little stuff you know. The small money moves that often. Get much of the attention like Like cutting out a lot today or the proverbial avocado toast every headline i read man millennial supposedly love it but i'm a millennial not for me but you walk them only seriously. Yeah dude. you're now. I feel like i should. Because isn't aren't a superfood. Yeah they've got like all those great fatty acids that are good for your brain. I'll work on but here's the thing so we're talking about all these small cuts that we can make to our spending. These small money moves. This moves can be pretty gratifying right. They can feel good. Because it's a quick and mostly it's a tangible action that we can take right now. You know we think whoo with very little effort. I just saved five dollars and forty cents But you know while it's certainly easier to forego a to go cup of coffee then to look at the bigger money levers in your life. Those changes are also going to have a far smaller impact. And if you're in a situation that is calling for some bigger changes in your life. Say you wanna significantly ramp up your savings rate or maybe you have to cut back because you were laid off. Well you know. It's tough to make a dent in your finances by just shaving a little bit here and there. Yeah and i think matt sometimes we forego the big money moves like we don't tackle the big money things in our lives that we could and and i think there's a few reasons for that like one. I think it's human nature to let the big things lie dormant keep things as they've been We prefer to try the easy things that impact our lives in smaller less meaningful ways in while it's obviously really important to get the ball rolling so that you have any progress at all. Only focusing on the little things can actually make it possible for us to never end up addressing the larger and more substantial areas of our lives where we can create dramatic results for ourselves. If we would only be intentional in that direction. I think to stick with these smaller changes in her life too because we assume so. It's sort of like you touched on earlier that there are these things in our lives that we just can't change. You know we say to ourselves that. Like i can't move know we can't sell this house. We can't change schools but no many of those things aren't necessarily true. It's it's more likely that you can do those things. But you just don't want to. And perhaps the results would be far better than the status quo. It's important not to shut these possibilities down before giving them some thought and some some actual consideration. Yeah i mean matt we Emily and i. We sold one of our cars just a couple of months ago we talked about on the show and that was one of those things where in my mind that was kind of a sacred cow like families have two cars and it was kind of something i told myself and had it not been for about it that it getting an entire episode to convince our listeners to silicon probably mean in the right direction and i was like it is possible and those are the kind of things that oftentimes we just don't allow ourselves to even think of that as being a possibility because we've told ourselves something else that isn't necessarily true right i think to the smaller things are often marketed or packaged better when it comes to personal finances right like a lot of financial books and articles make it seem as though our money goals can be easily reached through a series of very small changes and like of course a slew of small changes can certainly have a large impact but often to see the most meaningful results. You'll need to commit to changing some of the bigger things in your life. like one. big change can be more powerful than a hundred small change. Yes yeah and not just books right but like apps as well yeah. There is an app out. There that will tell you. Hey you need to sell your expensive house and move to a cheaper part of the country but there not that will help you to round up your savings to where it's like. Hey you just save two dollars and eleven cents today. There are lots of apps that do things like that for you but less though know when it comes to some of these really big moves that we need to make. Yeah and by the way we don't want to hate on the stuff but like like day. We want to focus on the big. It's not saving two bucks and eleven cents. A day can be a great way to to reach them short term savings goals yet but the bigger things man the big things that people are overlooking are the things that are going to have the most impact yet. Do what are the other reasons too. i think. Sometimes we somebody's bigger changes as well as there can be sort of this sense of entitlement you know. Many things are seen almost as a right or at least a cultural norm sort of like you're talking about like all families should have two cars in the driveway. Kinda thing we're also talking about. You know the bias towards homeownership just overall the treat yourself mentality is so prevalent in our culture. And you know we're all about combating that Seeking to curb that way of thinking is going to build resilience is going to build character and strength and best of all two is going to allow us to be more effective with our money in the actual goals that we've laid out for ourselves. I think you know certain things in popular culture. Sometimes they're like sticking points for a society. I point back to on sorry in parks and rec and the treat yourself mentality ever since that episode has become even more reality in our culture so as these i blame you it's made fun of But at the same time. It's like. But i like that you know like like we we. We will make fun of that but then we will adopt it at the same time. I feel like that's what our culture has done to. Also put my wireless audio player. Dj roomba dj rooms But yeah there's some sparkling rick. He's such a good show But all right so there's so much more to talk about on. The big money moves that. You're probably overlooking. We're going to give some specific examples of things that you should be looking at of areas where you could potentially be saving a whole lot more through making a bigger money move. We'll get to some of that stuff right after this talk with no fees or minimums on checking and savings accounts banking with capital. One is like the easiest decision in the history of decisions. Kind of like choosing to listen to another episode of your favorite podcast and with capital. One's top rated up. You can deposit. Checks ain't transfer money anytime anywhere making capital on an even easier decision. That's banking reimagined. What's in your wallet. Terms apply capital one. Na member fdic fifteen minutes could save you fifteen percent or more. Is that shakespeare no. It's geico that shakespeare from one of the some published works whitby not for awakening. Nee give it the berries full fifteen minutes could save you fifteen percent or more. No it's from gyco 'cause they help save people money. Well i hate to break it to you but geico got it from shakespeare gyco fifteen minutes could save you fifteen percent or more right. We're back from the break and we're gonna talk about some of the big impacts that we can have honor money specifically when it comes to a few different categories as it pertains to how we earn money how we spend our money and how we save and invest money but first. Let's let's such earning dude. A big budget wrecker can be not having enough income right but the way most people tackle that problem is to find a side hustle that pays pennies on the dollar compared to what they're making In their regular jobs you know. So many of us myself included are tempted to focus more on side. Hustles inside gigs Versus ramping up your ability to earn more. Were you already are but new and the novel can steal our attention from the things that actually Would more money in but that being said if a side hustle is leading to something maybe more excited about than we would say to go for it. You know a passion project can lead to something. Bigger for example. Like this podcast. This is how this started was something that we started out on the side. Now it's something that you and i devote the majority of our working hours towards But you know exchanging time now for just a little bit of money with a sigh gig that that doesn't have a lot of future. Potential only helps in the short term. You might win the the short-term battle when it comes to earning a little bit more money now but you might lose the overall long-term personal financial war all right. I really wanna give some sort of example from like a history of wars and stuff like that man i. I don't really have wanna give them trying to think of who won an awesome battle but then lost the war. He got any references. I'm not a huge history. Buff although your wife is i feel like emily's been reading a lot of world war two recently. I can't bring her in and she talking about that. But i'm more curious about individuals in history and their stories their stories what they were able to accomplish but yeah i just figured i'd try of yeah instead of delivering groceries in the evening with instacart focus instead on ways to increase which are making at your day job where you're currently working listened backdoor episode with rich jones. I was up so to eighty nine because spending some time learning and working on your negotiating skills could get you much further in the same amount of time than pursuing other avenues in which to try to make some side money. It makes sense to have a conversation to sit down with your manager. Your boss to ask how you can advance of your company. Like how can i take on additional roles or responsibilities. Where do you see me in the next five years. And how can. I accelerate my progress. those are good conversations to have in those can ultimately be more meaningful working on those things inside of your main gig Then trying to take on a bunch of side hustles. That don't pay nearly as well. Yeah it's easy to overlook the earning potential of your main gig of a career or in an industry that you might be in where there is a lot more potential for future earnings than just this little side thing that you're gonna distracted with the new shiny thing off on the side versus the thing that you should really be focusing on all right. So that's earning the the second category touch on is how it is that we spend our money and housing is going to be up. I man the money that we put towards housing. Every single year is massive the the bureau of labor statistics reports that over thirty percent of americans spending is on our housing and so we would encourage folks to look at what you spend on housing every month and start questioning why it is that. It's such a large expense in your life. It's kind of natural that it is right but at the same time for some people there may be overspending on their home and they're not necessarily finding that aligns with values you know but for you know for instance us kate nine. I've talked about this before the show. But we're huge homebodies. It's something that in a way. Our house houses sort of My crappier equivalent like craft beer. But i also like i like our houses well test. You don't get out much only every other monday. It's scheduled but so for that reason. We have intentionally spent a little bit more on our home than i think The most folks more than i know that that you have but for us. It's something that we've done intentionally and we all have different priorities. And that's okay. But i think questioning your housing costs and not just kind of going. The route that most of the people go is important to do especially when This is such a large percentage of our spending every single month every single year. Yeah don't leave the housing stone unturned because it's rife with opportunities to save and when when it comes to getting those housing costs down in a major way off in the first place people go to is keeping their utility costs down. It seems like something that's manageable and you can quickly reduce the temperature thermostat in the winter. And you're going to save a little bit of money on your electricity or natural gas bill that month low flow toilets. Led bulbs again. Those are pretty easy. Simple things to do in order to save a little bit of extra money but we would say that there are bigger fish to fry in the housing department and that could mean a continuing to rent instead of buying in order to keep your costs down living in a smaller space or choosing a costly part of town or even part of the country to live in. Especially right now. I guess people are completely rethinking where they want to live and it could be the perfect time to move from a high cost city in two to somewhere that is a little bit more rural or to a smaller city. We're not as expensive to live every month. And i think in most of the categories in our budget we were able to shave things by dollars and cents when we changed cell phone providers. It's not that it's not meaningful but you're saving twenty forty fifty bucks a month right. But in the housing category you can save hundreds of dollars every single month or you could earn money through the house that you have by house hacking to the tune of hundreds of extra dollars a month. We talked about that back episode. One twenty-one it just is important to note that when it comes to housing. I think it feels like an immovable line-item to so many people but you have options. There are things you can do to reduce the cost or make more money from the asset. That you have. It's not something that's set in stone that you can't do anything about and again getting led bulbs rain and getting low flow toilets. Low flow showerheads. It's not that these are bad things like these are things that will probably save you money over time and we talk about those things tallied evolves. It's just that if you're looking to make some serious changes if you're looking to seriously impacts the amount of money that you're looking to spend and save every single month then you've got to look beyond these small things right. You can't just make some these small tweaks instead. What you need to do is have an higher shifts in the way you think about these expenses in questioning whether or not it makes sense for you to live in that condo or in that house these are the kinds of questions we want you to ask yourself when it comes to making serious changes in your life one of the other big expenses that we all have our a lot of us have our our transportation chaos when most people think about the transportation budget there may be thinking about how much they they spend on gas every month. You know how lower cost by five bucks or ten bucks a month but like honestly. That's pretty small potatoes or maybe you're overly focused on your gas mileage. You're looking at a vehicle. That's like hey. I now thirty five miles per gallon. Who but by the way. I dropped thirty five grand on vehicle in order to achieve that you know and so let's talk about what really news the needle in your transportation budget. When you're buying a car getting a new one will set you back more. Obviously right so look for a cheaper model about eight years ago When you look at the numbers. Roughly one fifth of all new cars sold. Were under twenty thousand dollars dude. Last year it was only one in ten and on top of the median. Price of a new car is creeping ever closer to forty thousand dollars that will seriously wreck budget ability to save money and so if a new car is your cup of tea though. That's okay it's okay if it's if that's something that you value but you know we would encourage folks to to follow this rule of thumb and we're going to call it the next rule Which is that. Whatever you spend on a car. You should be making ten times that amount. Yeah so if you make one hundred thousand dollars a year you should probably be looking to buy a car that costs about ten thousand dollars and that might seem like an aggressive rule and i think matt it kind of is when we're talking about personal finances aren't many people that would recommend that people spend that little on a car if they're making that much money but i think it's pretty obvious that the way that people are spending money on cars. These days is not doing them much. Good it's putting them into debt for extended periods of time. Lots of people are taking out six or seven. Your car loans Just to be able to afford the payment on a new car and the average loan length of new car lease is almost seventy one months the average person then tends to keep that car for about seventy nine months so that means there's literally eight months without a car payment eight months of bliss and then back in the saddle signing yourself up for another car payment and that's just not a good cycle to be anticipatory always have a car payment that You never get rid of hate that for folks Yeah so instead. Look to that connects rule of thumb to help inform. You know how much you can spend on a car and that you know that means you might need by used and in some cases really used depending on your situation but the thing is you really can't find great vehicles in the five to ten thousand dollar range in math. The only car that. Emily and i are driving is a five thousand dollar minivan. I can testify to that. Yeah that's a great option in like you kind of touched on earlier as well we can look to owning fewer cars overall your family and our family. We're both one car families. Selling that second car can seriously come in klatch and again many more people can do this now because of working from homes not for everybody but we made a good case for back in episode two forty two so again. Don't focus on the little things when it comes to your transportation you know. Don't focus on the fact that you can get gas for you know three cents cheaper from at this gas station versus the other one across town instead. We want you paying less overall for your your car costs for your transportation costs and often times that does mean either buying used or maybe even selling a vehicle that you don't really need our matters. There's more big money moves. People can make though and including ways that they can trim their food budget. And i don't just mean trim you can hack it and we'll get to that and more right after this break. Where does your money go every month. Do you even know true. Bill is the easiest way to analyze all of your expenses with true bills. Easy to use app. You can review your spending and recurring charges. All in one place are you paying for subscriptions you forgotten about or no longer need it turns out. Eighty four percent of people have a subscription that they've forgotten about altogether and true. Bill can alert you and cancel them for you straight from the app. Are you over paying for a service. True bill will let you know. They'll even negotiate a lower rate for you true. Bill saves the average user up to twenty percent on their bills and trivial. Gives you real financial tools. That are easy to use that. Help you to control your money. They can even get you a refund. If your internet goes down withdrew bill. You'll no longer wonder where your money goes. You'll be saving it. The average person saves seven hundred and twenty dollars per year with true. Bill get started today at true bill dot com slash money. Take control of your finances and start saving at true bill dot com slash money. That's true bill dot com slash. Money geico knows there are many reasons why you ride from the exciting adventure of the daily commute to the peace of mind. That gyco always has your back with twenty four seven access to claim service and legendary customer service but pamela had one reason in particular. My skin is extremely averse to most fabrics except for the soft buttery feeling of leather thankfully. I found my clan of leather in the bike and community. It's been life changing geigo motorcycle. Fifteen minutes could save you fifteen percent or more all right. We're back for the break. We're talking about our expenses still but we're focusing on ways that we can dramatically reduce. Our expenses and food is another major line item in our budgets. It is easy to focus on the small stuff. Right like cutting out coupons or even going with fancy new digital coupons in order to to save more when grocery shopping no paper embargoed required exactly but again. It's not that the small doesn't matter. It's just that there are far more effective ways for us to trim our food budget than to just going chasing after coupons and actually less annoying ways. Because i don't know anything more annoying than trying to cut out physical coupons and then keep them with you and remember to them to the cashier. Checkout coupons are there any worse way to save money. i don't think there. I think that's like top tier worse ways to save money. You're going to get a lot of hate meal for. Maybe if you like ponds let me know why you love them in the digital ones less of a hassle. I understand. they're not too bad. You can go on like if you. If you shop at kroger samantha. I've used those digital coupons. They're not that bad physical coupons. That's what i'm pushing back against. Their paint was like all right. So but the big stuff really the ways that your food budget is probably getting crushed is food waste and eating out more than you should and also to these days getting food delivered to your door too often right and instead of eating out. Maybe that's what is is hamstring you when it comes to your food budget one of my friends matt recently. She told me that her kid ordered an ice cream cone from dairy queen and had delivered. And i was just thinking one. Wouldn't it be melted by the time we got there and not in january. Yeah i guess maybe maybe not out the window the whole time i guess so and then to wouldn't it cost like five times as much as going down to the it's got to get your ice cream cone directly from the store but I i digress. If you've absent mindedly let that food budget get out of control that could be the main culprit could be getting that food delivery too much i food waste is another really important consideration. It's estimated that thirty to forty percent of food in our country goes to waste. That's hard to stomach for multiple reasons but it means that americans tossing out hundreds of billions of dollars of perfectly good food in their trash cans. And so yeah better meal planning and resolving to eat the food that we purchase is really important Curbing the food waste in our lives and and that commitment alone Being more intentional in that direction is going to have a much bigger impact than clipping coupons. Yeah this is a good time to make a case for leftovers. So here's a little mini episode of why leftovers are so great. It's like your favorite topic racist to me like everybody love. Leftovers will all. I had leftovers for lunch today. So i did as well and one of the reasons that you probably enjoy delivery. So much is because it's so easy. It's so quick to just be able to pull something out of the fridge pop it in the microwave and all of a sudden you've got hot delicious meal. That's one of the reasons why i love is like dude leftovers so there's a lot of times they're better as leftovers than they were originally on the item. Oh yeah i mean like like fried foods sometimes are so great. Microwaves a salad. Not so good as leftover everything else. It's so much better than going home and making like a cold Deli sandwich that right and then of course but the money savings when you able to eat the leftovers instead of just literally you're scraping money into the trash can if you've got food on your plate and and you're not putting that in container and popping it in the fridge man. I'm all about leftovers. Another way to move the dial in a big way. When it comes to the money we spend on on food and groceries is choosing where you shop for groceries wisely shopping at all d. or or legal. If you have one nearby we'll see you. A ton of money compared to shopping at almost any other store in opting for store brands as much as possible as another easy way to save big. No coupons needed do it makes me think of to how When our local aldi was getting a facelift was getting renovated or whatever. It's so much better about that heavily. It's just organized much better. I swear it seems like it got bigger inside. They didn't change the footprint of the place is like better organized. It's more well. It which is yeah writer. You can see everything. Yeah but during that period of time like the other closest grocery store to us was kroger. And i swear. Our grocery budget went up thirty percents because of being you know being forced to go there instead of all the And so i'm just making a case for all the you know you don't have to drive all the way out to you. Know wherever you're costco's located in order to to save big when it comes to groceries it's true but you still can and you know you're not gonna buy a babe. Ruth autographed baseball. That's true so yeah that's another aspect of your budget where you can focus on the little small things. On the periphery. Or you make big moves to actually meaningfully cut back on your grocery budget eating in more actually eating the food that you buy is going to have a big impact on the stuff that gets tossed out trash and on the amount of money that you're spending on food every month amount. Let's get to some big money moves that people are probably overlooking when it comes to saving and investing to by default like people are going to to save more win they earn more and it's been less like we covered those things right which is great so your savings are going to increase when you start to tackle these categories in a more significant way but when it comes to investing. Let's talk about the things that move the needle in a big way there. What people often focus on is finding the funds or individual stocks. That are going to outperform the market. That seems to be something that a lot of young or novice. Investors are interested in like a. Was it fun. That's going to give me. The highest returns for years and years to come or folks also maybe feel like they need to hire someone to help them get started investing and so until they have the money to pay for a financial advisor. The services of someone to help them. They aren't going to be able to get started. I would say this though. That perfect is often the enemy of good. So focusing on those things. There are a couple of other bigger things that matt and i would say you need to focus on first. Yeah one of which is just get started you know instead of thinking about it for year and then maybe talking about it for another year after that. I'm really talking about stuff like this year. I'm gonna do it instead. Just get the ball rolling A small move in an important part of your financial life can have big results over time. And that's because even that little amount that you're able to invest we'll compound overtime in a way that that just saving won't be able to accomplish so if you haven't started investing already starting now and realize as well that you can easily get things started by. Diy saying you're investing like most people don't need to pay for an advisor to help them with her. Investing financial advisers can be good for some people in some contexts We dove into that moore back in episode two six. You know whether or not you need a financial advisor but since getting started is key forego the adviser in favor of diy ing it Oftentimes we over complicate things you know we. We get too preoccupied with performance in the details and making sure we have all the small nuances correct. And yes you do need to make sure that you're doing things correctly but honestly when it comes to something as simple as a roth. Ira like there much to get right. It's like you can put six thousand dollars in there and then just by funds within that account. It's as easy as that jan. You could put it off for years and years and years while you're thinking about the exact right way to go about it and trying to hit perfection when it comes to your saving and investing or you could just get started and get the ball rolling and learn along the way and sometimes those early forays into investing our where we learned the most by doing in ourselves and by actually just getting started and i think to matt one of the other big outside things when it comes to saving investing the massive impact that that high fees can have on returns over time and i. It's something that that most people don't give enough credence to The reason we mention companies consistently on the show like vanguard fidelity an one is because they offer access to well-diversified funds that have low or sometimes even know fees. Yeah pretty crazy and you wouldn't think there'd be much of a difference between like let's say Point five percent fee or point zero five percent fee literally half a percent or one twentieth of a percent but but that can actually easily be the difference of one hundred thousand dollars over thirty five years of investing in a roth in your lifetime. And so while that fee difference might see miniscule that increase fee that you're paying is going to eat into your returns and over time it's actually going to become a huge chunk of money so paying specific attention to the fees that you're paying on any investment account that you're investing in is definitely one of those big money areas that a lot of people are looking. That's right man. So as we wrap this up you know it turns out. I think that a lot of folks focus too intently on the small things and so What we want to encourage folks to do. Is that when you had your next. Say budget meeting It's important to put some of these bigger things that move the needle up for discussion. You know you can save more than you thought you would ever be able to twenty twenty one if you do. So you know when you're trying to make some of these bigger money moves if you're really trying to put a dent your personal finances you can't necessarily just tighten your belt just a little bit more like you might find. This is an instance where you just need a pair of pants like you need to completely swap out how it is that you're thinking about these specific things and instead of just like rationing it you know a little bit more just shaving a little bit off. It's worth looking at it with a complete new set of eyes or at least from a completely different angle. It's sometimes it helps to have the goal that's informing the why behind those things and we talk about that a good bit on the show. But let's say you're in a lot of student loan debt or you're trying to your credit card debts and you want to accelerate the time line. Well these are. The big money moves that they're not just going to get you an extra twenty bucks a month to funnel towards that debt. That can get you hundreds of extra dollars thousand. Yeah to funnel towards that debt so that it's not in your life for a decade come that debts in your life for a year and a half to three years to come and that's the kind of stuff they can get people excited. I think about making these money moves. It's like i'm willing to endure that big shift. Because i know it's going to have this massive effect at slaying this debt that i don't want hanging around much longer and so yeah. Make sure those greater money goals that you have are at the forefront when you're making these decisions it's going to be helpful and it's gonna i think make it more energizing to make some of these big money moves to. That's right man. Yeah absolutely so. Let's shift gears now. Let's get back to our beer. This upset you. And i enjoyed a beer called holmberg. And this is by four peaks brewing company out of phoenix arizona. And did before we actually Talk about the beer. Let's i wanted to mention jacob. So he's the one who sent us these beers. He talked about that during the pandemic. His monthly income was cut fifty percent but he was still able to maintain his his current debt levels without reducing. How much money. He was putting into retirement. He made other changes in his life. That allowed him to stay on top of his personal finances. How does that align with this episode. I'm sure i'm sure. Jacob was probably using some of the lever swedish. He wasn't i. I doubt he was just like. Oh you know some more coupon. Let me Just cancelled my netflix. Subscription get seven more bucks or thirteen it really so maybe you can actually say flakes. But it's not about just these small little tweaks sometimes it takes making some massive changes to your life In order to stay on top of your money so jacob. We're really glad to hear how you're able to make some of those moves yourself This past year. And we we wish you the best in twenty one and in addition to that you us these beer so we are really thankful and appreciative. You doing that for us here. But yeah joel. What were your thoughts on. The spear are man. I thought it was really interesting. I don't think we've ever had a read on the show. I don't think so. I think of how to read. Ip in quite some time it. It's interesting because it combines notes from a couple of different beer styles it kinda has like a brown ale effect with some of the multi stucco on but then it also has like a piney hop character at the same time so it's this really interesting fusion of two different styles and man. I thought it was really nice. It was definitely different. In kind of a throwback beer style. I haven't had in a minute but yeah i really really enjoyed it too. It's kind of a blend of twin an ip a and an amber ale and so what what makes an ip a red is the fact that it has more malts in the grain bill. I think that's right. But basically i mean that's what gives it a little more body than i typically the traditional american ip at least and. It's what gives it a little more of that kind of multi sweetness. It's a really delicious beer. Wanted to point out that the brewery whenever they release beer they They they contribute funds from the sales of this beer to the arizona. Humane society And have onsite. Pet adoptions and stuff like that which is super cool definitely with a lot of folks working from home. We've we've seen the different stories about how adoptions skyrocketed folks. we're looking for companionship. Good for a lot of pets and eat at home. i asked that's super encouraging to hear. And hopefully we'll be able to to get back to more of those going to in person fun events like that as this year progresses who knows what we have in store for twenty twenty one but joel. I'm glad that you and i were able to Enjoy this beer together in. Thanks again to jacob for sending this when our way no doubt ironman. That's gonna do it for this episode for folks that want the show notes and links to some of the things that we talked about what you can just go to our website at how to money dot com. If you've enjoyed this episode if you enjoy the show how the money we would be incredibly grateful if you were to over to apple podcast and leave us a solid rating and review over there at certainly helps the show and it helps to get the message of how the money out there to those who need to hear to best buddies. Talking about personal finance as folks are out there learning how to handle their money better Sajal man that's gonna be it for this episode buddy until next time. Best friends out. Best friends out. I'm alec baldwin. Listen to my podcast. Here's the thing on iheartradio. It's my chance to talk with artists policy makers and performers. I always like to say. I like being an actress but i love being kristen. So i've prioritized that a little bit more than my like desire to spread my wings or proved to people that i can be some dramatic actress. If you like listening as much as i liked talking with interesting people go to. Here's the thing dot. Org and subscribe now on the. I heart app apple podcasts. Or wherever you get your podcasts. Ever wondered how bill gets made into a movie or had a massive the art of cooking. Either way we've got you covered with the two guys. From hollywood podcast allan evans literary agent and talent manager. And i'm joey santos columnists and celebrity chef our podcast and we serving you a fresh perspective of the entertainment industry alongside our favorite celebrity guests as we like to say we don't dish we serve. Listen and follow two guys. Hollywood on the iheartradio app apple podcasts. Or wherever you listen to podcasts we'll talk.
Jobs Friday: Crunching The Numbers
"N. P. R. I'm back in August. The Bureau of Labor Statistics the B. L. S. made an announcement that bothered a lot of our listeners. A lot of people emailed I notice about it. Yup and here is what the bureau announced between March of last year and March of this year the US economy created five hundred thousand fewer. You were jobs than it had reported in the monthly jobs numbers it was a big data revision and this was part of a normal process the bureau updates its figures like this every year her but we do understand why the revisions worried some of you for one thing they just showed that the US economy had not been as strong as we all thought it had been but also some people. I just wondered how could the Bureau of Labor statistics have been so off. Yep five hundred thousand sounds like a lot and you know I mean. Take this show for instance on the I ride each month when the bureau reports how many jobs the US economy created in the previous month you know we have a little celebration always jobs Friday. We we celebrate. We have an Air Horn. We roll out for the occasion know what's. No not yet it yet. It's airborne time. It's Friday reason we gotta wait for the sides right now but you're right. It is jobs Friday of course and the Bureau of Labor Statistics. Just S. reported that in the month of September the US economy created a hundred and thirty six thousand jobs. That's Today's indicator but if that number might be revised later. What should we make of it now. I'm Cardiff Garcia and I'm Stacey Vanik Smith Today on the indicator from planet money. We explain how the monthly jobs number is calculated why those numbers have to be revised and what those revisions tell us about the statistics that we used to understand our economy okay. Cardiff Garcia. It's gotTa be the time I'm sorry guest tackled blow. The Air Horn asked promise other people who who is this person who gets oh the airborne. You'RE GONNA find out after the break. This message comes from NPR sponsor. Tiaa committed to the idea yeah that while most things in life run out from clean shirts in the morning to a favorite dessert at night lifetime income in retirement shouldn't learn more at Tiaa a dot org slash never run out. What's your name. Who are you Ben Castleman. I'm an economics reporter for the New York Times and that is a local. Oh publication where our basic couple blocks over in midtown Manhattan of some note of yeah all right and every month you report on the monthly the jobs numbers. Ben Is my Christmas comes but twelve times a year Cardiff. Do I get to blow the Air Horn. Go for it. There you go. That's the stuff benzes. The jobs report is probably the single most useful look at how the economy is doing every month and that is because the jobs report doesn't just tell us how many jobs the economy created but it also has lots of other things in it like how much workers are getting paid the unemployment unemployment rate and how people in different age groups are doing when it comes to getting jobs we get tons and tons of indicators all month long with this kind of the one that gives us the best sort of fullest picture of how people are doing the economy but then also adds that people should be careful about how they interpret the numbers in the report about how confident they should be in those numbers numbers so to understand why it's important to know just how the jobs report is actually created so we will start with this right now. They're almost one hundred and fifty the two million people employed in the US. I take it that when the Bureau of Labor Statistics tries to put together its monthly jobs report. It does not count every single one of those people. It does not okay. That would be hard. Yeah where's to do this so the monthly jobs report that we all get excited about is based on two. Oh separate surveys the service to surveys the first. One is a survey of sixty thousand households. The government basically calls the people at home and ask them questions like so. Were you working last month. Re Looking for work. How many hours did you work and other questions and that survey is used to calculate the unemployment rate but that survey the household surveys not the one. We're talking about on this episode today. We're discussing the second survey in the jobs report. which is the huge survey of businesses they survey one hundred hundred and forty two thousand businesses and business right that can be a corporation so that's six hundred eighty nine thousand worksites sites okay because some businesses have more than one works there? Were a couple of starbucks is more than one. I've heard I walked by the more than one we all walked walked by more than starbucks to get where we are and the government's data collectors ask these businesses questions like so how many people were on your payroll in. September and what is this survey the survey of businesses that the Bureau of Labor Statistics uses to report how many people are working on the payroll of businesses in the US and are the basic idea here here is at the Bureau of Labor Statistics can extrapolate from the answers in the survey too then estimate how many people are working in the whole country but it is just an estimate estimate the country's too big for the government to survey every single business every single month. I mean there are millions of businesses throughout the United States so when the bureau reports that the economy created one hundred thirty six thousand jobs last month that is just the difference between how many people were working August and how many people were working in September and one hundred thirty six thousand that sounds like a pretty precise number but you should not actually interpret it that way because one hundred thirty six thousand new jobs that is a really tiny amount in economy. Almost one hundred and fifty two million people are now employed so you can get really really close in the number of people employed. Loyd in any one month but if you missed by just a little that's going to have a huge skew in the change between one month and the next so you can see why hey the bureau of Labor statistics would want to know if it's estimates are indeed a little off and why if there is better data that becomes available later data that gives is a more accurate picture of the economy than the estimates from those surveys the bureau would want to revise the jobs numbers with that data and that is exactly what it does and that better data comes from the unemployment offices of individual states because businesses legally have to report information about their employees to the unemployment offices of the estate where they're based our employers report our employment to various different agencies including our state unemployment offices right the stadium appoint office knows how many people work for a company knows when their layoffs knows when they're hires they get what's pretty close to a total count of the number of people who are employed in the economy and we can add up all those state numbers and we can get a much more accurate number then that survey from from the B. L. S. every month the promise to wait. It takes a while to add up all that new data. It's not available monthly unlike the jobs report but the data there from state unemployment offices is with the Bureau of Labor Statistics uses to make these annual revisions to its earlier jobs numbers. They're called the benchmark revisions and it was those revisions the bothered our listeners so much and what those revisions showed was that in the year through March the economy created five hundred thousand fewer jobs than the bureau had previously estimated. This revision was bigger than usual and what it signals is it. The economy was not quite as strong for most of last year as we thought it was based on the monthly jobs numbers now. There's a couple of lessons here just because the jobs numbers from the monthly jobs report get revised does not mean you should ignore them. They're still really really good thinking about it this way. A revision of five hundred thousand jobs sounds big but it's still only represents about zero point. Three percent of the total number of people employed still the revisions are a good reminder that you you can't trust indicators UNSUBSCRIBE I well. I mean maybe not exactly that but that if you're looking at any one indicator you have to consider the bigger context you should try to combine that indicator with other indicators to get a broader more holistic look at how the economy is doing and. Ben Says there's another lesson here too which is that you should always look at the trend within each piston not just a one month snapshot and so we should be looking at the last three months at the last six months for some trends. We ought to be looking over five years and saying let's look at at what the longer run trend is but if we're trying to figure out are we heading into a recession right. Now is the trade war damaging the economy. We don't have the luxury of of waiting three years or five years for the quote unquote right answer. We've gotTA use the best data that we have available to us now and know that there's some uncertainty certainty. They're really talking book here but this episode two. It's like look at all the indicators and by the way there's a podcast that looks at a different indicator every single day and you can entrust them you will you can trust us. You can trust trust with Palladino right right interest any single one any single show you you can trust the individual show only if you listen to all the other shows feel like. I'm a sophomore in college right now. Today's episode was produced by Lena Sun scary fact checked by Nadia Lewis. Our editor is Paddy Hirsch and the indicator is a production of N._P._R.
"Lawmakers from the house and senate have unveiled their compromise version of a popular defense bill but president trump has threatened to veto it. that's because it doesn't have provisions that. Crackdown on big tech. Companies like twitter and facebook a group of republican and democratic lawmakers has rebuked trump. they say historically presidents put aside their own wishes to put the needs of the. us military. I aircraft maker boeing has secured order for its formerly grounded seven thirty seven max jets and bears david shepardson ports. It's from the ireland based carrier. Ryanair the 737. Max had been grounded since march of two thousand nineteen after the second of two crashes that killed three hundred forty six people last month. The faa completed a lengthy review and signed off on boeing's fixes for a flawed flight control system that was blamed in the crashes allowing trouble jet to return to service and now ryan air is adding seventy five. More 737 max jets to its aircraft. Fleet accounts tell you how confident we are in the safety of this aircraft. Ryanair ceo michael. O'leary get it out for. This is the most scrutinized most ordered aircraft history. Neither side would disclose the purchase price. But many analysts say boeing likely gave ryan air a steep discount to secure the deal avid shaper. Npr news rescue officials in. Alaska are still looking for two people missing after a landslide in a town. North of juneau. The mayor of hanes alaska says the mudslide was the size of two football fields. It hit a neighborhood on wednesday after heavy rain and destroyed four houses. This is npr from us. Eighty eight seven here in houston. I'm eddie robinson houston's job losses have slowed but employment is still down significantly from a year ago our own flooring and martin has this update from the bureau of labor statistics greater houston lost more than one hundred and fifty thousand jobs and the year ending in october. That's four point. Eight percent decline to the little better than the six percent. Nationwide decrease seventh straight month of year-over-year job losses for houston the sector with the most losses as leisure hospitality. Houston lost more than forty five. Thousand jobs there especially in food and drinking places other hard hit sectors include construction manufacturing oil and gas and trade and transportation after more than three decades of service to the houston police department officer earnestly al junior was laid to rest thursday after his battle with covid nineteen. The funeral service was held at christ. The catholic church with many honoring lal's legacy during the service including mayor sylvester turner. Because he live. The city of houston is so much greater. The all is the first. Hpd's officer to have died of covid. Nineteen he leaves behind a wife and four children. Nine municipal employees three houston firefighters in one. Houston police officer have died from complications related to the corona virus since the start of the pandemic more local news. It's six oh five. I'm eddie robinson. Knees eight seven support for npr comes from npr stations. Other contributors include. At and t. Committed to keeping students and teachers connected. At and t.
Easy Strategies to Help You Save Money on Groceries
"Brought to you by lucky charms magical mission. Let lucky the Leprechaun take you and your kids on an interactive adventure through the eight magical charm lands to restore magic available on your Smart Speaker just say open lucky charms, magical mission or search for it wherever you listen to podcasts. Easy strategies to help you save money on groceries by Samantha Roseanne. In the past few months Americans found themselves facing an uncertain economy due to the corona virus and many have been cutting discretionary expenses as a result. But there's one item that's especially difficult to cut spending on groceries a household earning an average gross income of seventy, eight, thousand, six, hundred, thirty, five dollars a year spent four, thousand, four, hundred, sixty, four dollars on food at home throughout the year according to. Data from the US Bureau of Labor Statistics that's three hundred, seventy, two dollars a month one of the biggest expense items for the average family and it includes only food. made it home not spending in restaurants while it may be tough to cut down on food at home there are ways to spend less on regular grocery store purchases. We've rounded up some of our favorites shopping at the store look for. Savings in the frozen I'll approach hip. When you're buying frozen is stock up when the deals are on says Far News Tarabi contributing editor next adviser because you can just store them you don't have to worry about waste frozen food prices have also stayed relatively stable compared to other products that have fluctuated during the pandemic. When you can buy generic these storebrand labels can save you anywhere between thirty to fifty. percent off brand prices to Robbie ads be mindful of the fact that many of the more expensive items are at I level to Robbie also suggests look at the top and bottom shelves before you add anything to your card. The most important thing of all, though might be to have a before you even step foot in the store or shop online. This will prevent you from spending on items you don't need. Shopping Online Amazon and whole foods. Amazon prime members can save money on grocery purchases. In several ways, they must have subscribe to Prime I at a cost of one hundred, nineteen dollars per year or fifty nine dollars for students. For example, they receive free delivery on orders of fifty dollars from Amazon fresh. The retailers grocery delivery platform items can be delivered in as little as two hours. Amazon fresh also features regular coupons and deals on some popular household items. People shopping at whole foods. The supermarket chain owned by Amazon also get exclusive prime discounts and deals deals change regularly and vary depending on whether you're ordering online or buying in a store. You can also save ten dollars on your first order a fifty dollars at whole foods with the code save ten WF. INSTA- card INSTA- card is a food delivery platform that says, it's experienced a surge in customer demand during the pandemic. However, it's delivery fees and tips can add up quickly delivery fees. For instance, cards start at three dollars ninety nine cents for orders over thirty five dollars and vary for orders under that price. If you're an instant card express member though which cost ninety, nine dollars annually, you'll get free delivery on orders over thirty five dollars. Your order also must be over ten dollars to be eligible for delivery no matter which type of membership you have. To offset that cost, it's a good idea to start your shopping in the savings section, which shows all of the ongoing deals and coupons available to you. This is a quick and effective way to save a few cents or dollars here, and there another smart Insta- car tactic is to refer your friends to use the service. Every friend you refer, we'll get ten dollars and you'll get ten dollars towards your account as well. You can do this up to five times so you can save up to fifty dollars on groceries by telling your friends about it. freshdirect. freshdirect, which is a grocery delivery service currently available in select areas of New, York New Jersey. Connecticut and Delaware plus Washington. DC, also has a flat fee delivery membership program. You can pay seventy nine dollars for a six month membership or one hundred, twenty, nine dollars for the year. With it you'll get no fee deliveries among other perks you can sign up for a sixty day free trial as well as get five dollars off Tuesday through Friday orders if you choose not to sign up for. A membership, you'll have to pay a delivery fee whose exact amount depends on your area fees start at five, ninety, nine per order. You can also use code welcome twenty-five off and get twenty five dollars off your first order of ninety nine dollars or more no matter where your shopping online it's also a good idea to install the racket in browser plug in which leads you earn cashback on online orders.
The Disappearing Executive Assistant
"What lies ahead for our planet find out on an extraordinary trip with the Wall Street Journal and National Geographic Expeditions Book now at Nat? GO EXPEDITIONS ADDITIONS DOT COM SLASH WSJ or call eight two zero five five six two one. Here's your money briefing. Im Jr whalen at the Wall Street Journal in New York. Look around the office. Chances are there's one kind of CO worker you you see a lot less of executive assistance. The number of secretarial and office support jobs has dropped dramatically in the past twenty years in their place. Many many workers are finding jobs that are more physically demanding and pay less. They were so busy doing more executive expense reports and playing the their calendars all day. Because you're supporting Moore executives than they used to that they don't have time to learn those little preferences of their bosses or relieved bond with them. That's Wall Street Journal. Reporter quarter Rachel financing. She'll explain why job that used to offer a promising career path has been disappearing and she'll discuss the skills that are needed for the jobs that have cropped up in its place. Yes that's next capital. One knows. Life doesn't alert you about your credit card. That's why they've created iino. The capital one assistant the catches things that might look doc wrong with your credit card no catches over tipping duplicate charges or potential fraud. Then sends an alert to your phone and helps you fix it. It's another way capital. One is watching out for your money when you're not capital one. What's in your wallet? SEEK CAPITAL ONE DOT COM for details for decades the executive assistant was part of the circulatory system of the office. It's often a highly sought after job. One that offers security and an attractive salary but things have changed more. Often offices are being run without these workers wall all Street Journal reporter Rachel finds because on the line with us to discuss so Rachel executive assistance were at one time plentiful in the workplace. Yeah we've seen more than a million of these jobs fadeaway since two thousand. It's it's been widespread across the country across industries. kind of in little drips and drabs quietly. What's been the main cause of of the the pullback jobs I would say technology and automation I mean? It's both changed the things that there are for assistance to do. You know there's no like big file file boxes to be loved from storage fewer landlines to be picked up But there's also this sense that I got during my reporting that executives. They're able able to do some of this stuff this set themselves. They'd rather do some of this stuff themselves. They can book their own flights with the click of a button so I think those changing attitudes are also contributing who's most impacted impacted by the job losses. We've seen since two thousand. I talked to a lot of women in their fifties and sixties Who or having trouble finding work? The the data also shows that the number of women with college degrees number people with college degrees just happens to be a very heavily. Female workforce the number of people with college degrees in this profession profession has risen substantially since two thousand so there's kind of the big demographic changes we're seeing in for some who left or lost executive assistant jobs. They experienced experienced a sort of culture shock when they moved to another company. I mean so much of this is about. How work is changing? So these women would go to a new office and they would be open offices without private offices and there wouldn't be as many physical papers and filing cabinets and there won't be landlines and they were kind of a little bit lost and and you mentioned that the people of the executive assistance once worked for could do a lot of the work on their own but that around the clock support system is not there anymore The true that that's what I heard from from people you know at at you why I was told that kind of that personal support was fading away that it was more of just this. Is Your Business Support Court and these are the hours that they work. And it's not twenty four seven anymore. I think for some older leader. That is a shift a Rachel head of the US. Division of the accounting firm E Y Y Ernst and young transform the executive assistant role they moved to more of a remote model so they ended up shutting some of their kind of more traditional executive assistants and who were in the offices usually in close to their bosses through attrition and also through a buyout package and then they started ramping up staffing of these remote assistance students who are in five low cost cities in the US and for many former executive assistants even outside of Ernst and Young. They told you about not only a culture change and being in a different company. But there's a different kind of fabric to the job and the sense that it was difficult to really develop close relationships with the people that they work for. Yeah I mean I talked to assistance. WHO said they just didn't have the time to bond like that anymore? They were so busy doing more executive expense reports and playing with their your calendars all day. Because they're supporting Moore executives than they used to that they don't have time to learn those little preferences of their bosses or relieved bond with them. What have you found out that many the executive assistants who lost their jobs or doing nowadays some of them have been funneled into lower paying parts of the economy? ridesharing traderjoes Just kind of general retail. I heard this from the the folks that I talked with the assistance that I talked to as well as economists that this is kind of the trend. This is where the labour-market funnels these people. So Rachel how do the job losses among executive assistants. How does that parallel? What's going on in? The manufacturing industry is interesting. Because it's actually we've been basically as significant in terms of the erosion there but we don't really hear about it as much When it comes to manufacturing politicians are all over it when a plant closes? It's it's kind of big news but I think because this has been so spread out And so kind of subtle like a few women here. A few assistance there It's just been less noticeable but when you look at the data it's actually very comparable In terms of how many jobs have been lost and how this is transforming. You mentioned that automation is largely to blame blamed for the loss of the executive assistant role in many offices. And when you look into the future seems like a lot of these jobs are coming back. I think that's true. I mean I also heard from an economist that like. They're not going to completely go away like tomorrow. I think. The Bureau of Labor Statistics Projects a about a twenty percent drop in through twenty twenty eight so I think there are still some things for them to do but it's going to be different maybe more intensive tasks it's just going to be different kind of work all right. That's Wall Street Journal reporter Rachel Flynt's ends up joining us. Rachel thanks for coming on the show. Thanks for having me. And that's your money briefing J._R.. whalen in New York for the Wall Street Journal.