0:00

Hey, this is Daniel. Thanks for listening to

0:02

DIY Money. If you haven't already, be sure

0:04

to give us a 5-star review on iTunes

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so your friends know that they can learn

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from the show. Now, enjoy the

0:11

show! Welcome

0:16

back! Ladies and gentlemen, you're listening

0:18

to another edition of DIY Money. DIY

0:20

Money. What's shaking, Logan? Well,

0:22

I have been cooking like crazy and you

0:24

know that you shared your Thai basil recipe

0:26

with me. And I think we just need

0:28

to share how amazing your Thai basil recipe

0:31

is. There aren't too many times I

0:33

ever wake up and think, I could do a

0:35

food truck. Like, never. At one

0:37

time I watched Chef, I think it was Chef. What's that

0:39

movie where the dad and his kid go across the country

0:42

in a food truck? Is it called

0:44

Chef? Never seen it. It's a really good movie.

0:46

It's kind of one of those like, you know,

0:48

not premiere, you find it on Netflix, but it's

0:50

got a good cast. And he's

0:52

a good chef, but he kind of whatever. Maybe down

0:54

on his luck. I don't know, I'm making stuff up

0:56

now. But the kid is

0:58

social media and he, every time they

1:00

stop on this drive, you

1:03

know, he gets the buzz going or whatever. So

1:06

after working, what our listeners

1:08

have to understand is I

1:10

love different

1:12

Asian and ethnic foods. And it's

1:14

like when you find a good

1:16

song and you put it on

1:18

repeat for a thousand times. Go

1:21

to the same place. Very. Like, I'm like that. The

1:23

first time we ever got a meal together, you took

1:25

me to a little Korean restaurant that I never knew

1:27

existed, even though it was right off UK's campus. I

1:29

think I had lunch there three times last week. Legit.

1:32

Like, because when my students ask

1:34

to have lunch, which I'm always

1:36

open, I send them a Calendly

1:38

invite. There's one local. It's not

1:41

like lunch. We'll decide later. Lunch

1:43

at Hanwoo Re. Like the

1:45

server the other day, she's new. She's new. I

1:47

get it. She's like, you're

1:49

here. I was about to do an accident. Oh,

1:52

man, bad. She's like, you're here a lot. And

1:54

I'm like, yeah, almost all every day. Yeah. What's

1:56

what's the problem? Almost every day. Yeah. But

1:58

Anyways, you know, there was a top. The

2:00

place in town here that amazing right?

2:02

They have a signature dish ah in

2:04

our as a signature dish they have

2:06

actually a unique this every day right?

2:08

But one of their best I believe

2:10

dishes is it was called Thai Basil.

2:13

Ah which is it. What I've learned

2:15

is Thai basil is is kind of

2:17

a sauce. Ah you know traditionally

2:19

I was over rice and and you

2:21

be select your protein. It changed my

2:23

life suffer some. I had it as

2:25

like oh my gosh this is the

2:28

best one Best Things I've ever had

2:30

has I is not cheap and so

2:32

being frugal I might I want to

2:34

recreate this and so took me a

2:36

lot of attempts. I.

2:38

Think I make Thai basil? Better.

2:41

Than most places I at any

2:43

you know it's now Arrest me

2:45

Father as be. As we told

2:47

you, of course getting banned I

2:49

could envision a High Bazell food

2:51

truck. Be

2:54

pretty off. I mean think about it. It's

2:56

like Chipotle A simple like you have white

2:58

rice, you have the Thai these or what's

3:00

your protein? what do you want? Yup, you

3:02

know. Oh. Can I get Ah you

3:04

note pad Thai like back of

3:06

the line. This what is it see on

3:08

the door it doesn't say pad thai it says

3:10

hi the easily make what birds at says. Who.

3:13

You are chicken, pork or

3:15

beef. done vegetarian option. Strip.

3:18

On Sundays. Ah, Yours

3:20

maze and and we are You put there by

3:23

the fried egg on top and then oh yeah

3:25

it was phenomenal So I made it for my

3:27

wife. She said. Wow. Where'd.

3:30

You learn how to make This is one

3:32

of the best things I have ever had.

3:34

I told her and our ally and she

3:36

was and I made a grandson outside of

3:38

your friends. Your wife loves the heat Me

3:40

I just am convinced that this is my

3:43

wife's is love the have anger towards people

3:45

to me and virtually the so no question

3:47

about is like the battle zip tell me

3:49

the truth after you go all as quints

3:51

recipe divorce or did you say that I

3:53

did I did say was arrested and then

3:55

she was like another ha poisoning. oh my

3:58

I've heard a girl who do this. The

4:00

First Amendment. Know him. Oh my God of

4:02

he sees Gray. I genuinely love your wife.

4:04

But but it in a different world than

4:06

a multiverse. we don't like each other. That's

4:08

true where where oil and water you Veneto

4:10

very much as years. Orderly. Okay, out of

4:12

like be going on a business, we're going

4:14

on a business trip for fight Fourteen Also

4:16

yates me to that uncertain of it. You're

4:18

going. Away. With went for four

4:21

days presented. With

4:23

a migraine, do stay here and learn

4:25

a little. First of all you have

4:27

to. we're not. We're going for today

4:30

Exactly. So you'd you have to learn

4:32

how to present the whole that know

4:34

I'd be explained that by seems like

4:36

it's not today's it's borders. You leave

4:39

Thursday I don't see a Thursday eat

4:41

at night and then back Sunday as

4:43

but I label Thursday morning at seven

4:46

o'clock them to go to work like.

4:49

As he you said, you suggest that you know

4:51

if she seduces vilify babe I'm gonna quit you

4:53

staring back of his list. Stay, have to do

4:55

it out and will take care of the are

4:57

all six the he and I'll do all this

4:59

stuff. By the way by the way I love

5:01

all of you. But. Man did I

5:03

take some shrapnel when I talked about.

5:06

You. Know making sure that the heat pump

5:08

went down to the to the original,

5:10

gas it out or I mean shrapnel,

5:12

dogen the bullets. Some guy who wrote

5:14

and I love like you're from freaking

5:16

buffalo, Wear a sweater hour flight. all

5:18

I'll put that's again a guy like

5:20

that would be a body like seriously

5:22

doubt your friends you're going after it.

5:24

For listeners out there you have to

5:26

go back. A couple of they do.

5:28

They know exactly where I get our

5:30

we have a loyal following and if

5:33

you just started this one now you

5:35

have to go back. Talked

5:37

about for Logan seat situation or I.

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We do need to get to the

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actual subject matter today. Our first of

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6:27

people? Oh yea I really like your

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You'd you'd What do you like to interview

6:34

people on like you'd have never Last year

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of my it's like such a call and

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league you don't like. Listen was your podcast

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like I do. You come up with the

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mature and other diseases is ten minutes like

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fifteen at moat. Like just listen to it.

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Your Android and I I don't know

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a personal finance with gold. Personal.

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Finance us right? That's right way back. Ah

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ah, I don't know who would type in

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personal finance, so I think they they've been

7:28

budgeting. Like. Budgeting or money? I think

7:30

we're join in on Monday. Money to up

7:32

or I ah we got a question. Today

7:35

from Alex. Water Your

7:37

got the why. Video

7:40

I'm on again. This is Alex from

7:42

Rochester New York. My wife and I

7:45

are thirty three and a paid off

7:47

all their debts except our house. We're

7:49

about fair saving up or three to

7:52

six month emergency fund require an R

7:54

next contributing fifteen percent of our gross

7:56

income to Ruff retirement accounts after these

7:58

contributions on was. All regular monthly

8:01

budget items and three hundred hours

8:03

of on play A To say

8:05

contributions will still have about nine

8:07

hundred hours of margin left in

8:09

our monthly budget. My question as

8:11

to utilize this nine hundred dollars

8:13

a margin to increase our A

8:15

to say contributions to the annual

8:17

max and and put the remainder

8:19

toward our mortgage principal or should

8:21

we leave A to say contributions

8:23

a three hundred dollars a month

8:25

where they are and put the

8:27

remaining our margins toward paying off

8:29

the remaining principle. Of our mortgage for

8:31

contacts we have two hundred forty seven

8:33

thousand of more responsible standing at four

8:36

point six two five interest rate looking

8:38

for here that thanks. Okay

8:42

Alex are fascinating. Question

8:45

is you know allocation

8:47

of margin is ah

8:50

is always tricky. However,

8:54

What I'd do. Necessarily.

8:56

Like and maybe I missed it.

8:59

Ah, it is. You're just saying.

9:02

He. Off mortgage principal. Or.

9:05

The H and say. Like why.

9:07

Not anything else like why, why, why,

9:09

or why not eat, You know, Why?

9:12

Not anything else says it's is a cinema. One

9:14

thing I I think about so obvious how many

9:16

ads more color that moment. I'm a decently I

9:18

don't normally do but I mean Logan What. What?

9:21

See you! Let's start with you and your

9:23

thoughts from from his question and will go

9:25

from there. Yeah, obviously we talk about paying

9:28

off a mortgage a lot and I think.

9:30

Typically. When we talk about that, it has

9:32

to do with goals and what people desire to

9:34

have. His is how much to pay off on

9:36

a mortgage. So we'll talk about that in a

9:38

second. But when. We're. Talking about the Aegis

9:41

A I do love the to say I talk

9:43

about A To say all the Time is the

9:45

only vehicle that has a triple tax benefit. You

9:47

can get a deduction when you put the money

9:50

in his long as you don't use that little

9:52

debit card and go spend it all time. You

9:54

can save that money. You can invest that money.

9:56

That money can be normally invested in Smp. Five

9:59

hundred that can. Investor. The

10:01

long term in grow significantly. At

10:03

some point you can take that money

10:05

out, reimburse yourself for previous medical expenses.

10:07

In then you're. Taking. It out

10:09

tax free as well. so the only vehicle

10:12

that has that triple tax benefits if I

10:14

were you. I mean I don't know all

10:16

your goals right now but I would max

10:18

out the to say I think that's and

10:20

a really good logical step after you're putting

10:22

money into a four, one K, or retirement

10:24

accounts to start matching out what you're doing

10:26

into Nhs. A. When. It

10:28

comes after that. I think that's when you

10:30

open up a lot of different options, so.

10:33

Just. Doing. Paying. Off

10:35

the mortgage I do think is kind of. In

10:38

horror, narrow cited because there's a lot

10:40

of other options you could do. Maybe

10:42

you're not maxi out the amount they

10:44

are putting into your four o one

10:46

k their retirement accounts. Maybe you should

10:48

start opening up a simple brokerage account

10:50

that is a brokerage account or a

10:52

joint accounts that you're putting money in

10:54

each and every month that is growing

10:56

for medium term goals or longer term

10:58

goals or for retirement. But it's in

11:00

a taxable account versus a retirement accounts

11:02

that a lot of different avenues to

11:05

go and typically this depends on what

11:07

your goals are. Like if you have

11:09

been outstanding, Huge goal that you want to

11:11

be debt free from your mortgage. Okay, well

11:13

then maybe that additional. Money

11:15

each month goes towards the mortgage If you have a

11:18

goal that. Actually, We're gonna sell our

11:20

house and a few years and we're going to buy

11:22

another house and we want to. Upgrade

11:24

We need a bigger down payment will then

11:26

maybe that money should go into an account

11:28

that's going into treasury bonds or money market

11:30

that is growing up for those. medium term

11:32

goals are short term goals, so there's a

11:34

lot of different avenues to go once you're

11:36

in that area. but I recommend looking at

11:38

that age as A and trying to max

11:40

that our first, but you need to do

11:42

some due diligence. You make sure they are

11:44

you just say is able to be invested,

11:46

that there's not some massive amount of money

11:48

that has to stay in cash and Hs

11:50

A and that you can cover your medical

11:52

bills when they come up. That's really. Important, you

11:54

have an emergency funds we should be able to,

11:56

but if you have medical bills come up the

11:58

the way to use that. They a is to

12:00

be able to cover those out of pocket and

12:03

that eventually reimburse yourself with a to save once

12:05

I know. That's. The

12:07

path I thought you would take. so

12:09

that's great I wanted. I just want

12:12

to provide some personal. Thoughts.

12:14

And anecdotal thoughts: are you close?

12:16

A Nurse A aware of hours

12:19

on a session and again this

12:21

is gonna be different for every

12:23

one race but in my personal

12:25

journey. I'd. I needed. I

12:28

felt like I wanted to check some

12:30

boxes first and that's the entirety behind.

12:32

Or that the rationale behind and and

12:34

it's in it's commonplace weren't Where are

12:37

the only ones who have this method?

12:39

But you know, fast cash, emergency fund.

12:42

A paying off you know, a ancillary

12:44

debt, auto, student loans, etc. all the

12:46

while sort of funding for retirement specially

12:49

the match. You don't want to give

12:51

up on that. And and there's some,

12:53

There's some. There can be some nuances

12:55

when it comes to say. Max thing

12:57

out your your four o one k are

12:59

your retirement accounts. When you're staring at a

13:01

twenty seven percent credit card like you know,

13:03

I'm gonna probably say whole way to forget,

13:05

how about you just get the match Because

13:07

that's one hundred percent return on your money

13:09

and I don't care for three percent. Just

13:11

do that and put everything else against the

13:13

twenty seven percent credit cards. I mean there's

13:15

some nuances their okay, but. When

13:18

you're in a situation like you

13:20

are which you've got all those

13:22

boxes check I'm assuming and you

13:24

run some math to say I'm

13:26

putting enough in my retirement account for

13:28

my future, So I'm I'm providing

13:30

for my inflationary costs in the

13:32

future because let's let's not forget why

13:34

we invest. We had their so

13:36

that are purchasing power today will go

13:39

up over time and be able

13:41

to handle are purchasing power in the

13:43

future when we don't have retirement

13:45

or was are when we don't

13:47

have. A working in com. That's why

13:49

we invest. We don't investors to ride

13:51

Amazon up one hundred points or to

13:54

hit a big you know, I'd Tesla,

13:56

Iran or is none of that nonsense

13:58

like that's fun when it. Happens, but

14:00

that's not why you invest you

14:02

and you put a dollar an his

14:05

account today so that you're purchasing

14:07

power grows with inflation. overtime. That's it.

14:09

And to been use that. Purchasing.

14:11

Power to purchase something to use. It is but

14:13

in the future single. For. Me

14:16

when I checked those boxes.

14:18

My next. Box. To

14:20

check. Was. To be debt

14:22

free. Total. Debt free.

14:25

It. Was what was important to me.

14:27

Now I have some. I have

14:30

some personal aversions to death that.

14:32

Many people I know

14:34

it's they are fairly

14:37

on. The healthy comes

14:39

from a money blueprint

14:41

growing up watching debt

14:43

destroy people's so my

14:45

next real strong methodology

14:47

wasn't more retirement money.

14:49

It wasn't even taxable

14:51

investment money. It was

14:54

be debt free So

14:56

every a dollar of

14:58

margin we had. Went.

15:00

To our home, paying off our

15:02

home, Now. Many

15:05

people would look at that, run the

15:07

math, and go out with Dom You

15:09

at it. I think I think my

15:11

mortgage was two and a quarter or

15:13

something. or it was absurd. It was

15:15

a ridiculously low rate. Secularists paying that

15:17

off and looking at the math over

15:19

last ten years you would go Oh

15:21

my goodness. Quit that. The opportunity costs

15:23

you lost by paying that off. Not.

15:26

Having that investment was huge. I

15:28

would argue the following: I

15:31

would have never bought a covert

15:33

lows. With. With

15:35

to hold all you know. No

15:38

fear. I. Would have never

15:40

bought. Stocks. When

15:42

they were even on sale at

15:44

the end of Twenty Twenty Two

15:46

without fear, I did that both

15:49

of those situations without fear. because

15:51

we have no debt. I can

15:53

wait, I have ample time. My

15:55

point is this: I've become a

15:58

much better investor. Having no. debt.

16:01

Hard to measure but I

16:03

know and I have the confidence of that. So

16:06

it's your goals and your

16:08

personal choice how

16:10

to handle those next steps. Sounds like

16:12

you're on a great path Alex. Bravo

16:14

to you. Bravo for sending in the

16:16

question. Hopefully you found some value in

16:19

our answer but again it's a

16:21

at this stage in the game it's

16:24

what's personally important for you.

16:26

The other thing I'll caution you and I'll

16:28

end here is don't change that in the

16:30

midst of the storm. When markets

16:32

are down and you've invested

16:35

and you go and you look at

16:37

these accounts that are down and you're like oh my why

16:39

did I do it was so dumb I should have just

16:41

paid off the house I can't believe that. Well

16:43

let's just do it let's pay it off now let's

16:45

sell everything and pay off the house now well we

16:47

know we can do it. More than likely that's the

16:49

bottom of the market. That's you making

16:51

a terrible decision in the midst of a storm

16:54

because you didn't plan ahead. You

16:56

don't build the shelter when it's

16:58

raining. You don't put the raincoat out when you're

17:00

already out in the rain for 10 minutes. You

17:02

do that before you walk outside. Great

17:04

question. Hopefully again you found

17:07

some value in that. Thanks so much. All

17:09

he did was send us an audio file

17:11

to podcast at DIY money org and now

17:13

he'll get a $25 Amazon gift card. Those

17:15

two boys sure

17:18

are heroes to me. Remember friends secret

17:20

to wealth is pretty simple. Live on

17:22

less than you make. Invest the rest.

17:25

Do so for a very long time. Make it

17:27

a great one.

17:40

Thanks for listening to this episode of the show.

17:42

If you want your questions aired on the show

17:44

be sure to send that to us and you'll

17:46

get $25 Amazon gift card. This

17:49

show is for entertainment and educational purposes

17:51

only and is not intended as personal

17:53

financial advice. Before making any financial decision

17:55

please do your homework and consult a

17:58

financial advisor if needed. Thank

18:00

you.