Friday Flight - Digital Nomad Fatigue, Treat Culture, & Retired Renters #1026

Summary

How to Money – Episode #1026: "Friday Flight – Digital Nomad Fatigue, Treat Culture, & Retired Renters"

Date: August 22, 2025
Hosts: Joel & Matt

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Overview

In this weekly "Friday Flight," Joel and Matt unpack the financial stories and trends making headlines, providing practical tips and critical takes on personal finance behaviors and systems. This episode covers frustrations with insurance fees, creative ways to save on back-to-school costs, the hidden downsides of the "digital nomad" lifestyle, generational approaches to spending on treats, and why older Americans are increasingly opting to rent. Along the way, they highlight the importance of intentionality in financial decisions, dissect the latest in mortgages and investing, and debate the true definition of success.

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Key Discussion Points & Insights

1. Insurance Fees & Autopay Frustration

[03:16 – 06:13]

• Listener Ricky’s frustration with USAA’s $3 fee for not enrolling in autopay reignites a conversation about the hidden tactics companies use to nudge consumer behavior.
  • Joel: “They're charging me to give them money. And I get how that's frustrating as a customer.” (04:09)
  • The hosts empathize, noting how autopay ensures on-time company payments and may cause customers to become less likely to price-shop.
  • Cost-benefit analysis: Sometimes credit card convenience is outweighed by the vendor's fee.

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2. Back-to-School Tips: Thrifting, Pawn Shops, & Lunches

[07:11 – 11:57]

• The hosts highlight the value of "shopping your closet" for school supplies and considering thrift stores or even pawn shops for items like musical instruments and electronics.
  • Matt on pawn shops: “Musical instruments crossed my mind at all to look into a pawn shop for a musical instrument. Super smart.” (08:50)
• Packing lunches is often healthier and more affordable, especially with food inflation.
  • Joel: “Peanut butter and jelly sandwich is the cheapest sandwich, roughly 44 cents per sandwich.” (10:30)
• Shopping at value-focused grocers like Aldi is recommended—90% of products are private label, keeping prices low.

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3. 529 Plan Choices & College Savings

[12:51 – 14:48]

• If you've stabilized your own finances and want to help your child with college, consider the best 529 plans, not just your home state's.
  • Joel: “You don't have to use your state's plan…Morningstar recently released its annual rating.” (13:17)
  • States highlighted: Utah, Alaska, Illinois, Massachusetts, Pennsylvania.

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4. Work-Life Balance & the Cost of Extreme Success

[14:48 – 19:29]

• Hosts react to a Wall Street Journal op-ed arguing work-life balance leads to mediocrity. The piece profiles a young billionaire who sacrificed health and social life for wealth.
  • Matt: “Success comes at a high price…He gained 80 pounds in college. Think about the social sacrifices that he made.” (16:50)
  • Takeaway: It’s important to revisit your definition of success and adjust goals as you grow.

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5. Digital Nomad Fatigue: The Evolving True Cost

[19:29 – 21:37]

• The digital nomad lifestyle, once synonymous with “success,” is losing its appeal for many.
  • Downsides include: difficulty building community, travel burnout, relationship strain, and unexpected isolation.
  • Matt: “You see it once and you think…this is everything. But we are constantly, ever evolving individuals…we need to spend more time evaluating whether or not the goals that we have set out for ourselves are still the goals that we want to achieve.” (20:28)

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6. Gen Z, “Treat Culture,” & Intentional Spending

[21:37 – 25:22]

• The New York Times critiques Gen Z’s “treat yourself” spending. Joel and Matt point out that this mentality isn’t new or generationally unique; rather, the real pitfall is busting your budget for these treats.
  • Joel: “Put the splurge in your budget. Don't bust your budget for it." (23:29)
  • Both stress intentionality—savoring meaningful splurges while prioritizing financial basics.

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7. Ludicrous Headline: YieldStreet’s Downfall & Dangers of Alternative Investments

[29:22 – 33:11]

• Discussing CNBC’s story on investors losing their shirts via alternative real estate site YieldStreet.
  • Joel: “They certainly made losing money available to all, Matt. They said, we'll democratize you actually losing your life savings.” (30:12)
  • Caution: Stick with mainstream index investing; high-yield alternatives come with high, often hidden, risks.

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8. Adjustable Rate Mortgages (ARMs) – Are They Back?

[33:11 – 35:54]

• Applications for ARMs are up, but today’s offerings are less risky than pre-2008 versions.
  • Consider ARMs only if the rate advantage is significant and you have short-term housing plans.
  • Matt: “A 7:1 or a 10:1 ARM isn't actually as risky… but are you going to be in the same home? Think about how long you’re staying.” (34:54)

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9. Retired Renters: A Growing Trend

[35:54 – 40:10]

• Older Americans are increasingly choosing to rent, prompted by high mortgage rates and home values.
  • Joel: “Buying a home isn’t a slam dunk, smart move for everyone at all times. Neither is renting.” (36:45)
  • Many retirees prefer predictable, maintenance-free living; others value the equity and community of staying put.

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10. Lease Purchase Agreements: Beware the Gray Area

[40:10 – 42:42]

• Lease-to-own agreements are on the rise but are full of potential pitfalls:
  • Legal protections are scant; tenants often shoulder owner responsibilities.
  • Matt: “Lease purchase agreements. Me no likey.” (42:42)
  • Hosts recommend negotiating directly with landlords for a traditional sale if possible.

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Notable Quotes & Memorable Moments

• On autopay penalties:
  "They're charging me to give them money." – Joel (04:09)

• On work-life balance extremism:
  "Success comes at a high price...Think about the social sacrifices." – Matt (16:50)

• Digital nomadism reality check:
  "It can feel a little selfish…which can ruin the experience." – Joel (21:26)

• Treat yourself, but wisely:
  "Put the splurge in your budget. Don't bust your budget for it." – Joel (23:29)

• On alternative investments failing:
  "They certainly made losing money available to all…they said, we'll democratize you actually losing your life savings." – Joel (30:12)

• Lease-to-own skepticism:
  "Lease purchase agreements. Me no likey.” – Matt (42:42)

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Timestamps for Important Segments

• [03:16] Listener rant about USAA insurance fees and autopay tactics
• [07:11] Back-to-school thrift & pawn shop hacks
• [10:30] Cheapest school lunch options—a PB&J for $0.44
• [12:51] How to choose the best 529 college plan
• [15:51] The cost of extreme work-life imbalance and health tradeoffs
• [19:29] Digital nomad fatigue—why the shine is fading
• [21:37] The myth of Gen Z treat culture; the reality of intentional spending
• [29:22] Crowdfunded real estate cautionary tale: YieldStreet
• [33:11] Adjustable Rate Mortgages: good or risky?
• [35:54] Retiring and renting—when does it make sense?
• [40:10] Beware the lease-purchase housing trap
• [42:42] Matt’s blunt assessment: “Lease purchase agreements. Me no likey.”

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Overall Tone

The conversation is lively, supportive, and tinged with humor and authenticity. Joel and Matt break down complex financial topics in jargon-free language, sprinkling in real-life anecdotes, dad jokes, and self-deprecating stories. The focus throughout is on empowering listeners to make intentional, thoughtful decisions unique to their situation—without shame, but with a healthy skepticism toward industry trends and “shiny objects.”

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This summary covers the key content and actionable insights from the episode, allowing listeners (and non-listeners alike) to engage thoughtfully with the themes and advice discussed.

Transcript

[A]

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[B]

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[A]

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[B]

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[B]

Welcome to how to Money. I'm Joel.

[C]

I'm Matt.

[B]

Today we're talking digital nomad fatigue, street culture and retired renters.

[C]

That's right, man. This is our Friday flight, our weekly roundup of the stories that made their way through the different publications out there. And we're going to tackle how they pertain to to your personal finances. Happy Friday everyone. This is the best day of the week.

[B]

I like Fridays.

[C]

It's the best.

[B]

Yeah.

[C]

What's your second favorite day of the week, Joel?

[B]

Do you have favorites?

[C]

You don't have them immediately ranked in your Sundays. Sundays are nice.

[B]

Are great. They feel less chore oriented than Saturdays.

[C]

You get the Sunday scaries.

[B]

No.

[C]

Yeah.

[B]

Like worried about going back to work the next day?

[C]

Yeah.

[B]

No, I get excited. Largely because you love what you do.

[C]

Well that we have a fantastic time.

[B]

Here before we go to coffee for coffee immediately on Mondays. Mondays are our coffee day and so that adds a little.

[C]

Do you think that has alleviated any of the stress that you might normally feel on Sundays? You're like well, at least I get to go get a great coffee with Matt in the morning.

[B]

I'm not usually stressed anyway, but it does add a little excitement to my Monday.

[C]

Do you think we should have more stress in our lives? I feel that there's just a whole lot of anxiety and stress in the world and I don't know, I feel like we have been able to take a proper view. Is it.

[B]

I've got three kids, I've got my fair amount.

[C]

It just seems like there's more and more existential threat or stress that people are just soaking themselves with. I don't know. Like, we talk a good bit about politics personally, but there's a difference between talking about it and letting that fuel your deep seated fear and anxieties. And we're just talking about feeling political.

[B]

As a culture right now. And that's why we try to stay away from it on this show, man.

[C]

That's right.

[B]

We've got to get a politics pretty zone.

[C]

We got zero politics for our Friday flight today.

[B]

I mean, sometimes policy, but not politics. Okay, let's quickly though. I wanted to mention a listener. Ricky emailed us this week and he was really upset, Matt. He was really upset.

[C]

Ricky James.

[B]

Not. Not at you. Wasn't mad at you. Wasn't mad at me either. Fortunately, Ricky mentioned he's with USAA and he's got an insurance policy through usaa. And when you actually look at the Consumer Reports rankings, USAA rates as one of the top insurers year after year after year. So that would seem to be a good thing.

[C]

They rank high when it comes to customer satisfaction.

[B]

Yeah. Yep. But USA is really pissing Ricky off right now. Okay. He is not happy. Harsh words. It was a very long email about a $3 fee that's charged to you if you don't sign up for autopay. So usaa, he said, is trying to. I think he, I wrote this down. He said they're, they're charging me to give them money. And I get how that's frustrating as a customer. And it's not even for paying with a credit card, which would make make sense. Right? There's a fee that they incur when. If you pay with a credit card and so they pass that on to you oftentimes. But no, no, no, it's, it's not because of that. It's just because USAA really, really, really wants Ricky and every single other person who works there to sign up for autopay. And if you don't do it, they're going to Charge you money. I get why that's frustrating. What was your take?

[C]

I don't have a take because I didn't get that email.

[B]

Oh, you didn't see it? Oh, was it just to me?

[C]

Maybe it was just to you.

[B]

Okay. Weird.

[C]

Unless my email filter that one to spam, perhaps I would say no. I would be frustrated too. Yeah. I guess my question would be, why does USA want folks on autopay? Is it just for them to be price insensitive? That's exactly what I'm thinking.

[B]

It must be. I mean, obviously they're not going to come out and say it, hey, here's why we're doing this. But the reason I think you're right that they're trying to get people away from manual payments is because one, they're assured of getting their money on time and then two, they're saying, oh, set it. If we get it. Yeah. Then Ricky and everybody else is going to be far less likely to shop around because it's just going to get automatically taken out of that account.

[C]

Well, I guess that's. I mean, yes. So I agree. I would be frustrated if that was me as well. But that's a good argument for just tracking your spending. Because even though I've got certain things on auto like this makes me think of my. We pay for lawn care, yard service. The guys that come out and cut the. Cut the yard and they started charging to use a credit card, which I get because that is an expense that small businesses, that's an expense that they are like, hey, if you want to pay the credit card, it's tough for us as a small business to do that. But even still, every time I see that charge, it makes me a little upset. I'm just, I need. What I need to do personally though, is sit down and maybe look at several different businesses that I've got set up on autopay to see how much they're charging to use a credit card and to weigh the pros and cons as to whether or not it's worth it. Maybe I need to set up an ach, which is most likely what I need to do in this case. I doubt I'm making enough on a recurring, day in, day out, 2% cash back.

[B]

Yeah.

[C]

Because it's typically a 3% charge.

[B]

Right. So you're losing a little bit on the spread.

[C]

Yeah.

[B]

Well, Ricky, we feel for you and usaa. Don't, don't love that you treated your customers this way when normally I would say great organization. Consider getting your insurance there based on the longevity of their positive reviews from a slew of people, including organizations like Consumer Reports. But it's just a bummer to hear that they're instituting an unnecessary fee. And the cool thing is. Or the interesting thing is that Ricky found out is even with this autopay thing, he can still go in there and manually pay if he wants to and not incur a charge like, ahead of the autopay payment. Still, it's just a frustrating thing for someone who's been a longtime customer. All right, Matt, we've got a bunch to get to though on the Friday flight. Let's talk about school being back. And is it back for most people at this point? I think at this point we're getting there. Maybe northeast is after Labor Day for some of those folks. Typically.

[C]

Isn't that crazy?

[B]

It's crazy. It's like a month after us where we are.

[C]

We start school very early. The kids have been in school for like three weeks.

[B]

Yeah, it's insane.

[C]

Which is crazy.

[B]

Yeah, it really is. Well, and anybody with kids knows it, like, summer super fun. Also crazy. And even though it's tough to see summer go, the predictability of the school year can be nice. Like, I was really looking forward to getting back into a rhythm. It's nice to be back in that rhythm.

[C]

Totally agree.

[B]

It's nice to break the rhythm and then it's also nice to get back to it. But school also means buying school supplies, figuring out what to feed your kids for lunch, and on the first thing, buying school supplies, I would say, look at what you've already got on hand, Matt. We were able to find a binder that was gently used right. From the previous year. We lunch bags that were and bent go boxes or whatever to pack their lunches in. Those are things that we already had on hand. We don't have to buy those things.

[C]

We're not going to re up. I will say we had to. Oh, maybe this is. Here's a school supplies tip for. We had to purchase a new backpack for one of our kids because her backpack wasn't big enough to handle, like, the big binders.

[B]

Oh, yeah.

[C]

And so I'm of two minds because on one hand, our little dude just started and we went ahead and bit the bullet and got him the full size backpack. But it's like, as big as he is. But I also know that that's gonna last five, six years most likely. But with our. Yeah, one of our daughters, we had gotten her just one of the smaller ones. And it's a Perfectly fine backpack. Not torn. Still works.

[B]

She.

[C]

She couldn't fit her 3 inch binders in there that the school's making her.

[B]

It's amazing how much kids are supposed to tote around at schools these days.

[C]

Just makes them stronger.

[B]

Let's hope so. It's like rucking, but it's.

[C]

Yeah, yeah, exactly. Just in between the water fountain and the homeroom.

[B]

I'm curious to hear your take on this. CNN had a story about pawn shops and how pawn shops are a good place to get back to school supplies.

[C]

I totally saw that and I would have said, what are you talking about? Musical instruments. Crossed my mind at all to look into a pawn shop for a musical instrument. Super smart.

[B]

So yeah, if you're just a phone and your drum set there.

[C]

Clarinet, whatever else. Oh my gosh. Yeah, I think that's a fantastic. Or even laptops. So there's a whole lot of electronics in there too. I know a lot of schools provide. Oftentimes will provide because they. They had to spend all that stem money, all the school stem money on something. They can't spend it on salaries. So you spend it on equipment things that you don't have to main. You got to maintain it. But it's not something you have to pay out every single year.

[B]

Yeah, supplies. So thrift stores I think are another good place to turn especially for. For clothing for your kiddos. Heck yeah. And food. Let's talk about food prices. The cost of lunch has risen. That's just inflation. Right. And inflation at the grocery store in particular. Some school districts have been raising the cost of their school lunches, although obviously, like needy kids are typically eligible for. For free or greatly reduced lunch prices. But. But the school lunch is like, I think it's $3.25 where we live.

[C]

Nice. It's more than that for us.

[B]

It's closer to five bucks for the.

[C]

School lunch, which is one of the reasons we ain't playing that game.

[B]

Well, you typically pack your kids lunch. We do the same. And I think that is a way to save some. It's not like you're saving a ton. But the big thing I think in packing your kids lunch is you're able to give them something that is much healthier typically than what you're going to get at the school. And Len Penzo, who is a personal finance writer, he does this survey every year of the cost of a school lunch, which I don't know, I just think it's awesome. And he found that the peanut butter and jelly sandwich is the cheapest sandwich, roughly 44 cents per sandwich created.

[C]

That's a deal. Yeah, I love PB and JS.

[B]

Me too. And then those denser foods, I think they might not be the coolest foods. Right. The carrots, the apples, the almonds and that sandwich, I think that's going to help people reduce the cost of their kids lunch and help their kids get full on real actual foods. You know, I mean, I think the.

[C]

Absolutely.

[B]

It's all that stuff in the most. The center aisles.

[C]

Yeah, yeah, yeah. The opposite. Absolutely true chips, individually packaged snacks. That is going to ramp up the cost of those meals. And here we go. Matt getting on his soapbox. Where you shop matters as well. Aldi is a fantastic choice. And I saw that more and more how to money listeners have access to an Aldi there to become the second largest grocery chain behind Walmart over the next couple of years.

[B]

We're just back here cheering Aldi on. Right.

[C]

Makes me happy, man. The times they actually gave Aldi some love talking about their rapid expansion across the U.S. and so if you are listening and you're like, oh, yeah, school lunches, they've hiked the prices there at school. I don't know if I want to. Do I have what it takes to be able to put together a school lunch. Is it actually more affordable? Well, it will be if you start shopping at Aldi, if that's not something that you do. And here's some info that I saw.

[B]

Not paid for by Aldi.

[C]

Yeah, yeah. So in the Times, they highlighted the fact that one of the reasons Aldi is able to keep their prices so low is because of the store brands. Aldi carries 90%. I was like, I didn't, I didn't.

[B]

Know it was a lot. I didn't know it was 90%.

[C]

I didn't know it was that much. But like the store brands are great. And I'm going to specifically call out, here's my Aldi Clancy's. This isn't going to be a recurring segment or anything, but I'm going to call it the Aldi item of the.

[B]

Week.

[C]

Which is they really should be. And this is gonna be so on brand. But it's Wernze Gruner.

[B]

I try to German. They're German.

[C]

I try to say it properly, but that's the Aldi German pills. It is a good beer.

[B]

Is it?

[C]

That's right. You heard it from Joel and Matt, the craft beer guys.

[B]

We know beer.

[C]

Well, not from you. I'm the one vouching for it. But it's a Solid German pils. If you're into that style of beer, I would recommend it super affordable.

[B]

Makes sense that the, the grocery chain based out of Germany I know has.

[C]

A good German taste. It's the only place you can buy that beer in the U.S. okay. Like Aldi has a deal. And so I think they are literally the only importer and they're all the only retailer who is selling that beer stateside, man.

[B]

Good to know.

[C]

That's an actual brewery over in Germany. It's legit.

[B]

Fascinating. Okay, speaking of your kids, right? Whether or not you save for their college really depends on how much progress you've made with your own finances. I was talking to a friend this week and he was like, I'm not saving for my kids education. But he had a good reason for it. He's like, I had to figure it out myself. And I think that's a reasonable way to go. It wasn't because he couldn't, it was because he didn't want to. And I think that's totally fine. More power to you.

[C]

To each their own.

[B]

Yeah. But if you are doing a great job with your own saving and investing for your future, and you're inclined to invest for the future of your offspring, you want them to go to school and you don't want them to pay for price. You want to help them out with that. You want to grow a nest egg. Well, knowing which 529 plans are the best can be helpful because, man, a lot of people don't realize this, but you don't have to use your state's plan. Some people think, well, I live in Idaho, guess I got to use Idaho's plan or I live in Wyoming, got to use Wyoming's plan. And the truth is, you don't have to. You can go with any of the state plans that you want. So Morningstar recently released its annual rating of all the state plans. The top ones are Alaska, Illinois, Massachusetts, Pennsylvania and Utah. Utah has been like top notch for years. They've been essentially at the forefront of low cost 529 plans. And a lot of people from other states have opted to invest in the Utah plan for good reason, because it's such a good plan. I think when you, when you're trying to decide which 529 plan to go with, though, if your state offers a tax incentive, you want to choose that one. And if, if your state does not offer a state tax incentive, like you're not getting a reduction in the income tax that you have to pay, then opt for one of those superior plans, one of those top five plans that Morningstar recommends, I think those are, they're all good. The Utah plan again in particular has been excellent for a long time. So just know 529 plans continue to get better. Costs continue to go down in many states, but there's still some that suck really bad. Make sure you avoid those ones.

[C]

All right, so the Journal had a fairly provocative article about specifically about work life balance, which certainly drew my attention, Joel. But they this author, it was an opinion piece of course, but this author was saying that striving for that work life balance is going to keep you mediocre. And of course I think he was probably trying to be divisive, throw a little opinion grenade out there into the world. That being said, he made some solid points. All right, the suggestion wasn't that balance is never a good thing, but that let's say if you want to rocket closer to financial independence by your early 30s, well, having some balance is going to be hard to come by. Like you truly do need to front load the sacrifice. That's something we've discussed here on the show. The more frugal that you are early on, the more that you can invest. It's going to lead to more freedom as of course compounding does its thing. That being said, far be it from the two dudes who just took summer off to rake anyone over the coals for not working hard enough. We have taken our fair share of.

[B]

Breaks we summer now Matt.

[C]

Do we? I might be able to get behind that. But the writer of this article wants to be he wants to be a billionaire by age 30. It's not a goal that most people have. It's certainly not a goal that I have. But I just want folks to know that what you want and what you save and invest is it is going to give yourself options down the road. But you also need to know that there are certain things and this is my biggest issue too was like I couldn't help but to think of the sacrifices he made at an early age to be able to he had like multiple companies that he sold for millions of dollars. Incredibly successful. Take some dedication, but success comes at a high price. And in his like think of the toll it took on his body. I just cringed when he was talking about on average he would get three and a half hours of sleep a night. He gained 80 pounds in college. You've heard of the freshman 15, which is a funny thing, funny concept to explain to my kids recently. They're like wait, what? And they're like, well, a lot of schools have these lunch or meal plans.

[B]

Cafeterias.

[C]

Yeah, cafeterias. And they don't make the best decisions when it comes to what it is that they're eating. But I think for him, it probably came because of metabolic unhealth essentially. Right. Like when you gain £80, he's living off of Red Bulls. And that's just physical health. Think about the social sacrifices that he made. There's things that I did in college where it certainly served me. I'm thinking about getting like one of my earlier jobs. Like, I spent a lot of time working on a website, for instance, when I was in college. And I remember I had friends that would kind of make fun of me for it. And that was. It was only a short period of time, though, that I really immersed myself in Dreamweaver. And I'm like getting in there, like figuring it out and having fun with it again. It led to me probably landing a job that I otherwise may not have gotten. But I was given a hard time and had I taken that a little too far, would have. I probably, maybe I wouldn't have met Kate, my wife, who, by the way, we just celebrated 18 years.

[B]

Yeah. Congrats, man. Thank you.

[C]

Yeah, love you, babe. But there are other things that you are giving up when you go that hard, right? Like, there are people, I think, who are necessary to be the extremes, to be the outliers. This dude's got like Elon Musk level work ethic. And those folks, I think are necessary to change the world. And if that's your calling in life. But for other folks, I think it can be a lesson of, oh, something beyond normal is possible. But just where along that spectrum do I want to plant my flag and say that that's what I want to strive after?

[B]

And I recently heard in a similar fashion, the CEO of Palantir basically say, if you want to be a raging success, you're not going to have any friends in your 20s. That was essentially his message. That's tough. And I'm like, how about I not sign up for that plan then? And also, so much depends on what your definition of success is like. We do think that having more financial margin, amassing some peace out money, creating right. The habit of saving and investing for your future so you don't spend every dollar that comes in today. Yeah, that is part and parcel. That is part of being successful, I think because you're, you're also just delaying some of your gratification, which is a good thing as a human. You're going to grow as an individual if you do that. But the extreme ideas, which it feels like that phase is a little bit past. I'm actually surprised to see that article in the Wall Street Journal right now. That doesn't feel like it's part of the ethos of our culture. But there are some people still out there pushing like, billion dollar business. If you want to build that billion dollar business, that's ultimately what's going to make you happy. And I think that article and some of these other comments from quote, unquote, successful people, they don't intrigue me. They actually make me want to run away. Because all that it takes for them to achieve that sort of status, it's completely, totally not worth it, in my opinion.

[C]

Yeah. It makes me think of honestly the increase that we've seen in folks who have been striving after the digital nomad lifestyle, which we have seen increase dramatically in particular over the past five years. Unfortunately, I feel like a lot of folks, it seems like this mirage. A lot of folks have essentially defined, like you're kind of touching on what you define as being successful. And I think a lot of folks, they saw a lot of influencers do it in the late teens being, you know, out there traveling the world while also operating a successful business.

[B]

It's like, oh, this is the new success.

[C]

It's the new pinnacle of success. Exactly. As opposed to like what it is that actually makes you happy. And there's a lot of reasons that folks are kind of dropping off the digital nomad train essentially. Right. Like, you know, it's hard to create community. You're constantly looking for WI fi if you don't have some sort of global Internet service provider.

[B]

But I think it also might be fun for a season and then it stops becoming fun because living out of a suitcase gets boring after a while.

[C]

Yeah. Yeah. Oh, what I was going to say too, about early on or in response to the Journal article, you're talking about how it surprised you that this was something that was still being put out there, how it doesn't feel like it's part of the zeitgeist right now. It honestly makes me worried for that guy that he has sacrificed so much because he's still tied to these early goals that he has set for himself. And that's what. That's in a similar way, that's how I feel about the digital nomadism. Right. Like, you see it once and you think, oh my gosh, this is everything. This is what I'm going to go for. And you do it for a little bit, but then you don't change your course. And we are constantly, ever evolving individuals. And I think what we need to do is spend more time evaluating whether or not the goals that we have set out for ourselves are still the goals that we want to achieve. Right. And so in a similar way, that's why I think digital nomadism has soured for a lot of folks because they are continuing to pursue after this goal when they're realizing, well, actually that means I don't get to spend any time with my brother and he's got kids now and, oh, I want to spend more time with my folks. And they're essentially married to this idea as opposed to reflecting a little bit and saying, what do I define as success in this stage of life? I think more folks need to be doing that.

[B]

Yeah, agreed. And it's hard to. It's an introspective thing that people have to go and it's a continual thing you have to revisit. And so being a digital nomad for six months or for a year might be awesome, but I've just seen a lot of stories about a decline in interest and people like relationships being blown up because they lived in a van together for a year. And guess what? That's. You know, you don't have all of those other outlets for relationship. You've got that one person and that can be a little stressful at times. And even traveling after a while. Traveling is awesome, but it can get a little old. Right. If it's like. And it can feel. If it's no longer special. Yeah. And it can feel a little selfish too, at times, which can ruin the experience. Let's talk quickly, Matt. Articles making Gen Z. We talked about Gen Z and credit scores last week. Well, I just feel like articles making Gen Z seem like frivolous or out of touch are kind of the norm right now. And the New York Times was like, hold my beer, let's I'll oblige and make Gen Z sound like idiots this week. And so they wrote an article about how Gen Zers are going over budget because they treat themselves too often. And so they're basically making the case that treat culture is in full swing. Something good happens at work or maybe even something bad happens at work, and you need some consolation prize. The treat can be the way to celebrate. And it seems like from what they're saying, Gen zers are more likely to do this than others. And I don't know if that's true. I Don't know that Gen Z has particularly fallen prey to tree culture. I do think though, that our society as a whole, we see more emotional reactions in our spending and it's kind of like a I deserve this sort of mentality. But I think that the thing that I didn't love was in that article, it was like they're willing to blow their budget to get this treat. And you and I were fans of spending intentionally on stuff that you care about. Even other people think it's ridiculous. That's the craft beer equivalent. Right. But put the splurge in your budget. Don't bust your budget for it. If you want the expensive concert tickets because that's something you really care about or even just the fancy coffee, right. Then we think you should put that in your budget and you should make it a priority. But it doesn't hit the same way, right, if you have to pay interest on that purchase for months to come, if you put it on the credit card and you can't pay it off, or if you're buy now, pay later because you don't actually have the cash in the bank. And so, yeah, overspending to bring short term emotional pleasure, that's not going to be a winning combo in the end. That's not a good approach to spending. I guess I'd say something like financial security is the real treatment.

[C]

Yeah, yeah. No, I think this speaks to. Well, first of all, I am proud of you for not saying the Parks and Rec quote that I feel like was just like right there on the tip of your tongue the entire time and you didn't say it. I am proud of you. But again, kind of going back to goals, it's just an expense that you put on repeat without thinking about it. Right. Going back to getting people on autopay. It's when you don't reevaluate the purchases you're making or the goals that you're striving after or even investing. I could even see, ooh, hot take from Matt here. Auto draft from an investing standpoint is typically a great thing and it's gonna lead to outsized results I think over decades. But at a certain point it's worth re evaluating and saying, okay, is this how much I want to continue to go towards my 401k? My or is it time to start spending some money in the here and now? It's just that when you set and forget everything in life, I think it could lead you somewhere that you may just may not have intentionally driven there on your own. If you had actively taken the money.

[B]

And even revisiting your craft beer equivalent. You and I have talked about how we're drinking less beer these days. So we still love a good craft beer.

[C]

It's something we've intentionally done, but I need that. I think folks have picked up on that. They're like, oh, yeah, that's not something that they do as often.

[B]

Maybe I.

[C]

It's still a part of the ethos and the fun of what we get to do, but it's just, you know, we're not doing it like we're 22 anymore.

[B]

And something else I would have considered ridiculous years ago, which is like paying money to run. Like, that's insane. Who does that? And now I do that. So maybe that's my craft beer equivalent now.

[C]

How much does this race cost? $500.

[B]

I'll do it. One of my friends wants to do a Seven marathons on seven continents in seven days. Ray, that sounds. I have no interest.

[C]

That seems a bit extreme.

[B]

Yeah.

[C]

All right, but we've got more to get to. We're going to talk about the demise of a fintech app that was one that was promising outsized returns. We'll get to that. We'll talk about mortgages and more right after the break. DeleteDead makes it easy, quick and safe to remove your personal data online. At a time when surveillance and data breaches are common enough to make everyone vulnerable. Data brokers, they make a profit off your data. All those sites and apps that don't charge you a penny. Yeah. You are the final product. Your data is a commodity. Anyone on the web can buy your private details and information, and this can lead to identity theft, phishing attempts, and harassment. But now you can protect your privacy with Delete me.

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[B]

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[C]

Yeah, when you're young and life is simple, getting a trust or will in place is not a high priority. But life gets more complicated when you start throwing kids into the mix. Once you add an investment property or two, once that's a part of the equation, I know I've got the peace of mind knowing that I've got this checked off my to do list and you can too. Because Trust and Will's website is easy to use, it's simple to navigate. Plus all your information and documents are securely stored with bank level encryption. Each will or trust is state specific, it's legally valid and it's customized to your needs.

[B]

Yeah, we can't control everything. But trust and will can help you take control of protecting your family's future. So. Trustandwill.com howtomoney and get 20% off. That's 20% [e-mail] howtomoney all right, Matt, we're back. Time to get to the ludicrous headline of the week. This one comes from CNBC. When invest like the 1% fails, how yield Streets real estate bets left customers with massive losses. I think first I just want to say I really hate to see individual investors lose money. And just I felt for the people in the article who had invested with YieldStreet, seeing the promised returns and they were like, yeah, this seems like, yeah, I'm trying to do the right thing for my future. Maybe you even listen to a podcast like how to Money and I don't know, maybe you only were listening with one ear because we would throw shade at companies like this. But you're like, I'm investing for my future. This is a great thing. We're not talking the people who invested in YieldStreet. This is not the upper crust who are giving money to Bernie Madoff or anything like that. It's normie people and it just sucks to see them lose money. So Yield street, this company that invests in real estate, crowdfunded real estate site, promised that real estate investing and private credit would be democratized. And I'm so tired of seeing that word in the money space. We're going to democratize everything. Well, they certainly made losing money available to all, Matt. They, they said, we'll democratize you actually losing your life savings. How about that? Well, so they had 30 something opportunities available on their site, investments that you could participate in. Four of those 30 opportunities have been declared total losses, which means not just that you didn't make money on your investment, but that your capital is completely gone. So if you invested 100k, guess what, 100k gone, wiped out. Not even the 20% returns weren't great. They were a little over inflated. I got like 10% returns. It's like, no, your money's gone. Yeah, 23 of those investments are on a watch list. They potentially need to raise more money from investors to keep those investments afloat. And for those investors, it could be throwing good money after bad. Those could also go belly up too at some point. We talked about the availability, the greater levels of availability of alternative assets in retirement accounts last week. This is the perfect example of why we prefer investing in publicly traded companies and Owning a slew of them in index funds. The risks are just too great.

[C]

Go with the tried and true. Yeah. So the yield street mission was to create financial independence for millions and they did just the opposite. I'll note here though that many private real estate funds have had a tough time, especially for investments that were made in different boom towns like Austin is one that comes to mind where prices have come down back to earth. And the reason being many of these investment firms had loans with short term interest rate fluctuations, making it basically impossible for them to stay afloat as rates rose. And then what did we see? We saw rents decline.

[B]

Yeah. So these part of it's because they.

[C]

Got hit with a double whammy. Essentially.

[B]

Their projections didn't involve much conservative conservatism. They involved a lot of optimism. And so they're like, well, if rents keep going up like this.

[C]

Yeah.

[B]

And that's Mortgage rates stay kind of where they are. We're going to crush.

[C]

If everything is perfect.

[B]

Yeah.

[C]

Then. And that's what they were. That's what essentially what they were dishing out when it came to the different pitches and the sales flyers and things like that. Yeah. That rate of return sounded amazing. But our advice is to steer clear of sites that are promising that you can invest like the 1%. And the easier availability of these alternative investments in general is likely going to get more investors in trouble in the coming years. It just all comes down to how it is that they respond. The different. It's the new flavor of the day basically. However they're going to choose to market it when instead we want you to stay with the tried and true index funds.

[B]

It can sound enticing and some of the prospectus or the prognostications can be man, oh wow. I don't know if I can beat that in the s and P500 fund that Matt and Joel talk about. But your due diligence is required at much greater levels than it is investing in something like an index fund. Matt, let's talk about another financial product. This one's making a comeback. Adjustable rate mortgages applications have risen 25%. They make up something like 1 in 10 mortgages that are being taken out right now. They're the highest they've been since in the past few years. This is according to the Mortgage Bankers Association. And you might depending on how old you are and how much you remember 2008, 2009, you might see red blinking lights when you hear that. You're worried that adjustable rate mortgages are a bad product. Hey, weren't they a big part of the reason that the Great Recession even happened in the first place? Well, I would say adjustable rate mortgages are not quite the same as they were leading up to the mortgage meltdown in 08. They have fundamentally changed in a lot of ways, although there's still a lot that you need to know before you sign up. For one, most adjustable rate mortgages come with longer interest rates these days, five, seven or 10 years, you get a lower rate and I want to caveat that because you might not, but typically you get a lower rate than you would on a 30 year mortgage, which means you're going to pay down principal faster. These mortgages, I think they have the potential to be a decent choice, but the details are crucial. And right now the interest rate disparity has actually shrunk, which makes 30 year loans more attractive. So it is kind of surprising to me, Matt, that adjustable rate mortgages are on the uptick when that kind of gap between interest rates on ARMS and fixed rate mortgages is smaller.

[C]

I think it's two reasons. I think folks are trying to get shave off whatever they can off of the mortgage rate that they're getting. But also I think some folks were thinking, well, there's a chance that rates are going to come down, right? Like they're looking ahead to the potential rate cuts. I think that might be leading to why it is. We're seeing more applications for arms, but a lot of it I think comes down to how long you're going to be in the actual home that you're purchasing, but also the mortgage that you're taking on as well. Because the average person stays in a home for 12 years. But then on the mortgage side, the average person refinances every seven to 10 years. And so a 7:1 or a 10:1 arm isn't actually as risky a product as many have made it sound. Yes, the interest rate can fluctuate after seven or 10 years, but are you going to be in the same home? Are you going to have the same mortgage at that point in time? So it's important to run the numbers, see how much you stand to save. Compare that to a 30 year fix, because if the ARM rate isn't much better than that, then I would say just lock in that 30 year and avoid the ARM altogether.

[B]

Yeah. And also just know how risky you're willing to get because the ARM does have a slightly greater risk factor, especially the shorter the term is. Right. And typically after that first correction can be up to 2 percentage points higher if Rates have gone that much higher. But do you think that's going to happen? I mean, there's a lot of variables in whether or not you choose an arm. But my last mortgage for the first time ever, Matt, was an adjustable rate mortgage because I'm a significant amount. Would I do it again? Yeah, if the savings were significant enough. And I think another part of that is that it might allow you to save up more money or to pay down your mortgage faster, which are other good things. But if you're just going to like consume with the difference, might not be the best idea. All right, but let's talk about renting for a second, Matt. Older Americans, it seems, are actually more willing to rent these days. You often think about older Americans as they've got houses by now they own a house and it's the younger folks who are out there renting those apartments and two bedroom homes. But Americans who are 55 and older, they're the fastest growing rent demographic in the country. Some people in that demographic, they found that selling their big house only to buy a smaller one when downsizing, it doesn't really make much financial sense because of elevated interest rates. So like, yeah, why do you trade in the sweet mortgage rate when for a much larger one? You know, selling that home and then renting instead can be really enticing given kind of where home values are like you mentioned, Matt. Also just, I think the costs and the headaches of maintaining a home can, as you're entering your golden years, be kind of annoying or frustrating. And buying a home just, it's not a slam dunk, smart move for everyone at all times. And neither is renting. There's just a lot of factors to consider, including, you know, that bigger gap between the average monthly mortgage payment and the rent that you would pay for a similar home. And I do think, I actually think this is a good thing. It's, it's interesting to see. I think it can free up. Let's say you are one of those older Americans who is, who has a paid off home or who has a home that's gone up a lot in value and a lot of you have a lot of equity in there. Well, maybe it does make sense to sell and to rent and you've got more money to do other things that you, that you're interested in doing with your life. Whether it's, that's true travel or I mean, yeah, I think homeownership is thought to be the end all, be all. And I just think this is kind of an interesting shift That I welcome.

[C]

Yeah, I certainly get it though. Right. Because as you are entering into those retired years, you are looking to stabilize your expenses and you're looking for more knowns as opposed to the unknowns. Like there's enough uncertainty in life, Rachel. True, but that's one of my concerns though, with renters or with retirees being more likely to rent these days. Is that similar to the ARM conversation? Like, you do need to look off into the future a little bit and to sort of weigh the pros and cons and to think, okay, what are rents likely going to do? And it kind of depends on what you're willing to rent. Because I foresee, like we've seen softer rents, but when it comes to single family homes that are in great neighborhoods in desirable cities to live in, that are very walkable like that supply isn't fluctuating, but you compare that to apartments. And if you're willing to live in a condo or an apartment unit or a multi family, the supply there is much more elastic. And so you'll see more supply come on like we have seen in some of these boom towns. And what does that do to rent? Well, then it drives it down. I think if you have that flexibility, you're willing to pivot, you know, move over to a new complex, a new unit, perhaps that's going to be more affordable then I certainly think there's a financial advantage there. But when it comes to. Yeah, I still see ownership being great for some of those single family homes. If you have a very particular spot in mind, like if you picture your retired years to be a certain way for it to have a certain flavor, I could see, I can certainly see purchasing making a lot of sense.

[B]

And so much depends on the way you want to live your retired years. Right. And if you were like, actually we want to downsize, we need a smaller home base while renting. Look at the disparity. Renting makes a lot more sense. And we're going to be gone half the time.

[C]

If that allows you to do a whole lot of traveling. Yeah, yeah. On one hand, I pictured a retired couple who's like doing all the travel that they never did in their earlier years and they're just like doing years and years of traveling. On the other hand, I see like an older couple who's just like walking around the neighborhood invest, you know, like hanging out with like their younger neighbors, being a part of a thriving community. And I think those are the kind of pros and cons you gotta weigh.

[B]

And it can be jarring. To leave a home that you've been in for years and decades. Sure. So you gotta factor that in too.

[C]

Hey, so speaking of buying a home, lease purchase agreements are actually on the rise. As well as mortgage rates, home prices have stayed elevated. Borrowers are finding that they might not qualify for a loan on the home of their dreams, which is in turn leading to a higher number of lease purchase agreements. This is according to Pew, Pew Research and lease agreements. They sound awesome, right? Yeah. Rent the place you want to buy while you are building up your nest egg. You'll have the option to buy at a later date, but until then, it's.

[B]

Like getting your foot in the door. Which sounds nice.

[C]

Yeah, it's like, oh, I know, I've got. It's the inside track.

[B]

But the problem is the problem. The door might slam on your foot.

[C]

Here's the deal. Even while you are renting, oftentimes you shoulder the responsibilities of a homeowner. You are paying the property taxes, and if you don't pay your rent on time, it can derail your chances at buying the place. And on top of that, there is legal uncertainty too. Almost no states have laws for these sorts of agreements. It's like a, it's a legal gray zone. It's like the legal framework isn't there. And so this might sound like a good option if you are a perpetual renter who really wants to own a home. But in my opinion, it's not. And I would stay, I wouldn't do this. I think if you, if as a.

[B]

Landlord, it's mostly upside. Right? And, but as a tenant who feels.

[C]

Like there's too many downsides, it feels.

[B]

Like there's way too many potential gotchas. And if you have a nice landlord who is interested in selling that, you might be able to find an amicable agreement.

[C]

But there's, I think that's a cleaner way of approaching it too. Right? Like if it's a home and you have been renting there for a while and you're like, hey, would you ever consider find out if they would be open to possibly selling it? And then on top of that, hey, maybe you can find a price that you agree to off market. You're saving costs there, so they're getting a little bit more, you're paying less. And then you just find a closing attorney.

[B]

You just have to be so careful about the terms. And the truth is some of those contracts are blown up in people's face because it's, oh, if you pay rent one day, even one day late, then the whole lease purchase agreement is gone. And you've been paying extra extra every single month as part of that down payment for the privilege. That's right. Yeah. And. And so then you're like, oh, man, just like literally one tiny, tiny, tiny mistake. And now I don't get the home I always wanted, and that's a big problem. So when there's no legal recourse for you, that makes these things incredibly risky. So, yep, yeah, you could talk to your landlord about buying the place, that's one thing. But entering into a lease purchase agreement.

[C]

Lease purchase agreements. Me no likey.

[B]

Yeah, Joel. Agreed.

[C]

Well, that's going to be it then for this Friday flight. We hope everyone has a fantastic weekend. We'll see you back here on Monday with a fresh Ask how to Money episode. Buddy. It's now time for me to say best friends out.

[B]

I'll say it too. Best friends out.

[A]

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[B]

You know what?

[A]

It was expensive, but I was also thinking, you have my kid. This is kind of priceless. Take her, feed her, make core memories. I don't have to do anything. Main thing, I don't have to do anything to hear this and more listen to Good Mom's Bad Choices from Black Effect Podcast Network on the iHeartRadio app, Apple Podcast or wherever you get your podcast. This is an I Heart podcast.