Podcast Summary: How to Money – Friday Flight: ‘The Lipstick Effect’, Cheap Chinese EVs, & DIY Solar (#1098)

Hosts: Joel and Matt
Date: February 6, 2026

Overview

In this Friday Flight episode, Joel and Matt dig into recent financial trends, behavioral shifts in consumer spending, and tech-driven disruptions affecting personal finance. Topics include the "lipstick effect" and surging beauty spending, the realities of cheap Chinese electric vehicles, Vanguard’s ongoing fee cuts, non-diversification risks in index funds, shifting priorities among consumers, and new DIY approaches to solar power. Along the way, they offer practical takeaways and inject humor and honest opinions throughout.

Key Discussion Points & Insights

1. Tax Season & Meme Coin Craze (01:01–04:13)

• Opening Banter: Joel and Matt joke about gathering tax documents, with Joel still working on getting his 1098s.
• Meme Coins: Discussion about Mr. Beast launching a meme coin to be promoted during the Super Bowl, reminiscent of the 2022 "crypto insanity."
  • Matt warns about the speculative, pump-and-dump nature of meme coins:

    "A few insiders gonna make a lot of money, and my guess is like Mr. Beast himself is going to make some money on this at the expense of his followers." – Matt (03:13)

  • Both advise listeners not to invest based on hype or influencer marketing.

2. The Lipstick Effect: Beauty Spending Boom (04:15–07:55)

• Beauty Industry Surge: Joel notes beauty and skincare spending is outpacing broader retail, possibly due to "the lipstick effect" (small splurges when money is tight).
• Prices: They highlight inflated costs—lipstick is now $30–$40 rather than the $9 Joel guessed.
• Marketing Influence: Celebrity and influencer marketing drives demand and perceived value.
• Takeaway: Small, frequent purchases can add up, detracting from long-term financial goals.
  • Quote:

    "No skin cream is gonna make me look like Brad Pitt... small purchases still add up, which can detract from money that we're gonna have for our future." – Joel (07:26)

3. Travel Spending Remains Non-Negotiable (07:58–10:41)

• Consumer Choices: Over half of Americans are cutting in other areas to maintain travel budgets (per USA Today/SurveyMonkey).
• Installment Traps: Warning against "Buy Now, Pay Later" (BNPL) for travel costs.
• Workplace Trends: Employees increasingly prefer time off or trips over cash bonuses.
  • Quote:

    "A week off actually would mean more to me... sometimes giving time off might cost less and show more gratitude." – Joel (10:19)

4. Thrift and Secondhand Shopping Resurgence (10:43–15:09)

• Goodwill and Bargain Hunting: Goodwill is expanding. The joy is in "the hunt" but can be hampered by overcrowded racks.
• Online Secondhand Shopping: shopgoodwill.com and eBay offer expanded selections.
• Nuuly: Rental service where you can buy nearly-new Anthropologie dresses for much less.
• Reminder:

  "You lose the muscle, you're so used to whipping out the phone going to Amazon... remember that it's an option." – Matt (13:16)

5. Vanguard Fee Cuts & Index Fund Diversification (15:10–22:13)

• Vanguard Cuts Fees: 53 funds see reduced fees, some as low as 0.06%.
  • Ownership Structure: Investors essentially own Vanguard (a co-op model).
  • Quote:

    "In investing, you get what you don't pay for." – Jack Bogle (16:51)

• Diversification Concerns:
  • Top companies now dominate index funds (Nvidia, Apple, etc.), raising concentration risk.
  • Mutual funds legally shifting to "non-diversified" status.
  • Hosts still advocate diversified, low-cost index funds for most investors, but with awareness.
    • Consider adding international and small-cap exposure for balance.
  • Quote:

    "I'm a long-term investor... little ups and downs... don't faze me at all." – Matt (20:09)

6. Gold, Silver & The Allure (and Risks!) of Alternative Assets (22:13–24:49)

• Precious Metals Volatility:
  • Recent gold/silver price plunges illustrate risk.
  • Should only be ~5% of a portfolio, not a core holding.
  • Quote:

    "It's easy to look really dumb when an asset's going up quickly... but know why you're investing." – Joel (24:44)

7. Ludicrous Headline: In-Car Advertising Invasion (26:33–31:11)

• Sponsored by Robinhood/Sherwood: Discuss automaker ambitions to monetize infotainment screens with ads.
• Ford Patents: Targeted ads based on in-car conversations (!) raise privacy concerns.
• User Experience: Dismay at buying a $70,000 vehicle "and still getting ads."
  • Quote:

    "I’m just kind of viscerally against paying 70,000 plus dollars for a new vehicle and then being served ads inside of that vehicle." – Joel (29:15)

• Trend: Automakers shift away from Apple CarPlay/Android Auto to proprietary systems for data/ad revenue.

8. Cheap Chinese EVs Disrupt the Global Market (32:22–34:54)

• Reviewers Rave: YouTubers and journalists swoon over Chinese $40K EVs (e.g., Xiaomi, BYD), which outperform pricier US competitors.
• Subsidies & Labor: Lower prices mainly due to Chinese government subsidies and lower worker pay—not just tech.
  • Quote:

    "You and I have talked about it before. So many workers getting paid far less... that's why they're cheaper." – Joel (34:03)

• Tariffs Debate: No clear answer from hosts on how to balance consumer benefit vs. anti-competitive practices.

9. Tesla’s Full Self-Driving & Insurance Innovations (34:54–36:47)

• Insurance Discounts: Lemonade will cut insurance rates by 50% for Tesla drivers using full self-driving modes, since data shows they have fewer accidents.
• Safety Data:

  "Full self driving, they're seven times less likely to get into an accident per miles driven compared to a human driven vehicle." – Matt (36:32)

• Implication: Could lead to drastically lower insurance costs as autonomous driving becomes more widespread.

10. Wages vs. Inflation: Where You Live Matters (36:47–40:26)

• Income vs. Cost of Living: Average US income up 18% (2020-2024), but costs up 21%—most Americans’ purchasing power declined.
• Geographic Disparities:
  • Idaho, Florida, WA, MT, WY, SC: Wages outpaced inflation.
  • RI, NJ, MD, MA, NY: Wages lagged.
• Mobility: Opportunity often comes from relocating; younger listeners encouraged to "be brave" and consider moving for better financial prospects.
  • Quote:

    "When you look to the history of the country, Americans migrated for opportunity in far greater numbers than we do today." – Joel (40:01)

11. DIY Solar Power on the Rise (40:46–43:20)

• Trend: Homeowners/renters increasingly adopting plug-and-play DIY solar kits as traditional full-roof installs grow less attractive after credit phase-outs.
• Savings: Small-scale kits save modestly ($15–$20/month), but may become more effective as tech and legislation improve.
• Legislation: Some states are moving to legalize/back these systems, currently a regulatory "gray area."
  • Host Curiosity: Solicited feedback from listeners who've tried DIY setups.

Notable Quotes & Memorable Moments

• On meme coins and Super Bowl spectacle:

  "Fortune favors Mr. Beast. We'll see how well he does." – Matt (02:24)

• Beauty spending reality check:

  "No skin cream is gonna make me look like Brad Pitt... small purchases still add up." – Joel (07:26)

• On in-car ads:

  "I'm just kind of viscerally against paying 70,000 plus dollars for a new vehicle and then being served ads inside of that vehicle." – Joel (29:15)

• On index funds being 'non-diversified':

  "Investing in low-cost... S&P 500 index funds... it's still pretty dang diversified." – Matt (22:15)

• On insurance and self-driving:

  "Full self driving, they're seven times less likely to get into an accident... compared to a human." – Matt (36:32)

Important Timestamps

• Tax & Meme Coins: 01:01–04:13
• Lipstick Effect & Beauty Trends: 04:15–07:55
• Travel & Installments: 07:58–10:41
• Thrift Shopping: 10:43–15:09
• Vanguard Fee Cuts: 15:10–16:56
• Index Fund Diversification: 18:01–22:13
• Gold/Silver Volatility: 22:13–24:49
• In-Car Ads (Ludicrous Headline): 26:33–31:11
• Chinese EVs: 32:22–34:54
• Self-Driving Insurance: 34:54–36:47
• Income & Inflation by State: 36:47–40:26
• DIY Solar: 40:46–43:20

Tone & Style

True to their "best friends" on-air dynamic, Joel and Matt approach complex finance topics with humor, skepticism, and practical wisdom. They keep jargon light and focus on actionable advice, peppered with personal anecdotes and audience engagement.

For New Listeners

This episode will give you practical ideas for managing your spending, raise your awareness about financial fads and tech disruptions, and challenge you to be intentional—whether analyzing your investments or deciding how to spend those “little luxuries.” The hosts deliver a balance of hard facts, prudent skepticism, and lively banter.