How to Money Podcast Episode Summary Episode: Friday Flight - Trump 2.0, Ghost Jobs, & Insufficient Savings #936
Release Date: January 24, 2025
Hosts: Matt and Joel
Podcast Series: How to Money by iHeartPodcasts

Introduction to Friday Flight

In Episode #936 of "How to Money," hosts Matt and Joel delve into the week's most impactful financial and economic headlines, aptly titled "Friday Flight." This episode focuses on the resurgence of Donald Trump in politics ("Trump 2.0"), the prevalence of ghost jobs in the job market, and the growing concern over insufficient savings among Americans. The hosts provide insightful analysis on how these topics directly affect personal finances, ensuring listeners gain actionable knowledge to navigate their financial journeys.

Trump 2.0: Implications for the Economy

The episode begins with a discussion on the return of Donald Trump to the Oval Office, referred to as "Trump 2.0." Matt expresses some confusion over the naming, but both hosts agree on the significance of this political shift.

Key Points:

• Tariffs and Consumer Prices: The potential introduction of new 25% tariffs on Canada and Mexico could act as indirect taxes on consumers, raising the cost of everyday goods. Joel notes, “They're essentially acting as a tax on consumers” (05:19).
• Impact on Inflation: Increased tariffs may stoke inflation, countering recent efforts to stabilize prices. Matt adds, “Those predictions... it's not like they’re totally” bringing certainty (04:42).
• Housing and Building Regulations: Executive orders aimed at curbing building restrictions to increase housing supply were discussed. While intended to lower housing costs, Joel remarks, “How that actually will work in reality, it's going to be hard to discern” (06:00).
• Geopolitical Strategies vs. Domestic Impact: The hosts debate the balance between geopolitical strategies and their domestic financial repercussions, emphasizing that while tariffs may serve strategic purposes, their economic impact on Americans remains a concern.

Notable Quote: Joel reflects on political unpredictability: “Whether you voted for them or not, everyone is counting on you. Good luck.” (06:35) – referencing Dave Chappelle’s commentary on President Trump.

Ghost Jobs: The Hidden Barrier in Job Hunting

Matt brings attention to the issue of ghost jobs—fake job listings that deceive job seekers into believing there are more opportunities than there actually are.

Key Points:

• Prevalence of Fake Listings: Hiring Platform Greenhouse’s analysis reveals that one in five online job listings are ghost jobs, meaning the positions are never genuinely intended to be filled (15:07).
• Impact on Job Seekers: These deceptive listings create false hope and waste time for individuals actively seeking employment. Joel mentions, “It doesn't make it any easier for hard-working individuals looking for work” (15:24).
• Reasons Behind Ghost Jobs: Speculation includes companies projecting false growth or keeping listings active to catch rare talent, though Joel remains skeptical about the efficacy: “But still, what would like a rare fish be?” (15:30).
• Job Scams via Text Messages: Transitioning to actual scams, Matt warns about fraudulent job offers via text that require upfront payments for starter kits, advising listeners to avoid such schemes as legitimate employers do not request money upfront (16:29).

Notable Quote: Joel emphasizes the importance of networking over online job searches: “It really does so much of the time come down to who you know” (17:00).

Insufficient Savings: Rethinking Emergency Funds

The conversation shifts to the critical topic of personal savings and emergency funds, highlighting the need for Americans to reassess their financial preparedness.

Key Points:

• Traditional vs. Enhanced Emergency Funds: While the conventional recommendation is to save three to six months of expenses, Matt cites a MarketWatch report suggesting some individuals may need to increase their savings to nine months or more due to economic uncertainties and longer unemployment periods (14:09).
• Unemployment Trends: The average duration of unemployment has risen to five and a half months, prompting the need for larger emergency funds to cover extended periods without income (13:40).
• Strategies for Building Savings: Joel proposes actionable steps, such as reassessing budgets and increasing contributions to high-yield savings accounts. He also discusses the psychological barrier, noting Matt’s concern about setting overly ambitious savings goals that may feel demoralizing (13:40, 14:29).
• Job Market Realities: With one in five job listings being ghost jobs and the overall job market dynamics, having a robust emergency fund is more crucial than ever.

Notable Quote: Joel advises on practical savings: “Having six months worth of any fund, it's better than having three” (14:48).

Housing Market: Homeownership vs. Renting

Matt and Joel explore the evolving housing market, challenging the traditional belief that homeownership is the best path to building wealth.

Key Points:

• Rising Costs of Homeownership: Home insurance and taxes have surged, now comprising a third of mortgage payments for many homeowners, with nearly 10% seeing over half of their payment allocated to these costs (35:03).
• Debate on Renting vs. Buying: The hosts argue that renting may offer more financial flexibility and fewer unexpected expenses compared to homeownership. Rent growth has been declining over the past year, making it potentially more affordable (37:29).
• Investment vs. Mortgage Payments: Joel suggests that investing additional funds instead of tying them up in mortgage payments could lead to better financial outcomes over time: “Better investments out there, for sure” (37:40).
• Maintenance and Hidden Costs: Homeownership entails ongoing costs like maintenance, averaging $500 a month, which can strain finances compared to the predictable costs of renting (36:13).

Notable Quote: Matt challenges the wealth-building narrative of homeownership: “But when you look at the numbers, it does kind of sort of look like that, right. That owning the home is what contributes to more greater levels of financial independence. But it's really just not that simple” (37:29).

Additional Financial Insights

Beyond the primary topics, Matt and Joel touch upon several other financial matters relevant to listeners:

• Debt Payoff as a Primary Goal: Highlighting that debt payoff remains the number one financial objective for Americans in 2025, the hosts discuss strategies to manage and eliminate debt effectively.

• Consumer Behavior and Toy Purchases: The conversation shifts to the inefficiency of toy purchases, critiquing the tendency to buy toys that quickly become clutter. They advocate for investing in more meaningful or durable items that foster creativity and lasting value for children.

• Kiosks in Restaurants and Upselling: Examining the rise of self-service kiosks at fast-food chains, Matt and Joel analyze how these technologies drive additional sales through automatic upselling, impacting consumer spending habits.

• Tipping Practices Amid Inflation: The hosts discuss the decline in tipping generosity as restaurant prices rise, advising listeners to navigate mandatory fees and maintain appropriate tipping standards without overextending their budgets.

Notable Quotes:

• On debt management: “Debt not only puts you in a precarious financial situation, the stress that it creates, it can be overwhelming” (18:30).
• On consumer habits: “It could save you money, but it can like prevent you from pulling your hair out because that stuff gets littered all over the floor too” (30:35).

Conclusion

In this episode, Matt and Joel provide a comprehensive analysis of significant economic and financial trends impacting everyday Americans. From the potential effects of a Trump 2.0 presidency and the challenges posed by ghost jobs to the critical reassessment of personal savings and housing decisions, the hosts equip listeners with the knowledge to make informed financial choices. Their balanced approach ensures that the content remains relevant, actionable, and accessible, reinforcing the podcast’s mission to offer unbiased, jargon-free personal finance guidance.

Notable Quotes with Timestamps:

• Joel: “Whether you voted for them or not, everyone is counting on you. Good luck.” (06:35)
• Joel: “Having six months worth of any fund, it's better than having three.” (14:48)
• Matt: “But when you look at the numbers, it does kind of sort of look like that, right.” (37:29)

Note: Timestamps are indicative based on the provided transcript and may not precisely align with the actual episode.