← NerdWallet's Smart Money Podcast
NerdWallet's Smart Money Podcast
Prime Day Tips and Reddit's Brutally Honest Money Confessions
00:43:07
Loading summary
Transcript155 lines
- [00:01]
Sean
The following is a paid sponsorship, not an endorsement by NerdWallet's editorial team. Today's episode is sponsored by Bilt.
- [00:07]
Elizabeth Ayola
You've heard me talk about Bilt as the loyalty program that lets you earn points on rent wherever you live, and they just leveled up even more. As of 2026, renters and homeowners can also earn up to 1.25x points on their housing payments.
- [00:23]
Sean
This is thanks to Bilt's three new credit cards, the Palladium Card, Obsidian Card and Blue Card. All three can turn your housing payments, rent or mortgage into flexible rewards so you can choose the card that fits your lifestyle without missing out on points and exclusive benefits.
- [00:38]
Elizabeth Ayola
Built Points can be redeemed at top airlines and hotels, Amazon.com purchases, future rent payments, and so much more. Built Points have also been ranked by top publications as the industry's most valuable point currency.
- [00:52]
Sean
Your housing payment is most likely your biggest expense. Make it your most rewarding. Find the card that fits your lifestyle and Apply today at joinbilt.com smartmoney that's J-O-I N B I L T.com smartmoney make sure to use our URL so they know we sent you. Terms and limitations apply subject to approval and eligibility.
- [01:14]
Elizabeth Ayola
BILT cards are issued by column NA member FDIC pursuant to license for MasterCard International Incorporated. Today's episode is sponsored by Spectrum Business. What happens when your Internet drops during business hours and you're the one running the business? Say goodbye to your to do list unless that list involves panicking and having trouble getting any actual work done.
- [01:38]
Sean
For business owners, being connected isn't a perk. It's how you take payments, talk to clients and keep things moving. Not to mention pretty much everything else. Spectrum Business keeps businesses connected seamlessly with fast, reliable Internet and advanced WI fi plus phone, TV and mobile services if you need them.
- [01:55]
Elizabeth Ayola
And Spectrum Business offers 100% US based customer support 24. 7 to help you stay up and running. That means you get actual help, not submit a ticket and hope for the best.
- [02:07]
Sean
Our colleague Kerry on the social media team is a Spectrum customer and she told us that she chose Spectrum because people online kept recommending it as a reliable and affordable option for Internet and phone service.
- [02:17]
Elizabeth Ayola
She told us she was actually a little hesitant to switch at first since she'd been using a different service for a while, but after a year with Spectrum, she's actually had a really good experience. Her phone gets strong, reliable service and it automatically connects to Spectrum WI Fi everywhere.
- [02:33]
Sean
Join the millions who rely on Spectrum Business. Visit spectrum.combusiness to learn more one more time. That's spectrum.com business restrictions apply.
- [02:43]
Elizabeth Ayola
Services not available in all areas. Prime Day is here. Everything you've been eyeing is suddenly on sale. But is it actually a deal? And can you actually afford it in this economy? Today, a Prime Day expert and economist will answer those questions. Welcome to NerdWallet Smart Money podcast where you send us your money questions and we answer them with the help of our genius nerds. I am Elizabeth Ayola. Later on this episode, Sean and I will be nose poking on Reddit and discussing juicy financial posts that we come across. But first, our weekly money news roundup where we break down the latest in the world of finance so that we can help you be smarter with your money. Our news colleague Rick vanderknife is sitting in again while Anna Hilhosky. Ana, we miss you, girl. Is on vacation. Welcome, Rick. What do you have for us today?
- [03:38]
Rick Vanderknife
Hey, thanks, Elizabeth. I've got two guests today. NerdWallet personal finance writer Tommy Tindall and NerdWallet senior economist Elizabeth Renter. Tommy's here to talk about Amazon Prime Day and other shopping events happening this month. What to watch for, but also what to avoid. And Liz is here to help us zoom out and talk about the state of the American consumer seen through the lens of our own financial resilience index. Thanks for joining us today, both of you.
- [04:05]
Tommy Tindall
Hey, glad to be here.
- [04:06]
Elizabeth Renter
Yeah, always happy to be on. Thanks.
- [04:09]
Rick Vanderknife
So let's start with you, Tommy. Prime Day's back and a little bit earlier than usual. Any other changes that shoppers need to be aware of?
- [04:16]
Tommy Tindall
Yeah, Rick, I'm going to say same Prime Day, different dates. It is about a month earlier. It's June 23rd through the 26th instead of July. There could be some Amazon strategy there just to keep us on our toes, keep us engaged, maybe get a bigger share of our budgets before July 4th sales. As it always does, it requires a Prime membership to get the good deals. There may be some more summer focused deals this time. One thing, and I can just feel the listeners rolling their eyes right now. There's more AI built into the experience with their Alexa for shopping. One cool aspect is you can check a year's worth of price history right on the product page. You don't have to go to a third party site to do that anymore. And you can ask Alexa questions about the products right in the search bar. So that's, that's kind of new.
- [04:59]
Rick Vanderknife
Awesome. And it seems like other retailers are getting in on the action. Can you walk us through what other sales are happening?
- [05:05]
Tommy Tindall
Yeah, every single year, right. Like Amazon sets this date on the calendar and other retailers follow suit. And I think, I think it's good for consumers. So Walmart, Best Buy, they both have events that they announced and they're actually longer. Both go from June 22nd through the 28th. Target has its circle deal days, the same dates as Amazon Prime Day, June 23rd through the 26th. And again, I think this is a good thing because you can probably get the same price elsewhere if you cross shop and you may not even need a paid membership to do it. As a reminder, Amazon Prime, a Prime membership is $139 a year or about 15 bucks a month. There is a free 30 day trial option, but I'm sure many people don't need me to remind them of this. I think there are a lot of prime members out there.
- [05:48]
Rick Vanderknife
Cool. And are people still spending at these events? I see predictions for a record Prime Day volume this year.
- [05:54]
Tommy Tindall
Every year. It's just, it's a really big deal. Last year's Prime Day delivered record sales. That's according to Amazon. Their press materials after the sale this year could be bigger. Despite sort of economic challenges, 55% of US consumers plan to shop during Prime Day which is up from 45% last year. This is according to Omnisend, which is an E commerce marketing automation platform. But I mean it also comes in a year when 45% of consumers say they plan to cut back on non essentials which include shopping. This is according to our own Nerd Wallet data.
- [06:27]
Rick Vanderknife
Any tips from you on what kind of things to watch out for?
- [06:30]
Tommy Tindall
Keeping with the theme of people are trying to pull back. I think the top thing you know if you're going to shop this sale and I know you want to because I want to low cost essentials and little treats. One of my sources I spoke with put it that way and I thought that was perfect. And this just lets you participate in the sale without breaking the bank. And it's kind of what I do to downplay the hype. I have a pulse and a smartphone. So I want to shop Prime Day and it's a good time to restock those things that you're going to buy anyways. Like examples are health and beauty supplies, snacks, batteries, maybe a wireless charger for your phone. And what you could do is you could check your buy it again list within Amazon for ideas and this will look different for everybody. But I think a few bucks off on a handful of things that you already buy, it's going to add up. Another big category. TVs. Prime Day is always good for TVs. Maybe not quite as good as Black Friday Friday, but you know, combine it with the World cup happening partially in the US right now should make cause for more deals on TVs and home audio streaming sticks, sound bars, things like that and high end headphones and other kind of techy gadgets always go on sale. Another category, small kitchen gadgets, you can always count on those. Target for example is offering up to 45% off popular brands. I think air fryers, coffee makers. If you need one of those heads, if you need it, you probably get a good deal right now. And then I think a wild card is because this is happening in June is like the outdoor living category. It's not always the best time to get good deals, but Amazon might offer some better deals on like patio decor, gardening tools, maybe even grills which usually don't hit bottom dollar this time of year.
- [08:05]
Rick Vanderknife
What about things to avoid?
- [08:07]
Tommy Tindall
This is the sale when everything goes on sale. But I think some things that you can hold off on back to school supplies. I mean it's a little early for this. I mean the kids just got out, they probably even want you talking about this right now. But I will say some of my colleagues here, they're already looking at like Jansport backpacks and those bent go lunch boxes, but like pencils, paper, books. The fall fits as the kids like to call them even maybe laptops I think can wait until July or August. And plus if you wait, you know there's going to be more dedicated sales. But you can also check out when your tax free weekend is in your state, which is often in early August and get more of a break there. And another definite skip is major household appliances, even furniture mattresses. These items traditionally go lower on 4th of July and even lower on during Labor Day sales. So I'd wait for those.
- [08:54]
Rick Vanderknife
Any general tips you want to leave us with?
- [08:56]
Tommy Tindall
The biggest tip is just doing a little research upfront. It really goes a long way making your list, knowing what you want, knowing the typical price of that product, like what it usually goes for and then knowing the sale price, targeting what you'll buy it at. You can check the price history now before the sale starts. And you can use Amazon's own tool. You can use some of those third party tools like Camel, Camel Camel or Keepa. For me, you know we're not buying that stroller unless I check the history and see that it's at like a year long low. The other big tip is like if you miss out or you know, if you're just not ready to buy things like don't fret because good deals on popular products always come back around and it's often without the hype.
- [09:34]
Rick Vanderknife
Thanks, Tommy. It'd be great if you could stick around. We'll get back to you. And for now, I'd like to pivot to you. Liz. NerdWallet debuted its consumer Financial Index in May and June. Results are now in from a 30,000 foot view. How would you characterize where the American consumer is right now, especially based on these survey results?
- [09:52]
Elizabeth Renter
Yeah, the Financial Resilience Index score for June is 61.6 and that's on 100 point scale. So what that means context for your listeners at zero. All of the respondents to our survey would have had to answer as negatively as possible to all of our questions. And 100 would represent perfect resilience where they responded as positively as possible to to all of our questions. And so 100 is not only unlikely, but I think it's near impossible. So this month's score at 61.6, I would say puts American consumers at moderate financial resilience. And just a little bit about our measure and what makes it unique, because there are a lot of economic consumer sentiment scores out there is that we're measuring not only sentiment or how people feel about their finances, but also the reality of it. So on the sentiment side of things, we found that 76% of people feel in control of their finances this month and 78% feel confident in their ability to pay their bills on time this month. Now that seems like good news and it is. It could be worse. But the converse then is also true, right? So 24% don't feel in control of their finances and 22% aren't confident in their ability to pay all their bills on time this month. So framing is important here. And then the other side of the survey where we're looking at the financial reality of households, we find that 35% of Americans have to rely on credit for some of their expenses this month. So whether that's credit cards or buy now, pay later, and 63% of Americans say they have at least $1,000 in cash on hand should an unexpected expense arise this month. And that really speaks to people's access to emergency savings. So households are under a lot of pressures right now. In general, we find that household financial resilience, though, is holding steady in June compared to last month.
- [11:35]
Rick Vanderknife
So as Tommy told us Amazon is predicted to hit a new Prime Day record in sales volume, even as people feel a little financially stressed, at least. Can you take a stab at an explanation for that?
- [11:45]
Elizabeth Renter
Yeah, absolutely. I think there's a couple things at play. We've been talking a lot over the past year, or even more, that there's this disconnect between how people are feeling and what they're actually doing. So people do feel bad about the economy, but they're continuing to spend. And so I think that's somewhat at play in what we're going to see in the Prime Day sales data. But the other aspect is also that these sales holidays aren't really representative of total spending overall. So what happens on Prime Day with Amazon, for example, is not really indicative of what's happening across the economy. So people that are shopping Prime Day are shopping for discounts and they're diverting their spending away from other retailers or potentially other times of year or other dates. So it can be true that Amazon Prime Day is the strongest it's ever been. But in general, spending remains flat.
- [12:32]
Rick Vanderknife
Does the rise of these kind of mega sale events like Prime Day and old favorites like Black Friday and Cyber Monday, does that change consumer spending patterns in a measurable way?
- [12:42]
Elizabeth Renter
How these spending holidays show up in the aggregate spending figures kind of depends on what data sources you're looking at and how you're measuring. In general, when we're looking at the whole of the economy, we primarily look at two really big aggregate spending figures, and that is the advanced retail figures from the US Census and the consumer spending figures from the bea. Now, do these Prime Day sales figure into those numbers? They can, but the primary way that you see them is that they change sort of the distribution across categories in these numbers. So when it comes to the retail numbers, you might see in the month of June that online sales tick up where sales in brick and mortar stores might come down a bit. And that's because what I was explaining earlier, people are diverting spending away from certain retailers to capture that Prime Day savings. And so you're going to see some adjustments from category to category, even if spending overall does not increase overall.
- [13:38]
Rick Vanderknife
What does this survey data tell us about how people are feeling versus what economic indicators say?
- [13:43]
Elizabeth Renter
Well, people are feeling pretty poorly about the economy broadly. And that's true both in our survey, our Financial Resilience Index, and what we're seeing from other Consumer Sentiments survey. So, for example, we know the University of Michigan survey is still at historic lows. People are looking externally at the economy around them and feeling kind of bleak. In our index, we found that roughly 2/3 of Americans say they expect the US to enter a recession in the next 12 months. So that's when they're looking outwards. But when they're looking internally at their personal finances, as I said, the majority feel in control of their day to day finances and they feel confident about their bill paying ability. So there's a little, you know, contrast between how people are feeling when they look externally versus when they look inside their household and when looking externally. There is a gap between how people are feeling about things and what the data is saying. And there's a lot to unpack there. But I think briefly we can say that, you know, for the past three months we've had pretty solid jobs reports. The labor market is on stable footing, even if it's not exactly the most friendly place for workers and job seekers. We know that consumer spending again remains strong when you're looking at the big aggregate numbers. So the economy right now is okay, but there are household concerns like affordability,
- [14:54]
Elizabeth Ayola
for example, and looking at the rest
- [14:56]
Rick Vanderknife
of 2026, what should consumers be prepared for?
- [14:59]
Elizabeth Renter
I'm always reticent to predict the future, but I think it's safe to say consumers should prepare for more uncertainty, which is a safe answer too, right? I mean, as of right now, as to today, when we're recording this, it looks like oil may begin flowing again soon in the Middle east, but it's going to, number one, take time for it to be flowing at the rate that it was before the war in Iran began. And then it's going to take even longer time for that to translate into pricing differences and inflation differences. So I think people are going to have to be patient in this year in expecting any improvements to their affordability concerns. But I also think they're going to need to expect continued uncertainty. I mean, it is an election year, so one would like to think that we could hope for fewer surprises on the front of economic policy. But I think trying to predict sort of what politicians and this administration is going to do going forward is proven pretty difficult.
- [15:53]
Rick Vanderknife
So we're going to bring Tommy back in and I'll ask both of you for your best advice for consumers as we enter this summer of spending amid uncertainty. Tommy, what's your, what's your top piece of advice now?
- [16:07]
Tommy Tindall
It's just a really good time to take a look, you know, run your numbers, take a look at your budget and it doesn't have to be tedious. Like you can grab your Favorite summer beverage could be iced tea. It's going to be an IPA for me. Sit down with your spouse or just with yourself and just jot down your plans. What are your plans for the summer vacations? Is there a wedding to attend? An amusement park trip? Are the camp dues coming up for the kids? What will those things cost? And does doing those things comfortably during this costly time mean you have to pull back somewhere else, like, for example, on shopping or prime day spending?
- [16:40]
Rick Vanderknife
And how about you, Liz?
- [16:41]
Elizabeth Renter
So my standard advice for folks is to focus on what they can control. I think in times like this, when what's going on in the economy is very uncertain and we're all under a little bit of stress because of that or because of our personal financial picture, we can't control what's happening in Iran and what's happening with oil prices or the next economic policy. So focusing on what's going on in your household can help alleviate some of that feeling that you have no control over what's being sent your way. So it may seem kind of esoteric, but I think it's solid advice. To Tommy's point, look at your budget, look at your income, and what are the levers that you can pull to prove your household's economy?
- [17:19]
Sean
Great.
- [17:20]
Rick Vanderknife
Well, thank you both.
- [17:21]
Elizabeth Renter
Thanks for having us.
- [17:23]
Tommy Tindall
Yes, thank you.
- [17:24]
Elizabeth Ayola
And thank you, Rick and Tommy and Liz. Tommy, I love the hack about looking back at my past purchases to see things I may be able to get a discount on. And Liz, I am writing a letter to lobby for a raise as we speak because, hey, sometimes we just need more money, right? All right, up next, Sean and I get nosy on personal finance reddits. But before then, if you have any questions at all, all related to how you can increase your income, how to ask for a raise, how to shop during sales. You can leave us a voicemail or text us on the Nerd hotline at 901-730-6373. That's 901-730-N E R D. You can also email us@podcasterdwallet.com we love, love, love reading your comments on Spotify. I keep leaving them. And we're also on YouTube in case you want to see our faces. We're back with more in just a minute. Stay with us.
- [18:22]
Sean
The following is a paid sponsorship, not an endorsement by Nerdwall's editorial team. Today's episode is sponsored by Bilt.
- [18:29]
Elizabeth Ayola
You've heard me talk about Bilt as the loyalty program that lets you earn points on rent wherever you live and they just leveled up even more. As of 2026, renters and homeowners can also earn up to 1 point points on their housing payments.
- [18:45]
Sean
This is thanks to Bilt's three new credit cards, the Palladium Card, Obsidian Card and Blue Card. All three can turn your housing payments, rent or mortgage into flexible rewards. So you can choose the card that fits your lifestyle without missing out on points and exclusive benefits.
- [19:00]
Elizabeth Ayola
Built points can be redeemed at top airlines and hotels, Amazon.com purchases, future rent payments, and so much more. Bilt points have also been ranked by top publications as the industry's most valuable point currency.
- [19:14]
Sean
Your housing payment is most likely your biggest expense. Make it your most rewarding. Find the card that fits your lifestyle and apply today at joinbuilt.com smartmoney that's J-O-I-N-B-I-L-T.com smartmoney make sure to use our URL so they know we sent you. Terms and limitations apply subject to approval and eligibility.
- [19:36]
Elizabeth Ayola
Bilt cards are issued by column NA member FDIC pursuant to license from MasterCard International, Inc. Today's episode is sponsored by
- [19:47]
Sean
Quints Summer always makes me rethink what I'm reaching for every day. Lighter fabrics, better materials. Pieces that just feel good the moment you put them on and look effortless. That's why I keep coming back to Quint's. They focus on high quality essentials. Think breathable linen, soft, organic cotton, washable silk without the luxury markup. It's that rare balance where everything feels elevated but still easy.
- [20:10]
Elizabeth Ayola
Quint has beautiful everyday pieces like 100% European linen pants, dresses and tops with style starting at $32.
- [20:20]
Sean
Their denim is soft and easy to wear and their organic cotton sweaters are perfect for layering on cool summer nights.
- [20:26]
Elizabeth Ayola
Everything at Quint's is priced 50 to 80% less than similar brands.
- [20:31]
Sean
I recently picked up a pair of European linen sheets for my bed because I'm such a warm sleeper and I don't want to be sweating through my sheets all summer long. And let me tell you, I am sleeping so nice and cozy and cool and I just love these sheets and
- [20:42]
Elizabeth Ayola
I'm super excited because the pool is back open and I recently rocked my blue one piece bathing suit and it is a hit. I must say.
- [20:52]
Sean
Elevate your summer wardrobe. Go to quint.com smartmoney for free shipping on your order and 365 day returns now available in Canada too. That's Q-U-I-N c e.com smartmoney for free shipping and 365 day returns. Quince.com smartmoney we are back and answering
- [21:13]
Elizabeth Ayola
your money questions to help you make smarter financial decisions. Now today we're going to be all up in people's business. You like that Sean, don't you?
- [21:21]
Sean
It's a favorite pastime of mine. All up in your business. All up in our listeners business. Everyone's business.
- [21:27]
Elizabeth Ayola
But today we're going to be in Reddit posters business. We found a few juicy posts that we're going to chat about because we're doing another as you can guess as seen on Reddit episode. We are going to cover a gamut of topics from what made millionaires lose all of their money to how to restructure your budget with elevated inflation.
- [21:44]
Sean
Okay, let's get to the first post and this comes from the high earner not rich yet aka Henry subreddit. The post is 250k a year and broke. 4 years ago I made 120k and was happier. This poster said. Now I make way more and am broke. It's like I went nuts and don't know how to stop dumb spending. I do have four kids still in the house, three driving age and pay for private school. It feels like everyone in my house is static except me. I'm curious what they mean by static. Anyway, they said I'm just mad at myself for letting spending get out of control. Besides two 401ks 100kish and a small investment crypto account 8k, I don't have anything in the way of savings. Ooh, what are your first impressions here? Elizabeth?
- [22:29]
Elizabeth Ayola
Oh my gosh. Well, when I saw the headline, the first thing I thought about I don't know about you, but I've been really into threads lately and I came across a threads post. It's a social media app from Instagram for those who don't know. And they were talking about people who have left six figure jobs or high paying jobs to go and become maybe work at the local library or take a job at the local Starbucks so that they could have peace of mind versus the stress that sometimes comes with the money. So when I initially saw the post I thought I wonder if this is in the Reddit post's future. Remember they said they were happier with 120k, so I wondered if it was if it's the job or if they just need a lifestyle reset because like they said, they're overspending.
- [23:08]
Sean
And also this makes me think of the big elephant in the room Lifestyle creep is that as you earn more money, you tend to spend more money on these non essential things. Like you used to be driving a Toyota Corolla. Maybe now, now you're driving an Audi because you have extra money. And buying a lot of stuff doesn't often make you happier. Although studies have shown that earning more money continues to make you happier and happier. There's a bit of like a false piece of information out there that people think that past a certain point you actually don't get any happier when you earn more money. And that's actually not true. More money does often equal more happiness, but it depends on how you're allocating that money partially.
- [23:44]
Elizabeth Ayola
That's right. And it sounds like the Reddit poster is overspending. And also it sounds like what I got from them saying that people in their house seem static about it is that maybe they're static that she's making more money or they, wherever the poster is, but they don't seem to be happy inside.
- [23:59]
Sean
Yeah, I almost took that as they're static in the sense that they're not spending more, which if there are mostly kids in the house, that would kind of make sense. But one thing that stood out to me is that they, they're paying for private school that could be really expensive. If they're paying for three or four kids to go to private school, you know firsthand, Elizabeth, how expensive that could be. So maybe that was one area where they wanted to provide some lifestyle creep for their kids, just to provide them more opportunity. But is it really necessary? If the public schools are perfectly fine in your area, that's still a viable option. That's way less expensive than private school.
- [24:34]
Elizabeth Ayola
Absolutely. And I can't even imagine private school times four. We talk a lot about lifestyle creep, and that is something that we shouldn't let bite us, so to speak. But it made me think, like, what actually can you do to prevent lifestyle creep and why does it happen, aside from, hey, I just want to spend money. And I don't know if you've ever heard of the term hedonic adaptation or hedonic treadmill. Sean.
- [24:56]
Sean
I have.
- [24:56]
Elizabeth Ayola
Yep.
- [24:57]
Sean
It's the idea that as you get more things, you have a happy experience, you buy something that makes you feel good, you get this spike, and then that spike that you get kind of brings you back to a baseline. You have this kind of new level of feeling good. And even though you'll have a big jolt of excitement after buying something, you kind of get back to your regular baseline feeling of happiness. So you're not going to be on an incline treadmill of happiness as you're buying stuff. It's sort of a baseline and it
- [25:24]
Elizabeth Ayola
makes me think that at the end of the day, we can have all the money in the world, but sometimes our appetites are insatiable. So we have to put practical things in place to ensure that we are not increasing our spending as we earn. What are some things that you have done, Sean, because hopefully your income has continued to increase over the years. How have you put a nip in the bud for lifestyle creep?
- [25:44]
Sean
I try to focus on what I actually care about and what I do want to spend more money on when it comes to having more disposable income. So for me, that was getting a somewhat nicer car when I bought a car years ago. It's going out to nicer restaurants in town because we have so many good restaurants in Portland and I really value that. But on the other end of the spectrum, like, I won't be spending a ton on getting my hair done. I don't know, I just, I get simple hair haircuts that aren't too wild. I like to buy nice clothes, but I try to buy fewer items at a time so I don't have an overflowing closet. I don't spend my money where I don't care about things or I don't spend money as well to try to impress people. I want to make myself feel good and enjoy the things that I have. And if you're buying something to try to keep up with the Joneses, I think that's a big sign that you're letting a lifestyle creep take you into an unhealthy place.
- [26:39]
Elizabeth Ayola
Yeah, the latter is key. But then it still makes me think about what are the practical things. And for me personally, I feel like sometimes I have to trick my brain. Like, yes, I'm earning more money, but I don't need to increase my spending. And I think something else that helps me is increasing my savings rate as my income increases. Right. So that I'm still getting closer to the same amount I was getting before versus seeing a whole bunch of more money and saying, well, I have more money to spend.
- [27:03]
Sean
Yeah, we talk often on the show about, about aligning your financial habits and your spending with your values. And saving should be a value that we all have because that brings you financial resilience. Well, one last thing I wanted to touch on with this post is how they actually don't have a lot in savings and that should be something that they're focused on as their income is increasing, they have very little in their 401ks compared to how much they're making. And I think that as they want to build some sort of resilience or security for them and their family, that would be a smart place to focus. Any kind of income increase is putting that into their 401ks or other savings vehicles.
- [27:37]
Elizabeth Ayola
And I don't know about you, but saving always helps me feel better about spending. Then one tiny last thing I thought to myself is lifestyle creep always a terrible thing, especially if you're coming from a place where you don't have much and maybe you're living in an uncomfortable way, you can't buy yourself good food to eat. I think in some instances lifestyle creep is okay as long as it doesn't go overboard.
- [27:57]
Sean
Completely agree.
- [27:58]
Elizabeth Ayola
All right, let's move on to post number two. It's from the Personal Finance Reddit cpi and for those who don't know, that's Consumer Price index just came in at 3.8%. Food at home up 0.7% in one month. Airline fares up 20.7% over the year. Is anyone else restructuring their budget around this or are you just absorbing it? Sean, what are you doing?
- [28:22]
Sean
Elizabeth I am absorbing and adapting because what else can you really do? There are certain areas where I need to spend more because things are more expensive, like on groceries. I've talked over so many years about how I'm always outraged at how my beloved cream cheese is just more and more expensive every time I go to the grocery store.
- [28:39]
Elizabeth Ayola
Sean and his cream cheese.
- [28:40]
Sean
I know. But I'm adapting because I am such a committed Costco shopper now that I go and I get their Philadelphia cream cheese in this big tub that lasts me weeks and weeks. And I'm kind of scared as to why it lasts so long. I'm sure it's some preservatives, but anyway, it's way more economical to shop at a store like Costco. So that's how I'm adapting. And then in other ways, like I am pulling back on some travel. I wanted to go down and see some family in California, but the plan didn't come together quickly enough and by the time I looked at the air Fraser, I just couldn't swing it financially. So that's a sacrifice that I'm making just because I need to keep my budget intact. How are you handling all of the changes over the past few months? Because I feel like just since this year started, prices have gone even more bananas than they already were.
- [29:22]
Elizabeth Renter
Ugh.
- [29:23]
Elizabeth Ayola
I feel like you've been in my head, Sean. Why am I so soppy lately? This make me a little emotional because I've been really hard on myself lately with my budget forgetting that the cost of living has gone up. And it's interesting because on Reddit I came across a post that said everyone should get a Costco membership. And I am not a fan of Costco because I just find it overwhelming. But I said to myself, you are buying the same things, a lot of the same things every week. You might as well go and get them in bulk. And actually, my boyfriend added me to his Costco membership. Long story short, what you just said is a sign, Sean. I need to take my tail over to Costco and go and start shopping over there to cut costs there. And same with travel. As much as I really want to go to Florida this year, I'm asking myself, do I need to go? Will it kill me if I don't go one year and I can use that money instead to continue bulking up my emergency savings fund. But in some ways it feels like psychologically like I'm failing or I'm doing bad with my budgeting when I'm not remembering, hey, I'm not in this alone. And actually the cost of living is going up.
- [30:21]
Sean
Yeah. And we've seen that the real average wages dipped 0.3% annually. So we are now earning less as things are getting more expensive. And I think we're all feeling the squeeze in some way. I mean, I don't even drive that much and I spent $75 filling up my car last week and I'm just getting around town. I don't even have a commute, so I really feel for those are commuting. But Elizabeth, my Costco hack, because I also can find it really overstimulating. It's like the worst kind of Disneyland ride, but you're all just crammed in together there. Go right when they open, or go maybe like a Friday evening at 6pm like before you go out for the night or something because people aren't often there at that time. From what I hear from a friend who does this, the hour before closing is often deserted. So check that out.
- [31:07]
Elizabeth Renter
Out.
- [31:08]
Elizabeth Ayola
Yes, I think those two things would help me. And the third hack, don't take your kid with you.
- [31:13]
Sean
Yeah. Although it sounds kind of fun because then they get all the samples, but then they want to grab everything else off the shelf too, I imagine.
- [31:20]
Elizabeth Ayola
Yes. No, we don't want none of that. I'll bring the samples Home. But yeah. So to be honest, I'm doing the same things as you in terms of budget restructuring, just not buying non essentials right now. You will be shocked to know that I've not been scouring the Internet for new clothes lately.
- [31:33]
Sean
Proud of you.
- [31:33]
Elizabeth Ayola
And yeah, just thank you, thank you. And just. Yeah, maybe cutting low on travel this year. There's always next year. As long as I'm healthy and still here.
- [31:40]
Sean
Yeah. And just save the difference. Right. That way you can have that vacation fully funded.
- [31:45]
Elizabeth Renter
Yeah.
- [31:45]
Sean
Okay, well, let's get to the next post. This is from the Fire subreddit. That's financial independence. Retire early. And the topic is Dating after fire. Hi folks. I'm mentally preparing myself to Chubby Fire next year. As a 51 year old divorced guy, I'm trying to figure out what my dating life might look like. My guess is that everyone will still be working and probably not have retirement on the near horizon. I'm predicting awkward conversations around careers and work. Has anyone else here retired as a single person and had dating experiences? How did it go? Any tips? Any experiences you'd like to share? Thanks. Okay, this is classic Reddit because no one on Reddit who spends a lot of time there knows how to date. I'm sorry. I really respect and admire the savings at point this this poster has put into retiring at 51, but I think a lot of people on the Internet simply spend too much time on the Internet and you can just get out into the world and realize, hey, I'm just a guy who happened to achieve something amazing with my finances and I don't think people are going to be as awkward or weird about it as he's probably thinking.
- [32:47]
Elizabeth Ayola
So it sounds like projection is what I'm hearing, Sean.
- [32:50]
Sean
Maybe. Yeah. Or just a little bit of self consciousness and just I think that they need to go out into the real world and talk with people.
- [32:57]
Elizabeth Ayola
They might have to do a lot of that retiring early. Anyways, might as well get started now, eh?
- [33:01]
Sean
We've talked about fire a lot on this podcast, but I hadn't really heard about Chubby Fire that much. I think it's a pretty funny term. Can you explain what that means for folks who don't know? Elizabeth?
- [33:08]
Elizabeth Ayola
I can. And then some people may not be familiar with all the types of fire anyway, so just very quickly I'm gonna run through them.
- [33:14]
Sean
You are the Fire Queen.
- [33:16]
Elizabeth Ayola
I am the Fire Queen and that's why I like this post. But anyway, some of the most popular ones are Lean Phat Barista and Coastfire Lean is for the minimalist who's like, I ain't got time to be spending all that money. I just want to live on a little. Fat is for the big money spenders who want to live luxurious in retirement.
- [33:32]
Sean
That would be me.
- [33:33]
Elizabeth Ayola
Of course it would be. Barista is for people who are not ready to fully retire and want to semi retire, but they don't want that stressful job anymore. And then we have Coast Fire for people who actually don't plan to retire early but want to stop saving for retirement early and enjoy their money. Now where does Chubby Fire fit into all of this? It's less talked about. Like you said. I barely heard of it before either. It's like the cousin of leanfire and Fat Fire. That's where Chubby Fire comes in the middle. So it's for people who don't want to be extremely frugal, but who also don't want to be overly luxurious.
- [34:07]
Sean
So what do you think about their dating prospects? I love that this is their main concern is they've been saving for so long, so diligently to be able to retire early on what they've tucked away. And their dating life is their concern. I think to me it kind of speaks to how your life shifts so fundamentally. Sometimes after retirement you have all this free time. You're not tied to a workplace which is where a lot of people meet spouses and you're just out there and you have to create your own life.
- [34:33]
Elizabeth Ayola
Yeah, you're just out there in the wilderness. And actually it reminds me of a post that I read years ago about someone. No, it was about several people who did fire and retired early. And one person in particular stood out to me because they had retired early. And the main thing that they reported in that piece is feeling lonely because all of their peers were still working and they had done all the things. They traveled, they picked up hobbies, they did all the things they thought they would want to do in retirement and they were missing that social connection. You want to know what they did?
- [35:03]
Sean
Started volunteering at a community center or something.
- [35:05]
Elizabeth Ayola
They went back to work. They went back to.
- [35:07]
Sean
Yes, that breaks my heart a little bit. I'm glad they found their community again. But there are other ways to do it, right? There are, but they're job.
- [35:18]
Elizabeth Ayola
They are.
- [35:18]
Sean
Yeah.
- [35:19]
Elizabeth Ayola
So anyway, this reminds me of that. So it sounds like the poster is afraid of loneliness. One and two. Yeah. Like what if you meet a partner when you retire early who is still working, what do you do with your free time? And I don't know about you, Sean, but when I envision retirement and partnership, I envision retiring with my partner and yes, doing my own thing, but also doing things together versus, you know, me being doing my own thing and then going to work every day. So, anyway, my bigger question for you, inspired by this post, is how do you envision retirement? Do you want it to stack up with Garrett?
- [35:50]
Sean
Yeah, 100%, I imagine. I hope that we'll retire somewhat early and then we'll be able to travel and tend to our garden and just hang out and do things around town together. That's what I am currently envisioning for retirement. But if one of us has to retire earlier than the other, that's a fact of life. And I think there are other ways that we can find fulfillment. Like, I go to a local dog park in my neighborhood a lot and I see the same group of people meeting up at the same time every single day. Some of them are retired, some of them are working. They're a huge range of ages, and they've found a habit that they share together every single day. And I think that's how you can build connection and community when you're not working or even when you are, just. Just get out there and meet people.
- [36:32]
Elizabeth Ayola
So it sounds like maybe the Reddit poster just needs to find a day job of socializing and doing things that bring them joy. Assuming they find a partner who's still working and then, you know, after work, I guess him and the partner or them and their partner can hang out, right?
- [36:46]
Sean
Yeah. And in the meantime, get off the Internet and meet people in the real world. You'll realize it's not so scary. But I do think people assume, oh, if I have all this money, then dating will come easy. And that's not the case.
- [36:57]
Elizabeth Ayola
Moving on to post number four. And it's from the Ask Reddit Subreddit Ex Millionaires of Reddit. What made you lose all your money? Now, I like to this one personally, Sean, because I'm not a millionaire and I love to know what millionaires are doing with their money. And even more, I want to know how millionaires are losing all their money.
- [37:14]
Sean
Yeah, this was a great one to dig through all of the comments, which is part of why I just love Reddit is people sharing their stories. And you know, part of me always wonders how much of any of these stories is actually real. But there were some wild stories about people gambling their money away or just making bad business decisions. One that really stood out to me was this person's father, who was pretty successful in businesses. He had, I think, three different businesses that were each worth a million dollars each, and they ended up going bankrupt because he wasn't able to delegate responsibility and management of these companies. So you can have the best work ethic in the world and you can be a really savvy business person, but if you don't have the right system in place to manage these businesses long term, it can all just fall away, which is kind of tragic.
- [38:02]
Elizabeth Ayola
It is tragic. And once upon a time, I used to be trying to be. Actually, that's not true because I kind of am a business owner technically, but I used to want to have employees, let me put it that way. And I was in many groups of other aspiring entrepreneurs. And the amount of people that struggle with delegating was very shocking. And not only like this poster said, could it lead to you losing money, but it also can lead to burnout when you don't know how to delegate.
- [38:26]
Sean
Yeah, I mean, I get it though. When you create something, something from scratch, you know it better than anyone and you want it to be successful. And so bringing other people, they're going to do things a different way, they might have different ideas. It can lead to conflict and some things might slip through the cracks. But also to sustain a project like a business that's worth a million dollars, you need more than one person to do it.
- [38:47]
Elizabeth Ayola
Absolutely. And I come across this comment, Sean, which makes me think all these things are interconnected. Now it says I work in finance and my team and I work with all very affluent clients. Clients. I've seen so many millionaires lose it all, not from investing in the markets, but from taxes, lifestyle and poor business decisions. Once had a client who was making 50k a month, but was spending 60k a month and perpetually dipping into his investments. They were months where payments bounced because he was living a lifestyle and always wanted more. My favorite investment advice. Same car, same house, same spot. Spouse. Kind of like this. Catchy.
- [39:26]
Sean
The same spouse can. Cracks me up.
- [39:28]
Rick Vanderknife
Yeah.
- [39:28]
Sean
Can you imagine spending $60,000 a month? What are you spending that money on? It's bananas.
- [39:35]
Elizabeth Ayola
But what did we say earlier? It's insatiable. Like there's always something to spend money on. So you got to reign your own self in, Right?
- [39:41]
Sean
We all need to find out what is enough for each of us. And then anything beyond that. Donate it, save it, invest it wisely. Don't keep buying random crap just to make yourself feel good in the short term because it's not going to work. You're going to end up broke, as we all learned.
- [39:56]
Elizabeth Ayola
And I don't know how I would feel if I was once a millionaire. And then I'm just like, wow, wonder what all that money I had went. You know, I feel really bad.
- [40:03]
Sean
Yeah, I would feel horrible. I would feel maybe like a failure. And I don't want to feel that way. So if and when I become a millionaire, I'm going to do my best to hold onto it and not spend it frivolously.
- [40:14]
Elizabeth Ayola
If I know that nobody's going to overspend when they become a millionaire, it's you.
- [40:17]
Sean
Sean on thank you. Well, the thing is that I do like to spend my money, but I also like to save. So I try to find the balance. Always in balance. That's my goal. Okay, let's get to our final post. This is from the Money Diaries subreddit, which actually I just learned about. Elizabeth, thank you for sharing this subreddit with me because it was about people's Money Diaries. The title is how to get out of Money Comparison. I realized recently that one of my acquaintances has probably 20 to $50 million in equity from joining an AI startup early.
- [40:46]
Elizabeth Ayola
Wow.
- [40:47]
Sean
I don't know why, but it's been making me feel so bad about myself. It feels like my accomplishments financially and career wise mean so little comparatively. And the things I've been excited about for the future still won't even measure up. Like say I save 5 million. It will still be nothing in comparison. How do I get over this? I know objectively other people's wealth has no impact on my life, but it is triggering all sorts of things for me emotionally, like wanting to be the best in the class, but someone else already got an A. Does anyone else feel like they fall into money comparison? If so, how have you gotten past it?
- [41:21]
Elizabeth Ayola
Oh, that last line made me feel so sad for the Reddit poster. I don't know about you, but I definitely have and maybe sometimes do fall into money comparison. I think in finances and with other things, because we're social beings, we always comparing ourselves to other people to determine how we're doing or where we rank because that's just what we do as humans. I do know something that helps me significantly. It's just looking at how far I've come from looking at my own personal journey and not anybody else's makes me feel one proud of myself. So it doesn't feel like oh well, I only have 50,000 and someone else has a hundred thousand. And it also makes me see that I have all the tools that I need to keep going further so I don't need to compare myself to anyone else.
- [42:05]
Sean
I love that. Yeah. I mean the saying is that comparison is the thief of joy. And it is, I mean appreciate what you have. There's always going to be someone who has more money or who has less money money. But I really like what you pointed out about comparing where you are to where you were in the past. Because even if you maybe aren't as rich, maybe you're one of those people who was a millionaire and isn't anymore. I'm sure you learned some valuable lessons along the way and you can take that moving forward because that's all you can do is focus on your own finances. Don't be too worried about whatever else anyone else is going on. Because that person who has 20 or 50 million in stock, they may not have the same sort of non financial wealth and fulfillment in terms of their community, their loved ones, their hobbies, their passion. You don't know what's going on with them really. And just a dollar figure isn't a great thing to base your self worth off.
- [42:50]
Elizabeth Ayola
Love that. The last part of what you said I think is key. Your value as a person is not tied to how much money you have. And I think that can be a hard thing for people to believe because we live in a society that tells us that we are as valuable as the car that we drive or the house that we have, or basically the material things that we own. Right. So I think it's more about your, your self worth and your self work that you need to do in order to feel valuable as a person independent of your job, your money and any other thing you own.
- [43:20]
Sean
Yeah, and one of the top comments in this post really stood out to me. They said, I say this with gentleness, but as someone who has lived in Silicon Valley and does not work in tech like millions of other people in this region, please expand your social circle to include people who are not in tech. I feel like part of the issue here is thinking that having 50 million in equity in an AI company is a normal thing to happen in and not an outrageous and rare flash of luck. I'd also like to keep in mind that equity is basically worthless 90 plus percent of the time. I'm sure someone had $50 million in equity from Enron in 2000. Not worth much anymore.
- [43:54]
Elizabeth Ayola
And again, which is why you shouldn't compare because we also don't also have the same. We don't start from the same place and we don't finish in the same place. Right. We all have different opportunities, different access to different resources. So it's just not a good way way to measure yourself or your self worth. I see a comment here that says I know someone with an even higher net worth than you're describing who is suffering from incurable blood cancer and is dying. The key is to have gratitude for what you have. Even if it's just your health. If that's not going to remind you to just be grateful for where you are, I don't know what is.
- [44:29]
Sean
Yeah, I mean, health is wealth, right? So if you can focus on that and appreciate what you have, I think that will make you grateful for what you do have, even if it's not 20 to $50 million.
- [44:39]
Elizabeth Ayola
All right, are we at the end of our Reddit journey today, Sean?
- [44:44]
Sean
Maybe for this podcast recording, but I will be scrolling on Reddit later today.
- [44:48]
Elizabeth Ayola
Are you gonna be in the Money Diaries? Make sure you text me today.
- [44:50]
Sean
Yes, I need to follow that immediately. Thank you. Okay, well, I think that's all we have for this episode. Remember that we are here to answer your money questions and lurk on your Reddit page posts. So turn to the Nerds and call or text us on the Nerd hotline at 901-730-6373. It's 901-730-Nerd. You can also email us at podcasterdwallet.com or drop us a comment on Spotify or YouTube.
- [45:13]
Elizabeth Ayola
And while we love to yap, we want to hear your thoughts and your opinions too. So if you have any thoughts on any of the Reddit posts that we read today, please leave us a comment on this episode on Spotify or on YouTube, because we're over there as well. Or you can just email us if you don't want to do all the social media stuff. In the meantime, join us next time to hear about what to do when your teen receives a windfall. Follow Smart Money on your favorite podcast app. That's Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
- [45:43]
Sean
And here's our brief disclaimer. We are not your financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances. Circumstances.
- [45:54]
Elizabeth Ayola
This episode was produced by Tess Viglund. Hilary Georgi helped with editing. Eve Krogman edits our audio and our video. And a big thank you to NerdWallet's editors for their help.
- [46:03]
Sean
And with that said, until next time, turn to the Nerds. Hey smart money listeners. We have a brand new email newsletter and it's completely worth signing up for, especially since it's free.
- [46:18]
Elizabeth Ayola
Every issue has clips from recent episodes, links to stories you might have missed, and also behind the scenes commentary from me, Sean and our producer.
- [46:28]
Sean
Some of it is stuff that doesn't make it into the episodes, the context, the moments, the takes we didn't plan on sharing.
- [46:34]
Elizabeth Ayola
You can think of it as the group chat for smart money fans. I'm going to be sharing inside details about parenting and money. Yes, I'll be sharing all the juicy
- [46:43]
Sean
stuff and I'll have loads of tips about what I'm doing in my garden. So if you want to putz around your garden like I do, sign up for the newsletter. And also, you know, we have money, tips and all that kind of stuff. So head to nerdwallet.com podcast to up sign. Sign up again. It's free.
- [46:56]
Elizabeth Ayola
That's nerdwallet.com podcast. We'll see you in your inbox.
- [47:01]
Tommy Tindall
Ryan Reynolds here from Mint Mobile with a message for everyone Paying Big Wireless Way Too much. Please, for the love of everything good in this world, stop with Mint. You can get premium wireless for just $15 a month. Of course, if you enjoy overpaying. No judgments.
- [47:15]
Sean
But that's weird.
- [47:16]
Tommy Tindall
Okay, one judgment anyway. Give it a try@mintmobile.com Switch upfront payment
- [47:24]
Sean
of $45 for 3 month plan equivalent to $15 per month required intro rate first 3 months only, then full price
- [47:28]
Elizabeth Renter
plan options available, taxes and fees extra.
- [47:30]
Sean
See full terms@mintmobile.com.