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 CHRIS PRATT: We’re here with Jeremy Schneider from Personal Finance Club. He’s retired at 36, a lover of index funds, and an avoider of debt. How are you doing today, Jeremy?

 JEREMY SCHNEIDER: Great Chris, thanks for having me. All that is true.

 CHRIS PRATT: So on your website, you say that Personal Finance Club teaches how to handle money and invest without any misaligned incentives. And you have the habits, steps and rules to become a multi-millionaire. There were just some pretty big things, and pretty big goals that a lot of people have. So I just want to dive in and get a better understanding of how you share this knowledge with everyone and how people can understand the tools and resources that they need to become multi-millionaires or maybe just become “single-aires”, single millionaires. So there’s a lot to this, but I want to start with “the plan”. What is it and how did you come up with it?

 JEREMY SCHNEIDER: Sure. I mean, I think basically the misaligned incentives thing you mentioned is just because we don’t teach this in schools in an altruistic manner and so when adults kind of like, get in the world and open their eyes, they are just barraged with car leases, credit card debt, day trading, mortgages, interest rates and yields move. And it’s like it is overwhelming and no one really understands it very well. Everyone who’s basically pushing this information on average grown-ups and young people kind of has an incentive, right? So, like the car lease guy has a reason to convince you to get a car lease. Credit card companies want you to do the credit card thing, and mortgage companies want you to get a mortgage and all this stuff. And we’re just kind of like, in this world of this capitalistic society, which is a good thing. I like capitalism, but also there’s no education foundation where people can make wise decisions. So the plan is basically like a simple step-by-step way with what you should do with the next dollar that you have so that you can focus on one thing at a time and cut out all the noise of these companies pushing it upon you.

 CHRIS PRATT: Yeah, and I noticed that your plan was very similar but not at all the same, definitely distinct to the Dave Ramsey baby steps. So like number one, for instance is to save one month’s worth of expenses which is similar in the fact that he says, save a $1,000 worth of expenses. So why one month?

 JEREMY SCHNEIDER: Yeah. I mean, it’s hard to deny plans like Dave’s are similar, but there’s also a lot of other people who have very similar things. It’s like, do these things in order like, Romit, Rameet I’m not sure his name, like he’s got the same thing, that he calls as like a “ladder”. And the reality is nothing here is really novel. Nothing here is like super amazingly mind blowing. It’s like, you know I got my two rules which is like, live below your means and invest early and often.

 JEREMY SCHNEIDER: And if you do those two things, you’re going to be rich. And, you know, the plan is like, kind of a helpful way on structuring money. And so, the month thing you know, Dave Ramsey says $1000, I say a month [of expenses], they’re both fine. I can just say like $1000 could mean very different things to two very different people. Sometimes it could be two months worth of expenses. Sometimes it cannot even be exactly like half a month. And also now that we’re kind of like on this Coronavirus crisis. You know, the last 10 years when the economy has been good and people have basically been employed, you kind of lower your sense of security where you feel like you don’t maybe need that cash buffer but then all of the sudden, things started to tighten up and we’re short of a lot of cash. And so yeah, I say just do a month just to make sure you can like, not be living paycheck to paycheck and get out of that cycle.

 CHRIS PRATT: Well, and by the way, Ah, I’m just asking these questions because I’m curious about it. I think it’s great to have specific steps. Obviously, that’s not a novel concept, but I think that having specific laid out steps is one of the great ways that you can start to build financial freedom because a lot of the  people just don’t know what to do, and they want someone to guide them and to tell them what is the right answer when in reality there is no one particular right answer. So I’ll go to step number two, because I think this one is pretty important and then we’ll move onto a different topic. So number two, you say, is to contribute to your 401K or 403B up to the match before aggressively paying off all debt. I think that’s one of the big distinctions between your plan and maybe a couple other people’s plans. So why do you say to contribute to your 401K up to the match? I think I have an idea as to why you say to do that, but we’ll just hear it from you.

 JEREMY SCHNEIDER: Sure, So I’m a simple guy. I like to break things down simply, So if you’re listening to this and you don’t know what a 401K is, it’s just a type of account, like a savings account or checking account but a 401K is a special account, and it is only offered if your employer offers it. And so 401K is a special account that is offered through your employer for the purpose of long term retirement investing. And so some people don’t even have one. And if you don’t have one, you would skip this stuff. And if you do have one, some companies, as an incentive to keep you at their company, to attract good workers, offer what’s called a match which means if I am a worker and I work for a company that offers a 401K and they offer a 3% match, for example, and let’s say I make $50,000 per year.

 CHRIS PRATT: 3% of your salary?

 JEREMY SCHNEIDER: Yeah, 3% of my salary is $1500. So if I put $1500 of my own money into my own 401K account, then the company will match that and put 1500 new dollars in there. And so against an incentive to attract employees and an incentive for me to contribute, because when I do that, I get an instantaneous 100% return on my money, which you basically could never get anywhere else in investing. And so the reason I prioritize that is a couple things. One, because if you don’t do it, you’re just basically flushing free money down the toilet. I wouldn’t want to say literally but figuratively because there’s not an actual toilet, but you’re definitely throwing away money. And the other reason is, just realistically speaking, maybe some people, despite my pleadings and my instagram posts, will never get past step three and will never get out of debt and will do the normal thing to live their life of debt. So at least if they’re doing step two, the 401K match, when they wake up and they’re 60, they’re not gonna be totally in poverty. They’ll at least have something that has been growing over time, including all that instant return money. So, yeah, I say, don’t throw away the money and I appreciate the focus on debt, but take the free money first. That’s what I say.

 CHRIS PRATT: And that’s the opinion of a lot of people. And I’m not sure if you can necessarily go wrong either way, right, there’s the behavioral aspect and then there’s the mathematical numerical aspect of this and I think it would depend on what the match is, whether it plays out mathematically and what kind of debt you have, of course. But that’s that’s a really interesting point. By the way, shout out to your Instagram at Personal Finance Club, correct?

 JEREMY SCHNEIDER: Yes, that’s right. That’s where most of the magic happens. I spend much of my days crafting these intricate little infographics that I post daily to Instagram that just try. It’s nothing brand new, nothing amazingly novel. Like I said, if you read all the classic books on investing, you will get the same information. But most people don’t read all the classic books on investing, and they just kind of take what comes to them. And so I’m trying to take that good information and put a little bite sized chunks in their daily Instagram feeds.

 CHRIS PRATT: Why, I appreciate your humility. I do think what you’re doing is novel. Well, I think it’s amazing. I think you’re putting really great information out there. I was following your seven sins of investing. I think that that is really sage advice and people can’t go wrong by following that advice. So, I really appreciate the advice that you’re putting out there, Jeremy. So, we’ll switch gears a little bit. We’re talking about 401K and investing a little bit. But one of the big goals that a lot of Americans, or a lot of people of probably around the world have is to own a home, right? And oftentimes, as we were talking before the show, that’s not so much of a financial decision as it is a personal I wouldn’t necessarily say emotional, but just a personal family decision. And so, in one of your blog posts, you said your net worth was a whopping $3.8 million. Congratulations on being a millionaire, by the way. And you lived in a one bedroom apartment for over five years was it?

 JEREMY SCHNEIDER: Well, I lived in an apartment for my entire life.

 CHRIS PRATT: For your entire life. But for over five years in the past, right?

 JEREMY SCHNEIDER: Yeah. So basically, I started in a little company in college. I grew it for 12 years. I sold it for 5 million dollars. After everyone got their share and I paid taxes, I ended up with about 2 million dollars then it grew over the next few years to close to 4 million dollars. And now we are with the Coronavirus thing, it’s less than that. I think I may be close to probably 3 million dollars right now. I haven’t looked at it lately, but it will come back. But anyway, yeah, that whole time, I never owned a home, I had roommates. I drove a 99 Ford Explorer. I lived in very moss apartments. And then even after I sold my company for millions, I still lived in the same one bedroom apartment for another four years or something. You know, I do think that there’s this kind of, like this American dream thing, which is like owning a home is like a box you must check in order to have success and it’s just purely societal. And it certainly isn’t financial because it’s not necessarily a wise financial move. In fact, I think because it’s the dream and people have been basically bought into this idea that it’s this great financial move. They make a big mistake, which is they rent modestly, so you might be renting with a roommate and renting a small apartment for a small monthly cost. And then you go and transition to buy, and you buy lavishly. And so you write that one down, your apartment but you buy a three bedroom home that’s got a yard and driveway and garage and so on and your monthly housing expense goes from, maybe $1000 a month to $3000 a month or something, and all under the guise of it’s an investment. But it’s not really investment because you’re not generating any income from that investment. You’re just burning money on every month for over 30 years.

And when you look at the numbers after you include mortgage interest rate and realtor fees and maintenance and insurance and you know all of the other fees that’s just going to taxes, property tax, all of the stuff that goes into owning a home, you actually end up with less money than you put into it after 30 years. You might have bought it for $100,000, sold it for $250,000 but then he actually paid into it $300,000 so actually losing money and the contrary would say, but you’re losing money with rent too, of like yeah, of course, but you’re losing money with both is my point. And so if you’re losing $1000 a month of rent or your spending 3000 month on buying a house, the real pain is the opportunity cost of what that $2000 delta could have been doing for you instead of going into this house that’s losing money slowly over time, it could be blowing up in value by buying and holding investment like index funds or investment real estate, where renters are paying you.

 CHRIS PRATT: Right. And the other thing I think a lot of people talk about is the asset valuation as you own a home for a longer period of time, the value of that home increases. But you’re taking a lot of risk in terms of an investment by investing, likely a large portion of your net worth in that home, whereas if you had invested that money elsewhere, you could be diversified in doing more safe investments that likely will have higher returns.

 JEREMY SCHNEIDER: That’s a great point.

 CHRIS PRATT: Yeah, so there are a lot of young people out there who want to buy a home, and you mentioned that they have this idea of, live modestly in an apartment and then live lavishly in a home”. So what should they do instead of living modestly with roommates and all that in an apartment and then lavishly buying a home? What’s the better option there? Or is there one?

 JEREMY SCHNEIDER: That is a great question. I feel like the message I’m always trying to put across is don’t buy into the myth that buying is automatically a good thing. And so the question is, OK, what is a good thing? And the answer is, if it’s if all things are equal, buying is slightly better. You know, if you’re gonna pay $1000 a month in rent or $1000 a month for your total housing expenses, I said, total, not just mortgage principle. That includes property tax and HOA and Realtor fees, you know, and maintenance, and very rarely does the total add up to that because people don’t account for those stuff. But all things equal, buying is better because, you know, you might just lose some of the money, but I think the good thing here is basically, be humble when you are looking and be realistic about what you want. If you don’t want to buy a house then don’t,  just keep renting modestly. I rented modestly until I was 39 years old and I had almost four million bucks in the bank, and that worked out great for me.

Honestly, I just bought a house, you must know and I moved in a month ago and it’s cost me a ton of money. My network is dropping partially because of Coronavirus, but also because of this house, because that money is no longer working for me. It’s just sitting here in this house, incurring fees and taxes. So what to do basically is, if you want to buy fine but just buy really modestly or “house pack”.  See if you can rent a room in your house or buy depending on the part of the country. Or buy a duplex, and have someone rent out one side and do all the maintenance on the other side. What you don’t want to be is to become house poor. House poor is when you make $3000 a month and then your housing expenses $2000 a month. And so then every single month you are basically a slave to your job just to be like, just to walk into your front door. And then you’re like eating scraps. You want to keep your total housing expenses to at least under 1/3 of your take home (pay).

 CHRIS PRATT: Do you have a recommendation for, like, what percentage of your monthly income your house payment should be?

 JEREMY SCHNEIDER: Yeah, I used to work in rental housing. And there’s like governments that deal like affordable housing and low income people. And basically their bar was if you have to spend over 1/3 of your take home pay on housing, then you’re in need of low income housing, you are in need of affordable housing. And I think that generally applies to low income people. But I think a lot of higher come people are like, Oh, I make 5000 a month so I can spend 2500 on a house and still be okay. But then they’ll probably spend the other 50% of income on car and food and trips, everything else. And then at the end of the month, they got zero left. Then you fast forward 40 years and you’re a broke person with a house. And so you’re like, okay I have to sell my house now so I can afford the cat food or buy my medicine or whatever. But if you, instead of paying 2500 on your house, spent 2000 or 1800 and took that 700 month and invested it, then you’d have a couple of million bucks in the bank at retirement, which is a way different opportunity, right?

 CHRIS PRATT: I love that. And I love what you just said. Don’t be a broke person with a house! Yeah, I mean that there’s so much truth to that. So for some of them, maybe more entrepreneurial minded people or maybe people who are just a little bit more curious. Could you talk a little bit about how you started your Internet company and where were you? What was it even?

 JEREMY SCHNEIDER: Sure. I think we have a lot in common, actually.

 CHRIS PRATT: We do.

 JEREMY SCHNEIDER: You’re kind of me. You’re probably 21.  I’m 39, 18 years ago.

 CHRIS PRATT: Well hopefully we’ll have a lot in common.

 JEREMY SCHNEIDER: Yeah, by 18 years old I was graduating from a Big-10 school, University of Michigan, New York, Penn State and I also had just come off into two internships at Microsoft, studying computer science and Microsoft offered me a full time job for what back then was a lot of money. It was $74,000 a year, plus a $15,000 bonus. So all of that is equal to, I think is $89,000 or even more than that.  I remember it like over $90,000 when you add up all the other stuff, which of the time was a lot of money.

 CHRIS PRATT: Sounds like a lot of money.

 JEREMY SCHNEIDER: Sounds like a lot of money for a 21 year old. I turned it down because I didn’t really want to work for another company and I just didn’t like doing the same thing every day. I was dating a girl who lived in my college town and didn’t want to leave. And so, I didn’t want a real job and I couldn’t leave my town.

 CHRIS PRATT: Oh, no if we just stopped there, I think a lot of people would think that this was gonna be a horror story, but it’s not. It’s not OK, keep going.

 JEREMY SCHNEIDER: Well, I guess I’m only painting it like that because I didn’t really know what I was doing. And I just said I was gonna start a company, and no joking, I literally Googled,  “how to start a company?” I didn’t know how. Do I just walk outside and declare it ? Do I fill out forms? I literally had no clue of what I was doing and looking back and the logistics of actually thinking the forms and stuff is relatively irrelevant, like you can figure out in a day or two of Googling or whatever. The problem is, building a product or a service and getting people to give you money for it, right?

 CHRIS PRATT: Yeah, getting some income.

 JEREMY SCHNEIDER: You want people to wanna give you money. Yep. Right. And so yes, And I started a company, I’m sitting in my bedroom on my computer writing software, and over the course of a few years, I basically built a product which was in the rental housing space. If you’re a renter and you’re looking for an apartment like searching for an apartment, you could look on Zillow, our apartments.com or Craigslist or rentals.com or apartment guide. And there’s, like 50 of these different sites. But if you’re a landlord and you want to advertise an apartment, you are presented with this problem of how do you post to 50 sites and maintain a constant presence? So I made a site where you could post once in advertising all 50 sites for landlords. It’s the landlord who basically pays us and then automatically syndicates all those things. It’s called the RentLinks, it still exists. It’s still a great service. I don’t work there anymore. I worked there. I started it and worked there for 12 years and then another two years.

 CHRIS PRATT: And so how long did you work there?

 JEREMY SCHNEIDER: Yeah, basically 14 years of my life. I was doing this up until 2017. So basically, it was three years ago when I quit my job at the company who acquired us.

 CHRIS PRATT: Wow, that’s awesome. When you were deciding to sell your company, Did you have any partners first of all?

 JEREMY SCHNEIDER: so I was the sole founder. We never took any funding whatsoever. I feel like these days starting a company doesn’t have to be, but it often is just like step one is create a powerpoint and step two, is go find people to give you money or donate money to you in terms of investors. I just never did that and honestly, it wasn’t even like a sort of vision I had or any sort of, like purpose or whatever is just naivety. I didn’t think about it or know people who would give me money or I didn’t know how to fundraise. And so I just was hungry and I needed food to eat so I wouldn’t be hungry anymore. I’m not talking metaphorically hungry, I was physically hungry, and so I would go try to make something that people would give me money for. Like sell my wares and then every year I would just do better and better. And like I said, I have no idea what I was doing. But the only thing I’ll really give myself credit for in the early years wasn’t a great vision or a great experience or great strategy or great execution. None of that. It’s just persistence. It was nothing but persistence. You only have a business when you don’t give up, right? And so I just never gave up. I just was like, well I made my first year in business, we made $14,000. It was our top line revenue, which, by the way, is not enough to live on and that was our top line revenue. 

CHRIS PRATT: Were you profitable?

 JEREMY SCHNEIDER: Yeah, we were profitable. I wasn’t spending any money, maybe I spent $4000 or whatever. And so I made $10,000. That’s like $800 a month was my income that I could use to eat, it was not enough for food and for rent, just for reference. So I think over that year I basically accrued $10,000 in credit card debt. And so, after year one of being in business, I had racked up $10,000 credit card debt to like pay my rent and stuff. And then year two, we might have doubled our income or something. And so instead of having to rack up $10,000, I only rack up $2000 of additional credit card debt. And then in year three, I had enough money and actually we added up partners. My mom joined the company who was my partner and was a part owner of the company. We basically piled up enough cash inside a company to write a check to both her and I in equal amounts of $12,000 each, and so that I paid off my credit card bill, all once from the profits of the company in the third year. It sounds fast now, but that time there’s like years that we’re going by. I was like, I’m going into the hole, I’m going backwards every single month, and even then, when we made it, and I stopped having to accrue debt, we hadn’t made it, we like making $50,000 a year or, something. It’s a pretty low amount of money, and then you still have to hussle each and every year. And then, you know, probably 10 years later, we’re finally making a million dollars a year which we were interesting enough for someone to buy.

 CHRIS PRATT: And did you when you started to accrue accrue credit card debt? Did that scare you like, Did you think Oh, this is a bad thing? And then do you have a credit card today?

 JEREMY SCHNEIDER: Good questions. And you know, my life now is kind of about teaching personal finance and my entrepreneurial experience is a little bit different than the kind of tried and true lessons of good personal finance. And so, when I say I was just like living on credit cards, it’s a really good question because I don’t want people to hear that and say, OK, this guy did so I should do too. When I was doing it, I had a Plan B.  I had a big Plan B. It was called Microsoft, and I knew that I was like a very employable young in demand guy. And I knew that $10,000 while a lot of money, is not that much compared to that $74-90,000 salary at Microsoft that I was pretty sure I could get. And so and you know, they say entrepreneurs are risk takers. But I think the real truth is entrepreneurs have flexibility and have options. And so I basically, I wasn’t like a single mom of three kids with no degree who decided to take a risk. But I was like someone who was afforded the ability to based on, like where I wasn’t like forever. And so I didn’t feel good, but I was like if after a year or two or three of this, it’s just getting out of control, I’m going to close up shop, go get a job and then spend the next six months living on nothing. Pay off my debt, nothing. And then I’ll be fine, right?

So I definitely had a Plan B ahead of record. But that said, I think the line in the sand I drew was, if I don’t have enough money to pay for health insurance, (I didn’t have health insurance the first year or two or something) and so I was like if I don’t have money in the bank to pay for health insurance after a year, then I’m going to stop doing this. That’s like too much of a risk for me to bear. And after a year frankly, I still didn’t have health insurance. I forget exactly what happened. But I was like, basically like, Okay, I don’t have health insurance but I made $14,000. That’s more than zero. And if that number keeps going up and I’ll eventually be able to get it. So, I eventually got our health insurance. I just bought it through the open market, and now I have Obamacare.

 CHRIS PRATT: So, do you have credit cards now?

 JEREMY SCHNEIDER: Yes. So the second part of your question, do I have a credit card? Now the answer is yeah. You know, I pay it off in full every month. You mentioned Dave Ramsey, who is kind of the biggest name in personal finance right now, and he is famous against credit cards. And I don’t really blame him because I think a lot of people, if you talk about the nuance that he says, Okay, credit cards are okay if these things are all true and you pay off every month. I think a lot of people hear. Oh, so that’s fine. I’m to go buy a jet ski and not pay off my student loans, whatever. And so he just has a no mercy, no exceptions kind of rule on it that is not realistic.

 CHRIS PRATT:  I think it’s the idea that you give an inch and they’ll take a mile, right?

 JEREMY SCHNEIDER: Right. Yeah, exactly. And so I don’t blame him for it. And plus, he’s a personality and he’s telling a story. And so he wants to have a good, interesting story. But that said, yeah, of course I have a credit card. And the big thing that I actually disagree with him on, on a credit card thing is not that I want to borrow money or need debt or something. It’s more that I want a separation between my bank account number and restaurants and stores and stuff that have my account number. Because he says, just use a debit card.

 CHRIS PRATT: So it’s for your fraud protection.

 JEREMY SCHNEIDER: Yeah, exactly. And now they have protection because there is fraud protection on those debit cards. But the problem is like the onus is on me to get my money back and then deal with the fraud people. Or if my credit card number gets compromised and it gets run up, I just literally don’t pay that bill and the credit card company has to figure it out. Whereas in my checking account, if my checking account gets drained by 10,000 and then I have to go try to get that money back, I think probably I eventually can. But they are much less motivated to get that money back quickly because it’s not their money, it’s my money. And so, yeah, I don’t want my direct numbers to my checking account being everywhere which credit card numbers are. So yeah.

 CHRIS PRATT: That’s a great perspective. Yeah, I mean I don’t have a credit card right now. I do plan to get one eventually. But I was in, Cosmo Mexico and I was handing this lady my debit card, and it really freaked me out cause I was like she could just wiped me clean, especially, You know, you can put whatever tip number you want on the piece of paper, and we’re never going to see that person again. And you might never see that money again, especially,  if you’re dealing with that money internationally. So it was a really scary thing in a really eye opening thing for me, especially being a younger person who hasn’t had to pay for things when I travel internationally or anything like that as a kid. And so I think there really is a place there for fraud protection. Of course, you have to be careful, with overspending. Do you know anything about like, if people actually do? Because one of the things for instance, Dave Ramsey says, is that if you overspend when you have a credit card versus the debit card and you overspend when you have a debit card versus cash. Do you find that there’s any truth to that? Do you believe that sentiment? I know there is some research that backs that idea.

 JEREMY SCHNEIDER: A 100% and and I’m glad you asked, because that’s the exact next thing I was going to say which is just because I use a credit card and I’m a millionaire and I use it for fraud protection doesn’t mean it’s not without its dangers. One of the dangers for sure is interest. But I think a lot of people say, OK, I’m gonna get paid off in full every month and so it’s not a big deal, but the problem is you for sure, I for sure spend way more money because it’s so easy. Like I have it on my phone. I have, like, you know, Google pay or Apple pay. If you have an iPhone, it’s like walking in Starbucks. Like Okay, give me the things. Beep beep.  Your Home Depot people, swipe, swipe ding, ding, ding. And then you get this bill in a month, and oh! Who spent all that money? Whereas if there’s actual cash then you know, you just see it as a finite resource and you see it go from this to this. And you feel your chest constrict. Not that I want you to feel pain, or I want you to feel a lot of stress forever, but like it’s real. Because it’s real and it is a finite resource and it is your money. And so I and everyone, I guarantee me, person I’m a robot like I am like one of those sociopaths, I’m very analytical and mathematical. And I invest like a robot, and I think like a robot.  I, for sure as a robot, make so many emotional overspending things because credit cards make it so easy. And I think that most people are much more likely than me to do that. And so when you use a credit card, just know that you’re going to spend more money than if you were taking cash out of the bank and spending it that way. And so a low income person and you have a lot of debt or you’re trying to reel your budget in. I say don’t use a credit card or debit card. Use debit cards sparingly only like  for gas or something that they don’t take cash for. But just use cash, not forever but for a period of time to get your budget and check and get out of debt. Yeah, I think it will open your eyes to the difference.

 CHRIS PRATT: And I think that’s one of the biggest advantages of using cash over even a debit card is budgeting. Because you can take, you know, $200 out of the main account and start budgeting. Okay, I have $200 to spend over the next week or two, and that is all I have. And if I run out, then I have a very material way of knowing that I failed to meet my budget apartment, which is okay if you know, you’re just starting out, maybe you didn’t exactly meet your budget, but it really stings when you have to go back to the ATM or the bank. And you know that you over spent your budget for the past two weeks and you have to go back to the ATM to get more money. Yeah, I’ve done it, and it definitely works so absolutely loved that.

 JEREMY SCHNEIDER: On the flip side, if you like, just like in your car, you’re signing bills in the restaurant you don’t even notice it’s going over $200. You don’t feel it all.  Just imaginary money until you see the bill. And then you’re like, Well, gotta pay the bill. Or maybe you’re paying the minimum or whatever you’re getting yourself into that you needed even more help.

 CHRIS PRATT: I will say that the credit card companies are doing some things to try to help with that. I know that, my dad, for instance, any time he charges his credit card, he gets a notification and he gets an email that X amount of dollars were charged. My debit card. I get a notification? No, not my debit card, my PayPal account ,if I overcharged my PayPal account, it will tell me that my balance went down to this. So I get more of a visual understanding every time I make a purchase of what my balance is. So that helps a little bit, but it’s still not the same as cash.

 JEREMY SCHNEIDER: Yeah, I do the same thing. One of my little tips is to get those notifications when your card is charged just for the awareness. You know, if anything else, because a lot of times your card is being charged when you’re not even doing it right? Like it’s recurring fees or for the stuff you bought a while ago or who knows what. I have two credit cards, one which is like a super hold one that I just never gonna cancel. Then one is like that when I used primarily, and both of them, I go into them, I find the settings, and I think every credit card has this where you basically find the fraud settings and it’s the lot that says, Send me a text message if a large purchase ever happened on my card. And you can alter what you consider to be a large purchase. And so for both of them, I set at one cent, anything over one cent they text me, every single time. And then I’ll tell you the story. I swiped my card like my phone buzzes like that instant. Then I also have a text message history of my own spedings, Like, Oh man like, What did I spend? I could scroll up and see. So I think it’s like, just add the words. And then there’s also like, Oh, my gym just charged me an annual fee. They literally charge a monthly fee and an annual fee.I wouldn’t have even noticed if it was on my statement because it’s just another gym charge.

 CHRIS PRATT: Yeah. Well, thank you so much, Jeremy. That’s all the time that we have. One last time, we heard from Jeremy Schneider from Personal Finance Club. You can find him on Instagram at @personalfinanceclub. You could find his website at personalfinanceclub.com. Thank you so much, Jeremy again and enjoy the rest of your Monday.

 JEREMY SCHNEIDER: Thanks, Chris. 

END TRANSCRIPT

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