0:00

Hey this is Daniel! Thanks for listening to

0:02

D I Y Money! If you haven't already,

0:04

be sure to give us a five star

0:06

review on I Tunes so your friends know

0:09

that they can learn from the show. Now

0:11

enjoy the show! All.

0:16

Accept everybody Welcome back to

0:18

another edition of Be Ah

0:20

Y La Du. Da our.

0:23

What's shaken? Logan? Wow,

0:25

you just had an accent on the into the. I

0:28

was trying to acquaint. Does he would shaking

0:30

Logan? He's not. And. It

0:33

didn't work. I want try to. it's

0:35

okay. Well what are you doing this

0:38

spring? What are you doing to to

0:40

exercise? Go fitness school this spring because

0:42

I know you're you're out there climbing

0:44

in. I just for the first time

0:46

I've ever really done it went to

0:49

a climbing gym. Like. You

0:51

did you do all the time and

0:53

so like what would you have goals

0:55

for? This? Do you do climbing outsiders

0:57

at all inside? I mean just explain

1:00

this hobby that you have that you

1:02

didn't spoil. Yourself to me put

1:04

on. Everest. We're going to climb Mount Everest.

1:06

You. Have any why mostly climb indoors? A

1:08

lot of people who are really into climbing

1:10

will totally be the outdoor people. and they're

1:13

good people who like. Live. In

1:15

a van and eat granola. but.

1:18

Every. Meal I don't know. They're interesting

1:20

breed arm and that's typically like Sport

1:22

climbing is more what they get into

1:24

which is really technical and you can

1:26

do that in the gym. So all

1:28

sport climb in the gym. But.

1:30

I don't have the time or

1:32

discipline truly to be. Good.

1:35

Enough to where I can go out and climb

1:37

a lot of stuff outside, say for. Is like look

1:39

at a cliff and you're like and went to climb that. That's what

1:41

people do. Kind. Of so there's. Different

1:44

styles to even that like. there's like

1:46

crag climbing which is where you like

1:49

take extra pieces of metal up with

1:51

you and your like making what you

1:53

clip into in like crevices on the

1:55

wrong or which I will not ever

1:58

do that is terrifying Her arms. Those

2:00

people if they did see a glistening like own

2:02

a climber and they felt like they could set

2:04

it up for crag maybe. Arm

2:07

or they free solo it which tried

2:09

that once a didn't go well the

2:11

number it's a sensitive subject yeah this

2:13

was of his arm. Or.

2:15

Sometimes outlier gonna have to just gloss

2:17

over that. What you have told me

2:19

the story but own I am. Podcast

2:21

listeners need to know that. Put. Me

2:23

on blast disparate. So a couple

2:25

years ago I was hiking and

2:27

I was wearing my chagos and

2:29

I see a really nice cliffs.

2:32

And. I said alex pretty easy. I'm gonna

2:34

climb that I didn't so. What tacos

2:36

are is Alex Little. Slip percent

2:39

those classic sandals everyone wears. Okay,

2:41

or three on of the second guy.

2:45

Gets interesting. Ah so I see it. I

2:47

start climbing. I actually end up finishing the

2:49

climb and I put my right hand up

2:52

on this big rock to lean back into

2:54

it and then was gonna like hoist up

2:56

on the cliff and then walk down like

2:59

the actual pass. and when I put all

3:01

my we on that rock it shifted. And

3:04

so I sell like sixteen to

3:06

twenty seats. I don't know exactly

3:08

how far cause you know everything

3:10

like is kind of a blur.

3:13

Arm. And you're by yourself at this point?

3:15

No. I was with someone out of as

3:17

yeah I was with actually a young lives

3:19

get of mine said they were. They had

3:21

gotten their own intermediate so like their permit

3:24

and Kentucky than you can sort during by

3:26

yourself with area they had gotten that. Like.

3:29

Two weeks before. And so's like

3:31

hey we're going to go to the your can

3:33

you drive me and I only had her my

3:35

keys to go to the are I ended up.

3:37

Breaking. I had a hairline

3:39

fracture on like my wrist and oboe but

3:42

isn't that bad and then i like completely

3:44

broke my heel which I didn't know the

3:46

thing you could do their cell and it

3:48

was arable i am a lock perform on

3:51

you have climbed out that oh no but

3:53

since the last time I looked at a

3:55

cliff and said i'm gonna go fifteen feet

3:57

off that cliff for sure and probably hopefully.

4:00

The always be last and wow. That's.

4:06

Not my greatest moment. Bf

4:08

and I think a lot they are you doing

4:10

the one time that I did inside is actually

4:12

really fun. It was funded like you know climate

4:14

in the bowl during were in a you don't

4:16

have the harness on. yeah there's like these huge

4:18

mats under you so you don't fall fifteen feet

4:21

break your heel at that. was pretty funny if

4:23

you like modern he added but is really hard.

4:25

It's very if I. Feel like it's a lot

4:27

harder than the normal climbing. On ropes like

4:29

top rope Know these rich you are

4:31

obese. Because you told me you are climbing

4:33

like of five Seven For anyone out there who

4:35

knows climbing stuff on your first day. In

4:38

the jam with or five. Eight. I gotta five

4:40

A. I did one five A. That's what impressed me.

4:42

My son is not bad. I don't know what that

4:44

means but ah it's fun side. It's not that.

4:46

so I'm waiting for you to start your membership

4:48

at L E and. Will. Go climb

4:50

after work! Okay, well I think you

4:53

could be good at it. Fair enough.

4:55

Okay, we gotta move on. we gotta

4:57

get some housekeeping. Odds and ends Sponsored

4:59

this episode Knowledge: So by Duel Financial

5:01

J O U L Eve financial.com check

5:03

us out. You can see all the

5:05

different things were putting out. Subscribe to

5:07

our newsletter. It's really interesting to see

5:09

all of the different things are reading

5:11

about the markets. We do a weekly

5:13

review. Every kind of break down what's

5:15

going on in the world, Break down

5:17

the news headlines that you're seeing regularly,

5:19

send us questions Podcast Idea: Why. money.org

5:21

we need those questions Philip or to

5:23

Force please and then check us out

5:26

on the social media's it is D

5:28

I y Money podcast on all your

5:30

different sources are that we have a

5:32

good question today and we want to

5:35

get right to it. So what do

5:37

you got? Lily? They. Say

5:40

Dna many name is Lili. I

5:42

live in Baltimore, Maryland. A question. Is

5:45

about how to best invest a large

5:47

sum of money relatively safely. For a

5:49

year my fiance. And I just got

5:51

engaged and we're looking to get married. And Fall

5:54

Of Twenty Twenty Five. We already. Have

5:56

the money to pay for a wedding, but instead of

5:58

just holding it in a savings account. The

6:00

wanted to see if we could invest it in

6:02

something low risk. For a year before we actually

6:04

need to start using it for don't. Seen

6:07

it says will likely be in the

6:09

ballpark of around twenty thousand. Dollars the

6:11

only that we have this for one

6:13

car payments and a mortgage Think teams.

6:17

Okay, this is a great question Lily and

6:19

it's a really goes to something we say

6:21

all time on the podcast if it is

6:23

five years or less. Do. Not

6:26

invest so. Meaning.

6:28

When we say invest, you invest in something

6:30

that has risk, which means there's downside, like

6:32

you could lose money on that investment. So

6:35

you said something along the lines of something

6:37

that's not too risky, while we actually prefer

6:39

something that has basically no risk. If you

6:41

are, if you are investing something that's under

6:44

five years that you know you're going to

6:46

need the money for, and you already have

6:48

the money set aside, because what you don't

6:50

want the worst possible situation is that you

6:53

have. Was. Caught We you know

6:55

you said twenty twenty thousand dollars or whatever

6:57

it is that you are meeting in

6:59

a year and you go a year

7:01

later in the market has been down or

7:03

something that you only have eighty thousand

7:05

and now. It. Now you're taking

7:08

the money out out, potentially at a lower

7:10

time in the market. A bad time to

7:12

take that money out cause you need the

7:14

money, you need to use it so it

7:16

makes it. It causes you to make poor

7:18

financial decisions if you have something that is

7:21

risky within a five year window and it

7:23

it can give you into a situation where

7:25

you're trying to buy a house or there's

7:27

some kind of thing that's happening where you

7:29

need money and now that money's not, they

7:32

are not available south. We recommend something that's

7:34

risks free vs something that has a little

7:36

risk or something. That is more aggressive than

7:38

that. So we're not talking about stocks.

7:40

Will talk about X Equities on this

7:42

episode. Even Eat Yes Mutual funds? We're

7:44

not talking about that necessarily. Were talking

7:46

about things that are risk free alley.

7:49

What kind of things are you thinking

7:51

about Whenever I say that. Is

7:53

nice ice. Has a little face

7:55

and is that doesn't work a lot of

7:57

the nurses. I like that. A Here's what

7:59

I think. And here's my characters question.

8:01

Honestly, I think that's a lot of times

8:03

we'll kind of start the conversation. We've talked

8:06

about some of these different tools a few

8:08

times and how to have an emergency fund

8:10

which is kind of how I would treat

8:12

excess cash that you need in a year.

8:15

We talk about that little the and the

8:17

we can stop the conversation. Why I like

8:19

this question is the opposite side of that

8:22

is. I also don't think the answer is.

8:24

Put. Into a checking account. And.

8:27

That were, you don't have to worry about a

8:29

law. Or a savings account with

8:31

paying you point zero, zero one blade. right?

8:33

So there are a lot of different tools

8:36

that you can use that a middle ground

8:38

where you're taking on lid very very little

8:40

to no risks but actually getting a

8:42

little bit of a return and I wanted

8:45

to make a point to say. The.

8:47

Answer to one year less expenses is

8:49

not always that checking or savings vehicle.

8:51

The expression Answer: A lot of you

8:53

have heard if you take care of

8:55

the pennies, the dollars will take care

8:58

of themselves. So if you're. Really

9:00

diligent about making a little bit

9:02

of interest or a little bit

9:04

safely on your principal on this

9:06

twenty thousand. And you have

9:08

that same mentality about your whole portfolio and

9:11

every different avenue that you have money invested.

9:13

then in the long run it's gonna make

9:15

a huge difference in your overall plan. I

9:17

mean I took my car you know this

9:20

a couple days ago down to the shop

9:22

and it's like a little mom and pop

9:24

kind of shop. and so when they texted

9:26

me as when you know it small that

9:29

my car was ready they're like hey, if

9:31

you pay cash this is the amount and

9:33

if you pay like credit or debit card

9:35

than it's this And I was like. It.

9:38

Made me sick. There was a twenty dollar

9:40

credit card fi well and it wasn't even

9:42

that like that expensive of a carville and

9:44

sounds like how am I gonna get cash

9:47

or check. To. Pay for this car like

9:49

I'm not paying twenty dollars just because they're swiping my

9:51

guard that stupid. So I go in the shop and

9:53

I'm like hey, like I guess I'll pay card like

9:55

I don't have my checkbook and I can't go on

9:58

to get it because you have my car. And

10:00

he was like well you have you want

10:02

to run your card and then you can

10:05

go to the bank and get money and

10:07

then come back and I'll reimburse your car's.

10:09

Is an interesting thing. they did or

10:11

did not always card for. And I think

10:13

he was fine or that I think he was

10:16

just like have someone who cares is an interesting

10:18

So I was like now now it's foreigners make

10:20

art and then as a slightly my card something

10:22

inside of me was like. No.

10:25

I am not paying twenty dollars for

10:27

the convenience of I'm going to the

10:29

banks of like you know what. I'll

10:32

be back for God's on for Iraq

10:34

or sandwiches all of us so drive

10:36

over to the Bank again it I

10:38

come back. And. He was like

10:40

shocked that I cared and use like I was

10:42

like i wish I knew before like I totally

10:44

would a broom brought a check next time as

10:46

I bring my cartier I totally well thanks for

10:48

doing this and he was like to be honest

10:50

with you. There. Are so few people

10:52

who care in other like most people don't

10:54

even bat an eye and use like i'm

10:56

the same way and that like put a

10:58

stuck with me where I was like you

11:00

know. If. I'm saving twenty dollars picking

11:02

up my car the other people aren't

11:05

and I'm doing that consistently. Even if

11:07

it's twenty dollars a week. I mean,

11:09

that's one hundred dollars a year, right there?

11:11

That's going out of your quick

11:13

ringing. Really intentional, So Sir Scherfig

11:15

specs. I would say that I would

11:17

say take your the pennies left dollars, take

11:20

her in the cells, and so to get

11:22

a little bit more interest and try to

11:24

take care of those pennies, you could use

11:26

something like a money market or put it

11:28

in bonds if you know exactly when you

11:31

need the money on Cds or treasury something

11:33

like that. But make sure like Logan said,

11:35

don't put it into the market, Don't play

11:37

the game, gamble, and potentially lose some of

11:39

that when you need it and you'll just

11:42

be kicking yourself when a wedding gowns. Yeah,

11:44

go back and listen to some the different

11:46

episodes we have about Cds or treasuries

11:48

or money markets are high yield savings account.

11:50

Sue for people that are sitting out there

11:53

and they have that savings account right

11:55

now that pain point one percent are paying

11:57

a very low percentage just the hold your

11:59

emergency fund or if you have once

12:01

for a near term goal that are sitting

12:03

there are a you. There's money out there

12:06

that is. You're basically walking past. By.

12:08

Not opening a high yield savings account. Still,

12:10

as the I see insured, you can look

12:12

up these at the or a an ally

12:14

bag capital One. There's so many different ones

12:16

you'd use Discover I think there's there's so

12:18

many different places where you can get a

12:20

high yield savings account this paying over four

12:22

percent right now just for having your money

12:24

Sitting in the savings versus what you're getting

12:27

is nothing in your savings account so definitely

12:29

look into those are a treasury bond I

12:31

think is a great option. Cds as well.

12:33

obviously Cds. You can get a your bank

12:35

treasury bonds. You can get it just a

12:37

brokerage account so you could open. A Brokerage

12:39

account at of Fidelity A Charles Schwab. So

12:41

many of these other brokers and you can

12:43

go in and actually by a bond. I

12:46

know this is this a like check writing

12:48

for young people's like people don't actually buy

12:50

bonds very often but you can actually buy

12:52

a one year United States Treasury bonds that

12:55

will mature after that year period and will

12:57

pay you whatever the interest rate it at

12:59

the time is. A one year right now

13:01

is pain right around five percent. See you

13:04

get a nice amount of interests on that

13:06

bond as it comes up to maturity self.

13:08

Definitely looked into those different areas is really

13:10

important that you get that that saving. So

13:12

I love the question from usually I would

13:15

go with one of those options: money market,

13:17

treasury bonds, high yield savings, or even a

13:19

Cd at your bags. The only thing I

13:21

don't like about Cds is that they sometimes

13:23

have a penalty if you needed that money

13:25

any earlier. Doesn't sound like that's the case

13:28

in the situation, but look into those options,

13:30

pick watch ones best, and look back at

13:32

our previous episodes because we talk a lot

13:34

about these different things. but it's very, very

13:36

important to utilize them. You know, Where. The

13:38

a Buyer for Task or Evans I get

13:41

outta your paycheck. Every United States bombed makes

13:43

you a business partner with Uncle Sam as

13:45

me down into putting aside the as well

13:47

as much better. All right. Thanks so much

13:50

Lily for sending in your question. The secret

13:52

to wealth is really very simple. Live on

13:54

less he makes lots of any the dollars.

13:56

The follows do a for very long time

13:59

I get Roman. Link:

14:09

Is this ever heard of a show? If

14:11

you want your question here on the t

14:13

here to combat is awesome and you hit

14:16

on Amazon.