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Saving with Steve, 22/02/2022

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Saving with Steve
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Guests, Adam Kaat and Murry Sabin

Saving with Steve with Steve Sexton

Guests, Adam Kaat and Murry Sabin

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Saving with Steve

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The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.

We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.

Weekly Show
BBS Station 1
6:00 pm CT
6:55 pm CT
Show Transcript (automatic text 90% accurate)

everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton<br>saving with Steve show where we talked about the ins-and-outs of money pretty much everything of the central AC you having a happier or healthier relationship with money my name is Steve sex and I want to thank you for joining us today we have a wonderful show and we're definitely talking about money we're also talking about all over the pandemic here think about this we've seen home prices go up we should car prices go up your gas has gone up your food is gone up pretty much everything including the stock market of Ghana are we potentially looking at bubble baby and everything bubble up because she's got to come down despite the efforts of the Federal Reserve to strengthen music Connie and instead created an unsustainable boom that inevitably lead to some sort of bus based off several indicators the next bus maybe just around the corner we're really lucky today in the second half of the show we are so glad we have dr. Maurice Abron he's a professor of Finance he's the author of navigating the boom-and-bust cycles of bubbles<br>image of things that you really want to stick around for whether you're managing your own finances your own business and medium-sized business but nonprofit I'll be talking about how to reduce your debt that new year you're going to definitely want to stick around for that being debt-free is great because you're always want to earn interest instead of paint it we have a wonderful wonderful story great book great author named Adam cat see we've heard so much about Frontline workers hospitals doctors nurses and all the things that we done but we haven't heard all that much about the other front-line workers which is the cashiers that work at grocery stores that have helped people out through thick and thin were talking it people with anxiety they're frightened they're angry their politics. All that stuff that they had to deal with we're going to hear from Adam cat who's the author of life on the grocery line of front-line experience in a global pandemic which be really very interested with that thank you<br>I'm part of the saving with Steve show and I want to welcome to the show and I appreciate it when you look at the pandemic you see all the new stories about what's going on the hospitals and all that kind of stuff yet everybody when you think about it is they've got to go to Costco that got to go to the grocery store that got to get food and got to get goods and all that kind of good stuff yet people that worked at the grocery stores there were there every day even though everything else was cut down and you were person who lived that so my understanding is your right all right yeah okay so you're a writer you looking to pursue that you started take on a a grocery store job and then the pandemic hit I think I've always been a writer in the way kind of personality more than anything but a right on the side and the king of the end of 2019 was working a corporate job that I hate it so I decided to take a few months off and cash out my 401k and work on a novel that I'd wanted to write for a long time while I got to the end of 2019 and I needed money so I start working in grocery store<br>and give me early January by mid-march everything changed I thought I was going to be a fun job something to do on the side while I worked away on my great American novel you know and the school shut down all submit plexiglass with masks everywhere parents are freaking out long lines empty shelves Panic fear in people's eyes and the cashier I had to deal with abruptly and immediately like everything started to change so the best thing for me is right about it so I start a blog called life on the grocery and the games are really big following the game to community like people can really relate to us and they were they're worried about their loved ones there were no one knew what this virus was like I remember when people thought that your pets could transmit it all sorts of strange like no one knew I was going on so it grew and grew until I shared a lot of stories and I turn those stories into a narrative became a book based on my whole experience and yeah we published in April of this year<br>I want to say it's almost 4:00 in like one little sliver less than five star so it's doing very very well I think I'm going to congratulate you for that but things I'd like to talk to you about here before the pandemic what was it like working at the grocery store whether it's a nurse or doctor you it's kind of same thing in life normal what's the typical experience when you have a customer come up go through cashier like my drawer towards a job was a kind of Gift of Gab I like talking to people I like interacting and that level now I knew that like cashiers are treated very well by a lot of people I did just ignore them or whatever but I thought it'd be fun in that sense you know just joking around and it was really a first like you know I don't know I'm just messing with people are joking around having a good time very very busy store yet to learn quickly that change so quickly because alternate plexiglass up and you can't hear the people and you got a mask now and it feels like you're behind a wall and you're separated from them and there's no intimate moments anymore everyone's very isolate<br>even when they're only 50 feet apart it's like being stressful and unnerving when you have lines to the back of the store and everyone has that look in her eye like they've been up all night in the hospital waiting for a loved one or something you know that the Deep Pockets and there are super scared and you have a good moments with certain people like when you could share them to talk about their fears or what's going on in the world or just now trying to mess with you but you can tell jokes anymore so it was strange that really weird very quickly and did you have people take things out on you just because yeah and we were running out of a lot of stuff toilet paper are we out of toilet paper out of yeast out of canned goods we also started run out of bags because we're so busy and we can get in and then I remember one woman she wanted me to double bag the groceries when we were told not to do that and when I told her that she proceeded to start to lose it and she started grabbing everything off the conveyor belts and grabbed a bag right out of my hands and threw it into a car<br>the whole time she's doing is she saying it's not you it's not you like you can just I don't know it's like just losing it in real time and is she's storming out of the building she looks back says something to me likes her hand and slaps it down on the final register and was one of the morning early and things that experienced my entire time they're I just feel for real life is Stranger Than Fiction sometimes and that's really what it was for those first few months for tomorrow first thing in the morning and try to you know get their way in and make sure they're the first to get whatever if you got stuff coming in I was at least an hour early the first hour of the day was for elderly people and then you were doing a counter at the front so if you were the person at the front yard to stop people here to ask them to put on a mask you delete all these new duties that kind of go Way Beyond the scope of being the cashier or someone working put the cards away your responsibilities increase so dress<br>and these people didn't understand I mean everything's changing so rapidly that you would get so much to push back people would just yell at you for no reason and either dealing with their own things but people don't connect the dots that and I don't choose to do this that's not my idea is to stop you from getting in the store they put so much undue pressure on a lot of cashiers and grocery store workers in general for sure are you finished I worked there from January of 2020 all the way to May of this year and now I'm working a big CBG company in supply chain I stepped into from one craziness into like a whole new level of like there's like no one's getting their orders everyone's getting caught everyone's upset and this is that like an account management level you know you're talking about orders then only still at 25% or something because we have Supply constraints and the whole supply chain goes all the way down the line and it's weird to see that from the beginning of why this is starting to happen to the fruition and now I'm seeing like the higher end of it white like shelves are empty<br>what you're saying right now is you're in the logistics side of things and you have clients to say hey I got 500 of these and I'm supposed to get but they're only getting 125 every industry really like I work for one that does mainly dairy products but like it's in every industry everyone's getting shorted or their orders get pushed out 2 weeks it's kind of feel like it's never-ending that we're kind of told that it's not open and either doesn't believe it's going to end for another year too yeah that'll be sometime in early 2023 that things will end because it's just not so right now basically what you're saying is you're still taking pressure but the pressure is coming in a different fashion because you're now handling Logistics side of dairy products and everybody wants to get their milk they want to get their eggs they want to get their paltry all that kind of good stuff he is still hay were short now is the dairy products coming from all over the world or just here in the states or made a mistake<br>Mercy a little customers just aren't getting what they need and it's different like when I worked in the grocery store and you can get the book at life on the grocery line with them when I was in the grocery store you can handle it and real is almost real time we got to get became surreal to a certain point where I just floated through the day like the I never really took it that personally I guess I didn't have like the breakdown like I know other people didn't I totally understand. I mean it was bananas my way of dealing with it was writing and dealing with stuff face-to-face and being on that front line as a post like now I'm just I sit my like apartments and people send me an email so I guess and I don't know it just feels like a crimes on forever it feels like we've been two years in right but on the ground floor of the whole time I'm just in a different spot right now<br>expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the ins-and-outs of money was Financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending on your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton about the ins-and-outs of money I just want to make sure you're all know all the replays are available at saving with Steve. You asked if you're enjoying the stories of helpful information and inside on saving with Steve and I encourage you to subscribe to your YouTube channel Google Play Channel Spotify and so you never miss the show check out our field that UK help radio B vyas radio talk radio New York City 360 TV in Las Vegas TV networks all these networks are dedicated to empowering you solve problems uplift your spirit and live a life of financial personal freedom you can follow us on Facebook and join the C-section insiders Club at sitting with Steve. Us if you'd like to suggest a topic or guests for the show just go to viewers at 6 to saving with Steve. USS viewers at knitting with Steve.<br> us and citizen your topic your question will make sure it gets answered now we have Adam cat here he's been discussing what's going on with the supply chain the grocery store line I mean you had a stressful year-and-a-half<br> that's cool<br> now you're now you're working and supply chain people are seeing or stores are actually seeing 25% of the orders that they've made and then you know what are you are then you know what you you're dealing with agistix are you dealing with any of their pricing at all<br> not directly but I know the prices going up because the lack of good and you know part of that had to do with the volume of producers going down early on in the Pandemic part of it had to do with over demand that occurred in the beginning of the dammit pandemic so if somebody's working or going into a grocery store right now you know what and they are you know what the right now it's on the Quran and everybody's freaking out about that you know I don't know where you eat in Colorado that where I live lines around the corner trying to get tested trying to get booster shots all that kind of stuff on my son's come back from college but he's supposed to meet two or three friends and two of the three friends her father's got miyoko bed so it gets for not meeting up, man<br> you know what you've created a process for yourself almost like an outlet to relieve your stress and I can see where when you talk about you know hey there was other employees that had no place to go which means they probably left the job it after getting you know almost put in prison on their you know their checkout line with a mask had to tell people to put on mask and deal with that pressure or stress everyday and then to go home and see it on TV again so we're just kind of got added an ad in you know someone had a tough time if you were there you know what what was your process for relieving this you know what obviously as you had a process to do this I'm part of that was riding but how did you get through it besides just you know walk through that process so somebody else listening and go hey I have a similar process but my superpowers that writing is maybe working out or cooking or planning or whatever right<br> you don't like like<br> for me I didn't look at the job as a forever job now I know people do and I don't think there's anything I think it's admirable work I think whatever you do in life you should do with enough effort and work hard at it and like put it put in as much as you expect to get out and so for me I just passed away cuz like I said I was able like I just observed it for the certainty that it was like I told me it was absolutely absurd what was going on in like to be in this moment in time in to realize that you know like everything's melting down everything that everything feels even though you know it's probably not gonna it definitely felt like it and you know it takes for that to writing was the best outlets for me but it also like maybe just leave it on the bike the paper I didn't have to come in with what I experienced the next day I just kind of left it out there and your people were feeling the same way that's why<br> Rochelle back is because you know so many other cashiers of retail workers are non-essential whatever however you want to put a gave us that term you know they just swim<br> they related to it and like that feedback loop was really nice for me I didn't feel so alone when I went home and sit on Twitter and don't Doom scroll about the deckhouse in all these crazy things that they do major news outlets would tell you like you said they're right on CNN legs just the death count and all these unknowns and yeah that was definitely a pretty important thing to me and I like I tried to connect with people that I worked with two and we talked about a lot of things I feel like I went through the trenches with a lot of them wrong this together like even though they were saying that and didn't feel real you actually were if you were working in the grocery store with other people that had to sit there for long hours and they're offering overtime and extra pay and it just that I didn't even take the overtime because I was so tired and just done with everyday whenever you ordered the $400 and people are like<br> let's give me the scowls in the or they won't talk to you cuz they're staying so far away and I'll just you know what I think what's the name of your blog<br> to life on the grocery is the blog and that's all so you can get it'll take you to anywhere to get the book she can it also I don't use a Blog anymore I haven't sold it in since I started posting for my second novel for second book that I'm writing but you can scan through fast and see what it was really like in real time I'm going to see what led to the book I would also that I have signed copies that are available Darren like life in the grocery line masks but I know the cloth masks but they're still pretty cool sounding what's really cool about what you've done is you create an environment we're kind of our community or Fellowship where people can go say hey there's other people dealing with the same stuff I am and I always equate to kiss black when my home was funny cuz when we had little kids and when they were little three and four and all that stuff out of the playground my my my wife was with a bunch of other ladies and one ghost<br> does your kid eat the Crayons to you know and they're like oh yeah and they all realized my kids not crazy just normal so that's what I love about a fellowship and what you're doing isn't it that you created a community where people go hey you know what somebody's dealing with the same stuff I am oh my God it's worse than me that's just me though. Kind of takes the air out of that the steam it's in their head and for you is riding but you created a wonderful opportunity and quite frankly if your box stays up I think you know people would it make sense for those people who are dealing with those type of things to go check out your blog and to see what the other people are saying and you know what they might not say anything but they'll be able to read something or maybe they just write something in there even though you're not keeping up with it so they can just get it out of their system to yeah it was you know what Leo mention there's a podcast called the retail Warzone that when I publish my book it reached out to me and they've grown a lot since then<br> if you're in retail or you working at world at all are you really ever have they really they speak so well to it so I just heard people to go check them out because they called the retail war zone retail war zone and you can find on YouTube the easiest spot but they didn't do such a good job of kind of breaking down will people go through like for management to Pharmacy to the to the grocery store workers and it's it's really great stuff and I never would have found them without the books I love how people bonded together during this time I know it drove a lot of people apart with the pandemic it's hard but there's some you can find the positive and laugh with my book is definitely a dark comedy in lot of ways and if you can laugh at it when I will we're all going through the hardest times<br> it's pretty big wonderful that way if you look at it right now hey you know this tells you whatever<br> there's a lot of people who think their life and career is over but they're realizing that there's something at the end of the rainbow and they can get through it just like everybody else did into have Fellowship for Community makes a big difference so let us know how people can go about getting your book again and then I'd like to talk to you about what you working on next so you can go to life on the grocery and that'll take you to that you can get signed copy they are or you can go to look at links to Amazon and Barnes & Noble you can get it online anywhere and what about it a bigger scale than just about to call you can read through the first post all the things that like people share stories with me I remember this one woman she said that her dad was elderly and he wanted cinnamon rolls like you can go anywhere so she had to go get them and she shows up to the store in this is the heart of the Blake this is maybe April or May everyone's freaked out and she<br> and she asked me do you have the cinnamon rolls that you know my dad or grandpa is like and like no but you know what we had a Bosch come out we'll make them make it right for you in the Box getting done for you a lot faster than they would and she said she started to cry and I know it's cinnamon rolls and maybe it seems like kind of ridiculous but to me it's like no that was with someone else could do for someone else just a little thing a little little thing like that connection will always be there I would think you know it's pretty beautiful in that way that's wonderful just wonderful so I got about 25 seconds what are you working on next so I have another novel three men working on that hopefully will be out middle of the year so the grocery store a novel and I'll be more about the broad scope I want to do something where I talk about the love-hate relationship I had with work<br> grocery store because it's a pretty amazing place and it the whole lot of humanity going on in that joint and then like a lot of interesting people and it's there for thirty years to college students to all the different Dynamic so I want to explore that my Nextbook be a bit awesome so far for the ladies are going to love it yeah right look life in the grocery line all about the pandemic hey Adam I want to thank you for joining the show he can see in the background there you know what love to have you back when you get your Nextbook done it like to hear what did you want and how it's going and you stay safe stay healthy and will look so forward to talking to you in the future absolutely Steve I really appreciate you having me on man I really like this is great that you want to stick with this word e right back with more shaving with Steve more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where to be talking about the in an ounce of money bills Financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton hey welcome back to the shaving with Steve show where we talked about the ins-and-outs of money what is thank you for joining us and listening in we just had a damn cat you know what is a wonderful book life on the grocery line a front-line experience and a global pandemic wonderful book almost 5 stars on Amazon few more people are going to be purchasing that thing and you know what you might want to take a look at it too next up we're going to be talking about how to reduce your debt in the new year you know what it's really interesting because we we study show that the retail had a wonderful time<br> production-wise sales-wise Amazon wide with people purchasing things for the holiday and credit card purchases were many people leverage their credit cards to make sure they can create a wonderful Christmas for the ones they love and care about which is great now on top of that we're dealing with inflation which is rising cost rent gas food things everything that we got is a little bit more expensive now when it's a car or whatever now that's sad<br> right now we're in the New Year might have that resolution where you want to take control of your dad reduce or eliminate it might be your goal but you don't know how this is the time to get your pen and paper route listen to the sports in the segment two or three times I caught with Siri fading I'm going to walk you through how to organize create the snowball to pay off your dad ways to reduce expenses and keep doing what you're doing right now but have the money to pay off the debt and sell it okay and also some ways to create some siding come first of all this organized at the best way to organize your debt is list all the credit cards all the mortgage is all the auto loans any loan that you have personal loan whatever start by making sure you have the lowest balance first all the way to the highest bounce then what is the minimum payments for each and the next, then what is your payment date okay then after that you want to make sure you have the interest rate<br> the snowball method is really designed to create a Snowball Effect and you paying off your debt a lot of people say hey I want to start with the largest debt and pay that off first some people like to say hey I'm going to start with a credit card or the debt that has the highest interest rate you pay that offers some will start with the lowest balance because they want to see progress quickly and here's what we do what you're going to do is you going to pay the minimum payment on every single one of your debt the next thing you're going to do is you're going to take as much as you can extra and paid on on top of the minimum payment that you want to pay out so for example you have $100 minimum payment you have an extra $100 so you pay $200 on that one credit card and you pay all the minimum payments on everything else and every month he had that once you paid off that first debt it's gone right so what you do is you take that minimum payment that you're paying their plus the extra and attitude<br> minimum payment of the next day and so on and so on and pretty soon you created a snowball effect in your dad is significantly reduced or paid off now some people are saying hey Steve we got inflation here we got things going up and up and up I got a lot of debt I'm champing the nickel already how do I reduce or eliminate expensive so let's start by looking at everything you do number one hey if you have a cell plan there are multiple cellular providers<br> that could lower your cost you know what we used to have AT&T we lowered our cell phone bill because there's the four of us by $80 a month you might say hey while $80 is a lot of money with every little bit counts then we started taking a look at our table and right when I first did this were paying almost $272 on cable plus the streaming stuff you don't we did we eliminated the cable and just had internet<br> we didn't hit and then all we did is we have her three or four streaming packages so now we're down from a 270 right now one down to one about 1:15 hour to about $220 a month through over $100 savings there and look at your utility bill hey you know what you can save 30 bucks a month by reducing your temperature on your thermostat by one degree every single day okay so that means if you're at 66 make it a 65 at wear sweater or whatever the case may be okay look at Travel there's two of you in the house who is driving further to the office at once he was driving a truck to Camp Pendleton every day his wife was driving the present and she's putting 10 miles a day he was putting the 75k he was going through 5/16 a month in that truck and all they did was switch okay<br> save $300 a month just by doing that now I'm looking at Food you know what we used to buy those bags salad at 4 bucks a piece you know what now we buy the romaine lettuce or the spinach or whatever let us we want we have some nuts some cheese and some dressing we buy the raw materials and by drive-by in the raw materials we went from paying 399 today for a salad * 20 days you're looking at about $80 a month to about 12 was actually a $60 saving we stopped buying pre prepare food from the store and bought the individual things saved us a ton of money next we looked at eating or eating out oh my God we were the Starbucks fans actually my wife like another coffee place but we started buying the Keurig cups<br> creamer sobach security I just saw a Costco $26 for a hundred of them $5 for three minutes thirty $1 instead of paying five to seven dollars a day for coffee on a 30-day work month in or looking at a few hundred dollars down to 40 so there's money there travel start looking at different travel ready to go get this bug called plan your Escape by Wayne Dunlap it'll show you how to travel the world for less and you can see the ton of money and still go travel you know what there's a lot of ways where you can create an opportunity for you to save money by still doing a whole bunch of stuff when your friends we started a gourmet group so basic what it is is we have one thing to say it's a German I thing okay great so somebody makes a German main dish and everybody else bring side dishes and their own alcohol and they able to socialize without going to dinner and all this being a hundred bucks each<br> was very simple very easy to everybody loved it dang you know what the ladies have their Bunko they started doing it I couples bunco everybody brought their own alcohol and a little bit of you know what was it that the house would have little snacks and stuff like that dessert what is relatively inexpensive less than $50 to have it and already was rotated from family family the next thing is we seen Park things where everybody goes out the park that the games the whole shot and you know what everybody's bringing their own little lunch it's just an opportunity to socialize hiking things like that wonderful ways to go out and do things without spending a bunch of money now if you wanted a fly the amount that you pay off consider getting a side job down some people will be Consulting if they're already they already do that type of work they do a consultant and eating 20 hours 5 so my clients are making $20 an hour as a tutor in English for p<br> overseas there working 20 hours a week being a tutor okay and they're making 400 extra dollars a week that's going towards their credit card so they can get those out of the way you know what you can go do a drive-by share Uber Lyft whatever the case maybe or doordash and make a few extra dollars that we just want to make sure it's profitable especially nowadays with high gas prices but there's many ways to reduce so here we go let's review we're looking at organizing her debt figure out how which one you going to pay off first use that snowball method find ways to reduce your expenses and continue to operate the way you are now so you're not really seeing that a let-down and what you're doing but you're still eating you're still doing all the stuff you need crate High site in Sao Paulo sings it'll make a big difference you can probably walk into 2022 with a significantly less if you fall that and stick with it your it in your out to the point where you have no.<br> which is wonderful because that all you going to be doing is earning interest as opposed to paint an interest now that's the end of this segment you want to stick with the every bubble you know when ice has been going up things are getting more expensive and sooner or later they're going to have to go down and we're going to have some bubble so now we have Mom Doctor Murray sabrin who's the author of navigate the boom-and-bust cycle you're going to want to stick around for this one so stick with us we'll be right back with some more twisty more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the in an ounce of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> it's the saving with Steve show now here's your host Steve Sexton they welcome back to the saving was Steve show where we talked about the ins-and-outs of money now we have a wonderful guest with us today early in the intro of the show we talked about Bubbles and we talked about how interest rates have gone up<br> stock prices have gone up housing prices have gone up car prices everything's pretty much gone up at the feds you know what they tried to have this economically policy that would enable you know those things to relax themselves make it easier but that just isn't the case you know what we could be looking at the bubbles on multiple levels and this is one of the reasons why we have Marie sabrin he's a retired doctor or professor of finance and he's written this wonderful book called navigate in the boom-bust cycle its design for entrepreneurs does a survival guide but you know what whether you're managing the church funds your family budget small business large Business Media business you're an executive business you want to stick around for this so with that I want to welcome you to the show Mary welcome to the show thanks for being with this name well thank you Steve I appreciate the opportunity to discuss the inspection report an issue with you and the all the listeners out there this is wonderful<br> all right now if people invest in the stock market their kind of loving it there seeing their stock go up and all that kind of stuff if they just sold a house they're loving it cuz they're still in a real high price increased cost of food and many many many many other things and it is crazy because you know what I like watches and even iron watches they're seeing a 30 and 40 per cent increase in The Valleys of them and my friends that have these watches are like I can't believe this I'm selling some excuse and you know we got all those happening but sooner or later it it's got to come to an end and you know what I was wondering if you can kind of give up you know what to hate this is where we're at right now type of understanding for our listeners and this is what we're likely to see some time in the future and then you know that they kind of that boom-and-bust cycle that<br> if people are the traits at work that go along with that you sure there's so much to unpack here Steve because this is one of the most important phenomenon facing the country named Lee why do we have a cycles and what we can do what can we do to protect ourselves especially when the bus The Cure's like we saw there in the housing bust the people were around that time they saw a real estate that decimated in all the Allied Industries related to real estate guy got the estimated and that it was a terrible time for a lot of people in the US economy so these boom-bust Cycles are not acts of nature that I'd ask cigar their acts of the Federal Reserve in the United States cuz they have the power to create money<br> and when you have that power to create money and you have the Audi Audiology in economics professional who say that you need a steady increase in the money supply in order to keep the economy or attainable at submit that's probably the greatest Miss we have in our society that you need more more increases the money supply to get the economy going what an economy needs Steve is very simple savings savings drives investment investment drives the output of goods and services and that eventually flows of consumer so as I like to tell my students when I was teaching in order for me as a profession to be a consumer I first have to be a producer and what do I produce teaching Corporate Finance Financial history investment so I got a paycheck for medical college right because I produce something Educational Services same thing with everyone else whether there a check out the cashier or their of the CEO of a cup<br> do you have to be employed you have to produce something of value that show was supposed to pay you for it then you can be your consumer you cannot be consumer before you were producer and so that's I think one of the most important lessons in a G that I learned a long time ago and I've carried that idea with me and then when you receive these psychos occurring people are scratching their heads they why do we have your cycle is a greedy businessmen is a greedy unions that are pushing up wages is a greedy this. Nothing know every common denominator of every boom-bust cycle is that a Central Bank in United States the FED Reserve is crazy money out of thin air that depressing interest rates with their monetary policy and what's it called stimulate the economy and all that does is create an unsustainable boom like we've seen since the Federal Reserve was created for the past hundred and seven eight years in 1913 so this is nothing new as to what I call you one of my chapters wash rinse and repeat you create a boom they cut back on the money supply<br> the unsustainable projects are revealed for what they were wasteful you get a recession depression and then they started fighting again in order to stimulate the economy to get us into the next. Repeat it for the hundred plus years and before the Federal Reserve has created the banks them spells were creating Boom by printing up banknotes and that was flowing into the economy giving us the panic of 1819 and all these other Panic set up until the Panic of 1907 do the Federal Reserve created we no longer have Paddock we have depression than that word got tossed out and now we have only restrictions for Great Recession wow so basically what you're saying is this is been going on for more than a hundred years so it's not something that people should think there's new so when politicians say it's that person or that person that person it's just a well I actually understand I understand the rise in the run that goes along with all that but for most people they are just used to go into work and they don't realize<br> they're part of the rise or the run and you know what I think it's him it's important for people to understand you know what was happening is you're just part of the cycle well that's it I mean everyone had played a role in the economy again with your CEO of the the owner of a mom-and-pop shop on Main Street whether you're a blue collar worker and white-collar worker or whatever you are affected by the business cycle is no question about it and sometimes it's it's widespread like the Great Recession sometimes it's sort of confined like bubble bursting that was confined to the base to the high-tech sector with a mild recession like 69 70 1991 and the question is when will the psycho when will the Up Cycle end and I in the Buckeye discuss what what the next wish I had and the inverted yield curve is probably the best indicator when the short-term ice cube of long-term right it means there's a flight to liquidity and the people watch<br> to get the money in the Federal Reserve has Ronald back on its money inflating and that keep connect causes short-term interest rates to rise and when that happens that's when the economy starts to roll over six months or a year down the road so right now the yield curve is getting close to inverting I think it could invert in 2022 because it's a Federal Reserve gets really concerned about accelerating inflation that we saw inflation increase at the highest level in 40 years and they really cut back like both of them back in 1979 and 1981 he was appointed chairman of the Federal Reserve with the Mandate against inflation under control interest rates at 21.2% I don't think that it happened this psycho but you just never know I mean I hope so it's in 1977 the rate of inflation would go to double digits and we have 22% interest rates so again in 2021 most Economist a few all Economist got it<br> in 2021 and we ended the year with what the 6% inflation so again I place you can creep up very quickly on people and the economy and the Federal Reserve mandate is to have a price if they consider price ability to per cent per annum which I never understood where that number comes from because price stability is it is also emit in a market economy Steve what happens prices slowly fall as productivity increases and Innovation takes place as we've seen in high-definition television and other high-tech items over the years it's what the FED is doing infection is that it's blocking the fruits of a free market economy from spreading out to the from the entrepreneur to the public so everyone's living steady as we go up and said the Federal Reserve<br> oh wow okay now when the questions you know what we're going to have to take a quick break and we're going to be right back everybody stick with this we got more more Murray Abram and you know what we re back on saving with Steve more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending on your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton the ins-and-outs of money we're definitely talk about the ins-and-outs of money with Marie Sheeran you know what we've been talking about the boom-and-bust cycle that she's got a wonderful book you can get on Amazon called navigating the boom-bust cycle for survival guide but you know what it's a lot more than just that we've been talking about the ins-and-outs of your the common traits of the Boom in the bus what are things I want to ask you bring is what industries did you see you know what we realize it's this near the feds cycle are with the way they're handling money but what industries do you actually see having you know the highest likelihood of a bubble bursting<br> well if you look at the data and the Federal Reserve website that the st. Louis fat Fred Fred the database has all the day that you needed a link to that in my book and I and I pull out some of the charts to show that it's Motor Vehicle sales are very sensitive to interest rates of interest rates go up Motor Vehicle sales at 10 to go. Obviously housing starts so that the housing bubble in bubble interested or not because the housing bubble really took place over 15 years it was a huge upcycled since the mid-90s until the housing market broken 2007/2008 that I was a long housing bubble so you have construction also a commodity prices are Lumber copper copper considered doctor copper because it's a pretty good indicator of what the state of the economy because copper such a great such an important input into the into the production process the manufacturing process<br> do you have unemployment is another great indicator to look at the data when the unemployment rates are bottoms out and goes sideways that means employers and not not hiring more people and that means that the Labour Market is saturated with workers and that as that labor market starts to creep up indicates that companies are laying off people because their cells are soft and they want to reduce input cost labor is an easy input costs versus variable costs that you can get rid of pretty quickly so you have that indicator so you have interest rates do you have a money supply numbers at the money supply growth is really slowing down like it wasn't 2008 that is a precursor to a stock market decline and the economy decline so you have interest rates money supply unemployment data housing starts a housing sales<br> existing-home sales commodity prices and there's a lot of different industries that could experience this little little bubble bursting you know what I can see I think everybody can see housing prices cuz you got interest rates that are so Darlow probably lower than they've been in Sixty years or more and you know what and the FED starts increasing by a quarter in another quarter in another quarter like they pretty much plan to do next year that's going to push people out of that market which is going to create an issue which in a lower prices and then you're right you know what day you can get 0% financing on a car but that one that starts going back up to 23 and four people are going to think twice about her again and that is going to have that trickle down effect when it comes to people being employed cuz you know I quite frankly employers aren't going to need employees and in fact many have utilized electronics are artificial intelligence to replace people<br> wait we can see there's a lot of things are coming down just pure logic now you talk about policy makers making the same poor decision you know what help people understand what that means I get it if they make the same poor financial decisions they're going to have us going to create further problems in the economy will amplify the Asian economies could you help people understand that yeah I mean if you look at the history of Economics thought we had this Great Depression in the 1930s and basically President Hoover did before John Maynard Keynes 1936 book on the general theory he thought that the way to get the economy moving again as the stock market crashed in October 29th and the economy started imploding he's at the best way to get the economy moving is to keep wages up to keep for the federal government to spend any race taxes he did<br> wrong possibly in order to get the economy moving again what should have happened is the, should have adjusted to the reality of the bubble bursting in the stock market the real estate market in other markets in the 1920s and just allow the natural course of adjustment they placed so by the time he left Office Unemployment was 25% for the whole country it was a disaster attacks has went up employer's business people didn't know what positive coming down and when Ser got elected in the last like he basically pinion<br> who was policies so instead of having a recession depression over in the year two or three it lasted a full decade this is really remarkable value of a kind of policy and yet people consider ft are the savior of the US economy that's that's probably the greatest Smith in American presidential history that the FDR save the economy did no such thing what happened was of course the World War 2 began in the 1939 US enter the 9041 the unemployed men went into the service and you and we had a war economy and you got rid of the unemployment problem but that was not a solution to the problem that was facing the country you needed a more what hands-off policy a laissez-faire policy if you will instead the policymakers were now have their Bible John Maynard Keynes is general theory that said to come and got to spend when you have a reception and when the economy gets better the government to Esther from surpluses and Federal Reserve has to keep money<br> well we tried that accept the government never run Surplus is a very rarely run circuses and so you've got money flowing into the economy from government spending from cheap money the low interest rates and now you got what what people call me everything bubble everything's as late as you go to the store prices are up 5 10% from last year of gasoline will you know is up used car prices through the roof housing prices in some countries are 30 40% one year that's clearly unsustainable to the questions when will the bubble burst and the book gives you some guidelines as to when I think it's going to happen I recently wrote an article that was published by Fortune Magazine online and I said which I figure segment once the FED realize that inflation is going to be real big problem and they start raising interest rates we could see the recession started in 2023 but I think is probably happened no later than 2024<br> to whether a bust this is I think The $64,000 Question was most businesses that cut short when in the bus the cars and they see that sells the client and they don't have to lay off people well during the boom what you should be doing is preparing for a bus cuz we know it's coming so you should be racing keg putting the reserves aside whether you're an individual small business owner or you're at a larger company or even the big conglomerate should be raising cash listen Warren Buffett the head of Berkshire Hathaway A 500 billion dollar company he has a hundred forty billion thousand cash on the balance sheet of Berkshire Hathaway so what is he know that a lot of people don't know why is he racing much cash he doesn't find much value to buy either companies are stocked with a horde of cash Eddie that's generated from all the companies that the Berkshire owns or he's waiting for the next bus to car so you can buy bassett's on the cheap twenty Thirty forty cents on the dollar which is very successfully during the housing bubble and he bought a lot of bank stock<br> other stocks that with the Press because of the implosion of the housing market and the Berkshire has done exceedingly well since then so again raising cash during the boom sounds counterintuitive because really you want to be the acting so to speak you really want to have your resources in in the generating sales that will give you a good profit margin but the turning point is what if you are expanding your business and the economy rolls over and you got all this excess capacity and and sales dry up now you have a large overhead lot 6 cost and your you become in deep trouble and so this is a delicate balancing act that entrepreneurs have to do during the course of a cycle is don't over expand when it looks like the economy is going to roll over now obviously you want to expand your business because there's a great demand for your product that's why you want to expand it becomes like I said.<br> a very important thing to navigate and every business owner every business decision maker really nice to be attuned to the General market conditions in their area in their industry in their sector and and see what sales are going cuz they know before the economist at the Federal Reserve what was happening at the micro-level in in business for that data is collected by the Commerce Department of the Bureau of Labor Statistics reported every month the unemployment data housing data until income data so again entrepreneurs have to be attuned to both the macro and micro but that's where the decision making has to be made lets you know what that's a wonderful say that whether it's a business or you're just managing the finances is not the time to get over extended because you never know when you're the person is going to be the odd person out of the company work for or the fix your business and you don't have the cash flow or the cash you need to survive it so that's a wonderful lesson Marie our time is up I want to thank you for<br> same here I loved our conversation because it made me think and maybe go okay I need to start doing some things here or me doing more of those things cuz I understand the cycle you're talking about and I also understand the business owner small business hours that the people are driving around listening to us going okay things are going really really really well cuz you really think about 2007-8 I mean people thought I think we saw an eight or nine hundred Point Drive up in those in the S&P 500 between May and September and then it started itching back and people said I would don't worry it'll keep going and going and all the sudden bam you know the market went down and people are looking at Green and I talk to you whenever people in the tech Market that at a year or two out they said you know what I wouldn't be working if I if I had sold my stock when I was told to back before 2000<br> today that green really gets people so again I want to thank you for being here you know I know everybody can get your book navigate the boom-and-bust cycle an entrepreneur survival guide at Amazon it's five star rated which is wonderful is there other other people if you can people get your book at Barnes & Noble or other locations that are that happen if they go to my blog Maurice does a flyer that links to the Publisher's website and they're offering a 20% discount with the code. Blum twenty and the publisher is offering this all the time that's not just a One-Shot deal of a of a discount but it's an ongoing discount to make sure the book is out there so people can have the tools in order to navigate the boom-bust cycle so if you go to Maurice you can see the flyer there click it on and I'll take you right to the Publisher's website apply to code and you'll get a nice discount from the publisher so help us out with that code again<br> boom 20 Sun Sunfire it's okay I just want to make sure everybody who or want to understand what's going on and what moves to make that they can go to the Publisher's website and get that code boom 20 to get a 20% discount a book on navigating the boom-and-bust cycle an entrepreneur entrepreneur Survival Guide Stoke Moran again I want to thank you for joining us stay stay stay healthy out there in Florida I know you want to complain about that bad weather but hey yeah I have a friend that lives there and I just said hey stop bitching and complaining cuz yeah I understand your being here stay safe and healthy okay Marie thank you you receive and happy New Year to everyone who's listening and let's make it a great 2022 sounds good everybody<br> the boom-and-bust cycle. Speaker is survival guide you can get an Amazon you can also go to his Publishers and get that wonderful code to get 20% off you know what I want to thank you for joining us today will look forward to seeing you next week right here on saving and Steve again stay safe stay healthy we'll see you next time bye bye thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>