Speaker 1: Welcome to another episode of the Chicks on the Right podcast,
Speaker 1: where we host our friend and sponsor of the show,
Speaker 1: Zach Abraham from Bulwart Capital Management. And there is a
Speaker 1: very promising report out of Bank of America. They've done
Speaker 1: this study. I don't know whether to believe it or not,
Speaker 1: because to me it seems kind of far fetched.
Speaker 2: You do believe it.
Speaker 3: I believe every bit of it.
Speaker 2: Yes, Okay, Well.
Speaker 1: The study finds that gen Z is apparently becoming less
Speaker 1: dependent on family for financial help. And I it seemed
Speaker 1: like the trends were going in the opposite direction that
Speaker 1: like you constantly heard stories about, you know, kids never
Speaker 1: leaving home, moving into the basement, et cetera, et cetera.
Speaker 1: But it sounds like even though they rely, they're going
Speaker 1: paycheck to paycheck right now, they're living paycheck to paycheck.
Speaker 1: They are relying less on family and doing smart things
Speaker 1: like cutting back on eating out, on doing all this
Speaker 1: social stuff that costs a lot of money. And so
Speaker 1: I just I'm curious to know from you, Daisy, why
Speaker 1: you were like, oh, yeah, this makes total sense for me.
Speaker 3: I'm like, really, well, two reasons. One, I have a
Speaker 3: kid who doesn't go party or do anything like that.
Speaker 3: She's literally like a sixty three year old and the
Speaker 3: sixty year old body, So I feel like she's already
Speaker 3: just geared to save money. She's a hoarder when it
Speaker 3: comes to money. But my second hypothesis is that gen
Speaker 3: Zers were raised primarily by gen xers, and so I
Speaker 3: feel like gen xers are like we were, you know,
Speaker 3: lashky kids raised on hose water and neglect, and so
Speaker 3: we are more of like a you got to take
Speaker 3: care of yourself, you got to get over it, that
Speaker 3: kind of thing, Whereas I think Millennials were raised primarily
Speaker 3: by boomers, which is just a little it's just a
Speaker 3: different way of parenting. I think not everybody, and it's
Speaker 3: not a blanket statement, but I think that lends itself
Speaker 3: to gen Zers being like, Okay, we've been taught that
Speaker 3: we've got to deal with our crap and do it quickly.
Speaker 3: And that bode's true for my kid, at least, I
Speaker 3: feel like she's gonna be okay, and she's gonna say
Speaker 3: it because you are on your own, sweetheart bunch you
Speaker 3: get out of college.
Speaker 4: But yeah, yeah, yeah, good good luck, right, get out there,
Speaker 4: get out there and make some of yourself. No, you look,
Speaker 4: it's consistent with what I've seen, and I've actually sat
Speaker 4: there and said that it's one of the things that
Speaker 4: really gives me hope going.
Speaker 2: Forward because there is a different attitude among gen Z.
Speaker 4: There's a there's a hustle there that has kind of
Speaker 4: caught me off guard. With a lot of gen Z
Speaker 4: kids that I totally there is less of an expectation
Speaker 4: to get something.
Speaker 2: I've seen it with a lot of my daughter's friends.
Speaker 4: Like the percentage of these kids that are working and
Speaker 4: working significant hours and making some money is much higher
Speaker 4: from my perspective, much more than what I've seen out
Speaker 4: of out of millennials.
Speaker 2: And I think another thing happened.
Speaker 4: I was having this conversation the other day because when
Speaker 4: I grew up, I was at that at the very
Speaker 4: very beginning of this whole it doesn't matter if you
Speaker 4: win or lose, right, It was like it was the
Speaker 4: very beginning of like this, for lack of a better term,
Speaker 4: pardon my language, with like this candy ass approach to raisings,
Speaker 4: you know what I mean, everybody's a winner, and everybody
Speaker 4: was yeah, yeah, be gentle, you know so yeah, And
Speaker 4: I didn't take too kindly to that as a kid, right,
Speaker 4: I remember getting all ticked off, and I remember looking
Speaker 4: at the umpire.
Speaker 2: I was like, I was.
Speaker 4: I think it was like I was in kindergarten, first grade,
Speaker 4: and I remember looking at the empire and going, what's
Speaker 4: the score?
Speaker 2: And he's like, well, we don't keep scoring, and I
Speaker 2: was just like what. I was horrified?
Speaker 4: Right, So I started going back in the dugout and
Speaker 4: keeping score my t ball games, right, and I tell
Speaker 4: the guys were down two runs. No, no, it doesn't matter,
Speaker 4: you know, And I was like, yes, it does, Yes,
Speaker 4: it does.
Speaker 2: I didn't come here to lose power. So but but
Speaker 2: you then you saw that attitude I was out of.
Speaker 2: I was at the tail, you know, the very beginning
Speaker 2: of that.
Speaker 4: And then I think that kind of characterized the millennials
Speaker 4: by and large.
Speaker 2: Right, this this powder puff existence.
Speaker 4: And then like you said, I think the gen xers
Speaker 4: became the parents and it was kind of like this
Speaker 4: disgust with the way you know, they had my experience.
Speaker 4: They kind of saw it coming, you know, and yet
Speaker 4: I experienced that. But I still drank water out of
Speaker 4: hose is I had a rule growing up in summer?
Speaker 4: Did I well, did I reinstitute with my kids, which is, hey,
Speaker 4: if it is not raining and it is the summer,
Speaker 4: if you are inside, you're doing jobs right that period.
Speaker 4: Other than that, you're outside and you can play video
Speaker 4: games after the sun goes down, right, Like, that's you're
Speaker 4: going to be outside.
Speaker 2: And that's how we grew up.
Speaker 4: So we grew up the same way, and so I
Speaker 4: think that I think that the average gen X are
Speaker 4: like me, is probably more turned off by that stuff
Speaker 4: than than the average boomer was. And I think you
Speaker 4: see it reflecting the way we raise our kids.
Speaker 3: I don't like did like they don't. I don't think
Speaker 3: they date as much. I don't think they do a
Speaker 3: lot of true things that are risky, like we you
Speaker 3: know what I mean. It's just a lot different. But
Speaker 3: if you were going to give advice to a gen
Speaker 3: zer on what their priority should be for saving, like
Speaker 3: say there's just an eighteen year old, it's like that
Speaker 3: comes to you and says, hey, Zach, I am saving
Speaker 3: I've got four thousand dollars in savings. You know what
Speaker 3: I mean? What should I be saving for?
Speaker 2: Like?
Speaker 3: Priority wise? What do you think? What would you say
Speaker 3: to them?
Speaker 4: Well, I mean, you know the clear and obvious one
Speaker 4: is a home, right, Like, that's that's kind of the
Speaker 4: biggest one. But I was having this conversation with a
Speaker 4: cousin of mine just this last weekend where I said, look,
Speaker 4: it doesn't even matter what you're just stack cash, right,
Speaker 4: just get out ahead of things. Yeah, Like, you know,
Speaker 4: people have these financial goals, and I wish people understood
Speaker 4: how valuable just not having debt is, right, like, in
Speaker 4: terms of lifestyle, and I'm not talking about your mortgage.
Speaker 4: It is a debt works a little bit differently, but
Speaker 4: I'm just talking.
Speaker 2: You know, we live in this.
Speaker 4: Age where everybody's focused on, you know, getting the thing
Speaker 4: or buying the thing, and I always look at him
Speaker 4: and go, have you ever stopped to ask if having
Speaker 4: the thing will make you happier than not having the
Speaker 4: debt on the thing?
Speaker 2: Right?
Speaker 4: Right? Because I've had both, and I can tell you
Speaker 4: right now I would much rather not have the thing
Speaker 4: and not have the debt period, right Because even when
Speaker 4: things don't go well or you take a hit financially,
Speaker 4: when you don't have debt, like I'll just tell you,
Speaker 4: as a business owner, it's the way I structure my life.
Speaker 2: I have some debt very little.
Speaker 4: I've got debt on my house, but even that is
Speaker 4: enough to where I mean, this is kind of a
Speaker 4: dark way to look at the world. But as a
Speaker 4: business owner doing what I do, I kind of feel
Speaker 4: like I have to, which is I only carry enough
Speaker 4: debt on my house to where I know I could
Speaker 4: fire or sell it at well below market value and
Speaker 4: walk with enough money to pay cash for another typical
Speaker 4: family home. Ye, so don't. I wouldn't keep the home
Speaker 4: that I have. It would be too much. I'd need
Speaker 4: to downsize. But just knowing that no matter what happens,
Speaker 4: I can walk with net cash and no debts.
Speaker 2: Like people are like, you.
Speaker 4: Have to start over. Well, starting over with no debt
Speaker 4: ain't that hard, right, And.
Speaker 3: A lot of these kids, a lot of them aren't
Speaker 3: going to I mean not a lot, but some of
Speaker 3: them are deciding, you know what, screw college and going
Speaker 3: into debt. I'm going to become a welder. I'm going
Speaker 3: to do the trades. I mean, you're seeing a resurgence
Speaker 3: and that stuff too, which.
Speaker 2: Thank god, because we get it right. I absolutely appreciate that.
Speaker 3: And I think that these kids they get it because
Speaker 3: they're like, I'm not going to go and get a
Speaker 3: degree in gender studies and have you know, one hundred
Speaker 3: and fifty thousand dollars with a debt when I can
Speaker 3: just go become a welder. And not saying that that
Speaker 3: person would probably be doing that, but you see what
Speaker 3: I'm saying. It's like it just get out and don't
Speaker 3: have any debt and live simply. That's what we try
Speaker 3: to teach our kids too, is just live as simply
Speaker 3: as you can because it's just stuff, you know what
Speaker 3: I mean. You don't want to buy it, but just stuff,
Speaker 3: and then it have no debt. If you can have
Speaker 3: no debt, you are ahead of the game. You're a
Speaker 3: head of so many of your peers and other people.
Speaker 2: A little anecdotal story.
Speaker 4: I'll tell about that to the young people out there,
Speaker 4: and I just I can't emphasize this enough.
Speaker 2: It's very interesting.
Speaker 4: So I'm a golf I'm a golf fanatic, and we
Speaker 4: uh in twenty ten, my wife and I bought a
Speaker 4: home inside of a gated country club community that was
Speaker 4: it was really affordable, and they had this really great
Speaker 4: club that was it's a private club, but not like
Speaker 4: two like, wasn't crazy expensive, didn't I didn't even have
Speaker 4: to pay an upfront deal, right Like it was just
Speaker 4: you pay a monthly fee and you go there and
Speaker 4: play golf all that kind of stuff. Well, while we
Speaker 4: were building our business, I was driving I've told the
Speaker 4: story I think on here before.
Speaker 2: I was putting forty forty thousand.
Speaker 4: Miles a year on my car, driving up down I five,
Speaker 4: bringing in new clients. And I was doing it in
Speaker 4: a two thousand and one Ford focused hatchback right that
Speaker 4: didn't have air conditioning. And I think what it was
Speaker 4: all said and done, I had two hundred and forty
Speaker 4: thousand miles on the thing. So literally I'd go to
Speaker 4: client meetings and in the summer, I'd have to hang
Speaker 4: my dress shirt on the passenger side seat because if
Speaker 4: I didn't, by the time I got there, it'd be
Speaker 4: soaked with sweat, right right, questioning its summer, right, And
Speaker 4: because of that, a lot of people in that club
Speaker 4: thought that we were broke, like that we were poor,
Speaker 4: and we were kind of like looked down on.
Speaker 2: Right. Well, now our firm has grown to a point
Speaker 2: where everybody in.
Speaker 4: Our local community, you know, you know, knows that we're
Speaker 4: probably not broke, right, they know that we made you know,
Speaker 4: manage a lot of money.
Speaker 2: I have a lot of people working for us, all
Speaker 2: that kind of stuff.
Speaker 4: And it was so funny because going back to an
Speaker 4: event we had at the club, I had all these
Speaker 4: guys who I didn't really like, now all of a
Speaker 4: sudden kiss in my backsideeah yep. And and and what
Speaker 4: what it iced in my mind is they didn't realize
Speaker 4: that when I was driving the fore focus, it had
Speaker 4: nothing to do with what I could afford. I was
Speaker 4: making more money than most of them back then, right,
Speaker 4: but it it I didn't care.
Speaker 2: Right.
Speaker 4: It's being mission focused. It's being going back to like purpose. Right,
Speaker 4: what is your birth being mission focused? And my dad
Speaker 4: used to have as saying, which is warrior's travel light right,
Speaker 4: meaning if you want to go accomplish something rate in
Speaker 4: your life, not having debt is a huge help.
Speaker 2: The other thing that's helpful.
Speaker 4: Is learning how to shut off caring about what other
Speaker 4: people think totally. Yes, yeah, it is a freaking waste
Speaker 4: of time, right. And money they will, yeah, they'll criticize
Speaker 4: your car, but they won't help you make the payment totally.
Speaker 4: And if you want to be wealthy, or more importantly,
Speaker 4: if you want to be financially independent.
Speaker 2: The number one thing.
Speaker 4: I would urge you to do now is turn off
Speaker 4: your give a damn button.
Speaker 2: Don't care what other people think, Dave.
Speaker 4: Ramsey says, all the time, you're running around in financial
Speaker 4: jeopardy trying to impress people that don't like you anyway, right,
Speaker 4: you know, don't quit caring. They don't pay your bills.
Speaker 4: They it doesn't matter to them. And if they care
Speaker 4: what kind of car you drive, you shouldn't care about
Speaker 4: them exactly.
Speaker 1: That's not the kind of people you need to be,
Speaker 1: no involving in your life, totally.
Speaker 3: No debt, No debt is a good one, and not
Speaker 3: given a crap. I love these two pieces of advice.
Speaker 3: Everybody should give their gen z ors that. And I
Speaker 3: feel like they are some of them already know it.
Speaker 1: Yeah, yeah, yeah, I mean they're getting it clearly. That's
Speaker 1: why that report was such an eye opener.
Speaker 4: And they're taking advantage of a situation right now, which
Speaker 4: is so many of these places now, you know, and
Speaker 4: I know it varies from state to state, but the
Speaker 4: average wage these kids can go out and earn right
Speaker 4: now is way higher than you could even five years ago. Yeah, right,
Speaker 4: And so I'm looking at these kids going, Man, if
Speaker 4: you work twenty hours a week, which isn't that much, right,
Speaker 4: If you were twenty hours a week, you could leave
Speaker 4: for college with fifteen to twenty grand safe.
Speaker 2: Totally. Yeah, you know what I mean, totally.
Speaker 4: And go do it like, go do it like exactly
Speaker 4: what are you going to be doing in those other
Speaker 4: twenty hours of the week.
Speaker 2: Yeah?
Speaker 3: And video games own yeah, exactly in trouble agree totally.
Speaker 4: I bus tables during like high school, Like you know,
Speaker 4: maybe maybe a couple times on a Friday night you
Speaker 4: showed up an hour and a half late to the function,
Speaker 4: but nobody cared.
Speaker 2: Right, It's no big deal, right. We totally exactly stack
Speaker 2: cash and be financially free. Man, It's the best thing
Speaker 2: in the world.
Speaker 3: I love it.
Speaker 1: Great advice, love it, great advice which you always give,
Speaker 1: which is why we always tell people to call you
Speaker 1: and where can they find you online?
Speaker 2: Yeah?
Speaker 4: So go to our daily podcast on YouTube and any
Speaker 4: podcast site.
Speaker 2: Know Your Risk podcast cover.
Speaker 4: Everything that goes on in the world of finance and
Speaker 4: economics every single day, and then for our services find
Speaker 4: more about what we do. Go to Boordcapitalmanagement dot com.
Speaker 4: Hard to find awesome thank you Zach, Thank you ladies.
Speaker 4: Fun as always.
Speaker 2: Investment advisory services offered through Trek Financial loc and SEC
Speaker 2: Registered Investment Advisor.
Speaker 4: The opinions expressed in this programmer for general informational purposes
Speaker 4: only and are not intended to provide specific advice or
Speaker 4: recommendations for any individual or on any specific security. Any
Speaker 4: references to performance of security so it thought to be
Speaker 4: materially accurate and actual performance may different.
Speaker 2: Investments involved risk and are not guaranteed. Performance doesn't guarantee
Speaker 2: future results. Track twenty four three zero eight