OUR HOSTS: 

Corinne Foxx - @corinnefoxx

Natalie McMillan - @nataliemcm and @shopnataliemcmillan 

What we're drinking: Kaiken Indómito Malbec 

TOPIC: 

It seems like every other news headline is about inflation, supply chain, and interest rates, but what do those things actually mean? We break it all down in today’s episode and explain how you can empower yourself financially during these uncertain times. Inflation is actually a very normal part of a healthy economy. We dive into what the Federal Reserve (aka the Fed) is, systems that are in place to prevent hyperinflation, and Warren Buffet’s top tips for earning money in a down economy. 

In this episode, we discuss:

• Real world examples that demonstrate how we arrived to today’s economic situation 
• The core responsibilities of the Fed 
• How lower interest rates help stimulate the economy
• Why you shouldn’t panic and hide all your money under your mattress (despite what your grandma told you) 
• How to beat inflation by investing in good businesses with low capital needs

RESOURCES MENTIONED: 

Episode 7. Saving vs. Investing: Which One is Right for You?

Episode 22. Investing 101: A Beginner's Guide to Earning $tacks on $tacks   

END OF THE SHOW: 

Corinne and Natalie introduce Hottie of the Week: Austin Butler

WINE RATING:

Kaiken Indómito Malbec  = 7.5 / Austin 

WRAP UP:

To wrap up the episode, Corinne and Natalie play Overrated/Underrated. Corinne shares her hot take on Mexican food staples, and Nat has some strong opinions on who should be considered today’s biggest and best rapper. 

We have a newsletter for our Am I community. You can sign up for the newsletter on our website: amidoingthisrightpod.com

You can email us for episode ideas or Random Advice: amidoingthisrightpod@gmail.com

Follow us on Instagram: @amidoingthisrightpod 

Don't forget to rate and review the podcast! It really helps us grow!

[00:00:05] Natalie McMillan: And I'm Natalie McMillan.

[00:00:17] Natalie McMillan: And each week we cover a new topic and we drink a new bottle of wine.

[00:00:29] Natalie McMillan: Yes. And one that we need wine for.

[00:00:44] Natalie McMillan: extremity. I feel like I didn't at all.

Right. But now I do right. Or I feel empowered. And if the girlies are listening, you guys, you're not allowed to turn

[00:01:05] Natalie McMillan: fed.

Why do you, oh, well the fed raised the fifth. Like who the

[00:01:17] Natalie McMillan: That's what I, I just thought the feds it's like, yeah, the, the fed. They're gonna kick your door

Yeah, the fed. Yeah. No, this is a different, it's a father thing situation and we'll get into it, you guys, but at the end of the episode, we're gonna be playing overrated, underrated. So stay tuned for that. And you guys, you can always email us with episode ideas. If you have something that you're like, I don't under, like, this was, we were like, we don't know.

What this really is. Right? So we'll research it for you. Yes. And you can email us that. Am I doing this right? Pod gmail.com. We are accepting epi. The line's open.

[00:01:54] Corinne Foxx: but not, um, what are we drinking? All right. We need alcohol and we need

[00:01:59] Corinne Foxx: I love the label. Oh, it's a how it's, it's hard to explain

It there's a goose on it. There's a, a globe it's called KK, INO Mito. It is a Malbec from Mendoza, Argentina. And, um, I feel like we've had a few, a few mal, but they're hit and miss, I feel. So I'm gonna just pull a little, a little look, look, oh my gosh. Actually shout out to one of our listeners Holly from the UK, because she was, um, she suggested some drinks we should do.

And then one of them was in a can and she was like, the ASMR on the can would

[00:02:47] Natalie McMillan: I know. So also just shout. We love the Ammi we love when you guys talk to us. I know. And she's a

Oh God. Yes. I forgot about this. So yesterday you guys, I went to the eye doctor because I. I was my eye. There was an issue with my eye, Dr. John coops. No, I to go to ophthalmologist. Oh

[00:03:21] Corinne Foxx: And first of all, his voice sounded like John ham. I mean, to a T I said, sir, immediately when walked to the room, I said, has anyone ever told you you're.

Your voice sounds exactly like John ham. Like if you heard him in the other room, cuz he has that very particular. Yes. You would be like, John ham is next door. And he was like, no one's ever said that to me. I was like how he should be. I almost told the nurses like, come on guys. Well, this is dad. Well,

Woody toys. Oh,

I didn't bring sunglasses. I'd come out the world. I it's like P like, do they? You, yeah, they gave it to me, but it's like a piece of paper, right?

[00:04:18] Corinne Foxx: looks like film. Yeah. Yes. The sunglasses then I'm like, I have to drive to an audition. I'm blind, you guys. And I have to type in the directions.

I can't read my phone. So I just muscle memory, the name of it. I'm like, I hope, and I clicked the first thing that popped up and I was like, I hope I'm going there. Luckily I can see far away. Yes. So it was fine, but I had no idea where I was going. I was laughing the whole time. I'm like, this is the craziest thing.

It's insane. Then after all this happened, I got home and I thought I've had a rough morning. I'm gonna make heat up some old lasagna. Oh, no heated. It. Went to the bathroom, came back. Archie had the whole Las, I knew you were gonna say it. He's never done that. He does not like plate surf or anything. And he, and I just said, I'm tapping out.

I'm gonna tap out right now for two days. Was it up on the counter? It was, it, it is my fault. I left it on the dining table and I heated it up. I was so excited and I was, I'm just gonna run to the bathroom, like, like. Came back gone. He ate

[00:05:20] Corinne Foxx: seconds gone. It was the last piece of lasagna. Oh gosh.

And I just thought today's not the day. So, you know what? I woke up today on the right side of the bed. I said, this could be a great day. And I'm excited to learn about inflation.

Oh no. He

[00:05:40] Natalie McMillan: citizens arrest on you. The last piece. The last piece too. Jesus, I gluten free gluten free.

[00:05:51] Natalie McMillan: I would love it. It was so God. Oh, I girl. Okay.

[00:06:02] Natalie McMillan: why did, why did we choose

We don't really understand it. Like, like fully sort, like we know that prices are going up, but like why and how does that happen? Right. And why can't we just print more money and like fix it? So we figured it out. Mm-hmm we did the research so that you don't have to, and we're gonna break it down. Very simple for you.

Yes. Very simple. Very digestible. Yes.

[00:06:39] Corinne Foxx: Buckle up, buckle up. So why is everyone freaking out? Right. Okay,

In the case of the United States and rising inflation. Right now, it is mainly because of the pandemic. Right. So basically what happened was the pandemic hit and everyone was scared from the uncertainty of the world. So they started holding onto their money in fear of what might happen next. However, with no money circulating the economy takes a hit, right?

So what did we get? They sent out the stemies remember the stemies that we all got in the mail and they were like, Hey everybody. Can you spend a little money and then that gets the economy going again. So I'll give an example here about bikes. All right. So let's say you got your stemmy check and you were like, oh my God, I.

Can go buy that bike that I've wanted for a while now. Mm-hmm and you got to buy it and you get there and there aren't any left because everyone came and they swooped up the bike with their STMI. Right. Okay. So now the store owner's like, well, shit, I gotta, I gotta get some more bikes, but I'm gonna need to double the price on them so they don't fly out the door.

Right course mm-hmm, also capitalism supply and demand. Right. But then that happens across the board on literally every single it's not just bikes. It's not just bikes. It's food's, it's gas, it's growth. It's everything. Yes. You've probably also heard people talk about supply chain problems and the way it has added to our current state of inflation.

So to explain this, let's go back to the bike example. So the bike shop owner calls up the bike factory and is like, hello. Like I need more bike. ASAP ASAP Rocky right now. And the factory's like, Hey, everybody literally bought every single thing and it's gonna take five months to even get one bike made.

Right. And then when that comes around and they finally get all the bike supplies and everything, the cost of those supplies has now doubled mm-hmm , which passes the rise of cost to the bike shop owner, who then passes

[00:08:53] Natalie McMillan: guy that just wanted the fucking bike.

It's supply and demand. Yes. It's putting money into the economy. It's spending the money. It does feel though, like this can get cyclical and like, it makes sense that we've had inflation it's happened. Right.

But then it's like, oh fuck. Right. Great. So what is it? In terms of a definition.

Okay. Basically when a inflation occurs the dollar or, you know, whatever currency that you're using is losing value while the cost of everything increases at the same time.

Yes. Because we're growing more. Money's in the prices. Slowly going up in a manageable way when it gets crazy is when it goes above that 3.8%. Yeah.

[00:10:35] Corinne Foxx: manageable. It's no longer manageable. Right. That's when it becomes unmanageable. Mm-hmm so what, what causes it in a general sense? Yeah. So,

They're making an observation about inflation. So it's the rising cost of goods and services over time and the decrease in the purchasing power of the dollar. So it can occur in nearly any product or service need based expenses like housing, food, medical care utilities, as well as. Want based expenses like makeup, cars, jewelry, literally everything.

Okay.

[00:11:22] Natalie McMillan: so basically the fed, which put a pin in that we come up, the fed circulates too much money. So like anything else when supply becomes relatively abundant money loses its value.

[00:11:36] Natalie McMillan: about it like the BBL. right. The Kardashians. They, they got the BBLs and then everybody could get the BBLs.

So now they've reversed the BBLs. Gotcha. It's no longer a it's. No, it's not cool. It's not exclusive anymore. I see. Okay. But before we go any further. Beat boot beat. We gotta do a definition alert. Yes. So when people are discussing inflation, you're gonna hear them mention the

And if it's not the people that are like, if it's not the SWAT team, what is it?

Central banking system. So its core responsibilities include, uh, setting interest rates, managing the country's money supply and regulating financial

[00:12:35] Natalie McMillan: the, is the big daddy manager of the banks, right?

Yeah. Yeah. But what are they doing with bank of America? What the fuck. They're not managing that. They're

[00:12:46] Natalie McMillan: cannot. So how does it affect

All right. If the inflation rate is that 3% that year, then the hundred dollars you held onto is worth 3% less. Because of inflation. So it would only buy $97 worth of goods. In last year's dollars. If you put that a hundred dollars in a savings account that earns interest, you lose less purchasing power and might even gain depending on the interest rate you're earning on your savings.

So if you only earn 1%. Interest you're still losing money. If inflation is 3%, which is, this is why we always talk about, we have an episode about savings accounts. You guys, because you are being swindled, you are being swindled, period. If you're going with a big brick and mortar bank. Yeah.

Yeah.

Spend or invest your money today rather than stuff it under your mattress and watch its value diminished. So there is again like a small amount of it. Right? Good thing. Right.

We're holding onto everything. Exactly. And then that's what, that's what, uh, went wrong. But let's have some examples. Shall

I don't, I don't do people buy gallons of milk anymore. Gallons.

[00:14:59] Corinne Foxx: have a lot of kids maybe, but I feel like I just get like a carton. I just get the carton, but I guess what, we don't have children. Yeah. Okay. That that's neither here nor.

[00:15:09] Natalie McMillan: That's

Instead, this price reflects the gradual decrease in the value of money as a result of inflation. Another example is that in 1980, a movie ticket costs an average of $2 and 89 cents. Goodbye.

[00:15:42] Corinne Foxx: No. Well also in LA it's really expensive of course, because it said in 2019, the average price of a movie ticket had risen to $9 and 16 cents.

Oh, which it is not,

[00:15:57] Corinne Foxx: Yes. So, but don't just think of inflation in terms of higher prices for just one item or service. Inflation refers to a broad increases in prices across a sector or an industry like the automotive or energy business, and ultimately a country.

Entire economy. Yes. But I, I do wanna go back to this fed thing right. And understanding like what it is and how, how does, how does the fed affect inflation? Why are they in the mix?

And they set all the rules and the policies that all the other banks have to follow and they make sure that the economy's growing and doesn't go into a recession. Well, I guess they try to do that. They're also in charge of setting the interest rates and this can be the interest rate on. A home, an auto loan, et cetera.

It's like an across the board interest rate, right. They can go ahead and raise

And less houses because more and more people are taking out mortgage loans. Yep. So eventually the demand is going to get higher than the supply and that's when prices start to go up again. And that is how inflation happens, especially in the housing market. Yes. So now a house that costs a hundred thousand dollars.

Might be $150,000 or even more just because of pure demand for it. Yes. Because there's not a lot out there. Right. So a way that the fed will correct will kind of course correct. This type of inflation is by increasing interest rates. Okay. So in turn less and less. People will be able to take out loans, which means less and less money will be circulating in the economy.

And this will decrease people's purchasing power and allow the supply chain to repopulate and balance out the prices. Oh, okay. So they're kind of like the little puppet master, like okay. A little bit over here, a little over there. They're a little dance and we are really the. Puppets.

Yeah. So

[00:18:34] Natalie McMillan: it can become a destructive force in an economy. If it's allowed to get out of hand and rise dramatically, unchecked inflation can topple a country's economy like in 2018, when Venezuela's inflation rate hit over.

1000000% a month. What, isn't that fucking crazy? I

[00:19:00] Natalie McMillan: at six and we're just, are we at, I don't even know where're at freaking out. A million a month, a month, meaning their value. I mean, they had, okay. Anyways, their entire economy obviously collapsed, uh, and forced countless citizens to flee the

[00:19:20] Natalie McMillan: have to right.

Also Zimbabwe in the two thousands, they underwent serious hyperinflation, which. What that is. That's a technical term. Mm-hmm hyperinflation. That's when it just like skyrockets many economists point to the country's financing of the second Congo war by printing more money as a major cause of this. And the inflation was so bad that the currency became UN salvageable useless, and eventually the country's plan became to demonetize their currency entirely and move to foreign Fiat currency.

[00:20:08] Natalie McMillan: Right. And also, this is why, cuz I never understood why. Like, why can't we just print more money. Right. And it's like, oh, cause it makes that it makes it worse.

Yeah. Definitely putting more money actually makes it worse. Yes.

Right. And I do believe. We can course correct. We've

[00:20:46] Corinne Foxx: We love a howto. We love a howto. How do we beat? Inflation. Yeah. So if you save your money by bearing it in jars in your backyard, or like, sounds like my mom, if you're dooms, dang it, or stepping it under your bed mattress, you will lose money to inflation because the cost of living grows while the value of your money does not.

So ultimately you're not helping yourself out. And the best way to beat inflation to achieve returns, averaging more than the average inflation rate. Is to invest in a combination of stock and bond mutual funds that can return more than the average rate of inflation. And we have an episode on savings versus, um, investment accounts.

And we also have like an investing 1 0 1 account that explains compound interest and like how that is gonna help you beat inflation. And it's

[00:21:42] Corinne Foxx: super wealthy, like no, no, no, no, whatever money you were gonna step under the mattress that $20.

Yeah. Go invest it. Just invest. That part, that part. So some investment tips on beating inflation. We got from Mr. Warren buffet, which pretty good resource we we've gotta, we've gotta, he's a, yeah, he's a great resource. So one, he says investing good businesses with low capital needs. Buffet has long advocated for owning businesses that earn high returns on the capital, invested in the business during inflationary times.

Businesses with low capital needs that are able to maintain their earnings should fare better than ones that are required to invest more money at ever higher prices just to maintain their position. So things that don't take a lot to run. Okay. Uh, low overhead, low overhead, low overhead is what we say is why.

Okay. To go back to the savings accounts, the big brick and mortar. They have a lot

[00:22:36] Corinne Foxx: fund all of their,

So he once said that an unregulated toll bridge would be the ideal asset to own in an inflationary world, because you would have already built the bridge and could raise prices to. Offset inflation. He said, you build the bridge in old dollars and you don't have to keep replacing it.

I do get what he is trying to say. Right, right. Like

[00:23:25] Corinne Foxx: Can you define, can you define it? Yes. Can use it in a sentence.

It's another investment endorsed by buffet for investors who are concerned about rising inflation tips, pays investors, a fixed interest rate twice a year, but the principle amount is adjusted for inflation and measured by the consumer. Index.

[00:23:51] Natalie McMillan: too. Look into those tips. Hot tip for tips.

All right. And finally invest in yourself. So consider booking up your resume by learning a new skill through online resources or local college pursuing advanced degrees can be expensive, but they can also help grow your knowledge base and make you an indispensable employee in the future. Increasing your value to your employer and its customers will help you command your fair share of earnings over time.

So think

[00:24:35] Natalie McMillan: Invest in, you invest in you and in multiple ways it will pay off.

Yes. Literally and

[00:24:45] Natalie McMillan: be like, that was so fucking confusing. You didn't understand the single word? No, they can't. That was simple. I feel like we really, I really hope so.

You know yeah. Tips for tips, tips

[00:25:17] Corinne Foxx: that's what it is.

That's what it is. That's what its how we know the more, you know, the more you nice. Okay. Now let's circle back on this Caen mal back. Is it Caen? Kiken

[00:25:33] Corinne Foxx: okay. One, two, which we just recently changed the hobby of the week.

[00:25:40] Corinne Foxx: R newfound interest. Yes.

[00:25:47] Corinne Foxx: inflating inflating.

He's experiencing the inflation of his career. Yep. Mr. Austin Butler, Mr. Austin. But. Yeah, Mr. He's foreign. Oh my

[00:26:06] Corinne Foxx: That some of the fan videos, the compilation videos of him when he's like walking down that red carpet for Elvis, I'm like,

I'm not seen these. Oh, I will send you one. Oh, I'm going it's. I mean, it's very hot in this room, but , it could get hotter.

[00:26:26] Natalie McMillan: All right. Well, you know how I said, mal back are like a hit and miss for us.

[00:26:34] Natalie McMillan: Mm, that's interesting. Okay. I, I, I feel more of a

Okay. It's a miss. I'll give it a, let take one more step, give another step.

If I'm eating some cuz also if it's Mendoza, you know, Argentines, Argentines the people of Argentina. Mm-hmm they eat mad amounts of meat. Yeah. I

[00:27:16] Natalie McMillan: Yeah. So it's like they're, they're drinking this. With their steak mm-hmm with their legendary steak. And I'm like, if I'm eating a steak with this, that's

Okay. So seven and a half,

[00:27:30] Corinne Foxx: Austin Butler.

[00:27:40] Corinne Foxx: the part of the episode where we play a little wrap up game. And this week it's overrated. Underrated under, and I'm a little nervous about mine, cuz it is contrast. Let's hear your first. I'm nervous to say this.

Yeah. Some people did come for me.

[00:28:07] Natalie McMillan: Her mouth's open.

[00:28:30] Natalie McMillan: No, I'm very nonviolent. Okay. Um, I'm very nonviolent. I'm a nonviolent person. I'm very docile. I'm quite a docile person. I I'm so

[00:28:45] Natalie McMillan: jocking. I just don't know how you could think it's overrated.

There's there's shirts.

[00:28:56] Corinne Foxx: agree on this there's earrings do agree on this. People are like, it's like bacon, it's like bacon with yeah. And, and pizza too. People are like pizza people. Yes. Which I would say I am, but I would never wear me like, um, paraphernalia. Right. Like

Like, pizza's amazing, but it is overrated in the context of like, I'm not gonna go around with a shirt. Or with

[00:29:27] Natalie McMillan: it. So you're not gonna get tacos tonight, cuz we are going, um, on a date tonight. Well that's

No, it's not. You're gonna get a Illa. No. See, that's what I'm saying. It's not that I don't like them. Right. It's just, I think that they are over. I think they should be appropriately rated. Right. I am gonna have a taco tonight, the crispy chicken taco. I love that taco at the place we're going. Yeah, but I just don't think taco culture.

Okay. I agree with the taco culture. I think there should also be a, if there's a taco culture. also be a quesadilla culture, I think. Okay. Okay. I can.

[00:30:06] Corinne Foxx: people think of 'em as childish and they're D.

Oh, I love a case. Like, and you can put everything that's in a taco in a case.

[00:30:19] Corinne Foxx: Very, very, that's all I'm saying. You guys, it's not that I don't like them.

I just think they're not appropriately represented in culture. I

[00:30:32] Corinne Foxx: Like they identify, they identify that that's part of their personality, right? Like, yeah. I don't know. I, I dabble in that with pizza though. I dabble in that.

No, I would never. So

[00:30:53] Natalie McMillan: the house. Yeah. I mean, that's cute. Like fine. It's not like a, a, but that seems

[00:31:00] Natalie McMillan: gateway drug. Anyways. What is your overall, you know, you know, tacos are truly my favorite thing, but I, uh, but would I ever own anything that stands tacos?

No. I'm also, well, you know, my thoughts on. What there's too many fancy tacos. Oh, really? A taco can be like, well, just like the fancy Mexican restaurants. Okay. Some of them take it way over the top with their vegan crema and all of this. And I'm like, hit me with a normal ass taco with radishes, cuz that's how it should be done.

Any who, okay. What's

[00:31:33] Natalie McMillan: overrated? Underrated. Okay. So I was going to do one that is much less mild, but because you did a controversial one, I think I will do a controversial one, which also could be misunderstood. Okay. I'm gonna start with my underrated, cuz it needs less explanation. My underrated is J Cole.

Okay. Yeah. I love J Cole. J Cole is underrated. He's like extremely good. Mm-hmm .

[00:31:58] Natalie McMillan: not here's my thing. Not that he is overrate. Like, I fucking love Drake. Right. But I do think he might get more hype like this new album that came out. I'm like, this is not a good album.

You know what I mean? I, I, but we have agreed it's every other album, but I think people see him as like, he's the best rapper ever. And I'm like, I do love the man.

[00:32:36] Natalie McMillan: generation cuz I'm like, what is our generat?

Is that millennials? Cause I would be different.

[00:32:46] Natalie McMillan: would be from the 30

I can't say any I right. Drake is, but

[00:33:14] Corinne Foxx: no, that I'm saying he's underrated. He is underrated. Cause I'm Drake

I feel like he to be

Yes.

[00:33:48] Corinne Foxx: Fair enough. You are entitled to your overrated underrated

Yeah. You know, it's all

Go back and listen to those episodes. They're very informative. And they're very

[00:34:30] Corinne Foxx: you're gonna say, oh, I'm not gonna

Oh, oh, oh, oh yeah. People might come for you. Oh, I know. Yeah. Oh, I was thinking you were gonna think that I was gonna say the bomb. That I have. Oh no,

[00:34:49] Natalie McMillan: no. Will never. You need her say that? I will never, cuz I will also be, um, massacred. Yes. Any

Pod gmail.com and we'll be back next week with another episode. Love you. Love you. Bye.