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Author: Paula Pant

June 7, 2024By Paula Pant

#512: Don’t Let One Big Bill Blow Up Your Budget (Here’s How)

An anonymous caller who received a large inheritance feels paralyzed by all the investment philosophies he’s read about. How does he pick a winning strategy he can stick with?

Josh is an expectant dad looking to buy a bigger house but doesn’t know how much everything will cost. Should he save more or invest more?

Another anonymous caller worries that large expenditures like buying a new car or replacing her home’s roof will blow up her budget in retirement. How does she plan for unexpected expenses?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

Keep reading...

June 5, 2024By Paula Pant

#511: Q&A: “I’m Scared of Running Out of Money in Retirement!”

Sara is five years from retirement with a paid-off house. But she’s worried that her money will run out before she turns 80. What does she need to do now to protect her future self?

Lauren is a personal finance nerd who gets it. But one question perplexes her: When should she choose an ETF […]

Keep reading...

June 5, 2024By Paula Pant

#510: How to Master the Psychology of Persuasion, with Michael McQueen

Maybe you’re trying to convince:

– Your spouse | to embrace the FIRE movement.

– Your teenage kids | to invest some of their summer job money in stocks.

– Your neighbor | to sell you their house in a private, off-market deal.

– Your boss | to give you more vacation time.

– Your client | to pay you more.

Today’s episode is about how to change minds, build trust, navigate conversations, and influence and persuade others.

We chat with Michael McQueen, a social researcher, strategist, and the author of 10 books.

He’s spoken alongside Bill Gates, Apple co-founder Steve Woznick and Dr. John C. Maxwell, and was named Australia’s Keynote Speaker of the Year. His latest book, Mindstuck, focuses on how to be more persuasive.

Here are some of the ideas we cover:

Stubbornness: We tend to be stubborn because of our inherent desire to protect our existing beliefs and identities. This is partly due to the fact that the human mind has a tendency to make quick judgments and resist challenges.

Logical Fallacy: People often rely on confirmation bias and tribalism when evaluating information. We tend to favor information that aligns with our existing beliefs and groups we identify with.

Complexity over Extremes: When presented with opposing viewpoints, exposure to extreme viewpoints can – counterintuitively – make people more entrenched in their own beliefs. Introducing complexity and nuance can foster a more open-minded approach.

Here are some of his tips:

Uncover the Hidden Fear:

We often hear people resist change. But McQueen suggests a deeper truth: people fear losing something valuable. This could be certainty in their beliefs, a sense of control, or even self-worth. When someone seems stubborn, recognize it might stem from fearing a loss like this.

Address the Loss Aversion:

Instead of just highlighting the benefits of change, acknowledge potential losses people might associate with it. Can you reassure them or show how the change won’t diminish their power, security, or self-esteem?

Use “Right and Reflect” to Get People Talking:

This technique helps people reflect on their own reasons for change. Here’s how:
• Ask about willingness to change: Use a 1-10 scale, with 10 being most willing.
• Reflect on their answer: Listen to their response and acknowledge their hesitation (e.g., “Sounds like a 3 out of 10. What concerns you?”).
This simple approach encourages people to explain their resistance, potentially revealing underlying fears. You can then address these concerns directly and work together on solutions.

Build Rapport and Choose the Right Moment:
Trust and rapport are crucial, especially in formal work settings. When facing disagreements:
• Acknowledge the awkwardness: Let the other person know you understand the conversation might be difficult.
• Start with humility: Avoid being overly assertive. Show willingness to hear their perspective.
• Choose the right moment: Not all times are created equal. Pick a time when both parties are calm and receptive.

Frame Your Message for Impact:
The way you present information can significantly influence how it’s received. Here are two effective framing tips:
• Align with values: Use language that resonates with the other person’s values and moral foundations.
• Focus on the positive: Highlight positive aspects of the person or situation when giving feedback.

Move Beyond Persuasion and Focus on Progress:
The ultimate goal shouldn’t be to win an argument or force someone to agree with you. It’s about creating a space for open communication and exploration.

• Focus on progress, not victory: Changing minds is a gradual process. Celebrate small wins and focus on making sustainable progress together.
• Be open-minded and collaborative: Be open to considering the other person’s perspective and work collaboratively to find solutions.
• Avoid manipulation: Ensure your goal is to benefit the other person, not just yourself. True persuasion comes from a place of genuine interest in helping others grow and improve.

McQueen elaborates on these tips in today’s podcast episode. Enjoy!

Keep reading...

May 28, 2024By Paula Pant

#509: “I’m Retiring at Age 34 and a Half!”

Rob wants to retire early, but a real estate investment led to $30,000 of credit card debt. Should he take on more debt to pay it off?

An anonymous return caller took Paula’s advice and ran with it, doubling her income within a few years. Should she update her investment strategy now that she’s in a higher tax bracket?

Humaira is tired of paying rent with nothing to show for. Can she leverage some benefits by using her credit card to pay the bills?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

Keep reading...

May 25, 2024Written By Paula Pant

How to Buy Real Estate When Everything is Expensive

I want to speak candidly to anyone who wants to buy a home.​

You’re facing three problems:

Home prices are high Interest rates are high Inventory is low

None of these are going to get better anytime soon.

But there’s good news: You can buy a home, as long as you’re smart about it. By the end of this email, […]

Keep reading...

May 24, 2024By Paula Pant

#508: Stanford Researcher Dr. Mary Murphy on How to Cultivate a Growth Mindset

Recently I chatted with Stanford researcher Dr. Mary Murphy, a renowned expert in the field of psychological and brain sciences.

Dr. Murphy, who is a Professor at Indiana University and conducts research at Stanford University, shared insights into the concepts of fixed mindset and growth mindset.

We deep dived into her extensive research on how these mindsets impact motivation, performance, and relationships at work and home.

She conducted research alongside legendary psychologist Dr. Carol Dweck, who created the original studies around fixed vs. growth mindset.

If you’ve ever read about fixed vs. growth mindset in the past, you’ve undoubtedly heard of Carol Dweck, who is legendary in the space. Dr. Dweck mentored Dr. Murphy at Stanford, the university from which Dr. Murphy received her Ph.D.

Dr. Murphy’s insights can help you cultivate a growth mindset to overcome challenges and achieve your goals.

If you want to improve your performance — at work, at home, at the gym, as a world traveler, as an investor, or in any other domain — understanding the research behind mindset is critical.

Enjoy!

Keep reading...

May 22, 2024By Paula Pant

#507: How One Ex-Inmate is Building a Better Future

Suzy is excited to deploy her first corporate bonus but scared to invest everything in a lump sum. Should she stick with what’s worked in the past and just dollar cost-average?

Meghan doesn’t understand how stock pricing affects capital appreciation. Is it always better to buy when share prices are low?

Robert was recently released from prison and wants to start his life on the right foot. What’s Joe and Paula’s advice for him?

Former financial planner Joe Saul-Sehy and I tackle these three questions in today’s episode.

Enjoy!

Keep reading...

May 22, 2024By Paula Pant

#506: MadFientist: Life is Too Short to Wait for Someday

Today’s guest, Brandon Ganch, also known as the MadFientist, reached Financial Independence (FI) and quit his job as a software developer at 34. But then he faced a vexing question: what should he do with the rest of his life?

In this episode, Brandon shares his journey with FI, revealing the gap between the ideal life you envision on spreadsheets and the reality that unfolds. He talks about reaching FI sooner than planned, having more money than anticipated, and the adjustments he had to make to his lifestyle. It’s a refreshingly honest look at FI that goes beyond the numbers.

We also dive into the changing landscape of work and the impact of automation, artificial intelligence and machine learning. Brandon talks about what he would do differently if he were in his 20’s, and shares valuable insights on tools you can use to stay relevant and future-proof your career.

You’ll enjoy this if:

— You’re on the FI path and want to ensure your plans are flexible enough for life’s surprises.
— You’re curious about the unexpected realities of achieving FI.
— You’re concerned about automation impacting your job security.

Keep reading...

May 21, 2024By Paula Pant

#505: Harvard Dropout Builds Nation’s First Car-Free Utopia, with Ryan Johnson and JD Roth

Ryan Johnson isn’t your average CEO. He’s a visionary reimagining city life, one car-free community at a time.

In this episode, we chat with Ryan, the co-founder of Culdesac, about building walkable neighborhoods designed for human connection, not just traffic.

We’ll dive into his experience with Opendoor, his passion for electric bikes (he owns over 60!), and his audacious plan to revolutionize urban living.

Buckle up (or maybe don’t) for a conversation about the future of cities, the power of community, and why you might not need a car ever again.

Keep reading...

May 21, 2024Written By Paula Pant

7 Expensive Mistakes That Beginner Real Estate Investors Make

You’ve thought about investing in rental properties …

… but the fear of making a huge six-figure mistake holds you back?

You’re not alone.

That “what if I buy a disaster?” feeling is real, especially for beginners.

Imagine walking into a casino and putting $100,000 on red. That’s how some people view real estate investing – as […]

Keep reading...

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Afford Anything

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