Afford Anything

Category: Episodes

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#539: Ask Paula: Escaping a $100K Tax Nightmare

An anonymous caller feels trapped. She owes $100,000 in back taxes on earnings she had to give up as a result of a lawsuit with her former business partner. What should she do?

Saul and his wife want to retire in Mexico but they don’t want to give up the ability to continue investing in US stocks. Can they buy a primary residence that doubles as a short-term rental?

Nina and her partner are eager to start a $500,000 renovation on their home but they’re still three years away from saving enough. How can they bridge the gap without risking too much?

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

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#538: Fed Forecasts, Buffett’s Birthday, and Selena Gomez’s Billion-Dollar Brand

The latest jobs report just dropped, and it’s a game-changer. Job creation numbers are lower than expected, at 142,000 new jobs in August. This comes on the heels of the biggest downward revision in job numbers since 2009.

We’re diving deep into what this means for the Federal Reserve’s long-anticipated first rate cut. Are we looking at a modest quarter-point cut in interest rates, or a more substantial half-point drop?

The Fed’s decision could mean the difference between that dream house being within reach or slipping away. We’ll break down the latest data and translate what it means for you.

In our second segment, we’re celebrating Warren Buffett’s 94th birthday by exploring how he continues to lead Berkshire Hathaway with razor-sharp acumen — and what this teaches us about aging.

Finally, we’ll turn our attention to Selena Gomez, who just became a billionaire. Around 81% of her wealth comes from her makeup line; only 3% of her net worth comes from acting and singing. Her story highlights the power of entrepreneurship in building massive wealth.

Join us for a blend of timely economic analysis and inspiring success stories.

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#537: Ask Paula: “I Ran Out of Gas with 85 Cents in My Bank Account”

Frequent contributor Joe Saul-Sehy shares an emotional, personal story of getting into a soul-crushing level of debt in his 20s and early 30s.

He owed so much in back taxes to the IRS that he didn’t file a tax return for three years.

He ran out of gas and was stranded on the side of the highway, with 85 cents remaining in his bank account.

By the time he pulled himself out of debt, his twin son and daughter were seven years old.

Learn the gripping, gut-wrenching story of Joe’s past money mistakes in today’s episode.

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#536: The Psychology of Quitting Your Job, with Dr. Tessa West

NYU Psychology Professor Dr. Tessa West has spent nearly two decades studying relationships, including those in the workplace. She talks about her research on why people feel disconnected from their jobs and what to do about it.

Dr. West breaks down five main ways people might feel unhappy at work:

Crisis of identity: This is when you’ve poured a lot into your career, but you’re starting to question if it’s really who you are anymore.
Drifting apart: This happens when your job changes, not you. Maybe your company’s gone through some big shifts, or your day-to-day tasks are different now. Or maybe your industry has totally changed.
Stretched too thin: We’ve all been there – too much to do and not enough time.
Runner up: Always close to that promotion or raise, but never quite getting there.
Underappreciated star: You’re doing great work, but no one seems to notice.

Dr. West digs into each of these, explaining what they look like and why they happen. She talks about how work relationships are a lot like romantic relationships — just as you might feel disconnected from a partner, you can feel the same way about your job.

She describes a matrix that shows how satisfied you are with your job versus how much you identify with it. 

She also gets practical stuff, describing how to manage distractions at work and be more productive. There’s a neat concept called “working spheres” that might help you organize your tasks better.

If you’re thinking about leaving your job, Dr. West suggests doing some self-reflection and networking to learn about other industries or companies. She warns that there’s often a lot of “hidden” stuff about jobs that you won’t find in the job description, so it’s essential to dig deeper.

At the end, she talks about how to figure out if a new job will actually be better. Her main tip? Ask tough questions in interviews. Don’t be afraid to dig into the not-so-great parts of the job or company.

Dr. West doesn’t sugarcoat the tough parts of work life, but she offers practical advice for dealing with them. Whether you’re happy in your job or thinking about a change, you’ll find something useful here.

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#535: Ask Paula: Is Your DIY Investing Strategy Holding You Back?

Melissa and her partner are preparing for the best earning years of their lives. Could they benefit from automated tax-loss harvesting and transition from DIY investing to a robo-advisor?

An anonymous caller just learned something surprising about their Roth 401k and feels squeamish about making future contributions to this account. What’s Paula and Joe’s advice?

Hampton is following up on a question from Episode 524 to spark an intriguing discussion on the generational tax advantages of a Roth IRA.

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

Enjoy!

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#534: What You Can Learn From the CEO Who Built KFC, Taco Bell and Pizza Hut

We sit down with David Novak, the co-founder and former CEO of Yum! Brands, the giant parent company behind KFC, Taco Bell, Pizza Hut, and the Habit Burger Grill. David shares stories from his remarkable career, offering insights into leadership, decision-making, and personal growth.

We dive into one of David’s most memorable projects: the creation of Crystal Pepsi. David talks about how the idea was born out of a gut instinct when he noticed a trend toward clear beverages. The media buzz was massive, and he was convinced it was a winner. But the Pepsi bottlers pushed back, saying it didn’t taste enough like traditional Pepsi. David pressed on anyway. The product launched to a lot of fanfare but ultimately flopped.

David reflects on this experience as a lesson in the importance of listening to feedback, even when you’re sure you’re right.

The conversation then shifts to David’s unique upbringing. He lived in 23 different states before high school. This taught David to adapt quickly, make friends fast, and assess people and situations—a skill set that became invaluable in his leadership roles.

David then takes you through his early career, from being a mediocre student who found his passion in advertising, to making a pivotal move from marketing to operations at PepsiCo. This shift was crucial, setting him up to eventually lead Yum! Brands.

David’s journey is filled with stories of hard decisions, like turning down a bigger job at Frito-Lay because it didn’t align with what truly made him happy. He shares his philosophy on prioritizing joy and finding fulfillment in your work, a principle that guided his entire career.

Leadership is a major theme in the discussion. David talks about the balance between confidence and humility, using Warren Buffett as an example of someone who embodies both. He also shares his thoughts on how to handle criticism and feedback.

According to David, the key is to listen carefully, avoid being defensive, and understand whether the feedback is valid before making decisions.

David also offers practical advice on personal development. He talks about his “Three by Five” exercise, where he regularly assesses who he is today and what he needs to work on to become more effective. This habit of self-reflection has helped him stay grounded and continually improve as a leader.

The episode wraps up with a discussion on company culture. David believes that creating an environment where everyone feels valued is essential for success. He emphasizes the importance of leaders modeling the behavior they want to see in their teams and being the first to extend trust and positivity.

David’s stories and insights provide a deep dive into what it takes to lead a major company, make tough decisions, and continually grow both personally and professionally.

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#533: Q&A: My Insurance Bill Jumped 60 Percent – Should I Drop It?!

Kristin is floored by the 60 percent increase in her homeowner’s insurance this year. Should she cancel the policy and self-insure instead?

Susana and her husband are torn. They bought their dream home last year but now need to relocate indefinitely. What should they do with the house?

An anonymous caller wants to help his soon-to-be wife invest a five-figure gift she received in another country. How do they untangle the complexities of managing money from abroad?

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

Enjoy!

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#532: How to Get a Bigger Paycheck

We’re diving deep into the art of negotiation, especially when it comes to asking for a raise. The episode is broken down into three main parts, each designed to give you practical tools and insights that you can apply right away.

First up, setting the stage. Before you even think about negotiating, it’s crucial to […]

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#530: The Overlooked Power of Stock-Based Compensation, with Brian Feroldi

We sit down with financial educator Brian Feroldi to dive into the often-overlooked world of stock-based compensation. This form of compensation is becoming more common, especially in large companies, but many employees don’t fully understand how to make the most of it. Brian helps break down the basics, explaining what stock-based compensation is and why companies use it to attract and retain employees.

We start by discussing why companies offer stock options or restricted stock units (RSUs) instead of just higher salaries or bonuses. Brian explains that stock-based compensation is a way for companies to align your interests with the success of the business. When you own a piece of the company, you’re more likely to care about its performance, which can drive you to work harder and stay longer. This also allows companies to conserve cash while still offering competitive compensation packages.

Brian also highlights the importance of understanding the different types of stock-based compensation. He breaks down stock options, where you have the right to buy company stock at a set price, and RSUs, where you’re given shares of stock that vest over time. Each has its pros and cons, and understanding these differences can help you make better decisions about your compensation.

One of the key takeaways from our discussion is the importance of negotiation. Brian emphasizes that the best time to negotiate stock-based compensation is when you’re first hired. Companies often have more flexibility with stock options than with salary, so it’s crucial to ask for more stock or a shorter vesting period upfront. This can make a big difference in your long-term financial gains, especially if the company’s stock value increases over time.
We also touch on the tax implications of stock-based compensation. Brian explains that different types of stock options are taxed differently, and understanding these tax rules can help you minimize your tax bill. For instance, holding onto stock after exercising options can lead to lower taxes if the stock price rises and you qualify for long-term capital gains.

Throughout the interview, Brian shares practical tips for you, such as targeting companies in industries like technology and healthcare that are known for generous stock-based compensation packages. He advises you to educate yourself on your company’s specific policies and to be proactive in managing your stock options to avoid leaving money on the table.

By the end of the episode, you’ll have a clearer understanding of stock-based compensation and how to leverage it to build wealth. Brian’s insights are particularly valuable if you’re switching jobs and want to maximize your compensation package.

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