Afford Anything

Category: Personal Finance 101

By Erin @ Team Afford Anything

#295: What Your Childhood Taught You About Money, with Rachel Cruze

Have you ever stopped to wonder why you find it so painful to part with your money? Or why money seems to slip through your fingers as soon as you get paid? 

Are you able to define your values and connect them with how you manage your finances? 

Have you deeply examined the fears you have around money, and how those fears influence your financial behavior? 

In simple terms: what’s the motivation behind your money management style? 

Whether you’ve pondered these questions for years or they’ve never crossed your mind, digging into your money story can shed valuable insight on your behaviors with money. Those insights may help you develop a healthier relationship with money. 

Rachel Cruze, four-time bestselling author, two-time guest of the show, and daughter of Dave Ramsey, joins us today to talk about three frameworks that can help us better understand our money habits. 

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By Paula Pant

#294: Ask Paula – If I Were to Interview Suze Orman Again Today, How Would It Go?

Jeffrey is curious: if I were to interview Suze Orman today, would I agree more or less with her thoughts on the financial independence retire early (FIRE) movement?

Matt wants to know: if a property cash flows really well, is it worth paying significantly more than the appraised value to purchase that income stream?

Sara and her husband are returning to the states after living abroad for a few years. They’re moving to an expensive area where homes cost $800,000+. They have $150,000 saved for a downpayment, but a $600,000 mortgage isn’t what they had in mind. What should they do?

Eva and her partner are squirreling away money before the birth of their baby. They’d like to pay off their $90,000 mortgage in three years, but they’re afraid to use the money in case of unexpected baby expenses. What’s their best move?

Justin and his wife want to take a gap year with their children in three years. They plan to visit Spain and London for six months each. What are unexpected expenses that they should factor into their budget?

I answer these questions on today’s episode. Enjoy!

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By Paula Pant

#292: Ask Paula – I’m an Investor Who Likes Volatility; What Should I Buy?

Three Kids, FI has an all-equities broad stock market index portfolio that he’s held for years. He’s confident he can handle maximum volatility, so what investments can he lean into to that will provide him with great long-term returns?

Sarah is concerned: a financial advisor told her that investing in VTSAX over-indexes her in large cap funds and technology stocks. Is this true, and what should she do about it?

Alex’s wife lost her job due to the pandemic. They live in Washington state and are married filing separately due to his wife’s student loans. Can he use half of his income to qualify her for Roth IRA contributions?

Jordan is a new listener and he has three questions: should he use $100,000 to buy more rental properties or invest in a brokerage account? Should he and his wife upgrade their home and buy a property that’s worth double their current home? And finally, how can self-employed individuals who earn more lower the cost of health insurance?

I answer these four questions on today’s episode. Enjoy!

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By Erin @ Team Afford Anything

PSA Thursday: Year-End Tax Moves to Finish 2020

Welcome back to PSA Thursday, a weekly-ish segment in which we talk about how to handle money, work, and life in the year that is 2020.

Today, we focus on end-of-year tax planning and what you can do to prepare before you celebrate the end of 2020.

Here’s what we cover:

  1. Open a retirement account – you can make contributions that can be retroactively applied to 2020
  2. Adjust your tax withholdings
  3. Check your 529 Plan – see if your contributions qualify for a state income tax deduction or credit
  4. Make charitable contributions
  5. This could be a good year to make a Roth conversion
  6. Spend down the balance in your FSA – you can only rollover up to $500

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By Paula Pant

#290: Ask Paula – Is Upgrading Our Lifestyle Worth Mortgaging a More Expensive House?

Sharon owns two condos that are worth $1.4M and has a cash cushion of $120,000 plus a $50,000 emergency fund. She’d like to move into a small house while keeping her cash cushion intact. Should she take out a home equity loan on her mortgage to essentially pay for her house in cash, or get a traditional mortgage and use her savings towards the downpayment? 

Jury and her partner are torn between two options: buying a condo, which would allow them to live off of one salary and invest the other, or buy a more expensive house – a much more attractive lifestyle option. Which should they purchase? 

Daine’s IRA balance is a result of 401k rollovers. He’s concerned that his lack of monthly contributions cause him to miss out on compound interest. What can he do to grow his retirement funds?

Molly and her husband want to reach financial independence (FI) in 15 years, at age 50. They’re unsure of whether their rental property income will sustain their FI lifestyle. How can they plan for this?

I answer these questions in today’s episode. Enjoy!

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By Paula Pant

#285: Ask Paula – How Can I Pay for Grad School?

Sam wants to use the funds in her Vanguard S&P 500 index funds for a downpayment on a house. She isn’t sure if she should keep her savings in the market. Should she move her money, and where?

Hailey purchased a duplex in March and is already looking to sell due to a hostile tenant during the purchase process. How can she shift her focus from her initial return on investment to a long-term outlook?

Zoe dreams of attending grad school, but her savings are locked away in retirement accounts. How can she save for grad school in the next two to three years?

Mohamed wants to monetize a new podcast with affiliate relationships, but the service providers he wants to promote don’t offer affiliate programs. Can he still make this work, and how?

I answer these listener questions in today’s episode. Enjoy!

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By Erin @ Team Afford Anything

#283: Ask Paula & Joe – Could the Stock Market Be Too Much of a Gamble?

Andrea’s parents have a seemingly salesly financial advisor. He tried to get them to purchase a second life insurance policy, among other potentially pushy moves. Are her parents better off without his advice?

Teresa can’t shake the feeling that the stock market is more of a gamble than an investment. Is there any advantage to holding funds for the long-run if the market drops and you lose your gains?

June is curious about the best college planning strategies for families who are working toward, or close to, financial independence. How can you help your children while securing your financial future?

Big Sister’s little sister rents a mobile home in an area she loves. The owner wants to sell, but her little sister might not obtain financing. Should Big Sister buy the property and sell it to her via seller financing?

Managing for Mom in Massachusetts has an investment strategy that he wants to run by us. Does it make sense to shift a 50/50 stocks and bonds portfolio to 100 percent stocks, and shift back to a 50/50 split after the market returns to pre-pandemic numbers?

My friend and former financial planner Joe Saul-Sehy joins me to answer these questions. Enjoy!

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By Paula Pant

#277: Timeless Financial Lessons from My Grandma, with Michelle Singletary

Michelle Singletary writes a Pulitzer-nominated personal finance column, The Color of Money, for The Washington Post. Her column is syndicated in more than 100 newspapers nationwide. She’s the author of three finance books and holds an MBA from Johns Hopkins University.

But her strongest financial education came from her grandmother.

Her grandmother raised five grandchildren while working full-time as a Nursing Assistant at a hospital. She earned $13,000 per year, but never took welfare, was never late on a bill, and “handled her money like a pro.”

In this podcast episode, Michelle shares timeless financial lessons she learned from her grandmother, including…

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By Paula Pant

#275: Avoid These 13 Hidden Money Mistakes That Most People Make, with Jill Schlesinger

It’s September! I’m on round two of what I’ve dubbed my September Sabbatical, otherwise known as my yearly time to take a one-month recess from podcast production.

Throughout September, we’re airing some of the most insightful, inspiring interviews from the archives. You’ll hear from experts discussing topics like habits, happiness, focus, digital minimalism, classic financial lessons and easy-to-make financial mistakes. Enjoy!

Even the nerdiest of money nerds are susceptible to making a dumb financial mistake.

“Nope, not me! There’s no way I make any financial mistakes. I live and breathe this stuff.”

Hm, really? You’re not capable of making any financial mistakes?

By the way – we’re not talking “classic” mistakes like taking out a bunch of loans, running up your credit card, or making a late payment.

We’re talking about hidden mistakes, like having the wrong life insurance policy, or not having an estate plan, or listening to the wrong ‘experts.’

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