Personal Finance 101

New to personal finance and money management? Start here to learn about the basics like paying off debt, saving more, spending less, and budgeting.

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    #324: Ask Paula – I Make $50,000; How Can I Buy a House?

    ByPaula Pant
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    Nick is curious: how have my views on wholesalers changed over the years, and why?

    Rob and his fiancé are grappling with what to do about her $400,000 of federal student loan debt. Should they pay it off immediately, or bank on a 20-year dismissal?

    Daniel recently discovered the financial independence retire early (FIRE) movement and got a job earning $50,000 per year. He wants to househack a duplex to get closer to FIRE, but how the heck can he find anything in this seller’s market?

    “Nurse Dreaming of FI” isn’t sure what her family’s next financial move should be. She’s torn between investing extra money into index funds, or using it to buy a fix-and-flip. Her goal is to make work optional. Which path will lead her there?

    “Phoebe” and her husband have 457s with the City of Chicago. However, they found out that Illinois has a horrible credit rating. How can they – and should they – protect their funds? How much should they rely on their pensions?

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

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    #322: Ask Paula – I Want to Retire at 50; How Do I Bridge the Gap?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA322.mp3" title="Ask Paula - I Want to Retire at 50; How Do I Bridge the Gap?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Jess wants to reach financial independence by the time she’s 50. But she’s worried that she doesn’t have enough money in cash or taxable brokerage accounts to bridge the gap in her first few years of retirement. What moves should she make, if any?

    Yisell wants to invest money now. Should she cash out her $70,000 pension in hopes to generate more than the $1,000 per month she’s guaranteed from it?

    Abbey is 22 and she would like to go back to graduate school for nurse anesthesia. Should she save up and pay for it in cash, or invest her money and take out federal loans?

    Eliana enjoyed our interview with Paul Merriman on the two-fund portfolio. She’s curious about what growth stocks and value stocks are, and how they fit into a passive index fund investing strategy.

    Finally, Sneezy wants to know: why aren’t stocks a good hedge against inflation?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s episode. Enjoy!

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    #320: Ask Paula – Thinking about Money from First Principles

    ByPaula Pant
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    Rob hopes to retire at age 60, but he has a pesky mortgage balance he wants to eliminate beforehand. He and his wife expect to inherit $300,000. Should they use this money to pay off their mortgage or should they bulk up their retirement accounts?

    “Billy” has two questions. One is about the tax efficiencies of ETFs vs. mutual funds, while the other is about Ginny Mae funds and whether there are bond funds that have an inverse relationship with equities.

    Priya is looking for information on home equity loans: where can you get the best terms, and what are the disadvantages? Additionally, she’d like to know which city is best for rental investing: Atlanta, Dallas, or Raleigh?

    My friend and former financial planner, Joe Saul-Sehy, joins me on the show to answer your questions. Let’s dive in!

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    #318: Ask Paula – How to Think About Finances at the 30,000-Foot Level

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA318.mp3" title="Ask Paula - How to Think About Finances at the 30,000-Foot Level" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Kim is newly divorced and celebrating the freedom to make her own financial decisions. She’s struggling to make a living — also as a new realtor — and wants to get started with real estate…but how can she do that on limited funds?

    Kim also wants to know: should she move her funds from an actively managed Fidelity IRA to a Vanguard Roth IRA?

    Chaz is 22 and has $2,100 – $2,500 left each month to put toward savings. Where should he keep this money if he’d like to move out-of-state in the near future?

    Joe is a new real estate agent and he’s looking for ways to save. Is opening a SEP IRA a good account when you’re no longer a W2 employee?

    Grace has a similar concern: she’s a tutor, but she’s paid as a contractor. Should she forget about her Vanguard brokerage account and open a SEP IRA or Solo 401k?

    Anonymous just got a raise, and while awesome, it might push her income to a level that prohibits her from making full Roth IRA contributions. Should she make a partial contribution this year, or start adding money to a Traditional IRA to do a backdoor conversion?

    My friend and former financial planner, Joe Saul-Sehy, joins me to tackle these questions. Let’s dive in!

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    #312: Ask Paula – How Should I Invest $5,000 Per Month?

    ByPaula Pant
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    After paying basic living expenses and maxing out their 401k’s and Roth IRAs, Caroline and her partner have $4,000 – $5,000 left each month. Where should they put this money if their goal is to simply have their money work harder for them?

    Sanjay is torn between selling his townhome or renting it out. The rental numbers don’t work on his 15-year mortgage — should he refinance to a 30-year mortgage instead?

    “Olivia” has two unrelated questions: what are our thoughts on the housing market in relation to the moratoriums on mortgage payments and emergency bans on evictions? What will happen when they go away? Additionally, what tools, questions, or resources do we recommend to have a productive financial conversation with your partner?

    Kyle wants to construct a portfolio with the highest Sharpe ratios and wants to know: would the risk parity model work? What are the downsides?

    “Priyanka” wants to know: do you need to submit receipts for the HSA contributions you make?

    G is curious: does the stimulus check received for their children count as earned income for the kids? If so, can they put it toward the Roth IRAs they opened for their children?

    My friend and former financial planner, Joe Saul-Sehy, joins me as usual to tackle these questions. Enjoy!

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    #310: Ask Paula & Joe – What Should I Do With $25,000?

    ByPaula Pant
    [smart_track_player url="http://traffic.libsyn.com/forcedn/paulaandjaymoney/AA310.mp3" title="Ask Paula - What Should I Do With $25,000?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Greta is tired of financial modesty. She wants to achieve financial independence through diversified income streams, and has her eyes set on owning local duplexes. What should she focus on to make this happen?

    Jeannie wants to know: should you scale back 401k contributions so you can invest in something else, like real estate?

    Steph and her husband came into $25,000 and aren’t sure what to do with it. Should they pay off their student loans, save it towards a house and starting a family, or purchase her company stock options?

    J from California is curious: how do you strike a balance between optimization and simplicity in your financial plan?

    Dawn has $65,000 in a 403b through Ameriprise and the fees associated with it are outrageous. Should she take the money out and put it elsewhere, or leave it?

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

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    #308: Ask Paula – I Want to Travel After I Retire; How Much Should I Save?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA308.mp3" title="Ask Paula - I Want to Travel After I Retire; How Much Should I Save?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Anonymous in Virginia wants to travel after retiring, which will increase her expenses for the first seven or so years of her retirement. How can she plan for a higher withdrawal rate at the beginning of retirement, and a lower withdrawal rate in the middle of her retirement?

    Given the talk around student loan forgiveness, Jess wants to know: should she pay the minimum on her student loan debt and save the payments she would otherwise make? Or should she keep throwing extra at her higher interest loans?

    Ziggy purchased an $890,000 property in San Mateo, CA in 2016. After living there for a year, he had to move, so he rented it out. Unfortunately, it’s cash flow negative. Is this property worth holding onto, or should he sell?

    Vivek has a paid-off primary residence that he’s interested in renting out for a few years, before selling. He’s worried about capital gains tax – does turning the home into a rental impact the amount he’ll pay?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Let’s dive in!

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    #306: Ask Paula & Joe – How to Shift From Financial Independence to a Mini-Retirement?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA306.mp3" title="Ask Paula: " artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Jake and his wife want to retire in five years, at which point they’ll have 14 years before they can access their 401k funds. To help bridge that gap, Jake wants to know: what should their asset allocation look like for their taxable brokerage account?

    This year, Kim’s employer enrolled all employees into a “fully funded indemnity program combined with a nationwide direct primary care membership.” What the heck is this program, and how might it impact Kim’s finances?

    Burnt Out in Boston is switching their focus from financial independence to taking a mini-retirement. How can they financially and mentally prepare for this leap?

    Matthew is torn: should he and his wife – both 26 – max out their Roth IRAs and then save up for a rental property, or simply save cash for the rental and worry about their Roth later?

    Finally, Deva and her husband are fed up with their messy tenants. They’re kind and responsible, but they’ve left the yard a mess. They have a clause in the lease that addresses this, so beyond that, what can they do?

    My friend and former financial planner, Joe Saul-Sehy, joins me to answer these questions on today’s show. Enjoy!

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    #304: Ask Paula & Joe – Help! I Can Only Save $200 a Month

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA304.mp3" title="Ask Paula: Help! I Can Only Save $200 a Month" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Paige and her fiancé have two autumn 2021 goals: save for a wedding and an emergency fund. There’s one problem: they only have around $200 per month to save. How can they grow the gap when they’ve run out of things to cut and ways to earn more?

    Kat’s investor friend connected her with a wholesaler who only deals in cash. How can she find $130,000 to buy her subject property?

    “Jon,” an anonymous caller, is renting his grandparent’s property, which he plans to make his forever home. It’s on the older side and needs renovations, but the repairs don’t need to happen immediately. How can he fund these repairs while also avoiding a mortgage payment in his 60s?

    Anonymous caller “Chadwick” is planning for financial independence. Given that his employer covers his housing, when should he and his wife look for a house? Now, or in the last year of his job?

    Annalis wants to know whose approach to business I prefer: Gary Vee’s, or Cal Newport’s? She also asks: how do you become a good speaker?

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

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    #301: Ask Paula – How Can I Reach FIRE in 11 Years?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/secure/paulaandjaymoney/AA301.mp3" title="Ask Paula - How Can I Reach FIRE in 11 Years?" artist="Paula Pant" social="true" social_twitter="true" social_facebook="true" social_gplus="true" social_linkedin="true" social_stumble="true" social_pinterest="true" social_email="true" ]

    Sarah wants to refinance her owner-occupied triplex, but she’s torn between a 15-year and a 30-year option. Which is better in her situation?

    Amelia is worried that she and her husband are under-insured. Should her husband get a short-term disability policy, even though it’s expensive and they’re unlikely to need it?

    Steven just discovered the financial independence (FI) movement in July 2020, and he wants to reach FI in 11 years. He has $30,000 in cash and $26,000 of student loan debt. How should he use his cash given his FI goal?

    The South American Anthropologist wants to make a career change. His baby daughter has inspired him to become an example of living life on your own terms. Will his financial independence plan sustain him and his family for years to come?

    Annalis and Mike are hunting for their first rental property, but they haven’t found anything nice that meets the one percent rule. Should they purchase a mansion and rent the rooms on Airbnb?

    My friend and former financial planner Joe Saul-Sehy joins me to answer these five questions in today’s episode. Let’s dive in.