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Tag: prioritizing goals

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...

May 6, 2024By Paula Pant

#501: Live From Brooklyn: Travel More, Work Less

Feeling stuck in a job you hate, dreaming of exotic adventures? This episode is your escape hatch.

Brad Barrett, host of the ChooseFI Podcast, takes the interviewer role in this special episode, recorded LIVE at a comedy club in Brooklyn.

Brad interviews me (!!) about how I quit my reporter gig and traveled the world for over 2 YEARS! This episode spills the tea on my transformation from newspaper reporter to world wanderer, and talks about how this podcast (now over 500 episodes!) got started. Feeling inspired? This episode is your travel hack manual for designing your dream life on a budget.

Enjoy!

Keep reading...

December 20, 2023By Paula Pant

#478: Buy the Damn Guac, with Jamila Souffrant

Ever skipped that extra drink, pricey cheese, or a night out for the sake of your wallet?

If this feels familiar, then you’ll appreciate today’s episode with Jamila Souffrant.

Jamila is a Certified Financial Education Instructor, podcast host, and author, guiding us on making savvy choices to save while still having fun.

Jamila explores the power of understanding our “why not,” staying motivated on our financial paths, shaping a success-bound mindset, and posing THREE crucial self-assessment questions for goal alignment

Keep reading...

November 29, 2023By Paula Pant

#474: Surviving a $35,000 Credit Card Scam, Job Loss and Foreclosure, with Tiffany Aliche, The Budgetnista

When Tiffany Aliche was in her 20’s, she fell victim to a credit card scam.

A crafty swindler convinced her to take out a cash advance against her credit card for $35,000. He said that he’d invest the money and produce Bernie Madoff- style returns. She was an inexperienced investor. She believed him.

She never saw that money again.

Aliche worked at a preschool. She didn’t make much money to begin with. But matters worsened when the school shut down, and she lost her job. She fell behind on mortgage payments and lost her condo.

In order to recover from such huge setbacks, she had to grapple with an enormous sense of financial shame.

Today, financial educator Tiffany Aliche, better known as The Budgetnista, shares how she overcame financial shame.

She talks to us about the opposite of shame, which is a sense of financial wholeness. And she discusses practical tips for how to navigate the challenges of debt and scams.

Keep reading...

June 29, 2022By Paula Pant

#388: “Feeling Anxious About Your Investments?”, with Scott Nations

Recessions are terrifying.

Market crashes often bring out the worst in people’s anxieties and fears.

This fear triggers us to act even more irrationally than usual – which can lead to making expensive mistakes in our investment portfolios.

In today’s episode, Scott Nations, who spent his career studying market volatility, describes some of the most common cognitive biases and irrational behaviors that investors make. He shares tips on how to master the mental game of investing, especially in turbulent times.

Here are a few irrational biases that destroy wealth:

#1: The disposition effect – Humans have a tendency to sell their winners and hold their losers.

Why? We get a dopamine hit when we sell a winning asset and lock in our gains. Meanwhile, sunk cost fallacy makes us want to hang onto the loser ‘until it comes back.’

How can we avoid falling prey to this?

First, if you’re thinking about selling off an asset that’s performing well, ask yourself: What’s the real motivation? Do you want to book a profit for the sake of booking a profit? Or do you believe that some underlying fundamental has changed?

Next, compare this decision to your investor policy statement, which is your written statement about your goals, timeline, risk tolerance, risk capacity, strategy and style as an investor. Is this decision aligned with your written personal policies?

#2: Status quo bias – Our tendency to overvalue our current situation, such as the mix of assets that happens to already be inside our portfolio. We demand a higher burden of proof to justify any change than we do to justify holding the status quo.

This is often triggered by information overload – when we feel overwhelmed by excess information and too many options, we react by doing nothing.

Psychologist Barry Schwartz calls this the “paradox of choice” – the more choices we’re offered, the more likely we are to not make any decision.

How can we protect ourselves from this? One tactic is to adopt a low-information diet, in which we carefully curate the amount of news and information that we receive.

Another tactic is to look at our resources and imagine that we’re starting from a blank slate. If we didn’t have our current mix of stocks, bonds, real estate, crypto, etc. – if we imagine that we’re starting with our entire net worth in cash – how would we allocate our capital if we were starting from scratch?

#3: Overconfidence – Research shows that people consistently overestimate both their abilities and their predictions of positive future outcomes.

The majority of people think they’re an above-average driver, which is mathematically impossible.

Most people overestimate their probability of getting and staying married forever, of not grappling with fertility issues, choosing a winning investment, or becoming a millionaire.

Today’s interview guest says that he’s aware that, among all the cognitive biases he describes, he’s personally the most susceptible to overconfidence bias. Staying aware of his personal susceptibility helps him keep it in check.

#4: Loss aversion – The sting of a loss is more emotionally profound than the joy of a gain. As a result, our brains are hardwired to avoid losses, rather than pursue gains.

This closely relates to the sunk cost fallacy that fuels the disposition effect, which we described above.

We describe many more cognitive biases in today’s episode. Enjoy!

Keep reading...

June 23, 2022By Paula Pant

#387: Ask Paula: Is A Crash Coming??

Lila is concerned about inflation and the risk of a recession. Should she invest in the stock market, despite the scary headlines? Or should she pay off her primary residence or her investment properties?

Linda invested in a 529 for her son’s college, and he’ll be starting in the fall. But, the value of the plan dropped right before she was planning on using it and she is wondering how to keep from losing more money.

Jen and her husband want to retire in 8 years. They’re hoping to have paid off their mortgage AND hit their net worth goals when they stop working. How should they prioritize between these two goals?

Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it here and we’ll answer them in a future episode.

Enjoy!

Keep reading...

May 24, 2022By Paula Pant

#382: Ask Paula: There’s No Such Thing as a FIRE Number

Sara wants to leave her job to spend time with her children, and she needs help in calculating her FIRE number. But is this possible?

Joe is buying his first house hack and would like to understand if the FHA loan or the doctor loan would be better for him.

Kat received a windfall and is wondering if she should invest it in stocks, real estate, or a combination of both.

Aisha is moving to the US and wants to start investing ASAP – how should she approach her goal to reach FIRE?

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

Enjoy!

P.S. Got a question? Leave it here.

Keep reading...

May 19, 2022By Paula Pant

#381: How to Not Let Your Feelings Hijack Your Decisions, with Mollie West Duffy

Maybe you’re envious of your friend who bought Bitcoin in 2015 and held until it hit 7-figures.

Maybe you’re anxious about rapidly rising home prices.

Maybe you regret that you didn’t buy a rental property five years ago, because – at the time – you felt like prices had already risen so much (from 2012 to 2017) that you just couldn’t justify paying 2017’s pricetag.

Our lives, finances and careers invoke many strong feelings. In today’s episode, Mollie West Duffy, the co-author of Big Feelings, shares strategies for not letting our feelings hijack our choices.

Mollie and her co-author, Liz Fosslien, run an Instagram channel about emotional management with half a million followers. Fosslien is an economist and behavioral scientist whose work has been featured by The Economist, Freakonomics and NPR. Duffy is an organizational and leadership development expert who’s written for Harvard Business Review.

They tackle relatable workplace issues like perfectionism, productivity guilt and Zoom fatigue, among much more.

Enjoy!

Keep reading...

January 13, 2022By Paula Pant

#359: The Four Quadrants of A Successful Life, with Andrew Hallam

Money, relationships, health and purpose: life is running smoothly when all four of these elements are working together in tandem, like wheels on a car.

But how can we make spending and investing choices that facilitate stronger relationships, better health and a deeper sense of purpose?

Andrew Hallam, who became a millionaire on a teacher’s salary, shares researched-backed, evidence-based insights into how to find balance, drawing from the worlds of behavioral finance and stock market history.

Keep reading...

January 13, 2022By Paula Pant

#351: The Six Myths of Productivity, with Geoff Woods

Geoff Woods, Vice President of The ONE Thing and host of The ONE Thing podcast, is an expert on ruthless prioritization, habit development, and goal setting.

The simple framework he presents allows you to focus deeply and commit to the actions you need to take if you want to take your productivity to the next level this year.

Enjoy!

Keep reading...

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Afford Anything

  • Start Here
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