rental emergency funds

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    #336: Ask Paula: I’m Barely Breaking Even on My Rental. Should I Sell?

    ByPaula Pant
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    Paula standing outside by a wall wearing a blue shirtAnonymous and his partner have a one-bedroom condo that they rent out in Pasadena, CA. The problem? They’re barely breaking even. Should they keep the condo, or sell it and make better use of the profits?

    Sam wants to know: how much of an emergency fund does a rental property need?

    Michael and his wife expect their taxable income to be less than $10,000 this year. Should Michael (age 56) take distributions from his 401k to minimize or eliminate their income tax burden?

    Shanon wants to switch to an ethical bank with values that align with hers. How can she create a framework for making decisions about financial institutions when authentic information is scarce?

    Sharon’s husband purchased a property with a below-market loan in 2008. They now have an extra $4,000 per month, and Sharon wants to buy a property as a first-time buyer. They’re torn between keeping the property or selling it. What should they do?

    Former financial planner Joe Saul-Sehy joins me to answer more of your questions.

    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.

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    #195: Ask Paula – I Make $168,000 Per Year and Spend $5,000 Per Year. What’s Next?

    ByPaula Pant
    [smart_track_player url="https://traffic.libsyn.com/paulaandjaymoney/AA195.mp3" title="Ask Paula - I Make $168,000 Per Year and Spend $5,000 Per Year. What’s Next?" 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" ]

    Alex makes $168,000 per year, combined between her full-time job and her side hustle. Her company pays for breakfast, lunch and dinner during the work week, plus a cell phone subsidy, health, dental and vision insurance, a gym membership, and commuting costs. She also househacks, so her living expenses are only $400 per month. What should she do with her ample savings?

    Christine is 38 and earns $70,000 per year running her own business. She holds $70,000 in investment accounts, has another $16,000 in savings, bought a condo with 20 percent down, and has no debt. What can she do to fast-track her path to financial independence?

    Amy is unsure whether she should pay off her mortgage, downsize to a smaller home, or invest.

    Katherine is 23 and househacking into a duplex. How much should she set aside for cash reserves?

    Miriam started a podcast and wants to know how to morph a passion into a lucrative income stream.

    Nick wonders if the FIRE movement should plan an annual gathering … you know, like a FIRE Festival. (But not like the Fyre Festival.)

    I tackle these six questions in today’s episode.