Afford Anything | Make Smart Choices About Your Money, Time And Productivity

#174: Should a 48-year-old New Yorker who’s retiring next year buy more rental properties? Should a Michigan-based first-time homebuyer use an FHA loan to buy a duplex for $135,000 that rents for $1,800 per month? Should a 40-year-old music professor who owns a duplex transfer his property into an LLC? Should a New Jersey condo owner sell her unit as For Sale by Owner? And should a woman who’s anxious about owning her own rental properties dive into real estate crowdfunding deals instead? I answer these five rental property questions in today’s podcast episode. For more information, visit the show notes at https://affordanything.com/episode174 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#173: Paulette Perhach is a journalist who has been published in The New York Times, Slate, ELLE, Marie Claire, and Cosmo. But we’re not going to talk about that today. We’re going to talk about the fact that she’s made every decision by putting her life first, and then forcing her career to follow. She’s hiked through jungles and watched eclipses and volunteered with the Peace Corps. She’s been on crazy adventures in far-flung places. She endured unimaginable pain and it’s because of those challenges -- not despite them, but because of them -- that she knows her one precious, wild life is too short to spend in a cubicle. Many people who pursue financial independence are looking for a fully-funded lifestyle change. But Paulette made an unfunded change. She lives her life, and then figures out how the money follows. What can we learn from her resourcefulness? Find out in this episode. For more information, visit the show notes at https://affordanything.com/episode173  Learn more about your ad choices. Vis

#172: Should a 25-year-old homeowner with healthy savings and no debt (other than his mortgage) upgrade his car? Should he make this choice if his current car is fine, and upgrading puts him into new debt? Should a couple without access to an employer-sponsored retirement plan put their savings into a taxable account, or should they save for a downpayment on a rental property? The market is fluctuating like mad; if someone has a lump-sum of cash, should they invest it now or should they slowly meter it in? Should someone without an emergency fund enroll in an HSA-qualified health insurance plan? Or should they stick with a plan that has a smaller deductible? How should a husband-and-wife team that’s self-employed and running a company together handle their health insurance? Former financial planner Joe Saul-Sehy and I answer these five questions on today’s podcast. Enjoy! For more information, visit the show notes at https://affordanything.com/episode172  Learn more about your ad choices. Visit podcastc

#171: Chris Hogan surveyed 10,000 millionaires in the United States. Here's what he discovered: - 89 percent of millionaires have a net worth between $1 million to $5 million dollars - 62 percent graduated from public state schools - 9 percent didn't graduate from college - Close to 50 percent had a B average or less in school - 55 percent give to charities and churches on a regular, monthly basis - 73 percent never had a penny of credit card debt - 18 percent are self-employed - 62 percent earned a household income of less than $100,000 annually - 80 percent exercise at least three times a week. On average, their homes are 2,600 square feet, and they've lived there for an average of 17 years. Two-thirds have a paid-off mortgage. They paid off their home on average in 11 years. Their net worth breaks down as one-third their home, and two-thirds their investments. They became millionaires at the average age of 49. They spend, on average, $35 on a pair of jeans.   What can we learn from these ever

#170: When should you NOT use the one percent rule for rental property investing? In today’s episode, I encourage two callers to violate the One Percent Rule for real estate that they already own. WHAAATTTT? Why would I say that? Especially given that I’ve gained a bit of a reputation as The World’s Most Staunch Advocate of the One Percent Rule? (Long title, I know, but someone’s gotta wear it.) And if you’re not going to use the One Percent Rule, how should you make decisions about your real estate investments instead? Find out in this podcast episode. Enjoy! For more information, visit the show notes at https://affordanything.com/episode170  Learn more about your ad choices. Visit podcastchoices.com/adchoices

#169: Happy New Years! To kickoff 2019, we've created a free book called One Tweak a Week, outlining 26 easy, actionable ways that you can improve your financial life. Today's podcast episode covers these 26 tweaks, so you can listen in audio format, in addition to reading the book. If you put these into action for the first six months of 2019, you'll be in a more stronger position in June than you started in January. Each tweak takes less than one hour (some are as quick as five minutes), and taken together, these tweaks can accumulate into a serious impact. Improve your money management and get closer to financial independence with our free book, One Tweak a Week. You can download it here: https://affordanything.com/2019  Learn more about your ad choices. Visit podcastchoices.com/adchoices

#168: You can do anything, but not everything ... and definitely not everything at the same time. How can you optimize your time and energy? How do you choose what's worthwhile and what's a waste of time? How can you eliminate small decisions so that your mind is free to focus on the few choices that make a massive 10x impact? How can you spend less time struggling with your Inbox, and more time on long-term projects that can boost your income? When inspiration strikes or new opportunities present themselves, how can you decide whether or not this new project is worth your time? What's the difference between being efficient vs. being effective? How can you eliminate distractions? Can you train yourself to pay attention to important tasks, rather than getting distracted by Facebook, email, television and other time-wasters? When is it okay to relax? And what are the keys to a great morning routine? In today's episode, productivity expert Mike Vardy describes his answers to these questions. Here are fi

#167: Angelisa is a college senior with $30,000 in student loans. She has a part-time job, from which she’s saved $2,500. Should she keep saving money, or should she get a headstart on paying down her student loans while she’s in school? Mackenzie is also a college senior with some student loans. She recently received a settlement from a car accident. Should she invest this money? If so, how? Franchesca is 35 and is carrying $212,000 in debt, mostly student loans. Could she reach financial independence, even with a late start? Erica wants to make environmentally-friendly investments. How should she approach this? Caroline is 42 and has started making after-tax (non-Roth) 401k contributions. Is this a good idea? Schaffer is curious about podcasting. How did I get started? I answer these six questions on today’s podcast episode, alongside former financial planner Joe Saul-Sehy. Enjoy! For more information, visit the show notes at https://affordanything.com/167  Learn more about your ad choices. Visit pod

#166: Michelle Singletary learned everything she knows about money from her grandmother. Well, okay, I shouldn't say "everything" that she knows. After all, Michelle also has an MBA from Johns Hopkins University. She writes about personal finance for the Washington Post. Her nationally-syndicated personal finance column, The Color of Money, is published in more than 100 newspapers nationwide. She's written three financial books.   Michelle has been learning, thinking, writing, researching and speaking about money management for decades. Yet the most important education she received, she says, came from the lessons her grandmother taught her.  Today, Michelle joins us on the Afford Anything podcast to talk about what she learned about financial independence, and her views on the FIRE movement. For more information, visit the show notes at http://affordanything.com/episode166  Learn more about your ad choices. Visit podcastchoices.com/adchoices

#165: Should Kim, an entrepreneur, invest in index funds or rental properties? Should Nick, an MBA student, househack into a more-expensive home with stronger cash flow, or a cheaper home with more budgetary wiggle room? Should Kelly, who is getting married soon, sell her current home and use the proceeds to buy multiple rentals? Or should she use her current home as a rental property? Should Trayci and her sister invest in rental properties or bare land? I answer these four questions in today’s episode. We’re a weekly show, but on the first Friday of the month, we air a bonus episode. This is our December 2018 First Friday Bonus Episode. Enjoy! More resources and be found at https://affordanything.com/episode165  Learn more about your ad choices. Visit podcastchoices.com/adchoices

#164: As an entrepreneur, Bob Lotich loves growing and expanding. But after a particularly stressful year, he realized he had burned out. He woke up one Monday morning and, for the first time since he’d started self-employment, he realized he didn’t want to go to work. This was a new and uncomfortable feeling. He decided to take a mini-retirement. He had taken long breaks before. In the past, Bob had taken a full month off of work. This time, he wanted to a more ambitious break. He wanted to take a quarter off. He went to his whiteboard. He wrote the goal “take a sabbatical,” intending for this to last for three months. But then he paused. He wondered if he spelled the word “sabbatical” correctly. He Googled the word, then started reading about the concept. Bob learned that a sabbatical is historically a one-year break. Hmmm. That’s when he changed direction. Bob Lotich shares the reasons he decided to take a full year off work. For more information, visit the show notes at http://affordanything.com/e

#163: Does my employer match count against my 401k contribution limits? Should I invest in a Traditional or Roth TSP? Should I invest more aggressively in stocks right now, or should I hold cash and bonds until the next downturn? Should I get a mortgage or keep renting until I can buy a home in cash? Do you think index investing will dramatically change in the coming decades? Former financial planner Joe Saul-Sehy and I answer these four questions in today’s episode. For more information, visit the show notes at https://affordanything.com/episode163 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#162: How will artificial intelligence, AI, impact jobs? Former Harvard president and leading economist Larry Summers predicts that one-third of men will be out of work by 2050. Finance guru Suze Orman says not to be surprised if we see 25 percent unemployment by 2030. And major research institutions predict anywhere from 14 percent to 50 percent unemployment. But could this really be possible? Or is everyone panicking about what will essentially be a shift in the types of jobs that people hold — reminiscent of our shift from farm to factory, and from factory to office — but not an actual net job loss? To answer these questions, we talk to Darrell West, author of The Future of Work, about artificial intelligence, robots, and the future of jobs.   For more information, visit the full show notes at https://affordanything.com/episode162  Learn more about your ad choices. Visit podcastchoices.com/adchoices

#161: Matt is interested in achieving financial independence, and he wants to encourage his friends to pursue the same goal. What podcast episodes provide a light, digestible introduction to the world of financial independence and retiring early? Daniel wonders why everyone pursuing financial independence seems to have a blog or podcast about this topic. Is the purpose of FIRE to sit around writing and talking about how you’re FIRE? If so, then what’s the point? Tom is an entrepreneur with an LLC in California. Should he buy a rental property through that LLC? Anonymous from California wants to know how I decide whether to use a property manager vs. self-manage my rental properties. She also wants to know how to estimate the cost of repairs and maintenance. And how should the tax benefits of rental properties play a role in choosing a property? Brett owns a rental property in Las Vegas, which used to be his primary residence. He’s getting a strong cap rate but a marginal return on equity. Should he hold t

#160: When Jonathan Mendonsa was 18, he researched which college degrees lead to the highest income. Pharmacy was near the top of the list of high-paying degrees, so Jonathan decided to become a pharmacist. He wasn't motivated by passion or calling. His decision was purely tactical. He wanted to make money. He spent four years in college, followed by another four years of graduate school. By age 28, he held a Doctorate in Pharmacy and an astounding $168,000 in debt. This debt burden might have been bearable if Jonathan loved his chosen profession. For people who love their fields, tuition is the price of being able to enjoy a lifetime of work they love. Unfortunately, that wasn't Jonathan's story. He never held a passion for pharmacy; he viewed it purely as a means to an end. Perhaps it wasn't surprising, then, that shortly after becoming a pharmacist, he realized that this wasn't what he wanted to do with his life. He wanted to change careers. He wanted to pursue more meaningful, fun, interesting work.

#159: Should a 36-year-old father of three invest primarily in Traditional or Roth retirement accounts? Should Rose, a grandmother of four, open a Vanguard account for each of her grandchildren? Should Nancy, who lives overseas and is the sole breadwinner in her family, invest in a Traditional or Roth TSP? Should Scott’s wife rollover her 403(b) from her former employer into an IRA? Should Patrick, age 35, cancel his life insurance plan? Former financial planner Joe Saul-Sehy and I answer these five questions in today’s episode. Our first caller is Mr. “Three Kids and Still Hoping for FI,” who asks: Should I be trying to grab as many Roth dollars as I can before I can’t contribute anymore? Or should I just pour dollars into my traditional 401(k) and have my Roth conversion ladder and/or SEPP-72(t) ready? Rose asks: I have about $1,200 for two of the kids. Can you please suggest the best fund I can start with? Can you also suggest options for birthday gifts? I like giving money, and the kids don’t need anythin

#158: Clark Howard loves the FIRE movement. That's because he's one of us. Clark began investing in real estate at age 22, started a travel agency at age 25, and retired at age 31. He sold his travel agency, moved to the beach and relaxed for four years; then he started a second career as the host of The Clark Howard Show, a popular radio show that's syndicated nationwide. Today, he's a personal finance celebrity. His website receives more than 50 million views per year. He has more than 1.1 million followers on Facebook. Clark is a consumer advocate and personal finance voice who walks the talk. He doesn't accept sponsorships that conflict with his values. He loves frugality and efficiency. Last week, he was traveling in New York on a company expense account, yet he still rode the subway, because he didn't like the idea of wasting money on a taxi ... *even if it wasn't his own money.* He's a philanthropist who leads with a service-first framework. During Hurricane Katrina, he volunteered with a team that han

#157: We're back with another Ask Paula - Real Estate Edition of the show! In this episode, we cover down payments, cash flow, investing in condo hotels, building a rental on the side of your own house, selling your properties, and whether it's better to buy actual properties or REITs. Erin asks: Would you ever put 30% down (or more) in order to make a rental property cash flow positive? Avy asks: In 4-5 years, I'd like to have a rental property for diversification and passive income. Is it better to stick with the plan to buy rentals, or should I go into REITs? Additionally, if I want to invest in rentals, where should I look? Rod asks: Could you tell me if investing in condo hotels as a rental property is a good idea? I'm 10 years away from retirement, and I was thinking of buying one in Las Vegas, since I plan to move there when I retire. Being a traditional landlord doesn't appeal to me - I don't want to deal with the hassle of bad tenants or repairs when I'm retired. I'm hoping a condo hotel might

#156: James Clear wanted to start flossing, but he never managed to follow through. Despite his best intentions, his dental floss sat unused in a bathroom drawer. Fortunately, James had learned a thing or two about human behavior and habit formation. As a self-improvement writer, he'd spent hours pouring over scientific data about behavior changes. He decided to apply a few of these concepts to his own quest. First, he placed the floss on the bathroom counter, rather than tucking it inside a drawer. He made the floss visible. Second, he realized he didn't enjoy the tactile sensation of wrapping floss around his fingers, so he replaced it with floss picks. He made the floss more enjoyable. Finally, he decided to floss immediately after brushing his teeth. He used a technique called "habit stacking," in which a new habit is more likely to stick if it's tied, or triggered, by an existing habit like toothbrushing. Thanks to these techniques, James built a flossing habit. He shares these tactics and more in t

#155: How can a schoolteacher dad and stay-at-home mom send their four kids to college? Where should a 23-year-old keep the savings that she’s accumulating to buy a home by the time she’s 27 or 28? What should we know about retirement planning if we have a pension? And should I rollover my 401k from my old employer? Former financial planner Joe Saul-Sehy and I tackle these four questions in this week’s episode. Here are the details. Miguel asks: When I hear friends and coworkers talking about college tuition for their kids, all I can think about is how in the world am I going to send my four kids to college? I think I have a plan - I’d love to hear your opinion. From what I hear, college can be between $20-50k per year. I currently own two houses - one is a rental and one is our personal residence. We’re working on paying those mortgages down in about 7 years. I want my kids to get their basic courses from a community college to save some money, but for the rest I really think that taking a loan will be t