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

#80: Chris, age 30, makes $200,000 per year and saves 50 percent of his income. What accounts should he use in order to maximize his tax benefits? Dee, age 39, is getting tired of apartment living. She found a great neighborhood in which she'd like to own a home, and she's saving for a 20 percent downpayment. But she's nervous about the high cost of home maintenance. How can she deal with this? Chelsea just moved into a new house with her husband. He purchased the house outright, in cash, and she wants to pay him so that she can share in the home's ownership and equity. But she also has student loan and credit card debt. Should she make progress towards all three of these goals (build equity, pay off  student loans, pay off credit cards) at the same time? Or should she prioritize one -- and if so, which one? Charlene is curious: what's so great about Vanguard? Why do Joe and I like the Vanguard Target Date funds so much, as compared to funds from another brokerage? (Note: neither of us have any financial r

#79: When Laura Roeder was 22, she quit her job to become a full-time freelancer. She earned $30,000 in her first year as a freelancer; $60,000 in her second year. Ten years later -- (Laura is now 32) -- her company earns $4 million in annual revenue. (Can I repeat that? Did I bury the lede? *Laura went from making $30,000 per year to owning 100% of a company that earns $4 million per year.* And she did this within a decade. Oh, and she also had a baby.) (Like, whoa.) Laura is the founder and CEO of a software company called Edgar, which provides social media automation for entrepreneurs and small businesses. In this interview, I ask Laura (sophisticated) questions such as "How the f**k did you make the leap from freelancer to multi-million-dollar company owner?" Here are some of the insights that she shares: #1: You have nothing to lose. When Laura quit her job, she conquered her fears by reminding herself: "Hey, worst-case-scenario, I work an hourly retail job for awhile if I can't find any clients

#78: Imagine that you're looking for a rental property. It's a warm Saturday afternoon, and you decide to cruise through a few open houses in the area. Your autonomously-driving electric vehicle pulls into the driveway. Your wifi-enabled contact lenses automatically register the property's details: square footage, year of construction, sales history, tax assessment, price-to-rent ratio, average neighborhood occupancy rates, and multiple cap rate estimates. As you walk through the property, your contact lenses display the digital history of every item -- the furnace, dishwasher, windows -- keeping you up-to-date with the full installation and service history of every home component. Welcome to the future of real estate investing. What's looming on the horizon? How will technology -- including augmented reality and 3D printing -- affect the way we analyze and purchase rental properties? I chat about this topic, and more, in today's podcast episode. This week, I feature another Ask Paula episode, answering

#77: “Have you ever tried to stop-peeing midstream? It’s like trying to put spray cheese back in the can. The damage has been done, and the only thing left to do is try to enjoy yourself.” That’s a quote from a deleted chapter in a book written by (in my opinion) one of the funniest bloggers on the internet, Geraldine DeRuiter. Geraldine is an ‘accidental’ travel writer. Nine years ago, she found herself laid-off from a copywriting job and decided, “screw it, I’m gonna travel.” She’s since visited around 30 countries, and her resulting travel blog, The Everywhereist, describes itself as “an award-winning cry for help.” For more, go to http://affordanything.com/episode77 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#76: This week, my buddy Joe Saul-Sehy joins me to answer another round of listener-submitted questions. A listener from California asks: My husband and I will be inheriting money, which we plan to invest in index funds. We believe that our inheritance will eventually make us financially independent. However, I feel guilt about the fact that this money is unearned. Do you have any thoughts on this? Eric wants to know: Should he stick with a high-deductible health insurance plan if he's starting a family?   Hailey says: I just graduated from college; I'm making $30,000 per year, but I only work 30 hours per week, so I have time to work on side projects. I'm working on two small businesses, and also interested in buying a rental property. Where should I focus my time and dollars? Enjoy! For links and information to the resources mentioned, like Glassdoor.com, Salary.com, and Paula's article: Should You Pay Cash for a Car? -- visit http://affordanything.com/episode76 Learn more about your ad choices. Visi

#75: In her early 40's, Jen lived in a converted garage, buried in credit card debt and scrounging for spare change. She was the type of person who'd join her friends at a restaurant for dinner , order nothing except tap water, and fill up on the complimentary bread basket. She used duct-tape to repair her shoes. Her "splurges" consisted of buying new windshield wipers.   Despite her struggles, Jen believed that pursuing wealth was icky. She'd internalized negative social attitudes towards money, such as: Money isn't important. People are. Rich people are lucky / gross / shallow. You can't make money doing [insert your-dream-here]. You have to attend a good college to make money. Money is out of my reach. It's lonely at the top. Who has that kind of money? He/she is only about the money. Those negative attitudes, Jen says, were holding her back. So she created a more positive script -- such as "I'm good at making money," and "Money is a tool that helps me live my best life." This attitude shift mad

#74: Former financial planner and friend of the show, Joe Saul-Sehy from Stacking Benjamins, joins me to answer the following listener questions: Kicking off today's episode, Nicky asks: I'm young and healthy. My car is old and not-worth-much. And my personal property isn't exactly fancy-pants. Do I *really* need health, auto and property insurance? Or can I drop these insurances and save the money? _______ Next, Shelbi says: I'm 26, recently earned a graduate school diploma, and I'm taking the first steps into my career. I take home $2,600 in monthly income, and my cost-of-living is $1,900 per month. I maintain a $5,500 emergency fund and invest 20% of my income into a Vanguard Target Date Retirement account, with a Roth tax setup. I'll get an employer match after I've spent another year on the job. My employer also contributes $100 per month into my H.S.A. account, which is the only money that I'm putting into that fund. I hold $49,000 in student loans (yikes!!) at 6.8% interest. I pay $400/mo towa

#73: Last January, I went to a party at a trailer park that featured a huge bonfire, a few llamas, and a member of Public Enemy. (I realize that sounds like the setup to a joke. Welcome to my life.) While I was there, I met a former competitive chess player named Steve Gossett. Steve is a Los Angeles-based filmmaker who creates Princess Rap Battle videos for a YouTube channel with more than 1 million subscribers. But that's not why I invited Steve onto the show. I asked him to join me on the podcast to discuss the lessons that chess taught him about money, work and life. On this fascinating episode, Steve and I discuss:  - Opening Theory: At the start of the game, you have a limited selection of moves. Yet you can quickly lose the game if you choose the wrong moves. Don't lose at the outset. - Muddled Midgame: While the first few moves are (relatively) simple, even the experts don't quite understand the complexities of the mid-game. - Gambit: Sometimes, you need to be willing to give up a piece on the

#72: Spaghetti is a major part of my life. I eat it, of course, as many people do. I also spill it all over my pants, despite the fact that I’m 33 and should’ve learned the rules of gravity by now. But most importantly, I use spaghetti as a metaphor for my business. If I’m not sure if something will work or not, but I want to experiment with an idea, I tell myself that I’m just “throwing spaghetti at the wall.” Maybe it’ll stick; maybe it won’t. Either way, I have permission to try, permission to fail, and permission to get pasta stains all over my drywall. This week, I’m starting a new spaghetti-throwing-experiment on the podcast: I’m going to broadcast “Ask Paula” episodes every-other-week, followed by interviews with guests every-other-week. This allows me to handle the awesome volume of questions that are flowing in (which I LOVE), while still enjoying intriguing conversations with fascinating people. This every-other-week thing is just an experiment; I’d love to hear what you think. Do you want more

#71: Roger Whitney is known as the "retirement answer man." "All I think about, all day long, is how to make that [retirement] transition successfully," he says. But he holds a dirty little secret. "I don't believe in retirement. And the most successful clients that I work with ... technically they're retired, but they're still working." Huh? What does that mean? In today's episode, Whitney and I discuss the nuances of 21st-century modern retirement -- and how this ain't nothin' like the traditional retirement that you've been taught to expect. Enjoy! ______ For the "WTF?" -- Vocabulary guide from this episode - visit http://affordanything.com/episode71   Learn more about your ad choices. Visit podcastchoices.com/adchoices

#70: Erin Lowry, author of Broke Millennial, talks about the early childhood scripts that we learn about money. Why is this topic important? Well, if you're a parent, you want to set a good financial example for your child to follow. Giving them the right tools and information about money at an early age, as Erin's parents did, can easily set them on the right path in life. And as 'grown-ups,' many of us have negative scripts around money that we want to unearth and unlearn. Regardless of your specific situation, one thing is true: we often inherit our money mindset from our parents. For better or worse, we unconsciously internalize their actions and thoughts around money, and it shapes how we view and interact with money today. Erin shares the lessons her parents taught her about money in this episode, and discusses the impact it's had on her spending and saving. (Hint: She's always been debt-free and has set the awesome goal of being a millionaire by age 35.) For example, Erin is a natural saver and be

#69: So many Afford Anything listeners have great questions about real estate investing. That's why this episode of Ask Paula is dedicated to answering them. Our first question comes from Ade, who has $25,000 to invest in real estate and lives in the Bay Area. Understandably, he's thinking of investing out-of-state, and wants to know if Atlanta is still a good city to invest in. Where can the best deals be found? Krystina lives and has four rentals in Vermont, but she's sick of the cold. She's thinking of selling the properties and moving elsewhere. She asks: if you had to start over, where would you buy and what type of property would you buy? The next question comes from Kayla, who wants to know how to report rental income on your taxes when you also live in the property. Are there any tax implications to be aware of? Claire is relocating to California, and is curious to know if she's better off renting, or if she should max out her mortgage loan potential and buy a house that has a detached garage she

#68: My buddy Joe Saul-Sehy, host of the Stacking Benjamins podcast, joins me this week for another episode of "Ask Paula (and Joe!)" -- in which we workshop through questions that came from you, the Afford Anything community. This week, Joe and I answer questions such as: - I'm getting a $2,500 tax refund. Should I use this to invest, repay debt, or upgrade my home? - I'm debt-free (except a reasonable mortgage) and maxing out my retirement accounts. What else should I be doing? - I've started savings accounts for my two daughters, ages 3 and 6, so that they can access this money for big-ticket expenses when they're young adults. How should I invest this money? - I'm interested in socially responsible investing. What specific funds should I look at? - What's your opinion of high-dividend ETFs? - What's your opinion of using whole life insurance as a 'creative' wealth-building strategy? Enjoy! -- Paula For more information, visit the show notes at https://affordanything.com/episode68 Learn more about

#67: It's the first Monday of the month, which means it's time to answer questions from the Afford Anything community. Our first question comes from a caller in a tough spot: Her mother-in-law is 66 years old. She's divorced, holds no retirement savings, and will only receive a tiny Social Security check. Her health is worsening, and she'll need to step away from work shortly. The caller wants to help her mother-in-law ... but how? Our second question comes from Erin, a listener who's moving to California and needs to buy a car. She's new to the world of car-buying, and wants to know how she can get a great deal. What red flags should she watch out for? Our third question comes from Hong, a 32-year-old mother of two who's interested in early retirement. She's thinking about saving money in a 401k until she maximizes her employer match, then switching to a Traditional IRA, and then switching back to saving in her 401k. Should she pursue this strategy? How can she maximize her tax advantages? Our fourth que

#66: You know that rare moment when you meet someone with whom you connect *instantly*? I felt that way when I met Emma Pattee, the 26-year-old millionaire and mini-real-estate-mogul who joins me on today's episode. Emma and I share similar stories: we're both young female artists and entrepreneurs who figured out that wealth is a tool for creating the freedom that allows us to live on our own terms. We both hustled harder than words can describe, living and breathing our commitment to breaking free from the trading-time-for-money cycle. We refused to accept the defaults that were handed to us. We viewed our investments as a way to create a more sustainable, meaningful life. We rejected the limiting belief that a creative, meaningful life is somehow more 'pure' when it's lived in scarcity and deprivation. We embraced abundance. We asked "how can I create this?" We viewed every problem as inherently solve-able. We took responsibility for everything that crossed our paths. Most critically, we decided that

#65: I've always taken an approach to life that puts my freedom first.  My one and only 9-5 lasted only 3 years. Since then I've been self employed and built financial independence through rental real estate. And while most see this podcast as being about money, it's really about a philosophy around life that is disguised as a finance blog and podcast. Today I get real about this whole money thing. I hope you follow along the mental journey with me. For more information, visit the show notes at https://affordanything.com/episode65 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#64: Your potential is unlimited. I realize that's the type of cliche that you normally find embossed in cursive script on the side of coffee mugs. It's trite and impersonal and overused. But it's also true. Your potential to earn and grow is limitless. But it's not free. You need to invest time and money into developing your potential. Your time and money are limited, though, and you could also choose to invest in market-based assets, like stocks, bonds or real estate. How do you make that decision? Are you going to invest in yourself? Or the market? Or both -- and in what proportion? How do you make these choices? When you're buying a few shares of a total stock market index fund, you have a generally clear idea of what you're getting. You've seen the historic returns. You can predict, to a reasonable degree, the consequences of that investment over a multi-decade span. But when you're investing in yourself -- e.g. learning a new skill, developing a side business, or taking a class -- you can't rel

#63: It's the first Monday of the month, and you know what that means - another Ask Paula episode. Our first question comes from Richard, who wants to know if he should focus on creating a travel fund or building passive income through real estate. What did I do, and how did I manage to come back from my world travels and start building a real estate portfolio only a few years later? The next question comes from Andrew. He's contemplating purchasing two houses on the cul-de-sac he lives on and then renting them out. He only plans on living in his current house for another five years, at which time he also wants to rent it out. Is he crazy? Would proximity give him an advantage? Jennifer asks the next question. She and her husband owe $150,000 on a rental property in Portland, OR that's worth $350,000. Should they sell the house and buy more properties? What would I do with the equity in the property?   Find more resources and Ask Paula episodes at http://podcast.affordanything.com/tag/ask-paula   Learn

#62: Joe Saul-Sehy, a former financial advisor and host of the Stacking Benjamins podcast, joins me to answer your questions in this bonus episode of Ask Paula. Joe and I are goofballs; we tell PG-13 dirty jokes; we disagree on several answers, and we have a grand 'ol time. Hopefully you'll learn something, and you'll probably end up laughing along the way. For a full list of questions and more about today’s episode, visit http://affordanything.com/episode62 Enjoy! Learn more about your ad choices. Visit podcastchoices.com/adchoices

#61: Even though John wasn't never an entrepreneur at heart -- even though he didn't (yet) self-identify as an entrepreneur -- he decided to throw himself, full-force, into the one and only business idea he'd ever had. Listen to John's story, in his own words, as he describes his journey from a small-town college kid to a successful 7-figure business owner. For resources mentioned in this episode, go to http://affordanything.com/episode61 Learn more about your ad choices. Visit podcastchoices.com/adchoices