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

#110: Happy New Years! We're kicking off this year on a bright and cheerful note -- with a conversation about the impending recession! Yay! The U.S. stock market is at a peak, continuing its 9-year bull run. The markets have been rising since March 2009 without any major corrections or pullbacks. We are living in one of the longest periods of economic expansion in our nation's market history. That's worrisome. Speculators with short memories are popping champagne corks thinking the good times will last forever, while those of us who are students of history know that what goes up must come down. Trying to guess WHEN the next recession will happen is a waste of time. A more efficient use of time is to prepare ourselves such that when it does happen -- whenever that may be -- we are ready. How can we prepare for a recession? That's one of the four topics I cover in today's episode. Specifically, here's what we chat about in this first episode of 2018: Thayne asks: 1) Broadly -- What are the best investme

#109: Happy holidays! I thought it would be nice to wrap up this year with a lighthearted holiday episode about the importance of keeping a positive attitude. Will Bowen, my guest on the final episode of 2017 (wow!), started a campaign to motivate people to complain less. He noticed that many people in his community said they wanted more stuff -- more possessions -- but they complained about what they already had. So he wondered if perhaps people could find happiness not by purchasing more, but rather by complaining less. In this episode, he discusses how we can move towards a complaint-free lifestyle. I thought this would be a cheerful, light interview to round out this year. Enjoy, and happy holidays! - Paula   For more information, visit the show notes at http://affordanything.com/episode109 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#108: Former financial advisor Joe Saul-Sehy joins me to answer audience questions about investing strategies, early retirement, and tax planning. Whitnee calls in with this: I'm 31, and my husband and I save half of our combined income. We've maxed out our H.S.A. accounts and we're getting an employer match in our 401k. We have $80,000 stashed as cash in a checking or low-yield savings account. We're paying nearly $2,000 per month for insurance policies, most of which is a whole life insurance policy. We have a rental property that cash flows $210 per month; we pocket $150 and use the other $60 as an extra principal payment. What should we do differently? How can we learn about investing? What funds should we focus on? Should we sell our rental property and invest the proceeds, or hold onto this? If we hold, should we focus on repaying the mortgage as quickly as possible? Kim asks about the 4 percent withdrawal rule in early retirement. When you're calculating your savings goal, do you need to account f

#107: Scott Harrison spent 10 years as a New York City nightclub promoter, partying until sunrise every morning and ingesting almost every substance imaginable. But when he was 28, he realized his life lacked meaning. "My tombstone might say, 'here's the guy who got thousands of people drunk,'" Harrison said. Feeling lost, he decided to volunteer for a medical charity in Liberia. Harrison spent the next year-and-a-half in West Africa, where he encountered people with diseases he'd never seen before -- such as cholera, typhoid, dysentery, and fatal cases of diarrhea and dehydration. He smelled the yellow-brown parasitic dirty water that millions of people were drinking. He discovered that unsafe, unclean drinking water is the world's leading cause of death. When he returned to New York City, he couldn't bring himself to sell expensive bottled water at nightclubs anymore. Instead, Harrison moved into a tiny closet and launched a nonprofit, Charity: Water. Today, Charity: Water has funded more than 24,00

#106: How do you search for rental properties out-of-state? Should I offer a lease-option contract to my friends? How can I estimate repair and maintenance costs? And can you deep-dive into bookkeeping and taxes for rental real estate? I tackle these four questions in this episode of Ask Paula - real estate edition.   Saul from Salt Lake City asks: I'm converting the first floor of my home into a two-bedroom, one-bath apartment. My "hacked duplex" will soon be ready for my first tenant. Can you deep-dive into the taxes and accounting? How should I keep records of my expenses, and what should I file?   Terri asks: I'm analyzing real estate deals, but I'm getting stumped about how to estimate the repair, maintenance and capital expenditures. It seems like everyone has a different approach for calculating this. Should I estimate a percentage of the purchase price? A percentage of the rental income? A flat amount per unit? Or something else? How can I estimate costs accurately?   Kirsten from Madison,

#105: A.J. Jacobs is the Editor-at-Large of Esquire Magazine and the New York Times bestselling author of multiple books. His three TED Talks have collectively garnered more than three million views. He describes himself as "a father of three, husband of one, and cousin to millions." And he's probably your cousin. Twice removed. AJ joins me on this episode to chat about motivation, habits, and living life as an experiment. Here are some of the stories we cover: - Why AJ divulged his entire sexual history to actress Scarlett Johansson. - How AJ successfully and frequently changes his behaviors and habits. - AJ's experimental approach to life. - Why the adage "fake it 'til you make it" -- or rather, "fake it 'til you become it" -- is essential for developing habits. - How gratitude at extreme levels can become a mindset game-changer. - How healthy living nearly killed him. - AJ's quest to demonstrate the idea that we're all related -- and throw the world's largest family reunion. Resources Mentioned: A.

#104: This week, I answer 4 questions about quitting a depressing job, learning how to ask probing questions, saving for a downpayment, and more. Edward asks: How can I learn from other people around me? I'm 28, and my wife and I have some money that we'd like to invest. We know people who've had both successes and losses in the investing world, but when I ask them questions, they tend to become a little more private and shy away. How can I encourage them to open up, so that we can learn from them? Sara asks: For the last 2 years, my husband and I have lived on one income and used the other to pay off our student loans. We also saved $40,000 to make a downpayment on a house. We need to move to England for 2 years, and we'll buy a house when we return to the U.S. In the meantime, what should we do with the $40,000 downpayment that we've saved? We'd hate to see the money in a savings account, but it doesn’t seem wise to invest in index funds. What should we do? Britney asks: I’m at a job that I hate. I’d l

#103: On today’s show, I'm sharing this random smattering of lessons on money and life.⠀ ⠀ 1) Simplify everything.⠀ 2) Risk = Probability x Magnitude.⠀ 3) Curate.⠀ 4) Never delay gratification.⠀ 5) Know your net worth, relative to your lifetime earnings.⠀ 6) Don't half-ass anything. (Whole-ass a few things.)⠀ 7) When you're not at work, don't be at work.⠀ 8) Yes, and.⠀ 9) Money can't make you happy, but a lack of money can make you unhappy.⠀ 10) Every conversation about money is really a conversation about values.⠀ 11) The less you try, the better.⠀ 12) Work with your nature, not against it. ⠀ 13) The thing should be its own reward.⠀ 14) Practice radical self-reliance.⠀ 15) Achieve being through doing.⠀ 16) What is stated, happens.⠀  ⠀ I elaborate on each of these in today’s episode. In addition, I’m also sharing my mini-keynote from FinCon on the importance of authenticity and passion in online business.   Enjoy!   You can subscribe to show updates at podcast.affordanything.com -- just

#102: This week, I'm back to answering questions posed by listeners of the podcast. An anonymous listener asks: Should we continue to rent out our home, or should we sell it? We bought a home in California but have since moved to New York and have been renting there. After all expenses on the rental are accounted for, we receive $150/mo in profit. We estimate that even with repairs factored in, we'll still be in the positive. However, my husband thinks it's better to sell the property and invest the profits. I think we're better off keeping the house and having someone else pay the mortgage. Who has the better idea? What would you do?   Jessica asks: My husband and I are about to relocate from the mid-west to Colorado Springs, and we anticipate making $80,000 from the sale of our house. Should we take the proceeds from the sale and put it toward our next home? Or should we put that money in index funds instead? For context, we plan on buying either a duplex or triplex, or doing a fix-and-flip like we

#101: Robin Dreeke is former head of the FBI’s Counterintelligence Behavioral Analysis Program. His primary role, at the time, was to thwart foreign spies and  recruit American spies. That's not an easy task. To accomplish this, Dreeke needed to gain people's trust -- even when they had no reason to trust him. He spent years developing and testing systems on how to develop trust with others in high-stakes situations. Today, he joins us on this podcast to describe The Code of Trust, a set of practices that he developed during his days as a high-ranking counterintelligence expert.   This system is based on 5 simple principles: Suspend Your Ego Be Nonjudgmental Honor Reason Validate Others Be Generous   Tune in to hear him elaborate on each principal, and discuss how this applies to anyone who wants stronger, more trustworthy relationships at work and home. For more information, including links to resources mentioned in this episode, visit http://affordanything.com/episode101  Learn more about yo

#100: Over a year-and-a-half and two million plus downloads later, the Afford Anything podcast has hit another awesome milestone: the 100th episode! To celebrate, I recorded this one live from Ecuador with my good friend Brandon, otherwise known as the Mad FIentist. If you've been a listener since the early days, you may remember Brandon from episode #7. He was the first guest to appear on the podcast, and I'm thrilled to have him back on for round two! In this episode, we focus on life after financial freedom: What projects has Brandon been working on? What are the biggest lessons he's learned from being FI so far? How does he maintain motivation to get things done now that money isn't an issue? What does a typical day look like for Brandon? How Brandon's wife became a FIentist after some initial resistance. Why full-time travel after FI didn't work out for him and more! Enjoy, and thanks for listening! For show notes, go to http://affordanything.com/episode100  Learn more about your ad choices

#99: Thirteen years ago, Joshua Dorkin's friends teased him about starting a website that seemed to have no future. "I would get calls from my buddies who would literally call me on my cell phone [and say] 'Hey Josh, we just walked past a penny on the ground. We were thinking about picking it up and mailing it to you." At the time, Dorkin had just launched BiggerPockets, a then-nascent website about real estate investing. "I was working a full-time job making no money as a teacher," Dorkin says, "... and then [I] quit that job, reliable income, to blindly create this platform for other people. And I was helping other people get rich, and I was broke." Dorkin spent the next 8 years working mostly as a one-man operation as he tried to monetize a fledgling website. "We were struggling and scrapping by on every AdSense check that we could collect," Dorkin says. "The business really wasn't making serious money for probably getting close to a decade." The story has a happy ending. Today, BiggerPockets has gro

#98: How much money should you invest in a side hustle or side business? How do you know if your side hustle idea is viable? What if you want to start 5 or 6 side businesses? Should you lump these together under a common business umbrella? Or should you separate them out? These are the questions about side hustles -- asked by listeners Adalia and Brionna -- that I answer in today's episode. My friend Joe Saul-Sehy from the Stacking Benjamins podcast joins me to chime in with his views on building side businesses, as well. Joe and I also answer two non-side-business-related questions, as well. Skye asks: -- You talk about saving 50 percent of your income. What exactly does this mean? Steph asks: -- I have $10,000 in credit card debt and $48,000 in student loans at a 5 percent interest rate. I have a $1,000 emergency fund and $32,000 in retirement funds. My dad is willing to give me money to repay my student loans; should I accept this? And if so, should I put this money towards student loans or retirem

There are more heroes than villains in this world. We have seen a tremendous outpouring of love and support today. Please support the cause that's calling you, whether it's supporting the victims of the Las Vegas shootings, or disaster relief in Puerto Rico, or ongoing humanitarian crises that don't make headlines. Please support the victims of the Las Vegas massacre at https://www.gofundme.com/dr2ks2-las-vegas-victims-fund Learn more about your ad choices. Visit podcastchoices.com/adchoices

#97: How can you be awesome at your job? That's the question that today's guest, Pete Mockaitis, and I tackle on the latest Afford Anything podcast episode. Pete hosts one of iTunes' top 10 career podcasts, called -- appropriately -- How to Be Awesome at Your Job. In typical nerd fashion, I launch our interview by asking him: "What is the metric by which 'awesome' is determined?" Here are a few other questions that I hurl his way: How to Get a Raise: Imagine that you enjoy your job; you don't want to quit. But they're not paying you what you're worth. You've asked for a raise, several times, and they've said no. What do you do? Angle for a Promotion? Or Focus on a Side Hustle? Let's assume that you're employed full-time, and your goal is to make more money. What's more effective: [Option 1] Focus on your full-time profession, putting in the extra hours to angle for a promotion? -- OR - [Option 2] Be an average employee and focus your excess time and energy on building a side hustle? Tough it Out, Then

#96: Today I tackle 4 real estate questions that come from the listeners. Chris, age 25, says: Over the next 30 years, I'd like to acquire 15 rental properties. Then, at age 55, my wife and I can retire and travel. To begin, I'd like to buy a duplex, live in one unit and rent the other on Airbnb. Once I gain some equity and save enough for another downpayment, I'd like to purchase another duplex, move in, and repeat this process. However, I'm reluctant to get started for one reason. There's a decent chance that I'll need to move out-of-state within about a year or two. I don't want to be an out-of-town Airbnb host. Should I follow this plan, even though there's a good chance I might move away soon? __ The next caller, who remains anonymous, says: I love your rental property income reports; they give me a great understanding of your numbers. But you have economies of scale on your side. Your payments to your accountant, attorney, bookkeeping software, etc., are spread out across 7 rental units. When

#95: J. David Stein used to manage billions of dollars. He retired at age 46. Now that he's retired, he faces a different challenge: How should he invest his own money? What investing philosophy should he follow in his own life? And what can we learn from that? Stein, who now hosts a podcast called Money for the Rest of Us, joins me on today's show to talk about his big-picture investing ideas. For a list of my takeaways, go to http://affordanything.com/episode95 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#94: Early retirement? Yes please. This week, I answer questions from the audience community around early retirement planning, health savings and debt pay-off. I'm interested in early retirement. How can I avoid early withdrawal penalties? How does early retirement impact the 4 Percent Rule? Should I use an HRA or an HSA? How do I open a Roth IRA? If you’re into early retirement, don’t miss today’s episode. For complete resources and show notes, go to http://affordanything.com/episode94 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#93: Do you enjoy spending time alone? Does your inner monologue chatter constantly? When you were a student, did you sometimes stay quiet even when you knew the correct answer? Do you avoid confrontation? Does small talk bore you? Have people told you that you're "too intense" or that you "get deep quickly?" Do you live inside your head? Do people see you as a good listener? Do you rarely interrupt others? Are you better at writing thoughts than speaking them? Are you good at focusing for long periods on tasks that you're really interested in, but totally checked out of tasks that bore you or that feel superficial? If so, you might be an introvert. And today's episode might be for you. If you'd like to learn how to thrive in any pursuit -- like starting a business, traveling the world or becoming an investor -- tune in to learn how to use your natural tendencies to your advantage. For more information, including links to resources mentioned in this episode, go to http://affordanything.com/episode93

#92: If you're interested in real estate investing, and if you've wondered how to assemble an all-star team, today's episode is for you. I'm hosting another edition of Ask Paula, in which I tackle three audience-submitted questions about building a team as a real estate investor. Salome from Cincinnati asks: Who are the people I'll need on my real estate team? How much will I spend in paying them? And how can I find them? Doug from Louisiana asks: I've saved $20,000 as the downpayment on a rental property. Should I use this money? Or should I look for a loan that can cover a larger chunk of the financing? Also, how should I look for a tenant? Should I handle this myself, or hire a property manager? Patricia from California asks: I live in Bay Area. I cannot buy a house here. I want to buy a rental property in Baton Rouge, Louisiana, and I've identified the specific property/neighborhood in which I want to invest. How can I start assembling a team from out-of-state? For a full list of resources from this