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

#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

#60: Andrew Hallam grew a million-dollar investment portfolio on a schoolteacher's salary by his mid-30's. In his bestselling book, Millionaire Teacher, he describes these nine lessons in detail. He shares these nine rules on this podcast, and his ideas are so substantive that -- for the first time -- I decided to release his interview as a two-part series. In last week's episode, Andrew shared the first three rules of building wealth. This week, Andrew dives into the final six rules that can turn middle-class people into millionaires. Here's a sneak peek:     •    #1: Learn how to think and spend like a millionaire.     •    #2: Start investing early. Time is your greatest investment ally.     •    #3: Choose low-cost index funds. Small fees pack big punches.     •    #4: Understand your inner psychology. Conquer the enemy in the mirror.     •    #5: Learn how to build a balanced, responsible portfolio.     •    #6: Create an indexed account, no matter where you live.     •    #7: Don't resign your

#59: By his mid-30's, Andrew Hallam became a millionaire on a teacher's salary. He began by investing $100 a month upon advice given by a mechanic. Then he began saving nearly half his $28,000 teacher’s salary. Andrew rode a bicycle 35 miles to work, found ways to avoid paying rent, and regularly ate pasta and potatoes as well as clams he picked himself for added protein. In today's interview, Andrew shares that story. Find more comprehensive details at http://affordanything.com/episode59 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#58: Ashley is a single mom saving diligently for her 2-year-old son. What alternatives are there to 529s and brokerage accounts? Julie and her husband invest quarterly. Should she try buying European equities when they are much cheaper due to Brexit? Nicholas and his wife make too much money for a Roth IRA. Should hey do a backdoor Roth? Melissa has money to save, invest, or pay down rentals. What’s her best option?   Find more in the show notes at http://affordanything.com/episode58 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#57: Philip Taylor, aka PT, is one of the most well-connected guys in the personal finance world. He’s spent the past half-dozen years building tight relationships with some of the most influential authors and speakers in this space. Today he shares his top five money lessons learned over the past decade. PT shared several tactical tips, including:     •    Buy term life insurance, rather than whole life.     •    Focus on low-cost investing, such as passively-managed index funds.     •    Automate your savings.     •    Focus on income growth.     •    View frugality as a discipline. It’s not a means to an end; it’s a lifestyle and a core value. For a full explanation of PT’s 5 takeaways, visit http://affordanything.com/episode57 Learn more about your ad choices. Visit podcastchoices.com/adchoices

#56: Former professional Poker player Billy Murphy has an intriguing story. He achieved financial independence at age 29, and he did this by applying a concept known as "expected value" to his online businesses. In this episode, I chat with Billy about how expected value is more than just a formula; it’s a framework for how to evaluate your options; how to assess risk, reward, probability, and variance. Let's back up a little. What is expected value? It’s the sum of all possible values for a variable, with each value multiplied by its probability of occurrence. “Whaaaa? What does that mean?” Here’s a simple example:   Imagine that you have a full-time job. You’ve also built a side business that’s earning $20,000 per year. You’re trying to decide whether to stay in your full-time job vs. quit your job and focus on growing your side hustle into a full-time business. You ask your two best friends for their opinion. One says, “that’s risky! What if you fail?” The other says, “you could become a millionaire

#55: Scott Alan Turner used to be a money moron. (In his words.) He traded a Jeep for a Porsche in his 20s, purchased a 3,000 sq. ft. house with two mortgages, and bought luxury furniture on credit. The Porsche cost him $800 per month. The house cost $200,000. The furniture? Who knows.
 Scott didn't have a budget and never tracked his spending. He only knew that he could afford the monthly payments on these luxuries ... until one day he realized his mortgage was due in a few weeks. And his bank account was rather empty. And he didn't have an emergency fund. Oops. Scott realized he was drowning in debt. So he decided to make a change. He sold the Porsche and paid $6,500 cash for a truck. He paid off his credit card. He aggressively attacked the mortgage on his house. Step-by-step, he made strides toward improving his financial future. After listening to Clark Howard on the radio, he realized it was important to free his money from the grip of debt and put it toward savings and retirement. Once he got

#54: It's the first Monday of the month, which means I'm fielding questions from the audience. We start with a question from Nicole. She's a new listener, and she's stuck in a confusing situation. You see, Nicole is self-employed. She'd like to save a percentage of her income -- but she doesn't get regular paychecks. How can she automate her savings, when she doesn't know how much she'll make each month? She asks a second question, as well. Nicole has $15,000 in savings and wants to buy her first rental property. However, she's intimidated by the unknown market. What should her first steps be? Next, we move to a question from podcast listener David. Should he invest his emergency fund? David is contemplating putting his emergency savings in the Vanguard Immediate-Term Investment Grade Fund (VFICX). Is this a good idea? Saul, another podcast listener interested in real estate investing, recently sold his home and has a decent chunk of change. Should he buy a 3 bed / 2 bath townhome with a small commerc

#53: This episode is a little different. Instead of interviewing a guest, this podcast episode is a recording of a recent talk I gave in Equador. The audience wanted to know more about the context surrounding the decisions I've made regarding business, investing, and money. In other words, why I've only spent three years of my life in a 9-5 job, and why I've dedicated so much of my time to travel. There is a lot of real estate talk as I take Q&A from the audience, but the idea behind releasing this talk is for you to see how any investment can help you design your life around your values. Money and investments are just tools that you can use to craft a certain lifestyle. Here are some of the highlights from the talk: •    How I was introduced to the concept of freelancing, and how it helped me quit my job and buy real estate •    My real estate investing strategy in a nutshell - buy what no one else wants to buy •    The risk of being too excessive with renovations as an investor, and how I've managed r

#52: Imagine transitioning from making $8.50 per hour and sharing a crammed apartment with 5 people, to becoming a six-figure business owner doing what you love.   That's the journey that Julia Kelly, caricature artist and founder of JK Expressions, took.   Sounds great, right?   Well, as they say, more money = more problems.   When Julia earned $25,000 - $30,000 per year, she had fantastic money management skills. She had no debt and plenty of savings.   But when her business started making six figures, she began ignoring her finances, stopped saving money .... and racked up thousands in personal credit card debt.   Why?   Some of us write this off as life getting more expensive as we get older, but it's actually a classic case of lifestyle inflation -- when you make more, you spend more.   After Julia began earning six figures, she decided she was no longer happy with $12 haircuts from Supercuts. She happily splurged for $75 salon style cuts instead.   She started paying for convenience. One-click Amazon or