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#135: Ask Paula - How Can I Get a Downpayment for a Rental Property?
Time to talk about houses! I answer your questions about rental property investing in this week's episode.
Our first question comes from James, age 25. He lives in Florida, where he bought a $130,000, 3-bedroom, 2-bath condominium in the Class B range as his primary residence. He'd like to buy a second home and rent out his current home.
He has $4,000 in cash and is eligible to take out $5,000 as a home equity line of credit. He makes $41,000 per year, after taxes. He'd like to buy one property a year.
What funding options can he look into? If he had good credit, can he bypass the downpayment wall? What general advice would I offer to someone in his situation?
Here's a short summary of what I tell James:
1. Keep a personal emergency fund.
The next question comes from Berlinda. She works in a job she loves, with a great company, chill manager and fantastic team. She's signed a two-year contract, and she's six months into that term.
She lives in metropolitan Chicago, but her boyfriend lives in New York. She's concerned that if she moves there, she might not find a job that she loves quite as much.
She bought a duplex, and now owns a total of three rental units. She needs to upgrade these units. She projects that she'll need 14 rental units before she can live on the income. How can she scale her rental properties to the point at which she can live on their income?
The third question comes from Katie from Mississippi. She started reading the Afford Anything blog in 2015, after she bought her first rental property. She now owns two rentals. She bought the first for $77,000 (purchase + initial repairs) and it rents for $975, and the other for $80,000 (purchase + initial repairs) and it rents for $900. After the PITI mortgage, they collect $603 per month, or $7,236 per year. Their operating expenses have consumed this amount, and in some years their operating costs exceed their income. What's going wrong?
The final question comes from Ben. He and a business partner owns a multi-unit rental property, which they purchased two years ago. His business partner lives in one of the three units; the total income is $2200 from two of the three units (plus the partner lives in one unit for free). Their mortgage is $1475, plus $120 for insurance.
Ben would like to get out of the deal, but he's not sure how. He'd like to refinance the property to get his name off the mortgage, either by selling his share to his business partner or by finding another partner to replace him within the deal. What should be do?
I answer these four questions in today's episode. Enjoy!
For more information, visit the show notes at http://affordanything.com/episode135
|Jun 18, 2018|
#134: How Radical Curiosity Leads to Innovation in Life and Work - with Shane Snow, founder of Contently
We often peek inside the world of business to look for lessons about how to simplify, optimize and innovate.
But what can we learn when we examine world-class people who are hacking the system in any field -- including sports, politics and music?
What can we learn when we're radically curious about everything? And how can we apply this knowledge to helping us lead more deliberate, curated lives?
Today, we tap Shane Snow's brain for answers.
Shane Snow is a co-founder of Contently, a company that matches freelancers with publishers. But we're not going to talk about that today. We're going to explore bigger themes.
Because Shane isn't just a tech entrepreneur. He's also an award-winning journalist, which is another way of saying that he's an inquisitive person who lives in the world of storytelling and big ideas.
His first book, SmartCuts, explores how people avoid climbing the normative career ladder. It showcases people across a variety of industries who hack the ladder, often by making unconventional lateral moves. And that is exactly the kind of thinking that appeals to anyone building financial independence, and trying to design a meaningful, autonomous and unconventional living.
His latest book, Dream Teams, explores what it takes for a group of people to come together to create something amazing. How can the whole be greater than the sum of its parts. And he looks across industries, at everything from hockey teams to businesses and beyond, to find the universal threads inside these stories.
A few accolades before we begin: GQ Magazine described Shane's work as "insanely addicting," and The New York Times refers to Shane as a "wunderkind." (I had to Google that term -- apparently, it refers to someone who achieves great success at a young age.) He has also, somehow, appeared on Gossip Girl and beat Super Mario 3.
Let's find out what Shane has to say about innovation, curiosity, teamwork, and hacking the system. Oh yes, and kangaroos.
For more information, visit the show notes at http://affordanything.com/episode134
|Jun 11, 2018|
#133: Ask Paula and Joe -- How to Give More to Charity While Also Building Financial Independence
Andy from Michigan loved the episode with charity:water founder Scott Harrison. After the episode, he and his 6-year-old daughter started watching videos about charity:water, and now they're both inspired to give.
Andy's question is on the topic of giving. His is to reach financial independence within 5 to 10 years. He and his wife are debt-free, including mortgage-free, and their retirement accounts are well-fueled. Now they're working on building passive income. In the meantime, though, they'd like to add a bigger charitable slice to their budget. He's not an overly religious guy, but he feels a calling to make more charitable donations than he does. What advice could we offer about how to boost his giving?
JR's wife, before they got married, purchased two timeshares at a 17.9 percent interest rate. When the couple met, and she confessed, they immediately paid off the debt. They're now paying $160 per month in timeshare fees. JR is trying to figure out how to get rid of their timeshare, but he can't find any good options. How can he get rid of this?
Angela's husband is turning 50, and she is 43. They're on-track to have $1 million in investments within 7 years. They have two rental properties plus a primary residence, all of which will be paid off in around 7 years, as well. They're active and healthy, but they know this can change quickly. What type of long-term care insurance do they need?
Joelle works in the public sector. She has a 457(b) retirement account. How does this differ from a 401(k)? She plans to career-change in the next few years, and she's considering whether to keep her funds inside of her 457(b) or rollover her funds into an IRA. What are the pro's and con's of both?
Ines from Portugal wants to start a podcast about financial independence, early retirement and real estate investing, specifically for people who live in Europe. The issues that affect people in Europe are different than those that impact people in the U.S., and she sees a need within the marketplace. What advice would I offer to anyone who wants to start a podcast in this niche?
For more information, visit the show notes at http://affordanything.com/episode133
|Jun 04, 2018|
#132: Ask Paula - I'm Six Years Away From Financial Independence, But I Want to Quit Now
BONUS EPISODE!! On the first Friday of the month for the remainder of the year, I'm rolling out an additional bonus episode.
As you know, this podcast airs weekly on Mondays. I'm thinking about maybe -- MAYBE -- expanding the podcast to twice-a-week. Maybe.
But before I make such a big commitment, I figured I'd test the waters by producing *one* extra episode per month.
I'll release this on the first Friday of every month for the rest of 2018.
Today's episode is the June 2018 First Friday Bonus Episode, in which I answer three questions from the Afford Anything community. Enjoy!
Cameron accepted a job in the Middle East, where he earns 60 percent more than he could make at a comparable job in the U.S. He also gets free health care and 30 vacation days annually, which gives him time to travel with his wife and four kids. And thanks to his income and benefits, he and his family are on-track to reach financial independence in six years.
The problem? He's just not that into his job. He'd like to pursue something more interesting ... he's just not sure what. And since he doesn't know what's next, he's worried that he might be running *away* from something rather than running *into* something else.
Should he tough out the next six years? Or should he quit, even if that will delay his journey to financial independence?
Hailey is 22, and she bought her first home last year. She bought a condo for $103,000 with a 3 percent downpayment and a 30-year, fixed-rate mortgage at 4.5 percent. Her condo was in mediocre shape at the time, so she's spent the past year renovating the space -- such as replacing the flooring and getting rid of the popcorn ceilings.
Her neighbor recently sold his condo for $120,000, so Hailey is reasonably sure that -- between the comparable sale and the improvements that she's made -- her condo could appraise for at least that much.
She'd like to get an appraisal, so that she can get rid of her $60 monthly PMI payment. But an appraisal costs between $660 to $850, and she's only planning to live in the condo for another year. She thinks she'll keep the condo for around three more years.
Should she get an appraisal? Are there any red flags or drawbacks to doing this?
Danica called to say "congratulations!" on the 10-year anniversary of quitting my job. She's curious: how did I reach financial independence?
I answer these three questions in today's First Friday Bonus Episode. Enjoy!
For links to resources mentioned in this episode, visit http://affordanything.com/episode132
|Jun 01, 2018|
#131: How We Slashed Our Costs 70 Percent and Gained Happiness -- with Scott Rieckens
Scott Rieckens and his wife Taylor enjoyed a classic Southern California lifestyle.
They lived near a gorgeous beach in sunny San Diego. They frequently dined at sushi restaurants. They drove a BMW.
But after the birth of their daughter, everything changed. Taylor, an intelligent, career-driven, independent woman, suddenly didn't want to spend any time away from her new baby girl.
And Scott had no idea what to do. Their luxury lifestyle depended on dual incomes.
At first, he tried to come up with a million-dollar idea. If he could just create a wildly successful business, he thought, he could fix this problem. He started binge-listening to podcasts, trying to figure out how to pull in seven figures, fast.
Then he discovered the financial independence movement. And suddenly everything made a lot more sense.
Scott realized that if they gave up their consumption habits -- if they moved to an area with a lower cost-of-living, drove less expensive vehicles, or maybe even lived in an RV for awhile -- they could enjoy the life they wanted. They could trade luxury labels for time-freedom.
He crunched a few numbers and realized that they could reduce their spending by 70 percent. But it would require HUGE changes, including an out-of-state move.
He wondered how to suggest this idea to his wife.
What did Scott say? How did Taylor come on-board?
And (spoiler alert!) ... how did they get so enthusiastic about financial independence that they decided to create a documentary about their journey into this lifestyle?
Find out in today's episode.
|May 28, 2018|
#130: Ask Paula - Should I Sell Stocks to Buy a Rental Property
Anna and Dave want to get married ... eventually. But they want to buy a rental property together first. How should they approach this from a paperwork/legal structure standpoint? Note: They're thinking about having one partner purchase the home, with the other partner acting as a lender (with proper paperwork in place). Would this be a wise approach? Fred lives in Saskatchewan, Canada and owns two duplexes. He's thinking of buying rental properties in the U.S., and he has 4 questions: - What requirements or criteria do you establish ahead of time? For example, do you look for a minimum cap rate? Or a specific type of property? - When you're looking out-of-state, what steps do you take to identify a community? How about the type of property? - What market research do you undertake? - How would you caution an international investor who wants to start investing in U.S. properties? Jordana wants to build financial independence. She's thinking about selling off stocks and index funds in order to buy her first rental property. Is this a good idea? Cheryl lives in Texas, where property taxes are astronomical. How should she factor this into her rental property decisions? Rachel is worried about bed begs. (Yuck!) Have I dealt with these in any of my rental properties? How do I protect against pests, termites and roaches? I tackle these five questions in today's episode, which is dedicated to rental property investing. Enjoy! (And P.S. -- If you're not interested in rental investing, don't worry! Check out last week's episode about debt payoff with Laura Adams, or the previous week's episode, in which Joe Saul-Sehy and I answer a smattering of general personal finance questions. Have fun!) ____ For more information, visit the show notes at http://affordanything.com/episode130
|May 21, 2018|
#129: How I Paid Off Thousands in Credit Card Debt - with Laura Adams, from Money Girl Podcast
Laura Adams grew up in an upper-middle-class family in South Carolina, and her parents supported her through college. She attended her top-choice school, met her husband while they were still students, and enjoyed a charmed life.
When she graduated, she continued to live at a lifestyle to which she felt accustomed. She rented a beautiful apartment. She took vacations. When she felt lonely, she comforted herself with shopping sprees.
Unfortunately, her spending habits weren't aligned with her meager post-collegiate, entry-level income. Laura quickly found herself buried under thousands of dollars of credit card debt.
She began feeling anxious about the debt. Fortunately, Laura channeled that anxiety into action.
She cut back on discretionary spending. She watched her monthly mortgage payments fall. She focused on ways to earn more.
Every time she'd free a small chunk of money -- a hundred here, a hundred there -- she made an extra payment on her credit card balance. Eventually, Laura wiped out her debts.
She decided to become a "serious student" of finance. She returned to school for an MBA, where she noticed that many of her classmates were intelligent, hardworking students who were superb at managing corporate balance sheets, but terrible at managing their own personal finances.
She decided to spend her life solving this problem.
In 2006, she began writing about personal finance; in 2007, she started a personal finance podcast; by 2008, she was invited to join the Quick and Dirty Tips Network as the host of the Money Girl Podcast.
Her podcast on personal finance has been downloaded more than 40 million times. Laura has also authored several books on money management and appeared on more than 1,000 media interviews on NBC, FOX, Bloomberg and more.
How did Laura transition from wearing "financial blinders" to a renowned financial expert?
What advice would she give to anyone who's trying to overcome the "ostrich," head-in-the-sand mindset around their money?
What important money issues are we not talking about enough?
Find out in today's episode.
For resources mentioned in today's episode, go to http://affordanything.com/episode129
|May 14, 2018|
#128: Should I Choose a Roth vs. Traditional IRA and 401k for Early Retirement?
Antonia, 27, wants to retire in 15 years. She's trying to figure out whether to contribute to pre-tax or after-tax retirement accounts.
Most financial advice for 20-somethings that she's encountered says to contribute to after-tax (Roth) retirement accounts. These articles assume that a 27-year-old will continue earning money for the next 30+ years, presumably escalating into higher tax brackets along the way.
By paying taxes upfront, these articles say, you'll enjoy 30+ years of compounding gains, which you'll be able to withdraw tax-exempt.
But what if, like Antonia, you're only 15 years from retirement? Should you stick with Roth tax treatment? Or is there wisdom in making retirement contributions with pre-tax money?
Marisa is young, high-income, and highly risk-tolerant. She'd like to know: what asset allocation would I suggest for a young, risk-tolerant person? And is rebalancing her portfolio necessary, or just a distraction?
Dylan owns his home outright. When he sells it, he'll collect about $100,000 after fees. He also has an additional $100,000 saved in cash.
He'd like to buy a home free-and-clear. What's the best way to approach this? Should he take out a home equity line of credit? A bridge loan? Something else?
Pal lives in the San Francisco Bay Area. He recently bought his first rental property, and he's interested in building passive income and reach financial independence.
He's curious about credit card piggybacking, a side hustle by which a person with a high credit score adds another person with a low credit score as an authorized user to their card.
It seems like a legitimate way to earn extra money. Why aren't more people talking about this? Is there a problem he's overlooking?
Anonymous, 24, says she knows next-to-nothing about investing. She has $6,500 in her Roth IRA, invested in a Washington Mutual Class A mutual fund, which is an actively-managed mutual fund with a front load.
Should she keep her money there? Or should she move it?
Her second question is about her 401k. She contributes 5 percent of her paycheck into a Roth 401k account, from which she invests in a Target Date retirement fund. Her employer doesn't match any contributions.
Her total contributions to both accounts (her Roth 401k and Roth IRA) equal $5,500 per year.
Should she stop contributing to her Roth 401k, so that she can focus her contributions on her Roth IRA?
Jeff and his wife are both 64. When he reads about retirement, the information is ambiguous about Social Security.
Let's say that he has $1 million saved towards retirement, which generates $40,000 annually at the 4 percent rule of thumb. Let's also say that he is eligible for Social Security income of $40,000 per year. Doesn't this mean he could retire on $80,000 per year? If so, then why do "4 percent rule" projections only talk about the portfolio portion?
Former financial advisor Joe Saul-Sehy and I discuss these questions on today's episode. Enjoy!
For links to resources mentioned in this episode, go to http://affordanything.com/episode128
|May 07, 2018|
#127: Four Unhealthy Attitudes Towards Money -- with Dr. Brad Klontz, Financial Therapist
Most people know what they “should” do — save for the future. Spend less than they earn.
Why do so few people follow through?
The answer may have less to do with tactics, and more to do with a person’s deep-seated beliefs, fears and anxieties around money.
Your income, debt, and spending habits aren't merely a function of your actions. They're a reflection of your deep-seated inner psychology around money.
Dr. Brad Klontz, a clinical psychologist and financial planner, joins me on today's show to discuss four "money scripts" that may be harming us. These scripts include:
Money avoidance -- We believe money corrupts or that staying poor is noble, so we self-sabotage our success. Yet at the same time, we also desperately (at the conscious level) want more money in our lives, and feel trapped between these conflicting ideas.
Money worship -- We believe money will solve our problems. And even though we know that the research says that, after a tipping point, it won't, we don't internalize that idea.
Money status -- We believe our net worth is our self-worth, and we overly identify with our investment and bank balances. We may display conspicuous consumption or place a high priority on making the "right" friends.
Money vigilance -- We watch our money carefully, but we may also feel anxious about running out. We may also downplay the amount of money that we have, if we're outperforming our friends, because we feel guilt and imposter syndrome.
In addition to these four "money scripts," we also grapple with innate cognitive biases around how we manage money.
Let’s take a look at loss avoidance, for example, which is a common cognitive bias. Humans are hardwired to fear losing money, far more than we fear missing opportunities for growth. As a result, we might hold onto an investment for longer than we should. Or we might become preoccupied with penny-pinching, at the expense of earning more.
In this episode, Dr. Klontz and I discuss shame, guilt, and how to implement behavioral changes. We talk about how to contextualize our beliefs based on our family history, and how to recognize whether or not our beliefs are limiting or dysfunctional.
Dr. Klontz shares his story about graduating with $100,000 in student loan debt, and feeling anxious about whether or not he could repay this loan. He decided to sell his car, poured the proceeds into tech stocks, and watched this investment disappear. That’s when he started questioning why someone like himself, someone of relative intelligence, would do something so ill-thought-out. And this sparked his lifelong passion in financial psychology.
How can you develop a healthy relationship with money? Find out in today's episode.
For more information, visit the show notes at http://affordanything.com/episode127
|Apr 30, 2018|
#126: Ask Paula - Should I Buy a Beachfront Rental Property?
It's time to answer real estate investing questions!
"But if a recession hits, Florida real estate might tank. The rental rates or occupancy could drop. And we'd be stuck paying the mortgage out-of-pocket, which means we might not be able to retire. Should we take this risk?"
Anonymous from the Northeast asks:
I answer these 5 questions in this episode. Enjoy!
For more information, visit the show notes at http://affordanything.com/episode126
|Apr 23, 2018|
#125: How to Gain a Competitive Edge, with Morgan Housel
Morgan Housel has spent thousands of hours reading about investing.
As a former columnist for the Wall Street Journal and The Motley Fool, he's spent more than a decade reading, interviewing, thinking and writing about how to manage money.
And he's come to a simple conclusion: less is more.
Doing nothing is often the best course of action.
Patience, humility and long-term thinking give individual investors a massive competitive edge over major institutions.
The classic strategy of dollar-cost averaging into index funds is a smart approach.
And ultimately, success is based more on emotions than Excel.
This week, Morgan joins me on the podcast to discuss how to gain a competitive edge as an investor.
For more information, visit the show notes at http://affordanything.com/episode125
|Apr 16, 2018|
#124: Ask Paula and Joe - Should I Sell My Brand-New Car (and Lose $6,000 in 4 Months)?
Former financial planner Joe Saul-Sehy and I answer five questions about investing, retirement, insurance, travel and selling an expensive car.
Eliana is 25 and makes $63,000 per year, plus a little extra from freelance work. She holds $95,000 in cash, $67,000 in retirement investments, and no debt. She doesn't necessarily hold early retirement as a goal, but she'd like the option to access her funds before she's 59-and-a-half.
She asks two questions: First, she's been spreading her money between a Roth IRA, pre-tax 403b, and taxable brokerage account to spread her risk. Should she not contribute so much to the taxable account?
She's also paying $88 per month for a $25,000 life insurance policy for her mother, who is 57 years old. She likes the peace-of-mind that comes with knowing it'll be there to cover funeral expenses, if needed. But she recognizes that there's a huge opportunity cost that comes from paying for such an expensive plan. Should she drop it?
Rudy's employer offers two options: a pension or a retirement plan that essentially functions as an annuity. He would need to contribute 3 percent of his income, regardless of which option he chooses. Which one should he pick?
Nicole lives in Canada. She has a Registered Retirement Savings Plan (RRSP), to which she contributes monthly. She's been with her employer for almost 10 years, but she's about to switch into a new field. She'll have about $45,000 in a pension plan from the employer that she's leaving. What should she do with this money?
Julie is a frugal single mom of two. Four months ago, she purchased a brand-new vehicle for $39,000 and instantly regretted it. She'd like to sell it, but she could only recoup around $33,000 of value. She'd lose $6,000 from a car she's owned for 4 months. Should she take the hit? Or should she hang onto her car, since the damage has already been done?
Finally, an anonymous caller wants to know more about long-term travel. How do you acquire visas that will let you stay in a country for many months? How do you find health insurance with overseas coverage? And what should you do with your snail mail?
We tackle these questions in today's episode. Enjoy!
Articles on buying a car, private party:
How to handle mail while overseas:
|Apr 09, 2018|
#123: Your Money or Your Life -- with Vicki Robin, bestselling author
In the 1970's, a woman named Vicki Robin teamed up with a man named Joe Dominguez.
They came from different backgrounds: she was an Ivy League graduate with a comfortable upbringing; he was raised in Spanish Harlem on "welfare cheese."
But they shared one common thread: a commitment to financial independence, not just as a money management strategy, but as a philosophy on life.
Vicki and Joe became partners in both work and life. They united over a definition of "FI" that expanded beyond paying your bills through your savings and investments. They saw FI as a lifestyle that exists in three dimensions:
1: Financial Intelligence -- Your ability to think about money in an objective, unbiased and non-emotional manner.
2: Financial Integrity -- Your ability to earn and spend in a manner that's consistent with your values, and to stay aware of the impact of your earning/spending choices on yourself, your family and your planet.
3: Financial Independence -- Your ability to break the shackles of paycheck dependence, and ALSO your ability to declare independence from limiting beliefs, fears, and the perception that money will solve your problems.
In 1992, Vicki and Joe co-authored a book called Your Money or Your Life, outlining the FI philosophy. Their book became a mega-bestseller, selling more than one million copies. It landed on the New York Times bestseller list and spent more than 5 years on the BusinessWeek bestseller list.
Oprah Winfrey said: "This is a wonderful book. It can really change your life."
Vicki and Joe devoted the next five years to spreading the message of FI. They appeared on hundreds of TV and radio shows, including Oprah, Good Morning America, and NPR. They were written about in the New York Times, the Wall Street Journal, People Magazine, and Newsweek.
Joe passed away in 1997, and Vicki continued spreading the FI message for another five years, before her cancer diagnosis caused her to take a step back.
Today, Vicki is 72, healthy, and still spreading the FI message. And she'd like to discuss a fourth dimension to FI:
4: Financial Interdepedence -- Your ability to live within a flow of giving and receiving. Interdependence comes from our relationship with our communities, our nation, and the natural world.
In today's podcast episode, Vicki discusses how we can move from financial independence to financial interdependence.
For more, go to http://affordanything.com/session123
|Apr 02, 2018|
#122: Ask Paula - I'd Like to Airbnb a Yurt. Should I?
Tony lives in Chicago, where the returns on rental properties are so-so. He's thinking about investing in Indianapolis, where he consistently finds rental properties with cap rates that are greater than 8 percent. Should he invest locally, so that he can get a primary residence mortgage and keep a closer eye on the space? Or should he invest out-of-state, where the returns are stronger?
Dan lives in California. He's curious: where should he look for rental properties? And when should he buy? Dan holds $150,000 in a savings account and carries a mortgage and car loan with less-than-2-percent interest rates. Should he continue saving, or is he ready to take the plunge?
Isaiah and his friends want to buy a plot of land and build two yurts, complete with internal bathrooms and kitchenettes. They estimate this will cost $120,000 and they can Airbnb the yurts for $100 per night. They'd like this to be a hybrid between an investment and a personal vacation spot. Should they do it?
Evelyn lives in Brooklyn, where she's an Airbnb host within her primary residence. She'd like to sell her home and she expects to clear $1 million in equity. What should she do with this windfall? She holds $100,000 in a SEP-IRA and $10,000 in credit card debt, and she can't qualify for another mortgage.
I tackle these questions on today's episode. Enjoy!
For more information, visit the show notes at http://affordanything.com/episode122
|Mar 26, 2018|
#121: How I Retired at Age 32 - with Liz Thames from Frugalwoods
After Liz Thames graduated from college, she couldn't find a job.
"Nowhere would hire me," Thames says. "I had what I thought was this nice resume, and I sent out over 50 applications. Nowhere called me back."
She took a temporary job at a document-scanning agency, then joined Americorps to serve as a full-time volunteer in a low-income neighborhood in Brooklyn. She lived on a stipend of $10,000 annually, plus food stamps and a transit pass.
She saved $2,000 from her $10,000 stipend, while paying rent in New York.
To say that Thames is a natural saver is an understatement.
Her frugality stayed intact throughout her twenties. She got married, earned a free masters degree and advanced into higher-paying roles. But she and her husband, who was equally frugal, continued saving as much as possible -- at times pushing their savings rate to as high as 70 percent of their income.
When they were 30, they decided to shoot for financial independence. They shared a dream of moving to a rural farm, where they could raise children and spend everyday outdoors.
By age 32, they achieved financial independence. Their investment portfolio is robust enough that they could draw down, in perpetuity, for the rest of their lives.
They rented out their home in Cambridge, quit their office jobs, and moved to a 66-acre farm in Vermont. These days, they live on a combination of their rental income and 'side hustle' income from their blog, Frugalwoods. They have two children.
Today, Liz joins me on the Afford Anything podcast to share the story of how she and her husband achieved financial independence by age 32.
For more information, visit the show notes at http://affordanything.com/episode121
|Mar 19, 2018|
#120: Ask Paula - I'm Retiring at 53. How Will Early Retirement Impact My Social Security?
Roger Whitney, age 51, calls himself The Retirement Answer Man. As a financial planner, investment analyst and podcast host, he focuses on helping Baby Boomers craft a traditional (past-age-60) retirement.
Today, he joins me to answer two questions that come in from our community.
Our first question is from Emily, who says:
“I’m trying to help my mom decide if she should retire.”
“My dad was a CPA and then a CFO, making great money, until 16 years ago when he was diagnosed with early-onset Alzheimers. My mom never took care of their finances before, or knew anything them … she took a few years to get everything in order, but during that time, they burnt through their retirement savings.”
Their house sold in fall 2009, for just enough money to cover their mortgage balance and keep another $75,000 to invest.
Today, Emily’s mom is 64 and wants to retire. She’d like to use her small investment balance to buy a home outright, in cash, so she won’t have to worry about rent or mortgage in retirement.
Emily’s recommendation is that her mom waits until she’s 65 so she gets Medicare. But what if market correction happens? Will they regret not cashing out the investment at the peak?
Our second question is from Yvonne, who asks:
I’m 52, and I’m going to retire at age 53-and-a-half. (Hooray!!)
I’ve been getting notices from Social Security, telling me that “if I keep working” until age 62, or 65, my payment will be such-and-such amount. The key words, of course, are “if I keep working.”
How will an early retirement affect my Social Security benefits?
After taking these two calls, Roger and I chat about his new book, Rock Retirement.
We’re also GIVING AWAY 10 FREE COPIES of Rock Retirement. To enter the contest, go to http://Instagram.com/paulapant, follow the account, find the photo of the book cover, and like and comment on that photo. We’ll pick 10 lucky winners who will receive a free copy of the book in the mail. The contest entry deadline is Sunday, March 18th, 2018 at 5 pm Pacific. Winners will be notified by direct message (DM) on Instagram.
|Mar 12, 2018|
#119: How Much Can I Spend in Retirement? - with Dr. Wade Pfau
Once upon a time, in southern California in 1994, there lived a man named William Bengen.
He read many claims, widespread at the time, that said that since the markets return at least 7-9 percent compounding rates on average, retirees could withdraw and spend 7 percent of their portfolio.
William had a hunch that this was misguided. He decided to prove it.
He looked at 30-year timespans in U.S. history, starting from 1926. The first timespan ranged from 1926 to 1955. The second timespan ranged from 1927 to 1956. And so forth.
He assumed that the retiree held 50 percent stocks, in the form of an S&P 500 Index, and 50 percent bonds, in the form of intermediate-term government bonds.
Then he asked two questions:
First, what was the worst-case scenario? Retiring in 1966. The 16-year timespan from 1966 to 1982 was extra-rough, and experiencing this sequence of returns at the start of retirement made for one sad, sad puppy.
Second, how much could an investor sustainably withdraw from her portfolio during that worst-case scenario? The answer was 4.15 percent in the first year, and 4.15 percent, adjusted for inflation, every subsequent year.
And thus, the 4 percent rule-of-thumb was born.
And we all retired happily ever after.
Or did we? This week's episode features an interview with Dr. Wade Pfau, who offers counterintuitive ideas about retirement income.
Dr. Pfau is a Professor of Retirement Income at The American College of Financial Services.
He holds a Ph.D. in economics from Princeton. He's a chartered financial analyst. He won two awards for "most outstanding contribution" from the Journal of Financial Planning. He won another award for "best paper in retirement planning" from the Academy of Financial Services.
This guy knows his stuff.
And he's ... *cautious* ... about the 4 percent rule of thumb.
What are his concerns?
What can we expect?
And how much money can we spend in retirement -- whether we enjoy a traditional or early retirement?
Find out in today's episode.
For resources mentioned, visit https://affordanything.com/episode119
|Mar 05, 2018|
#118: Ask Paula - How Do I Buy a Foreclosure? - and Other Real Estate Questions
Questions -- I get questions! Today, I’m tackling four queries about real estate investing that come from the audience. Here are the details:
We cover these questions in today’s episode. Enjoy!
|Feb 26, 2018|
#117: How to Avoid Killing Your Spouse (and Should You Get Married in the First Place?) - with Farnoosh Torabi
My friend and financial expert Farnoosh Torabi joins me to answer a relationship & money question from a listener named Janice.⠀⠀
He makes half of her salary. He’s carrying $20,000 in credit card and student loan debt. He has two children from a previous marriage and pays 25 percent of his income to child support. He has zero retirement savings other than his state-funded teachers pension.
They’ve been together for 8 years and engaged for three. But she’s unsure about whether or not she should walk down the aisle.
Should they get married? Is this a smart financial decision?⠀⠀
Farnoosh is the bestselling author of When She Makes More, a book that takes an in-depth look at households in which the woman earns more than the man. She hosted a primetime show on CNBC, makes regular appearances on The Today Show and Good Morning America, and writes a monthly financial column for O, The Oprah Magazine. She’s a former reporter for Money Magazine.
She's the perfect guest for a conversation about relationships, marriage, money, debt, family.⠀
For more information, visit the show notes at http://affordanything.com/episode117
|Feb 19, 2018|
#116: Ask Paula -- Help! I'm Underwater on My Car!
Stacy and her boyfriend would like to downsize to one vehicle. But they're collectively $14,500 underwater on their car loans.
For more information, visit the show notes at http://affordanything.com/episode116
|Feb 12, 2018|
#115: How Dave Ramsey Taught His Kids About Money -- with Rachel Cruze
Rachel Cruze was born the year her father, Dave Ramsey, filed for bankruptcy.
During her childhood, she watched her parents transition from struggling and rebuilding from their bankruptcy, to becoming debt-free multimillionaires.
Her dad went on to become the host of The Dave Ramsey Show, a money management radio show and podcast that reaches more than 12 million people per week. It’s central message is to budget carefully and avoid debt.
Despite their success, the Ramseys committed to raising money-smart kids. They didn’t want their children to become lazy or entitled. Rachel paid for toys as a child. She partially paid for her car as a teenager. She worked throughout college.
Rachel, now in her late 20’s, grew up to become an accomplished speaker and New York Times bestselling author. She and her father co-authored the book Smart Money, Smart Kids, which reached the number one spot on the NYTimes bestseller list. Her latest book, Love Your Life, Not Theirs, is also a mega-bestseller.
In this episode, Rachel describes the lessons she learned about saving, spending, budgeting, debt and giving as the daughter of Dave Ramsey.
We discuss “Instagram envy” -- the act of comparing your life to someone elses’ -- and how to avoid the traps of consumerism and materialism.
Read the full show notes -- and download a FREE gratitude worksheet -- at http://affordanything.com/episode115
|Feb 05, 2018|
#114: Ask Paula -- How Should I Invest $100K in Real Estate?
This week, I answer four questions about real estate investing from the audience.
Joelle asks: I own a home outright on the West Coast. I’m thinking about taking out $100,000 from my home equity, and using this money to buy a rental property. I found a community out east where I can buy a property outright in cash for $100,000 in a good neighborhood. Should I pay cash for one house (via the home equity loan)? Or should I split this $100,000 into multiple down payments on many homes?
Yasin asks: My wife and I are living on one income and investing the other. We save $60,000 per year. We’re looking at duplexes in Minnesota that cost $160,000 to $180,000. Our plan is to purchase a duplex, move into one unit, rent out the other, and aggressively pay off the mortgage in about 1.5 years. We’d move out and repeat this process until we have $7,000 per month in passive income, at which point we’d be financially independent. Should we pursue this plan? Or should are we playing it too safe? Should we buy more properties upfront, rather than waiting for two years between each purchase?
Anonymous asks: I own four rental properties, each of which have an average rent of $1,350 per month. I purchased all of my properties within the past 24 months, and each one has been recently renovated. My goal is to own 20 rental properties. I’d like to make sure that I have adequate cash reserves, in case of emergencies. Each of my properties have insurance with a $5,000 deductible. How much money should I keep in cash reserves? What factors should I consider?
Kim asks: I own one rental property. I recently moved into a single-family home in Scottsdale, Arizona, with the intention to live here for one year and then make this my second rental property. My mortgage is $1,500 per month, and I could collect rent of $2,250 per month – or more, if I Airbnb it. The neighborhood is booming; the housing here is appreciating at an astronomical rate. However, I’m concerned about the longevity of the plumbing in my current home, which was built in 1960s. I may have an expensive repair on the horizon. Here’s my question: Should I hold onto this property, despite the looming repair bills, and turn this into my second rental property? Or should I live in this home for two years and then sell it, cash out, and repay all my student loan and consumer debt? I hold a $60,000 student loan, $7,000 in vehicle loans, and $5,000 on a credit card. My goal to own many cash-flowing properties.
Anonymous asks: A year ago, I relocated to Silicon Valley. I’m thinking about buying a townhouse-condo hybrid. I like the neighborhood and it suits my family’s needs. The property will become a rental in 5-7 years. It’s in a distressed area and could see a lot of potential appreciation. What loan should I consider, given that this property will become a rental within 5-7 years? I’m debating between a 7/1 ARM or a 30-year fixed rate mortgage. Also, should I redirect most of my income to paying off the principal as quickly as possible? There are two schools of thought on this: (1) build equity and use a HELOC to buy another property in 5-7 years, or (2) make only the minimum payments on your mortgage. What do you think?
Tune in for the answers!
|Jan 29, 2018|
#113: How I Run a Six-Figure Business and Host an Airbnb while Traveling the World -- with Natalie Sisson
Natalie Sisson was tired of the corporate world. She wanted freedom, adventure and fulfillment.
In 2008, she quit her job and co-founded a tech company -- but soon she discovered that running a company felt a lot like having a day job.
Two years later, she quit her own company in order to truly strike out on her own.
Since 2010, Natalie has run an online business from her laptop while traveling the globe. She's visited 70 countries, living out of a suitcase while running a lucrative six-figure business.
She also owns investment real estate in Portugal and New Zealand.
In this interview, Natalie and I discuss:
|Jan 22, 2018|
#112: Ask Paula - How to Convince a Spouse to Invest in Low-fee Index Funds?
How can I convince my spouse to invest in low-fee index funds? How should my fiancé and I combine our finances? If I'd like to invest in rental properties, should I also buy stocks?
Former financial planner Joe Saul-Sehy joins me to tackle these audience questions and more.
She's also reluctant about investing the majority of our money in a broad-market index fund like VTSAX. She'd prefer more diversification.
Recently, we met with a major brokerage firm that charges a 1.75 percent management fee. How can I get my wife to see the detrimental effects of choosing this high-fee broker?
Neither of us has ever lived independently before. How should we budget for this, given that we're not sure what expenses to expect?
Also, any tips on how to commingle finances?
However, in a few years, my husband is going to retire. When this happens, we'd like to sell our home, perhaps invest in rental properties, and move either out-of-state or out-of-country.
Our financial and tax situation is about to become a lot more complicated.
I'd like to talk to a financial professional ... but whom should I choose? Should I hire a financial coach? a financial planner? an accountant? an investment advisor? someone else?
We tackle these four questions on today's show. Enjoy!
Article - How a 1% fee could cost $590,000 in retirement savings
Article - The Impact of Investment Costs
Article - Three Methods for Co-Mingling a Couple's Finances
|Jan 15, 2018|
#111: How We Retired at Age 38 and 41 -- with Tanja Hester & Mark Bunge
Tanja Hester and Mark Bunge used to have demanding but fulfilling careers as political and social cause consultants.
While they loved the mission behind their work, they grew tired of the exhausting hours and grueling travel. Their home felt like a weekend crash pad. They had no time or energy to pursue outside passions like skiing, biking and volunteering.
Six years ago, they read a book that changed the course of their lives.
The book, How to Retire Early, set the couple on the path of financial independence. They moved from pricey Los Angeles to the more affordable North Lake Tahoe. They started automatically saving and investing huge chunks of their paycheck. They crafted detailed spreadsheets, plotting precisely how much they'd need to save before they could comfortably quit their jobs.
Today, Tanja and Mark are newly-retired ... at the ages of 38 and 41.
How did they progress towards early retirement so quickly? And what lessons would they share with anyone else who wants to escape the 9-to-5 grind?
Find out in today's episode.
For more information, visit the show notes at http://affordanything.com/episode111
|Jan 08, 2018|
#110: Ask Paula -- Get Ready for the Next Recession
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.
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:
2) Specifically -- What's the most recession-proof type of real estate investment?
Aaron from Portland, Oregon asks:
Anna from the San Francisco Bay Area asks:
|Jan 01, 2018|
#109: How to Create a Complaint-Free World -- with Will Bowen
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!
For more information, visit the show notes at http://affordanything.com/episode109
|Dec 25, 2017|
#108: Ask Paula - I Don't Know How to Invest
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 for the tax implications of this withdrawal? Any tips on how to optimize this?
Here's my follow-up question: How long should my money sit inside of a Traditional IRA before I convert it to a Roth IRA?
|Dec 18, 2017|
#107: How Scott Harrison Brought Clean Water to 7.3 Million People
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 24,000 water projects that have brought safe, clean drinking water to more than 7.3 million people.
That's the good news.
The bad news? There are still 663 million people without access to clean water. That's around double the population of the U.S.
And water-borne diseases kill about 16,000 people each week, almost half of whom are children under age 5.
There's still a long way to go.
Today, Scott joins me on the podcast to talk about how he started and grew a major charitable organization.
- How does a nightclub promoter with zero business experience launch a massive nonprofit organization?
Learn the answers to these questions and more in this excellent episode with Scott Harrison, the founder of Charity: Water.
Charity Water -- Short Film
Charity Water - Projects
World Health Organization - Drinking water fact sheet
|Dec 11, 2017|
#106: Ask Paula - How to Estimate Repair Costs, File Taxes on Rental Income, and More
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?
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, Wisconsin asks:
My husband and I recently moved to Madison, but we've kept our old home in Oshkosh, Wisconsin. The home is worth $120,000, and we have a 15-year note.
Our friends would like to purchase that home, but their credit is bad. They'll need two years to improve their credit situation.
We're considering renting to them through a lease-option contract. Our mortgage is $950 per month; we're thinking of charging them $1,100 - $1,200 per month on a rent-to-own lease. Do you think this is a good idea?
Chrissy from North Vancouver, Canada asks:
I loved your description in Episode 92 about building a team in a different state.
Could you please further flesh out the steps that you use when you're searching for a rental property in a different state?
I tackle these four questions in today's episode. Enjoy!
For more, visit the show notes at http://affordanything.com/episode106
|Dec 04, 2017|
#105: Life as an Experiment -- with A.J. Jacobs
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.
A.J.'s TED Talks:
How Healthy Living Nearly Killed Me
The World's Largest Family Reunion
|Nov 27, 2017|
#104: Ask Paula - How Can I Learn about Money from the People Around Me?
This week, I answer 4 questions about quitting a depressing job, learning how to ask probing questions, saving for a downpayment, and more.
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?
I’m planning to move in with my in-laws, so my cost-of-living will be low. Do you recommend that I start a blog as a side hustle, so that I can pay the bills after I quit my job?
A listener in the Midwest asks:
I bring home $3,800 per month. My rent is $1,150 and my son's preschool is $700 per month. I have $40,000 in retirement savings and a $3,000 emergency fund.
I don’t want to be making rent payments in retirement. Should I take $20,000 from my 401k to make a downpayment on a rental property?
For more, visit the show notes at http://affordanything.com/episode104
|Nov 20, 2017|
#103: Random Smattering of Lessons on Money, Work and Life — plus A Call for Radical Authenticity
On today’s podcast, I'm sharing this random smattering of lessons on money and life.⠀
1) Simplify everything.⠀
2) Risk = Probability x Magnitude.⠀
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.
You can subscribe to show updates at podcast.affordanything.com -- just throw your email address into that big box above-the-fold.
|Nov 13, 2017|
#102: Ask Paula - Should I Sell My Rental Property and Invest the Proceeds in the Market?
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?
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 did with our current home.
How can I find a good real estate agent - especially one who is good with short sales and foreclosures? What are the signs of a good real estate agent?
My husband and I currently own a three-family home (in which we live on the bottom floor), but in light of getting a new job that requires me to commute an hour each way, we are thinking about either converting the three-family home into three condo units and selling them, or buying another house and keeping the three-family home as a rental.
There's another factor to consider, though: the property is located on a peninsula, and with sea levels rising, we don't think it has long-term potential (in terms of equity).
What should we do?
For more, visit the show notes at http://affordanything.com/episode102
|Nov 06, 2017|
#101: The Code of Trust, with Robin Dreeke
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:
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
|Oct 30, 2017|
#100: Life After Financial Freedom, with Brandon - the Mad FIentist
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:
Enjoy, and thanks for listening!
For show notes, go to http://affordanything.com/episode100
|Oct 23, 2017|
#099: How I Grew BiggerPockets From 0 to 870,000 Members - with Joshua Dorkin
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.
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 grown to more than 870,000 members. The podcast has almost 250 episodes and the blog features more than 8,100 articles.
In today's episode, I have a heart-to-heart with BiggerPockets founder Joshua Dorkin about the blood, sweat and tears that's required to start a successful online business. What lessons did he learn along the way? What regrets does he hold? And what advice would he share with other aspiring online entrepreneurs?
We don't talk about real estate investing in today's episode. Instead, Joshua and I focus on the harsh realities of growing an digital empire.
You can find more information in the show notes at http://podcast.affordanything.com/episode99
|Oct 16, 2017|
#098: Ask Paula - The Side Hustle Episode
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 retirement?
We tackle these questions on today's episode.
Links and more resources can be found in the show notes at http://podcast.affordanything.com/episode98
|Oct 09, 2017|
#097: How to Be Awesome at Your Job, with Pete Mockaitis
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 Retire Early? Or Not?: You feel ambivalent about your job, but it pays well. Should you pivot to an alternate career path, even if this causes an income drop? Or should you milk the big paycheck for 10 years, save and invest like crazy during that time, and escape into an early retirement?
What nuggets of wisdom does Pete share in today's episode? Here are six takeaways:
#1: If you want to be awesome at your job, focus on these six areas:
1. Be present.
(We dive deeper into these points -- especially number two! -- in this episode.)
#2: Apply the 80/20 rule to your decisions. Ask yourself:
- What are the 80 percent of great results coming from 20 percent of my efforts?
#3: "Wastefulness comes from inefficient methods in pursuing things."
#4: Invent what people want. Not what you think they should want.
#5: Learn the 2 questions that improve every decision: What must be true for this to be a good decision? How can I test that?
#6: How can you find happiness at work? You'll need to be satisfied with RED: rewards, experience and demands.
Rewards - Your compensation, security, advancement potential, and your pride in the organization and its activities.
Find more at http://affordanything.com/episode97
|Oct 02, 2017|
#096: Ask Paula - Should I Be an Out-of-State Airbnb Host?
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 I start investing, I'll only have one unit.
How well would your worst-performing property fare if it was your *only* property, and you had no other economies of scale?
The third caller, "Anonymous from Orlando," says:
I own my house free-and-clear, and I'd like to buy another one. Should I take out a conventional mortgage on my second home? Should I cash-out refinance the equity in my first home? Or should I open a HELOC?
Finally, our last caller asks:
I'm interested in rental property investing, but I don't want to deal with any hassles. Should I use a turnkey company?
Tune in to find out the answers!
Find resources to things mentioned in this episode at http://affordanything.com/episode96
|Sep 25, 2017|
#095: Money for the Rest of Us, with JD Stein
J. David Stein used to manage billions of dollars. He retired at age 46. Now that he's retired, he faces a different challenge:
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.
|Sep 18, 2017|
#094: Ask Paula - The Early Retirement Episode
Early retirement? Yes please. This week, I answer questions from the audience community around early retirement planning, health savings and debt pay-off.
If you’re into early retirement, don’t miss today’s episode.
For complete resources and show notes, go to http://affordanything.com/episode94
|Sep 11, 2017|
#093: The Secret Lives of Introverts - with Jenn Granneman
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
|Sep 04, 2017|
#092: Ask Paula - How Do I Hire an All-Star Rental Property Team?
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 episode, visit http://affordanything.com/episode92
|Aug 28, 2017|
#091: How to Spend Less, Earn More and Grow the Gap
Grow the gap between your income and your expenses: How to tackle the 4 biggest expenses in the average American household budget.
Also, I share non-obvious tips on how to trim back on these costs.
Paula For more details on this presentation, go to http://affordanything.com/episode91
|Aug 21, 2017|
#090: Ask Paula -- I'm Tired of Paying Rent. Should I Buy a House?
Curious about real estate investing?
I'm rocking the microphone solo on today's episode, tackling the rental property questions that you -- the listeners -- have asked.
Rachel from the Ozarks asks: I'm inspired to start investing in real estate. I live in the Ozarks region, and the cap rates around here are fantastic. However, the online reviews for local property management companies are consistently terrible. What should I do if I can't find a good property manager?
Daan from Malaysia asks: I'm a Dutch national who plans to be a global nomad for the next 10-15 years. I live in Malaysia at the moment, and I plan to continually travel internationally for my work. Many people in Asia are investing in real estate; do you have any recommendations for choosing investments abroad?
A caller who wants to stay anonymous asks: I live in Denver and I'm tired of paying rent. I'd like to buy a house and eventually collect rental income from it, as well. But I'm having trouble saving enough money for a downpayment. Should I just give up? What should I do?
Tom asks: I own land free-and-clear. Should I build on that land? Or should I buy a property that already exists?
Finally, I tell the story of my most recent bout of lifestyle inflation. It involves sleeping in the back of my car. :-)
Enjoy! - Paula
For more information, visit the website at http://affordanything.com/episode90
|Aug 14, 2017|
#089: Imagine You Only Have 10 Years to Live ...
Imagine you’re financially secure. You have enough money to support yourself, your family and pursue your dreams. You’ll need to continue working, but it’s fulfilling work with a reasonable schedule. What would you do with both your time and money?
|Aug 07, 2017|
#088: Ask Paula - When is Lifestyle Inflation a Smart Business Decision?
Former financial planner Joe Saul-Sehy and I answer 4 questions from the Afford Anything community.
|Jul 31, 2017|
#087: Myths about Money - Are Your Ideas Holding You Back?
A week and a half ago, I flew to Portland for the World Domination Summit -- a conference with an admittedly eyebrow-raising title.
|Jul 24, 2017|
#086: Ask Paula - Should I Keep My Properties in an LLC
The real estate questions keep coming in, so today I’m answering questions from three Afford Anything listeners:
|Jul 17, 2017|
#085: How to Make Money without a Job -- with Nick Loper from Side Hustle Nation
Like many people, Nick Loper used to work a full-time job that didn't excite him.
|Jul 10, 2017|
#084: Ask Paula: No, Really, I'm Asking for a Friend! -- How to Crush $500,000 in Debt
This week, I tackle your questions with my good friend, recovering financial planner Joe Saul-Sehy. Here's what we answer:
|Jul 03, 2017|
#083: This is The Toughest Episode I've Created So Far
Hey. It’s time we talked.
I’ve made many tough decisions in my business.
I’ve said “no” to thousands of pitches, turned away countless advertising requests, and made difficult choices about content and tone.
And sometimes I don’t know whether or not I’ve made the right choice.
Today’s podcast episode is a painfully personal one. I open up my mind, explaining exactly how I make decisions about how to lead this online community. I’m frank about the doubts I hold and the choices I’ve questioned in hindsight. I’m blunt about the things I still do not know; the ethical quandaries that plague me.
Today’s episode, perhaps more than any episode I’ve ever done, comes from my heart. I hope you enjoy it.
Have thoughts/concerns/suggestions regarding what I discussed in this episode? Feel free to reach out on the site (http://affordanything.com/episode83), Twitter (@affordanything), Instagram (@paulapant), or YouTube (https://www.youtube.com/affordanything).
Also, note to new listeners: I HIGHLY suggest you don't start with this episode! There's way more valuable content in the interviews and Ask Paula episodes that I've previously published. You can check those past episodes out on iTunes, or on the site: http://podcast.affordanything.com/listen
|Jun 26, 2017|
#082: Ask Paula - How Do You Pick a Rental Property?
Welcome to another Ask Paula episode!
This week, I answer three real estate questions:
#1: What criteria do you use when you’re shopping for an investment property? What qualities make you say, “heck yeah I’m buying this!!” — and what qualities make you say, “No way!”
#2: I enjoy renting my personal home, but I still dream of investing in rental properties. Does it make sense to buy a rental property, even while I’m still a renter myself?
#3: I’m a 45-year-old actress, and my income probably won’t qualify me for conventional bank financing for an investment property. But I already own a property with a lot of equity. Should I tap that in order to buy another rental? Or look for a private loan?
For more Ask Paula episodes, visit http://podcast.affordanything.com/tag/ask-paula
Want your question answered? Leave a message here: http://www.affordanything.com/voicemail
|Jun 19, 2017|
#081: Get Me Out of This Crappy Job! - with Jenny Blake, author of Pivot
Jenny Blake used to have an enviable job.
|Jun 12, 2017|
#080: Joe Says Life Insurance Won’t Make the Headline. But it Did.
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?
|Jun 05, 2017|
#079: How I Bootstrapped a $4 Million Company, with Laura Roeder
When Laura Roeder was 22, she quit her job to become a full-time freelancer.
|May 29, 2017|
#078: Ask Paula (and Will) - How Technology is Changing the Future of Real Estate Investing
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.
|May 22, 2017|
#077: What I've Learned from 9 Years of Nonstop Travel, with Geraldine DeRuiter, The Everywhereist
For show notes, visit http://affordanything.com/episode77
|May 15, 2017|
#076: Ask Paula - How to Handle an Inheritance, Should I Invest in Properties or Start a Business, and More.
This week, my buddy Joe Saul-Sehy joins me to answer another round of listener-submitted questions.
|May 08, 2017|
#075: Jen Sincero says she used to be a "grouchy broke person"
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.
|May 01, 2017|
#074: Ask Paula - How to Repay $50k in Student Loans on a $31k Income, What's the Deal with Bonds, and Do I Really Need Insurance
Former financial planner and friend of the show, Joe Saul-Sehy from Stacking Benjamins, joins me to answer the following listener questions:
Who are you? Please take this 7-question survey: http://affordanything.com/whoareyou
|Apr 24, 2017|
#073: What Chess Taught Me About Making Smarter Life Moves -- with Steve Gossett
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.
|Apr 17, 2017|
#072: Ask Paula -- Should I Loan Money to Friends? Stay Sane While Repaying Debt? ... and More
Spaghetti is a major part of my life.
|Apr 10, 2017|
#071: Can I Retire Yet? - with Roger Whitney, the Retirement Answerman
Roger Whitney is known as the "retirement answer man."
|Apr 03, 2017|
#070: Erin Lowry on Raising Children Who Are Enabled, Not Entitled
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 became frugal at a very young age thanks to her parents being savers.
While that sounds great, she often prioritized earning money to the detriment of her social life. She shares a specific instance where she passed up what turned out to be a night to remember among friends for a babysitting gig that paid $100. These days, she allows for more balance in her budget.
We also discuss:
Find more resources at http://affordanything.com/episode70
|Mar 27, 2017|
#069: Ask Paula - The Real Estate Edition
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.
|Mar 20, 2017|
#068: Ask Paula - How to Invest Your Tax Refund, Save for College, and Avoid Massive Pitfalls
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.
|Mar 13, 2017|
#067: Ask Paula -- How to Care for Aging Parents, Buy a Car, and Organize a Business
It's the first Monday of the month, which means it's time to answer questions from the Afford Anything community.
|Mar 06, 2017|
#066: Take Radical Responsibility for Your Life -- a Breakfast Chat with 26-Year-Old Millionaire Emma Pattee
You know that rare moment when you meet someone with whom you connect *instantly*?
|Feb 27, 2017|
#065: How to Improve Your Relationship with Money
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.
|Feb 20, 2017|
#064: Michael Kitces -- Your Mind is More Powerful Than Money
Your potential is unlimited.
|Feb 13, 2017|
#063: Ask Paula - Travel vs. Passive Income, Proximity in Real Estate Investing and Selling Off Properties
It's the first Monday of the month, and you know what that means - another Ask Paula episode.
Find more resources and Ask Paula episodes at http://podcast.affordanything.com/tag/ask-paula
|Feb 06, 2017|
#062: Ask Paula - Q&A Featuring Special Guest Joe Saul-Sehy from Stacking Benjamins
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
|Jan 30, 2017|
#061: John Lee Dumas - From Small-Town Kid to Multimillionaire Entrepreneur
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
|Jan 23, 2017|
#060: Andrew Hallam (Part Two): The Nine Rules of Wealth You Should Have Learned in School
Andrew Hallam grew a million-dollar investment portfolio on a schoolteacher's salary by his mid-30's.
|Jan 16, 2017|
#059: Andrew Hallam: How I Became a Millionaire on a Teacher's Salary
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.
|Jan 09, 2017|
#058: Ask Paula -- Death, Taxes, Crushing Debt and Moving in with Mom
Ashley is a single mom saving diligently for her 2-year-old son. What alternatives are there to 529s and brokerage accounts?
Find more in the show notes at http://affordanything.com/episode58
|Jan 02, 2017|
#057: Philip Taylor - Top 5 Financial Lessons PT Learned in the Past Decade
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.
|Dec 26, 2016|
#056: Billy Murphy - Expected Value, or What Professional Poker Taught Me About Running a 7-Figure Business
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! Whoa!”
You realize that both of those remarks are fueled by emotion and speculation. You want to make a more informed decision, so you decide to compare the ‘expected value’ (EV) of both options in Year One.
After assessing the market (e.g. studying customer demand, etc.) you determine that in your first year of running the business full-time, under best-case-scenario conditions, you could earn $250,000. There’s a lot of promise within your field; you calculate a one in four chance of this happening.
In worst-case-scenario conditions, you don’t make a dime of additional money; your business stagnates at its current income. There’s a lot of competition within your field; you assess that there’s also a one in four chance of this situation unfolding.
In middle-case-scenario conditions, you’d make around $100,000 per year. This is the most likely outcome, and you give it 50% odds.
What’s the expected value of diving full-time into this business?
EV of biz =
25% chance of earning $250k = $62,500
50% chance of earning $100k = $50,000
25% chance of earning $20k = $5,000
EV = $117,500
Okay, great. Next, what’s the expected value of staying at your current job?
EV of job = Salary + $20,000 in additional income
Of course, this is an over-simplified example, for the sake of illustration. Obviously, the decision gets more complex, because you need to account for future growth of your business — the 5-year outlook, the 10-year outlook — as well as future career growth potential within your 9-to-5 job. You’d also need to assess revenues vs. profit margins, etc., etc.
But this simple example illustrates the concept of using the expected value formula to inform your decision-making. Rather than just saying, “oh, that’s risky!” without any data, you can use EV as a starting point for a conversation about probability and risk.
The point is, when you're making a decision, your emotions and other people's opinions often override any rational thought you might have. Those emotions don't take risk or variance into consideration. Expected value does.
By running the numbers and identifying the worst-, mid-, and best-case scenarios, you can take calculated risks that have a higher likelihood of paying off.
Find out how Billy built a seven-figure business by applying this one incredible rule to his decision making process in this episode.
Find more about Billy Murphy and his podcast, Forever Jobless, in the show notes at http://affordanything.com/session56
|Dec 19, 2016|
#055: From Money Moron to Millionaire, with Scott Alan Turner
Scott Alan Turner used to be a money moron. (In his words.)
|Dec 12, 2016|
#054: Ask Paula - Automating Savings, Starting a Blog, Emergency Funds, Investing in Real Estate Confidently, and More
It's the first Monday of the month, which means I'm fielding questions from the audience.
|Dec 05, 2016|
#053: Live Q&A with Paula on Real Estate and Travel
This episode is a little different.
The audience wanted to know more about the context surrounding the decisions I've made regarding business, investing, and money.
|Nov 28, 2016|
#052: How to Combat Lifestyle Inflation, with Julia Kelly
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.
|Nov 21, 2016|
#051: Six Types of Financial Frenemies, with Mary Beth Storjohann
|Nov 14, 2016|
#050: Ask Paula - Retirement Savings in Your 50's, Starting a Side Hustle, Buying Health Insurance, Home Warranties, and More
|Nov 07, 2016|
#049: Behind-the-Scenes Mastermind Call - with J.D. Roth
If you're a longtime listener, you might remember J.D. Roth, founder of Get Rich Slowly and owner of Money Boss, from Episode 20.
In this previous interview, J.D. shared how he went from being in debt to financially independent.
Today, he's back for a special edition of the podcast.
J.D. and I didn't actually record an interview for this episode. Instead, we hit "record" on one of our private mini-mastermind conversations, where we talk candidly about our businesses.
By listening to this episode, you'll get a behind-the-scenes look at what's going on in the Afford Anything and Money Boss world - without any filters.
|Oct 31, 2016|
#048: How to Overcome Procrastination and Perfectionism, with Stephen Guise
Imagine that your goal is to build a flat stomach and stronger biceps. But deep down, subconsciously, you’re afraid you might fail.
So you procrastinate. “I’ll work out tomorrow,” you tell yourself. “Or next week. Or next year.” As a result, you don’t make progress.
But let’s flip the script. Instead of focusing on the result — your appearance — you focus on the smallest possible action.
You create a new goal: Everyday, you’ll do a single push-up. You’ve designed a goal that cannot fail. The moment you commit to this goal, you drop to the ground and do a push-up. Congratulations. You’ve succeeded today. You repeat this everyday for a week. You build a new habit and new sense of self-identity. You’re the type of person who does daily push-ups.
One day, while executing your single push-up, you figure, “Ah, what the heck,” and pump out a few more. One push-up grows into five, ten, fifteen, twenty. You focus on tiny actions, rather than their potential long-term payoff.
Eventually, you get results. In today's episode, Stephen Guise, author of Mini-Habits, describes how the "one push-up" mentality accelerated his progress faster than a "100-pushup" mentality ever could.
He explains why he decided to start focusing on actions, he shares the technique that he uses to conquer writer's block, and he talks about embracing "imperfectionism."
|Oct 24, 2016|
#047: How to Stop Being Your Own Worst Enemy, with Clark Howard
Today's guest is New York Times bestseller, radio and television personality, Clark Howard.
|Oct 17, 2016|
#046: The Unbelievable Power of Building a Community - Live at FinCon
This episode is a little unusual because I interviewed fellow podcast listeners live at FinCon (a conference for financial bloggers).
|Oct 10, 2016|
#045: Ask Paula - Should I Invest $5,500 in One Huge Chunk? - and More Investing Questions
Podcast listener Eva is interested in opening a Vanguard account. She noticed that people need $50,000 to access their personal advisor services. It'll take her several years before she can access this. What should she do in the meantime? Amy, another podcast listener, wants to invest $5,500 into her Roth IRA in 2017. Should she invest the full amount on January 1, or should she spread this throughout the year? Meanwhile, podcast listener Daniel asks: • Q1: I'd like to invest in real estate. Where and how should I look for homes, other than Zillow? • Q2: Why would an investor sell a cash-flowing, profitable investment property? Should I be suspicious about multiunit properties for sale? Eric, another podcast listener interested in real estate, asks: • Q1: What are the basic steps for forming an LLC, especially one with multiple partners who aren't equal investors? • Q2: How do you go about creating a joint bank account for the LLC? Is it even needed? Should the account be referenced in the LLC documentation? I answer all of these questions in this episode of Ask Paula. Resources Mentioned: • Mike Piper's Blog: Oblivious Investor • Michael Kitces' Blog: Kitces.com (Nerd's Eye View) • I Don't Know How to Start Investing, and I'm Afraid of Making Expensive Mistakes (Blog Post) • Why Dollar Cost Averaging Stinks (Blog Post) • The Simple Path to Wealth by Jim Collins • Mike Piper's Books on Investing • #24: Ask us Anything: Betterment, Wealthfront, Robo-Investing...What's the Deal? (Podcast) • #31: The Simple Path to Wealth, with Jim Collins (Podcast Interview) Enjoy!
|Oct 03, 2016|
#044: "Why I Quit My Dream Job" – with entrepreneur Leslie Samuel
When Leslie Samuel immigrated to the U.S. at age 17, he hoped for the American Dream: an education, a secure job, and a traditional career path.
But during his college years, Leslie realized he had an entrepreneurial streak. He made a few attempts at working for himself.
He lost money that he'd set aside for his wedding. He tried investing in the stock market. He lost more money, savings that he'd set aside to pay his tuition.
But he didn't quit.
Leslie graduated, married, and accepted a job as a high school science teacher.
He felt happy and secure. Yet his entrepreneurial itch persisted. He started building an online business in his spare time.
Leslie began earning an extra $14,000 per year on the side, a nice supplement to his income. A few years later, Leslie landed his dream job as a university professor. He loved his work. He earned a solid income.
His wife gave birth to a healthy baby boy. Everything seemed perfect. But his entrepreneurial calling persisted.
Ultimately, Leslie made the difficult decision to quit his dream job in order to become a full-time online entrepreneur.
In this episode, he shares why he made this tough choice – and how he handled the fear and doubts that blocked the way.
|Sep 28, 2016|
#043: Jean Chatzky Shares Money Rules for Modern Life
Today's guest is Jean Chatzky, financial editor for the TODAY Show, host of the HerMoney podcast and a frequent guest on TV shows like Oprah, Regis & Kelly, and The View.
She's the bestselling author of many books, including Money Rules, which we discuss in today's episode. Here are a few of the Money Rules we cover:
#1: The more time you spend looking, the less happy you’ll be with what you find. #2: Your retirement trumps their tuition.
|Sep 19, 2016|
#042: The Incredible Value of Deep Work, Instead of Distraction – with Cal Newport
Your most valuable asset isn't your house, car or retirement portfolio. It's your attention. Most knowledge workers spend their day franticly hopping between meetings, emails, phone calls and social media. But that's not the best way to stand out in the modern economy. Emails are necessary, says author and professor Cal Newport. They'll keep you from getting fired. But they won't get you promoted. Instead, focus on deep work, Newport says. Dedicate your mental energy towards cognitively-demanding tasks that stretch the limits of your capabilities. Develop your skills as a writer, investor, programmer, mathematician, musician, artist, or whatever field you practice. You'll achieve bigger success from honing rare, valuable skills than you would from sending a few additional tweets or replying to emails at a faster pace, he says. You'll also enjoy more meaningful work. Deep work isn't something that you cram into the margins of your life. To the contrary, focusing on deep work allows you to boost your productivity at work and feel more fully present at home. Newport discusses the concept of Deep Work, and shares tips on how to apply this to our lives, in today's podcast.
|Sep 12, 2016|
#041: Ask Paula: Investing, Rebalancing and Renovating
Mollie, a listener, is making smart money moves.
|Sep 05, 2016|
#040: The Power of Habit Formation, with Gretchen Rubin
Most of us want to develop better habits. We want to exercise more, eat healthier, get more sleep, watch TV less, pay off debt, or save money.
We make excuses.
We tell ourselves we'll splurge "just this one time."
We convince ourselves that we're too busy to start a side business. We reward ourselves with a hall pass from our intended new habit.
Today's guest, Gretchen Rubin, talks about how we can create habits that stick. Gretchen Rubin is the New York Times bestselling author of The Happiness Project, which sold more than a million copies.
Her latest book, Better Than Before, explores how to create habits that lead to a healthier, happier, richer life.
|Aug 29, 2016|
#039: The Seven Stages of Financial Independence, with Joshua Sheats
It's tempting to think of "financial independence" as a finish line. You've either crossed the finish line, or you're still running the race. But financial independence is more nuanced, says today's guest, Joshua Sheats.
We experience seven stages of financial independence, Joshua says, and we should break down our Major Goal -- financial independence -- into a series of smaller steps.
Joshua, a financial planner and host of the hit podcast Radical Personal Finance, describes these seven stages in today's show, offering tips about how to reach each one.
Want a sneak peek at the seven stages? Check out http://podcast.affordanything.com
|Aug 22, 2016|
#038: Why You're Not As Busy As You Think, with Laura Vanderkam
There are 168 hours in a week.
If you work 40 hours per week and sleep 8 hours per night, you’ve accounted for 96 hours. You have an additional 72 waking hours per week.
What are you doing with this time?
That’s the question today’s guest, Laura Vanderkam, tried to answer by analyzing more than 1,000 time logs kept by full-time professional workers. Our collective narrative says that Americans are overworked, sleep-deprived and don’t have enough time for family or personal lives. That’s our emotional truth. But statistics paint a different picture. When more than 1,000 professionals track their time in 15-minute increments over the course of a 168-hour week, the data doesn’t point to time deprivation.
In today’s episode, Laura describes this surprising fact: we have more time than we think.
She also shares tactics on how to reduce chores and errands, stay focused and productive at work, and recognize the difference between efficacy and diminishing returns.
|Aug 15, 2016|
#037: Chris Guillebeau -- How to Live a Remarkable Life in a Conventional World
Chris writes about life, work and travel. He has visited every country in the world and written a number of New York Times best selling books.
He joins us to talk about challenging ourselves, experimentation,and deliberately changing our direction.
For more information, visit http://podcast.affordanything.com
|Aug 08, 2016|
#036: Ask Paula -- Should I Buy a Turnkey Rental Property? -- and More Real Estate Investing Question
It's the first Monday of the month, and you know what that means ...
|Aug 01, 2016|
#035: How to Start Freelancing on the Side, with Carrie Smith from Careful Cents
Carrie Smith enjoyed her full-time accounting job, but she wanted to make extra money on the side. Who doesn't, right?
She landed a second job in a tax office, working 9-to-5 for one employer and 5-to-9 for the other.
She earned decent money, but her schedule had no flexibility ... and she felt unhappy.
This needs to change, she realized. I need to make good money while also enjoying my lifestyle.
Even though she had zero experience as a writer, she wondered if she could leverage her skills as an accountant into a new, creative field. She volunteered to write one or two tax planning articles for a client, just to test the waters. She enjoyed the work. She wanted more.
She started reaching out to websites and companies that might need tax-related article writing. She landed her first major client, Yahoo Finance. Then another. Then another.
After a few years, her freelance business grew large enough that she quit her comfortable accounting job. She's her own boss now.
In this episode, Carrie tells her story and offers advice for anyone who wants to earn extra money as a freelancer -- whether its a side hustle or a path towards quitting your 9-to-5 day job.
For more, visit http://podcast.affordanything.com
|Jul 25, 2016|
#034: How I Built a Six-Figure Online Store -- with Steve Chou from My Wife Quit Her Job
Steve Chou's wife used to work grueling hours at a job she dreaded and despised. When she became pregnant with their first child, she decided to quit.
The problem? She earned six figures, and their family needed that income.
She opened an online store, buying handkerchiefs wholesale from China and retailing these online at a significant markup. She and Steve worked together to build a retail website and find customers. They bought Google Ads; they wrote blog posts; they created seller accounts on various shopping portals.
They earned more than $100,000 in their first year of business.
In this episode, Steve explains how he and his wife earn six figures as online retailers while enjoying a much more relaxed, liberated lifestyle.
He offers pointers for anyone who's interested in making money selling goods online -- either as a side business or as a method for quitting your day job.
For more, visit http://podcast.affordanything.com
|Jul 18, 2016|
#033: How I Became a Millionaire on a Military Salary - with Doug Nordman
After serving in the Navy for 20 years, Doug Nordman, then-age 41, retired from his military career. Most of his peers started second careers in the civilian world.
But Doug didn't. He had an ace up his sleeve: he had spent his military career saving 40 percent of his income. By the time he turned 41, he held an investment portfolio worth $1 million. Those investments, coupled with a Naval pension for $30,000 per year, propelled him into financial independence.
He's remained retired since leaving the Navy. He's now 55. He surfs three times a week. He travels to Europe on a whim. His retirement portfolio survived two recessions and is now worth $1.7 million.
In this interview, Doug shares the story of how he became a millionaire on a military salary. He also talks about the fulfillment he's found through financial independence.
|Jul 11, 2016|
#032: Ask Paula: The Market Might Drop. Should I Sell?
Should you sell your stocks, given that we might be heading for a possible downturn? Also, what are the downsides of index funds? Should you invest in out-of-state rental properties, and if so, how can you figure out where to look? These are just a few of the many questions Paula answers in this week's Q&A episode. Enjoy.
|Jul 04, 2016|
#031: The Simple Path to Wealth, with Jim Collins
Jim Collins, also known as popular blogger JLCollins, has been financially independent since 1989. He achieved this in the simplest way possible: he saved half of his income and invested in index funds.
|Jun 27, 2016|
#030: Okay, I’m Financially Independent. Now What? -- with Jim Wang
When Jim Wang was 29-and-a-half, life changed forever.
|Jun 20, 2016|
#029: Ask Paula: Pay Debt vs Buy a Home? Invest in Index Funds vs Creative Alternative?
Call in your questions to the Money Show Hotline http://themoneyshow.co/voicemail
|Jun 13, 2016|
#028: How I Woke Up, Removed the Blindfold, and Noticed My Money for the First Time -- with Evelyn Connors
Most people only pay attention if there's a problem - that includes money.
Guest, Evelyn Connors gets honest and raw about her previous understanding of how money works and her uber-excitement of taking control of her FI (financial independence).
Share this with your friends: http://TheMoneyShow.co/evface
|Jun 06, 2016|
#027: Pete the Planner, Comedian-Turned-Money-Columnist, on Millionaires and Mock Retirements
Pete the Planner talks about why millionaire-dom is important and why it's important to try a "mock retirement".
|May 30, 2016|
#026: Last Show With Jay
Sometimes you need to let go of the good for the great. Jay Money has started a lot of projects, only to let them go because they didn't match his goals.
The show must go on - and it will with Paula at the wheel. Jay will be back from time to time (and in every episode, as you will notice in future episodes).
Confused? Visit http://TheMoneyShow.co/episodes for more.
|May 23, 2016|
#025: The Stacking Benjamins Roundtable Plays a Game of 'Would You Rather'
Would you rather...have $15k in quarters or $15k in dollar bills? Today we have fun with Joe Saul-Sehy, Len Penzo and Greg McFarlane (HELLO Greg) from the Stacking Benjamins Roundtable.
|May 16, 2016|
#024: Ask Us Anything #4 - Betterment, Wealthfront, Robo-Investing -- What's the Deal?
You ask. We answer. Let's grab a beer.
This is the first Ask Us Anything in which we hear YOUR voices -- which makes this episode extra-awesome.
In this week's episode, Paula and J. Money tackle listener-submitted questions, such as:
Find out the answer to these questions and more in today's episode.
Note: We received so many real estate questions that we'll devote another AUA episode exclusively to that topic. Today's episode (mostly) covers other arenas.
|May 09, 2016|
#023: Farnoosh Torabi, Host of CNBC's Follow the Leader, Spills the Secrets of Successful CEOs
Farnoosh Torabi is host of CNBC's Follow the Leader. She shares stories about spending 48 hours with the most influential business leaders in the nation.
|May 02, 2016|
#022: How Jeremy and Winnie Retired in Their 30's
Jeremy and Winnie are the bloggers behind Go Curry Cracker. They took a vacation to the Philippines and decided this was where they wanted to live - and retire there early (like REALLY early).
|Apr 25, 2016|
#021: Making Money as a Voice Over Actor with Carrie Olsen
Carrie Olsen started podcasting with her husband, then dipped her toe into the voice-over industry and is KILLING IT!
|Apr 18, 2016|
#020: From Debt to Financial Independence, with Get Rich Slowly Founder JD Roth
The Money Boss, JD Roth, went from $35k in credit card debt to selling a personal finance blog for an undisclosed amount of money. Today he shares how financial independence affected him - and how having enough money to be financially independent forces us to face our problems.
For more visit http://TheMoneyShow.co
|Apr 11, 2016|
#019: Football and Hip-Hop's Financial Advisor Rob Wilson Talks About Managing Celebrity Money
Financial Advisor to the stars, Rob Wilson, gives us the inside scoop on what kind of help celebrities and sports heroes need. What he tells us may surprise you!
|Apr 04, 2016|
#018: Ask Us Anything #3 - Real Estate Investing Edition
Listener questions are back by popular demand! Paula answers your questions about real estate investing niches, strategies, and things to stay away from.
|Mar 29, 2016|
#017: Making Money as an Uber and Lyft Driver, with The RideShare Guy Harry Campbell
Harry began driving for Uber 2 years. Now he's making 6-figures sharing tips for how to maximize time and profit with Uber, Lyft, DoorDash and PostMates.
|Mar 21, 2016|
#016: How Aaron Epstein Went from Side Hustler to Selling a Multi-Million Dollar Company
Aaron Epstein shares his story of shoveling snow as a kid to launching a profitable website during college to selling a multi-million dollar company.
For more visit http://TheMoneyShow.co/16
|Mar 14, 2016|
#015: Ask Us Anything #2 - Dollar Cost Averaging, Pay off Debt or Invest
Q&A #2 with Paula, the analytical one, and J. Money, the heart of your M.O.N.E.Y. Team
Follow along with the answers: http://themoneyshow.co/15
|Mar 07, 2016|
#014: So You Want to Be a Blogger?
Can you make money as a blogger? How? We share the good and bad reasons for choosing to go into blogging.
Send us your questions or comments http://TheMoneyShow.co/14
|Feb 29, 2016|
#013: How to Destroy Your Stupid Debt, with Steve Stewart (and the Controversy Around Dave Ramsey!)
Steve and his wife got on the Dave Ramsey plan and they paid off their house! Plus, Steve's little coaching trick of Rent vs Buy vs Invest.
Get more at http://TheMoneyShow.co/13
|Feb 22, 2016|
#012: Ask Us Anything #1 - Student Loan Help, Tax Hacks, Time Management Tips and REITs
It's time to pick the brains of Paula and J. Money with our first ever "ASK US ANYTHING" episode.
Follow along with the answers: http://affordanything.com/episode12
|Feb 15, 2016|
#011: Making $100k from eBay and Airbnb with Jay & Ryanne
Jay and Ryanne have created a beautiful life for themselves scavenging for resale items in rural areas and renting houses in the Shenandoah National Park area of VA.
|Feb 12, 2016|
#010: From Millionaire to Broke, Plus the Habits of the Rich, with Tom Corley
OMG! It's Tom Corley, the RICH HABITS guy!
Jay is having a heart attack. Tom Corley studied self-made millionaires and poor people to come up with some interesting results. He wrote about it in a story called "Rich Habits".
Tom shares his story of being well off as a child before his dad lost everything. Then he worked hard to bring himself up to not-broke status and on to becoming an accountant.
After studying some of his clients he expanded to 233 self-made millionaires and 150 poor people. The results of those studies were very telling - but nobody really cared about it.
Then he got a break when Farnoosh Torabi did a segment about the Rich Habits on Yahoo Finance. The rest is history in the making.
Watch for Tom Corley's new book - Change Your Habits, Change Your Life - which gives more of the "how to" rich habit change. You can find it at http://ChangeYourHabitsBook.com
For links to some of Jay's favorite Tom Corley articles, visit http://TheMoneyShow.co/10
|Feb 10, 2016|
#009: Tools We Use to Kick Ass and Grow Wealth
Checking, savings, investment accounts, car insurance, credit cards, even umbrella insurance - it's all covered in this episode.
These are the financial tools Jay Money and Paula Pant use.
For a complete list of resources, visit http://TheMoneyShow.co/09
|Feb 08, 2016|
#008: How Jay Became a Half-a-Millionaire -- and Why He Wants You to Track Your Net Worth
J. Money is a HALF-MILLY! He loves to share his journey to growing net worth on his blog, as well as the net worth of 180 other financial bloggers.
See the short list and find links to resources by visiting the blog at http://TheMoneyShow.co/08
|Feb 05, 2016|
#007: The Mad Fientist Reveals the Science of Financial Independence
One of the M.O.N.E.Y. Show's favorite personal finance bloggers joins Paula and J. Money to talk about retiring early and hacking your HSA.
For full show notes with links to resources, visit http://TheMoneyShow.co/07
|Feb 03, 2016|
#006: How to Transition from Hustler to Entrepreneur
J. Money says a hustle is "a way to make money on the side, but more of a passion project or something that is fun. You do it for more than just money.”
Paula says it’s a “microbusiness".
No matter how you slice it, a hustle is a way to make extra money doing activities outside of a normal J.O.B.
Paula and J. Money share their stories of working on hustles to become the entrepreneurs they are today.
Visit http://TheMoneyShow.co/06 for more information about hustles
|Jan 28, 2016|
#005: How Kids Affect Your Hustle (and it's Okay!)
Paula wants to know how J. Money’s life has changed as a hustler since having kids.
For a while, J worked less and made less money.
"It was a conscious decision to not make as much money for a while. I was more than happy making less because I was working on stuff I cared about.
I also had a fear of being a work-a-holic and picking my hustle over my kids. Having kids forced me to have a work/life balance."
|Jan 28, 2016|
#004: Ultimate Beginner Guide to Real Estate Investing
In this episode, Paula shares a confession. Then she redeems herself by sharing her gross monthly income.
(Yeah. Listen from the beginning).
Full show notes at http://TheMoneyShow.co/04
There are a variety of ways to invest in real estate:
Ask yourself: Do you want capital appreciation or cash flow from rental income?
Paula puts a few guidelines in place to determine if a property is right for her.
First of all, the monthly rent needs to be at least 1% of the total acquisition price.
Example: A $100,000 home would need to rent for $1,000 a month. Why? Because roughly half of the rent is gobbled up by operating overhead:
Taxes, Insurance, property management, and repairs/maintenance
Paula offers much more valuable information in this episode and on her blog, AffordAnything.com.
|Jan 28, 2016|
#003: Habits We Rock to Kick Ass and Grow Wealth
Paula and J. Money share the financial habits they use to grow wealth.
Full show notes can be found at http://themoneyshow.co/03
Listen as they share their favorites (and a couple neat tricks):
Enjoying the show? Please leave a comment or write a short review for the show in iTunes: http://themoneyshow.co/itunes
|Jan 28, 2016|
#002: Don’t Feel Guilty - Buy a Coke Zero and Pay Someone to Mow Your Lawn
Once again, Paula and J. Money see things differently.
J. Money preaches budgeting, Paula practices the “anti-budget”.
J. Money examines every expense to find savings. A couple years ago he switched phone providers and saves $100 a month, $20 a month on insurance and $60 on cable.
Paula recommends saving at least 20 percent of your income first, then go wild with the rest; “Don’t feel guilty about spending money on Coke Zero or turtle food”
Who is right?
To leave a comment or contact the hosts, visit http://TheMoneyShow.co/02
|Jan 28, 2016|
#001: The Story of M.O.N.E.Y. -- Having Heart and Hustle
Becoming successful in finances takes more than M.O.N.E.Y. - it takes heart and hustle.
Meet Paula Pant and J. Money. Both worked day jobs before becoming successful bloggers.
They share their stories about buying a house before the market tanked, starting their side-hustles, and acheiving "mini-retirement", at least for Paula.
We value your input. Please visit http://TheMoneyShow.co/01 to leave a comment.
If you like what you hear, please subscribe for free in iTunes http://TheMoneyShow.co/iTunes.
|Jan 28, 2016|