Sara Rathner
Appearances
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
Yeah, so this begs the question, who might be a good candidate for a product like this?
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
Or somebody involved in a multi-level marketing scheme.
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
So James, with all that, we're getting to the core of your question, which is, what's the scam? That's a great question. You should ask that basically every day. Whenever you receive an email, just ask yourself, what's the scam here? Even if it's from like... Especially if it's about insurance. Even if it's from like your own sibling, just ask what the scam is.
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
So it sounds like they have about $10,000 or $20,000 to put into one of these products. What kinds of fees or other expenses might they face? And what other downsides should they be aware of?
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
So a lot of people have a hard time deciding between term and permanent life insurance. Is one generally better for most people than the other?
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
If you've been smoking and thinking about quitting, let this be one more reason to do so, right? One of many. So going back to insurance, of course, what goes into these rates and how can people use this information to compare policies and shop around?
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
And I'm Sarah Rathner. If you have a money question for the nerds, call or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD. Or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
So I think we're starting to see now why life insurance products can be a little confusing for people. Can you give us an example of what one of these policies might look like in practice?
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
So now in the end, do you think it was actually a good return on your investment?
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
So it seems like James might be alluding to this concept, something called infinite banking. Could you explain what that is? Because it sounds completely made up.
NerdWallet's Smart Money Podcast
Navigating Life Insurance Choices: Investing, Variable Policies, and Financial Growth
To help us answer James's question on this episode of the podcast, we are joined by nerd wallet insurance pro Lisa Green. Welcome back to Smart Money, Lisa. Thank you, Sarah and John, for having me.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
That's true. So Sean, what do winners get?
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
And I'm Sarah Raffner. Sean, happy Thanksgiving.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Ugh, nobody wants this. That's like getting socks for your birthday.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
And if you want to nominate your own Financial Turkey of the Year award, we're all ears. So let us know. We'll be back in a moment with our nominees and winners for Financial or Economic Turkeys of the Year. Stay with us.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
If we're going to talk turkey, let's discuss grocery inflation. Remember eggflation? That was actually a 2023 problem that peaked in January of that year. But it's still really hard to get out of the store sometimes without spending like 50 bucks on just a few items. And food prices are up significantly since 2019, thanks to everything from supply chain issues to bird flu to the war in Ukraine.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
And according to the USDA, as U.S. household incomes rise, those households actually spend more money on food, but their food spending represents a smaller share of income. So look at it this way. Looking at data from 2022, households in the lowest income quintile spent 31.3% of their income on food. That's nearly a third of their household income.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
On the other side of the coin, households in the highest income quintile spent just 8% of their income on food. So this is a problem that affects U.S. households across the board, but it's affecting specific types of households much more seriously. So we'll have to see how this continues to play out. High food prices can be hard to stomach. But I'm saying, pun intended.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
That's a highly specific food item to be upset about, but okay, that's fine. I love a good bagel and cream cheese myself. All right, so my next candidate, ghost jobs. And I am not talking about seasonal work as an actor in a haunted house attraction.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
These are job listings online that look completely real, but the role either doesn't actually exist or it's already been filled and the company is still advertising it as if they're still looking for candidates. According to a May 2024 survey by Resume Builder, 40% of companies posted a fake job listing this year, and 3 in 10 companies currently have active fake listings.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
So why the heck do companies do this? Because this is really annoying. A couple reasons. One is to look open to new talent or make it seem to the outside audience that the company is growing. Sometimes they just like seeing what talent is out there so they can have a collection of potential future employees.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
I mean, listen, we already know that. AI is coming for us all. So we don't need to be reminded of that year round. You know what I mean? Anyway, what really is terrible about this is that some companies will go as far as actually interviewing job candidates with zero intention of moving forward with them in any way. And I know a number of people who are job hunting right now.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
It really is a privilege to be here in front of the microphone interacting with folks, helping them with their finances. I have to say, I really enjoy hearing about people's lives and the financial decisions that they're hoping to get help with. And not just because I am a nosy person, but also because I just like to know what's on people's minds.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
And ghost jobs are a huge waste of their time. That's time that they could be spending on interviews that could actually lead to real job offers.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
I've got to go with ghost jobs. And like you said, it is cruel to toy with people who are just trying to find a way to support themselves and their families. Yeah, don't mess with compensation companies.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
May those recruiters be covered in unsalted gravy the way people will get slimed on Nickelodeon.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
All right, Sean. So those were my nominees. What are yours?
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
This is a solid nomination, Sean. It's so easy to fall for a scam and none of us are immune.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Nice plug, Sean. I see what you did there.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Honestly, I don't think I've ever heard majestic and lumpy in the same sentence before. And honestly, I hope to never hear that again. So thank you for that moment. I never want to relive. Fair enough. All right, Sean, what's your winner for the 2024 Financial Turkey Award?
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Yes, just assume that everyone's out to get you and make them prove they're legit. Let all weird calls go to voicemail and only call them back if they're real. Screening your calls is a time-honored tradition that goes back to the days of answering machines, and I say we bring it back.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Yeah, honestly, it probably is.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
I laugh, but really, I cry on the inside.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
What the hell is a nut loaf? It's exactly what it sounds like.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Ew. Oh, no. Every time you mention another ingredient, you make it worse.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
They got to rename it. They need a, oh, oh, Nut Loaf.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Today's episode was produced by Tess Vigeland and edited by Sean. Megan Maurer mixed our audio. And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
Nut loaf. It's good. I swear it is. Oh, my God. It's got the worst name. No, I just, you know, it just sounds so bland. It's like.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
I mean, I'm down with 50% cheese, but you know those, like, there must have been an old Twitter account that did this. It was, like, weird recipes from, like, mid-century.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
And it kind of sounds like one of those things that people eat for dinner in the 60s.
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
It's like in the 90s how they made, like...
NerdWallet's Smart Money Podcast
From Eggflation to Ghost Jobs: Roasting 2024’s Biggest Financial Turkeys
So do I. And besides, listeners join us at different points, at different episodes. So it is helpful to repeat topics once in a while. And if you're making a really tough financial decision, sometimes you have to hear about it a few times before you feel comfortable actually taking any sort of action. We're here to examine all sorts of money stuff from multiple angles.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Yeah, I'm impressed. Yeah. So what got you thinking about your net worth and how it compares to your peers, to other people in similar ages to you?
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Okay. Yeah. That makes sense. Yeah. And a net worth number is the moment in time. And what it doesn't mean necessarily is that someone has quote unquote made it compared to their peers. You could have a high net worth because you have an asset like a house that's gone up in value significantly, which has been true for quite a few people recently.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
But day to day, your cash flow might be pretty tight. So you're not really living large. You just might have a house that is worth a lot of money.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Using your net worth as a basis for self-esteem or your worth or how much you're worth in comparison to your friends or family members is just an exercise in futility.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Definitely. Well, today I learned that Sean's biggest fear is having to live off of canned beans.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
And I'm Sarah Rathner. If you have a money question for the nerds, call or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD. Or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Yeah, you can't have too much of a good thing. Yeah.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
So your net worth is basically your assets, which means the things that you own. So that could be cash. It could be a home. It could be artwork. It could be jewelry. It could be a car. It could also be your investing accounts. And then it's also a listing of what you owe. So your debts, mortgage, student loan, car loan, personal loan, those sorts of things.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
You subtract the debts from the assets in terms of the value of the assets minus the value of the debts. And that's your net worth. I don't know if the definition of net worth changes geographically, but what really what the variations you see might be what people choose to include in their net worth. Sometimes people include the fair market value of their car. Sometimes they don't.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Things like that. It just kind of comes down to what you decide to include and maybe what free template you download online to input numbers into. And there are lots of free templates available.
NerdWallet's Smart Money Podcast
Net Worth and Chill: How Your Wealth Measures Up and Vivian Tu’s Tips for Financial Success
Yeah. Sean, do you have any any thoughts on net worth and its various forms?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
All right. So hold on. As we sit here in January, is it at all possible to say whether 2025 will be a buyer's market or a seller's market?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
I mean, sometimes you see those non-professional photos where It forgets staging the house with rental furniture. You can absolutely stage a home with your own furniture, but you could just tell that the sellers do not give one iota of a hoot because there's like unmade beds in these pictures. And it's like messy bookshelves and laundry.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
And it's just like, just clean up and make your bed before you take these pictures.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
I will say last time I rented, we left our lease to buy our house. And so my landlord was like, if you list the apartment and find a new tenant, I'll let you out of your lease with no penalty. And I'm like, great. So I took great photos of the inside of the apartment. And when I showed it, I lit scented candles and opened all the curtains and fluffed the pillows on the couches and all that stuff.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
And it only took two viewings to get rid of that apartment. And I was really happy to do it because then we got to vacate the apartment and move into our house without having to pay, you know, an extra fee. I had a pretty chill landlord at the time. And that's the power of staging. Light some candles, create some ambiance, bake some cookies, you know, do it up.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Holden Lewis, thank you so much for helping us out today. And even though we are already a couple of weeks into it, happy new year.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Holden Lewis, so glad to have you with us again on Smart Money.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
I am, too. But the thing about needing to move is that you're going to do it no matter what else is going on.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Yeah, it really is true that you need to plan around what you know, not what you think might or might not happen. So Sean, we have one more episode of this Your Money in 2025 series coming up. What's next?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
All right, Holden, let's start with an overview of last year and where we stand with the basics of the housing market as we begin 2025. I'd venture an educated guess that interest rates were the big story last year because they influence mortgage rates, so many other kinds of loans. It doesn't really seem like there's been much relief price-wise in most housing markets.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
For now, that's all we have for this episode. Do you have a money question of your own? Turn to the nerds and call or text us your questions at 901-730-6373. That's 901-730-NERD. You can also email us at podcast at nerdwallet.com. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
So what's the 10,000-foot view at the moment?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Could you talk a little bit about the relationship between interest rates that are determined by the Federal Reserve and mortgage rates? Because last year, mortgage rates were slowly coming down for a good part of the year, as you said. And then the Fed started to bring overall interest rates down and then mortgages ticked back up.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
And I'm Sarah Raffner.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
So walk us through what happened there and what potential homebuyers should be paying attention to this year.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
So what are some of the primary factors that potential homebuyers are looking at and facing if they're hoping to either buy a house for the first time this year or sell one house to buy another?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Let's look at this from the perspective of a group of people who are important when it comes to housing inventory, and that's people who are willing to sell their houses. Because without them, you have no inventory, right? Unless you build new.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
There was a lot of talk last year about how the market was stuck because people didn't want to leave their homes when they had these really low interest rate mortgages from, say, 2020 or 2021. Their mortgage rates were 3% or lower. Has that factor changed at all? What are sellers considering as we start this new year?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Yeah, buyers have been facing the headwinds of both high mortgage interest rates and high home prices. Lose-lose. The market is tight because people who bought before rates started to go up don't want to leave those rates. And just in general, more people want to buy houses than the number of houses that are actually available. So it's all been a little bit stuck.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Or if you choose to downsize your home for any reason, you're paying the same amount or more for less space and fewer amenities.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Holden, what other factors are grinding the gears right now? And what would it take to get the housing market moving again?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
We will be back in a moment with more of our conversation. So stay with us. What do we know about any plans the new administration might have for coming up with some sort of relief for wannabe homebuyers?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Let's review some basics for those who think they might have some involvement with the housing market this year. Buying, selling, shopping around. So let's start with folks who might be looking to buy. What are the main steps homebuyers should be taking right now if they have any sort of inkling that they're going to get into the market in 2025?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Maybe some steps for first timers and then some steps for people who are veteran homebuyers and sellers.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
It's funny you use the phrase Zillow stocking. I definitely use that phrase too, but not to look for houses for me, but really just to look up friends' houses to see how much they paid. Or if I'm like walking through my neighborhood and I see a house I really like, I'll look it up on Zillow because I just want to see pictures of the inside of the house.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
On the other side, let's look at sellers. So what are some things sellers should be preparing for if they are looking to get out of their home and maybe rent, or if they are looking to sell their existing home and buy a different one?
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Yeah, I will say somebody on my block sold their house a couple of years ago and they tried to sell it as is, and they did not take good care of this house. I remember them having their first open house and they're like, we're just going to sell it the way it is. And we're going to get what we're asking because the market is great. And then they didn't get what they wanted.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
People were not putting in offers. And then the next thing I know they'd hired painters and they were hiring other repair professionals to come through the house. And so they had to give up that dream of selling this house in its current condition and And they had to put a couple grand of extra work into it first. And they still sold it for under asking.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
That's right. There are a lot of steps you can take now in anticipation of what you might want to do later in the year.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
And then the new buyers had to put in a ton of work on the house anyway.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Well, that's good to know because those are all some fun weekend projects. If you're handy enough, can do yourself. But if not, you can always hire out and hopefully get some of that money back when you sell your house. Paint your front doors, everyone.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
So we talked with you about this a couple times last year, but I'm hoping you can give us some historical context for the current mortgage rate environment. many people got used to these really low rates. And now they're hesitating to jump in because rates are higher, but they're still not historically high, right? You hear these horror stories from the 80s. Walk us through this a bit.
NerdWallet's Smart Money Podcast
2025 Real Estate Trends: What Homebuyers and Sellers Need to Know
Let's talk about some significant changes that happened not a couple decades ago, but just last year in the real estate industry and how that's shaken out for homebuyers and sellers. So remind us about what changed and then give us a sense of how that's affecting the home buying and selling process.
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
Tell me a little bit about your emergency fund, because sometimes you're just one unexpected expense away from adding even more debt onto those credit cards. So what do you have set aside right now for those unexpected costs?
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
I love to hear that because $25 a week doesn't feel like much, but you let a few months go by and you automate those contributions. So they happen regardless of what else is going on in your life. You don't get too busy and forget to make the contribution. And you'll be surprised at how much is in there after just a few months, assuming you don't have to tap into it.
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
And if you ever do have to tap into it, it's going to be really nice to have. So yes, that is excellent progress. I'm so happy to hear that.
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
Yeah, Sean and I both had unexpected expenses over the past couple of weeks. Sean, I know you had car repairs, I had roof repairs, and life just happens. So it's nice to have the funding available when you need it.
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
And I'm Sarah Rathner. If you have a money question for the nerds, call or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD. Or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
And you are in a line of work where retirement is typically done at a younger age. You mentioned retiring in your mid-50s and that you're a firefighter. And typically with pensions for careers like being a firefighter or police officer, normal retirement age is quite a bit younger than the typical retirement age we anticipate, like 67 or so. Right.
NerdWallet's Smart Money Podcast
Crush Debt or Grow Investments? How to Make the Best Choice for You
So when you retire in your mid 50s, do you want to have some sort of encore career or are you thinking that that's the point at which you would ideally like to stop working if you can?
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
Then when the realtor draws up the offer paperwork, suddenly there's a new company in the mix and the company that will handle escrow and the title transfer.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
So, not to answer for you, Kate, and put words in your mouth, but reading between the lines here, it seems like you are a little wary of this idea.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
The paperwork will tell you that you don't have to use the title agency the realtor is recommending, but when you're getting ready to sign the paperwork, it's too late to step back and see if the title agency is a good one and if what they're charging is reasonable and competitive.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
We're back and answering your real world money questions to help you make smarter decisions about your money. This episode's question comes from Lena, who emailed us their question. Here it is. My husband and I are hoping to buy a house and stop renting, but the interest on houses is very high. I hate to see how much of the mortgage is going to the interest on the loan.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
We do have the opportunity to buy a house outright, but it would take all our savings in our high yield savings account. We're getting about $350 a month from interest in our savings. So using that money to buy a house would get rid of that, but we wouldn't have rent. And we could save up very fast to get that money back where it was, probably within a few years.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
I know it's not ideal to put most of your money in a house, but in our situation, do you think this is better than paying a high monthly mortgage for 15 years? Thank you for your help. Love the podcast, and I hope you all are doing well.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
On the last offer I made, I even had to sign a disclosure that the realty company and many of its employees have a significant financial stake in the title company. I'd love for Smart Money to talk about this and how to shop around for a title agency in advance just like we do for other companies involved in the transaction.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
So going back to individual homebuyers, for many, a difference in interest rates of just a few points can mean the difference between being able to afford a house or not. But if our listener is in a place where they can buy a house outright in cash, I'm wondering if they're maybe getting a little too hung up on the interest rate thing. What do you think? In a word, yes.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
Yeah, I cannot stress enough, not just how expensive it is to buy a home in the first place, but to maintain the home, to furnish the home. If you drain your savings just to get into that home, it's going to sit empty and broken until you rebuild your savings back up. And the listener does mention, well, if we don't have rent anymore, we can build our savings back up pretty quickly.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
And I don't know what their full financial picture is, including income and other sources of funding that they have. But fundamentally, For, let's say, the average person, you're not going to be able to build your savings back up as quickly as you might think because there's always another crisis. And it's not just with your home, but also just your life.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
There could be a medical crisis or something else that eats into your savings. Keep in mind that typically rent is the most you'll pay for your housing in a month, not including utilities, whereas a mortgage is typically the least you'll pay. Add on to the mortgage, the utilities, the maintenance, the repairs, even just the nice decorative stuff that you want to do. It's constant.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
The money is constantly bleeding from your account.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
So, Kate, our listeners focused on two options that you mentioned just now when it comes to paying for their home. Option one is buying a house outright. And option two is getting a 15 year mortgage. But these are not the only ways to buy a house. So can you talk through some of the other options that our listener has for financing a home?
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
All right. Well, Lena, if you're out there, I hope we have given you some things to think about as you make your decision when it comes to whether or not to buy a home or to keep renting. So, Kate, thank you so much for joining us on Smart Money. Of course.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
And how much does a title agency typically charge?
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
Honestly, you have so much decision fatigue that I didn't shop around for one blessed thing. I just let the realtor lead me around like a confused baby lamb.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
I got my house and I'm happy and we refinanced later on. It was fine.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
And I'm Sarah Raffner. If you have a money question for the nerds, call or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD. Or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
All right, Kate, let's start at a high level. What do you think about Amy's investing idea? Is it wise or is it potentially risky?
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
So how else does a cash out refinance compare with a second mortgage?
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
So Amy could use something like a HELOC for a down payment on another house. And I mean, this sounds like, I don't know, it could be potentially a savvy financial move, but again, also risky. And this is not something I've ever done myself. So it's a total mystery to me, other than the stuff I see on TikTok. But what questions should Amy and their partner work out before they make this decision?
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
Like, what's their budget for housing? Do they want to be landlords? All those types of questions.
NerdWallet's Smart Money Podcast
Cash or Mortgage? Navigating Home Equity and Title Agency Shopping
Thank you so much for having me back. All right, let's get into the first question. This one comes from Mark who sent us an email. Here it is. When buying a house, we carefully selected a realtor, then carefully selected a bank to originate the mortgage.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
So you're definitely not the only nerd who's a fan of that card. And it's not just because you can get the card in classic yellow gold or trendy rose gold. And for a limited time, they had a white gold option that I don't think is available anymore.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Yeah, and the card also offers quite a few statement credits for specific merchants like Dunkin' and Rezzy. And there's a monthly allotment of Uber Cash that gets added to your Uber account. Terms apply. If you take advantage of these perks, you can get more value out of the card because it also has a pretty high annual fee.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
The first thing you have to ask yourself is, is the travel card even right for you? And the answer might be no, and that's totally fine. Now, the more you travel each year, especially if you travel internationally, the more sense it makes to use travel rewards credit cards. But if you tend to travel domestically and not that often, you probably will get more value out of a cash back card.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
If you are a frequent enough traveler, then you want to look at the cost of the card compared to the dollar value of the perks that it offers that you're actually going to use. One last thing to think about is how you travel. If you're loyal to a specific airline or you always stay at a hotel property that's under the umbrella of a specific brand like Hilton, Hyatt, Marriott, Bonvoy,
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
then airline and hotel cards could be a better fit for you. But if you want flexibility to book on any airline or stay at any hotel, even independent hotels that are not part of a chain, then a general travel rewards card might be a better option for you.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Now let's get to our next listener question, totally different topic. This one comes from Cheryl, who wrote us an email. I have a question about opening investment accounts for my grandchildren. I would like to open the accounts with a small amount, say $100 plus, and then contribute on birthdays and Christmas. Many of the Vanguard funds require a large investment of $3,000.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Is there anywhere I can get started with smaller amounts? All right, Sean, you're Mr. CFP, so I'm going to let you start this one. What would you tell Cheryl?
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
I will also say this before you open any sort of account. Talk to your grandchildren's parents or guardians, whoever is raising them day to day, because they might already have some accounts set up for their kids that you can contribute to.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
My husband and I have a 529 for our son, and we both contribute to it. Both of our sets of parents have also contributed by giving us checks. And then we deposit them into the savings account that's linked to the 529, and then we move the money over and invest it.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
But what if Cheryl isn't so much the 529 kind of grandparent, but is more the YOLO kind of grandparent who wants to fund their grandchildren's, I don't know, experience going to like a yurt in the desert?
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Yeah, that is a lot to consider. So would it be simpler to go with a taxable brokerage account then?
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Yeah, but I'm going to go ahead and assume that there is some sort of tax hang up here, too.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Well, those are all things to plan for. And it sounds like anybody in Cheryl's situation who wants to gift money to grandchildren for their future, their young adulthood, might be worth talking to some kind of tax professional first before you take any actions. And again, talk to the parents too. All right. Another thing they asked us about is account minimums.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Do they have to start with a minimum investment of $3,000? Or is there a way they can start with smaller amounts?
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Yeah, and this is where we put our NerdWallet hats on, not that we ever take them off, and remind folks to shop around for financial products. We have loads of roundups about investing accounts on NerdWallet, so check those out. You can find a link in this episode's show notes or online by searching NerdWallet investing account.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Honestly, ask me that question in a few years when he no longer refers to our dog as mama. I'm also mama, but the dog is... Double mama. Whenever I say the dog's name to him, he goes, mama.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
So opening Roth IRA is pretty simple. You can do it in just a few steps, which we laid out in an article that we will link to in the show notes, but I will also walk you through them.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
All right, gather around kids because it's story time. Imagine that a Roth IRA is a house deep in the woods and it's like made of candy or something just to make things really interesting. And you are a lost child. You're getting kind of hungry. You want shelter. You want a snack. And in this Roth IRA house, you can have both at the same time.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
And of course, we would like a fully funded retirement, which I will somehow work into this metaphor eventually. I'm not yet sure how, but stick with me.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
So the Roth IRA candy house has a locked door. The first step is knowing if you have the right size key. In this case, the key represents your income. So if the income is too little and the key is too small, can't enter, but too much, you can't enter either. The key won't fit because it's too big. It needs to be just the right size. So to put funds into a Roth IRA, you need to have earned income.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
That income is something that you get from a job for which you are a W-2 employee, maybe a contracting gig, you're a 1099 employee, and your income has to be below certain limits. And for a single person in 2025, you have to earn less than $150,000 to be able to contribute the maximum amount to a Roth IRA. That amount that you can contribute is phased out as your income goes above that limit.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
So as a single person, you can't contribute at all if you earn more than $165,000 in 2025.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
And the maximum amount you can contribute to a Roth IRA in 2025 is $7,000 for those under the age of 50. And for those who are age 50 or older, the max contribution is $8,000. Okay.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
All right, so you go into the house and you see a wall stacked with shelves full of bowls. So these bowls are different Roth IRA accounts and you can choose from different companies. Some bowls are different shapes and sizes and some have different features.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Well, in a non-made-up fairytale world, you would check out NerdWallet's roundup of the best Roth IRA accounts to help you choose which one is right for you. But if you want to choose your own investments, you might select the brokerage account bowl of porridge. If you want to be more hands-off with your investments, you might select the robo-advisor bowl of porridge.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Next up, you choose how much money you'll put into the account, which let's say is the amount of porridge you want to add to your bowl. You might want to add a certain amount each month or do it all at once for the year. You have some flexibility here.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
You know, it kind of does because the next and final step is the most magical of all. You pick your investments. And this is a big one because the money you put into a Roth IRA is not automatically invested. So think of choosing your investments as bringing the whole magical dish to life. Because if you don't do that, then the money you put into a Roth IRA account is just held in cash.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
That's your uncooked porridge just sitting in the bowl instead of some hunky prints. Then you sit back, continue to invest, and watch your retirement funds grow over time until you have the largest bowl of porridge that anyone has ever seen.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Well, now I just want a bowl full of candy porridge. All right, that's all we have for this episode. Remember, listener, we're here to answer your money questions and we could do it via fairy tale if needed or not. So turn to the nerds and call or text us your questions at 901-730-6373. That's 901-730-NERD. You can also email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Also visit nerdwallet.com slash podcast for more info on this episode. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
And with that said, until next time, turn to the nerds.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Is this what it's like to admit to yourself that you actually like one of your kids best of all?
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Well, I only have one kid, so I like him best of all. But I do have three pets, so maybe I could just apply that situation to this. If I had to go with just one, I would go with the Chase Sapphire Reserve. But my answer comes with an asterisk that leads to a footnote.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
So what's great about the card on its own is that it earns what are called Chase Ultimate Rewards points. That's its rewards currency. And when you redeem those points for travel through Chase, then they're worth one and a half cents apiece. And that's a good thing because the average value of points is typically around one cent apiece. So it's 50% higher.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
But that is also what makes the Chase Sapphire Reserve even better when you carry multiple Chase cards that earn Chase Ultimate Rewards points. And how this works is if you have multiple Chase cards that earn this rewards currency, you can move all of those points over to your reserve card. And then you could redeem for travel at that higher rate.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
And if you have a spouse or partner who also carries Chase cards that earn these types of rewards, they can transfer points to you if you're carrying the reserve card because Chase allows you to transfer points to another member of your household. So both of you can earn a whole bunch of points and then redeem them for travel through your Chase Sapphire Reserve account.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Yes, so the Chase Sapphire Reserve has an annual fee of $550, which is nothing to sneeze at. You definitely want to think long and hard about how you're going to use this card before you apply because that's a lot of money.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
Yeah, and it has some other benefits, too. It's got a $300 annual travel credit. Last year, I used that to buy tickets on high-speed rail on a trip to Spain with my family, so I like to think that I got a lot of joy out of that travel credit.
NerdWallet's Smart Money Podcast
Will New Tariffs and Tax Rules Cost You? (Plus: Travel Rewards & Roth IRA Tips)
You also get access to certain types of airport lounges. It comes with travel insurance, which can be a really helpful benefit if your trip does not go according to plan. So those are all things that could have monetary value if you choose to take advantage of them. And that can also help chip away at that, once again, $550 annual fee. Yeah. All right, Sean, what is your favorite travel card?
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
But somehow it seems attainable if you break it down into how much you need to contribute per month, because then you could work it into your budget with all of your other monthly expenses.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Yeah, and not only do you have that risk of putting all too many eggs in one basket, but simply investing in a company because it's familiar to you doesn't necessarily make it a good company to invest in. I mean, how familiar was Enron to a bunch of people, right?
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
We all know what happened there. So the thing is, companies are run by human beings, and human beings are flawed. Companies are susceptible to things that could affect their performance over time that any one person who works in the company can't necessarily control all these forces outside of the company that affect it.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
The thing is, there are ways that you could analyze performance and assess a stock's fair market value to determine if it's a good time to buy or sell shares of that company. But honestly, most of us don't have the knowledge and experience to do that analysis.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Or the time. I don't want to do it. I mean, that's a lot of spreadsheets, guys.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
So then you're left picking a stock based on feelings, which is essentially gambling. It's pulling a lever on a slot machine. There's no art, science, or math involved in making that decision. It's literally just... well, I've heard of this company. My friend works there. My family member works there. I've worked there. I like the people there. I like their product. That's all good.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
And that's a really great place to start, but it's not the only determining factor in whether or not to invest in a company. And so that's why diversifying your investments can be so helpful because it saves you from yourself and your flawed decision-making. And we all have flawed decision-making, even us.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
I've actually done this. I held stock in a former employer. And at the time, because of where I was in life, it ended up being a pretty high percentage of my overall portfolio. And it was making me a little uncomfortable. So I sold off some of that stock to reinvest in index funds. And I did owe some taxes on the gains, but otherwise it was a pretty straightforward process.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Sell the stock, get the cash, and then use it to buy shares of funds. Done.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
This is how he reviews course material.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Yeah. And Sean, you mentioned investment timeline. So let's talk about that. Let's talk about Kat's investment timeline, which they say is seven years. What could that mean for their investment options?
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
And with such a specific goal and a specific timeframe, that tells me that Kat already has a plan for that money. Because if not, why seven years and $44,000? Those are not even round numbers.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Why not like 10 years and $50,000? You know what I mean? Like, what's going on, Kat?
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Follow up with us. Tell us what's going on with you.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
So you want to invest with that timeframe in mind. And then, you know, if your goals change, you can also make changes to how your money is invested. So maybe things change for you and you're like, well, I can bump this goal out another three years. What does that change for me?
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
So periodically reassess, because even though seven years is a pretty short timeframe when it comes to investing world, it's still time to reevaluate once in a while what you're doing
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
We're back and answering your real-world questions to help you make smarter decisions about your money. This episode's question comes from Kat, who sent us an email. Here it is. Good morning, Sean and Sarah. And hello to Liz, hoping she's enjoying retirement. I have a goal to save $44,000 over the course of seven years. I currently have $16,000 in a computer share stock purchase.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
I usually receive a return of $400 annually. I received a windfall of $10,000 from an inheritance from a family member in 2004 and purchased stock in only one company because my dad worked there, funded my education with his stock sale, and I'm loyal to the brand. I have sold about $8,000 worth for some home renovations over the years.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
All that being said, what's the best way to diversify this investment to reach my $44,000 goal by 2031? So increase by $28,000 or about $4,000 a year. Is this even possible?
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
All right, so before we get into Kat's question, this is a good time to remind our listeners that we are not investment advisors, and this is not individualized advice. What we nerdy people are about to discuss is for general educational purposes only.
NerdWallet's Smart Money Podcast
How You Could Grow $26K to $44K in 7 Years: Smart Strategies to Try
Yeah, inflation has something to do with it, too. So you definitely want to keep that in mind. What I like about looking at the numbers this way is it gives you a monthly contribution goal, because it's so easy to say, I want a five-figure sum in a few years, or I have X amount of dollars to invest per year.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I hate circling for parking. That's like one of my driving pet peeves. I hear you. Yeah. But now I don't have to do that. I can sit on my couch with my phone and spend my money. And it's a blessing and a curse. Double edged sword. Let's wrap up with some final ideas for having a happy and financially healthy 2025. So what have we missed?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Take it minute by minute. It's okay. It doesn't have to be all year. And not every decision you make is going to be perfect. Right. Every day is a learning opportunity when it comes to your money. NerdWallet Senior Economist Elizabeth Renter, thanks for stopping by. You can leave the New Year's confetti and noisemakers at the door. I'm going to save those for later just for fun.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
And as always, give yourself some flexibility, and it's totally okay for your goals to change mid-year.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
And that goes for every aspect of it, from budgeting to credit to housing to careers to investing.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
For now, that's all we have for this episode. Do you have a money question of your own? Turn to the nerds and call or text us your questions at 901-730-6373. That's 901-730-NERD. You could also email us at podcast at nerdwallet.com. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeart Radio to automatically download new episodes.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Yes, you do. But it's all good stuff.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
So, Sean, even though we want to move forward and into this new year today, we are going to harken back to the old days of last year all the way back a couple of days and think about what we could have done differently and or better when it comes to our finances. And to that end, NerdWallet does this annual survey at the end of each year asking people about their money regrets. Ouch.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
We're going to hear about that today.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I would rather not make them in the first place, but if they're going to be made anyway, yes, let's learn from them.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Up next, we're talking with NerdWallet chief economist Elizabeth Renter about that survey and her advice for making this coming year the best ever, financially speaking at least. Elizabeth Renter, happy new year. And I really hope that you don't have very many regrets from 2024. I mean, at least not financial ones, maybe some fun ones. Hey, Sarah, thanks. And happy new year. Thanks for having me.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
And we're going to get into money New Year's resolutions a little bit later on. But first, let's turn the clock back to like, I don't know, two days ago when it was still 2024. And now it's 2025. Let's talk about financial regrets from 2024. We've got this survey conducted for NerdWallet by the Harris Poll. Let's start with how many of us have money-related regrets?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I am definitely sorry to hear that, but maybe a few more hours spent listening to the Smart Money podcast, hint, hint, will help with that for this year. Let's break this down by generation. Who's got the most regrets?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Honestly, it's like you just don't have time for regret after a certain point. You want to spend your time doing more important things. And, you know, honestly, and like to the other end of the spectrum, Gen Z, younger adults just getting started, establishing themselves financially. A big cohort of that generation is still school aged, so they're not necessarily fully financially independent yet.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
But yeah, I mean, I remember being that age and you're just figuring it out. You're taking those wobbly first baby deer steps into managing your money. And it's terrifying. Yeah. honestly. Oh yeah.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
The more you do certain financial tasks, the more they become easy and routine. Yeah. And then you feel empowered to do things that are even more complicated. And honestly, then your life gets more complicated too. And you have no choice but to respond to that. I could definitely see like the older you get, the more comfortable you are managing your money. And so you regret less. Absolutely.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Yeah. No regrets to having more money. Be my least regret. Oh, I really regret like making so much money last year, you know, so tough. All right. We know who regrets a lot, but let's talk about what they regret. What are some of the top regrets folks have from their financial lives last year? First up savings. I imagine we all regret not saving more, right?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
You could always save more, but saving for what exactly?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
And of course, on the opposite side of the coin, no pun intended, we have spending. Honestly, I regret spending on some of the things I had to do to fix my house this year. I know you sold your big Victorian money pit. Yeah. And now you rent and have freedom. I have a World War I era money pit of my own.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
That's money that I could have put towards something more fun, but instead I had to keep my house from falling apart.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
It is, yeah. So what about overspending amongst Americans? What are we regretting there? Yeah.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
And a very happy new year to you too, Sean. So did you all blank sign your way into January?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
The question is, do they regret overspending on their own wedding or attending someone else's? The survey didn't ask that, but... That would be an interesting one to ask for sure. That could be a future question we ask for sure. Because, you know, it's really expensive to attend other people's weddings too.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
What advice do you have to make sure that these kinds of regrets don't repeat themselves in 2025?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I do that with dining out. Me, a number of years ago, was still buying lunch outside of the house and getting takeout for dinner or going out to eat more often than I do now. I think back on how much that cost me over like a five-year period. And it's wild. And now it costs so much more to dine out. I feel like you go out for a burrito and you end up spending $20.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Me neither. But I remember that line from When Harry Met Sally, though. Millennials, you know what I'm talking about. Older than that, you know what I'm talking about. Gen Z, When Harry Met Sally is a great movie and you should watch it. Anyway, you know at the end, they're at a New Year's Eve party and she says that she thinks that song is about old friends. So I'll buy that.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
For me, cook on weekdays, take out on weekends. One other thing I see from the survey is that another regret that we have in spades has to do with credit scores. So let me guess, they are not high enough because I can't imagine regretting having a perfect credit score.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Confidential out there for people who have an 825 credit score. You don't have to do 850. It's okay. You can stop. Right. Right. You're doing great. You're doing great. Celebrate it. Enjoy it. So let's ask for this one as well. What's some simple advice to make sure that this regret doesn't repeat itself this year?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Something I always tell people who are struggling to remember when those credit card bills are coming, you can do a couple of things. You can set up alerts through your credit card account, log in online or log in on the app, and it can text you or email you when your due date's coming up. You can even set up auto pay, even if it's just the minimum amount.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
So, you know, you're making that minimum payment, you're making that payment on time, and then you can go in and manually pay more. Or if you have the money in your bank account, go ahead and just pay your entire bill. Even better, staying out of credit card debt, because that's a huge regret. It just really automates and takes things out of your mind.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I'm a huge fan of doing that because people are busy and you just forget when stuff is due. So set up those alerts, make those auto payments, and also pay your other bills on time, like cell phone bill, rent, utilities, because there are times that those are reported to credit bureaus too. So you want to be on time for everything, not just your credit card bill. Great advice.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Up next, we're going to talk about some money resolutions that you might want to implement to try and avoid financial regrets this year. That's coming up in a moment. Stay with us. Elizabeth Renter, here we are at the start of a new year. And I don't know about you, but I hate New Year's resolutions.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I do because it's just something that's going to end up with me being disappointed in myself for not following through in about three months time. So I think I remember at this time last year, you were saying the same thing on this very show.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Yeah, I'm sort of a week by week kind of person.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I lift weights and I tell myself, okay, I just do it three times this week. And some weeks it happens and I'm proud of myself. And some weeks things get in the way. Work is too busy. I get sick. I hurt myself. So I have to scale back, something like that. Lower back pain is real at my age.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
If I take it week by week instead of for the entire year, I can account for all the things that happen on a regular basis that sometimes can get in the way of meeting your goal and be forgiving of myself when that does happen.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
What? So now you have a goal for 2025 watching that movie.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
So how about we frame this as just some really smart stuff that folks can do? to help themselves financially over the course of the year. You're not promising that you'll do it, but you're gonna work toward these goals. Week by week, minute by minute, hour by hour, whatever. Let's start again with saving.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
What are some top tips that you have for people who want to stuff their savings accounts this year?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I definitely do this with some of my savings goals. I have automatic transfers from my checking account into like my general savings account. I also do automatic transfers into an account that I earmark toward mortgage payments, another one toward daycare payments. That way I know that the money's going where it needs to go. And whatever's left in my checking account, I can spend.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Hopefully there's a lot left, but sometimes it's a busy month. Yeah. Listeners, if you are saving toward any sort of specific goal, who isn't really? NerdWallet has a free savings calculator that will help you understand how your money can grow over time.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Well, this is kind of a three-year goal, but we're saving up to eventually finish our unfinished basement. Otherwise, I have some travel goals, which are sort of like money goals because travel costs money. I just booked a trip with an old friend. We're going to escape from our children and just hang out and eat, drink, and be merry. Also trying to plan a trip with my family too. What about you?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
You plug in your starting balance and your contribution amount and the annual interest rate on your account and how much time you plan to spend saving. And it'll show you your total balance at the end of your saving journey, which can be really helpful in motivating you to hit that goal. I love a good calculator. They're like my bread and butter.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
If you love a good calculator too, we will link to that in the show notes, or you could search online for nerd wallet savings calculator. Let's turn back. Let's flip that coin back over to spending. We've already talked about savings again.
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
We shared a bit earlier on how not to overspend, but what are some other tips and tricks that you have for making sure we're spending wisely throughout the year?
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
I really think that one common way people end up spending more than they think they're spending is because they use credit cards. And it's so easy to put everything on your card and then all of a sudden you see your bill and you have that momentary freak out where you just racked up all of these purchases. You don't even remember half of them. Now you have to pay them off and it's the worst. So
NerdWallet's Smart Money Podcast
Regret Less, Save More: How to Make Smarter Money Moves in 2025
Obviously, a key thing to do here is budget for these kinds of costs. But what sorts of mental tips can people use to check in with themselves, not just when the bill comes, but throughout the month when they're reaching into their wallets and taking out a credit card?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Today's episode is sponsored by Amazfit. I've been wearing the Amazfit Active 2, and it's basically like having a personal assistant for my health. Except it doesn't judge me for hitting snooze three times. It's also a game changer for fitness. It combines AI-driven coaching, smart tracking, and premium features without the premium price.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
So let's look at Erin's example here. What would they want to think about when looking at these options for placing their money?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
But first, we're going to talk about a significant nationwide issue coming up in the aftermath of the fires in and around Los Angeles. In fact, an issue that's been building with each weather-related catastrophe. It's the skyrocketing cost of home insurance.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And now what about money market mutual funds? If someone does decide to put their money into one of these investment accounts, is getting your money from one of those accounts as easy as getting it from a money market deposit account or a high yield savings account?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Fortunately, our job here at NerdWallet is to make decisions like this easier, so I do want to mention that we have articles on the best high-yield savings accounts and the best money market deposit accounts on NerdWallet's website.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
You can check the NerdWallet rating, the APY, and any relevant bonus offers for each account, along with some of that other information we just talked about, like minimum balances and fees. And if you want, you can also look up money market mutual funds as well. We'll put links to those articles in today's show notes.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And let's talk a bit about the role of FDIC insurance here. Can you lay that out for us, Margaret?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And again, to get back to Aaron's question, it seems like they're making this apples to oranges comparison. They say they can get a return of 4.78% on their investment account, while savings accounts may offer a yield of closer to around 4% as of this recording. I want to quickly state that each account would serve a different purpose.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
It's generally not a great idea to have your savings in an investment account in case you do need to draw on that money in an emergency.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
So the lesson here is to do a bit of research to find those higher returns for yourself. They could go in either direction with these options.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
We're joined now by Caitlin Constantine. She oversees home insurance coverage here at NerdWallet. Caitlin did a special series for us back in the spring of 2023 on the financial ramifications of climate change. We did an entire episode on what was happening with home insurance in the wake of floods, hurricanes, fires, tornadoes, and everything else Mother Nature throws at us.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Margaret, thank you so much for coming on and clarifying all these different accounts and who they might be best for.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
That's all we have for this episode. Remember, listener, that we are here for you and your money questions. So turn to the nerds and call or text us your questions at 901-730-6373. That's 901-730-NERD. You can also email us at podcast at nerdwallet.com. Visit nerdwallet.com slash podcast for more info on this episode.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And with that said, until next time, turn to the nerds.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
So we're getting the latest on this to help you cope with a future that is rapidly changing. Caitlin, welcome back.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Unlike other wearables, Amazfit goes beyond basic fitness tracking. It has specialized modes like High Rocks Race Mode, Smart Strength Training, and even Free Diving, built for both everyday users and elite athletes. And with AI-driven coaching, it adapts to your workouts, tracks recovery, and helps you train smarter.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And just last month, California's insurance commissioner released new rules that were supposed to bolster the insurance market in the state. Where might that play out in this recovery effort?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Kaitlin, I know you have some personal experience with this issue. You live in Asheville, North Carolina, where Hurricane Helene brought so much destruction last fall. What have you seen in insurance rates in the wake of natural disasters that hit where you live?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
There's also a free ZEPP app you can pair it with to get in-depth analytics and downloadable maps you can use with turn-by-turn directions. And it has Zepflow AI voice control, so you can check stats hands-free. And don't worry about battery life. The Amazfit Active 2 runs up to 10 days on a single charge.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Let's talk about what all of this means for the cost of housing in this country. How do insurance costs play into the rising price you have to pay for a house or even to rent?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Let's get to some practical advice for folks who are facing, or very well could face in the future, some soaring insurance bills for their homes. Caitlin, can you give us three or four top things people can do right now to try to lower those bills?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
If you want a smartwatch that delivers more for less, then visit amazfit.com slash smartmoney to get 10% off. That's Amazfit, A-M-A-Z, fit, dot com slash smartmoney. Insurance is designed to protect you from financial ruin when unlikely but potentially catastrophic events occur.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Caitlin Constantine, thank you so much for helping us out today.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
But before we get into that, we're going to ask you, nerdy listener, to pause, literally, perhaps, to think about where you need some guidance with your money.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And a reminder that one of our goals on Smart Money this year is to talk with more of you live on the podcast to help you with your money questions. If you want to hang out with Sarah and me for a bit and get some nerdy wisdom, let us know. One more time, leave us a voicemail or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And you can always email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Today's episode is sponsored by Range Rover Sport. Some decisions in life require careful research, like picking the right investment strategy or figuring out which streaming service actually has the movies you want. But when it comes to driving, there's one decision that's easy — the Range Rover Sport. It's a bold take on sporting luxury, blending sophistication with power.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
On the road, adaptive dynamics keep your ride smooth and composed by reducing unwanted body movements. Because, let's be honest, the only thing that should be unpredictable is the stock market, not your suspension. When the road changes, the Range Rover Sport changes with it. Dynamic air suspension adjusts to keep things smooth and balanced, so every turn feels effortless.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And if the pavement disappears? No problem. Adaptive off-road cruise control kicks in, reading the terrain and making real-time adjustments, so you don't have to spend your drive making more calculations than your tax software. Visceral, dramatic, uncompromising. The Range Rover Sport leads by example, just like you do. Build yours today at LandRoverUSA.com.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Again, explore the Range Rover Sport at LandRoverUSA.com. We're back and answering your money questions to help you make smarter financial decisions. This episode's question comes from Aaron, who sent us an email. Here it is. Hi, NerdWallet team. I wanted to reach out and share some thoughts on a topic I know you cover often, high-yield savings accounts.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
As someone who invests across platforms, primarily with Vanguard, I've noticed that their Vanguard Federal Money Market Fund, while requiring a $3,000 minimum, consistently offers a higher annual return than most high-yield savings accounts. This raises a question in my mind.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
This episode will help you understand how to think about protecting your home and other assets with insurance as climate disasters increase in frequency. Welcome to NerdWallet's Smart Money Podcast. I'm Sean Piles.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Aside from the convenience of short-term liquidity for bill payments or direct deposits, is there much advantage to high-yield savings accounts? The money market fund has no cap on purchases, is FDIC insured, and currently offers a 4.78% yield, which seems to outshine high-yield savings accounts for similar security.
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
Hey Margaret, so let's start with the basics. What is the difference between a high-yield savings account and a money market account? Let's start with the money market account. What is it and where and how do you get one?
NerdWallet's Smart Money Podcast
Rising Insurance Costs and Choosing the Best Savings Account for Your Money
And a high-yield savings account, this might seem obvious, especially because we do talk about them a lot on this show, but let's define those as well.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Well, I still have my skinny jeans and my low rise socks.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah, Abigail, good luck navigating all of this, and I hope that it gets better for you soon. If you are looking for more ideas for building your credit, NerdWallet has an article called How to Improve Credit Fast. Couldn't have named it better myself. We will put a link in this episode's show notes, or you can also search online for NerdWallet How to Improve Credit Fast. Easy peasy.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Sorry, Gen Z. I'm just going to be a millennial. It's fine.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
We're going to move on to the next question. Here is one that Samuel emailed to us. Hello, I have rented from small landlords for many years and I'm looking for a way to get my rent payments reflected in my credit score. I called TransUnion and they directed me to three rent reporting companies, RentReporters, Rentrack and Datalinks that charge sign up and monthly fees.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Is there a way to do this for free?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
So Amanda, for those who aren't familiar with credit freezes or need a refresher on why we're big fans of them here at NerdWallet, can you please give us a brief primer on what a credit freeze is?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Well, you can make life easier for us if somebody from NerdWallet will just show up and then take your stuff to the post office for you. We just don't have that kind of time, listeners. I'm sorry. You're going to have to do it yourself. All right, moving on to our final question. This also comes from a listener's voicemail.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
That's good to hear because, honestly, you were getting pretty bleak there for a moment.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
That's really helpful context. I feel like credit scoring is such a mystery. So hopefully those of you who are listening who are wondering about that understand this a little bit more. So what does this mean for our listeners' credit scores?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Well, Amanda, thank you so much for helping us answer our listeners' questions in this lightning round. No problem. Thanks for having me, y'all.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah, I hate them. Go on.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Not only is this form of consumption bad for the planet, but it's hurting people's finances too. And it's just for this fleeting moment of excitement to post on social media and then have it disappear into people's algorithms almost immediately.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
If there's something specific I'm looking for, I try to find it secondhand before I go shopping for a new version of it. This is especially true for kids stuff. Oh my God, there's so much kids stuff and it's all plastic and it's all used for like two seconds before the kid just stops using it.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Whatever specific toy you wanted to buy your kid, somebody probably already bought it and now wants it out of their house because their kid outgrew it. Look on Facebook Marketplace. Look on Nextdoor. Ask your friends who have older children than you. There might be some stuff out there that is in excellent condition that would make great gifts for the kids in your lives.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Or if you're thinking about furniture, I'm a huge fan of antiquing. I love antiquing. I also live in a house that was built during World War I. So for the vibe that I have created in my home, it makes sense to have furniture that spans various decades. But also, you get better quality furniture for the money, significantly better. I'm talking real solid wood, well-constructed stuff.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
You don't get that in furniture stores these days.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah, all the scratches on it tell a story. And, you know, honestly, the stuff that they sell now in furniture stores is the same engineered wood you'd get in Ikea, but they have the nerve to charge like $1,800 for a dining table now. What about you, Sean?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
It can be hard to tell what you can buy that will actually stand the test of time, especially now where things seem to be more poorly constructed than they used to be. Have a plan for giving things away to friends or strangers in your neighborhood, leaving things at the curb so somebody else can take them. I live in a college town, so that's pretty popular.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
If you find that items that you bought are now just taking up space in your closet, free them to find a new home instead of just letting them sit and collect dust. And that way you're making more space in your home for the things you're actually going to use. And you are giving all of your old things new life with somebody else. Another thing, don't give a gift of stuff. Give a gift of experience.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Maybe that nephew that you don't want to buy plastic junk for anymore, you can take them out for a movie, buy them some popcorn and candy. You can buy their parents a membership to the local children's museum, which is the gift that keeps on giving when it's cold or rainy outside, let me tell you. There are so many things you can get for somebody that is a thing that you can do together or a
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
And I'm Sarah Rathner. This episode, we take on a number of your questions about credit in a lightning round. We'll talk about how to get rent payments counted toward your credit score, how to recover from a missed payment, and we'll clarify a bit of credit myth busting we did earlier this year.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah, you know, she loves it. And it's a frugal labor of love for you. You're not just giving the physical object, but you're also giving all the time and love and energy that went into it from growing the peppers to making the sauce. I love homemade consumable gifts because they're delicious. And also, they are a way to show your love.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
For me, it's not so much hot sauce, but I do make really good rosemary brown butter chocolate chip cookies. Ooh, wow. With rosemary I grow in my own garden, that's usually my go-to when I need to make a big batch of cookies and give them away. That sounds delightful. They are delightful.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
All right, we can do it.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah. They're not always legit.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
But for the most part, if you find a lot of reviews for something, they can really save you from yourself. Another tip that's worked for me to keep temptation at bay is unsubscribing from marketing emails. You buy one blessed thing and they just spam you for the rest of your life and it's really annoying.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
If I don't get a company's emails and therefore I am not aware that they're having a sale on something I don't need anyway, I'm less likely to go to that company's website and buy stuff. That for me is a really easy way to avoid this internal struggle with self-control and spending.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
And honestly, my favorite Black Friday activity is unsubscribing from company emails as they land in my inbox because you know they all come on Black Friday.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Solid advice. Although if you find an expensive sweater that is of a timeless design and you can enjoy it for many, many, many years to come, you can buy it. It's okay.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
You have my permission. I have some old sweaters from H&M of all places from the first Obama administration that are still going strong. Sometimes fast fashion, it used to be better than it is currently.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah, they've passed the like three administration test. Yeah. I go by presidential administrations instead of yours. Anyway, I think we're about ready to move on to this episode's money question segment. But first, listener, you know what time it is. It's time for you to pause, perhaps literally, and think for a brief moment about your money.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
What's that nagging financial question or financial issue you have going on that you need a little help working through?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
And next year, we'll be talking with more of you on the podcast than ever before. So if you want to chat with us live on Smart Money, let us know. One more time, leave us a voicemail or text us on the Nerd Hotline at 901-730-6373. That's 901-730-NERD. Or email us at podcast at nerdwallet.com. Now, let's get on to this episode's money question that's coming up in a moment. Stay with us.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Honestly, a new package arrives and I'm like, what now?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
And recovering from a credit score mistake is a little more complicated than just putting a quarter into the slot and playing again. Sean, I know that you are deep in your video game era lately, now that you have all this newfound spare time. Do you have any credit cheat codes for us?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
I'm so happy to be back here with you both. All right, let's get to our first question, which comes from Abigail, who sent us an email. Here it is. Hi, I missed some payments on my mortgage due to an auto draft problem when my mortgage company went to withdraw the funds. Then they stopped the auto withdrawals and started sending me notices of missed payments.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
However, they had my wrong address on file, an address where I have never even lived, so I didn't receive these notices. I have since paid all the missed payments and I'm up to date. I had a great credit score before this and now it's in the tank. Any ideas on how to best go about getting my credit score back up and running and the best way to dispute my credit score? Thanks, Abigail.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Yeah, but I am enjoying the pair of AirPods that I got on sale because tangled headphone cords is the worst.
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
That is tough. So what tips do you have for Abigail to better their credit score? Do they have any chance of reversing these negative marks?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
And are there any other steps that our listener can take to resolve this situation?
NerdWallet's Smart Money Podcast
Deck the Bills: Smart Spending and Credit Tips for the Holidays
Now I can walk down the street looking like that jerk with the AirPods.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
To give you a shortcut to that shortcut, we are joined by investing nerd Sam Taub and mortgage nerd Holden Lewis to share what they chose as the best product in their areas of expertise and why. And Sarah, who writes about credit cards, will talk with us about what makes a travel credit card the best this year.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
And a quick heads up that we'll talk about some NerdWallet partners in this conversation, but that does not influence how we discuss them. So Holden, Sam, welcome back to Smart Money. Hey, it's great to be here. Good to be back.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
A lot of people are familiar with Fidelity. I use the Fidelity app and I like that it just works. You know, it's not fussy or trying to push some newfangled features on me. What makes Fidelity the best for you? And what was the process for deciding that Fidelity is better than another similar product?
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
I'm Sean Piles.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Yeah, that's some pretty solid evergreen advice for any kind of financial decision. Read over the form a couple of times to make sure that you didn't check the wrong box. Absolutely.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Holden, you mentioned that NerdWallet's algorithm selected U.S. Bank. Can you explain for listeners what that means that NerdWallet's algorithm chose this bank?
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
I went to Chicago to meet up with my twin sister for a little belated birthday celebration. We happened to be there during Pride Week, which was super fun. And I enjoyed it all the more because I wasn't paying some $700 in flights, and my sign-up bonus covered that. So it felt pretty great.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Well, last summer, I used credit card points from a sign-up bonus to pay for the flights of my summer vacation. Not sure that was life-changing, but it did save me several hundred dollars, which was pretty sweet.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Sarah, you are up. Since you're the credit card whiz, what's the best travel credit card of 2025, and what makes it better than the rest?
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Especially in June. It is basically a beach town, which people do not appreciate. So I'm here to spread the gospel. Chicago's great in the summertime.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
I think this news will come as no surprise to anyone who's in the travel credit card space. The Chase Sapphire Preferred was my first travel credit card when I began to dabble in the points game because way back then, I want to say almost nine years ago, it was ranked among the top travel credit cards. How has this card managed to stay competitive throughout the years?
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
But to your question earlier, the credit card that I had at the time made the vacation all the more feasible, which is why we're going to talk about why having the right financial product for you is really important and why it's so important to shop around for the right tool to help you meet your goals.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Holden, Sam, Sarah, thank you for sharing your insights about the best financial products of 2025. My pleasure. Good to be here. Listeners, if you want to see more of the best of winners, visit nerdwallet.com slash awards.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
Maybe you want to learn more about which travel credit card is right for you, or you want to switch over to a new brokerage account, but want to minimize the tax implications. Whatever your money question, leave a voicemail or text us on the Nerd Hotline at 901-730-6373. That's 901-730-NERD, or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
The Best Financial Products of 2025 and Investing in Collectibles
We're about to turn to this episode's money question, but first, we have an exciting announcement. We're running another book giveaway sweepstakes ahead of our next Nerdy Book Club episode. Our next guests are Jen Smith and Jill Sirianni, authors of the new book, Buy What You Love Without Going Broke, which focuses on how to be smart about spending.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Thanksgiving is in 10 days. Wow. This year has flown by and also gone very slowly. If you haven't finalized your menu yet, honestly, you're probably not alone. So Elizabeth, how are you spending your Thanksgiving?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Really going down the rabbit hole here, everyone.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
And while we also did not factor in the cost of going out to a bar the night before Thanksgiving to give yourself the emotional fortitude to deal with the next few days, especially if you have house guests in your house for weeks. Not okay, guys. Go home. Now, here's the thing. We cannot stop your great aunt from asking you when you'll finally get married or whatever.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
So we've confirmed that this particular institution is a bank. And we've also learned a little bit about how to tell if other institutions are banks if it's not immediately clear. How would you confirm a neobank?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
All right. And since we're already on this magic school bus banking adventure, maybe we could also check out a neobanks website, too, just to see what it looks like. How about Chime, since you've mentioned them earlier, Spencer?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
But we can try to save you some money on the cost of holiday hosting. So at least if you have any awkward conversations, it'll be easier on your budget. So, Elizabeth, start us off.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Spencer, do you think it's wise for people to just avoid using neobanks and instead opt for an online bank instead? Or do you still see a use case for neobanks given the risk?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
All right, Spencer, this has been such an educational experience. Thank you for joining us today and taking us on this journey through the world of banking, or in some cases, not really banking.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Yeah, not only is hosting expensive, but it takes a ton of work. And if you cook the whole meal by yourself, by the time your guests arrive, you will want them to immediately leave so you can go lie down. Ask me how I know this.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Moving on to tip number two, for anybody hosting overnight guests, don't forget to budget for extra food to have around while they're visiting, especially if any of those guests are teenagers because they never stop eating.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Honestly, I have an 18-month-old and same. He also never stops eating. I don't know where it goes, but it goes out of my wallet and into his diaper, essentially.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
So not everyone feels comfortable asking guests to pitch in, you know, maybe the culture and your family or your social circle is one where hosting is this solemn duty and the guests are royalty in your home. And that's okay. But if it's hard on you, it's okay to change the culture a little bit within your own home asks for some help. You're not running an Airbnb. And you know what?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Even Airbnb hosts require guests to basically deep clean the property before a ridiculously early checkout time. So bring a little bit of that entitled Airbnb host energy to this holiday season.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Yes. If you use a credit card for holiday expenses, pick one that earns some cash back or travel rewards when you spend more than usual at the grocery store. It's like using a coupon and getting some money back.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
We have some NerdWallet holiday spending data for you. 28% of last year's holiday shoppers are still paying off their credit card debt from last year right now. Definitely be careful this time of year. There is so much pressure to spend, spend, spend on gifts, on food, on travel.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
How about you? Well, I plan to transport a casserole across several state lines and hopefully it arrives in one piece. But the beauty of most casseroles is that by design, they already look like they got shaken up in the car a little bit. Welcome to NerdWallet's Smart Money Podcast. I'm Sarah Rathner. And I'm Elizabeth Iola.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
You want to be cautious because this is something that can follow you well into the new year and make it hard to meet your other money goals. So yes, signup bonuses are awesome, but so is being debt-free. That's definitely something to shoot for.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
I will throw in a bonus fourth tip for anybody who's feeling pressure to host this perfect holiday gathering that looks good on Instagram, but really makes you want to lie down. I heard this term the other day called scruffy hospitality, and I'm kind of into it.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
So apparently it's this cutesy name, you know, like cash stuffing or one of those other TikTok things where you don't bend over backwards to clean your home so thoroughly before hosting that it looks like it's staged for an open house. Clean your bathroom and don't cook food in a dirty kitchen.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
But if your kids' toys aren't all put away or there's like unfolded laundry on your bed, it's okay to have guests over and have them see this part of your life because real life is better than faking it. If your mother-in-law is judgmental, she can fold your laundry for you. Yeah.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
We might not share them on air, but I just want to read them. Let's turn now to this episode's money question segment, where we learn how to tell if a bank is actually a bank. Because if it looks like a duck and quacks like a duck, apparently sometimes it's not a duck. That's coming up in a moment. Stay with us.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
We're back and answering your real world questions to help you make smarter decisions about your money. This episode's question comes from Jocelyn, who sent us a text message. Here it is. Hi, nerds. Last year, my partner and I put the bulk of our savings into a high yield savings account.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
We did some research before choosing one and landed on UFB as we saw it on the NerdWallet site, as well as Forbes and others. It has been a great financial move for us, and it's been amazing to have our money in an account that is actually accruing interest.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
That being said, I recently read a New York Times article entitled, What Happens When Your Bank Isn't Really a Bank and Your Money Disappears? And it freaked me out a little bit.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
If some of these online banks that failed were advertising themselves as FDIC insured, and yet it turns out that they really weren't due to the fine print of where the money is actually being held, how are customers supposed to protect themselves? As far as I can tell, the UFB service is offered under Axos Bank and is therefore insured through Axos Bank's FDIC certificate.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
But could UFB fail and not be protected if Axos is still a legitimate bank? feeling confused and a bit fearful of keeping my savings in an online bank. Please help. Love the pod. Thanks so much, Jocelyn."
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
And just before we get into this conversation, just a heads up for listeners that we'll be discussing a couple companies, UFB and Chime, which are both NerdWallet partners, but that doesn't affect how we talk about them.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
This episode, Sean and I answer a listener's question about how to tell a neobank from a traditional bank and how safe your money is if you go the neobank route. We even partake in a little real-time online research, which is surprisingly a lot more fun than it sounds.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
We should also help folks understand what a neobank actually is and how it's different from an online bank or your old fashioned brick and mortar bank with branches you could actually walk into. Can you lay out the difference for us, Spencer?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
I was shocked, but let me tell you, it was a lot of fun. We had a great time.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Okay, what I'm thinking about is how a lot of these neobanks are pretty new companies. Because of that, they might not have the most stable or proven business models compared to a bank that's been around for 200 years. And some of the banks we still use today have been around for that long. So that can make them more likely to fold than a bank that's been around for a while.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
So does that mean the money that people put in a neobank is totally vulnerable? Or is there some protection if the neobank goes bankrupt?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
So it seems clear that some folks might have a hard time determining if the money they put into a financial institution is actually covered by FDIC insurance. So how can someone really be confident that they're insured? Like our listener mentioned UFB Direct. Is that institution covered by FDIC insurance?
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
I do this all the time for credit cards, so this is definitely in my wheelhouse. Let's do it.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
There's 12 mentions, oftentimes referring to mobile banking. But if you go to the bottom, the fine print, it says bank products and services are offered by Axos Bank.
NerdWallet's Smart Money Podcast
Online Banking vs Neobanks: Understand FDIC Safety and Protect Your Money
Right now I'm leaning on no.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Hey, Sean, would you describe yourself as lazy?
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
And the taxes you have to pay on any investment profits, that's all in one go, right? So that could be potentially a pretty high tax bill all at once.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Something to budget for if you're considering going this route, of course. Shifting gears a little bit, we are heading into the end of the year, and a lot of people are thinking about how they can maximize their retirement contributions before the end of the calendar year. So what options do people have?
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Honestly, the thought of doing that work is daunting for many people, myself included, and it can keep you from getting started in the first place. If you're feeling stuck, going about investing the lazy way could be a way to get past that. One thing to try is setting a monthly investing budget and then depositing that amount into a brokerage account to be invested.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Well, Sam, thank you so much for helping us out today.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
And you may know that approach as dollar cost averaging. And as for what to invest in, you don't have to get in on the ground floor of the next hot stock. Index funds, exchange-traded funds, or target date funds are all perfectly fine options. Automate contributions into funds that match your goals and move on with your life. I invest in target date funds in my retirement accounts, for example.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
I like that they just sort of exist in the background doing their thing while I live my life.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Exactly. You know, rethinking your investment allocations every five or 10 years when it comes to your retirement accounts. Honestly, it's one of those tasks that you're going to forget to do. And then all of a sudden, you'll be five years from retirement invested like you were when you were 25 years old. And that might not be appropriate for you.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Sometimes, yes, I am. I love rotting on the couch as much as anyone, especially parents of young kids. You know what I'm talking about? After bedtime, couch rot time. It's great. I also make use of every moment I can get things done, either for work or around the house. But believe it or not, sometimes good things can come from being lazy.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Putting that stuff on autopilot is a really, really helpful way not just to save yourself time, but also to save you from yourself.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Sean, what is your advice for being lazy in a good way with your finances?
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
It is deeply millennial to still be on your parents' cell phone plan.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
That's true. That's true. I'm not on their plan, but yeah. So I have a similar system, cell phone plan notwithstanding. I have my checking account for a direct deposit of my paycheck, and I use that to pay my credit card bills and other kind of monthly bills like utilities and stuff.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
My high-yield savings accounts don't actually limit withdrawals, so I also use them in a way like a checking account at times. And my husband and I maintain accounts for specific purposes, like automated payments for the mortgage or our son's daycare tuition. Those are our two biggest expenses every month right there.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Yes, my husband and I do not have a joint checking account, hashtag millennial money management.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
All right. So that all makes sense to me because like I said, I manage my money similarly. But what I'm waiting to hear is what exactly is lazy about having all of these accounts because there's definitely some work involved, especially when you're setting it up.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
And I'm not just talking about whatever you're watching on Netflix after your kids go to bed.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
So basically order a pizza and while you wait, set up some accounts and automated transfers. And honestly, you'll probably be done by the time the pizza arrives and then you get to reward yourself with a pizza.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
One of our goals for next year is to talk with as many of you on the podcast as possible. So if you have a topic you want to chat with us about, let us know. It could be something big like buying a new house or something smaller like figuring out your own way to be lazy yet productive with your money. We're all ears.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
So one more time, leave us a voicemail or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
And I'm Sarah Rathner. This episode, I'm joined by our co-host, Elizabeth Ayola, to answer a listener's question about contributing to a Roth IRA when you're over the income limit, including when a backdoor Roth is a good idea.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Yes. And to help us answer this list of questions on this episode of the podcast, we are joined by investing nerd Sam Taub. Sam, welcome back to Smart Money.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
So what we don't know is how much our listener and their wife are earning this year. And Sam mentioned the figures for single filers, but for couples who are married filing jointly, which we can probably assume this listener is doing, the phase-out range starts at $228,000 to $240,000. So if any of our listeners fall between that range, they can contribute a reduced amount.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
But if they earn $240,000 or more, they can't contribute to a Roth IRA at all. And there is a calculation that people can do to determine just how much they can contribute if they fall within the phase-out range. But I'm guessing they don't want to do that math or they want to make sure it's done correctly. I know that's true for me. So in that case...
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
How should they determine what, if anything, they can contribute? Would it be best to just talk to an accountant?
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
What about our listeners' recourse if they did contribute more than they're allowed to? What are their options?
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
Well, we're going to talk about low effort ways to hopefully, no guarantees, grow your money by saving and investing. With investing, the hands-on approach involves a lot of research and attempts at timing the market just so. Or you tell yourself that you do that, but you really just pick investments based on whatever's in the news at the moment.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
So that's a lot. And I will actually say I did have one year where I over contributed to a Roth. And I got to be honest with you, I probably entered a fugue state while I just listened to what my accountant told me to do. And then I did it. And then I came out of that fugue state, having corrected the problem.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
It is really hard and get help if you are feeling confused and overwhelmed, because you definitely want to do this right.
NerdWallet's Smart Money Podcast
End-of-Year IRA Fixes Before Tax Time: Roth Contribution and Correction Strategies
So one other thing our listener asked about was a backdoor Roth IRA. Can you give us a super quick explanation of that? And is that an option for people who contributed too much to their Roth IRA?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Sarah, have you ever lived in another country?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
And let's talk about how expensive credit card debt is right now. What does the study tell us about how much people are paying in interest to carry this debt?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Yeah, by then hot might mean Vancouver, British Columbia. Well, in this episode, we'll help folks understand how to manage their money while living outside the U.S., Welcome to NerdWallet's Smart Money Podcast.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Ouch, and that makes it pretty easy to see how it can be hard to get out of credit card debt. And with that in mind, let's talk about a few ways to pay it off. The way I see it, there are three main routes. First, you could use a strategy to pay it off gradually, like the debt snowball or avalanche method. Next is deploying some kind of financial product, like a balance transfer credit card.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
And finally, you could tap professional help, like a non-profit credit counseling agency, or maybe even bankruptcy. Sarah, can you talk us through a couple of these options?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
What's that?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
That is super interesting, and it speaks to something fundamental about how we manage our money, which is to say that we tend to manage our money emotionally. We humans are not always rational beings, so no matter how we pay off our debt, we need to consider the emotional side of things as well as the nuts and bolts number side.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Sarah, what about other ways to pay off debt, perhaps without some side eye from people you know in real life?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
A lot of times folks think that they have to manage their debt on their own because they got into it on their own, and that feeds back into a cycle of shame that is often associated with having debt. So if you need help, please tap it. I want to go back to the emotional side of debt that this report explores. Two main things stood out to me.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
One is that people with credit card debt reported that they would pay it off once they earned more money. And this was true for those who were earning over $100,000 a year, as well as those who earn less. Another is that, for those who did carry credit card debt, 27% said that it was their number one stressor.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
So, a significant portion of those with this debt are feeling bad about it, but they will put off resolving it until they earn more. Now, I don't want to downplay how hard it can be to get out of debt, And smart money listeners know that we don't shame people for having debt.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
But putting on my CFP professional hat here, which I guess is glued to my head at this point, it strikes me that paying off this high interest credit card debt should be an urgent priority and shouldn't be put off until some nebulous future date when you are bringing in more money. What do you think, Sarah?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
But first, we will chat about something that's a little closer to home, as in the debt that U.S. households carry. NerdWallet's annual household credit card debt study just published, and it has some interesting findings that can help us understand the state of credit card debt in the US, including why folks have it, how they can pay it off, and how our emotions complicate the process.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Right. Like so many goals in life, maybe making a career change, starting a new exercise regimen, having kids, there is rarely a perfect time to get started. If it's a goal, make it a priority and make it happen. In the case of paying off high-interest credit card debt, paying it off can allow you to make so many other goals happen, like saving for retirement or buying a house.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
And we have plenty of great resources on the NerdWallet website that can help you do exactly that.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Yeah. But before we get into that, we are at one of my favorite parts of the show, the part where we ask you to take a second and think about where you need some guidance with your money.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
And a reminder that one of our goals on Smart Money this year is to talk with more of you live on the podcast to help you with your money questions. So if you want to hang out with Sarah and me for a bit and get some nerdy wisdom, let us know. One more time, leave us a voicemail or text us on the nerd hotline at 901-730-6373. That's 901-730-NERD.
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
Sarah, I know you've been digging into this study. What's the top line takeaway?
NerdWallet's Smart Money Podcast
What to Know About Managing Money Before Traveling or Living Abroad
So credit card debt is up just slightly year over year. What's driving the increase in debt right now? We know expenses like food and utilities have gotten more costly for folks. Are people using credit cards to cover necessities?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Luckily, there are financial planners who specialize in all different areas, not just, for example, small business owners, but your particular type of small business. And in any small business, succession planning is so important. Finding a way that you can transition out of the day-to-day operation of your business in a way that makes sense for you. Uh-huh.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And in your case, it sounds like a succession plan that you could execute more gradually over time. There are two resources we wanted to point out for anybody listening who is asking the same questions you are. If you are looking for a financial planner that specializes in a specific area, you can check out the Garrett Planning Network and also the XY Planning Network.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Both of those networks can connect you with fee-only financial planners. And also NerdWallet has content and tools that can help you find financial advisors.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Hey, everyone. Let's tell listeners how to avoid being a hot mess. Well, financially anyway, I can't help you if you're a hot mess in other areas of your life.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
So on average, about $20,000. That's a lot, so it's pretty forgiving. And even more forgiving, a lot of people would actually be OK if their partner has any amount of debt.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
I mean, luckily, there are benchmarks like these when it comes to retirement saving and also estimating how much you might spend in retirement versus how much you spend while you're still working full time anyway. play with a retirement calculator.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
We have a good one at NerdWallet, and that can help you map out a couple of different scenarios and maybe start formulating some ideas with real numbers behind them. Many people can live off of around 70% to 80% of their pre-retirement income in retirement because there are some decreased costs. A lot of times, people are no longer paying a mortgage.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
That's not always the case, but in many cases, if you've lived on the same property for a long time, it could be You're not paying payroll and social security taxes. Work-related expenses like buying equipment or if you work in an office like dry cleaning, parking, things like that are no longer a factor.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
But you are potentially paying more for travel if that's part of your plan, but also for healthcare because that's the unfortunate reality is healthcare costs obviously go up for many people as they age. And so there are some interesting benchmarks for many people saving between 10 and 15% of their gross income is a good goal. you may want to save even more as you get close to retirement.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
So in case you have some catching up to do, this can help you increase your likelihood of hitting your goal number.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Me too, but I think what I'd also be looking for in a potential partner is what sort of plan they had for dealing with their debt. If they're paying it off, if they're not asking to borrow money from me, I mean, I would consider that a green flag or maybe at least a beige one.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
85% of Americans say that financial responsibility is an important quality in a romantic partner. Hard agree with that, of course. I'm one of the 85% for sure.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
What does that mean? What is financial responsibility in this context? So that includes things like living within your means, saving toward your goals, investing for the future. If you put it another way, few people are attracted to overgrown children who can't handle the logistics of their own lives.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Yeah, if that sounds pretty harsh, well, maybe this is a wake up call for some of you out there who can't handle the financial logistics of your own lives.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Well, as we've said, the fact that you're in debt for any reason is likely not going to hurt your dating prospects, which is a good thing because, like we also talked about, there are a lot of reasons why people end up in debt that have absolutely nothing to do with their character. But prospective partners like to see progress on financial goals. Are you making regular payments towards your debt?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Are you adjusting your spending habits to free up more of your cash every month to pay off your debt more aggressively? Those types of actions communicate to other people that you're not sticking your head in the sand. You are addressing your debt head on.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Yeah, and just because the red flags are entertaining from the outside, just when you're living it, it's not great.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
I want to mention that. But a big thing is honesty, being honest about your financial situation, being honest about your plan to pay off your debt and meet all of your financial goals. Those are the green flags. People just want to know that you're going to be a life partner, not a financial burden.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
But if you lie about how much debt you're in, if you lie about your financial situation, big waving red flag right there. Around two-thirds of Americans say they would not continue to date somebody who lied about how much debt they have.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Yeah, if you happen to be the one who's in debt, it's totally fine to use dating as a motivation to get out of debt. But ultimately, pay down that debt as a gift to yourself, not to somebody else. Because if anything, if you do find a partner later on, you'll feel more like you have your life in order and you have more to give to another person.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
But even if you don't find another partner later on, then you've done yourself the tremendous service of paying off your debt and gives you lots more options in life. I'll also say something to all those couples out there who struggle to talk about money.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
A big thing to do is to try to create a culture of safety within your relationship because it's really hard to be honest about being in debt if you think your partner is going to judge you instead of hear you. If you're safe to talk to, your partner will talk to you.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And if they lie to you, it could actually be because they're a dishonest person, but it could also be because you can't handle the truth and they're afraid to tell you the truth.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Before we get started, I just want to remind you that everything we talk about today is just for educational purposes and is not specific financial advice. And while Sean is a CFP, he's not your CFP. So does that sound good?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
All right, great.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Tell us a little bit about the farm itself. So before we get into all the money stuff, give us an idea of your work.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
Are these to like restaurants and other clients like that?
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
I feel like that's really common for small business owners, regardless of what industry you're in. When you first start the business, it's very informal when it comes to managing your personal finances and your business finances. And then as you become more established, you formalize things more and more.
NerdWallet's Smart Money Podcast
Debt in the Dating World and Retirement Planning for Entrepreneurs and Business Owners
And then you begin to do things like pay yourself a salary rather than just take money when you need it, things like that, and handle your accounting differently and your accounts differently. I think listeners who maybe don't run a farm, but who do run a small business can see a lot of themselves in your experience.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
All that's left, I think, is the CFPB board makes you walk over some hot coals and then wrestle a lion.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
It's important to get clear on what you actually want from a refinance. Like, what financial goal will refinancing accomplish for you? Because it takes a bit of work, and as we said, it costs money. And with mortgages, there are a few different ways you can refinance, and each might help you meet a different goal. Kate, can you give us a rundown of what options people have?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Can any kind of mortgage be refinanced or are there limitations?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
And then maybe, maybe they'll consider.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
If you work for the CFP board and you're listening to this, I hope you found that funny.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Yeah, I will say when I refinanced my mortgage a couple of years ago, I definitely compared a few options. Thanks to NerdWallet's comparison tool. I don't just work here. I also use our tools. What can I say? My original lender said, hey, tell me what you find and I will see if I can beat it. And we went to him with what we were approved for by other lenders.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
We went with one bank and one credit union and he said, I can't beat that pleasure doing business with you. And so we went with the lender that got us the lowest rate. It's definitely a process that takes a little bit extra time to see what your options are, but that really can help you feel comfortable that you've gotten the best deal possible.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
homework is worth it and if it's the right time for you then definitely put in the time because you'll be happy you did another thing our listener asked about credits or opportunities to make a refinance no cost is that even possible no closing cost refinances are basically the free launch of mortgages really there is no such thing you will sometimes see lenders offer no closing cost refis but realistically
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Let's take these questions one at a time. What does it mean to lock in the rate of a HELOC? And when is it a good idea to do so?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
For financial planning purposes, it sounds like a fixed rate loan might be better because you know what you're going to be paying on this line of credit. Is that actually the case? Or is it sometimes the case that a variable rate HELOC would be the better option?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
That was a lot about refinancing and home equity. Kate, do you have any other thoughts that you would like to leave listeners with as they consider whether or not to make changes to their existing loans?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Great advice in general, not just for refinancing, but for so many things when it has to do with your money. So Kate, thank you again for joining us. Thank you for having me.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
That's sort of how it always goes, right? Everyone's just trying their best to exist, perhaps even to thrive, regardless of what's happening on a wider scale.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
That sounds like a plan. Let's start with the most fun one, debt, yay. Specifically, credit card debt. We know that a lot of people are in a tough bind with credit card debt, and that can get worse over the holidays when there's a lot of pressure to spend money on stuff that may, frankly, end up in the landfill.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
In just a few months or a year, we actually happen to be recording this on Cyber Monday, so you might be sitting there with your credit card in hand on a website or
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Ready to buy some garbage. And maybe you should. Maybe you shouldn't. If you haven't looked at your credit card balances recently, carve out about 30 minutes sometime over the next week to eat your vegetables and take stock of what you owe if you have debt. Commit yourself this year to finding a path to paying it off.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
And I'm Sarah Rathner. And I'm so happy that Sean has returned to me. I'm back.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Those live, laugh, love signs aren't going to pay for themselves, Sean.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
That is a rich tapestry of a product.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
All right, so the silver lining with the recent interest rate cuts is that we can expect interest rates on credit cards to dip slightly. And the operative word here is slightly, because it's not like credit card interest rates are going to drop 5% overnight from a rate cut.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
More like roughly a quarter of a percent, depending on what the Fed does this time, which honestly doesn't actually make that much of a difference. in how much interest you'll owe, mathematically speaking. And I know that's not great news, but hopefully it just helps motivate you to chip away at that debt because whatever's happening in the news, that debt is still really expensive.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
I'm so happy. OK, we have been on a journey with you now for some time. Do you have some professional news that you would like to share with our listeners?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
I do keep an eye on what's offered out there, but I am happy with the rate on the savings accounts that I already have. So I am keeping my money where it is for now.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
For anyone hoping to secure a higher rate on their savings ahead of any potential rate cuts, another thing to look into would be a certificate of deposit or a CD. These can allow you to lock in a set interest rate for a set amount of time. But of course, there's a catch because there always is. You typically can't access the money in a CD before the term is up without incurring a fee.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
If you know you won't need a certain amount of money for, say, six months or a year, a CD could be a good option for you to get a decent return on your cash without the uncertainty of investing in the stock market.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Periods of inflation, market ups and downs, interest rate changes, over decades of saving for retirement will likely all experience these kinds of things multiple times. If you're investing in your company's 401k or an IRA and you have your money in a target date fund, you're probably fine to keep putting money away on a regular basis and just gradually build up that nest egg.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Though you may want to check on your account every couple of months just to stay familiar with your investment allocations, your account balance, all that good stuff. And also just make sure that your money is actually going into investments and not just sitting in cash in your retirement account. You want to make sure that it's going where you want it to go. And sometimes it doesn't do that.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Yes, if you want to make some adjustments to your investment strategy, these are all good things to think about. Or you could just be more like me and basically just dollar cost average with automatic contributions into my retirement account and my taxable brokerage account. And I have to say, for me, my lazy investing technique works. And there's nothing wrong with keeping it simple.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
But before that, listener, pause for a second and take a moment to think about where you need some help with your finances. As 2024 comes to a close, we know that a lot of changes are coming our way in 2025. And change comes with risk, but also opportunity. And as Sean and I just laid out, the best answer to your money questions can depend on the economic and political context of the moment.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Well, I actually already knew.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Whether you want help sorting out your budget, or you're just trying to figure out the best way to plan an international vacation this year, or you just want to hang out with me and Sean on the podcast. We're friendly. We want to talk to you. So let us know. One more time. Here's how to do that. Leave a voicemail or text us on the nerd hotline at 901-730-6373.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
And we texted a little bit back and forth while you were away because the news spread like wildfire amongst our colleagues. But obviously, all of our listeners need to know this stuff as well.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Or you can email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
Thanks so much for having me again. Let's get to the first question, which comes from a listener's email. Here it is. Could you please cover in detail how to know when to refinance everything about refinancing, like different types with different costs upfront or lender credits to make a no cost, et cetera?
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
I think a lot of us with higher interest mortgages are starting to feel like we should have a plan to jump into refinancing. I think you covered this in the past already, but a bit less comprehensively and tied to a different time and set of facts.
NerdWallet's Smart Money Podcast
Smart Mortgage Strategies: From Refinancing to HELOC
When might somebody be a good candidate for a rate and term refinance? Are there any reliable rules of thumb to follow?
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
I think they just kind of like pull everything out of the drawer and just shove a bunch of stuff into the drawer, unorganized, unfolded. And it's just like, well, this is clean and it fits. So it's good enough. Yeah, good enough. That's fair. Right there. Anyway, shout out to my book club. I know a few of you listen to this podcast and I'll see you at the January meeting.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Maybe if there's an app out there that gives you 20 bucks every month, you stick to your budget.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
I'd be down with that carrot. Even if our listener is super diligent about tracking their income and their expenses, I bet that there are times where money is going to feel tight toward the end of their pay period. So are there any ideas that you have for ways to maybe stretch their budget a little further so they don't run out of cash before the next paycheck hits?
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Also visit nerdwallet.com slash podcast for more info on this episode. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
And with that said, until next time, turn to the nerds.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
I think I want to curb the mindless phone scrolling that I tend to do in the evenings after I put my son to bed. If we're not watching a compelling TV show, then I tend to just zone out on my phone. And that's not really good for anyone.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
I just think it's such an easy pattern to fall into. And honestly, I just want to use my free time for other things. I want to read more books this year. Also, Severance Season 2 is airing on Apple TV soon. If you haven't watched it yet, it is definitely worth skipping the doom scrolling for. It's basically television that feels like doom scrolling all the time. It's great.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
It'll take that long to finish the X-Files.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Definitely worth it. Put it on your list for something next.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
As we all know, social media is a hot pile of garbage for many reasons. It encourages people to buy things that they don't need. Social media used to be how you found out that your high school bullies are actually living terrible lives now, and then you could feel better about yourself. Now, it's all just influencers peddling stuff.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Maybe a few of those influencers were your high school bullies, and then you could feel really bad about yourself. But honestly, I think we could all use a break from being sucked into this fake world. It's just manufactured to make you buy things.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Exactly.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
That's true. And I don't want to be a lab rat reaching for the cheese. So we're going to work on this. We're going to try and make this better.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
I use the royal way, Sean. You don't have to join me in it.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Sounds good. And Sean, is there anything else that you want to take off of your plate this year?
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Yeah, sometimes really strict parameters end up making you go way too far off the deep end once you give yourself a little bit of allowance. It's like when you first go off to college, you can really easily spot the kids with really strict parents because they're the ones partying the hardest. It's so true.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Yeah. I'm a busy person, so I always like the idea of doing fewer things. Welcome to NerdWallet's Smart Money Podcast. I'm Sarah Raffner.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
As it turns out, a little bit of moderation is a good thing. Instead of cutting yourself off completely from stuff, maybe ease off a little bit.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
If your closet's overstuffed, I kind of like this one-in-one-out philosophy. So every time you introduce something new to your wardrobe, you have to say goodbye to something you don't wear anymore. Donate it. Give it away. Honestly, I need to get better at that because I still have too many pencil skirts from, like, 2011.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
You know, I kept a pair of bootcut jeans thinking, oh, yeah, one day. And then I actually fit back into them, but they are so low-rise that I literally cannot wear them.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
All right, Sean, how are you holding yourself accountable?
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
And, you know, think about it this way. If you don't buy something, you can imagine that amount of money as money that you've saved because you didn't spend it. Transfer it to a savings or brokerage account, maybe.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
No, we're not. And I don't think anybody else is either because I actually recently read the stat that fewer than 10% of resolutions are actually successfully completed. Sorry, guys. You know, that sounds about right. My one resolution would be I kind of want to be better about drinking more water this year, which feels like a measurable goal.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Same. So everybody check back in with us in April. That's when I will lead an in-depth discussion of Severance season two, because I will have paid total attention to every episode and I will not have looked at my phone while watching at all. Yeah. Also, maybe I'll have a couple books under my belt, too.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
This year, we want to add more on-air conversations with listeners just like you. That's right, you listening right now. So if there's a money situation that you're working through, let us know. Whether you're budgeting for a home renovation or thinking about early retirement, let's talk about it. One more time, leave a voicemail or text us on the Nerd Hotline at 901-730-6373. That's 901-730-NERD.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
But first, Sean and I are going to indulge in a different kind of goal setting, picking one thing to stop doing.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Or email us at podcast at nerdwallet.com.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
To help us answer Sam's question on this episode of the podcast, we are joined by NerdWallet personal finance expert Kim Palmer. Welcome back to the podcast, Kim. Thank you for having me. I'm glad to be here.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
The thing is, I can't take credit for it. So I'm in a book club. And when we met in December, we went around saying something that we wanted to stop doing. And most answers honestly had to do with laundry because most women in my book club have a lot of kids.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Yeah, I did something like this not too long ago. When I was on maternity leave, what I wasn't expecting was short-term disability, which is the first six to eight weeks of your leave, if you're eligible for it, for me was paid in one lump sum.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
So out of the blue, I just got two months of my salary in my checking account, which was cool, but also a little confusing because, you know, how do you manage that much money at once? I wasn't expecting to be paid that much. So one thing I did was I transferred that amount of money to my high-yield savings account And then I set up automatic transfers every two weeks.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
I divided the money up by the number of transfers and I basically paid myself a paycheck out of my own savings account. And that way it was done for me the way that my paycheck normally is, just automatically landing in my checking account. I wasn't tempted to spend all the money at once or overwhelmed by it, especially at a time when I was like totally sleep deprived.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
That was a way that I basically faked a paycheck.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
And whatever is sitting and waiting in your high-yield savings account is earning more interest. So that's making your money work a little bit harder for you while it waits to be transferred into your checking account. Brilliant.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
All right, Kim, I can see how it would be really hard to track how much money you have left when you are maybe two months into your pay period and you have two or three months left to go until you're paid again. I mean, some people budget on a weekly basis or a monthly basis, but budgeting for five months, it just feels overwhelming.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
Yeah, nobody's giving up the idea of having clean clothes. It's not like that. But they wanted to stop folding things so perfectly. And one person even mentioned stopping the annoying task of changing over your kid's wardrobe when they outgrow a size or the season changes. And I felt that one in my bones because I just did that with my kid's clothes. And it's the worst. It's the worst task.
NerdWallet's Smart Money Podcast
Stop Scrolling, Start Saving: Better Habits and Budgets for 2025
So what strategies do you recommend so people can better manage their budgets over a longer period of time?
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
First, I want to applaud the awareness of the listener in identifying this pattern and repetitive cycle because that's a key first step. The next step is seeking advice to make a change in their financial journey. So they're already taking these steps and I think that's a great place to start.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
It appears that they are aware of what's leading to the debt, but perhaps despite their best efforts, they have not been able to break this cycle. Since it doesn't appear that it's due to an unexpected emergency or perhaps a matter of lack of funds, then I would urge them to consider perhaps seeking financial therapy.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
And this would be different from seeking the help of a financial coach or advisor who can help you with money management. A financial therapist can help you identify patterns or habits that you might have around money and dissect your relationship with money. And that can be especially helpful to helping you unlock different things that you might be doing or repetitive cycles.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
For some people, it can be really hard to admit that they might need a little bit of help. But the truth is that we all do now and then, and those who seek it can get to their goals much faster.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
I would have to speculate here, but it's possible that they might be rewarding themselves after paying off a mountain of debt because it sounds like that this is something that they do. They feel free to spend once they have paid off their debt and then the cycle continues. It's important to get to the root of why they choose to overspend when they get out of debt.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
Sometimes it's because you felt deprived for so long if you had a really strict get out of debt plan. And once you're out of debt, there's less of a risk to splurging or overspending, at least in the immediate form. A financial therapist can potentially help you get to the bottom of it. And it sounds like that's what the listener wants to break this cycle.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
It's important to note financial therapy does cost money, so that may present an obstacle when you're already struggling financially. But it could still be a worthy investment if it offers a long-term solution that can keep you out of debt and save you money over time. Consider the benefits that it might mean for your lifestyle, for your goals, or even relationships that it might be hurting.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
Once you're debt-free, ideally you have more wiggle room to do those things that you enjoy within your means, of course. So make sure that you have money earmarked for the essentials, but also make sure that you're leaving room for fun. Have a fun category or even a few for movie nights, date nights, vacations, or treats that align with your budget.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
And if you know you're impulsive, have a built-in plan for that. I've talked to experts who suggest giving yourself 24 to 48 hours before making a purchase if it feels impulsive. Not keeping your payment information on file for online shopping can also help you think twice about a purchase.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
And having a safe accountability partner that is more of a sounding board who doesn't offer an opinion can also be useful. It allows you to hear yourself out loud discussing the case for a purchase, and this way you can try to unpack whether it aligns with your goals and values.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
I think for some people, it makes sense to not use credit cards. It's a great idea to stop using credit cards for some people, especially if they know that they are prone to impulse spending. Research has shown that credit cards lead to overspending. So switching to debit or cash can help keep your goals on track.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
But if that's not ideal, not all merchants accept these forms of payment like cash, for instance, then you might want to keep a cash envelope with the money earmarked for those areas where you tend to overspend. For instance, if you overspend on dining out, then you have an envelope with a certain amount of money for that category. And once it runs out, it runs out.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
And this is one way you can stick to your budget. Also consider what might be leading to the overspending. Do you tend to overspend when you're sad, stressed, or feel some type of way? Or is it when you're scrolling through social media and those personalized ads get you? Or perhaps something else.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
Seeking help or assistance can also help you get to the root of it and also gain a new perspective on what you might be missing.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
I think it's important to set a financial goal. This is the main reason you want to live within your means. Perhaps you want to travel more or buy a house. Whatever the goal, let that be your motivation for staying on track. Having a realistic budget that includes those things you're going to spend on can also be useful. And don't be afraid to experiment with different types of budgets.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
The 50-30-20 budget can be a good place to start. It's balanced, suggesting that you put 50% of your monthly income towards needs, 30% towards wants, and 20% towards savings and debt repayment. You can also resolve to save a little each month for big purchases like a friend's wedding or a vacation.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
and track your spending to understand whether you're staying on the right path or straying from your budget. An emergency fund can also prevent reliance on credit. Even $500 to start can help lower the risk of going into debt.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
I just want to urge them to consider seeking help if they feel like they need that assistance to get to the root of different financial habits. There's no shame in asking for that help, especially if it's going to help you up level to meet your goals in the long term.
NerdWallet's Smart Money Podcast
The Price Isn’t Right: How to Stop Overspending and Stay Debt-Free
Thank you. It's been a pleasure.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
You talk about giving effectively. The CEP also talks about giving strategically. So what does that look like for individual donors?
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
So tax deductions aside, Americans are a very charitably minded bunch of people. And in 2023, individuals in the US gave over $370 billion. That's according to GivingUSA. And at the same time, it can be really hard to vet the sources that you're giving to.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
I'm thinking of all those GoFundMes that we see after myriad crises that pop up to support maybe an individual family or one person who's having trouble making rent. How can we balance giving to urgent causes but ensuring that we're not giving to somebody who isn't exactly what they seem?
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
That means so much because I think people really have really good intentions, but you also get it stuck in your mind. Hey, this is what this other person needs. So this is what I'm going to do. Yes. And it can be really hard to hear them say, I see that you want to help me and I'm going to tell you exactly how you can help me. Yes.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
It's really important to listen to that and give the help that's actually needed because sometimes help can end up being a burden on a community. Exactly.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
Giving to a charity can be a very personal experience because maybe you're giving to a cause that supports people who were displaced during a natural disaster in your home state. Or it supports people who are affected by a specific illness that you have a loved one who also has that illness. And so there are certain causes that touch your heart in a very specific way. That's right.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
It's very powerful. Can you think of any stories where individuals or families have been able to use charitable giving to make a real impact on a cause that they care deeply about?
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
All great lessons to learn at this time of year and any time of year, as we've discussed. Make it a year round thing. Grace Nicolette, Vice President at the Center for Effective Philanthropy. Thank you so much for joining us on Smart Money. Thanks so much for having me.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
And here's our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
We're back, and this episode, we are all about giving. Philanthropic giving, because Giving Tuesday is coming up. We know a lot of people are feeling generous this time of year, but what's the most effective way to donate to the causes that you care about?
NerdWallet's Smart Money Podcast
Travel Smart, Give Smart: Southwest Companion Pass and Charitable Giving Strategies
Grace, you mentioned doing a little bit of research into an organization's goals. But on the CEP's website, you also talk about how effective giving can start with knowing your goals as a potential donor. So if somebody knows that they want to give charitably, but they aren't exactly sure what they want to support, how can they get some clarity around that?