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Afford Anything | Make Smart Money Choices

Ask Paula: Should I Buy a House or Catch Up on Retirement Savings?

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Investing, Business

4.73.6K Ratings

🗓️ 11 February 2019

⏱️ 65 minutes

🧾️ Download transcript

Summary

#177: Imagine that your job is extremely well-paying, but you don’t enjoy it. You’d like to switch employers, even though this will probably require a paycut. But before you make the switch, you want to accomplish two goals: buy a home and catch up on retirement savings. Should you pursue both goals? Or should you defer the home purchase, given the potential future paycut? If you decide to pursue both goals, which one should come first? This is one of the five questions that former financial planner Joe Saul-Sehy and I answer in this week’s podcast episode. We also answer a question from a listener who’s self-employed and wants to contribute more to his retirement accounts. We talk to another listener who’s living on $600 monthly paychecks while maxing out his Mega Backdoor Roth contributions. We talk to a 22-year-old with an $80,000 salary who’s debating between paying off her student loans vs. investing. And we answer a question from a listener who’s wondering what she should do with 401k accounts from previous employers. For more information, visit the show notes at https://affordanything.com/episode177  Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

You can afford anything but not everything.

0:10.9

Every decision that you make is a trade-off against something else.

0:13.6

And that doesn't just apply to your money.

0:15.3

It applies to your time, your focus, your energy, your attention.

0:18.3

It applies to anything in your life that's a scarce or limited resource.

0:21.7

You need to manage your resources.

0:23.7

And so the question becomes too fold.

0:26.2

Number 1.

0:27.2

What matters most to you?

0:28.8

Number 2.

0:29.8

How do you align your daily decisions in accordance?

0:33.4

Answering these two questions is a lifetime practice.

0:35.6

And that is what this podcast is here to explore.

0:38.4

My name is Paula Pant.

0:39.5

I'm the host of the Afford Anything Podcast.

0:42.0

Every other week we answer questions that come in from you, the community.

0:46.0

And today, my buddy, Joe Saw-Sihai, a former financial advisor, is on the show to help me

0:52.0

answer these questions.

0:53.0

Hey, Joe.

0:54.0

Hey, I'm so excited that we're back.

0:56.7

We're back.

0:57.7

We're doing it.

...

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