Ask Paula: Should I Pull Money from My Emergency Fund to Invest or Pay Off Debt?

Afford Anything

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.6 • 3.4K Ratings

🗓️ 3 December 2021

⏱️ 73 minutes

🔗️ Recording | iTunes | RSS

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Summary

#352: Anna and her husband have volatile income, but Anna thinks that having 18 months of living expenses is unnecessary. She’s torn between paying off her student loans ($30,000) or investing the money. Mentally, she always figured she would pay off her debt first, but wouldn’t investing pay off in the long run? Charlotte and her husband are taking a phased approach to financial independence, where they need to bridge two gaps before they each turn 59 ½. How can they calculate how much they need at each phase? Elle has a retirement plan in place, but her company is adding a Roth 403(b) option soon. Should she stay the course or adjust her strategy in these last five years before retiring? Sara wants to purchase land and build her dream house by refinancing her rental property and turning her current home into a second rental. How can she improve this plan? Joe Saul-Sehy, my friend and former financial planner, joins me to tackle these questions on today’s episode. Do you have a question on business, money, trade-offs, financial independence strategies, travel, or investing? Leave it at here and we’ll answer them in a future episode. Get the show notes delivered to your inbox by visiting https://affordanything.com/shownotes 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.
0:11.1	Every choice that you make is a trade-off against something else and that doesn't just
0:14.7	apply to your money.
0:15.9	That applies to your time, your focus, your energy, your attention.
0:20.4	Any limited resource that you need to manage saying yes to something implicitly means you
0:24.7	are saying no to all other opportunities and that opens up two questions.
0:29.2	Number one, what matters most?
0:31.5	Number two, how do you align your decision making around that which matters most?
0:37.6	Answering those two questions is a lifetime practice and that's what this podcast is
0:41.3	here to explore and facilitate.
0:43.5	My name is Paula Pat.
0:44.8	I am the host of the Afford Anything Podcast.
0:47.6	Every other episode we answer questions that come from you, the community and my buddy,
0:53.8	former financial planner, Joe Salcihi, joins me to answer these questions.
0:57.9	What's up, Joe?
0:58.9	I'm in big trouble, Paula.
1:00.8	Why is that?
1:01.8	So Cheryl had knee surgery recently, which you know, my spouse Cheryl.
1:06.4	She asked me to get her lip stick and I accidentally gave her a glue stick.
1:10.6	A glue stick?
1:12.1	You gave her a glue stick?
1:14.1	Yeah.
	...

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