How to Choose Between Paying Debt and Investing After a Windfall

NerdWallet's Smart Money Podcast

NerdWallet Personal Finance

Business, Education, Investing, How To

4.2 • 665 Ratings

🗓️ 11 March 2024

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Learn from others’ missteps in our new segment, “My Favorite Financial Mistake.” Plus: balancing paying debt vs. saving. 00:39 This Week in Your Money: What can you learn from making financial mistakes? Should you save and invest or pay off debt when you get a financial windfall? Hosts Sean Pyles and Sara Rathner, along with their new co-host Elizabeth Ayoola, discuss turning financial blunders into learning opportunities to help you set up for future financial success. They begin with a candid discussion about their personal financial missteps, offering insights on mental accounting, the perils of emotional spending, and the importance of maintaining flexibility in your financial planning. 13:22 Today’s Money Question: Adam, a Colorado firefighter, joins Sean and Sara to discuss cash windfalls and long-term planning. They delve into the intricacies of choosing between paying off debt and investing in a 529 college savings plan, the merits of a zero percent APR balance transfer, and the joy of spending on memorable family experiences. They also explore long-term financial goals and the art of balancing immediate financial needs with future planning. They highlight the benefits of starting an emergency fund with modest contributions, the strategy of tackling high-interest credit card debt while saving, and the value of investing in life experiences. In their conversation, the Nerds discuss: financial planning, money management, paying off debt, 529 college savings plan, retirement savings, emergency funds, financial goals, investment strategies, credit card debt, high-yield savings accounts, long-term wealth creation, financial windfall, financial mistakes, educational savings accounts, budgeting, personal finance, managing finances, mental accounting, emotional spending, financial balance, financial empowerment, financial success, economic stability, budgetary slips, financial blunders, credit challenges, money missteps, financial faux pas, long-term planning, financial fears, and financial shame. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Prime Video brings thrilling entertainment.
0:03.0	Watch Heavyweight Detective Breacher, Season 3 included with Prime.
0:07.0	Exactly how much danger is this job putting me in.
0:10.0	Treat yourself to the lovably chaotic Bridget Jones mad about the boy available to buy.
0:15.0	Did you have sex? Did you have sex?
0:17.0	Did you have sex last night?
0:19.0	Yes! And it was amazing!
0:23.0	Whatever you're into, it's right here.
0:25.3	Prime Video.
0:27.1	Click or tap the banner to find out more.
0:30.1	Sometimes you have to learn your lessons the hard way,
0:32.9	and this episode will explore the good that can come from some of our worst moments.
0:41.0	Welcome to NerdWallet's Smart Money podcast. Our job today is to help you be smarter with your
0:46.4	finances, one money question at a time. I'm Sean Piles. And I'm Sarah Rathner. So listener, like Sean said,
0:52.8	this show is all about your money questions,
0:55.4	whatever financial decision you're pondering or mistake you're worried about. Let us know.
1:00.3	This episode, Sean and I talk with a listener about how they should use a windfall, pay off some
1:04.5	credit card debt, or invest for their kids' college education. But before we get into that,
1:09.1	we are dredging up our messy financial histories for a new
1:12.6	segment that we're calling my favorite financial mistake. In this segment, we're going to share
1:17.4	some of our financial missteps from the past and what we learned from them. And listener,
1:22.0	we want to hear your favorite financial mistake too. Leave us a voicemail or text us on the nerd
	...

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