More Money, More Priorities: Don’t Let a Bigger Paycheck Go to Waste

NerdWallet's Smart Money Podcast

NerdWallet Personal Finance

Business, Education, Investing, How To

4.2 • 665 Ratings

🗓️ 4 August 2025

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

New job, more income — now what? Hear how one listener is managing his Roth IRA, health savings account, high-yield savings, and more. Is it smart to use a Roth IRA like a savings account? How should you prioritize your money across savings, debt, and retirement after getting a higher-paying job? Hosts Sean Pyles and Elizabeth Ayoola answer a listener’s question about managing multiple financial goals and choosing the right accounts for short- and long-term needs. But first, they share their money hot takes, including Elizabeth’s thoughts on Buy Now, Pay Later (BNPL) loans and Sean’s interest in stronger pro-consumer protections in light of recent federal rollbacks. Then, they talk to listener Jake, who recently relocated for a new job and is navigating how to allocate his money now that he’s earning a bigger paycheck. Jake wants to know if it makes sense to use a Roth IRA for savings and how to simplify or optimize his mix of bank accounts. They cover how to prioritize emergency savings, retirement contributions, and future goals like a home purchase, all while avoiding analysis paralysis and making the most of high-yield savings accounts. Inspired to navigate your finances with an advisor? Use NerdWallet Advisors Match to find vetted professionals today at https://www.nerdwalletadvisors.com/match Learn more about NerdWallet Wealth Partners: https://nerdwalletwealthpartners.com/ Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header In their conversation, the Nerds discuss: how to use a Roth IRA for savings, Roth IRA withdrawal rules, high yield savings account vs Roth IRA, best high yield savings accounts, what is a CD ladder, Buy Now Pay Later pros and cons, budgeting after a raise, how to prioritize financial goals, how to automate savings, how to manage multiple bank accounts, closing bank accounts and credit score, best place to save for house down payment, emergency fund vs Roth IRA, what to do after getting a new job, student loan repayment benefits, HSA contribution strategy, how to save for a house in 5 years, budgeting in high cost of living area, saving for short-term goals, pros and cons of online-only banks, how to overcome analysis paralysis in finance, Roth IRA vs high yield savings account, how to choose a bank, CFPB budget cuts impact, FTC click-to-cancel rule rollback, responsible use of debt, financial planning for tech professionals, credit score impact of closing bank accounts, reverse budgeting explained, safe ways to grow savings, how to build financial peace, using automation in budgeting, HSA vs IRA vs savings, debt vs savings prioritization, how to start a CD ladder, and when not to invest money. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. 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	If you love free stuff, this message is for you. We're always looking for ways to improve the podcast, which is why right now, we're giving out prizes for seven lucky winners who fill out our listener survey. It only takes a few minutes and you'll be entered to win some really cool prizes. One winner will get a pair of Sony ULT Wireless Noise Canceling Headphones. And six winners will get the Bagu Cloud Carry-on bag.
0:22.1	And full disclosure, I have one of these bags and it's one of my favorite travel bags.
0:26.2	Just go to nerdwollet.com slash pod survey and complete the form by September 15th for a chance to win.
0:31.9	You can read the official rules for more details, which again can be found at nerdwollet.com slash pod survey.
0:38.8	Thank you and good luck.
0:43.0	Elizabeth, you live in Texas. So how's the weather? Is it hot?
0:49.1	Extremely hot. Like 90 to 100 degrees hot. Like I have to turn on my AC 30 times a day hot.
0:57.1	Yuck. Here in Portland, it is like 75 and not a cloud in the sky, so it's just the perfect temperature for me.
1:04.1	I never thought I would say that I'm looking forward to fall, but I absolutely am, and my light bill is also looking forward to fall.
1:09.0	Well, this episode, we're about to turn up the temperature even more with another round of hot takes.
1:21.5	Welcome to Nerd Wallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles.
1:27.7	This episode, we answer listeners' question about whether they should use an IRA as a savings account and how to manage their money after landing a new job. Congrats. But first, it's August, and I'm betting it's
1:33.1	hot where you are. So we're going to make it even hotter. And no, I'm not talking about posting
1:38.0	even more post-workout thirst traps on my Instagram, because I will be doing that. But we're doing
1:43.0	another round of money hot takes where Elizabeth and I have 100 seconds each to give you our frank assessments about something in the world of finance. And you know, I live for a good hot take, and I have something I need to get off my chest. Okay. Well, I'm getting my timer ready, Elizabeth. Make sure your timer's not hacked, Sean.
2:01.2	I don't think so.
2:02.2	Okay.
2:02.6	But if you go over 100 seconds, I will be interrupting you. So just prepare for that. Ready? Yes. Three, two, one. All right. Buy and I'll pay later loans can be an effective budgeting tool when used responsibly. That's my hot take. I was leaning towards them being a debt trap
2:17.9	initially, to be honest, especially with the increasing number of delinquencies around these loans,
2:22.7	but I have switched sides. Now for quick context, buy now pay later loans such as Cloner,
2:27.9	a firm, PayPal Pay and pay and four, let people spread out payments over time, and they don't
2:32.1	require credit checks, and they usually do not charge interest. So they can be super helpful for people who have limited or less than optimal credit histories. Now, some people argue that if you can't afford to pay it in one go, it's an expense that you can't afford. And that might be true. But let's be honest, many people can't afford their lives right now and it's not just because they're living above their means. Some people's income has not kept pace with inflation, with the increased cost of living, and they just don't have enough to pay for everyday expenses.
	...

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