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Motley Fool Answers

Practical Hacks for Building Better Money Habits

Motley Fool Answers

The Motley Fool

Taxes, Saving, Money, Investing, Planning, Retirement, Personalfinance, Finance, Education, Business

4.4823 Ratings

🗓️ 10 November 2015

⏱️ 29 minutes

🧾️ Download transcript

Summary

Everyone has at least one bad money habit that leads them to spend too much or save too little. In this show, we’re going to share some practical tips and tricks to help you break the bad money habits and replace them with better ones. We’ll also get some decent love advice from the Federal Reserve.

Transcript

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0:00.0

This is Motley Fool Answers. I'm Alison Southwick, and I'm joined, as always, by Robert Brokamp,

0:08.2

personal finance expert and advisor on the Motley Fool's Rule Your Retirement newsletter.

0:12.9

Hello, everyone out there in podcast land.

0:15.1

Sean Gates is back. He's here to help you stay motivated and hold yourself accountable so that you'll

0:19.6

actually change your bad money habits. We're also going to get some love advice from the Federal Reserve.

0:25.7

All that and more on this week's episode of Molly Fool Answers.

0:28.9

According to a new working paper from the Federal Reserve, hey, where are you going?

0:35.0

Listeners, get back here. As I was saying, a new working paper from

0:38.8

the Federal Reserve looked into the role that credit scores have in predicting the stability

0:43.6

and potential longevity of a relationship. Yes, that's right. Your credit scores are like

0:49.4

a love score. Bro? Explain.

0:52.8

Okay. So, your credit score, of course, is based on your credit worthiness. The amount of debt

0:59.0

you have, your ability to pay back your debt, whether you've had foreclosures or bankruptcies.

1:04.0

And here's the findings of that paper, as summarized by Bloomberg. So, first of all, people

1:08.2

with higher credit scores are more likely to be in a committed relationship and stay together longer. People tend to form relationships with people

1:15.6

who have similar credit scores. And the strength of the match, both in terms of the score and

1:20.7

the details, is predictive of whether they will break up in the future. And one thing I thought

1:25.4

was perhaps the most interesting is that

1:28.3

they found that it implies just some overall trustworthiness about the person. So it often

1:35.6

predicted whether someone broke up over something that had nothing to do with money. It's

1:39.8

just whether that person was a responsible person or not.

1:43.2

When I first read the headline, it was like, oh, your credit score and your ability to

...

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