Listen Money Matters - Free Your Inner Financial Badass. All The Stuff You Should Know About Personal Finance.

We break down Dave Ramsey’s investing strategy.  Can we all retire millionaires as he promises?  Today we find out. Dave Ramsey is a well respected financial guru. He has helped many people begin their personal finance journey. While we disagree with the math behind Dave’s snowball method of debt reduction, you will pay off debt if you follow it. We reviewed Total Money Make Over and came away pretty (but not entirely) impressed. Today we take a look at his investment strategy. Guide Dave Ramsey’s Guide to Investing is a free PDF available on-line. It’s not exactly a weighty tome, just 17 pages, two of which are the cover page and table of contents. Dave’s investing strategy consists of just three steps: * Ask yourself specific questions. Things like at what age you want to retire, what kind of lifestyle you want to live, etc. * Diversify. This section is just four sentences long, and two of them speak of eggs and baskets. * Stay focused. This is basically the sum total of Dave Ramsey’s investing

We hope LMM  is your go-to place for all things personal finance but there are other resources available. We share some of our favorites. Podcasts APM Marketplace:  News on business, money, and economics. Stacking Benjamins:  Our buddy Joe!  If you like LMM, you’ll love this podcast.  Joe was a recent guest on Episode 81. Books The Simple Dollar:  Trent Ham’s guide to wiping out debt. I Will Teach You to Be Rich:  Ramit Sethi’s book for young people at the start of their personal finance journeys. The Richest Man in Babylon:  Personal finance taught through fables by George Clason. Wildcat Currency:  Recent guest Professor Edward Castronova’s new book on digital currencies. The Intelligent Investor:  Written by Benjamin Graham, Warren Buffett’s mentor.  Can’t get much better PF bona fides than that. The Four Hour Work Week:  Tim Ferriss’ first book which has evolved into a wildly successful series. Blogs Get Rich Slowly:  We’ve interviewed founder JD Roth and writer Kristen Wong.  One of the first

If you read or listen to anything related to personal finance, you have heard of Vanguard Funds. But WTF are Vanguard Funds and why are they so popular? Vanguard and its founder, John Bogle, are investing legends and for a good reason. Bogle founded the first index fund, beloved of hands-off investors everywhere, in 1975. That Vanguard Fund, the Vanguard 500 Index Fund now has more than $500 billion under management. What is Vanguard? Vanguard is an investment advisor with more than $5.1 trillion under management. Vanguard is also the leading provider of mutual funds and second largest provider of ETFs. The founder, John Bogle, has long been a champion of offering low cost, low effort investing to the average person. Why are Vanguard fund fees so low? Because Vanguard is not owned by outside stockholders as most investment management companies are. Outside investors want returns, and those returns come in the form of fees charged to customers. Vanguard has no outside investors. The company is owned by

Want to earn some extra cash?  Have some credit card or student loan debt you would like to pay off? Maybe you want to finally take your dream vacation or have some extra money to crank up your investing. We’ll teach you how to make money on the side to put toward whatever your goals are. How to Make Money With a Side Hustle? A side hustle is a way to make some extra money that is outside of your normal day job. For many people, the hustle will be something that they’re passionate about, a hobby. The idea is to find a way to monetize that hobby. Your hustle doesn’t have to be a hobby, nor does it have to be something done online although a lot of the information you find on the web will be about online hustles. If you’re into real estate, then getting to rental property investments could be great side hustle and a great way to to make some passive income. If you baby sits on the weekends, that’s a side hustle too. Choosing A Hustle Choose your hustle carefully. It’s ideal if can monetize something you

The finer points of my personal investment strategy including emergency funds, checking and savings accounts, and investing beyond Betterment. An emergency fund is vital as we discussed in Episode 64. But we define that a bit differently than a lot of people.   You should not have a savings account.  You need a checking account that contains one month’s expenses plus 150%. So if you spend $2000 a month, your checking account should contain $5000.  In lieu of a savings account which makes less than 1% interest, you should use a tool like Betterment to stash your emergency fund.  The money here will grow at an average of 7% a year and is liquid within a few days.  This is controversial to some but it is not risky.  This account should be funded up to $25,000. Should you participate in your company’s 401K?  Never turn down free money. If your company matches, you should contribute the same amount into a 401K even if you have credit card debt. Now things are a bit more comfortable.  Between your checking acco

  You ask and we answer.  Five listener questions on everything from Dave Ramsey to credit cards to how to stay disciplined with spending.  1.  What is Lending Club and how is it classified?  Lending Club is a market place for crowd sourced loans.  It should be a tiny portion of your portfolio because it’s very risky.  It would be more akin to something like a penny stock than a bond. 2.  Why do we rag on Dave Ramsey so much?  Oh, you noticed.  A couple of reasons.  LMM’s doesn’t like the religious overtone to everything he says and writes.  We also disagree with his snow ball method of debt reduction.  It doesn’t make sense mathematically.  We go into this in great detail in Episode 95.  We also give Dave a lot of credit for making people think about personal finance.  Anyone doing that is doing a good thing even if we disagree with the tone or approach. 3.  How do you develop the discipline to not spend money?  In the beginning at least, surround yourself with personal finance.  Read books, listen to podc

Your resume can make all the difference in a tough job market.  We’ll find out what you need to build the perfect resume so you land that job. If you haven’t done a new resume for a while, some things have changed.  Since most resumes are sent electronically, you don’t have to buy the fancy paper.  It’s a good idea to have a few copies to bring to interviews but plain printer paper will do. Keywords are important.  Some companies have a program that will scan through them.  Use the words that are in the job post in your resume so those keywords get a hit. A cover letter is still important if the interview will be the first time you are meeting the interviewer.  Include your skills, why you are applying and why you want to work for that company.  Again, using keywords are important. Some things you want to leave off your resume:  any job you worked for less than six months unless it’s covering a gap in employment.  Don’t use action words like, “achieved” or “adapted.”  Don’t do a “cutesy” resume, just a st

If you haven’t noticed, everyone has been hysterical lately about Bitcoin (to say the least). We talked to Professor Edward Castronova, an expert on investing in cryptocurrency to talk about how the market works. What is the definition of money? According to economists, anything used as a medium of exchange, as a unit of accounting, and as a store of value.  This is why anything from the dollars in our wallets to cigarettes in  POW camp, to Bitcoins can be considered money. What makes it money? Social expectation.  If you have a stone and someone is willing to trade your stone for a cup of coffee, then your stone is money and has value. The difference in forms of currency is how well they perform.  Stones are bulky and heavy, dollars are small and lightweight.  A dollar also has security.  Legally dollars must be accepted as a form of payment.  There is no such law governing stones.  If a vendor won’t accept your stone for a coffee, your stone is worthless. Cryptocurrencies are not regulated And also n

Whether it’s a holiday, a birthday or an anniversary, we all have special days to celebrate.  Find out how to do it up without spending too much. It’s easy to budget for the expected holidays but what about the random co-worker birthday, the niece’s confirmation?  Rather than budgeting “X” for each event, set a dollar amount on how much you spend on each gift.  If you’re giving a check as a gift, make sure to log it somewhere in case the recipient doesn’t cash it right away. Be more selective about what holidays you give gifts for.  Come home without an anniversary gift and you might be in some trouble.  But do you and your significant other really need to buy each other Sweetest Day gifts?  That is a made up holiday.  Focus on the big ones. Have a frank discussion with your extended family.  Once you have a significant other, the number of people you are expected to buy gifts for can increase exponentially.  It’s unfair to be expected to buy a gift for your seven nieces and nephews when you don’t have chi

There are lots of ways to save money on food. Here are a lot of ideas for budget meals and what to eat when you’re strapped for cash. That Can’t Be Right Americans spend a lot of money on food as a recent poll found out. The GOBankingRates survey was one of five polls asking Americans about their monthly household expenses. Groceries came in as the second most expensive monthly budget item, followed by rent or mortgage. Respondents spent more on groceries at $302 per month than the combined cost of their car payment ($166), household necessities ($61) and clothing ($50). And a lot of that food goes to waste. We waste about $40 worth of food each month which is about 33 pounds. No wonder food makes up so much of our budget. But you can create budget meals that will not only cut down on the amount you spend on food but the amount of food you waste too. First Thing’s First If you want to know how to save money on groceries, the first step is to plan your meals. This is easier than it sounds. Most peopl

 Listen, Money Matters celebrates our milestone 100th episode by reminiscing over listener voted best episodes.  Enjoy these classics! Some of the favorite episodes surprised us.  The first one?   Others, like Adam Carrol’s interview are favorites of our’s too.  Here they are, in no particular order. Episode 1:  Introducing the Listen, Money Matters Podcast.  Our debut!  We learn that Andrew is the money guy and Matt is the listener, there to learn with the audience.  We also learn Andrew’s first foray into entrepreneurship was selling porn to the other kids in the sandbox. Episode 14:  Our New Year’s Resolutions for 2014. We shared our resolutions both monetary and personal, and introduced you to some tools to help you meet your goals. Episode 32: An Interview with Adam Carroll of Broke Busted and Disgusted.  This resonated with a lot of you.  Student debt increased ONE TRILLION DOLLARS between 2004 and 2014.  The government decided student loans could no longer be forgiven in bankruptcy which caused len

Dollar cost averaging is a simple yet effective strategy that will help you grow real wealth. The best part is, you can put your money on autopilot.  Dollar cost averaging takes the fear out of investing. Do you have a lump sum of money that you want to invest, but you’re waiting until the exact right time to invest it? You don’t just want to dump a pile, especially a big pile of money into the market at the wrong time and watch it evaporate. There are two ways you can avoid that happening; one is the wrong way, and one is the right way. All investors have two major concerns when they invest, making money and limiting risk. We all want big profits fast with no risk. But that’s not the reality of investing. To make money while limiting risk, we have to employ a good investing strategy. Dollar cost averaging is just such a strategy; it’s good for all investors but especially for those new to investing. Some Good Days and Some Bad Days On September 29, 2008, the Dow Jones Industrial Average suffered one of

Little tips can save you big at home.  Get some money savings tips and find out if anything you’re doing now would cause Matt to punch you in the face. People love numbered lists and we found a good one giving tips on ways to save money on energy costs around the house.  Most of the savings are small but can add up over time and many of the tips are pretty simple to accomplish.  We picked out a few good ones for you. Your house doesn’t need to fill like the tropics in the winter or the Arctic in the summer.  In the winter, set your thermostat at 68 during the day and 60 at night.  For every degree it’s set below 70, you will save 3% of your heating bill.  Put on an extra sweater, or if you have no pride or no shame, a Snuggy.  In the summer, keep the temperature between 75-78.  For every degree you raise the temperature, it will result in a 5% savings.  Invest in a Nest, it’s a programmable thermostat that you can control via your phone. Turn your water heater down to 120 degrees.  You don’t need to take a

Despite being promised a “paperless society” we’re still drowning in reams of paperwork.  Find out what you need to keep and what you can toss. Do you all have a “junk drawer” in your kitchen?  Is it filled with appliance manuals to appliances you maybe don’t even own anymore?  Like the juicer, you bought for a long discarded New Year’s Resolution?  Well, you can chuck it.  That goes for electronics manuals too.  You can google any of those.  This searing revelation changed my life, or at least neatened up my junk drawer. Don’t keep bank statements, use Mint.  Many financial statements are paperless now including credit cards, rent or mortgage, and utility statements.  You just have to opt out of paper and select paperless on the company’s websites. This is good for the environment as well.  You know those annoying slick paper ads that are sometimes included in things like cable or internet service statements?  Now they don’t have to send those.  Before I went paperless I use to put them in the envelope wi

Most of us have homes full of stuff we never use.  It’s taking up space both mental and physical and chances are, it is how you got into debt in the first place.  We’ll show you how to reduce that debt and your clutter by selling your stuff. Take an inventory of what you plan to sell before deciding how to sell it.  Small household goods, children’s items, books, furniture.  These things will do well at a yard sale.  Very expensive items are better suited to eBay.  Not many people are going to bring $800 cash to buy a giant mixing board.  Items that are too big to be carted away in a car but too heavy to drag to the post office to ship for eBay, will do better on Craig’s List. If you have mostly yard sale goods, check with your neighbors.  Perhaps you can all do your sale at the same time which will bring more people to all the sales.  Also check with your local town.  Some have a town wide sale that you can join for free, while the town takes care of the advertising. Craig’s List can be frustrating.  Ther

 If you have debt, it’s time to tackle it. When it comes to methods of debt reduction, there are many options to consider. Everyone has debt, it’s how we reduce and manage it that sets us apart. But which should you use to get out of debt snowballing or stacking? Some of the more popular debt reduction strategies include debt snowballing and stacking. But, which is better? I’m going to tell you right away; monetarily speaking, stacking wins. But nothing is ever that simple. Both methods have their merits and their drawbacks. We’ll take a detailed look at each so you can decide what method will work best for you. Forty million of us have student loan debt to the tune of $1.2 trillion dollars. Seven million of us are in default on those loans. Credit card debt isn’t much better. We have $712 billion in credit card debt outstanding, an average of $15,355 per household. Your debt is an emergency, but you can pay it off. There are two ways to do it. Snowballing Method Snowballing means listing all of your d

In our on-going millionaire series we interview Brenton Hayden to learn how he retired at 27, how he manages his money now, and what he does now that he’s not in an office everyday. Brenton started his career working in grocery stores where he met people who worked for the Kellogg company.  He went from making $14 an hour to $100,000 a year.  After a lay off he wanted to keep making the same money and found that real estate was the way to do that for a young person. Brenton started out as a real estate agent.  He was making great numbers when one day his mentor called him into his office and fired him.  But not for the usual reasons but because his boss felt he should use his entrepreneurial drive to start his own business.  While working in real estate Brenton found a gap in the market.  His clients were desperate for someone to help them rent and manage their properties.  At age 21 Brenton started Renter’s Warehouse which is now the second largest professional landlord in the country. Brenton didn’t take

If there are two things we love at Listen, Money Matters, they are saving money and having a few drinks. Let us teach you how to best combine these two loves into a great night out. We owe thanks to our friends  Thomas Frank from College Info Geek Kristen Wong from Brokepedia for their great articles teaching us how to have fun at the bar without blowing our budgets. These are Thomas’s tips. 1.  Know your number before leaving home.  Once you start drinking, your inhibitions will be lowered.  That might mean a regrettable decision to bring home a double bagger or spending your rent money on rounds for the whole bar.  Before you leave home, decide how much you will spend that night.  Even better, take out that amount of cash and leave your credit and debit cards at home. 2.  Pay attention to drink specials.  Find happy hours in your area or drink at a local brewery.  Sometimes the special will be on drinks, sometimes you’ll get snacks with your drinks.  Since drinking makes us hungry, this can be a savings

Travis Sherry from Extra Pack of Peanuts teaches us how to see the world without spending a lot by seeking out cheaper destinations, scoring the best flight prices, and alternatives to hotels that will save you a fortune. Traveling is on top of nearly everyone’s list of goals but many people don’t because they believe they can’t afford it.  Traveling doesn’t have to be expensive and there are options for almost any budget that will allow you to see the world. If you want to drink on the plane without paying ridiculous airline prices you have a few options.  If you’re flying international, choose an international carrier rather than a domestic one.  The drinks are usually free.  You can also bring those little bottles of alcohol in the quart bag you’re allowed through TSA checkpoints as long as each bottle is 3 ounces or less.  Buy them at your local liquor store, not the airport to save even more. Chat up flight attendants during their downtime.  If you’re charming you can score free drinks from them, maybe

Matt and Andrew bicker like two five-year-olds fighting over a toy about what is the better choice, buying a car or leasing one.  Andrew gets sweary and Matt gets hangry.  Who will prevail? Unlike some of our topics, there is no clear answer to this question.  Should you invest? That one is easy.  Yes you should.  Should you go to college?  That question does not have a black or white answer.  The decision to buy or lease a car is one that will depend on the stability of your current situation and your priorities.  We’ll list some pros and cons of each. Leasing Advantages:  A lower down payment and monthly payment.  Maintenance and repairs will be covered.  You can drive a brand new car every two or three years.  When it comes time for a new car, there is no trade in hassle. Leasing Disadvantages:  You will never own the car.  You have limited mileage, typically 12-15,000 a year.  The contract can be confusing.  If your circumstances change, ie. you get a new job further away or move to a city where having