Five Awesome Questions From You
Summary: Sometimes we get awesome questions from our listeners and we like to do an episode around them. Today we have five awesome questions from you about 401k loans, side hustles, student loan interest rates, buying a home and early retirement.<br> Today our five questions are relevent for a big chunk or Americans. If you know someome who might benefti from our answers, send them our way. And maybe have them send in five questions of their own!<br> Question One<br> Looking for some advice around the 401k loan. I went back and listened to your show around this and still not quite sure what to do. Is it smart to take a significant loan from my 401K for any of the following:<br> 1) Buying first rental property?<br> 2) Making updates on a current home that I live in?<br> 3) Using it to buy conservative individual stocks that have good returns/dividends historically.<br> Thanks for the help. I really appreciate it.<br> <a href="https://www.listenmoneymatters.com/401k-loan/">401k loans</a> are taboo in the personal finance world. There’s lots of scaremongering around the subject but under the right circumstances, it can be a beneficial move. We devoted a whole <a href="https://www.listenmoneymatters.com/401k-loan/">podcast</a> to the subject.<br> To make it worth the risk, the loan should be short term. If you’re using it to buy a <a href="https://www.listenmoneymatters.com/owning-rental-property/">rental property</a> that you’ve done all of your due diligence on, go for it. If you’re using it to do renovations that will increase the value of your home before you sell or turn it into a rental property, go for it. Here is a <a href="http://www.hgtv.com/design/decorating/clean-and-organize/which-home-improvements-pay-off">list</a> of the renovations that will earn back your money and then some.<br> So that’s a yes on #1 and a yes on #2 if you are doing the renovations with the intention of selling your home. #3 is a hard no. Investing is not a short term proposition. And because you have to pay the loan back within 60 days, only borrow from your 401k if you are 90% sure you will not lose or quit your job before the loan can be paid back.<br> Question Two<br> Andrew,<br> My question today is about saving vs debt reduction vs side hustle money.<br> My partner and I live in Brooklyn. I make about $53,000 a year and my Partner makes about $75,000 a year. We keep separate accounts and have a shared account for rent and living expenses. I put in $1400 a month into that account. Out of our joint account is were we pull money for our joint <a href="https://www.listenmoneymatters.com/go/betterment-review-link/">Betterment </a>house savings account.<br> I also have <a href="https://www.listenmoneymatters.com/student-loan-hacks/">student debt </a>totaling $42,537.13 I pay my monthly minimum payments automatically.<br> I am 39 years old and have only the small amount of money that is in my Betterment account. If I hadn’t started listening to you I might not have a budget, still be in <a href="https://www.listenmoneymatters.com/how-to-pay-off-credit-card-debt/">credit card debt</a> and have no savings. So its a start but I feel behind the eight ball here.<br> I need to make more money, I am an intelligent college educated man living in NYC and make shit money. So I want to start a side hustle.<br> So my question is, should I spend some money to start a side hustle?<br> Just hit my debt with the avalanche?<br> Throw it all into Betterment because my student loan interest rates are fairly low?<br> Or is it a combination of all three?<br> There is no guarantee that my side hustle will make any money though.<br> -Ash<br> A side hustle should cost you time, not money, at least at first. If your enterprise starts to make some money, than you can think about spending some money to make more money. There are plenty of <a href="https://www.listenmoneymatters."></a>
