Listen Money Matters - Free your inner financial badass. This is not your father's boring personal finance show.

Is your bank nickel and diming you with their bullshit fees?  Learn how to avoid them and dispute the ones you may have already been charged. Banks have enough of your money that they use to make more money for themselves.  Don’t let them steal more with tacked on fees. Maintenance fee, minimum balance fee, foreign transaction fee, paper statement fee.  Those are just a sampling of the fees that some banks charge. Banks rake in a ton of cash on these fees because they know a lot of people either won’t notice them at all or if they do notice them, can’t be bothered to dispute them because calling the bank is a hassle. It just takes some research.  There are banks that don’t charge fees and various types of accounts that don’t come with fees.  There is usually some kind of catch, you need to have direct deposit, pay a bill via the bank’s auto pay system, or maintain a certain balance. Banks offer new accounts that are fee free but check the fine print.  The fee free period may only last a certain length of time before fess kick in. If you do notice a fee, call the bank and complain.  Don’t be rude, remember, more flies with honey and all that.  But if you are persistent enough, they will usually waive whatever you are complaining about. While you have them on the phone, be sure to ask what you can do to avoid being charged that fee in the future. There is no reason to pay a bank fee.  Shop around before opening an account. NOTE: We’d  like to give a shout out to Grayson at DebtRoundUp.com, for helping Matt out with my business bank fees. Show Notes Mint.com:  Mint will alert you to any strange fees. Simple.com: A new online bank that promotes no bank fees. Fidelity: The bank account that  Andrew recommends. They reimburse ATM fees!

You know you should be investing your money but where, how? Investing can be intimidating but it doesn’t have to be.  We’ll help you get started. Anyone can invest and everyone should.  We’ll walk you through the process so you can start making your money work for you. Money sitting in your checking or savings account is losing you money because the crummy interest the bank pays is less than inflation.  You have to put that money where it can earn you something.  That’s why investing is so important. Betterment is very easy to use.  You slide the scale to the amount of risk you want, more stocks is riskier, more bonds is safer.  The fee is .35% which is pretty low.  There is no minimum investment but wait until you have $100 to start your account. If you need the money in Betterment, you can pull it out and there is no fee. You can set an auto deposit so each month, money will be invested.  You never have to think about it, Betterment handles everything for you. If you’re a bit sophisticated and want to buy individual stocks that you’ve chosen, you can open a brokerage account.  Fidelity, E-Trade, and Sharebuilder are all examples of brokerage accounts. If you have $1000 to start with, open a Vanguard Target Fund.  This fund balances your risk based on your preferred year of retirement. The closer you get to that date, the lower the risk balance on your investment. For a lot of us, the real way to get rich is going to be through investing.  Most of us don’t have big inheritances to look forward to and are unlikely to win the lottery.  The earlier you start investing, the longer your money will have to grow. Get over your fear and open an investment account today. Show Notes Andrew’s Betterment Experiment:  See how he’s doing. Mint:  The easy way to track your spending.

In this episode, we answer another listener question about whether he should invest in a Traditional 401k, a Roth 401k, or both. If you’re employed, chances are your employer offers a 401k. Normally, this would be a Traditional 401k, but check with HR to see if they offer both a Traditional and a Roth. 401ks allow you to invest your pre-taxed income, and sometimes employers will match up to a certain percent. If they do, take it — it’s free money. However, Traditional 401ks have a yearly limit as to what you can invest. Therefore, some employers will also offer a Roth 401k which allows you to invest after-taxed money from your check — there is also a limit too. If you can afford to max out both, go for it. If not, go with a Traditional 401k, and anything over the limit to which you can invest, through that in the Roth — hopefully your employer will do some matching there too. Show Notes Health Savings Account (HSA) — This is a savings account you can open to use for health-related costs.

Are you stuck with a mortgage that is under water?  We’ll craft an escape plan so you can save money and move on. An underwater mortgage means the balance remaining on the mortgage is higher than the fair market value of your home.  In other words, you owe the bank more money than your home is worth. A lot of people found themselves in this situation when the economy crashed in 2008.  Even at that time, interest rates were lower than you will generally average in the market.  And mortgage interest is tax deductible.  Money tied up in a house is inaccessible.  You can pull money out of the market and have cash in hand within a few days. If you’re underwater, don’t overpay on your mortgage.  You’re only tying up more money.  Invest that money and get your average 7%. Give some thought to doing what Matt did when he found himself underwater.  He moved in with his brother, paying a very low amount of rent and rented out his condo.  In some cases you can get more in rent than what you are paying for your mortgage.  You just need a friend or relative willing to give you cheap rent. A big housing bust like the one we had in 2008 doesn’t occur very often.  If you can afford your mortgage payments, hold onto the house.  Eventually you will be above water and can sell the house if you decide to.  And maybe live in an apartment for a bit.  Owning a home is not all it’s cracked up to be and not necessarily still a part of the “American Dream.” Show Notes Mint:  Track your spending. Betterment:  The easy way to invest. Vanguard:  Among the lowest fees in the industry.  

You have no idea where all your money goes, huh? I’ve been there before. I know it’s frustrating when you can’t seem to get ahead. If you are in this boat, you probably don’t have a budget or at least one that is working for you. In order to start to making smart conscious decisions about your money, you’ll first need to get an idea of your overall financial health. Creating a budget will help you do just that. Remember, a budget is not a magic wand. It is a tool that will help guide you but it takes some commitment as well. You probably know the importance of having a budget but sticking to it might now be a priority in your life. It should be and this is why. Knowledge is Power If you are completely in the dark about the amount of money you spend and how you spend it, changing your habits will be really hard. Creating a budget will help you figure out exactly how much money you actually need on a monthly basis. Once you have a clearer view of your overall financial picture, you can shift your focus to eliminating debts and start building wealth. Seeing all your income and expenses in one place will shine the light on your financial situation. Having this knowledge will allow you to create financial plans and reach your goals. Only then can you start making some ground. Stop Spending So Much So now that you’ve discovered where your money is going, you’ll be able to start plugging spending leaks. Without a budget you might have not realized that you were spending $60 a week ordering lunch from Seamless. Or that the fact that you do means you’re going to come up short when your cell bill is due. To plug up your leaks, you will have to track everything; even it is just a latte or a bag of chips. These little purchases can add up to hundreds of dollars each month if you are not paying attention. Part of the process is learning how to make better decisions. Creating a budget will help you realize the difference between needs and wants and soon you will often be asking yourself, Do I really need to buy this?  Knowing what you will have at he end of each month after expenses will help you control impulse purchases and stop you from buying things you don’t need or can’t afford. Clear Your Head It might be super scary to see where all your money is going at first, but it is the only way to start making progress and stop stressing. Good or bad, once you know what your situation looks like, and you can plan accordingly. You can now spend time fixing any problems and celebrating achievements. Knowing your financial situation will lift a significant amount of stress from your life. The fear of the unknown will be washed away. You won’t have always to be thinking about it. Stop losing sleep over financial hardships. Take control. We all know money issues are one of the biggest causes of divorce, so if you and your spouse start working together towards fixing the family finances, it can also take a lot of stress out of the relationship. Keep Your Eye On The Prize Creating and maintaining a realistic budget will help you figure out what your long-term goals are and help you work towards them. Stop buying every shiny thing you see because you think you deserve it. You will never save up that money for a down payment on the house, that dream trip Italy or a comfortable a retirement. You don’t want to work forever, do you? Start mapping out your goals, get it your finances on order and keep track of your progress and save the money you need. Conclusion Stop wasting time and start today. Creating successful spending and savings plans will allow you to simplif...

We’ve all heard the cliché that if you’re renting, you’re wasting your money. But is that true? Is it better to rent or buy? We’re Not Buying It Home ownership used to be a hallmark of the American dream achieved. It showed that you were an adult and that you had “made it.” But that is no longer the case for many young people. Lots of them have decided it’s better to rent than buy. Earlier this year, US homeownership rates fell to a 48 year low. For those under age 35, the rate of ownership is just 34.1%. That is about half the rate of overall home ownership in the US. Clearly, Millennials either didn’t get the memo outlining the American dream or they disagree for various reasons that renting means throwing your money away. You Can Pay Off a Mortgage This is a big reason many people give when they advocate that you buy rather than rent. One day (maybe) you will pay off your mortgage and own your home outright. And that’s true. But that doesn’t mean that magically your home stops costing you money the day the mortgage is paid off. You still have to pay things like property taxes, maintenance, and repairs. Which your home will need more of the older it gets. None of those things are your problems or your expenses when you rent. It’s the Principal Your mortgage payment is made up of more than the principal on the loan. You are also paying interest. The bank didn’t lend you that money out of generosity. So in the beginning and depending on the amount of your down payment, interest rate, and the length of the loan, for many years, the vast majority of your monthly mortgage payment is going toward paying that interest. Here’s an example: If you have a $200,000 thirty year mortgage with a fixed rate of 4.5%, your payment will be $1,014 per month. Of that, the first payment you make will see $750 go toward interest and just $264 to pay down the principal. After twenty years, the payments will be more heavily tilted toward principal with $647 paying it down and the remaining $367 going to interest. There are other things included in your mortgage payment that contribute to the fact that you’re not initially paying down much principal. Most lenders require that you put money into an escrow account from which they will pay your property tax and home owner’s insurance. How does escrow work? Your home is an investment for you, but it’s an investment for the bank too. They don’t want to lose money on that investment because you failed to pay your taxes or maintain insurance. If you were to not pay your taxes, there could be a lien placed on the property, and it could be sold off to satisfy the delinquent tax bill. If your home isn’t insured and was to sustain damage in a fire or some other type of disaster, the bank has nothing to repossess. To avoid either of these scenarios, one-twelfth of the estimated yearly cost of taxes and home owner’s insurance gets paid into that escrow account each month from your mortgage payment. From that, the bank pays those bills for you. If your down payment was less than 20%, your lender might also require you to carry mortgage insurance which protects the bank’s investment if you default on the loan. This too is part of your mortgage payment and another reason you’re not paying down principal very quickly. Keep it Flowing For many people, their home is their biggest investment. But it’s not a liquid investment. A liquid investment is something that can be quickly converted to cash,

Every time we make a purchase, we have to decide between using a credit card, a debit card, or cash. They all have their pros and cons. Will there be a clear winner? Credit vs. debit vs. cash: the ultimate showdown. Those shiny credit card offers with their promises of free flights, and cash back can be seductive. We like our debit cards because they help keep spending under control. And some die-hards still like cash because it can make some purchases cheaper. What and when should you choose when it comes to credit vs. debit vs. cash? What’s Popular? Among our three choices, which do Americans prefer? In a 2016 survey, payment processor TSYS asked over 1,000 consumers which payment form they prefer. Forty percent chose credit cards, while 35 percent selected debit cards, and only 11 percent specified a preference for using cash.1 Consumers’ preference for credit cards increased by 5 percent over the same survey’s results from 2015, while the results for debit cards fell by 6 percent. The survey also found that debit cards were the preferred method of payment for smaller, everyday transactions at supermarkets, gas stations and convenience stores, while credit was the choice for more expensive purchases, including those at department stores and restaurants, and for travel reservations. Cash is definitely not king anymore. Credit Cards Americans love their credit cards. The average American has 2.69 in their wallets. Pros These are good arguments for whipping out the credit card. Track Spending When you charge something on a credit card, you can almost instantly see the transaction in your account. If you use a budgeting program like Mint, the transactions are automatically downloaded. This makes tracking your spending and budgeting easy. It’s a Loan Charging a purchase to a credit card is like having an interest free loan. Most cards offer between 55-62 days before interest charges start accruing. If you’ve had to make a big purchase on a credit card because you didn’t have cash, you have that amount of time to pay it off before you have to start paying interest. This allows you to spread out the cost of a big purchase over time. They Help You Score We’ve talked about the importance of having a good credit score and using credit cards can help build your score. You’re Protected You have some consumer protections when you purchase a credit card. Protections vary by card but some things typically covered include replacing a stolen or damaged item, refunds for a product or service you are unhappy with, and extended warranties. If you travel, credit cards can offer things like travel accident insurance, luggage protection, and trip cancellation insurance. If your card is hacked or stolen, it’s the credit company’s loss and not yours. As long as you notify the company within two business days of being hacked or having your card stolen, the maximum you are responsible for is $50. If you wait more than two days but less than 60 after your statement is sent, the maximum is $500. I’ve had my card hacked though, and the company let me off the hook for the entire amount. It’s Not Ideal A credit card is not meant to be used as an emergency fund; you need cash set aside somewhere easily accessible like a checking or savings account.

Saving money can be hard and sometimes it feels like you’ll never get ahead. But saving money doesn’t have to be hard. We will show you how to save money fast and automate it to make the process easier and less painful. Most of us want to save money fast, and we know how to do it. But there are ways to make saving money faster and easier. First Thing’s First You can’t effectively save money fast without a budget. If you don’t know how much is going out each month, you don’t know where your spending leaks are. So if you want to know how tpao save money fast, setting up a budget is the first step. “Some of us have several dozen spending categories to account for each month, from gym memberships to magazine subscriptions, and even those smaller expenses can really add up. That’s why having a budget is crucial. Without one, you won’t know how much you’re spending, and you’ll have an even tougher time identifying opportunities to cut back. On the other hand, if you list all of your expenses out line by line and total them up, the numbers won’t lie. You’ll see exactly where your money is going, and from there, you can find ways to free up cash to increase your savings.” Go to Mint and create an account. It’s free and easy to use. Once you have at least a month’s worth of data in your account, take a look and see where you are bleeding money. The Nuclear Option Mint is wonderful, but it can’t stop you from spending money. If you are budgeting with Mint and still spending too much, there is a much more drastic budgeting option that might work better for you. The envelope system can help you save money fast when other budgeting methods have failed you. The envelope system is straightforward. For each budget category that you can spend cash on, you write the category name on an envelope. Of course, it won’t work for things like your rent or mortgage or utilities, but those aren’t the categories we overspend on. You allocate a certain amount of money for each category for the week or the month. Take the total amount of money out in cash and divide it between the envelopes. So if your food budget for the month is $100, you put $100 in the “Food” envelope. You put $50 in the “Gas” envelope and so on. When an envelope is empty of cash, you are done spending in that category for the month. That’s it. I don’t love this as a long-term solution because you lose certain protections when you spend cash that you would have when using a credit card and even a debit card. And if you lose cash, there is no way to recover it. But as a way to discipline yourself to stay on budget, the envelope method really can’t be beaten. Cutting Spending Once you see your monthly transactions, there are some easy things you can do to cut spending. Whether it’s at the grocery or around the house, if you want to save money fast, you have to cut down on spending. The Usual Suspects: These are the things most of us overspend on. Luckily, they are also some of the easiest categories to cut spending in. Food This is a big one. Most of us spend way more than we need to for food whether it’s groceries or eating out. You can quickly cut down your grocery budget by meal planning, using a slow cooker to batch cook, and eating everything in your kitchen before bringing any more food into the house. We all have miscellaneous things hanging around that we haven’t used for some reason. Enter a few ingredients you have on hand into

Welcome to Listen, Money Matters.  We are a personal finance podcast for people who love beer and swearing as much as they love money! Andrew is the finance expert. He’s always been a guy predisposed to ranting about money. His parents taught him the value of a dollar as a little kid. He has managed to build up an impressive portfolio at 28 and plans to retire at 35. On the other side of New Jersey, Matt, his co-host, is not very good with money. In fact, as he puts it, “I flat out suck with money and make things harder than they have to be.” But since early 2013, with Andrew’s help, he has managed to get his finances in order. There is a lot of personal finance advice out there but none of it spoke to us.  It was either for old people or people who already had some financial savvy.  We wanted a show that would help everyone but would be geared toward issues facing those in their twenties and early thirties. We plan to talk about every facet of personal finance, including getting out of debt, how to save money, and how to make more of it. We also want to talk about ways you can improve your life and make it easier. Tools to help you automate your finances, tips to improve your productivity, great beers you should drink.  We want to take the intimidation factor out of investing.  It seems complicated and it can be, but it doesn’t have to be. We also want to take away the taboos around money.  So many people feel ashamed because they think they’re alone.  Whatever money problem you are facing, there are others out there facing the same. So welcome to the inaugural episode.  We hope you’ll enjoy what we do! Show Notes Mint:  The easy way to budger. Betterment:  The smart way to invest.  

Today we’re joined by Saleem Khatri, CEO of Instavest. A new platform to let others know why you invest so they can get in on the action too. Instavest allows you to describe why you invested the way you did so others can mirror what you did and you get a portion of the profits. Saleem has been investing for about fifteen years. He would recommend investments to his friends. Investments that were so successful, people started asking him to manage their money full time. Not wanting to get into that game, he looked for places where people made recommendations. There were a few but he felt they were mostly spam. He wanted a site where only people who had actually made those investments could post. And Instavest was born. Each post is moderated and reviewed to make sure that they are accurate in their numbers and information. The posts aren’t pages long. No one wants to wade through all that. They are short and to the point. You can invest directly through Instavest. Well, if you’re perfectly happy over at Vanguard, why should you invest via Instavest? Because if people copy your trade and make money, they can voluntarily give you part of their profit! On average, initial investors are getting 12% of subsequent investor’s profits. For doing nothing! Instavest provides a leader board. This gets your name out there, more people follow you, and you make more money because of it. The trades at Instavest are just $3.49. This money goes to the broker dealer, none of it to the company. The company makes money via new accounts and takes 20% of the donations given to the initial investors. The minimum to join the platform is $500. We at LMM recommend things like Betterment, for set it and forget it investing. That doesn’t mean Instavest is a bad thing. It can be a good place for 10-15% of your portfolio where you’d like to get a little higher rate of return. Show Notes Morimoto Imperial Pilsner Rogue Ales: The Iron Chef beer! Y Combinator: A VC boot camp. LMM Community: Love to talk PF? Join us at the LMM Community Forums! ListenMoneyMatters.com/Instavest: Sign up here and get $50 for your account. Instavest Leader Board: See who you should follow. Instavest Blog: Hedge fund managers who work for tips.