Do you know anybody who’s never broken the speed limit? Even just a single person- in your entire life?! And if you’re being honest you’re less likely to treat it as a speed limit, and more like a speed minimum. We think we should be going at least that fast, if not more! For better or worse the speed limit is one of those rules in life that consistently is not followed. We break that rule because we believe we can still drive safely, even while exceeding the speed limit. Well the same is true with our personal finances and the money moves that we make. There are a lot of financial rules out there that many believe must never be broken or even challenged, while we believe a certain amount of liberty can be taken. It’s not that we believe that the rules should be done away with altogether- they’re important rules of thumb and reference points that we should definitely pay attention to, especially early on in our financial journey. But as you gain more knowledge and experience there are some financial rules that were made to be broken. Listen as we cover some of those rules as well as why it’s ok to be a conscientious objector!
- Though we can’t say that we would ever love debt, we do believe there are times when utilizing debt in a responsible manner could make sense for you.
- And when it comes to paying off debt, are we fans of the debt avalanche or the debt snowball approach?
- More folks are breaking the rule by not going to college, but there are ways to have a very successful career working in blue collar jobs and skilled trade positions.
- We only just briefly mentioned it during this episode, but Joel and I have both gotten new life insurance plans with Policygenius. Now we feel that depending on the situation, you can break the rule that you should have 10x your annual income in coverage. But if you have dependents counting on your income, you need to have some coverage in place! It could easily cost you less than $30 a month for a 30 year old looking for $300k of coverage on a 30 year plan.
- And Ross Perot, for your reading pleasure!
- Extra cash – And regardless of where you are on the path to financial independence, we believe in the responsible use of credit cards. It’s smart to utilize the additional benefits that credit cards offer- for instance the 60,000 points that come with the Chase Sapphire Preferred Card. That’s $750 when you redeem through Chase Ultimate Rewards! This is no joke- I’ve already done this myself which we discussed on a recent episode after I met the initial spending requirements of $4,000 over 3 months!
During this episode we enjoyed an Indefinite Staycation by Dogfish Head- thanks Ryan for donating this one to the show! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!
Best friends out!
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