10 Money Tips for 2019

In today's episode, you'll hear from just your Hosts! That's right no guests to save the day. As a reminder, Justin chronicles his life at Saving-Sherpa.com and Cody writes at FlytoFI.com In today's episode, the guys tackle 10 financial tips they always hear and give their take on what's true. Hopefully, you enjoy this special episode! Listen, learn, and let us know what you think. Episode Summary Credit Card Balances We discuss why you should ALWAYS be using a credit card The need for setting up autopay to pay off the full balance Neither of us recommends carrying any balance Some think it helps build their credit In reality, you're just setting yourself up to pay a ton of fees The actual factor that relates to this is credit history which doesn't require a balance Rent vs Buy Justin calls out the importance of keeping in mind closing costs, HOAs, insurance, etc It's much more complicated than comparing a mortgage to just your rent These things are especially true if you're moving every two or three years If you can go beyond and do things like house hacking, then buying is certainly a great option Also, keep in mind the non-money part of the decision Owning a house can be stressful and add in more variables to your life New vs Used Justin recommends buying a car that's 5 years old on a deal Then keep that car for two to three years and try to sell before you hit 100k Justin prefers these cars to be under $10k  Cody discusses depreciation and interest rates Justin then compares buying a car and keeping it for 20 years vs rebuying periodically Good vs Bad Debt Obviously there is some debt that's terrible such as credit cards with 15% interest Then there is a middle ground where it's debt that doesn't earn revenue but allows you to invest more Both felt like anything that 4-5% range in interest should just be paid off as quickly as possible Going to College Going to a community college first isn't a no-brainer Many scholarships that universities offer are only given to incoming freshman Justin would have missed out on 10s of thousands if he went to community college Cody calls out how important it is to just be intentional He also calls out the cool trades and technical skills that don't require a college degree Filling Up Savings Accounts Justin highlights how destructive inflation can be It's also scary to see how many people have avoided investing during the last five years These people are often terrified that we've hit the top Both guys highly recommend buy and hold as well as getting into the market right away Financial Advisors Justin does see value for some to have a tax specialist but doesn't see the need for a financial advisor It may be a good idea to pay a one time fee for an advisor to help set up a plan you're comfortable with That could help you get off the sidelines without being tied down to fees long term These advisors often charge at least 1% which can really add up You can see how much these fees are costing you by using Personal Capital's Fee Analyzer tool. If the only reason you're using an advisor is to give you a scapegoat when things go bad, rethink that To round it out, Justin cautions employees from having too much of their portfolio in their employers stock Whole Life Insurance Justin highlights that no reputable financial independence writer has recommended Whole Life insurance People want to sell you these because the salesman gets a royalty for life Whole Life mixes insurance and investing which means neither is as efficient as it could be This doesn't mean you should necessarily cancel your plan if you're already deep into it If you're really interested in this topic, we covered it previously in-depth You can find that episode with Sa El here Also, don't forget to check out our sponsor Bestow for great insurance quo...