How to Money Ask HTM - Pro Help to Break the Paycheck to Paycheck Cycle, Down Payment Money Market Accounts, and Viable Student Loan Forgiveness Plans #979
May 5, 2025
Listeners dive into practical financial advice, exploring strategies to escape the paycheck-to-paycheck cycle. They discuss the pros and cons of money market accounts for saving for a home. The conversation expands to student loan forgiveness options and managing debts, including medical expenses. Insights on working with financial coaches for personalized budgeting emerge, along with considerations for selling vehicles to expedite mortgage payments. Lastly, the show highlights the emotional aspects of finances and community support in navigating these challenges.
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Hire a Budget Coach
- To break the paycheck to paycheck cycle, find a budget or money coach rather than a traditional financial advisor.
- Use resources like nonprofits offering free credit counseling for financial guidance and accountability.
Best Down Payment Savings Options
- For a 12 to 18 month home down payment savings, avoid CDs due to penalties and poor liquidity.
- Consider money market funds or high yield savings accounts with competitive rates and easy access.
Student Loan Forgiveness Strategy
- Income-driven student loan repayment plans forgive balances after 20 years even if the balance has grown.
- Lower income by maximizing contributions to traditional tax-advantaged accounts to reduce payments and increase forgiveness.