Rich Habits Podcast

Q&A: Making Extra Money, Opening a Bar, & Paying Down Loans

Dec 18, 2025
This discussion dives into the nitty-gritty of financial decision-making. From prioritizing loans over investments to the debate between renting and buying while in debt, the hosts provide actionable advice. They emphasize the importance of setting spending rules tied to investment milestones and explore strategies for managing settlements wisely. Plus, the thought of opening a bar while in debt? Not so fast! Overall, it’s a journey through smart, balanced financial habits that motivate healthy savings.
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ADVICE

Prioritize Roth Then Attack High-Interest Loans

  • Max out your Roth IRA each year before aggressively paying down student loans.
  • Invest the Roth limit first, then apply any extra dollars toward high-interest student debt.
ADVICE

Don't Let High-Interest Student Debt Linger

  • Treat single-digit high student loan interest (≈8%) as urgent to pay down after Roth contributions.
  • Don't pause investing entirely; balance both by prioritizing tax-advantaged accounts first.
ADVICE

Handle A Windfall With Boring Indexing

  • Max out Roth IRAs for both spouses, then build a taxable 'bridge' brokerage account with index ETFs.
  • Keep allocations simple: VOO, QQQ (or VGT), and scale into other assets later.
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