This week, the hosts dive into fitness inflation and how it affects your wallet, along with clever tips for dining out without breaking the bank. They discuss the importance of life insurance laddering and why it’s a smart financial move. Discover the quirky world of budget airlines, especially Spirit Airlines, and hear a cautionary tale about the risks of high-risk trading. Plus, there's insight on the rise of small businesses and the importance of cybersecurity in protecting your identity. Tune in for a blend of humor and practical financial advice!
Life insurance laddering allows individuals to adapt coverage over time by taking out multiple term policies aligned with financial responsibilities.
Rising costs in sectors like fitness and entertainment highlight the importance of mindful spending and seeking budget-friendly alternatives to avoid debt.
STEM degrees offer better financial returns compared to arts degrees, underscoring the need for informed decisions to mitigate potential student debt.
Deep dives
Supporting Small Businesses
Small business owners often face pivotal moments that define their future. The podcast emphasizes the importance of recognizing these do-or-die situations and how they can shape a company's trajectory. It highlights real-world examples of small business owners who triumphed over adversity, turning challenges into opportunities that set them apart in a competitive landscape. By sharing these stories, the discussion aims to inspire other entrepreneurs to embrace their unique journeys and make the most of their crucial moments.
Life Insurance Laddering
The concept of life insurance laddering is presented as a strategic approach for those needing additional coverage over time. This involves taking out multiple term life insurance policies that last for different durations to align with specific financial responsibilities, such as raising children. By maintaining original policies while adding new ones as life circumstances change, individuals can ensure they have adequate protection without unnecessary costs. This method is positioned as a smart way to adapt life insurance needs as personal and financial situations evolve.
Inflation and Consumer Spending
Despite overall inflation cooling in many areas, certain costs continue to rise, particularly in entertainment sectors like theme parks. For instance, Disneyland has recently announced significant price hikes for admission tickets, even as crowds diminish, raising questions about pricing strategies in a fluctuating market. Listeners are encouraged to remain price-sensitive, considering less popular days for visits to save money. The discussion serves to highlight the importance of mindful spending and indicates that consumers can drive change through their purchasing choices.
Fitness Spending Trends
There is a growing trend among young people, especially Gen Z, to prioritize expansive spending on fitness, from expensive gym memberships to supplements. While investing in health is important, there are concerns that some individuals may go into debt to support their fitness goals, which can lead to financial instability. The episode advises setting a realistic budget for fitness-related expenses, with recommendations suggesting not spending more than a reasonable portion of one’s income. It emphasizes that pursuing wellness shouldn't come at the expense of financial health, urging listeners to find a balanced approach.
The Value of College Degrees
The podcast discusses the complexity of the current college education landscape, where the return on investment can vary widely based on the degree pursued. STEM degrees, particularly in fields like engineering, are cited as having the highest potential for lucrative salaries and low unemployment rates, while degrees in the arts tend to offer lower income potential. Importantly, it cautions listeners against accumulating excessive debt for degrees that may not provide adequate financial returns. The discussion serves as a reminder that informed decisions about education can lead to improved financial futures.
Time for a Friday Flight- our little sampling of the week’s financial news and what it means for your personal finances. There are a lot of headlines out there, but we boil them down to specific takeaways that will allow you to kick off the weekend informed and help you to get ahead with your money. In this episode we explain some relevant and helpful stories like: why you probably need to life insurance ladder (layer), house of mou$e, fitness inflation, high cost of eating out, feasting for less, why you should love Spirit Airlines, privacy concerns, Canadian carpenter makes bank, farewell savings rates, certified pre-owned clothes, Boomer Stuff Avalanche, STEM degrees, debt derailment, and blue collar millionaires.
Want more How To Money in your life? Here are some additional ways to get ahead with your personal finances:
Knowing your ‘money gear’ is a crucial part of your personal finance journey. Start here.
Sign up for the weekly HTM newsletter. It’s fun, free, & practical.
Find the best credit card for you with our new credit card tool!
Massively reduce your cell phone bill each month by switching to a discount provider like Mint Mobile.
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. Have an awesome weekend!
