1773: Ask Farnoosh (New!): Getting an 800+ Credit Score, Investing Pro Tips and Best Budget Tools
Jan 10, 2025
auto_awesome
Celebrate a decade of financial wisdom as the host reveals tips for achieving an 800+ credit score and practical insights for novice investors. Discover the effects of paying off car loans early, and learn whether canceling a department store credit card is worth it. The host also highlights vital resources for California wildfire recovery, shares reflections on 2024's challenges, and introduces budgeting tools that can boost your financial health. Join in the community spirit as listeners share their journeys!
Emphasizing intentional growth for 2025, Farnoosh highlights reassessing commitments to prioritize quality over quantity in personal and professional life.
In discussing debt management, she reassures that paying off auto loans early can be emotionally fulfilling but may slightly impact credit scores.
Deep dives
Emphasizing Personal Growth and Reflection
The discussion highlights the importance of personal growth as the new year begins, with the speaker reflecting on past experiences and resolutions. There is a focus on the idea of doing better each year, as well as a personal resolution to prioritize not increasing wireless costs for customers. The speaker shares their journey over the past year, detailing various professional and personal commitments, underscoring the necessity of taking a more intentional approach moving forward. By reassessing how to balance commitments, the speaker aims to prioritize quality over quantity in both personal and professional life.
Listener Engagement and Community Feedback
Engaging the audience is recognized as crucial, with an invitation for listeners to share their success stories related to financial advice from the show. This approach aims to highlight the impact of shared experiences on personal financial growth, emphasizing the importance of hearing from everyday individuals rather than just prominent figures. The speaker intends to integrate this feedback into future episodes to enhance the relevance and relatability of the content offered. By focusing on community-driven content, the speaker establishes a platform for collective learning and support.
Understanding Debt Management and Credit Impact
A listener's question about the implications of paying off an auto loan early offers insights into debt management and credit scores. The speaker reassures that paying off a loan is emotionally fulfilling and that the absence of a prepayment penalty allows for early repayment without extra costs. Although there may be a minor impact on credit score due to the loss of credit variety, it remains a small factor relative to overall financial health. This response reinforces the idea that personal comfort with debt is a legitimate consideration alongside maintaining a healthy credit profile.
Investing Fundamentals and Emergency Funds
A conversation on the readiness to invest after reaching an emergency fund target addresses essential investing principles. The management fee of 0.25% for a robo-advisory service is deemed reasonable, especially given the automated nature of the service compared to traditional financial advising. However, the speaker notes that past performance should not be the sole basis for future expectations, indicating that a more conservative growth outlook is prudent. Recommendations also emphasize the importance of maintaining liquidity through high-yield savings accounts for short-term needs while adopting an aggressive investment strategy for long-term growth.
Farnoosh celebrates the podcast's 10th anniversary and shares her personal journey from a hectic 2024, emphasizing a more intentional approach to 2025. Farnoosh answers listener questions on maintaining good credit, the impact of paying off car loans early, the pros and cons of canceling a department store credit card, and the cost of investment management fees. She also discusses helpful resources for those affected by California wildfires including: