More Money, More Priorities: Don’t Let a Bigger Paycheck Go to Waste

8 snips

Aug 4, 2025

A listener navigates his new high-paying job, contemplating the best strategies for managing his Roth IRA and savings accounts. The hosts tackle whether a Roth IRA can function like a savings account while prioritizing savings, debt, and retirement. They also examine the risks associated with Buy Now, Pay Later loans and emphasize the importance of informed financial decisions. Listeners learn to balance multiple savings goals and optimize their finances, avoiding analysis paralysis in the process.

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ADVICE

Narrow High Yield Savings Choices

Choose a bank for your high yield savings by identifying your top 3 priorities like interest, access, and customer service.
If you experience analysis paralysis, limit your criteria to three things to help narrow your options efficiently.

ADVICE

Keep Roth IRA for Retirement

Avoid using your Roth IRA as a regular savings account because it is meant for retirement investing.
Keep firm boundaries between your Roth IRA and liquid savings accounts to maintain long-term growth advantages.

ADVICE

Prioritize Emergency Fund First

Prioritize building your emergency fund first before maxing out retirement accounts.
After securing emergency savings, contribute enough to employer match and then fund other retirement accounts like IRAs.

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New job, more income — now what? Hear how one listener is managing his Roth IRA, health savings account, high-yield savings, and more.

Is it smart to use a Roth IRA like a savings account? How should you prioritize your money across savings, debt, and retirement after getting a higher-paying job? Hosts Sean Pyles and Elizabeth Ayoola answer a listener’s question about managing multiple financial goals and choosing the right accounts for short- and long-term needs. But first, they share their money hot takes, including Elizabeth’s thoughts on Buy Now, Pay Later (BNPL) loans and Sean’s interest in stronger pro-consumer protections in light of recent federal rollbacks.

Then, they talk to listener Jake, who recently relocated for a new job and is navigating how to allocate his money now that he’s earning a bigger paycheck. Jake wants to know if it makes sense to use a Roth IRA for savings and how to simplify or optimize his mix of bank accounts. They cover how to prioritize emergency savings, retirement contributions, and future goals like a home purchase, all while avoiding analysis paralysis and making the most of high-yield savings accounts.

Inspired to navigate your finances with an advisor? Use NerdWallet Advisors Match to find vetted professionals today at https://www.nerdwalletadvisors.com/match

Learn more about NerdWallet Wealth Partners: https://nerdwalletwealthpartners.com/

Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header

In their conversation, the Nerds discuss: how to use a Roth IRA for savings, Roth IRA withdrawal rules, high yield savings account vs Roth IRA, best high yield savings accounts, what is a CD ladder, Buy Now Pay Later pros and cons, budgeting after a raise, how to prioritize financial goals, how to automate savings, how to manage multiple bank accounts, closing bank accounts and credit score, best place to save for house down payment, emergency fund vs Roth IRA, what to do after getting a new job, student loan repayment benefits, HSA contribution strategy, how to save for a house in 5 years, budgeting in high cost of living area, saving for short-term goals, pros and cons of online-only banks, how to overcome analysis paralysis in finance, Roth IRA vs high yield savings account, how to choose a bank, CFPB budget cuts impact, FTC click-to-cancel rule rollback, responsible use of debt, financial planning for tech professionals, credit score impact of closing bank accounts, reverse budgeting explained, safe ways to grow savings, how to build financial peace, using automation in budgeting, HSA vs IRA vs savings, debt vs savings prioritization, how to start a CD ladder, and when not to invest money.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com.

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