Afford Anything

Navigating the tricky transition from saving to spending money can feel daunting, especially when striving for financial independence. A caller is weighing the decision between selling his home or converting it into a rental property, exploring the financial implications involved. The discussion also highlights key aspects of Roth IRAs, including their long-term tax advantages and the importance of strategic planning. With a sprinkle of humor on historical rivalries, this conversation blends practical financial advice with engaging anecdotes.

Nomadic Matt Kepnes, a travel writer and blogger renowned for his budget travel expertise, shares how to explore the world on just $75 a day. He challenges typical travel costs, showing that it can often be cheaper than staying at home. Matt emphasizes living like a local to embrace authentic experiences while saving money. He debunks popular travel myths about flight bookings and offers insights into using credit card points strategically. His anecdotes illustrate the rewarding journey of budget travel, particularly in a post-COVID landscape.

The episode tackles the emotional toll of financial mistakes and how to overcome them. It highlights the value of learning from errors, encouraging a growth mindset through humorous anecdotes. Listeners learn about navigating short-term capital gains and the intricacies of asset management strategies like FIFO and LIFO. There's also a discussion about innovative financial decisions stemming from mistakes and personalized advice for selecting investment funds, making the complexities of finance a bit more relatable and engaging.

Dr. Joel Salinas, a clinical associate professor and brain health expert, breaks down the neuroscience behind avoiding tough conversations, like asking for a raise. He explains how our brains reward us for avoidance with dopamine hits, creating a cycle of discomfort. Salinas emphasizes the importance of deep breathing to engage our rational brain and suggests the 'Bigger Better Offer' mindset to motivate action. We also learn fascinating brain facts, including how conflict can foster authentic connections and the significance of maintaining brain health through lifestyle choices.

#591: Imagine you're about to ask your boss for a raise. Your stomach tightens. You've rehearsed what to say, but doubt creeps in. Should you be more assertive? More understanding of company constraints?Bob Bordone, who has taught negotiation for 25 years including 21 years at Harvard Law School, joins us to explain why you don't have to choose between empathy and assertiveness. In fact, combining them is key to successful negotiations."It might feel like a tension, but it's not an actual one," Bordone explains. "I can fully appreciate what you're feeling without ever giving anything up in a negotiation."Bordone breaks down his three-part preparation framework: Mirror work: Identify the different sides of yourself in a negotiation — the empathic side that understands company constraints, the assertive side that knows you deserve recognition, and perhaps an anxious side worried about finances. Chair work: Give each side a voice through role-playing exercises, literally sitting in different chairs to embody each perspective. Table work: Bring these voices into the actual negotiation in an authentic way that doesn't make the other person feel attacked. He also introduces fascinating concepts like "conflict recognition" — how quickly we perceive something as a conflict — and "conflict holding" — our comfort with leaving conflicts unresolved. These differences often cause relationship problems when we're unaware of them."My best friend and I might debate over Flaming Hot Cheetos for 25 minutes. For me, with high conflict recognition, it's completely fun. I go home and sleep like a baby," Bordone says. "For someone with low conflict recognition, they might think, 'That was horrible. Did I hurt the relationship?'"When someone tries to shut down your request with policy ("that's just how we do things here"), Bordone recommends what he calls the "Wizard of Oz tactic" — asking a few more questions rather than immediately accepting defeat.The skills you develop asking for a raise transfer to other challenging conversations — from family inheritance discussions to political disagreements with colleagues.Bordone emphasizes that conflict isn't something to avoid but rather a normal part of relationships. The question isn't whether we'll have conflict, but how we handle it when it inevitably arrives.Resources MentionedBook: Conflict ResilienceWeb: BobBordone.comTimestamps:Note: Timestamps will vary on individual listening devices based on dynamic advertising run times. The provided timestamps are approximate and may be several minutes off due to changing ad lengths.(00:00) Introduction to Bob Bordone(02:35) Contentious times vs 25 years ago(04:26) Negotiation vs facilitation vs conflict resolution(05:56) Key negotiator skills(08:35) Empathy meets assertiveness(11:22) Mirror work explained(15:58) Chair work technique(19:58) Table work strategies(24:10) Role-playing in preparation(31:44) Rights, power, interests framework(35:39) Conflict recognition vs conflict holding(42:22) Handling power imbalances(50:13) "Difficult people" reconsideredFor more information, visit the show notes at https://affordanything.com/episode591 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Join finance veteran Paul Merriman, a strong advocate for diversification through small-cap value investments, as he debates acclaimed economist Dr. Karsten Jeske, who favors simpler investment strategies. The lively discussion highlights the historical performance of small-cap value stocks, which outperformed the S&P 500 for a decade, versus Jeske's claim that this advantage is fading. They explore the complexities of market dynamics, the importance of asset allocation, and the philosophical differences between active management and passive investing. It's a battle of financial wits!

A daughter questions if her mother's retirement portfolio is too conservative, sparking a lively discussion on investment strategies for seniors. The use of whole life insurance as savings for children is examined, weighing benefits against other options. Concerns about tax implications when withdrawing from traditional IRAs are addressed. The conversation navigates the balance between risk and emotional responses to market changes, while emphasizing long-term financial planning and wealth transfer strategies for future generations.

The economy is sending mixed signals with job growth in healthcare but losses in restaurants. Consumer confidence has sharply declined, raising concerns amid rising inflation rates. The Federal Reserve is adopting a cautious stance, holding interest rates steady as they assess the situation. Treasury Secretary's strategy aims to ease energy costs, boosting confidence and consumer spending, which makes up a large portion of the economy. Discussions also include the booming AI sector and its implications for various markets.

Listeners weigh the pros and cons of cashing out ETFs to buy a home in New York City. The conversation shifts to smart investment strategies for high earners ready for a career change. They explore the concept of the Efficient Frontier, questioning traditional market timing methods. Key financial advice centers on the importance of asset allocation and managing long-term expenses. Personal experiences and resource recommendations provide listeners with practical insights for navigating financial independence.

Scott Yamamura, author of Financial Epiphany, simplifies the confusing world of personal finance. He shares how money acts like a multipliers, emphasizing the power of investing early and how it can double every decade. Scott introduces three frameworks: the Doubling Framework, the Halving Concept, and the importance of understanding your 'why' for financial goals. He encourages beginners to take action without needing to master every concept, using relatable analogies like the Rubik's Cube to illustrate that a simple start is key to building wealth.