🤔 why 9 counterintuitive tips build wealth
Q&A: Does my inheritance count as taxable income?
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Here’s what’s in today’s newsletter:
💭 My Thoughts: Counterintuitive tips that build wealth
❓ Q&A: Does my inheritance count as taxable income?
🗞 In the News: Stay up to date on personal finance news
😎 What I’m Enjoying: A series, podcast, and relaxation wrap
🎙 Recent podcasts: Dig into 891+ episodes in the Money Girl archive
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While most good money advice—such as living within your means and keeping credit card debt low—is intuitive, some counterintuitive tips can also help you achieve huge financial wins!
Here’s a summary of what’s covered on the Money Girl podcast this week:
🎙 Counterintuitive Money Advice—9 Surprising Tips That Build Wealth
1. Being too frugal can cost you.
While being mindful of your spending is always wise, it's also crucial to know when you become so frugal that it's hurting instead of helping your finances over the long run.
2. Spending more can help you save more.
Another counterintuitive tip is that spending more—such as investing in quality shoes, appliances, and furniture that last longer—can be a smarter money move. Paying more for durable or energy-efficient items can help you save money over the long term.
3. Buying insurance can save massive amounts.
You can voluntarily purchase many types of affordable insurance with outsized benefits.
4. Investing during market downturns is wise.
Market downturns are excellent opportunities to buy shares at much lower prices like they're on sale!
5. Accepting a smaller paycheck could pay off.
A lower-paying job could give you non-financial benefits that lead to more long-term wealth.
6. Paying your mortgage ahead of schedule isn't always wise.
Investing extra money instead of accelerating mortgage payments could lead to more wealth in the long run.
7. Renting may allow you to build wealth faster.
Homeownership can be an excellent long-term investment with potential price appreciation and tax benefits. However, it's not the best advice for everyone, depending on the housing market where you want to live.
8. Small savings can add up to massive results.
Tiny money habits that may seem insignificant can dramatically impact your ability to build wealth.
9. Lazy investing trumps active transactions.
Lazy or passive investing is a long-term, buy-and-hold strategy where investors purchase a diversified mix of assets and largely leave them alone.
By following intuitive and some counterintuitive financial tips, you can put yourself on the path to financial success!
Get the full details for each tip by 🎙 listening to the podcast or 📖 reading the show transcript.
❓ On Finance Friday shows, I answer your money questions! This week’s topic comes from Emily G., who says:
"I'm 28 with an annual income of $47,000 and no debt. I just inherited a little over $200,000 from my father, who recently passed away. It came from selling his property, which I had owned for less than a year.
How will my inheritance affect my taxes, and how should I manage it?”
🎙 Get my tips in Money Girl 891, Does My Inheritance Count as Taxable Income?
📖 As always, you can listen to the show or read the transcript.
🗞 Medical debt is banned from credit reports in a new ruling prohibiting credit reporting companies from including it and preventing lenders from considering medical data in lending decisions.
➡️ TAKEAWAY: This is good news for consumers who can have their financial lives devastated by health challenges and medical debt.
According to the Consumer Financial Protection Bureau (CFPB), “Medical debts provide little predictive value to lenders about borrowers’ ability to repay other debts, and consumers frequently report receiving inaccurate bills or being asked to pay bills that should have been covered by insurance or financial assistance programs.”
🗞 Unemployment fell to 4.1% in December, surpassing expectations and showing the most monthly job gains since March 2023.
➡️ TAKEAWAY: The strong labor market means we’re less likely to see the Fed cut interest rates this year, even with sticky inflation in many categories.
🗞 Mortgage rates stay elevated, with the 30-year loan topping 7.1%, a new seven-month high.
➡️ TAKEAWAY: The upbeat jobs report puts upward pressure on mortgage rates. Higher rates, home prices, and a lack of inventory continue to make homeownership unattainable for many Americans, keeping some markets frozen.
🎬 Lockerbie: A Search for Truth is a Peacock Original five-part series starring Colin Firth. It’s a terrific geopolitical thrill that follows a father’s search for justice after his daughter gets killed in one of the worst air disasters, the 1988 bombing of Pan Am Flight 103. I remember how terrifying it was that the plane exploded over the quiet town of Lockerbie, Scotland.
📼 The Telepathy Tapes is a podcast and upcoming documentary series that explores the abilities of non-speaking autistic individuals. I’m unsure what to believe, but it opened my mind to the possibility that they’ve been underestimated.
🥰 This microwavable heated neck and shoulder wrap is so relaxing! I use it while watching TV, reading a book, or writing. It’s filled with clay beads that warm up in the microwave or can be chilled in the freezer and conform to your neck and shoulders.
🎧 891: Does My Inheritance Count as Taxable Income?
🎧 890: Where Should I Invest After Maximizing a 401(k)?
🎧 889: What Should My New Year’s Money Resolutions Be for 2025?
🎧 888: 5 Most Popular Money Girl Topics of 2024
🎧 887: This New Rule Makes Tapping Retirement Savings Easier
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