183: Financial Self-Esteem and the Psychology of (Over)spending

We are all either disappointed or elated after the election. The incoming President has made a bunch of bold predictions and his voters expect a much brighter future. This week, we'll dissect his campaign promises and explore what they could mean for your wallet and the economy.

Every day we are bombarded with important decisions to make. Some are of little consequence, like where to eat lunch. But other decisions really matter – like which job offer to take or home to purchase. In this episode, we break down the psychology behind decision making and the pitfalls to avoid. We also introduce you to two frameworks for making better decisions in your personal and financial lives.

Three years of high inflation has many households stretched, especially lower-income families.  A popular question being asked of voters right now as we head into the election – Am I better off today than I was 5 years ago? On today’s show, we will discuss the state of the US economy and, more importantly, our collective PERSONAL economy.  And if you are doing worse than you were in the past, we will give you some tips and strategies for improving your situation over time.

The last 2 years have been great for folks with “extra money” because there have been a lot of opportunities to earn high yields on cash. However, with the Fed cutting interest rates, those opportunities are going to start to dry up over time. On today’s show, we break down a range of ways to earn income/yield on your money. We break down everything from High Yield Savings accounts to Dividend Stocks, and we also introduce you to REITs (Real Estate Investment Trusts) and BDCs (Business Development Companies).

Seventy four percent of Americans have a financial regret. The biggest source of regret is inaction. When we don’t do something, we romanticize how much better our lives would have been had we chosen that direction. On today’s show, we will break down what causes (financial) regret and how to avoid this counterfactual emotion.

It is becoming more and more apparent that global warming is causing a rise in weather-related disasters. Less than a week after Climate Week, the annual gathering of experts discussing climate action, Hurricane Helene wreaked havoc all over the South. In the 1990s and 2000s, the US averaged just 8 storms per year that caused more than a billion dollars in damage(adjusted for inflation). Last year, there were 28. This week, we are breaking down the connection between the environment and the cost of insurance and real estate.

We are in the 3rd year of college (and high school) athletes being able to cash in on their Name, Image and Likeness (NIL) for endorsement deals. Total compensation to amateur athletes is currently around $1.67 billion and is expected to exceed $2.5 billion by 2026. Many student athletes are earning six and seven figure compensation as teenagers. On today’s show, we school you on the trends in college sports, and break down financial advice for the new crop of NIL Millionaires.

Sometimes the best laid plans in business simply don’t work out. Today, we tell the story of a family whose entrepreneurial journey isn’t going the way they expected and discuss ideas for turning the situation around. We will review ways to safeguard your business deals from the beginning and break down your options for moving on from a bad business.

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The truth about target date funds and other funds in your portfolio. When most people hear the word “fund,” they have no idea what it means. Is it safe? Is it risky? A fund is nothing more than an empty brown paper bag. What matters most is what’s inside. On this week’s show we will teach you how to analyze funds and also introduce you to a new financial product called custom direct indexing.