Money Girl

Think you need to make monumental changes to achieve your financial goals? Think again. Money Girl has 8 micro money habits to help you take control of your finances, feel secure, and reach any realistic financial goal you desire.Encore Episode: This episode originally aired in June of 2022.Money Girl is hosted by Laura Adams. Find Money Girl on Facebook or subscribe to the newsletter for more personal finance tips. You can read the transcript here. Visit www.quickanddirtytips.com for more.

1027. New graduates can create financial freedom by consistently following a few fundamental money rules. Laura reviews seven tips that can set young adults up for a lifetime of financial success.Expert advice for navigating life after graduation — for new grads and the people cheering them on. From finances and freelancing to nutrition and knowing when to ask for help, find it all in our "Life After Graduation" playlist on Spotify.Key takeaways:Accepting various types of financial help from family can be part of a new graduate’s launchpad to independence.Maintaining a cash cushion in a high-yield savings account should be a top priority for creating financial security. Building your credit scores is an excellent way to get access to credit at lower interest rates and save on various products and services.   Keeping debt to a minimum and understanding any student loan repayment options can improve your current and future financial well-being.The power of compounding makes it wise to invest sooner rather than later, even if you can only put away small amounts consistently.Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1026. Travel insurance expert, Christina Tunnah of World Nomads, breaks down the benefits of coverage and costly mistakes travelers should avoid. From medical emergencies abroad to unexpected trip interruptions, get insider tips on how to travel and explore the world with less risk and financial stress.Interview topics coveredHow to choose a travel plan based on your health, belongings you take on a trip, and the cost of a trip.Whether you should rely on travel protections offered by a credit card.Mistakes travelers make when buying travel insurance and filing claims.How to know if ‘cancel for any reason (CFAR)’ is worthwhile coverage you should purchase. Pre-existing medical conditions and other exclusions to watch for when shopping for a travel policy.The difference between expat healthcare and travel insurance.Why having travel medical coverage is essential when traveling abroad.Which countries are affected by war, sanctions, and travel restrictions.Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1025. If you’re considering selling a home, you may wonder how it will affect your taxes. Laura answers a listener’s question on this topic and explains how to use a legit, massive tax exclusion that allows many homeowners to skip home sale taxes altogether.Key takeawaysSelling an asset, such as a home, for a profit results in capital gains tax, with a rate that depends on your income and how long you owned it.The Section 121 exclusion, known as the home sale capital gains tax exclusion, allows eligible single taxpayers to exclude up to $250,000, or joint tax filers up to $500,000 of capital gains on their primary residence.Homeowners qualify for the gains exclusion if they owned and lived in the home for at least two years during the five years preceding the sale.There are legal exceptions where you qualify for the full or partial gains exclusion even if you sell your home before living in it for two of the previous five years.Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1024. Are you ready to quit working or to begin a financially independent lifestyle? Laura covers four ways to access your retirement funds without paying a hefty 10% early withdrawal penalty before 59.5. Key takeawaysUsing a tax-advantaged retirement account has many benefits, but one downside is typically paying a 10% penalty for withdrawals before age 59.5.The rule of 55 is an IRS rule that allows employees to take penalty-free retirement plan distributions when they leave during or after the calendar year of their 55th birthday.With a Roth IRA, you can withdraw your original contributions at any age, for any reason, entirely tax- and penalty-free. A SEPP or 72(t) payment plan is an IRS rule that allows you to take equal distributions from a retirement account penalty-free, no matter your age, if you follow strict guidelines. A brokerage account allows you to take distributions penalty-free, no matter your age, but doesn’t offer the tax perks of a retirement account.Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308. Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1023. Are you worried about the future cost of education for yourself or a child? Laura reviews ten ways a 529 savings plan supercharges education savings and can even be used for young students, non-traditional coursework, and professional career pivots.Key takeawaysContributions to a 529 plan get taxed upfront, but the account growth and withdrawals for qualified expenses are tax-free.States sponsor 529 plans with various benefits and fees; however, you don’t have to be a state resident to participate in the plan.There are no income restrictions to contribute to a 529, and owners typically name a child, who is the future student, as the account beneficiary. Qualified 529 expenses include many costs associated with traditional college, but also include trade schools, vocational training, and professional certifications.You can spend up to $20,000 per year on younger students from kindergarten through high school at public, private, or religious schools.Leftover 529 funds can be rolled over into a beneficiary’s Roth IRA, with certain restrictions.Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308. Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1022. If you were expecting interest rates to drop, rising inflation is making it more likely for them to go up this year. Laura reviews six moves you shouldn’t overlook in a rising-rate environment to make your money work harder for you.Key takeawaysWhen inflation rises, the Fed raises interest rates to slow down spending and demand, eventually causing prices to decrease so spending increases.With sticky inflation and the expectation of rate hikes, borrowers need to watch interest rates on their debt, using a tool like my PFS.When variable-rate debts, such as credit cards, increase, it’s wise to pay them off faster and reduce the interest expense.If you’re considering a large purchase, like a home or vehicle, maintaining good credit and locking in a lower interest rate sooner rather than later are wise strategies.Higher interest rates benefit savers, so using a high-yield savings account can maximize your earnings.Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308. Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1021. Looking for a mortgage but are unsure what’s best for you? Laura answers a question from a listener who’s ready to buy a home but is overwhelmed by mortgage choices. Find out whether a fixed- or adjustable-rate loan, with or without mortgage points, is right for you.Key Takeaways:Fixed-rate mortgages are popular because they lock in a rate, providing financial stability no matter what happens in the economy.Adjustable-rate mortgages (ARMs) can be good when interest rates are high, you don’t expect to own your home for the long term, or you can pay it off early.Conventional loans are the most common type of mortgage because they’re backed by federal agencies, reducing risk for lenders.Jumbo loans are high mortgage amounts that aren’t federally-backed and typically require stricter qualifying criteria by lenders.There are various loans backed by the federal government, including FHA, VA, and USDA products, that come with lenient underwriting standards, making homeownership more affordable.Buying mortgage points allows you to get a lower interest rate, which saves money if you own the property past the breakeven point.Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: money@quickanddirtytips.com or leave a voicemail: (302) 364-0308. Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

1020. Using an AI tool or chatbot to improve your finances can be wise, depending on what you tell it. Laura reviews what you can safely ask a bot and what you should never enter in an AI tool. You’ll learn ten powerful AI prompts you can use to find hidden savings, negotiate your bills, and build more wealth.Key takeawaysSince your data can be used without your knowledge, never enter personally identifiable information in an AI tool or chatbot, such as your Social Security number, account numbers, logins, or legal information.Use AI to help with financial education and tasks like negotiating bills, building credit, and preparing for taxes.AI can play devil’s advocate to explain the downside of a financial decision or list the pros and cons, improving your overall knowledge and logic.Don’t assume the answer you get from a chatbot is correct–ask it to show its logic and resources so you can double check it. For any significant financial decisions, it’s best to work with a financial professional for the best advice.Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.