Apr 10, 2017
#72: Spaghetti is a major part of my life.
I eat it, of course, as many people do. I also spill it all over my
pants, despite the fact that I’m 33 and should’ve learned the rules
of gravity by now.
But most importantly, I use spaghetti as a metaphor for my
business. If I’m not sure if something will work or not, but I want
to experiment with an idea, I tell myself that I’m just “throwing
spaghetti at the wall.” Maybe it’ll stick; maybe it won’t. Either
way, I have permission to try, permission to fail, and permission
to get pasta stains all over my drywall.
This week, I’m starting a new spaghetti-throwing-experiment on the
podcast: I’m going to broadcast “Ask Paula” episodes
every-other-week, followed by interviews with guests
every-other-week. This allows me to handle the awesome volume of
questions that are flowing in (which I LOVE), while still enjoying
intriguing conversations with fascinating people.
This every-other-week thing is just an experiment; I’d love to hear
what you think. Do you want more “Ask Paula” episodes? Or should I
return that segment back to its original once-a-month placement? Or
am I overthinking this and I should really just get on with the
show notes for this week’s episode?
Assuming you’re like, “Option C, Paula — get on with the show
notes!,” here they are.
___________
Our first question comes from David, who asks: Could you ever find
yourself in a situation in which you could justify helping a friend
by paying off their credit card, and in exchange, they pay you a
modest but respectable interest rate?
Here’s his situation:
His friend holds $6,000 in credit card debt, with carries an
interest rate ranging between 11 to 17 percent. This friend also
holds $30,000 in student loans. Yikes!
David, however, is debt-free, maxes out his retirement accounts,
and holds cash savings of $56,000. He’s thinking of loaning his
friend around $3,000 of this money, which she could use to pay off
the 17 percent loan. In exchange, David would get a
decent-but-not-outrageous return, perhaps in the neighborhood of 7
percent-ish.
Should he do this? If so, how? Should he sit down with a
lawyer?
Next, Amy asks:
We’re carrying debt, although fortunately it's low-interest. We're
paying it off, and we're doing the best we can; this debt will be
gone in a few years. How do you stay patient and calm, when
progress is happening at a snail's pace?
Later, Alexa says:
I’ve realized that I haven’t followed my true passions, which are
travel and dance. I’d like to save money for a few years, and then
pursue these twin goals. What should I do with the money that I’m
saving for travel? Should I keep it liquid or in stocks? Should I
put it in a taxable account or a retirement account?
Lyra asks:
I have 5 goals: repay debt, save an emergency fund, help my son pay
for college, save for retirement, and buy a rental property. How do
I split my money between these five goals?
Next, Kim asks:
What are the pro's and con's of portfolio lending for an investment
property? I keep getting hung up on the "balloon payment," in which
you need to repay the full loan after a particular period of time.
How would you qualify for a refinance, given that you need a
portfolio loan in the first place?
Finally, Daan wants to know:
I’m a Dutch citizen who moves to a different country every 2-3
years. Is real estate a viable option for me?
For more information, visit the show notes at https://affordanything.com/episode72