You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How...
First Friday: The Economic Maze We're Navigating Together
#588: Jobs are growing, interest rates are holding, and your student loan options just hit pause. Welcome to this month's economic rollercoaster.
The economy is sending mixed messages this month. We added 151,000 new jobs in February, slightly better than January's 143,000. But unemployment ticked up to 4.1 percent.
Health care is booming (52,000 new jobs). Restaurants and bars? They're hurting (lost 27,500 jobs). Federal government shed 10,000 positions while state and local governments added 21,000.
The Fed isn't making any sudden moves. They'll likely hold interest rates steady at 4.25 - 4.5 percent when they meet March 18-19. Fed Chair Powell made this clear: "We do not need to be in a hurry and are well-positioned to wait for greater clarity."
Meanwhile, Treasury Secretary Scott Bessent is working a different angle. He's targeting 10-year Treasury yields instead of pressuring the Fed on short-term rates. His strategy? Use fiscal and regulatory reforms to convince markets that inflation will be controlled long-term.
Energy costs are a key part of his plan. Bessent believes lowering gas and heating oil prices does double duty: saves consumers money and boosts economic confidence. This matters because consumer spending is 70 percent of our economy.
Speaking of confidence – it's plummeting. February saw the largest monthly decline in consumer sentiment since August 2021. People across all age groups and income levels are increasingly pessimistic. They expect inflation to hit 6 percent in the coming year (significantly higher than current rates).
Got federal student loans? Applications for income-driven repayment plans are temporarily on hold. This affects all plans, even the older ones not being challenged in court.
The pause came after a federal appeals court expanded a suspension of the SAVE plan. About 8 million borrowers had enrolled in this program, with more than 400,000 having their debts erased. If you're working toward Public Service Loan Forgiveness, this is particularly important since income-driven plans are a key requirement.
In crypto news, bipartisan legislation for stablecoins is moving forward. The Senate has the GENIUS Act while the House has the STABLE Act (yes, that spells "stable genius").
These bills would establish clear rules about who can create stablecoins and require them to be fully backed by high-quality assets like U.S. dollars or Treasury bills. They would also officially classify stablecoins as payment instruments rather than securities – a significant regulatory distinction.
The housing market? It varies dramatically by location. In DC, some zip codes are seeing prices climb rapidly while others face steep declines. The lesson: real estate is hyper-local. Success comes from becoming an expert in just a couple of specific zip codes rather than trying to understand entire metropolitan markets.
As Fed Chair Powell wisely put it, the key is "separating the signal from the noise as the outlook evolves." That's solid advice for navigating our current economic landscape.
Episode Mentioned:
Afford Anything Episode 564, The Real Story Behind Those Economic Tariffs
https://affordanything.com/564-the-real-story-behind-these-new-tariffs/
Timestamps:
Note: The provided timestamps are approximate and may be several minutes off due to changing ad lengths.
(00:00) March's Economic Update
(01:18) February Jobs Report
(04:18) The Fed is to meet on March 18-19 about interest rates
(08:14) Consumer Confidence Survey
(10:33) Stock Market Performance
(14:14) Deep Seek Chat Bot
(17:28) New CFTC Chairperson is crypto friendly
(20:34) Home Market in the D.C area changing
(25:24) Income Driven Repayment Plan applications temporarily on hold
(27:41) Stablecoins
(30:58) Certain borrowers may be excluded from student loan forgiveness
(31:54) Fed Chair Jerome Powell says the Fed is "awaiting greater clarity"
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36:22
Q&A: Should You Cash Out Your ETFs? The Hidden Consequences of That Decision …
#587: Debi is stressed about saving a down payment to buy a house in her high-cost-of-living area. Should she cash out her brokerage account to speed up the process?
Lucas and his wife are high earners, but they’re tired and ready for a change. What strategies can they use to maximize their investments and confidently step away from their jobs?
Grant is thrown off by recent discussions about the efficient frontier. It sounds a lot like market timing to base an investment strategy on an arbitrary set of historical dates. What’s he missing?
Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it at https://affordanything.com/voicemail
For more information, visit the show notes at https://affordanything.com/episode587
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1:08:25
Money Doubles Every 10 Years (and Most People Never Notice!), with Scott Yamamura
#586: If you are a complete beginner at finances, or if you know someone who is, this episode is for you.
The biggest hurdle for beginners? Money seems complex and intimidating. But Scott Yamamura, author of Financial Epiphany, explains personal finance doesn't have to be complicated. He breaks compound interest into three easy-to-grasp frameworks:
Money as a Multiplying Ability: Just like athletes have peak physical abilities in their 20s, your money has its greatest multiplying power when you're young. At age 22, every dollar invested can multiply 16 times by retirement (assuming a 40-year career and 7.2 percent returns).
The Doubling Framework: Money can double approximately every 10 years with average market returns. This explains why a dollar invested at 22 becomes $2 by 32, $4 by 42, $8 by 52, and $16 by 62.
The Halving Concept: With each decade that passes, your money's multiplying power gets cut in half. This is the inverse of the above idea.
Scott shares how these simple frameworks helped him front-load his son's college savings. "We can stop now because it's going to double," he said.
For beginners struggling with analysis paralysis, Scott offers a Rubik's Cube analogy: You don't need to understand all 43 quintillion possible combinations to solve it — you just need one simple method to get started.
Similarly, you don't need to master every financial concept to begin investing.
The most important step is just to get started. You can learn the complexities later, but starting early gives your money more time to grow.
Scott also emphasizes finding your "why" — a purpose bigger than just accumulating wealth. He shares a moving story about a man named Ernie who funded his mission trip to Sierra Leone, showing how money can be used to make a profound difference in people's lives.
Timestamps:
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.
(0:00) Introduction
(1:16) Scott discusses reframing compound interest as "money multiplying ability"
(3:47) Money multiplying power works like athletic ability - strongest when young
(7:02) Scott addresses challenges of saving when young and broke
(10:29) Explanation of the Rule of 72 for doubling money
(13:43) Every dollar invested at 22 multiplies 16x by retirement
(17:08) What to do if you're starting late with retirement savings
(20:44) Three core ideas of compound interest
(23:19) Using the concept of "halving" to create urgency to invest
(30:30) Finding your "why" to overcome financial temptations
(33:07) Scott shares personal story about Sierra Leone mission trip
(36:46) The joy of spontaneous giving as motivation for building wealth
(40:53) Balancing retirement savings with paying off debt
(43:38) Simplifying finance through the Rubik's Cube analogy
(52:50) Paula's wrap-up with actionable investing advice for beginners
For more information, visit the show notes at https://affordanything.com/episode586
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1:15:44
Q&A: The Hidden Tax Drain in Your Investment Strategy
#585: Michael rebalances his portfolio every year. But he’s worried that triggering capital gains taxes on his brokerage account will cancel out the benefits of reallocation. Is there a better approach?
Sam has an opportunity to switch jobs, but she’s confused about how an Employee Stock Ownership Plan stacks against her current employer’s 401(k). Is she getting a good offer?
Carlos is excited about early retirement in Brazil, but he’s worried about the tax implications for his U.S.-based retirement accounts. How should he prepare for this move?
Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode.
Enjoy!
P.S. Got a question? Leave it https://affordanything.com/voicemail
For more information, visit the show notes at https://affordanything.com/episode585
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55:51
Sahil Bloom: Which of the Five Wealth Types Are You Neglecting?
#584: Think about how you spend an average day. Would the 10-year-old version of yourself be impressed? What about the 90-year-old version?
These two powerful questions frame our conversation with Sahil Bloom, founder and managing partner of an early-stage venture fund with investments in over 60 startups and author of The Curiosity Chronicle, a newsletter that reaches more than a million readers worldwide.
Sahil shares the story of his own wake-up call. While living in California and earning massive money as a venture inventor, he had a drink with an old friend who asked how often he saw his parents. When Sahil answered "about once a year," his friend asked how old they were. Learning they were in their mid-60s, his friend calculated: "So you're going to see your parents 15 more times before they die," assuming they'd live to about 80.
That gut-punch realization led to massive change. Within 45 days, Sahil had left his job, sold his house, and moved across the country to be closer to family.
This shift represents the core of Sahil's philosophy about the five types of wealth:
1. Time wealth: Control over your calendar and priorities
2. Social wealth: Deep, meaningful connections with others
3. Mental wealth: Curiosity, purpose, and personal growth
4. Physical wealth: Health and vitality
5. Financial wealth: Traditional money and assets
Most of us focus exclusively on financial wealth because it's easily measurable. But Sahil argues that true wealth encompasses all five domains, and we should intentionally invest in each one.
Sahil shares practical exercises for building each type of wealth:
- For time wealth, create an "energy calendar" by tracking which activities energize versus drain you
- For social wealth, map your relationships based on how healthy and frequent they are
- For purpose, ask yourself what your world (family, community, etc.) needs from you
- For physical wealth, focus on movement, nutrition, and recovery through simple practices
- For financial wealth, clearly define what "enough" looks like for you
These five domains aren't meant to be balanced perfectly every day. Instead, Sahil suggests thinking in seasons — some periods might emphasize financial growth while others prioritize family time.
Sahil also discusses powerful concepts like goals versus anti-goals (what you're unwilling to sacrifice to reach your goals) and "Memento Mori" — the ancient Roman practice of remembering one's mortality to inspire present action.
The conversation ends with a reminder that "your life has seasons" just like the weather — you don't expect to experience all four seasons in a single day, so don't expect perfect balance in every area of life simultaneously.
For more from Sahil Bloom, find him on major social platforms or visit fivetypesofwealth.com.
Timestamps:
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.
# Episode Timestamps
(0:00) Would your 10-year-old self be impressed with your life?
(1:46) Sahil's wake-up call: seeing parents only 15 more times before they die
(4:19) The Tail End: visualizing how few books and moments remain in life
(6:56) Small changes that dramatically increase time with loved ones
(13:26) The tension between ambition and presence; why "later" becomes "never"
(17:42) Why we measure financial wealth but not other forms of wealth
(19:47) The five types of wealth: financial, time, social, mental, physical
(30:09) Creating an "energy calendar" to track what energizes vs drains you
(38:09) Relationship mapping: evaluating connections by health and frequency
(42:33) Goals vs anti-goals: what you're unwilling to sacrifice for success
(51:17) Why your purpose doesn't need to be your work
(54:46) The 30-day health challenge: movement, nutrition, recovery
(57:05) Vonnegut and Heller on having "enough" vs wanting more
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You can afford anything, but not everything. We make daily decisions about how to spend money, time, energy, focus and attention – and ultimately, our life.
How do we make smarter decisions? How do we think from first principles?
On the surface, Afford Anything seems like a podcast about money and investing.
But under the hood, this is a show about how to think critically, recognize our behavioral blind spots, and make smarter choices. We’re into the psychology of money, and we love metacognition: thinking about how to think.
In some episodes, we interview world-class experts: professors, researchers, scientists, authors. In other episodes, we answer your questions, talking through decision-making frameworks and mental models.
Want to learn more? Download our free book, Escape, at http://affordanything.com/escape. Hosted by Paula Pant.
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