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How to Invest (and other money questions with The Financial Diet)

2017-09-22 · collab / interview · Hank, Chelsea Fagan, Lauren Ver Hage · 3:53 · watch on YouTube

Topic: Economics · mode: Q&A & conversation · tags: guest or collab

A longer version is linked in the description: https://youtu.be/EIwnYPGNZlg.

Hank puts viewers' money questions to the creators of The Financial Diet, who advise paying credit cards in full but above all on time, starting to invest small through a low-cost firm like Fidelity rather than unregulated advisers, avoiding fast food, cryptocurrency and cashing out a 401k for student loans, and buying durable jeans.

What is said

The parts of the video and what is said in each (★ — how much it matters to the video).

00:00:00 — Hank introduces the creators of The Financial Diet

  • ★ Hank introduces his couch guests as the creators of The Financial Diet, a website and YouTube channel about personal finance. — 00:00:01 · The Financial Diet, YouTube

00:00:09 — Carrying credit card debt versus paying in full; credit utilization and on-time payments

  • ★★★ a guest: A guest says it is better to pay off credit card balances in full if you have the money, without depleting the cash reserves you need for emergencies. — 00:00:20
  • ★★ a guest: Part of a credit score depends on credit utilization, which paying in full lowers, but missing a payment hurts the score much more than higher utilization. — 00:00:34
  • ★★★ a guest: Long story short: pay the card off if you can, and if you can't, the most important thing is paying on time. — 00:00:58

00:01:12 — How to start investing: unregulated advisers, 401k, low-cost firms like Fidelity

  • ★★ a guest: A guest warns there is very little regulation of who can advise you with your money, so advisers may give bad or unqualified advice. — 00:01:21
  • ★★ a guest: You can start investing really small, and a workplace 401k, which many people have, is already investing. — 00:01:27
  • ★★★ a guest: A guest personally recommends a low-cost firm like Fidelity: good reputation, long history, low barrier, a couple hundred dollars a year, all online. — 00:01:42

00:01:52 — Eating and spending less on fast food

  • ★★ a guest: To eat and spend less on fast food, stop driving past it: plan an alternate route avoiding the places that tempt you most. — 00:01:55
  • ★★ a guest: The other guest adds: cook at home, the easiest way, or learn copycat recipes of your favourite fast food. — 00:02:05

00:02:16 — Cryptocurrency, credit card debt at death, cashing out a 401k to pay student loans

  • ★★★ a guest: Asked whether to invest in cryptocurrency, the answer is a flat no. — 00:02:16
  • ★★ a guest: Racking up card debt because it disappears at death ignores the years before then: unpaid bills have effects almost immediately. — 00:02:24
  • ★★★ a guest: Don't cash out a 401k to pay off student loans when changing jobs: the 401k is a very good deal and loans are probably at a low rate, so paying them as they come is better. (hedged) — 00:02:47

00:03:02 — Why jeans are expensive; Hank's holey Abercrombie jeans

  • ★★ a guest: Jean prices depend on the kind; jeans began as workman's clothes, are very durable, and a good pair lasts five years. — 00:03:21

00:03:33 — Where to find The Financial Diet; sign-off

In the description and comments

  • ★ The description says Hank wishes he could talk finances with Chelsea and Lauren all day and links their channel, blog, Twitters and a longer cut. — video description · Twitter

Threads in this video

Where the stories that moved here went next

Mentioned

Central: The Financial Diet

Also: Organizations: Abercrombie & Fitch · E-Trade · Fidelity Investments · Twitter · YouTube

Concepts: 401(k) · Credit card · Credit score · Cryptocurrency · Fast food · Financial adviser · Interest rate · Jeans · Student loan

Products: Chicken McNuggets

Taking part: Chelsea Fagan · Lauren Ver Hage

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