Financial Feminist – 117. Questions to Ask Before Making Big Financial Decisions

Intro

In this episode of the “Financial Feminist” podcast, host Tori Dunlap discusses the important questions to ask before making big financial decisions. She emphasizes the personal nature of personal finance and encourages listeners to make choices that align with their values and goals. Dunlap also highlights the significance of emergency funds and the potential challenges of combining finances with a partner. Throughout the episode, she provides valuable insights and practical advice to help listeners navigate these financial decisions.

Main Takeaways

Personal Finance and Decision-Making

• Personal finance is personal and there is no one-size-fits-all solution.
• Making financial decisions can be overwhelming, but considering them is a win.
• You don’t owe anyone an explanation for your choices.
• Don’t judge others for their financial decisions, as you don’t know their full story.
• Make choices that align with your values and that allow you to live the life you want.

Emergency Funds and Student Loans

• Emergency funds are crucial and should be prioritized before any other financial decisions.
• Emergency funds should be prioritized and kept in a high-yield savings account.
• Consider alternatives before taking out student loans, such as working in the field without a degree or with alternate certification, tuition support from employers, or more affordable state or community college options.
• Ask yourself if you would regret not getting a degree in the long-term, and if loans are the only option, understand the loan terms and consider loan forgiveness programs in your field.
• Seek out scholarships, work on campus, and think strategically about graduation to lessen the impact of loans.

Combining Finances and Job Decisions

• Combining finances with a partner can lead to problems and make it harder to make decisions about money.
• It’s important to have some separate money to make decisions for yourself and have your own hobbies.
• Consider signing a prenup or prenup-sall agreement before combining finances.
• Have good communication and set clear boundaries when it comes to finances.
• If combining finances without a legally binding agreement, make sure to have a written agreement in place to protect both parties.
• Start having conversations with your partner about money to avoid future problems.

Quitting Jobs and Big Life Decisions

• Before quitting your job, make sure you have an emergency fund that can support you while you look for a new opportunity.
• Reasons to consider quitting your job: toxic boss, no room for growth, compensation below industry standards, feeling ready for a career change.
• Before quitting your job, ask yourself if you will regret the decision in the long run.
• Managing money with someone? Talk to them before making a big life decision.
• Quick rundown of big financial decisions and questions to ask yourself before making them.
• Back catalog includes episodes on quitting your job, buying a house, and taking on student loans.
• Asking questions of yourself means you’re leveling up your life.

Summary

The Importance of Personal Finance and Decision-Making

Personal finance is a unique journey for each individual, and there is no one-size-fits-all solution. Making financial decisions can be overwhelming, but it is a step in the right direction. It’s important to remember that you don’t owe anyone an explanation for your choices and should avoid judging others for their financial decisions, as everyone has their own unique circumstances. The key is to make choices that align with your values and allow you to live the life you want.

The Significance of Emergency Funds and Student Loans

Building and prioritizing emergency funds is crucial before making any other financial decisions. These funds should be kept in a high-yield savings account to ensure they are readily accessible in times of need. When it comes to student loans, it’s important to consider alternatives, such as working in the field without a degree or exploring tuition support from employers. If loans are the only option, understanding the loan terms and exploring loan forgiveness programs in your field can help minimize the long-term impact. Seeking out scholarships, working on campus, and strategically planning graduation can also help lessen the financial burden of student loans.

Challenges and Considerations in Combining Finances

Combining finances with a partner can lead to complications and make it harder to make independent financial decisions. It’s important to have some separate money for personal decisions and hobbies. Considering signing a prenuptial or prenup-sall agreement before combining finances can help protect both parties. Good communication and setting clear boundaries are essential when it comes to managing finances as a couple. If combining finances without a legally binding agreement, having a written agreement in place is crucial to ensure both parties are protected. Starting conversations about money early on can help avoid future problems.

Quitting Jobs and Making Big Life Decisions

Before quitting your job, it’s essential to have an emergency fund in place that can support you during the transition period. Reasons to consider quitting your job include having a toxic boss, limited room for growth, compensation below industry standards, or feeling ready for a career change. However, it’s important to carefully evaluate whether you will regret the decision in the long run. Discussing big life decisions with your partner is crucial if you are managing money together. The episode also provides a quick rundown of big financial decisions and the questions to ask yourself before making them. The podcast’s back catalog includes episodes on quitting your job, buying a house, and taking on student loans. Asking questions and evaluating your choices is a way to level up your life.

Conclusion

The “Financial Feminist” podcast episode on questions to ask before making big financial decisions provides valuable insights and practical advice for navigating personal finance. By considering the personal nature of personal finance, prioritizing emergency funds, making informed choices about student loans, navigating the challenges of combining finances, and evaluating job decisions, listeners can make more confident and informed financial choices. It’s important to remember that everyone’s financial journey is unique, and by asking the right questions, individuals can level up their lives and achieve their financial goals.