Budgeting For Bacon: Recent Episodes
Kate Delamare
Passionate about food? So are we! Tune in to learn tips, tricks, and simple ways you can boost your finances and Bring Home The Bacon! You will hear about tasty eats and treats while learning about budgeting, boosting your credit, and paying off debt.
Parent PLUS Loan student debt is $103.6 billion in America as of 2021. This doesn’t include private loans!
In today’s episode Kate delves into student loans from the perspective of a parent. Your future student may need assistance paying for a college education. We’ll cover what a parent loan is, where you should or should not get one from, and discuss tools for helping find money your child doesn’t have to pay back.
Make sure to take a look at the bottom of today’s show notes to see a list of resources to help you.
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores Lasagna and Homeownership.
KEY TOPICS:
A Little Halloween Chocolate Love/Fast Facts
- How many cocoa beans does it take to make a pound of chocolate?
- A Halloween adult treat idea for you to enjoy!
- How are cacao beans and currency-related?
Parent PLUS Loans
- Why should parent loans be a last resort?
- How much is the average amount parents borrowed to pay for college?
- What is an origination fee?
- Why are student loans and parent loans so bad?
- What are the pros and cons for Parent PLUS Loans vs Private Parent Loans?
- What are the different kinds of repayment plans for a Parent PLUS Loan?
- What are two places to go to for private loans?
Say Hello To Scholarships And Grants
- Why are scholarships and grants the best way to pay for college?
- How can a student’s characteristics help to find scholarships?
- Where can you locate scholarship opportunities?
- What is a work-study and how can it help pay for school?
- How to write an amazing admission or scholarship essay!
Other Ways To Pay For School
- What is a 529 Plan?
- Where can you open a 529 Plan (also check out resources below)?
- How can a 529 Plan help you save money?
- What happens if you don’t use a 529 for education expenses?
- ROTC programs and how high school students can earn military scholarships
- Where can you find resources for veterans, children of veterans, and future veterans?
- When should you apply to scholarship opportunities?
- Why should you choose a community college over a state school? Can you do both (Spoiler: YES!)?
- Reprise from last week: Why your child shouldn’t get a master’s degree
- How can your child land a $8,000 per month internship opportunity?
- How can an internship and distance learning be more effective?
- Wrapping it up: How Your Child Can Bring Home Their Bacon!
Don’t forget to Follow to stay up to date on the latest episodes. Resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. Kate provides coaching and mentoring to veterans and active-duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
Free Calculators:
- https://smartasset.com/student-loans/student-loan-calculator
- https://www.nerdwallet.com/article/loans/student-loans/biweekly-student-loan-payments
- https://www.bankrate.com/calculators/college-planning/loan-calculator.aspx
O*NET (look up a future job’s prospects and education required):
- https://www.onetonline.org/
529 Plans
- https://www.fidelity.com/529-plans/what-is-a-529-plan
- https://investor.vanguard.com/529-plan/
Scholarship and Internship Opportunities
- https://www.scholarships.com/financial-aid/college-scholarships/scholarships-by-type/military-scholarships/
- https://www.glassdoor.com/blog/highest-paying-internships/
- https://www.fastweb.com/
- https://scholarship.collegecovered.com/
Today’s episode may contain affiliate links and we may make a commission off a sale.
The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials to protect you from misleading advertising that’s been paid for by a company. Budgeting For Bacon does occasionally include endorsements and testimonials, so it’s important to us to disclose the following: We only endorse and promote products we trust and use for ourselves.
Student loan debt in America has reached $1.73 trillion and it may cost you a home!
In today’s episode, Kate delves into student loans from the perspective of a prospective, current, or former student. Be sure to look for next week's episode where she covers student loans from the perspective of a parent.
Did you know that your state could be one of the biggest factors in whether or not you leave school with excessive student loan debt? Today you’ll learn about different resources to find student loan counseling, free calculators, and tactics you can use to pay off your debt faster.
Be sure to listen to the end to learn about a newer variety of chocolate!
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores Chocolate and Student Loans – Part 2 (Parent Skills).
KEY TOPICS:
Location, Location, Location
- Do different states have different student loan debts?
- Which states have the highest or lowest student loan indebtedness?
- Why is there a difference between different states?
- What school has the highest cost of an undergraduate degree?
- Where to find a free calculator for student loans?
- Where to find student loan counselors if you are going to be a student vs used to be a student?
Choosing A Degree
- Getting a degree to match your future employment needs
- College courses that don’t match your major
- Why you should do distance learning courses
- 15 jobs that pay more than $50,000 without a degree at all
- Degrees that just aren’t worth the paper they are written on
Say Goodbye To Masters Degrees
- Why are master’s degrees dead?
- When should master’s degrees and PhDs be attempted?
- Where can you find out what education you actually need for certain jobs?
- Finding a balance with choosing a degree based on pay (i.e. a degree you can actually pay back)
- Can you get student loans discharged in a bankruptcy? Is it hard?
- When you hate the industry that your degree is in. What to do next.
Doing The Math/Paying It Off (and a new chocolate variety you’ll want to try)
- Increasing your income and decreasing your expenses to create a surplus (even a small one)
- Debt Snowball vs Debt Avalanche: Which one is better?
- How to calculate your Debt-to-Income Ratio (DTI)?
- What is a Debt-to-Income Ratio (DTI) used for?
- What is the highest DTI you can have and still get a mortgage?
- How to end up with more student loan debt than what you originally borrowed.
- Should you refinance your student loans? Why shouldn’t you?
- Why you shouldn’t count on Public Service Loan Forgiveness
- How to get a 0.25% APR discount on your student loans
- Why you should still pay student loans while in school.
- The 50/30/20 rule for windfalls
- Employee benefits! How to take advantage of employment to pay for your education.
Don’t forget to Follow to stay up to date on the latest episodes. Resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. Kate provides coaching and mentoring to veterans and active-duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
Free Calculators:
- https://smartasset.com/student-loans/student-loan-calculator
- https://smartasset.com/taxes/california-paycheck-calculator
- https://www.nerdwallet.com/article/loans/student-loans/biweekly-student-loan-payments
O*NET:
- https://www.onetonline.org/
Articles of Interest
- https://twitter.com/danpriceseattle/status/1412608971010084864?lang=en
- https://www.indeed.com/viewjob?from=app-tracker-saved-appcard&hl=en&jk=e60f32970a6ad212&tk=1fi0tjj943ogd000
- https://www.forbes.com/sites/adamminsky/2021/08/12/for-many-paying-student-loans-doesnt-stop-balances-from-growing-advocate-push-cancellation-as-a-fix/?sh=4abf8a36691d
- https://www.collegesimply.com/colleges/california/scripps-college/outcomes/
- https://www.cnbc.com/2021/09/09/america-has-1point73-trillion-in-student-debtborrowers-from-these-states-owe-the-most.html
- https://www.statista.com/statistics/244041/most-expensive-colleges-in-the-us/
Today’s episode may contain affiliate links and we may make a commission off a sale.
The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials to protect you from misleading advertising that’s been paid for by a company. Budgeting For Bacon does occasionally include endorsements and testimonials, so it’s important to us to disclose the following: We only endorse and promote products we trust and use for ourselves.
Multilevel Marketing (MLMs) could negatively affect you, your daughters, or your friends.
In today’s episode, Kate shares the fascinating history of the BLT and what makes it the Jack of all Trades sandwich.
Learn what an MLM is, the common elements that make them dangerous to your wallet, and a preview of some of the cult-like behaviors you can find within them.
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores Chocolate and Student Loans.
KEY TOPICS:
What Is A BLT?
- Where the first BLT actually came from
- The origin of mayonnaise
- Why tomatoes weren’t always considered food
- Why the BLT is an “everyman” kind of sandwich
What Is An MLM?
- The history of the MLM
- Learn how MLMs most commonly start up
- A basic example of how you know you’re in an MLM
- What is an upline or downline?
- What is a “hun bot?”
- Examples of some of the most common MLMs in 2021
- What do MLMs and Pay It Forward have in common?
- What is a ponzi scheme and how is that related to an MLM?
- Do MLMs get into trouble?
- How do MLMs stay legal?
- Why are so many MLMs vitamin supplements?
- Who do MLMs usually target?
- How to know if an independent sales consultant/distributor for an MLM is lying to you.
- Why are MLM consultants never employees?
- Can you actually make money from an MLM? When is the best time to join?
Don’t forget to Follow to stay up to date on the latest episodes. Recipes and resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. Kate provides coaching and mentoring to veterans and active-duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES (not sponsored):
Fun Alternative BLT Ideas:
- https://www.delish.com/cooking/recipe-ideas/g1391/blt-recipes/
More MLM info: Investopedia:
- https://www.investopedia.com/terms/m/multi-level-marketing.asp
Help for Getting Friends Out of MLMs
- https://www.vice.com/en/article/43e573/how-to-get-a-friend-out-of-an-mlm-herbalife-amway-younique-
Anti-MLM Coalition
- https://mlmtruth.org/
Today’s episode may contain affiliate links and we may make a commission off a sale.
The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials to protect you from misleading advertising that’s been paid for by a company. Budgeting For Bacon does occasionally include endorsements and testimonials, so it’s important to us to disclose the following: We only endorse and promote products we trust and use for ourselves.
You may be spending more than $2,000 on coffee and energy drinks every year!
In today’s episode, Kate returns with her husband Justin to try common brands of coffee and energy drinks to examine which one has the best value for the money and the common pitfalls of the race for caffeine.
Coffee and energy drinks are some of the leading money splurges in the United States. Chronic habitual spending without really knowing the long-term costs can drain a bank account over time and reduce the overall saving you’re able to do. Kate explores some of the ways you can save money but still get your morning caffeine fix.
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores BLTs and MLMs.
KEY TOPICS:
To jump ahead to where we talk about money-saving tips specifically go to 37 minutes into the episode.
Types of Coffee We Tried (Reminder: Absolutely none of these were sponsored!)
- Starbucks Iced Espresso Caramel Macchiato - $2.99
- Peets Coffee & Cream – $2.99
- Starbucks Instant Coffee Packets - $10.49
- Starbucks Cold Brew Concentrate - $10.49
- Starbucks Double Shot - $3.19
- Simple Truth Nitro - $2.99
Types of Energy Drinks We Tried
- Monster Loca Moca - $2.79 B2G1
- Xtreme Soda Stream - $5.99
- Monster Java - $2.79 B2G1
- Monster Mean Bean - $2.79 B2G1
Coffee Money Savings Hacks
- What is the envelope system?
- How can homebrew save you money and what do you need?
- Alternatives to expensive coffee drinks
- What should you do with your extra coffee?
- DIY you will love
- It’s time to Concentrate… no really!
- Is instant coffee any good?
- How to get free coffee (hint: rebates!)
Energy Drink Money Saving Hacks
- What the manufacturer can do for your support!
- The pros of ordering in bulk
- How can writing out your weekly grocery list save you money?
- Which caffeine sources should you actually stay away from? (Foreshadowing for next week!)
- Energy drink alternatives to love
Don’t forget to Follow to stay up to date on the latest episodes. Recipes and resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. Kate provides coaching and mentoring to veterans and active-duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
Coffee bean grinders:
- https://amzn.to/3zziHzh
- https://amzn.to/2W9JBQQ
Milk Frother:
- https://amzn.to/39sgVWj
DIY Coffee Creamer Recipes
- https://www.biggerbolderbaking.com/coffee-creamer-homemade-3-flavors/
Huffington Post: Best Instant Coffee
- https://www.huffpost.com/entry/best-instant-coffee_n_1405887
FDA Caffeine Guidelines
- https://www.fda.gov/consumers/consumer-updates/spilling-beans-how-much-caffeine-too-much
Today’s episode may contain affiliate links and we may make a commission off a sale.
The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials to protect you from misleading advertising that’s been paid for by a company. Budgeting For Bacon does occasionally include endorsements and testimonials, so it’s important to us to disclose the following: We only endorse and promote products we trust and use for ourselves.
What used to cost $10,000 in 2018 now costs nearly $10,900 in 2021!
In today’s episode, Kate examines what inflation is, the different types of inflation, and what you can do with your savings and investing strategy to combat inflation.
In this easy-to-understand episode, we’ll use tasty slow-smoked ribs as an example of common ways that we end up spending more and more for the same goods and services each year.
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores Coffee Madness and the Power of Habitual Spending.
KEY TOPICS:
WHAT IS INFLATION? (0:47)
- What is the definition of inflation?
- What do they mean by “given currency”?
- How to understand what purchasing power means to you!
- Is inflation good or bad?
DIFFERENT TYPES OF INFLATION: EXAMPLE ONE (04:30)
- Why did the price of the slow-smoked ribs go up?
- Real-life examples of this happening in 2021.
- What is the Cost-Push Effect?
DIFFERENT TYPES OF INFLATION: EXAMPLE TWO (12:27)
- How does supply affect inflation and prices?
- Real-life examples of this happening in 2021.
- What is the Demand-Pull Effect?
- What are the two key elements of the Demand-Pull Effect?
DIFFERENT TYPES OF INFLATION: EXAMPLE THREE (18:10)
- Why haven’t wages increased with inflation?
- Real-life examples of this happening in 2021.
- What is Built-In Inflation?
- What is a wage-price spiral?
HOW DO I COMBAT INFLATION? (20:58)
- Where to find a free inflation calculator?
- Does Annual Percentage Yield (APY) account for inflation?
- How can inflation affect my investments?
- What kinds of investments should I go for during inflation periods?
- What if I’m not an investor but I want to beat inflation?
- How do you know if you have the right strategy? (HOW YOU BRING HOME YOUR BACON!)
Don’t forget to Follow to stay up to date on the latest episodes. Recipe and resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. Kate provides coaching and mentoring to veterans and active-duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
Inflation Calculator:
- https://www.bls.gov/data/inflation_calculator.htm
Warren Buffett’s Tips For Inflation:
- https://www.bankrate.com/investing/warren-buffett-top-tips-to-beat-inflation/
Fall Off The Bone Ribs Recipe
- https://heygrillhey.com/3-2-1-ribs-perfect-fall-off-the-bone-ribs/
Today’s episode may contain affiliate links and we may make a commission off a sale.
The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials to protect you from misleading advertising that’s been paid for by a company. Budgeting For Bacon does occasionally include endorsements and testimonials, so it’s important to us to disclose the following: We only endorse and promote products we trust and use for ourselves.
What would you do with an extra $7,400 this year?
On today’s episode, Kate explores the most common splurge money mistakes and how to avoid making them. From online shopping to gym memberships, you’ll get a breakdown of tricks, helpful apps, and easy-to-implement action plans to save more money.
Did you know that no two ribeye steaks on a cow are completely alike? You might not be getting the quality you’re paying for at your favorite restaurant. You’ll learn why there’s a difference and how to find a better ribeye. Tune in to find out!
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores Slow Smoked Ribs and Inflation.
KEY TOPICS:
WHAT MAKES A RIBEYE (00:52)
- How big are plates in North American restaurants?
- What’s the difference between one ribeye and another?
- What do Canadians call Canadian Bacon?
- How can you find a better ribeye?
WHERE ARE YOU SPLURGING? (05:04)
- How much are you spending each week on splurges on average?
- What are the most common places people splurge?
- How much will Americans spend online in the United States in 2021?
- Apps that can help save you money online, especially for your Amazon purchases!
- How are subscription services killing your budget without warning?
- How to know if you’re getting a good deal on electronic devices?
- When is the worst time to buy electronics?
- How much do Americans spend on lunches and how can you save?
- How you are losing money in fees with Doordash, Ubereats, and Grubhub!
- Do you love home improvement and buying household items? You’ll want to tune in.
- How to calculate what you’re spending on coffee every year plus a preview of a future episode!
- What you need to know about signing up for a gym membership and why you should plan to quit the gym.
SAVE MONEY ON SPLURGES (24:52)
- What you need to know to save money on your favorite splurges and save more money than you expected.
- Want a free app that can save you time and money? (no sponsors here, genuine review!)
- What is a “savings spree” and how can you use it to boost your savings? (How you bring home your bacon!)
Don’t forget to Follow to stay up to date on the latest episodes. Recipe and resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. She also provides coaching and mentoring to veterans and active duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
DIY Clothing Recycling Projects To Try:
- https://vocal.media/earth/what-marie-kondo-taught-me-about-upcycling
East Coast Studio Podcast Editing:
- https://eastcoaststudio.ca/
Ibotta, Rakuten, and The Camelizer (Who do not sponsor our content at this time, we just think it can help)
- https://home.ibotta.com/
- https://www.rakuten.com/
- https://camelcamelcamel.com/camelizer (not available on Safari yet, but it’s coming soon)
There are secrets the supermarket doesn’t want you to know, but Kate is ready to reveal all in this episode of Mac and Cheese and Poor Man’s Budgeting. As a bonus, get ready to drool over a tasty homemade Mac and Cheese recipe your kids will look forward to having again and again. Podcast and chill while examining ways that you can save money in the grocery store.
Want to know how to beat supermarket trickery and save hundreds of dollars a month?
Join Kate in this episode of Budgeting For Bacon. From cart sizing costing you more cash to cereal aisle kid catastrophe, you’ll hear about ways to beat advertising tricks with grocery store savings hacks.
You can learn more about this podcast by going to www.budgetingforbacon.com. Join Kate next time as she explores Ribeyes and Splurges.
KEY TOPICS:
KATE & MAC AND CHEESE
00:55 – Kate describes why some mac and cheese is better than others and how childhood association can mean different preferences.
01:31 – What’s the winning sweet spot for a great mac and cheese recipe?
02:06 – A single box of Kraft mac and cheese costs $0.99 at Target but isn’t particularly exciting. But Kate has a great recipe to give after revealing the secrets of the supermarket!
AVERAGE GROCERY COST
02:54 – There are different kinds of expenses you pay for every month: Fixed, Discretionary, and Variable
03:57 – Why is food a mix between a Discretionary and a Variable expense?
04:36 – The USDA reports the average cost of food for different levels of budgets. Learn more about the Thrifty Plan and Moderate Plan to know how your food spending measures up!
SUPERMARKET PSYCHOLOGY
07:06 – Supermarkets measure human behavior. There’s a reason why grocery stores in different states are so similar. This part might feel suspiciously familiar.
07:38 – What is Implicit Priming and how is it being used against you?
08:38 – Why you will never find an “Essentials Aisle.”
09:34 – How long should a grocery store trip take?
10:05 – Why are grocery stores always moving items around?
10:45 – What is the worst place to find deals in the supermarket?
13:20 – Why you may be paying 40% more for your in-store groceries!
14:59 – Your kids are being targeted by big brands using underhanded cereal aisle tactics.
15:34 – What you need to know about shopping at Winco and Costco.
16:03 – Why do grocery stores really offer free samples?
16:35 – Why you might be paying 30% more on Instacart and how to avoid it!
SAVE MONEY ON GROCERIES
19:47 – How to know you are getting a good price on Instacart and other down and dirty ways to save up to 50% more. (HOW YOU BRING HOME YOUR BACON)
21:35 – You could save another $150 more a year on groceries on top of all your new savings with a simple trick.
ELEVATED MAC AND CHEESE ON A BUDGET
22:22 – Your new favorite Mac and Cheese recipe, but without breaking the bank.
22:54 – Why mustard powder should be your new best friend for cheesy recipes.
23:43 – Use this Life Hack for an easier way to shred and grate cheese.
25:45 – THROWBACK: Reminder from Bacon and Banking episode – How to know you are getting good quality bacon at the grocery store.
Don’t forget to Follow to stay up to date on the latest episodes. The recipe and resources are below.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. She also provides coaching and mentoring to veterans and active duty families to help get their budgets back on track.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
USDA Food Plan Budget Tiers:
- https://www.fns.usda.gov/cnpp/usda-food-plans-cost-food-reports-monthly-reports
Brandwashed by Martin Lindstrom:
- https://amzn.to/3yUh6nl
Homemade Bacon Mac and Cheese Recipe:
- https://www.budgetingforbaconpodcast.com/post/homemade-bacon-mac-and-cheese
Eating a big bowl of spicy ramen is a risk to your taste buds (and your pride!), but it’s a risk that has the potential for gain in terms of a great meal. Investing in the stock market is a lot like eating spicy ramen. On this second episode of the Budgeting for Bacon podcast, Kate is joined by her husband, Justin Delamare and together the two singe their tastebuds, all in an effort to tell their listeners about the risks and rewards of investing.
Eating spicy ramen is not a safe bet, but drinking milk right afterwards makes the risk a little more worth taking. In the same way, there are investing options out there that are more risk-heavy and those that are low-risk. During this episode, Kate and Justin chose to wait to drink their milk until five minutes after they have eaten the spicy ramen, making it more of a risk. Using this illustration, Kate shares how there are high-risk and low-risk investments. Some low-risks investments include investing in US Treasury bonds, certificates of deposit, or government money market accounts. High-risk investments include crypto assets, real estate, or IPOs. Knowing your risk tolerance when it comes to investing is important before you even meet with a financial advisor. Luckily there are tools out there like Investopedia to help you get comfortable with investing without risking any real money.
Kate wraps up the episode (and cools off her tastebuds!) by telling listeners about the benefits of diversifying your investment portfolio using mutual funds or a wide variety of stocks. Diversification lowers your risk over the long term, and that’s how you bring home the bacon.
You can learn more about this podcast by clicking here. Join Kate next time as she explores Mac and Cheese & Poor Man’s Budgeting.
KEY TOPICS:
KATE, JUSTIN, & SPICY RAMEN
01:24 – Justin describes his typical tolerance for spicy food.
02:51 – Kate describes how in most cases when it comes to choosing between being owing $50 or flipping a coin to either los $100 or nothing, people would choose the coin flip and risk the loss to avoid losing their money.
04:34 – Kate and Justin try their spicy ramen, to mixed results.
SPICEY RAMEN & RISK
12:22 – Risk is defined as having the possibility of losing some or all of your investment. Like Kate and Justin’s spicy ramen challenge, the risk of eating the spicy ramen is losing a bit of pride and affecting their tastebuds—there’s a chance of loss in the stock market, but also the possibility to gain.
13:25 – After doing the spicy ramen challenge, Justin says his risk tolerance for investing $100,000 would be a medium level of risk.
14:34 – A riskless way to try your hand at investing is by using Investopedia Stock Simulator to invest $100,000 of virtual money into the stock market.
16:44 – Investopedia takes that risk element out of investing. When Kate and Justin were looking at the spicy ramen in their bowls, they were already scared of what might happen. Investopedia takes that coin toss risk of loss out of investing, and helps you get familiar with all the terminology that comes along with investing.
18:03 – Knowing your risk tolerance is important for investing. The more you invest, the higher the returns, but the also the bigger the potential for loss. Knowing where you stand when it comes to your risk profile is important before you even go to a financial advisor.
18:58 – There are no truly risk-free investments, but there are investments that are much less risky. In Kate and Justin’s case with the spicy ramen, milk was a safe investment.
19:20 – Safer investments include US Treasury bonds, certificates of deposit, or government money market accounts.
19:55 – In terms of investing, waiting five minutes to drink milk after eating spicy ramen is riskier than if Kate and Justin would have had the milk right away. That time element with investing is called the maturity date. It’s a lot riskier to invest if you’re needing that money right away, versus keeping it in the market for a while.
20:33 – Higher risk investment options include crypto assets, real estate, and IPOs. You can’t make a good meal with just one ingredient, you need to diversify to make a better meal, and a better investing portfolio.
21:49 – Studies show that diversifying your portfolio across 20 to 30 different stocks is more cost effective. Spice lovers who like a little more risk should start investing in stocks, while those who are more risk-averse may want to consider US Treasury bonds that have more security.
22:32 – A mutual fund is a portfolio of a bunch of different stocks. It’s kind of like ramen in that it’s a pretty inexpensive way to invest, but it does take more time to manage a mutual fund.
23:58 – Kate finishes up the episode by sharing an example where you have $100,000 to invest in five stocks. Would you choose to distribute that money equally, or put it all into one and risk the loss, but also the potential gain? Diversification lowers your risk over the long term, and that’s how you bring home the bacon.
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. She believes that each brand has a unique message and ability to impact lives. With a primary focus on web content, particularly blog posts and articles, Kate is dedicated to helping businesses share their stories. She also assists small businesses and non-profits with proofreading and editing existing content.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
- Investopedia Stock Simulator:
- https://www.investopedia.com/simulator/
- Samyang Spicy Ramen:
- https://amzn.to/3jkLF19
- University of Missouri Risk Tolerance Test:
- https://pfp.missouri.edu/research/investment-risk-tolerance-assessment/
- This test takes about 15-20 minutes to complete at no cost to you and will not ask you for your name, address, or phone number. It was created for research and educational purposes only by the University of Missouri and will provide you with an understanding of your risk tolerance compared with other people.
- Morningstar:
https://www.morningstar.com/
Today’s episode may contain affiliate links and we may make a commission off a sale.
The Federal Trade Commission (FTC) has guidelines regarding endorsements and testimonials to protect you from misleading advertising that’s been paid for by a company. Budgeting For Bacon does occasionally include endorsements and testimonials, so it’s important to us to disclose the following: We only endorse and promote products we trust and use for ourselves.
One of financial planning’s basic commandments is: Lead a frugal life. But in this inaugural episode of Budgeting for Bacon, Host Kate Delamare offers a different path – one that balances smart money management with quality of life. She shows us how it’s possible to get in control of our finances while still savoring life’s pleasures. Like bacon!
Kate breaks down some important numbers, including what it costs annually to add a little extra bacon to a daily burger, and how it’s possible to make up that $361 expense without working longer hours or cutting back drastically elsewhere. She explains important banking basics, including the concepts of APY (annual percentage yield) and compound interest.
It’s a great day for saving money, says Kate, who offers fantastic resources (none of them paid sponsors) to help us identify bank or credit union that best fits our needs. If we’re willing to do a little legwork, we don’t have to leave interest savings on the table or wrestle with onerous minimum balances! BONUS: The episode wraps up with some important grocery store insight that every bacon-lover will want to hear.
Budgeting for Bacon teaches us how to be smarter with our money so we always have enough to live with joy! Kate believes you can – and should – still have your bacon!
You can learn more about this podcast by visiting www.budgetingforbacon.com. Join Kate next time as she explores Spicy Ramen & Risk.
KEY TOPICS:
FAST FACTS
00:53 – A bit about the history of bacon and the curing process, which dates back to 3,000 years ago in China.
01:44 – Kate explains some of the variances in style and cut between Canadian, U.S. and U.K. bacon.
02:15 – Where did the phrase “Bring home the bacon” originate anyway?
03:40 – A few interesting stats about bacon consumption and what it costs Americans each year. It’s more than you might guess!
BACON & BANKING BASICS
06:15 – Why are groceries such an important element when it comes to household budgeting? Kate shares insights about the interconnectedness between food and finance. Covid19 impacts, social occasions, workplaces – money decisions related to food are inevitable. It’s the universal necessity, and a constant.
08:48 – About fast food, that American tradition, and the premium you’ll pay to add bacon. That one meal a day with the bacon up-charge can quickly add up to an additional $361 extra per year. Is it worth the trade-off to allocate your paycheck this way? There’s an alternative and Kate shares what it is. (HINT: Have you compared banks lately?)
- Different banks have different ways of paying interest.
- High-yield accounts pay more than the national average of about .06-.07%.
- Do your homework to figure out how to avoid minimum balance fees.
- Consumers need to be alert to developments in banking, including online banking options with no minimum balances at all.
14:51 – Kate breaks down the APY – Annual Percentage Yield – and what it means to YOU. Banks calculate this differently and it can significantly impact the bottom line on your interest.
15:40 – A bit about the concept of Compound Interest.
17:16 – Check out some math that highlights the tremendous impact choosing the right bank – with the right APY – can have when it comes to maximizing savings.
18:52 – Kate shares the names of a few financial institutions (none of which are podcast sponsors) that offer favorable APYs.
20:03 – The difference between savings and money market accounts (not to be confused with money market funds, which are different). MMAs generally offer better interest rates, but also higher minimum balance or credit rating requirements. Some have limited monthly transactions, but they are still a great option for long-term growth.
22:08 – Kate explains the FDIC (Federal Deposit Insurance Corporation) and the protections it provides bank accounts. Credit unions – an excellent option – offer similar protections under NCUA (National Credit Union Administration).
24:17 – Figuring out where your minimum balance should realistically be and choosing a savings account accordingly. You don’t need a huge balance to get a good deal for your money.
26:00 – For listeners with up to $25,000, Kate recommends OneFinance, which is currently offering a 1% APY. Their website also offers a great budgeting tool (link below).
28:30 – Working towards that bacon money, you can actually make up that $361 bacon premium on your fast-food burger just by parking your money with a bank that optimizes savings and minimizes fees.
GROCERY STORE TIPS
29:53 – Some significant differences in curing processes will impact the quality of your bacon. Some brands inject extra sodium nitrate to cut corners, a practice known as “pumping.” Others use a fake smoke-flavored agent to simulate taste and color.
30:22 – When brands deploy “pumping,” the FDA requires them to disclose it in their ingredient list (often under the aliases sodium ascorbate or sodium erythorbate).
30:44 – Two examples are Oscar Meyer’s Naturally Hardwood Smoked and Hormel’s Black Label Brown Sugar Thick Cut. They sound fancy but aren’t necessarily the top of the line. Buyer beware when it comes to getting the best quality at the best price point!
ABOUT KATE:
Kate is passionate about all things personal finance and the many ways in which money intersects with quality of life. She’s also a pet-lover and travel writer who reveres the written word. She believes that each brand has a unique message and ability to impact lives. With a primary focus on web content, particularly blog posts and articles, Kate is dedicated to helping businesses share their stories. She also assists small businesses and non-profits with proofreading and editing existing content.
CONTACTS FOR KATE:
- (Website): https://www.budgetingforbacon.com
- (Facebook): https://www.facebook.com/TheKateDelamare/
- (Twitter): https://twitter.com/KateDelamare
- (Email): kate@budgetingforbacon.com
FURTHER RESOURCES:
- Free APY Calculator
https://www.axosbank.com/Tools/Calculators/APY-Calculator - Savings rate examples and resources:
- https://www.navyfederal.org/checking-savings/savings/savings-resources/savings-rates.html
- https://www.cnbc.com/select/best-high-yield-savings-accounts/
- https://www.cnbc.com/2019/05/31/you-can-make-25-times-as-much-interest-on-savings-with-wealthfront.html
- https://www.nerdwallet.com/rates/banking/savings-accounts?origin_impression_id=19522b22-cd33-4dc7-b639-59f2d1569c42
- Current recommendation:
https://www.onefinance.com/pockets/