Ep. 426: Parent PLUS Loans Are the Bane of Our Existence?!

We want to answer your questions about money. Email us and you may hear yours on the air: askpete@petetheplanner.com

This week on the Pete the Planner Show, Pete and Damian drop in with a new intro! You’ve got to hear this.

No time to listen?  Here’s a preview of what happened and when:

Show Notes:

PARENT PLUS LOANS ARE THE BANE OF EXISTENCE: [5:03]

  • Nerdwallet has a new survey for people with Parent PLUS Loans

    • DAMIAN: There are typically some unintended consequences that come with Parent PLUS loans. This can go far beyond family disharmony and reach into jeopardizing retirement accounts.
    • PETE: Prior to a student capping out their student loans, the choice of school and according scholarships weigh in.
    • DAMIAN: Often times, bonuses and potential future incomes don’t come in leaving parents to supplement their child’s education
    • PETE: I believe the toughest years of someone’s life are 47-53 – your kids are going through college, your midlife crisis, your health is changing, and so much more. Don’t put a Parent PLUS loan in the mix on top of this
    • DAMIAN: Make sure you’re not going to cut yourself off at the knees as you go through this period of your life

 

HOW TO TURN OVER A NEW LEAF, FINANCIALLY:  [19:58]

  • I previously have not been great with money. I want to turn over a new leaf. I want to show a commitment to myself and others, but how do you actually do that?

    • PETE: I think it’s beyond the budget. I think it starts at saving 10% of any income, no excuses. This is the best place to start.
    • DAMIAN: There’s a tangible result, but that 10% number could feel like a lot of money to some. Maybe try $1 on day one, $2 on day 2, and so on…
    • PETE: A friend of mine became a barber years ago. His dad told him to set aside $10 cash every day. He did. He had saved $10 per day, and $30 on Fridays to account for weekends….he did this for fifteen years. At the time I spoke with him, he had something like $55,000.
    • PETE: Step two is to critically look at your expenses and ask, “Does this actually matter to me and what I care about today?”
    • PETE: Step three is to create a realistic household budget. There are countless ways, but try something.

 

 

Keep it locked for even more!  Check it out in the full show!  — click PLAY below.

 

SIDE NOTE:

— Before you go, give your personal finances a facelift. Peep our personal guidance platform: Hey Money.

 

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