How to Recession-Proof Your Finances

Speaker 1 I live in LA now, but lately I have been craving the seasons. Snow, hot cocoa, the whole thing.

Speaker 1 I don't even ski, but I have been daydreaming about working remotely from somewhere really cozy on the East Coast, like a cute little ski town for a little bit.

Speaker 1 And whenever I know I'm going to be gone for a while, I always remind myself that my home can actually be working for me while I'm away because I host my space on Airbnb.

Speaker 1 It is one of the easiest ways to earn passive income from something you already have, and that extra income feels particularly helpful this time of year as we approach the holidays. holidays.

Speaker 1 A lot of my friends say that sounds amazing, but where do you find the time to manage guests and bookings? And that's when I tell them about Airbnb's co-host network.

Speaker 1 Through Airbnb, you can find a local co-host who can help you set up your listing, handle reservations, communicate with guests, provide on-site support, even help with design and styling.

Speaker 1 I like to give a personal touch when I'm hosting on Airbnb. So I make a list of my favorite restaurants in the area and I hand write a note welcoming my guests to the property.

Speaker 1 My guests love it, but I also know that some of those little personal touches can take a lot of extra time. So this is the exact kind of thing that you would want your co-host to help you with.

Speaker 1 Whether you're traveling for work or chasing the snow or escaping it, or you've got a second place that just sits there empty more often than you'd like, your home doesn't have to just sit there.

Speaker 1 You can make extra money from it without taking on extra work. Find a co-host at airbnb.com slash host.

Speaker 2 Here's one piece of advice that I've given for years. Build an emergency fund.
Aim to stash away enough to cover at least three months of expenses in case your income suddenly drops.

Speaker 2 Sounds simple, right? But let's be honest, it's not. Saving even one month's worth of living costs can feel impossible.

Speaker 2 Just when you're making progress, that check engine light blinks on and derails your plans. Life already throws enough curveballs.
You don't need your bank adding to the chaos.

Speaker 2 That's why it's so important to choose one that makes savings easy and doesn't nibble away at your hard-earned money with ridiculous fees. Chime understands that every every dollar counts.

Speaker 2 That's why when you set up direct deposit through QIIME, you get access to fee-free features like free overdraft coverage, getting paid up to two days early with direct deposit, and more.

Speaker 2 With qualifying direct deposits, you're eligible for free overdraft up to $200 on debit card purchases and cash withdrawals. To date, QIIME has spotted members over $30 billion.

Speaker 2 Work on your financial goals through QIIME today. Open an account in just two minutes at chime.com/slash MNN.
That's chime.com/slash MNN. Chime feels like progress.

Speaker 3 Chime is a financial technology company, not a bank. Banking services and debit card provided by the Bank Bank NA or Stripe Bank NA.
Members of DIC.

Speaker 3 Spot me eligibility requirements and overdraft limits apply. Timing depends on submission of payment file.

Speaker 3 Fees apply at out-of-network ATMs, bank ranking, and number of ATMs, according to US News and World Report 2023. Chime, checking account required.

Speaker 2 Here's one piece of advice that I've given for years: build an emergency fund. Aim to stash away enough to cover at least three months of expenses in case your income suddenly drops.

Speaker 2 Sounds simple, right? But let's be honest, it's not. Saving even one month's worth of living costs can feel impossible.

Speaker 2 Just when you're making progress, that check engine light blinks on and derails your plans. Life already throws enough curveballs.
You don't need your bank adding to the chaos.

Speaker 2 That's why it's so important to choose one that makes savings easy and doesn't nibble away at your hard-earned money with ridiculous fees. QIIME understands that every dollar counts.

Speaker 2 That's why when you set up direct deposit through QIIME, you get access to fee-free features like free overdraft coverage, getting paid up to two days early with direct deposit, and more.

Speaker 2 With qualifying direct deposits, you're eligible for free overdraft up to $200 on debit card purchases and cash withdrawals. To date, QIIME has spotted members over $30 billion.

Speaker 2 Work on your financial goals through QIIME today. Open an account in just two minutes at chime.com/slash MNN.
That's chime.com slash MNN. Chime feels like progress.

Speaker 3 Chime is a financial technology company, not a bank. Banking services and debit card provided by the Bankor Bank NA or Stripe Bank NA.

Speaker 3 Members, FDIC, spot me eligibility requirements and overdraft limits apply. Timing depends on submission of payment file.

Speaker 3 Fees apply at out-of-network ATMs, bank ranking, and number of ATMs, according to US News and World Report 2023. Chime checking account required.

Speaker 2 I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand.

Speaker 1 It's time for some money rehab.

Speaker 1 Today, we're going to talk about one of the most expensive mistakes you can make with your money. And it's one that a lot of people don't even realize they're making.
Are you ready for it?

Speaker 1 It's waiting to invest. Yeah, you're sitting on the sidelines and that can cost you big time.
Today, I'm going to prove it. I get it.
Investing can be intimidating.

Speaker 1 There is so much jargon, so many numbers, and so many opinions. Maybe you're thinking, I'm doing just fine with my salary and I don't need to invest.
Thank you very much.

Speaker 1 Or I need to learn more before I dive in. And trust me, I've heard all the excuses and I even used a few of them myself back in the day.
But here's the truth.

Speaker 1 When it comes to investing, time is literally money. The biggest factor in growing your wealth, it's not about picking the hottest stock or timing the market just right.

Speaker 1 You may have heard me say that the ROI on investments typically doesn't come from timing the market, rather, how much time you are in the market. It is as simple as that.

Speaker 1 The longer you're invested, the more it can grow thanks to the magic of compound interest.

Speaker 1 I told you I would prove it, and I will. Let's say you invest $5,000 in the stock market.
Historically, the S ⁇ P 500 has returned about 10% a year.

Speaker 1 Now, of course, some years are higher and some years are lower, but 10% is a good average for us to illustrate this point.

Speaker 1 Here's how much you could have by the time you're 65, depending on when you start. If you start at 20 years old, you'll invest a total of $225,000.

Speaker 1 By 65 years old, that could grow to around $3.6 million.

Speaker 1 If you wait until 30, you'll invest 175K. By the time you're 65, you'll have about $1.4 million.

Speaker 1 That's a lot, but look at the difference. That's over $2 million for just waiting 10 years.
If you start at 40, you'll invest $125K and you'll end up with about $490,000.

Speaker 1 And if you wait until you're 50, you'll invest 75 grand and you'll end up with only about 160 grand. The pattern is obvious.
The earlier you start, the more compound interest has to do its thing.

Speaker 1 And look, I get it. When you're in the thick of your career, retirement feels so, so far away and you have other priorities.
But even a 10-year delay could cost you millions.

Speaker 1 That's the power of starting early. Okay, but what if you're listening to this and you're not 20 years old? Maybe you're 30 or 40 or 50 and you're thinking, great, I missed the boat.

Speaker 1 First of all, it is never too late to start. Every dollar you invest today is better than waiting another year.
And even if you start later, you can still build wealth by investing consistently.

Speaker 1 So how do you get started? Well, if you're the DIY type, you can open a brokerage account and start investing in index funds or ETFs that track the S ⁇ P 500.

Speaker 1 These are low-cost and historically reliable ways to grow your money. That's how I started.

Speaker 1 But a financial advisor can be a game changer if you're not sure where to start or if you want the confidence of knowing that someone who literally does this for a living has your back.

Speaker 1 A good financial advisor can help you create a personalized plan, navigate complex tax questions, and keep you on track when the market gets bumpy.

Speaker 1 But just a heads up, not all advisors are created equal, so please make sure you understand how they get paid.

Speaker 1 Some charge a flat fee, some take a percentage of your investments, and others get commissions on the products they sell. Choose one whose incentives not only align with yours, but are yours.

Speaker 1 That's why I really love personally creative planning.

Speaker 1 Advisors at Creative Planning are fiduciaries, which means they are legally obligated to act in your best interest and can help you maximize your money's potential.

Speaker 1 For today's tip, you can take straight to the bank.

Speaker 1 If you want help with an investment plan that's completely tailored to you and your goals, check out creativeplanning at creativeplanning.com slash Nicole.

Speaker 1 You can learn how they can help and get a free free consultation call at creativeplanning.com slash nicole.

Speaker 2 Money rehab is a production of Money News Network. I'm your host, Nicole Lapin.
Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes.
Do you need some money rehab?

Speaker 2 And let's be honest, we all do.

Speaker 2 So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.

Speaker 2 And follow us on Instagram Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you.

Speaker 1 No, seriously, thank you.

Speaker 2 Thank you for listening and for investing in yourself, which is the most important investment you can make.