Learn how handle your money better as a couple with tips from His & Her Money hosts Tai and Talaat. They give advice on how to start talking about money with one another, digging out of debt fast, and building wealth together.

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Mastering your money can be a challenge, doing it as a couple – with different personalities and ideas on how to do it make it more complicated.

It can be done and that takes the two of you getting on the same page.

Learning to talk about money and deal with it as a duo is essential to achieve that.

This was actually something discussed in our second episode when I talked about how we began our financial journey.

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Managing Your Money as a Couple

Every couple has their own DNA and how they tackle situations, so today we’re having Tai and Talaat from His & Her Money to give their perspective and insights.

When they were married a little more than eight years ago, they were coming from two different places financially.

One of them had a stellar credit score, was on top of their finances, and had no debt. the other? Not so much.

These two share their story and advice on:

* how to start talking about money even if you’re complete opposites

* finding a way to manage your money and marriage with respect

* digging out of debt as a team

They are a real couple who have succeeded so I hope their interview will encourage the two of you to become closer while improving your finances.

Resources Mentioned In This Episode

If you want to learn more about His & Her Money or how to talk to your spouse about money, here are some helpful links.

* His and Her Money Podcast

* How to Talk About Money Without Starting a Fight: One of the most helpful things the two of you can do to strengthen your marriage and finances is sit down and be open with one another about money. Here are ideas that I believe can help both of you get started.

* His and Her Money on YouTube

* 21 Day Money Transformation 

* Our First Money Chat as a Couple : For those curious, I share our own experience and review what went right and what we could’ve improved on.

As always, leave your money questions in the comments below!

As awesome as peer to peer lending is, not every state has it open to borrowers or lenders. Simon Cunningham shares the current development in the industry. 

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Earlier this week, Simon Cunningham from Lending Memo had been tremendously helpful with explaining how peer to peer lending works and getting started with investing.

Talking was fascinating and just intriguing because this can be an opportunity where you are helping someone get a better deal with their finances and at the same time make some money.

More States Opening Up to Peer to Peer Lending

Being unfamiliar with the industry, I asked Simon if there were any developments or trends that he was excited about.

He told me that he was hoping more states would open up so people could both borrow from and invest in P2P with sites like Lending Club and Prosper. Currently, around 45 states were open for borrows, but just over half were available for potential investors.

That means millions are losing out on a chance to be a part of this market.

He’s hopeful that more will open in up in the near future (he explains in the podcast).  He keeps updating the progress on which states are open to peer to peer lending on his site.

More About Couples and Money Next Week

Please join us Monday when we have Tai and Talaat from His & Her Money share their story and advice on How Two Spouses With Opposing Financial Habits Can Win With Their Money.

Looking for a place to invest your extra cash and help others? Today’s show goes over the investing side of peer to peer lending with Simon Cunnigham from LendingMemo. 

Many personal finance bloggers, including myself mention how peer to peer lending can help you pay off debt faster by consolidating and getting more favorable rates on sites like Lending Club and Proper.

But what about the other side – could you make money investing with peer to peer lending?

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Subscribe to Couple Money Podcast via iTunes, Stitcher, or copy this link to use with a podcatcher of your choice. You can also find me hanging out on Twitter and Facebook.

In this episode we’ll go over:

* what peer to peer lending is

* the risks and benefits of investing in peer to peer lending

* and how to try it out to see if it is the right fit for you

And to help us Simon Cunningham from LendingMemo will explain the big picture, using his expertise and experience with LendingClub and Prosper.

What is Peer to Peer Lending?

Peer to peer lending at its core allows people to lend others. It’s like crowdfunding, where many investors contribute to give a loan out. With sites like Lending Club, you can apply for a loan or invest in one fairly easily once you pass the vetting process.

Borrowers may have a very affordable solution to help consolidate high-interest debts into something more manageable. But of course, there are two sides with these loans and with investors, peer to peer lending can be a fantastic opportunity for investors.

How to Invest in Peer to Peer Lending

While some may be apprehensive with the idea that peer to peer lending a viable way to make money, Simon points out that the business model does work.

Peer to peer lenders have improved and streamlined their process for borrowers through the years to make loans accessible, yet there is still screening that has to be completed.

Investing in peer to peer loans isn’t complicated, but it does take a plan, which includes diversifying. You don’t want all of your money concentrated into a few loans. Instead you can have notes as small as $25 spread across several loans.

If you’re curious about getting started, you should definitely read Simon’s guide to investing with peer to peer lending on Lending Memo. With $2,000, you can dip your toes into the water and see if it’s the right fit for you.

And if you’re on the fence about investing still, perhaps exploring Lending Memo can motivate you to give it a try.

Thoughts on Investing in Peer to Peer Lending

I’d love to hear from you – have you ever used peer to peer lending sites like Prosper or Lending Club? Did you borrow or invest funds? How did it go for you?

We talked a lot of about mortgages and how to prepare to take one on, but there was one big question I didn’t get into earlier this week – deciding on taking on a 15 year or a 30 year mortgage.

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Paying Less By Paying Faster

The big advantage with 15 year mortgages is that they usually have a lower interest rate, meaning over the life of the loan, you’ll be saving money. How much?

To give you an idea, I went to Bankrate and ran the numbers on one of their mortgage calculators.

For a $200k house with 20% down, a 30 year loan at 4.08% you’ll pay $147,235.00; with a 15 year loan at 3.40%, you’ll pay $55,505.00.

That’s more than $90000!

Paying Your Mortgage: 15 Years Vs 30 Years

With a difference that huge, you may feel that 15 year mortgages are always better. They certainly can be – depending on your situation.

If you’re trying to decide, here are a couple of questions you might want to discuss as a couple:

* What can you afford?

* What is the state of your emergency fund?

* What other financial goals or obligations do you have?

Don’t forget; just because you have a 30 year mortgage doesn’t mean you can’t pay it off sooner. You can treat your mortgage as if you have a 15 year loan.

You’ll pay slightly more in interest than with the 15-year interest rate, but still significantly less than with the 30-year loan. Then if an emergency comes up and they do, you have room to pause on the extra payments.

Of course – this requires a disciplined approach, so automating those extra payments may be essential for you to stick with it.

Thoughts on Choosing the Right Mortgage

I’d love to hear from you guys about how you’re handling your mortgage and why? If you are going the 30 year route, do you have any plans to pay it off sooner?

Confused by mortgage jargon such as APR, origination fee, and discount points? Wendy Dawson, a mortgage loan officer at Coastal Federal Credit Union, explains what you need to know before you buy your house.

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Understanding Mortgages

One of our neighbors on our block has put their place on the market recently so we’re keeping an eye on how things go for them. Hopefully they will get a buyer quickly and we can then proceed and competitively price our house.

In the meantime, I’m learning more about mortgages. I’m not a professional financial expert so I compiled a list of questions and sent them to Coastal Federal Credit Union.

They came through and Wendy Dawson – a mortgage loan officer – took the time to chat with me about what couples should look out for. We talked about:

* what expenses to consider besides the down payment

* mortgage jargon like origination fee, discount points, and

* where to find the right lender.

Some of these questions are based on our personal experience and some came from those in the Couple Money community. I hope you enjoy the interview as much as I did!

Learn More About Federal Coastal Credit Union

I want to say thank you again to Wendy for spending the time and giving her expertise.  I really appreciate not just her knowledge, but the enthusiasm she has for helping other navigate through this financial milestone.

If you’re in the Raleigh/Durham area and you’re looking for a better banking solution, check out Coastal Federal Credit Union.

Want to earn some extra money? Learn how Lauren earned some extra income and managed living expenses by renting out rooms!

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Subscribe to Couple Money Podcast via iTunes, Stitcher, or copy this link to use with a podcatcher of your choice. You can also find me hanging out on Twitter and Facebook!

Finding Roommates for Your House

There are several ways you can rent out space in your home. Mike Cho began searching for roommates a few years ago when he needed a way to take care of his educational expenses as a graduate student. Even though he’s had some minor issues, he says that renting rooms has been a huge benefit.

He has been able to pay off his mortgage in 3 years and he has traveled around the world. To find roommates, he’s tried Craigslist, subscription sites, and flyers.

Here are his thoughts on the process:

I know there may be some apprehension when you’re renting a spare room to a complete stranger.  It’s perfectly natural to feel that way.  I’ve had some minor issues along the way, but nothing has discouraged me so far.

I’m also not going to say that finding reliable roommates is an easy task.  It’s important to remember to find the right roommate versus any roommate.  Don’t let the thought of the financial relief from the rental income cloud your better judgment and let anyone move in.

Live In Landlord? Protect Yourself and Things in Writing

Even though she is renting out to loved ones, Lauren pointed out some of the advantages of getting things in writing. I’d like to add since you’re dealing with finances, it is in your best interest to do your homework and make sure you cover all of your bases such as background checks, tax issues, and local regulations.

Thoughts on Renting Out Rooms

If you’re curious to learn more about how Lauren is growing her income, please check out L Bee and the Money Tree.

Buying a house is a most likely the biggest purchase two of you make. Beyond the down payment and mortgage, being a homeowner usually means have other expenses to stay on top of like property taxes, basic repairs, and maintenance.  If you buy a house well within your budget these expenses are manageable.

Preparing financially for those expenses can make it the new transition from renter to homeowner go a lot smoother. If the two of you are thinking of buying a home, you need to listen to this episode.

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Lauren Bowling, from LBee and the Money Tree, is here to share her story and her tips. She goes over:

* buying a fixer upper

* funding renovations, and

* finding a reliable contractor

Subscribe to Couple Money Podcast via iTunes, Stitcher, or copy this link to use with a podcatcher of your choice. You can also find me hanging out on Twitter and Facebook.

Buying a Fixer-Upper House 

For those who have listened to the Couple Money Podcast for a bit may know, my husband and I would like to sell our current place and a buy another house this year.

We want a place that is more practical and convenient to our daily routine and commutes. Looking at the neighborhoods and our budget, it is very likely that our next place will be a fixer-upper.

Having no experience with real renovations and what to plan for, I was grateful to chat with Lauren about how she found her place and how she handled not only buying a home, but coordinating with contractors.

Millennial Homeowner

Taking advantage of a down payment assistance program, Lauren bought a property a few years back in Atlanta. It was a fixer-upper in an up and coming neighborhood.

While it was an easy decision to go with a house, the process of buying and renovating it did take some effort. Lauren spent about a year researching the area, getting to know neighborhoods, and finally checking in the house that she eventually bought.

Even so, there are some lessons she has learned buying her home.

If you want to hear more from Lauren, you should also check out her fantastic series – Awkward Money Chats. The second season just premiered this week! You can also chat with her on Twitter and Facebook.

Support for this podcast comes from Personal Capital. Easy to set up & easy to use. You can have all your investments, income, and expenses all pulled into one place. Did I mention it’s free? Give Personal Capital a try today!

Thoughts on Buying  a House

For those of you who have bought a house, what are some things you wished you’d done differently? On the flip side,

Learn how you two can figure out how much you need for your nest egg!

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Earlier this week we talked about how easy it is to open and start contributing into an IRA. Preparing for retirement is a huge goal, one that many couples stress over.

And one of the biggest questions on people’s minds is – How much do we need for retirement?

Today I’ll show you how to get that amount.

Finding Your Retirement Number

Even though everyone is different, I think we can start with a few assumptions:

* You want to be able to live on your retirement income and,

* You want it to last through retirement.

We can’t predict what your retirement will be exactly but we can get a ballpark figure that you can use for your investing plans.

We’ll be using a safe withdrawal rate. Basically this is the maximum you can take out each year without depleting your nest egg.

I’ll be using 4% as the rate. What you want to do is take your annual spending and multiply it by 25.

* If your spending is $35,000/year then you need to save $875,000

* If you two spend $70,000/year then your nest egg will need to be $1,750,000.

* And if you two spend $125,000/ year set a goal of $3,125,000.

As you can see, lower your annual expenses has a HUGE impact on your nest egg goal. One of the best ways you can help yourselves is to optimize your spending now.

This isn’t about depriving yourselves, it’s about finding the best ways to spend your money, cutting out the frivolous expenses.

Is 4% the one size fits all solution? No, but it a practical starting point for the two of you shoot for.

Opening and Contributing to Your IRA

Once you have your retirement contributions in place, you can always dig deeper and create a more personalized plan.

If you haven’t started saving and investing for your retirement, go head and do it. You can open an IRA in about 20 minutes and you can automate your contributions.

If you’re ready to begin, please check out any of these:

* Betterment

* TD Ameritrade

* Vanguard

* TradeKing

Until next time, take care!

Learn how easy it is to start investing with an IRA. This episode we go over how you can set up your account and choose the right investments for your situation.

I was on the phone last week catching up with a friend. During the conversation she had mentioned they were looking at pumping up their contributions for retirement. She had heard of IRAs, but she wasn’t too familiar with them and wanted to how to get them set up for her and her husband.

Since there are other couples having some of the same questions, I thought doing an episode on it this week would be helpful. My goal is to give the essentials so the two of you can have overall picture and plan on where to begin.

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Subscribe to Couple Money Podcast via iTunes, Stitcher, or copy this link to use with a podcatcher of your choice. You can also find me hanging out on Twitter and Facebook.

Why IRAs Are Awesome For Retirement

Individual Retirement Accounts or IRAs can be a critical piece to help you build the retirement that you want. You contribute to them and that money can investing in a variety of ways.

There are several types IRAs but for this episode we are focusing on two – traditional and Roth. The crucial one you need to be aware of is when you’re taxed.

* Traditional: If meet certain requirements, you receive deduction when you contribute into the account. When you take money out during retirement, though, it will be taxed as income.

* Roth: You don’t get any deductions for your contributions, but provided you meet requirements, the money you withdraw is tax free.

Right now if you’re under 50 your annual contributions to your IRA is $5,500. If you’re 50 and over, you can put in up to $6,500.

That means married couples can put in $11,000 – $13,000 total depending on age.

You can contribute to a traditional or Roth IRA whether or not you participate in your employer’s retirement plan.

So if you can do both, go for it.

Big Benefits with IRAs

These accounts offer you two huge benefits with taxes, give you more control with your investments, and if you’re married your spouse may be able to have an IRA even if they personally didn’t earn income.

While that money is in your account the principle along with any gains you make grow tax free. This is huge because with the power of compounding interest your investments can build much more over time.

IRAs also give you more control over your investments than what you usually get with an employer’s 401(k). With your job, you may limited to a few options and they may not necessarily be the most efficient ones. With IRAs you choose what you want to invest your money in.

Setting Up an IRA

If you want to set up an IRA is a pretty simple process. Basically you:

* Choose a provider that suits you

* Sign up and open an account

* Fund it

You can open your IRA with a brokerage, bank, or credit union.

Wherever you decide to invest your money, please make sure you are aware of any and all fees that you will be paying.

You want to keep them as low as possible because the more money that stays in your account, even small amounts, can grow into something substantial when it come...

Jacob and Vanessa shared how they are living a debt free life and what they did to get there. It’s part of their plan to be financially independent by the time they’re 30.

I know plenty of couples who would love to do the same, but don’t think they’re capable of it.

It can be done – as many early retirees will tell you – but it takes a mindset and lifestyle adjustment. You don’t need live on the bare essentials, but you do need to evaluate what is essential for you.

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Most Important Factor for Early Retirement

Speaking with those retired or well on their way to it, I’ve found that for most of the them, the key wasn’t just earning more money (which is always nice), but rather getting their spending under control and then optimized so they can fund their investments. 

We’re not talking about setting aside 5 or 10% of your income. These money masterminds are looking at 30% or more.

It sounds like a lot but you can do it.

Some people prefer to start with the big changes and wins. Jacob and Vanessa went down to one car. For us, we bought a house well within our means to keep costs manageable.

The money save is reallocated, helping us reduce debt, grow our savings, and build our investments.

You can also begin with smaller changes. Just today we were able to lower our internet bill by 15%. It didn’t take long, but I did have to set aside time to make that call.

Having a system in place to review bills occasionally allows us to fight against lifestyle inflation. You can visit Couple Money to get started and see how we did it.

But maybe you want to get information from those who have reached the finish line. One of the most popular early retirees is Pete from Mr. Money Mustache.

He’s created a community and resource for those already retired and those wanting to be financially free sooner rather than later.

That’s the power of web – you can get information you need. Podcasts like this can help you brainstorm ideas. You two can test out what works best for your family.

With that in mind, next week’s show will be about how IRAs can help you retire.