Is homeownership still the "American Dream," or is it becoming a financial burden? With 81% of renters aspiring to own but 61% fearing they never will, the gap between renting and owning has never felt wider. However, the truth is that both paths can lead to significant wealth if you play your cards right.

In this episode of Money Girl, Laura breaks down the persistent rent-versus-own debate. While homeowners benefit from equity and appreciation, savvy renters can leverage flexibility and lower upfront costs to out-invest their home-owning peers. Whether you’re tired of "throwing money away" on rent or feeling "house rich and cash poor," this guide provides the clarity you need to make the best move for your bank account.

In this episode, you’ll discover:

• 4 ways renting can actually make you wealthier (including the "investment gap" advantage).
• The hidden costs of homeownership that go far beyond your monthly mortgage payment.
• The tax breaks and appreciation benefits that make real estate a powerful long-term play.
• How to hedge against inflation with fixed-rate housing costs.
• The "5-Year Rule" and other lifestyle factors that should dictate your decision.

Note: This episode originally aired in January 2025.

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

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With U.S. consumer debt hitting a record $18.8 trillion, it’s time to see how your balances measure up. In this episode, Laura breaks down average debt by age group and type—from Gen Z’s $35k average to Gen X’s $158k peak—to help you determine if your debt is "healthy" or a hurdle to retirement.

Key Takeaways:

• The Big 4: Current averages for mortgages, auto loans, student loans, and credit cards.
• Debt Rules of Thumb: Learn the 30/30/3 rule for housing and the 20/4/10 rule for car buying.
• Know Your Ratios: How to calculate your Debt-to-Income (DTI) ratio like a lender.
• Payoff Strategies: Why high-interest debt is "bad" and how to use consolidation or balance transfers to escape it.

Whether you're looking to buy a home or just sleep better at night, learn how to stop being "average" and start building wealth.

Find a transcript on your podcast player. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

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1005. Is your company "returning" your retirement savings? In this episode, Laura answers a listener question from Jay P., who is frustrated that his contributions keep getting bounced back as taxable income.

If you’re a high earner or a diligent saver, nothing is more frustrating than seeing your hard-earned 401(k) contributions returned to your checking account. But why does the IRS penalize you just because your coworkers aren’t saving enough?

In this episode, Laura breaks down the "Highly Compensated Employee" (HCE) rules and explains exactly why your retirement plan might be failing its annual nondiscrimination tests. More importantly, she shares the specific steps you can take to keep your momentum going even when your workplace plan hits a ceiling.

Laura goes over:

• The HCE Threshold: The specific 2026 income and ownership limits that trigger these IRS rules.
• The "Safe Harbor" Solution: How to pitch a plan upgrade to your HR department that eliminates testing forever.
• Tax Fallout: How to handle the tax liability of returned pre-tax vs. Roth contributions.
• Pivot Strategies: Three powerful "Plan B" accounts—including HSAs and Roth IRAs—to house your returned cash so it stays invested for the long haul.

Find a transcript here. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

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1004. This week, Laura explains how to identify and fix overcontributions to your 401(k), IRA, and HSA. You’ll learn the specific deadlines for 2026 to remove excess funds penalty-free and how to handle the tricky tax paperwork that follows.

• The Cost of Mistakes: Why IRAs and HSAs carry a 6% annual penalty for excess funds, and how 401(k) errors can lead to double taxation.
• 2026 Contribution Limits: The max limits for workplace plans ($24,500), IRAs ($7,500), and HSAs ($4,400–$8,750), including catch-up rules for those over 50 and 60.
• Common Pitfalls: How switching jobs, receiving year-end bonuses, or earning too much for a Roth IRA can trigger an accidental overcontribution.
• The Correction Timeline: Why April 15 is a hard deadline for workplace plans, while IRAs and HSAs offer flexibility until October 15 with an extension.
• New 2026 Rules: What high earners (making over $150k) need to know about the new mandatory Roth catch-up contributions.

Step-by-Step Fixes: How to work with your account custodian to calculate earnings (or losses) and file the correct tax forms (1099-R, 1099-SA).

Hosted on Acast. See acast.com/privacy for more information.

1003. Is one missed payment going to haunt your mortgage application forever?

On this Finance Friday, host Laura answers a listener's question about a recent late payment and the fear that it might ruin their chances of buying a home. If you’ve ever seen your credit score plummet due to a mistake, this episode is for you.

Laura breaks down the "lifespan" of credit damage and reviews seven specific negative items that can appear on your reports, including:

• Late Payments: The most common mistake and the "7-year rule."
• Charge-Offs vs. Collections: What happens when a creditor gives up on you.
• Medical Debt: Why the rules for medical bills are different (and better!) for consumers.
• Bankruptcies: The difference between Chapter 7 and Chapter 13 reporting.
• Foreclosures & Settlements: How long they linger and how their impact fades over time.

You’ll also learn why your credit score isn’t a "permanent record" and how the diminishing effect of old mistakes allows your score to rebound faster than you think.

Find a transcript here. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

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1002. Taxes don’t have to be a source of shame or a "black box" of confusion. Whether you’re a lifelong artist, a side-hustler, or a traditional employee, understanding the tax code is the ultimate power move for your bank account.

In this episode, Laura sits down with Hannah Cole, an Enrolled Agent, working artist, and founder of Sunlight Tax. Hannah specializes in bringing "tax literacy to the humans"—specifically those who feel like the "black sheep" of the business world. They dive into the mindset shifts needed to conquer financial fear and the tangible steps you can take to legally pay less to the IRS.

• The Mindset Shift: Why money is "neutral" and how to stop letting "starving artist" stereotypes gatekeep your wealth.
• The Cost of Confusion: Why a lack of tax literacy costs the average American over $1,000 a year (and much more for entrepreneurs).
• Self-Employment 101: A breakdown of the 15.3% self-employment tax and why your "boss hat" and "employee hat" both owe a cut.
• "One Big Beautiful Bill" Updates: How new laws affecting overtime, tips, and the SALT deduction (increased to $40,000) change your 2025/2026 filings.
• The "Trump Account": What new parents need to know about the $1,000 government contribution for babies born in 2025 and beyond.
• Deduction Goldmines: From startup expenses you can claim retroactively to the VIN Decoder tool for car loan interest deductions.
• Tax Calm: Practical "Atomic Habits" to make bookkeeping feel like a peaceful ritual rather than a chore.

Find Hannah at SunlightTax.com.

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1001. On this Finance Friday, I’m clearing up the massive confusion surrounding "gift taxes." Many people are terrified to help their loved ones because they fear a surprise tax bill, but the reality is that the thresholds are much higher than you think.

Whether you're helping with a down payment, paying for a grandchild’s tuition, or simply sharing your wealth while you're around to see them enjoy it, there are a few "golden rules" you need to know to stay on the right side of the IRS.

In this episode, we discuss:

• The 2026 Limits: Why you can likely give away millions without ever owing a penny in gift tax.
• The Annual vs. Lifetime Exclusion: How to use the $19,000 annual limit to your advantage.
• The "Direct Payment" Loophole: How to pay for medical or tuition bills without it counting as a gift.
• The Inheritance Trap: Why gifting a house or stocks now might actually cost your children more in taxes later than waiting for a "step-up in basis."
• IRS Form 709: When you actually need to file it (and why it’s not as scary as it sounds).

Find a transcript here. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

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1000. We made it to 1,000! To celebrate this massive milestone, Laura Adams is sticking with the "1,000" theme to help you make the most of your next windfall. Whether it’s a tax refund or a work bonus, discover seven high-impact ways to manage an extra $1,000—from building a bulletproof emergency fund to the power of a Roth IRA. Plus, stay tuned for special guest appearances and tips from long-time listeners and financial experts who have been part of the “Money Girl” journey!

Find a transcript here. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

Find Money Girl on Facebook and Twitter, or subscribe to the newsletter for more personal finance tips.

Money Girl is a part of Quick and Dirty Tips.

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999.  Laura reviews what you should know about using a high-yield savings account (HYSA) and six tips for choosing the best one.

Find a transcript here. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

Find Money Girl on Facebook and Twitter, or subscribe to the newsletter for more personal finance tips.

Money Girl is a part of Quick and Dirty Tips.

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998. How much do you really need to retire? Should you always buy term life insurance? In episode 998, Money Girl Laura Adams audits 8 popular financial rules of thumb to see if they hold up in today’s economy.

What you’ll learn:

• The Rule of 72: How to calculate when your money will double.
• The DIME Method: A smarter way to calculate life insurance than "10x your income."
• Emergency Fund Math: Why 3 months might not be enough for you.
• Investing Allocations: Why "100 minus your age" is likely too conservative for 2026.
• Retirement Readiness: Understanding the "Multiplier of 25" and the 4% withdrawal rule.

Don't follow a rule just because it's famous—follow it because it works for your life.

Find a transcript here. 

Have a money question? Send an email to [email protected] or leave a voicemail at (302) 364-0308.

Find Money Girl on Facebook and Twitter, or subscribe to the newsletter for more personal finance tips.

Money Girl is a part of Quick and Dirty Tips.

Links:

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Hosted on Acast. See acast.com/privacy for more information.