Oh My Dollar!

If you haven’t been following - and who can blame you - the law is an absolute mess -  the Affordable Care Act, the law that provides health care coverage and protections for millions of Americans, was invalidated by a judge in Texas late last year. But this month, the Justice Department said they now have the position that the entire law should be scrapped. This is a big deal. This could affect, at a minimum, 21 million Americans.

So what does this mean for you, if you're an American?

This could mean the end of:Coverage for preventive servicesProvisions that eliminate denying coverage to people with pre-existing conditionsThe federal subsidies that help cover the cost of insurance for those that can’t afford it but fall above the poverty line (“marketplace subsidies”)Medicaid (low-income health care) expansion that covers 12 million Americans below 150% of the poverty lineHealth care coverage for children whose families are above the federal poverty line but still cannot afford or find coverage through the Children’s Health Insurance ProgramAccess to opioid addiction treatment for low-income AmericansAbility to cover your adult child up til the age of 26 on your health insuranceAnd so much more! 

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We love hearing from you! Email us your questions or successes at [email protected] or tweet us at  @anomalily or @ohmydollar or join at our forum - at forum.ohmydollar.com

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com. This episode was underwritten by patron Tamsen G Association and Warrior Queen. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

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This is rebroadcast of an episode from our archives. Back to new episodes next week!  The episode originally aired on February 13, 2017.

Lillian answers all the questions you’ve been too scared to ask about investing for retirement. This guide is especially meant to help if you if want to get started investing in your 20's or 30's, but is applicable to anyone looking to get started who is a US resident.

In this episode we cover 401ks & IRAs, explains how you choose what to invest, and what you should avoid.

We answer these questions:

- What is an IRA and why do I feel like everyone tells me I should have one?

- Should I get a match on my 401K at work?

- What if I don't really want to invest in bad corporations but don't want to eat cat food for the rest of my life?

- How late is too late to get started?

- Do I need to save up before I start investing?

Within 30 minutes, you’ll be ready to click the “buy” button on your portfolio.

Brokers for setting up your first IRA (no endorsement or affiliate links)

 -Vanguard.com (low-expenses IRAs)

- Fidelity.com

- Betterment

- TD Ameritrade

Links Mentioned in the ShowThe Stock Series by J L Collins (a more in-depth, but entertaining, series of blog posts covering index investing theory)

Ask us a question!

We love hearing from you! Email us your questions or successes at [email protected] or tweet us at  @anomalily or @ohmydollar

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com. This episode was underwritten by patron Tamsen G Association and Warrior Queen. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

Full Transcript & In-depth show notes provided by our Patrons at ohmydollar.com

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Alright, so you got a tax refund. Or some other fun chunk of money. How should you use it? Save, splurge, or...? Maybe cash it into twenty dollar bills and fill your bathtub with it and flop around like the rich magical being you are?

Here's our ideas, ranging from creative to not:

Pay off debtSave your one-month buffer or emergency fundStock up and freeze fancy cheese so you're never out of fancy cheeseFill in your sinking funds or known unknown categoriesSave for retirementBuild out your stupid mistakes categoryPay next year or next quarter's taxes earlyBudget for something fun - like a trip or a splurgeCreate an impulse buy category (I made a Scott's Cheap Flights splurge category)

Links and Episodes mentioned

Scott's Cheap Flights - the most dangerous newsletterThe Government Will Pay You to Save For RetirementPreparing for Known UnknownsWhat Money Goals Should You Focus on? Complete Guide to Quarterly Taxes

Please come join us

We finally have a forum! Join us at forum.ohmydollar.com is a great non-judgemental place to ask questions or participate in our daily check-ins and challenges. It's really quite fun. 

This show is made paw-sible by listeners like you through our Purr-sonal Finance Society over on patreon   - visit ohmydollar.com to read this week's transcript!

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There's so many options out there for small business retirement plans for employers! How do you choose one you can afford and that won't cause headaches to administer?

Marcel wrote in: I’m a small business owner, who has recently expanded to have 8 employees. We’re doing well as a business, and I’d like to encourage my employees to save for retirement. What are my options?

Almost all these plans will require you to make any eligible employee able to use it, which means you can't set up one just for yourself as the business owner without also providing something to your eligible employees. You have the ability to set eligibility standards, but all accounts have a minimum requirement for employee eligibility (such as if they've worked there for 1000 hours a year, for at least a year, they have to have access to the account.) This is important to bare in mind if you are making employer contributions but have part-time or seasonal employees.

Your options as an employer

- Simple IRA: A relatively simple to administer retirement account that requires employer contributions of at least 2%  of the employee's salary, even if the employees don't contribute anything. There are no IRS filing requirements for the employer but you can only offer this plan. The annual contribution limit is $13,000 for employees under 50.

- SEP: A SEP (Simplified Employee Pension) IRA  A traditional IRA for self-employed people or small business owners. It has more recordkeeping requirements A small business owner with one employee or more, or anyone with a freelance income can open a SEP IRA. These are advantageous for owners because the contribution limits are high, but no employees can contribute to this plan for themselves - it's just employer contributions.  Individual employees who are eligible to participate in their employer's SEP plan must open individual Traditional IRAs to which their employers will deposit SEP contributions.

-401k/403B This is the "traditional" retirement plan, and it has the headaches meant for a large employer to administer it as far as recordkeeping requirements. It has the highest limits for non-owner employees, $18.500 per year for employees under 50.

-Allowing employees to contribute to a Roth or Traditional IRA through automatic deduction  This has no cost to you, just a little more work during payroll. Unless the Traditional IRA is set up as a SEP, you cannot contribute as an employer to these plans.

Ask us a question!

We love hearing from you! Email us your questions or successes at [email protected] or tweet us at  @anomalily or @ohmydollar

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com. This episode was underwritten by patron Tamsen G Association and Warrior Queen. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

Full Transcript & In-depth show notes provided by our Patrons at ohmydollar.com

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Lillian travels to 2-13 countries a year, and mostly flies and stays in hotels for free or cheap - through credit card travel hacking. She walks you through how to do it as a hobby- and why you might not want to. There are no referral links in this post, because I don't want you to think I'm doing this for the points. I do a lot of things for the points, but getting my audience into my weird hobby is not one of those things!

Steps to adventuring on travel hacking through credit cards as a hobbyIf you are in credit card debt, stop and do not pass go. Focus on paying off your credit card debt, as this is a hobby that will cost you money, not earn you perks, if you can't pay off your balance every month.Make sure you have a credit score above ~720 or so. You can find out by getting your free score from Discover (without a discover card) or getting your "FAKO" score from creditkarma.com.If you have a new credit file or score below 720, the best starter cards are usually the Chase Freedom and the Discover It. If you use them responsibly for about 8 months to a year you will build up a credit file. If you are a student there's also a Discover It Student and Capital One student card if you’re a student.Know how much you spend in a month on credit card spendable expenses. You need to hit this for minimum spend. This could be high if you get reimbursed for work expenses or could be low. Generally you need about $1,000 of expenses a month for most cards at a minimum, but there's a few ways around it but you may have to pay a small fee.Set up accounts with all the majors airline rewards perks - even if you don't think you'll use them. For keeping track of your different accounts, use a password management software (I use 1password). Even if you never are going to stay at a Hilton, for example, you still want an HHonors account. [visit the full post on Ohmydollar.com for more since I can't fit it all in here]Links mentionedMy Full Budget from my 13-country trip, including the travel hackingCurrent credit card offers google spreadsheetReddit.com/r/churning/ - The best place to ask newbie questions, it's less scary than other parts of reddit, I swear!For more advanced folks, https://www.flyertalk.com/ has a forum that's a great place to go but it's not very newbie friendly

Please come join us

We finally have a forum! Join us at forum.ohmydollar.com is a great non-judgemental place to ask questions or participate in our daily check-ins and challenges. It's really quite fun.  This show is made paw-sible by listeners like you  - visit ohmydollar.com to read the latest transcript!

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Clothing - it can be a luxury item but it's also a necessity, if you live in polite society. How much should you spend on clothing in a year? How do you balance your budget with your values if you don't want to buy fast fashion items? Do you need to buy high-end sustainable fashion?  Do you have to thrift everything? How do you calculate cost-per-wear? How long are socks really supposed to last? Lillian (4'11") and Will (6'5") talk about the differences in budgeting for clothing based on your height, your job, and your climate, and include some quotes from listeners about their own clothing budgets.  The "rule of thumb" is 5% of your take home pay - but how does that map out? Is that realistic?

Links mentioned

Lillian's spreadsheet of her entire wardrobe + fun graphs on Racked.comA 1940's wardrobe plan + budget from glamourdazeA 1946 wardrobe budget plan from Seventeen MagazineStylebook App, which calculates cost-per-wear for your closetCollette Pattern's Wardrobe Architect blog post seriesThis is just a very cute youtube video by two of my fav youtubers where they kon-mari'd their extensive wardrobe - hey it's my podcast, I can include cute links if I wantHow to Organize a Clothing SwapThe Luxe StrategistPlease come join us

We finally have a forum! Join us at forum.ohmydollar.com is a great non-judgemental place to ask questions or participate in our daily check-ins and challenges. We've only been open for three weeks but we're going strong with lots of fun discussions. Please join!

Ask us a question!

We love hearing from you! Email us your clothing budgets or other financial thoughts at [email protected] or tweet us at  @anomalily or @ohmydollar

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com. This episode was underwritten by patron Tamsen G Association and Chris Giddings. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

Other Episodes You Might Find interestingCurbing Impulse Purchases + Regrettable Spending Debt-Free and Queer ft David Auten and John Schnieder Money When Depressed What if your life decisions were made by the stock market? ft. KmikeyM

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Balancing your checkbook-  is that an adulting skill you should have? What exactly is a checkbook? Do you still need to do this? What is the digital equivalent? We answer your hot questions about checkbook balancing, how to do it, and whether or not it matters. Lillian goes also on a bit of a rant about how antiquated the US financial system is.

In our mailbag are two listener questions: Tomas shares his debt payoff victories, and Don tells us how his wife negotiated to be moved to a W-2 employee from a 1099 contractor as a nanny. Don asks how a nanny can get a retirement account and a transit benefit.

Thank you to our two listeners, Tomas and Don, who wrote in to share their stories!

Links mentioned:

An old school guide to balancing your checkbook (PDF link)YNAB or You Need a Budget, Lillian's fav personal finance budgeting (+ reconciling) toolBitches Get Riches "How do you write and cash checks? Asking for a friend"The IRS guide for Caregiver + Nanny BenefitsPlease come join us

We finally have a forum! Join us at forum.ohmydollar.com is a great non-judgemental place to ask questions or participate in our daily check-ins and challenges. We've only been open for two weeks but we're going strong with lots of fun discussions. Please join!

Ask us a question!

We love hearing from you! Email us your financial worries or receipt victories at [email protected] or tweet us at @anomalily or @ohmydollar

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com. This episode was underwritten by patron Tamsen G Association and Stephanie Powers. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

We have full clickable transcripts available online for each episode at  ohmydollar.com . provided by our amazing Patreon backers.

An Easy Way to Help

Our iTunes review drive is going on right now! It takes less than 10 seconds to click a star, it’s totally free, can you help us out? Click here to leave a review: https://itunes.apple.com/us/podcast/oh-my-dollar/id1189980636?mt=2

Other Episodes You Might Find interesting

Sticking to your budget despite peer pressure + the secret to saving moneyNew Year's Resolution: Pay Less TaxWhat kind of employee are you? 1099 or W2?

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Are you tired of eating and drinking your money away? Lillian and Will (plus some helpful listeners) share their tips for spending less at restaurants and bars.

Some strategies include:

Involve your friends or co-workers in a "no eating out" challenge Start a lunch packing clubIdentify your big "triggers" for eating out and plan around themFind fun things to do that aren't bars or restaurants - invite friends over!Have your "I'm depressed/busy/unmotivated" meals ready in the fridge so postmates isn't a temptationDon't get beverages along with your mealAvoid getting a large latte or adding other things to your coffee drinks (from Will, our resident barista)

Links mentioned:

Lillian's monthly expenses reports and 2019 budgetPlease come join us

We finally have a forum! Join us at forum.ohmydollar.com  is a great non-judgemental place to ask questions about taxes or what's "normal" in a budget category, have open conversations about money, or document. We've only been open for a week but we're going strong with 100 members. Please join!

Ask us a question!

We love hearing from you! Email us your financial worries or receipt victories at [email protected] or tweet us at @anomalily or @ohmydollar

An Easy Way to Help

Our iTunes review drive is going on right now! It takes less than 10 seconds to click a star, it’s totally free, can you help us out? Click here to leave a review: https://itunes.apple.com/us/podcast/oh-my-dollar/id1189980636?mt=2

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com. This episode was underwritten by patron Tamsen G Association and Chris Giddings. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

Other Episodes You Might Find interesting

Sticking to your budget despite peer pressure + the secret to saving moneyHow to Make Financial Decisions without OveranalyzingCredit Hacks + Lillian’s Booze Spending ReportWe have full clickable transcripts available online for each episode at ohmydollar.comprovided by our amazing Patreon backers.

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Something we always say on this show is that money is highly personal. Well, one thing I’ve learned is there’s no specific “accomplishment” moment for when you are in control of your money. For some people it’s being able to buy whatever kind of cheese they want at the grocery store, for others it's the feeling of not worrying about the next paycheck.

Today is the first episode of our new regular listener stories series, with The Billfold editor Nicole Dieker, where we feature listener's creative reflections on different financial topics.

Our Next Topic

The next prompt for our listener stories series is "Ramen" - do what that with you will. If you have stories to submit, send them in to [email protected] or tweet them 240-characters at a time to @ohmydollar.

About The Billfold

The Billfold is one of our favorite personal finance websites creating an honest conversation about money, with one of the most active commenter communities on the internet.

About Nicole Dieker

Nicole is the editor of The Billfold, and has also written for The Write Life, Lifehacker, Bankrate, and numerous other sites. She teaches writing, freelancing, and publishing classes (including online classes), and work one-on-one with authors as a developmental editor and copyeditor.

Ask us a question!

We love hearing from you! Email us your financial worries or receipt victories at [email protected] or tweet us at @anomalily or @ohmydollar

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.comThis episode was underwritten by patron Tamsen G Association and Warrior Queen. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

Stories Featured

- The First (and Second, and Third) Time I Felt in Control of My Money on The Billfold

- How Two Budgeting Choices Gave Me Control Over My Money on The Billfold

Other Episodes You Might Find interesting

- Meal Planning (the secret weapon) ft. Nicole Dieker

- What if your life decisions were made by the stock market? ft. KmikeyM

- Creativity vs. Financial Security

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Do you have a profitable side hustle? Are you entirely self-employed? Do you send invoices to get paid rather than than get a paycheck with tax deductions taken out?  It’s entirely possible you should be paying quarterly estimated taxes then.

Paying quarterly estimated taxes can be annoyingly scary - not only are you like “WHY ARE YOU TAKING MY MONEY, GOVERNMENT?” you are responsible for keeping track of how much you get paid. The government website isn’t super fun.  The IRS likes to believe they make it easy, but really they don’t. So today we break down how it works.

Where to Go!

- This not-so-handy form called IRS Form 1040-ES which will help you estimate your marginal tax rate

- You can pay your taxes and automatically on the IRS’s website using “direct pay” or you can set up an account on the Electronic Federal Tax Payment System 

Deadlines for Quarterly TaxesFor income received Jan. 1 through March 31, estimated tax is due April 15.For income received April 1 through May 31, estimated tax is due June 15.For income received June 1 through Aug. 31, estimated tax is due Sept. 15.And for income received Sept. 1 through Dec. 31, estimated tax is due Jan. 15.

Ask us a question!

We love hearing from you! Email us your financial worries or receipt victories at [email protected] or tweet us at @anomalily or @ohmydollar

An Easy Way to Help

Our iTunes review drive is going on right now! It takes less than 10 seconds to click a star, it’s totally free, can you help us out? Click here to leave a review: https://itunes.apple.com/us/podcast/oh-my-dollar/id1189980636?mt=2

This show is made paw-sible by listeners like you

We absolutely love our Purrsonal Finance Society Members, the folks that generously support Oh My Dollar with $1 or more a month on Patreon – and have made is so we have free, full transcripts for every show on ohmydollar.com This episode was underwritten by patron Tamsen G Association and Warrior Queen. To learn more about being part of the Purrsonal Finance Society and get cool perks like exclusive livestreams and cat stickers, you can visit ohmydollar.com/support

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