It's hard to be objective about our money. Money is personal and for many of us our relationship to savings, investing, and debt has a lot to do with the kind of environments we grew up in. With so much misinformation and temptation, it's hard to know how to get the most bang for your buck. But like any of these podcasters can tell you, getting your money act in order can be one of the best decisions you ever make. These podcasts will bring you one step closer:
Covering a range of topics from job hunting to investing, Listen Money Matters is the perfect podcast for millennials. They're proud not to be "your father's boring money show."
If you're looking to finally lock down your budget and give every dollar a name you need to be listening to You Need a Budget. YNAB is all about taking your money seriously so you can build the life you want.
Laura Adams is a personal finance expert and her podcast, Money Girl, delivers easy to understand advice each week.
Emma Johnson's podcast about being a full-time single mom and career woman is nothing less than inspiring. Her advice extends behind the finance world and will have you coming back week after week.
Financial literacy isn't taught in school, and Stacking Benjamins shares the knowledge that helps listeners get smarter (and richer) each week.
Money for the Rest of Us is a must-listen for those looking to invest. Not only does it help you navigate the financial world, it also provides you with the tools to start thinking critically and find the right investment.
Dave Ramsey is a widely considered a financial freedom guru, and his practical and no-excuses podcast was made for those looking to get out of debt.
Like the title implies, this show is dedicated to analyzing what makes billionaires rich. Each week you'll learn about the decisions and choices that got them there.
A spin-off of the popular Freakonomics book, this show explores the different economic factors affecting policies, politics, and people.
This NPR staple tells stories about money we don't offer hear. It's short episodes contain everything from politics to food.With these podcasts you'll be a finance whiz in no time!
When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.
Frugal gifting often gets a bad reputation. However, this shopping method does not make you cheap — it makes you practical. Frugal gifts often avoid waste and overspending and can be just as meaningful (if not more so) as any other present.
With the National Retail Federation predicting each consumer this holiday season to spend upwards of $1,000 on holiday gifts amidst an economic recession —this year might be the perfect time to reconsider your spending budget. We've formulated the ultimate list of frugal gift-giving ideas to get you started.