Money Rehab with Nicole Lapin - Let's Play the Money Game!

Episode Date: August 11, 2021

Here on Money Rehab, we think money is fun… so you’re invited to play a game with us, where we debunk “financial truisms,” and invest in money rules. Let’s play! Learn more about your ad-choices at https://www.iheartpodcastnetwork.comSee omnystudio.com/listener for privacy information.

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k? You don't do it? No, I never do it. You think the whole world revolves around you and your money.

Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. I know all this money talk can be overwhelming and stressful.

So for today's episode, we are going to play a game. And not just any game, a money rehab game of true or false. Let's take a second to commiserate about how difficult the financial world is. Here we are just trying to get our financial shit together, and we have to cut through so, so much noise. There are financial experts telling us conflicting things, telling us we can't buy a $5 latte or God will smite us where we stand, telling us that debt is good, but also debt is bad. Oh. It is just so much. And I get it. It can be so confusing. But here on Money Rehab, we think money is fun. So I want

to invite you to have some fun with us and play a game to debunk these financial so-called truisms and confirm these golden money rules once and for all. Round one. Let's get this bread. Golden money rules once and for all. Round one. Let's get this bread. True or false? Lease a car. It's simple and cheap.

False. Car leasing is one of the biggest scams in the finance world. Car leasing plans were invented by the car companies. Why the heck do you think they created them in the first place? For funsies? For charity? No, they did not. They did it to make money for them and not for you. And I'm not on their side. I'm on yours. True or false? You can negotiate your credit card rate. True.

I've done this a bunch of times. I've helped listeners negotiate with their own credit card companies. In fact, everything is negotiable. So ask for what you want or you'll never get it. The end. True or false? Pack want or you'll never get it. The end. True or false? Package deals always offer the best rates. False-ish. If you're moving into a new apartment and you think you'll be using cable, Wi-Fi, and a landline, sure, you'll save money on a package deal.

But are you actually using the landline or are you just paying for it because the website says it can save you big and big bright all caps bubble letters? And are you actually going to watch any of those premium channels? I wouldn't. So if you're not planning to use all of the programs in the package, no matter what it says in those all caps promotions, the a la carte menu is the way you want to go. True or false? You can use your full spending limit on your credit card. False. I know if you get approved for a $5,000 credit limit, you think the limit is, well, $5,000. But if you max out your credit card, your credit score is

going to take a major hit. So your actual spending max should be between 30 and 35 percent of what your on-paper spending limit is. True or false? You will need to make a will no matter how much money you have. True. There's a common misconception that you only need to write a will if you're a mega rich bitch living in a mega mansion. That is not true. Even if you're not a rich bitch, yet, you probably have some assets. And if you don't have a will, the state will decide what happens to those assets. And does the state know you better than you know yourself? Probably not. So get that will done. Because where there's a will, there is a way. True or false? Overdraft fees protect you. False. Do not let me catch you signing up for overdraft protection. It's basically

a quickie loan to you in exchange for an exorbitant fee. And that's going to be a no from me, dog. True or false? Debt is good to build credit. False-ish. Building up your credit history so that you can get the lowest rate on your mortgage or other loan if you absolutely have to take one. Yep, that is true. But owing someone money just for the sake of owing someone money? That can snowball into big interest sums real quick. True or false? Every couple needs a prenup. True. I know you're absolutely smitten, your head over heels. You think you will always be in love and you do not need to prepare for the worst case scenario. But part of being in money rehab is always having your own back in sickness and in health till death do you part.

True or false? Cryptocurrency is bad for the environment. True. The process of creating Bitcoin requires so much energy that Bitcoin production is now consuming more energy than many countries. Now for round two, let's head to the office. True or false? Self-promotion is obnoxious. Keep your head down and do your job and you'll be justly rewarded. False. Oh, please don't assume the world is going to see your light if you keep it under a rock. Toot your own horn when and where it makes sense and you may find yourself in a bigger, sweeter ride as a result. True or false? Side hustles don't typically make much money. True. Some side hustles won't change your life financially so long as they're

side hustles. Think of a side hustle more as a test run of something that you may want to pursue as a full-time hustle. And then when you're ready to make it your main hustle, that's when you'll turn this true into a false. True or false? DMs are unprofessional. False. Sliding into someone's DMs can be totally professional so long as you're professional about it. Sure, if you DM a potential new client, say, hey, you up? Or hey, you down? That is probably unprofessional. But I have sent and received DMs that have turned into business partnerships, employment opportunities, press opportunities, all sorts of opportunities. So don't count it out on the professional front. Instead, get your slide on. True or false? Texts and emails follow the same rules. True.

I know texting feels more informal, but if you're texting a coworker or a boss, remember your email rules. Double check for spelling and grammar and don't send a zillion texts to get one point across. True or false? I need to go to business school to start a business. False. As if!

Many of the best entrepreneurs didn't even make it out of college, much less go to business school. Yours truly did not go to business school, just the school of hard knocks. True or false? If I want to start a business, I need a business plan. True. It's important to have goals for your business, but it's even more important to detail how you're going to achieve them. While you shouldn't count yourself out as a business mogul if your path hasn't involved business school, you still need a roadmap for where you're going from here. True or false? My startup needs VC money. False. You

may need money, but taking VC money isn't the best route for most startups, especially in the early stages, despite what you might watch on Shark Tank. A venture capital fund will want a big payout for taking on big risk. If you're looking for money in the five to low six figures, an angel investor is a better option for you. The best funding you can get, though, is through your own sweat equity. I mean, think about it. If you went into business to be your own boss, taking money from a fancy VC fund means you now have a boss. True or false? If I work hard to the point that I deserve a raise, my boss will give me one. False. Incorrectamundo. Working hard is a given these days. It's business

as usual. Getting a raise might happen naturally, but most likely your employer isn't going to just open up the company's wallet for you unless you ask. And if you do, you'll usually get yours if you deserve yours. Would you give yourself a raise? Be really honest. Studies have shown that a majority of people who ask for a raise, though, get one. And of those people, about half get the money they asked for. Sure, the rest get less, but it's still better than if they never asked in the first place. Here's my favorite stat. You'll miss 100% of chances you don't take. Don't be that stat.

True or false. Friends make terrible business partners. The jury's still out on this one. Friends know you better than anyone. If you compliment each other's strengths and weaknesses and address all the serious stuff up front, you could make a dynamic duo. But could your friendship get in the way of doing what's best for the business? That's a question only you guys can answer. True or false? You should not talk about your

salary with co-workers. False! Um, hello? What's more ladylike than acting like a fucking boss bitch? For today's tip, you can take straight to the bank. If you got some of these wrong, don't sweat it. Tests in the financial world are hard to ace, but think of them like a game. And like any game, you have to practice or study to win. So for your homework this week, go look back at Money Rehab episodes and see what you should listen to, maybe again, in order to beef up on the questions you got wrong. The next time we play, you'll get a better score. Money Rehab is a production of iHeartMedia. I'm your host, Nicole Lappin. Our producers are

Morgan Lavoie and Catherine Law. Money Rehab is edited and engineered by Brandon Dickert with help from Josh Fisher. Executive producers are Mangesh Hatikader and Will Law. Money Rehab is edited and engineered by Brandon Dickert with help from Josh Fisher. Executive producers are Mangesh Hatikader and Will Pearson. Huge thanks to the OG Money Rehab supervising producer, Michelle Lanz, for her pre-production and development work. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.