2 Controversial Money Moves That Actually Make Sense | The 3-Minute Guide

Hi! I’m Erin from Broke Millennial for
The Financial Diet welcome to the 3 Minute Guide brought to you by
Skillshare. It’s easy for personal finance experts to say, “You should never
have credit card debt!” or “You should never spend more than you earn!” or any
other cliched trope of the genre. Problem is shit happens and there is lots of
shades of gray when it comes to your personal finances. Today I’m going to
overview two controversial money moves and when it might make sense for you to
employ them. Number one: Whether or not you actually have debt you’ve probably received a piece of
snail mail that says something along the lines of “0% APR for 18 months”. These
deals are commonly known as a balance transfer. Aptly named because you
move the balance from one card to another. That might sound insane to you.
Why would you move your debt to another credit card and tempt fate like that by
opening a new credit card? Well that 0% interest rate could help
put a huge dent in your repayment plan if, and this is a big if, you don’t screw
up. The average interest rate on a credit card is just shy of 17 percent according
to creditcards.com which is why it feels like it takes forever to get out
of debt but if you move the balance to a 0% rate then every penny that you’re
putting towards your debt is actually going to pay off the principal balance
which helps you get out of debt much faster. Even though the balance transfer
cards typically charge a fee of around three to four percent of the balance the
amount that you save paying off your debt at 0% makes the fee worth it. It
sounds like a miracle cure but of course it’s not. You have to be very careful to
follow the rules in order to avoid losing the 0% promotional rate. You
always need to pay your bill on time. You usually have to roll over the balance
within 60 days of doing the balance transfer and remember if you don’t pay
off the debt in full by the end of the promotional period then any remainder is
going to get charged the regular interest rate. You also shouldn’t be
using this balance transfer card to make any purchases. Just focus on paying down
the debt. Before you do any of this be sure to carefully consider why you’re in
credit card debt in the first place If opening a new credit card is going to
tempt you to spend more and create more debt then it’s really not worth the ris.k
Controversial money move number two: Personal finance experts myself included harp on the importance
of contributing to your employer match 401k. It’s free money we say! While saving
for retirement and maximizing your employer contribution
are both important there are times when it just might not make sense to take
advantage of your employer-sponsored 401k. For example, you can forego
contributing to an employer matched 401k if it’s a crappy program and you know
you probably won’t be at the company all that long. For instance, your employer
might not even start matching your contributions until you’ve been at the
company for one or two years or maybe the company has a cliff vesting schedule.
A vesting schedule is the amount of time it takes before you can leave the
company and take your employer contributions with you. A cliff vesting
schedule usually means that you can’t take any of your employer match until
you’ve worked with a company for five years. Reminder you can always take your
contributions with you. To top it all off perhaps you looked at the investment
options and the fees and realize, “Meh, I can do better investing this money
myself instead of using this program. Besides I’m probably not going to be
here for two years let alone five”. Don’t use this as an excuse to forgo planning
for your future. If you take this tactic and don’t contribute to an employer
sponsored 401k plan then consider investing for retirement by yourself
through an IRA. One move that’s never controversial is investing in yourself
and improving your resume skills. You can learn to do this and many other skills
using classes on Skillshare which provides an easy and affordable way to
expand your talents. Every week we’re featuring a different Skillshare class
we think you guys will love. This week’s class is Excel For The Real World: Gain
the Basic Skills of Microsoft Excel hosted by Excel trainer and coda
evangelist Al Chen this class will help you learn to navigate your way through
all the necessary functions of the software, understand practical
applications, and gain the confidence to use it for your information needs. As
always though Skillshare offers a huge range of high-quality classes on
must-know topics from writing to fitness to business and it’s all about what you
want to learn at an affordable annual subscription of less than ten dollars a
month and since Skillshare is sponsoring this video the first 500 people to use the
promo link in the description will get their first two months free to try it
out risk-free. Click the link in the description to check out this week’s
featured class or any of the other classes Skillshare has to offer. Have a
money question you want to learn more about? Then leave your topic idea in the
comments section below I’m Erin from Broke Millennial for The
Financial Diet and don’t forget to be here next Thursday for a new 3 Minute

41 comments on “2 Controversial Money Moves That Actually Make Sense | The 3-Minute Guide”


    Personally I feel iffy about 401 K's I'm basically trusting a complete stranger with my money but what I think would be a better choice is if I took that money invested in stocks myself as long as I do the research for it.

  2. Christina Marie says:

    yay a new video! Always love your advice, I find it so helpful 🙂

  3. Amanda Luisa says:

    Any chance you could touch on how to spend money in tour first year of business? I didn’t take out a loan (yay!) but I am still unsure how much to put towards things. I.E.: monthly expenses, business emergency fund, marketing, take home, etc. Thanks in advance!!!

  4. Nia Moore says:

    What about getting out of debt?

  5. blackrose86lh says:

    Best thing I ever did was transfer my credit card debt to a 0%APR card a couple years back. I was able to pay off a huge chunk of the debt interest free and have a much better handle on my finances. Will say lesson learned, haven't used a credit card for any new purchase since, and won't until the balance is paid and I can they use it the right way.. like I should have from the beginning.

  6. JÖYの貓 says:

    So paying between CC actually works eh…but what CC have 0%apr !?

  7. Kasey says:

    I agree.
    1. Transfer your credit card debt to another that has 0% interest for 3-6 months helps you pay it off quicker
    2. Why contribute to your Super now if the value of that contribution eg. $100/month will be worth about $1 by the time you retire!

  8. Jamie Caulder says:

    I always wondered if moving CC balances on an APR offer actually worked… Good to know!

  9. Seth Chomout says:

    Typo at :37

  10. Lauren Conrad says:

    Awesome video.

  11. Blanca's Life says:

    I just recently started to invest in my company 401k. I feel like an adult now lol

  12. SaucerJess says:


  13. Cheryl Magnuson says:

    Here's a piece of truth: If a (young) employee doesn't contribute to his 401K because of one or more of the reasons provided in the video — s/he won't save that money at all. You need to save for retirement REGARDLESS of the contribution made by the employer and the 401K is the method most likely to get you to do it — so do it!

  14. BlairWaldorf2013 says:

    I’d love a video on purchasing investment property. I am thinking of buying a 2 flat and want to understand the basics of what is important to look for when you’re buying investment property.

    How much to have saved, what credit score is best, how to calculate total mortgage with property taxes/insurance/etc. included so you know what the actual mortgage will be.

    Key things to have checked in the building before you buy it so you’re not wasting money fixing too many things.

  15. BlairWaldorf2013 says:

    Another one ☝🏽….speaking of 401ks if you had one with 1 company and left but still have it managed by a third party what should you be doing to keep track of the money.

    Should I take it out and but it somewhere else? What do I do when I get another job with a 401k how do I combine the money from my old job with my new job?

  16. paleobc65 says:

    I’m just focused on the fact that it’s only 2 moves instead of 5 or 10 wtf

  17. Apollinariya Rakina says:

    Having only debit cards is the choice.

  18. Skint Millennial says:

    Nice "controversial" money moves… Well done.
    However, I feel like they are quite risky for most of us.
    For some one who has a control of her finances may be wise movements to consider, but not sure about the average Joe. First, you risk to temptation with a new credit card and second you break a healthy habit which if developed over years can make you rich. I always believed personal finances were all about take controlled risks and creating healthy financial habits.

  19. Naturenerd1000 says:

    Are you saying you can move one debts card to another to lower the interest percentage rate? That's genius

  20. Alifa Alvita says:

    I love tfd but some of the things doesnt apply in all country 🙁

  21. Nora Csiszar says:

    Great video Erin! Investing wisely is very important, it is good that you can do it by your own or the company you work for can help you with that.

  22. Mark design says:

    Woah, potty mouth, you kiss your mother with that mouth?

  23. Chocolates Love child says:

    Thanks for the help 🙂

  24. Brandi Jones says:

    Loan payment plans/tips for recent grads would be much appreciated

  25. Phillip Stucker says:

    I used Chase slate to pay off over $3,000 amount of credit card debt with 0% balance transfer fee, and paid it off a couple months before the 0% apr fee period ran out.

    Don't do it if you can't pay it off in that time!

  26. Christian Harbin says:

    I love this channel!!!!

  27. Almost Paradise says:

    I had 10K of credit card debt and transferred to the chase slate which had no transfer fee and 0% APR for 15 months. Paid it off in 9 months and saved over $1000 in interest. Since the card has no bonuses I never use it anymore. Just sits in a drawer.

  28. Johnathan Feldhouse says:

    Issue with this skill share ad: why would I pay to have excel lessons when I can get them free in YouTube?

  29. Jeni H says:

    Can you do a guide about first time car buying and leasing a car? This might need to be a longer one, but I don't want to get swindled

  30. Kendra Sullivan says:

    can you do something about problems from "side jobs", i would love to do some "side jobs" like publish some books but im worried that just having some passive income could make me no longer qualified for my health insurance but not earning enough to pay the difference.

  31. Infinite Development says:

    A video on trading forex or crypto

  32. BenShutUp says:

    Hi TFD! I love your content! I have a question, what would be the best student loan to take out? I am about to start a new semester at college and definitely need some extra funds for this academic year but what types of loans are out there and which work best for different types of students? (Undergrad, postgrad, semester abroad, internship, etc.) Thanks so much!

  33. vonigner says:

    17% wtf

  34. Tobi Allen says:

    http://www.brokekidsofbeverlyhills.com/ Hey guys, check out my new finance and lifestyle blog! xx

  35. Rosemary Kahn says:

    Why do the presenters need to swear? Is it possible to produce these videos minus the cursing?

  36. Gabrielle Benoit says:

    I just finished paying off an $8,000 balance transfer (from Chase to Citi). The balance transfer promo was 2% fee and 0% interest for 18 months and I finished paying it off 2 months prior to the 0% promo ending. I'm so proud of myself!

  37. Yana S says:

    Koodos to everyone who got Erin's book!

  38. J .S says:

    It isn't free money since your employer won't exist by the time you retire.

  39. vlogsnacker says:

    Question: why would anyone ever need/get a credit card in the first place? I don't really understand why anyone would need to get one personally. It's weird how on this channel they're always talking about paying off your credit card and car loan debt, when it has never crossed my mind to get either of those. I'm only earning 30k a year in Australia (I actually work for a finance company myself, declining and approving loans) and I've never felt the need to go into interest-bearing debt for anything other than a house (granted, our student loans are interest free and government-supplied, and we do have a good social security safety net here). Is there something I'm missing?? I get that you can get air miles and other benefits, but those always seemed like marketing schemes by the credit card companies to get you hooked on credit. Does anyone have an answer as to why a person would ever need to get a credit card/car loan/personal loan? Or is it literally just due to impatience?

  40. Mercy Fae says:

    Not that Grey. That's hysterical.

  41. Lesbian Amazon Sister says:

    Shit absolutely does happen, people need to get off their high horses and realize that!
    Thank you!

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