Putting the "7% Rule" to the Test on a Real Mortgage. Plus, an Economist on Stubborn Food Prices

Learn whether the "7% rule" for prioritizing debt payoff over investing applies to your mortgage. Plus: why your grocery bill keeps climbing. Hosts Sean Pyles, CFP®, and Elizabeth Ayoola talk with Max, a product designer in Portland who was laid off from his tech job earlier this year, about whether the so-called "7% rule" applies to something as big as a mortgage. They dig into when refinancing a 7.2% mortgage actually makes sense, why Max shouldn't wait to pay off his home before investing, whether to grow his emergency fund from six months to nine given the volatility in tech hiring, and how much cash is too much to hold outside the market. Then, NerdWallet's Anna Helhoski talks with David Ortega, a professor of food economics and policy at Michigan State University, about why grocery prices haven't come down even as inflation cools. Ortega explains that food prices are still more than 30% higher than before the pandemic, why eggs, beef and tomatoes have moved so differently in price, and how grocery chains' growing use of dynamic, airline-style pricing could shape what shoppers pay next. Subscribe to our podcast’s free email newsletter for bonus content and more from our hosts at https://smartmoney-nerdwallet.beehiiv.com/  Want us to review your budget? Fill out this form — completely anonymously if you want — and we might feature your budget in a future segment! https://docs.google.com/forms/d/e/1FAIpQLScK53yAufsc4v5UpghhVfxtk2MoyooHzlSIRBnRxUPl3hKBig/viewform?usp=header Smart Money’s YouTube Channel: https://youtube.com/@nerdwalletsmartmoney To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email podcast@nerdwallet.com. Like what you hear? Please leave us a review and tell a friend. *The show notes were created with the assistance of AI. They have been reviewed by our editorial team for accuracy and quality. Learn more about your ad choices. Visit megaphone.fm/adchoices