Dear everyone,
It has come to our attention that despite the 500+ podcast episodes we’ve released and the weekly mind blowing newsletters we send, there are still some people out there living paycheck to paycheck and making sub-par financial decisions! 😖 Grrrr…
Sooo… because we take our jobs at HTM very seriously… we have decided to increase our efforts:
Starting today, instead of releasing 3 podcast episodes per week, we will now record 30 per week. And instead of writing 1 email newsletter every Tuesday, we will now send 10 emails to you every single morning until everyone’s financial situation improves.
What do you think? People will surely get their act together then, right?
OK, OK… we’re kidding of course.
The truth is, no matter how much information we blast out or golden nuggets we share, desire + ACTION are the necessary ingredients for financial progress.
Something to think about this week… What definitive actions are you taking this week towards your money goals? (Better yet, do you know any friends that need a “nudge”?) 💪
TO DO
Boost **your kid’s** credit score 🪪
As a parent, you want to give your kids every advantage and opportunity possible in life. One of the things you can do TODAY is help build their credit profile by adding them as an authorized user to your credit card.
Obviously you’ll want to establish strict spending rules (if you even give them access to the card at all). It also gives you the opportunity to provide teaching moments when it comes to spending, paying bills, how interest works, etc.
Many credit card providers have no age limit to add authorized users, so you can start building a healthy credit profile for kids really early in life. When they turn 18, a healthy credit history could give them a leg-up when applying for loans, housing, or even some jobs!
INVESTING
Small fees —> MASSIVE impact
Last week we touched on rolling over your old 401(k) to an IRA… And we got a couple of responses from people asking: “Why should I do this? Aren’t 401(k)s and IRAs kind of the same thing?“
While yes, the tax advantages are similar, one of the main reasons to move your money over into a free IRA account is to avoid pesky account fees (and to have access to cheaper ETFs and mutual fund options).
It’s not just retirement accounts… ANY investment account or fund that charges % fees can have a massive impact on the growth of your investments over time… 👇👇👇
“But it’s only a 1% fee…”
Well, that 1% over time costs you over $130k! (And that’s if you save $500 per month… Many people save more than that, costing them even more)
Albert Einstein said it best… “Compound interest is the eighth wonder of the world. Those who understand it, earn it… Those who don’t… pay it!”
Check them fees, people! They are a silent killer.
More info:
- 🎙 Episode 147: Fees are the worst (and how to avoid them) (50 mins)
- 🔢 Fee Calculator: True cost of % fees (1 min read)
- 📊 Chart Assumptions: The numbers in our pic above assumes an 8% annual growth rate over 30 years, with no transaction fees or trade fees added!
CAREER
Thoughts on Quiet Quitting… 🤫
OK, so I’ve been reading a lot about “quiet quitting” recently — aka “acting your wage” — and I’m starting to understand (and kind of support) what all the fuss is about.
For the most part, this whole phenomenon stems from the growing trend of workers experiencing negative daily emotions at work.
Check out this chart from the State of the Global Workplace: 2022 Report👇👇👇
With stress, worry, anger, and sadness becoming such a common thing, it’s no wonder employees are trying to re-define their relationship with work.
That said, quiet quitting can be a double-edge sword. It can be helpful or harmful depending on how it’s carried out:
Where quiet quitting can be good:
👍 Personal growth: Saying NO to unnecessary tasks and stress is a healthy way to set boundaries and respect your own time more.
👍 Letting things fail forward: Allowing balls to drop at work (ones you’re not responsible for) can help expose leaks in the organization that management aren’t aware of.
👍 Finding balance: Since work/life balance this is the #2 reason for workplace stress, it’s important to prioritize your personal life and explore the most sustainable balance for you.
👍 Boosting productivity: Spending less time on a mundane, low ROI tasks —> means MORE time spent on intuitive creativity and things you are enthusiastic about!
When quiet quitting could be ineffective:
👎 If your motives are impure. If you’re quiet quitting for revenge, to hurt others, or just laziness… usually these actions have a way of backfiring.
👎 Being not-so-quiet about it. Boasting about quiet quitting or rubbing it in peoples faces ain’t cool. It could be taken the wrong way and give a negative impression.
👎 Taking it too far. It’s OK to drop *unnecessary* work and stress… but remember your core duties still need to be performed (and well).
👎 If you truly hate your job or company. Quiet quitting might be just a Band-Aid solution, because the real way to solve this is rolling up your sleeves and actually finding a new, better fitting job.
All in all, we are in support of anything that builds a long term, win/win relationship with your employer. And if quiet quitting is your strategy to achieve that, cheers and good on you.
Good reads & resources:
- 📝 Interesting Stats: JobSage Mental Health Survey (5 min read)
- 💻 Great Blog Post: The Case for Quiet Quitting (6 min read)
- 🎙 Podcast Episode 403: Ditching work you hate and landing a job you love (1hr listen)
ICYMI
Other stuff that’s happening…
(ps. sorry about last week’s links not working… All links below are correct this time!! — and here’s the correct 12ft Ladder tool we mentioned last week)
Modern Ponzi 😈
A Florida woman got caught running a $196M Ponzi scheme the last few years (raising money from investors –> promising them massive returns –> then paying them back by raising even more money from new investors). Please please please don’t fall for fake investments like this… If it’s too good to be true, it probably is!
Travel Hacks ✈️
Check out this awesome chart of airline service commitments published by the US Department of Transportation last week. Could help you negotiate some perks or credits if your travel is delayed, changed or cancelled!
Active Insurance 🏃
Also known as “shared-value insurance” is a growing health tech trend where insurance companies track your exercise workouts, healthy habits, etc. and give you discounted premiums for staying healthy. This isn’t mainstream just yet, but we like where it’s going because saving money + getting healthy = 🏆💪🥳!
401k Statements 🧾
Your next quarterly 401k statement might look a little strange (does anyone even look at these anyway?)… Statements will now include a “lifetime income illustration“, showing how much your 401k balance translates to as monthly income. Just keep in mind these figures are only as good as the projection models/assumptions they are built with.
Crash Predictions 📈
Apparently Morgan Stanley are now expecting the S&P 500 to crash another 15%+ over the next few months. But… who cares!? Remember: a) most analysts are wrong. b) crashes are awesome buying opportunities. c) you are investing for the loooong haul so it doesn’t matter what happens over the next 3-4 months… instead, think about the next 3-4 decades!
Astrology 🐒
Just for funsies… here are the best cities to retire in based on your Zodiac Sign. “Pack your bags, kids, we’re moving to Tokyo!”
COMMUNITY
Hello from FinCon, Orlando 👋
Last week we attended the FinCon expo, mingling with old and new friends in the personal finance community.
Learned lots of cool stuff (and drank lots of great local beers), we’ll share more deets with y’all soon.
Wishing you a prosperous week ahead! 🤑💰💵
Best friends out 🍻
*****
* Advertiser Disclosure: How to Money has partnered with CardRatings for our coverage of credit card products. How to Money and CardRatings may receive a commission from card issuers.
* User Generated Content Disclosure: Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
