Good morning, money nerds!!
First things first…
- Before logging into your social media apps this morning, log into your positive mindset 😌
- Before uploading selfies and memes, upload a healthy breakfast into your body 🍳
- Before clicking “like” on your friends posts and news, think about 2-3 things that you like about yourself! 🙏
- Before commenting online today, give a friend or colleague a positive comment in real life 🥰
OK, you get the point… Just a reminder to enjoy and put effort into your *real* life. That’s where the real memories are made.
Now let’s get onto the money stuff! 👇👇👇
TO DO
Pre-buy some gifts 🎁
We’ve all been there… A birthday pops up seemingly out of nowhere (but really you knew about it all along and had plenty of time to buy a gift but you procrastinated big time) and all of a sudden you’re paying last minute premiums for convenience and fast shipping etc.
This week: Think about the birthdays and celebrations you have coming up… Buy people’s gifts early (with free shipping and hopefully at a discount!) so you’re not caught off guard last minute. Thinking ahead saves you money. 🤔
GIVING
Being Charitable, Without Giving Money 🙌
Winston Churchill once said, “We make a living by what we get. We make a life by what we give.”
We’ve covered the many reasons why being charitable can enrich your life, but we understand that sometimes money can be tight… So here are a few ways you can still be charitable without giving away money:
Volunteer your time: Lots of local charities depend on volunteer work to keep their work going. Dedicating some of your time to one of these organizations is a great way to help make the world a better place, and an awesome opportunity to meet new people and deepen your relationship to your community.
Donate Your Old Clothes: Even if you don’t have money to give, chances are you have a few articles of clothing you haven’t touched in months. Donate whatever you don’t wear to a local organization that can distribute it to those who need it. Where to donate these clothes will vary by location, but a quick google search should pull up some options for you!
Clean Out Your Pantry: This one pulls double duty as a necessary cleaning task, and an opportunity to help others. Get rid of any shelf stable foods you don’t see yourself eating anytime soon and donate them to a local food pantry. (unless you’re on a Pantry Challenge yourself!)
Donate Your Blood: Donating blood to an organization like the Red Cross is quick, easy, and can save a life!
There are plenty of ways to be generous without opening your wallet, so don’t let a lack of funds stop you from getting creative to help your community!
More Resources:
- 👨💻 HTM Blog: How to give away money (and why it’s awesome)
- 💻 DAFS: Pros and Cons of donor advised funds
- 💸 Episode 596: How Much Should I Give to Charity? (psst 🤫 Give according to your values)
TOGETHER WITH BETTERMENT
Saving with a 401(k)? Smart. Adding an IRA? Brilliant.
On top of its tax benefits(!!!), an IRA gives you the chance to contribute to retirement beyond the annual 401(k) contribution limit, and save outside your pay cycle.
Better yet, a Betterment IRA can help you save on stress!… Because Betterment’s tech handles all the tricky stuff (like diversifying your portfolio and automated investing)
See what else you can do with a Betterment IRA and if it’s right for you. 💪
SAVING
The “Rule of 173” 📐
Ever heard of the Rule of 173? It’s a financial rule of thumb that estimates the total cost of a recurring monthly expense over a 10-year period.
Basically, you take the monthly cost of something (like, $60/m for a gym subscription) and multiply the number by 173. That’s how much it actually costs over a 10 year period, if the money was invested instead. (Eg: $60/m gym costs $10,380 total over 10 years!! 🤯).
Bottom line: Any small savings can make a HUGE difference in your ability to save and grow wealth.
Something to think about next time you’re considering a monthly subscription or membership. What is the **real** cost!?!?!
Related stuff:
- 👨💻 HTM Blog: 27 x Ways to Save a Tiny Bit of Money
- 💻 More About The Rule: Rule of 173 full blog post
- 📚 Book Rec: The Compound Effect by Darren Hardy (or here’s a 15-min YouTube summary vid if you’re pressed on time 😉)
ICYMI
Newsy news news…
Side Hustles 🧑💻
Here are 25 side gigs that are in demand right now, per FlexJobs. The pay varies depending on the gig, but it looks like most are paying $20-30 per hour! Also, here are the best credit cards for side hustles to put all your new business expenses on and earn rewards! Also, check out the best side hustles for couples, so you can earn money and still spend time with your significant other!
Boomer’s Remorse 🤦♂️
Learn from other people’s mistakes… here are the top 5 purchases that most retirees regret spending big money on. (Spoiler alert: In-ground swimming pools, timeshares, dumb life insurance policies, expensive weddings and luxury travel)
Recycle Your T’s 👕
Attn luxury clothing fans — Marine Layer’s Re-Spun program will pay you $5 for each old t-shirt you ship them (any brand, any style, up to $25) for credit towards a new purchase. If you are buying ML stuff anyway, may as well trade in some old T’s! A few other brands have a similar deal (Lululemon, American Eagle, Patagonia) but only accept their branded gear.
Financial Windfalls 💔
When couples struggle financially, they have more money fights. But what about when couples receive a large inheritances or have major money windfalls?? This WSJ Article talks about money issues that arise when couples have too much money.
EV Batteries 🔋
How long until your electric car battery needs to be replaced? A new study shows some encouraging news that replacements are pretty uncommon. Like only ~1.5% of even the oldest most massed produced EV’s needed battery replacements.
HTM Episode Sorting ↕️
Big cheers to Silas G. who created a google sheet categorizing all our podcast episodes for quick reference. This sheet isn’t quite complete (yet) but will be added to over time. FYI there’s also a “search” function on the HTM main site that let’s you find categories or specific topics you might need help in!
HOW *YOU* MONEY
Mike, 27, Nashville TN 🎸
Occupation: Programmatic Media Supervisor
Salary: $90k
Paycheck deductions: ~$3,380
Rent: -$1,415
Debt Payments: N/A
Living expenses: ~$1,820
Leftover savings each month: ~$3,250
- Retirement: $1,650 per month into Roth 401k + 4%, $300 match. $451.66 per month into Roth IRA.
- HYSA: $242 per month into SoFi Monday account at 3.75%. In here are vaults for: Emergency fund, car repairs fund, future dog fund, holiday gift fund, taxes fund (just in case), and wedding fund (I hope to keep the wedding expenses around $15k as we work as a couple to figure out what we want to do ourselves. Maybe in 30 years we say “you know what, we should have just taken the money” for assistance to pay for the wedding, but having to do what the rest of the family wants. We are intentional about doing this our way, then if family wants to help, they can reimburse us once we cover it all. This will be needed in 1-2 years.)
- Any leftover is automated investments in SoFi invest accounts, buying the overall market
Biggest “craft beer equivalent” splurge:
I buy a ton of local coffee at local shops. It’s not a $7 coffee expense, it’s a $7 light of sunshine in my day.
Best savings hack/advice:
My take-home paychecks, split into 3 accounts.
1. Bills account with Capital One. I don’t pay any attention to it. I also over-contribute by $50 to my average bill in this category. Rent, Electric, Water, Internet all automatically pull from this account, and it’s secretly growing!
2. SoFi savings & invest. I don’t think about how much I put into savings or investments. All my investments and savings automatically split up once this portion of my paycheck lands in my SoFi savings account. SoFi also gives 1% in rewards match on $50 deposits up to 3 times a week, so I split my investment deposits into $50 daily increments instead of all at once to maximize the match. Currently, that promotion is doubled, and at $3 a week * 52 weeks, that’s an extra $156 without even doing any work!
3. Spending account. This near 0% interest bank of america savings account, linked to my 3% cashback card for online purchases is my spending balance. It’s “how much money I have in the bank” to spend on food, coffee, dining out, impromptu weekend getaways, gifts, what have you.
Recent money win? And how did you celebrate?
I worked for 4 years at my first job, working up from a Junior Media Planner, to a Media Planner, then two more promotions later, was a supervisor making $47,500. I started a new job last March, 2022, exact same position, for 90k. Since I now had essentially doubled my income, I took a combination of rewards points & my new salary to book us a 10 day trip that July to Venice, Rome and the Amalfi Coast. A big step up from when I got my first job at 35k a year and celebrated by buying a 50in TCL Roku TV.
Biggest money challenge right now?
Saving for a down payment, while saving aggressively for retirement. Retirement is my #1 goal, currently getting 32% of my gross income. My 59 and a half birthday will be one for the ages.
**Editor’s note: We share these stories to inspire others and provide new ideas/perspectives on growing wealth. If you’ve got a story you think will help others, we’d love to hear it! And thank you in advance for helping our community grow richer and happier. 🙏
That’s it for now! Remember —> love and enjoy your *real life*. Have a great week! 😉
Best friends out 🍻
