Matching Majors, Flex Budgets, & Defending Your Dollars 🥷

Good morning, lovely souls!

If you don’t create a routine, you will be assigned one.

If you don’t create a purpose, you will be assigned one.

If you don’t create a career, you will be assigned one.

– Dan Koe

*****

This is your Tuesday morning reminder to create the life you want to live. You don’t want to be living someone else’s!

You do you!

OK, onto the money stuff… 👇👇👇

TO DO

Google Yourself 🔍

Try this: Search for [your name] and the word “address”… Does any personal or harmful info show up in page 1 or 2 of the search results? Your personal and sensitive information might be on display for the entire world to see

The good news… Google has an easy process to remove doxxing information from search results (any site that displays stuff like your home address, phone numbers, email, ID info, etc). It takes about 2 minutes to fill out the request form, just include links/screenshots of the offending search results and they usually take them down the same day. Give it a try!

SECURITY

Keeping Your Money Secure 📲

It seems like there’s a new article in my feed every day talking about innocent people getting scammed out of their money…

Like this California couple that lost $160,000 by wiring their house downpayment to scammers instead of to the escrow agent.

Or this financial advice columnist who put $50k worth of cash into a shoebox and handed it to a complete stranger!?!?

Anyway, maybe it’s time for a quick refresher on internet security and protecting your money from fraudsters!…

• Stronger Passwords: If you’re still using “Welcome1!” as a password, chances are your identity is already living a life of luxury in the Bahamas thanks to some not-so-friendly hacker. Change that password ASAP! Get a password manager like Bitwarden or LastPass!
• 2-Factor Authentication: Enable it wherever it’s offered. Keep apps on your phone locked with your fingerprint, facial recognition, and hard to decipher passcodes.
• Freeze Your Credit: It’s free and easy. Need I say more? It also stops people from opening up credit in your name. You do it by contacting all 3 credit bureaus here: Experian, Equifax and TransUnion
• Buy a Shredder: All your bank statements, utility bills, financial junk mail, etc should be shredded before it gets recycled. Not to make you paranoid, but sketchy people might search your through your garbage.
• Public WiFi 🙅‍♂️: Not all WiFi is created equal. Don’t log into banking apps or conduct sensitive business across public networks. Wait until you’re on a private connection.
• Use Credit Cards: They come with fraud protection, but debit cards don’t. And there’s less of a chance you’ll recover those funds if someone skims your debit card info and goes on a shopping spree. With a credit card you’ve got explicit protection via federal law.

Above all, scrutinize any incoming phone call, text message or email. If your grandma calls you out of the blue to confirm your birthday, hang up immediately! (ok, maybe you can trust Granny, but for anyone you don’t know, be extra suspicious.)

Stay safe out there! And help your elders do the same.

Related stuff:

• 👩‍💻 Full Post: 13 Tips to Keep your Financial Info Secure
• ⛔️ Scams: Common Financial Scams to Watch Out For
• 📩 Help: Here’s what to do if you were scammed.

TOGETHER WITH YNAB*

Rule #3: Roll With the Punches

th YNAB, if you run out of money in one budget category, but still need (or want!) to make a purchase, simply just move money from another category to cover it.

Budgeting is supposed to be flexible! — After all, it’s your money. Spend it how you want. Life is constantly changing and you need a system that allows for flexibility while also keeping you on track to hit your money goals.

If you need a better budgeting system, check out YNAB. At least try the 34 day free trial — it may just change your financial life. 💪

CAREER

College Grads & Underemployment

Today’s chart hails from a recent Talent Disrupted Report — it’s an extremely detailed study of where (and how) college grads end up career-wise post graduation.

Surprising stat alert! After graduating college, just over half of graduates (52%) move into jobs that either don’t require a college degree or college level skills… And even after 5 or 10 in the work force, roughly 45% of those folks remain “underemployed” 👇👇👇

Here are some of the main takeaways from the report:

• Picking the right major: A student’s chosen area of study heavily impacts whether they stay within that field or not. People who majored in Public Safety or Recreation & Wellness have the lowest likelihood of making use of their degrees (vs. Engineering and Health related fields which have the highest).
• Your first job matters: Right out of college, it’s tempting to jump into any work opportunity you get, even if it’s not related specifically to your field. But, the longer you work in jobs in which you are underemployed, the harder it is to make a career jump down the line. (So for those of you just graduating, it might make sense to hold out for that perfect fit, or accept a lower paying job to begin with, knowing it’s on a better long term growth path).
• Internships are really powerful: Securing an internship while you’re still in school drastically increases the chances of getting a college-level job upon graduation. This then compounds into higher paying career paths and making the most of a degree throughout one’s career.

On the flip side, underemployment isn’t that horrible. There are many legitimate reasons why people don’t choose jobs in their field of study… Losing interest, switching to more passionate careers, finding a better lifestyle elsewhere, etc. (Not to mention, underemployed college graduates earn 25% more than high-school graduates, so having a degree still gives you a leg up).

These are helpful things to keep in mind if you’re just starting your career or have college-bound kids!

Related stuff:

• 👨‍💻 Most Worth It: College Majors with Highest ROI
• 🙅‍♀️ Beyond Degrees: Shifting to skills-focused recruiting (more companies and local governments are dropping college degrees as a hiring requirement)

ICYMI

In other news…

Budget Apps 📲
Just a reminder that Mint is shutting down on March 23rd! If you haven’t migrated to another app, here are some alternatives to test out. (for tracking expenses only, we recommend Empower 🏆, and it’s free!)

Work / Life ⚖️
You may have heard Australia is implementing “The Right to Disconnect” law, which makes it illegal for managers to demand email or text replies from employees after business hours. Here are a few other countries that have similar rules. (ps. can someone implement this here in the US?)

401k Millionaires 💰
A new report from Fidelity shows the number of 401k millionaires jumped 41% last year (not too surprising, given the killer market returns). Here are some more interesting stats from their Q4-2023 report.

Fin Lit 👨‍🎓
Can you put a price tag on the value of personal finance education? It turns out, yes… A new report shows that if a child takes a single semester personal finance course in school, their lifetime benefit is ~$100,000!

Spring Cleaning 💸
Just a few financial spring cleaning tips and general money check-in reminders to make sure your finances are in a good place for 2024!

HOW *YOU* MONEY

Allison, 29, Boston MA ☘️

Occupation: School Counselor
Salary: $75,000 per year

Paycheck deductions: $1,650 (Pension, 403b, Health Ins, Taxes + Union dues)
Housing: $825 Renting with roommates
Other Debts: Student Loans – $310, Car Payment – $390, = $700/m
Living expenses: $1,200

Leftover savings each month: ~$825

How are you investing your excess savings each month?
I’m sticking $500 a month into my Roth and $300 sinking funds for yearly expenses like car insurance, rental insurance, other emergencies.

Biggest “craft beer equivalent” splurge:
I’m pretty frugal all around, but I love to travel and I’m willing to spend money on experiences. Last year, I saved leftover money and credit card points to go on my dream trip to Peru! Out of pocket, it cost me about $1000 total for everything.

Best savings hack/advice:
The most impactful money hack isn’t really a secret, but it was to automate everything. When savings are automatic and off the top, my budget adjusts to the leftovers (versus the reverse, adjusting my savings rate to the leftovers). When everything is automatic, I never miss a credit card bill and my savings is consistent month to month, which can really have an impact over the course of a year!

Biggest money challenge right now?
Maxing out my retirement accounts and forgoing lifestyle inflation! I’ve lived in the same apartment for 6 years and I’m 30 y/o. Though I love my roommates, I want to live alone. If I max out my retirement accounts, I cannot afford a one bedroom apartment even though I know it’s the smart thing to do.

Recent money win and how did you celebrate?
I went back to school to earn a final degree to max out my salary band. I didn’t take out student loans, took advantage of tuition reimbursement opportunities granted by my district, and wrote an essay to win a scholarship! Overall, I will increase my salary next year by $20K and it only cost me $10K out of savings.

Anything else you want to share?
I love your show and it has helped me so much over the last few years! I’m a long time listener and feel so comforted and excited about personal finance each morning when I listen on my commute.

*How do YOU 🫵 handle your income/savings/investments? We’d love to hear about it & share your story — Fill out this HYM form! (Don’t worry, we won’t publish anything without you approving it first)**

Welp, that’s it for now! Cheers to a great week ahead, creating and living your best life 💪 😎

Best friends out! 🍻