Good morning, HTM fam!

Quick! Complete these three tasks immediately! ‼️

1. Throw your phone in the other room - seriously, if you just woke up and are browsing social media or reading work emails, it’s a surefire way to start the day off on the wrong foot (unless you’re using it to read this newsletter 😉).

2. Think of 5 things you’re grateful for - Your family? Your job? Your bed? This newsletter? Do it, do it, do it! 💪

3. Ask yourself this question - “how can I make today a great one?” Even if it’s a work day, what are some easy ways you can make it more exciting or fulfilling? Life is short - don’t save all the good stuff for the weekends.

Your day is now pretty much guaranteed to rock. You’re welcome. 😇

No time to waste. Let’s get on to the money stuff! 🤑

TO DO

Ask Matt & Joel a question! (And snag some socks)🙋‍♂️

After 7 years of How To Money, we’re gearing up to release our 1,000th episode! 🤯

But we need your help to make it a special one. For Episode 1,000 we’re taking all of your wackiest, non-money-related questions for an “Ask Me Anything,” HTM special.

Ever wondered what Matt’s hair routine is? Who is Joel’s favorite folk artist? Who can put away more craft beers without prank calling the Dave Ramsey show? Send us your most unhinged questions, and yours could be featured in this milestone episode.

And as a thank you, we’ll send you a sweet pair of HTM socks if we take your question on the show! 🤩

Submitting a question is super easy. Just reply to this email with your burning query. OR, record a voice memo and send it to [email protected]. Find the full instructions here!

MONEY MINDSET

Battling Money Anxiety 🧠

May is Mental Health Awareness month. It’s no secret that our money is directly tied to our mental wellness. In fact, a new Bankrate survey found that money is the top factor negatively impacting Americans’ mental health, and has been for the past three years. Yikes! 😬

But here’s the kicker. Our money concerns aren’t just impacting our mental health. They’re having a serious impact on our behavior as well. Those who reported worrying about money were three times more likely to have paid a bill late in the past month, and were less likely to have saved for the future or invested during that time.

And while those earning below $80,000 annually were more likely to report money concerns affecting their mental health, money anxiety is not exclusive to low and middle income earners. In fact, you may have heard that over half of Americans making over $100,000 per year report living paycheck to paycheck! 😱

It’s a vicious cycle - the more we spend, the more we stress about money. The more we stress about money, the worse decisions we make. And so on and so forth…

How do we break this toxic pattern? By learning to manage our money anxiety! Here are a few tips for tackling financial stress that will help you achieve more peace of mind…

🏦 Accept Reality - The only way to move forward is to confront and accept your current financial situation as it currently stands. Log in to your bank account. Size up your current debts. Sticking your head in the sand will only make things worse. No amount of beating yourself up is going to magically improve your situation, so face those numbers head-on. Once you understand where you’re at, you can make a plan from there. It might not even be as bad as you imagined!

📝 Focus on what you can control - It’s easy to get swept away by news headlines, but the truth is that you can’t control what goes on in the rest of the world. However, you do have quite a bit of control over your spending, debt payoff plan, and your retirement contributions. Focusing your energy on actionable money tasks can help you to feel more in control of your future!

🤝 Help others - Getting our hands dirty by helping others in our community can help us to feel more grateful for what we already have. Serving others gives us a greater sense of purpose and can take our minds off the heavier stuff.

🕰️ Put it on the schedule - One of the best tips for managing money stress and anxiety is to schedule time to get your money game together. Having a plan for when you’re going to address those concerns can help you stop thinking about money 24/7. Carve out a few hours at the same time each week to do a personal finance check-in!

💵 Build up an emergency fund - One reason why people often feel money anxiety is because they know that one emergency could completely upend their finances. Basically, their fears aren’t completely unfounded. If you haven’t already saved up a basic emergency fund, working towards that goal will ensure you’re covered when unexpected expenses arise.

Lastly, remember that money anxiety is something everyone deals with at one time or another. Know that you’re not alone. It can help put those big emotions in perspective.

Related stuff:

• 12 Ways to Battle Money Anxiety

• Financial Self-care: Why You Need It and How To Practice

TOGETHER WITH DAFFY*

Giving 🤝 Paying Less Tax

Daffy helps you donate stocks, gold, and even crypto to your favorite charities!

Why not just donate cash? 🤔

Because when you donate appreciated assets you’ve held onto for more than a year, there’s a double tax benefit.

You avoid paying capital gains tax on any appreciated assets you donate, and you get to claim the full market value of the stock in the year it was donated as a tax deduction. You get to help your community, all while saving more on taxes. Win-win!

How much can you save? Check out this calculator Daffy made that breaks down the potential tax savings of donating stocks vs. cash.

This is one of the reasons we love giving with Daffy… More giving options and more efficient donations. Learn more here!

CARS

Sky High Car Insurance Premiums 📈

Car insurance is one of those secondary costs that folks often forget to consider (or just underestimate) when shopping for their new whip. However, car insurance premiums can make up a huge portion of what you end up paying for your car every month. That’s more true now than ever before.

The average annual cost of car insurance rose to $2,000 in April, which equates to about $167 per month. However, with some makes and models, particularly tech-heavy ones like Teslas, your insurance cost could double. That’s a steep price to pay, especially if you’ve got a hefty car loan too! When you consider these prices, it’s no surprise that the average annual cost of owning a car is $12,297. 😳

However, you don’t have to just roll over and accept these crazy high prices. Here are some tips for avoiding the sticker shock of insurance premium increases and lowering your monthly transportation costs.

🚗 Affordable vehicles rule - You might not be able to sell your car and buy a new one immediately. But it’s important to point out that some car models cost less to insure, like the Honda CR-V, Toyota Tacoma, and Subaru Outback. Opting for one of these cars over a Tesla or Audi can save you thousands of dollars on insurance each year.

🗣️ Discuss Insurance Earlier - If you’re purchasing your car from a dealership, make sure to get information about insurance costs before you fall in love with a car and close the deal. Call your agent to confirm the costs of your new policy. You never want to get taken by surprise after you’ve already made a purchase.

🛍️ Shop around - when it comes to insurance, it pays to shop around. Make sure to get quotes from multiple insurance providers. Every year or two, get quotes from other reputable insurers. Switching providers can be a great way to free up more space in your monthly budget! Oh, using an independent agent can be a big help.

👨‍🏫 Take advantage of discounts - many car insurance providers offer discounts if you’re accident-free or for taking a safe driving course, which you can take online. Plus, many college students can snag discounts for having good grades! Leave no stone unturned on the discount front.

🚙 Buy a used car - There are so many reasons we recommend used cars instead of new ones. Buying a new car is almost never the most financially savvy move. An added perk - used cars are typically cheaper to insure.

🚴 Live without a car - Want to cut the cost of car insurance from your life completely? Consider living without a car! While this won’t be possible for everyone, the annual savings make it seriously tempting.

The key takeaway? If you’re in the market for a new ride, have a plan to assess and pay for those insurance costs before you decide on your vehicle. And if you can, buying a car with cash will reduce your monthly commitment to only that of your insurance, gas, and maintenance. Despite recent price hikes, saving money is still possible!

Related Stuff: 

• 💻 HTM Blog: The Pros and Cons of Living Without a Car

• 🎧 Episode 589: Killer $5,000 Cars & The Future of EVs with Consumer Reports’ Mike Quincy

ICYMI

Let’s Catch You Up…

Has the American Dream Become Unattainable? 🇺🇸
Wage stagnation, housing costs, inflation - have they made the American Dream a relic of the past? Or has it simply changed? This thought-provoking opinion piece from Of Dollars and Data examines how things have morphed over the past decades.

How Egg Prices Work 🥚
Did you know that the average American eats 250-300 eggs per year!? 🤯 Egg prices aren’t just hatched out of thin air… here’s an in-depth look at how eggs are priced.

The Magic Number ✨
How much do you need to retire? Well, the answer will be different for everyone and depends heavily on lifestyle preferences/expenses, etc. But, according to a survey from Northwestern Mutual, the Average American thinks they will need $1.26M to retire!

Rising Health Food Costs 🥬
According to the Pew Research Center, prices influence Americans’ choices at the grocery store more than healthiness considerations. But we think the choice between eating healthy and saving money is a false dichotomy. “You can do both”, I say as I sit here eating a delicious, filling, and inexpensive apple.

Related - Food prices are up, but that doesn’t mean that you can’t still fight back against inflation! Here are 10 ways to slash your grocery bill!

Rich High Schoolers 💰
Some high school juniors have been receiving $70,000 job offers, more than double the average pay across America! These companies are looking for kids with ‘shop’ experience, like welding. Just think of all the video games and energy drinks they can get with a salary like that (I don’t know what teens buy these days 😬).

COMMUNITY

Upcylced Jars are Sooooo In Right Now… 🫙

@plantbased.baby

Replying to @Farkha 🐔 upcycling and making things homemade > #googone #homemade #upcycle #upcycling #reuse #reuserecycle #recycle #reducer... See more

Glass jars can be an aesthetically pleasing way to organize your fridge and pantry, and can double as cute drinking glasses. But don’t rush to Amazon to snag these. In fact, you probably already have some in your home…

Why pay for glass jars when they come for free with so many of our grocery purchases? Pasta sauces, pickles, and PB&J often come in reusable glass containers that you can clean and repurpose in myriad ways.

This helpful video shows how you can easily remove that annoying adhesive from the labels.

You can also use a cheap label maker to DIY glass organizers without the hefty sticker price. Happy crafting!

Alrighty gang, that’s all the money stuff we have for today. Enjoy the week ahead, and remember to do something nice for yourself today! 😊

Best friends out! 🍻