Dear everyone,

As we approach voting day, let’s keep in mind that we are all part of the same community.

We are lucky enough to live in a country where we have a say in who leads us.

While opinions differ, our shared humanity binds us together. Let’s be sure to treat each other with kindness and understanding, no matter the outcome of the election.

As you head to the polls today (or if you voted early like us), let’s carry this spirit of respect with us — because at the end of the day, we are all in this together. 🇺🇸

OK, onto the money stuff!👇👇👇

TO DO

Pay It Forward 💸→🧍‍♀️

Think of the last time someone did something nice for you. Like treating you to a coffee, giving you a heads up on something that saved you money, or going out of their way to save you a little time.

This week: Pay it forward! Show someone else the kindness that was shown to you. 🌎

SPENDING

Broke Celebrities 😭

You probably saw Al Pacino make headlines recently with stories from his memoir, “Sonny Boy”, where he opened up about his financial struggles.

How exactly can someone who earns millions become so broke?..

In Pacino’s case, he was spending $400,000 each month to maintain two homes, multiple apartments, and an office, spending $400,000 a year just to trim the lawn at one of his houses! He also owned 23 cell phones, 16 cars, and trusted his money to an accountant who was later charged with running a Ponzi scheme…

"I had fifty million dollars and then I had nothing," he said.

Here are a few other similar “riches —> rags” stories…

Thomas Jefferson
Our third president was awesome at many things, but personal finance was not one of them. He struggled with debt his whole life, dying in 1826 with $107,000 of outstanding loans (about ~2 million in today’s dollars). Jefferson loved buying fancy decor, home furnishings, and importing French wine. In fact, the wine bill during his presidency amounted to over $10,000 alone!

Susan Powter
She was a 90’s fitness icon, at one point selling over $50 million per year in weight loss products and fitness instruction tapes. Sadly, Susan’s business and finances were horribly mismanaged. She trusted the wrong people and spent gobs of money fighting lawsuits.

She admits: “Someone else was handling it. I never checked balances. I should have questioned. I fully acknowledge that. I made a mistake.”

In 2018 Susan was so broke she started doing GrubHub and UberEats deliveries to make ends meet. 😬

Nicholas Cage
This guy has starred in over 120 movies! After building up a net worth of over $100M in the early 2000s, things quickly went south and Cage pretty much lost everything. His downfall? Expensive real estate…

Between 15 houses, two castles, and a private island, you could say that Cage was living just a liiiittttlleee bit beyond his means. Not to mention his love for exotic pets and vintage cars!

To his credit, Nicholas Cage never filed for bankruptcy. He worked his butt off (taking on “crummy roles” in films he didn’t like) to pay back the millions he owed his creditors. Respect!

Dionne Warwick
She sang “I Say a Little Prayer for You” and “Walk on By” among other massive hits that made her millions. (I also just learned that Dionne is Whitney Houston’s cousin!)

Anywho, I guess Dionne didn’t file her taxes correctly, not fully reporting all her income to the IRS… In 2013, she filed for bankruptcy with over $10M in debt — $6,964,466.87 of which was owed to Uncle Sam.

Lessons we can learn from all this…

• Live within your means.

• Don’t turn your back on your own finances or blindly trust others to manage on your behalf. Your money = your responsibility to manage.

• Track your spending. Almost everything you buy comes with ongoing costs.

• Keep your housing costs in check. Don’t be house-poor!

• Pay your taxes and don’t cut corners in business.

It doesn’t matter how much money you accumulate, the basic personal finance principles remain the same at any level.

TOGETHER WITH US MOBILE*

Try It, Love It 📲

US Mobile lets you try out their coverage and service for free for 30 days to see if they’re a good fit for you…

If not, no worries! They have no contracts, so you can switch back to your old carrier any time you want.

US Mobile is well worth considering. They have the cheapest unlimited plans available, starting at $17.50 a month.

If you own your device and want to lower your bill, check out US Mobile. 💪

INSURANCE

Skyrocketing Car Insurance 🚘

We’re all feeling the crunch of auto insurance costs more than ever. It's really bad.

Here’s a chart showing increases in average car insurance premiums vs. general inflation rates 👇👇👇

WHY is insurance so expensive!?!?
Contrary to what you might think, insurance companies aren’t price-gouging for no reason. They’re upping policy costs to cover their rising claims and expenses. In fact, auto insurance companies have actually had negative revenue for the past 3 years.

Fancy cars with modern tech are becoming more expensive to repair. EV repairs can be incredibly costly thanks to the high cost of batteries. The cost of auto parts and labor have increased significantly in recent years too.

And to top it all off, many drivers are dropping insurance completely — increasing the cost for everyone else.

What can we do about it to keep costs lower?
A few suggestions:

1. Delay upgrading if you can. Buying a newer car won't only mean forking over more money (and potentially taking on a much higher monthly payment), it could mean increasing your insurance costs substantially too.

2. Check with your insurance provider BEFORE buying a new or newer model. That Tesla might save you money on gas, but it will likely raise your insurance premiums a TON, potentially negating those savings.

3. Own fewer cars. It's not feasible for everyone, but if you rarely drive or WFH most of the time, the rising cost of insurance could push you in the direction of having fewer cars in your driveway. Ditch a car and reduce those insurance costs significantly!

4. Shop around regularly. We typically suggest every 2-3 years calling around and shopping insurance rates. BUT, shopping every 1-2 years would be better in this current environment of rapidly rising rates.

5. Ask about discount programs. Taking a defensive driving course, being in xyz industry or a military family, low mileage discounts, etc. Many insurance companies offer discount programs — you just need to ask.

6. Self-insure as much as possible. Run the numbers, but raising your deductible could be a slam-dunk choice if you've built up meaningful savings. If you're driving an older car that is mostly depreciated, consider dropping full coverage. Having the cash on hand to pay for a new ride is crucial to pulling this off.

Eventually, relief will come and rates will normalize (insurance is cyclical). But we may be a couple of years away from that. Time to embrace frugality. Save wherever you can!

Related stuff:

• 🚘 HTM Blog: How much should I spend on a used car?

• 💸 Loans: How to pay down that car loan faster

ICYMI

Noteworthy news…

2025 Contribution Limits
The IRS just announced updated contribution limits to retirement accounts for next year. Spoiler alert - 401k limit increases to $23,500 (up $500) and Traditional/Roth IRA limits are staying the same at $7,000.

Lost Decade 📈
Goldman Sachs announced its market predictions for the S&P500, saying we’ll only see an average return of ~3% annualized over the next decade. Will it come true? We don’t know but take those predictions with a grain of salt, y’all!

Wedding Gifts 🎁
You know what people want when they get married these days? Cash. Asking for money used to be a bit taboo, but now it’s becoming the norm to help newlyweds buy a home or other big-ticket items.

Open Banking Rule 🏧
The FTC just unveiled plans to make it easier for people to switch banks. Many people put up with mediocre services because “it’s too hard to switch”, but that may soon be a thing of the past.

Upgrade cycle 📲
People are holding onto their old phones longer (a trend we love to see!) With no huge notable differences in features or hardware upgrades, there really is no need to pay a premium for the latest tech.

House Poor 🏡
What percentage of your total assets should be in your primary residence? Of Dollars and Data walks through some calculations to make sure you’re not overly invested in your home.

HOW *YOU* MONEY

Lauren, 27, New Ulm, MN ⛲️

Occupation: Manufacturing Engineer
Salary: $108k

Paycheck deductions: 401k, Roth 401k, HSA, & ESPP = $1700 
Housing: Mortgage, tax, & insurance = $1200
Other Debts: Student loans = $125
Living expenses: $2,300

Leftover savings each month: ~$800.

How are you investing your excess savings each month?
I put $500 directly into my emergency fund. My goal is to have 6 months of expenses built up into my emergency fund.

I put an extra $175 on my student loans. I know it may not make the most sense financially but emotionally I don’t like having this debt.

Biggest “craft beer equivalent” splurge:
I am a member of a CrossFit gym, so I pay $170/mo for a gym membership. I believe I get more out of it than just a workout. Outside of work it has been a great way to meet new people and be a part of a community. I think this goes for any group/class style workout programs. I would highly recommend if you move to a new town and don’t know anyone!

Best savings hack/advice:
I don’t budget but I track my spending. I use an excel spreadsheet and track my spending once a week. I like to be able to see where I might need to reel in my spending certain months. A great first step to improve your personal finances.

Biggest money challenge right now?
I have worked for my company for 2.5 years and have put 3% of my income towards the ESPP. I have not sold any of it because I don’t know when the best time to sell is. Or when I sell it what to do with the money. Reinvest it in S&P500?

Recent money win and how did you celebrate?
I paid my 2021 Toyota Tacoma off!! Took it through the car wash, lol! 

Again this was not the most financially smart decision. I bought this vehicle once I graduated and got my first adult job as a “gift” to myself, even though I had a reliable 2015 Nissan Rogue. I have now learned through listening to this podcast and others, that having a new vehicle isn’t the most important thing to me. I plan on keeping my truck for many years to come.

Anything else you want to share?
Love your podcast, I feel like I’m always learning new things!!

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Welp, that’s it for now. Don’t forget to VOTE today!!! 🗳️

Best friends out! 🍻