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Carpooling, Stacking Subscriptions, & Paying Off Your Mortgage Early 🏡
Happy Tuesday everyone!! Bad news: This week, you will probably…
Happy Tuesday everyone!!
Bad news: This week, you will probably…
- screw something up
- waste some time
- waste some money
- miss an opportunity
- hurt or offend someone
BUT…. Here’s the good news. You will also probably…
- learn from your screw ups
- reclaim some lost time
- save a few bucks on something
- find or create a new opportunity
- brighten someone’s day
Screw ups are inevitable, because no one is perfect.
Just don’t dwell too hard on the first list, that you forget about the second list. That’s an important part of life too. 😉💪🌤️
Now, let’s talk about money stuff! 👇
TO DO
Organize a Carpool 👯♀️

School is back! And so is that loooong drop-off line. Why don’t more people bike their kids to school? Or at least carpool with some neighbors to cut down on driving? 🤷♂️
Your challenge this week: Offer another family a morning ride to school, and maybe they’ll reciprocate on another day. Parents save money/time. Kids get to play “corners” in the back. Win 🤜🤛 win.
DEBT
Paying Off Your Mortgage Early 🏡
Mortgage rates are at a 22-year high, now averaging ~7.23% for a new 30-year fixed home loan.
While it might not make financial sense for homeowners who locked in sub 3% rates a couple of years back, paying down your mortgage early is looking more and more attractive for new buyers with higher rates.

There’s no straightforward answer to this thorny question that suits everyone. And the beauty of being in Money Gear 6 or 7 is that YOU get to decide the best moves that match your goals and aspirations.
Want to prioritize paying off your mortgage? Go for it! But here are a few things to consider first…
Can you get a better return on your money? 📈
Think of your mortgage interest rate as a guaranteed return on any extra money you would otherwise put towards an early payoff. (eg. Got a 4% mortgage? = 4% ROI on any early payments). So depending on your rate, you may be able to get a better return on your money by investing it in the S&P 500, averaging returns of ~10% over the last 30 years.
What is your risk tolerance? ⚖️
Lower debt typically means lower risk. But are you also comfortable with the risk of missing out on higher potential returns from other investments? If you can earn a higher return in a plain old savings account that comes with essentially no risk (and many folks can these days) there’s even less of a reason to prioritize mortgage payoff.
Other life goals… 👨👩👧👧
If you pay down your mortgage early, you can’t really access those savings unless you refinance or sell. Real estate is an illiquid holding and that could take a while — so, will locking up that money interfere with any other short or long-term money goals you have? Buying a rental property, funding retirement accounts, saving for education, etc?
How comfortable are you with being in debt? ✌️
Some people just hate having that monthly payment. We get it! If you want that payment out of your life for peace of mind, even though you know it may not make sense from a numbers standpoint, go for it. Peace of mind is priceless. And trying to fully optimize every single thing is a bit overrated.
Ultimately, deciding to pay off your mortgage early is a personal choice. Be sure to do your own research, crunch the numbers, and think about what’s important to you in life. Maybe a hybrid approach is best? You do you!
Related stuff:
💻 HTM Blog: Best Ways to Pay off Your Mortgage Early
🔢 Calculator: Early Mortgage Payoff Calculator
TOGETHER WITH CIT BANK*
Got Over $5k in Savings?
Woot woot! One of our fave online banks — CIT — is now offering a 5.05% APY* with their Platinum Savings account on balances of $5,000 or more!!!
We like CIT because there’s no account opening or monthly fees, cash is FDIC insured (up to $250k), and almost all tasks can be managed via their mobile app.
If you’ve got over $5k in savings and you’re still using a checking account earning pennies in interest, check out the CIT Platinum Savings account.
Ps. $5k at 5% APY = about $20 interest per month = extra 🍻 money!!)
*Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of-day account balance. APYs — Annual Percentage Yields are accurate as of July 27, 2023: 0.25% APY on balances of $0.01 to $4,999.99; 5.05% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.
SAVING
Subscriptions Add Up 📺
This chart of the week comes from the Chartr newsletter, where they stack up TV streaming services against cable costs.
Here’s something I never thought I'd say… For some TV aficionados, buying a cable TV package might be a better bet from a money perspective! 👇👇👇

That being said, are all of those streaming services really necessary?…
Here’s what we think: The more streaming services you buy, the less value you get out of each of them…
For example, let’s say you watch 1 hour of TV every day, totaling 30 each month. By paying for just one service, let’s say Netflix at $16 per month, you’re essentially getting that service for about $0.50 per hour watched.
Now, if you add another service on top of that (let’s say HBO Max at $16 per month), your value out of Netflix drops, because you pay the same monthly price but watch it less. So it increases to around $1 per hour watched.
And so on and so on…
By adding more subscriptions, you’re devaluing the ones you already pay for.
Plus, Nielson reports that the average person takes 10 minutes just to decide what to watch. We’ve all been there. Too much choice can be overwhelming while simultaneously costing you money every month!
Just something to think about. It never hurts to do a review of your TV subs and cancel the ones you rarely use.
Related stuff:
📺 Free TV Options: Pluto TV, Tubi, The Roku Channel
🍿 Library Apps: Hoopla & Libby (also most local libraries have a DVD section if you want to kick it old school)!
📖 HTM Blog: 18+ More Frugal Hacks to Save Money
ICYMI
Newsy news news…
October 7th ✈️
Get ready to book holiday travel!!! According to Google Flight’s price tracking predictions, “domestic flights timed around Christmas 2023 will have the lowest fares 71 days before departure. Traveling on Dec. 21, for example, would mean purchasing your flight as early as Oct. 7.”
Groceries 📲
A new nerdy study combed through 2 million Instacart and in-person shopping trips and revealed some interesting trends… “Instacart baskets have 13% fewer fresh vegetables and 5-7% fewer impulse purchases, such as candy, bakery desserts, and savory snacks”. 🤔
Smarty Pants 🙋♀️
Really good article by Morgan Housel — Intelligent vs. Smart — Runs through differences and examples of intelligent vs. smart people. The GOAT money writer produces another one that’ll make you think.
Personal Finance 101 💵
Nobody taught you about money growing up? You’re not alone… Check out this new post on the HTM blog —> Where to start if you’ve never been taught anything about money.
HOW *YOU* MONEY
David, 25, in Rockville, MD 🌳

Occupation: Data Scientist
Salary: $115,000
Paycheck deductions: Taxes - $2,875. Insurance - $25. 401k - $1,438
Rent: $1,020 (I split rent 50/50 with my partner)
Other Debts: None!
Living expenses: ~$1,200
Leftover savings each month: ~$3,000
How do you invest your excess savings each month?
I put $2,000 into savings, $541 into a Roth IRA, and the rest into an HSA.
Biggest “craft beer equivalent” splurge:
I like spending on fun experiences (e.g., concerts, movies, museums). Next month I'm going to the world's largest pickle festival in Baltimore.
Best savings hack/advice:
I think it's important to figure out what you value in life and spend money on the things that you love while cutting back on the things that don't give you as much happiness.
Biggest money challenge right now?
Saving up for the wedding has been a challenge just given how expensive they've gotten over the past few years. My fiancé also has student loans, so I'm trying to save enough to pay them off once we get married. There are other things I'll have to save up for over the next few years such as a house downpayment and car.
Recent money win and how did you celebrate?
I recently made a deposit on a wedding venue! I guess our celebration will be the wedding itself! :)
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Cheers for reading! See you next week — Same bat time, same bat channel.
Best friends out! 🍻