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Cash Dissipation, Crucial Convos & The Benevolent Cycle ⭕️

April 04, 2023

Happy Tuesday, future bajillionaires!

Ever heard of the benevolent cycle? ⭕️

It goes like this... "Being kind makes you happy --> And being happy makes you kind."

It all starts by doing 1 tiny little kind deed for someone else. This will lead you to feel happier... Then while your happiness is high, you'll want to be even kinder to others, leading to more happiness for yourself. And the cycle goes on and on from there...

Just something to think about this week. A benevolent cycle is a win/win for you and everyone around you. Only question is, what small little deed are you going to do to kick it off?

OK, on to the money stuff 👇👇👇

TO DO

Unsubscribe from Tempting Emails 😈

Retail newsletters are a blessing and a curse... Sometimes they're awesome (like when your craft-beer-equivalent retailer emails you with a 70% off sale and you can stock up big time!), but other times they can hurt you badly (like when they email you a little too often with temping products that you don't really need, but end up buying alway).

This week's mission: Scrutinize your email subscriptions. If they add money to your pocket or help you save, keep them! If there's no value added to your life, it's time to unsubscribe 👋.

We've heard unroll.me is a great inbox management tool. Helps you unsubscribe, consolidate, and prioritize emails/notifications.

FAMILY FINANCE

Getting on the Same Page Financially with Your Partner 👩‍❤️‍👨

No matter how long you’ve been together, or how messy your financial pasts have been, it is always worth it to have regular, healthy money conversations with your partner.

Being on the same page financially strengthens your relationship, alleviates stress, and can help you crush your life goals, faster!

Here are a few tips for those who are looking to be more financially aligned with their worse half (<— that was a joke)

1) Set money dates: It doesn’t need to be formal and serious… In fact, sometimes the best time to chat about money is while out on a long walk together. Being outdoors, neutral territory, walking side-by-side… These environments can lead to more open and honest communication.

2) Peel back the layers: It’s less about dollars, math, and spreadsheets… Your partner's money decisions and habits are driven by *feelings* and past experiences. So center your conversations around upbringings, money role models, how you both learned about money, biggest fears, future dreams, etc. More progress is made when you’re being vulnerable.

3) Listen more than you talk: You’ll unlock more goodness if you try to deeply understand your partner. This means listening without judgement, and trying their ideas before forcing your own.

4) Set common goals: Sharing long and short term plans together means you’re both more committed to achieving them. You’re stronger as a couple than tackling finances separately.

5) Make it FUN!: Celebrate milestones, gamify money challenges, and center conversations about what you can afford, vs. everything you can't.

6) Take it slow: You're not got to financially align 100% overnight. So take your time chatting and slowly merging your methods. The good news is you have your whole life together to figure stuff out.

All in all, it doesn't matter how your accounts are set up or who pays for what in your family. Getting on the same page financially is more about regular communication and working as a team.

More Resources:

TOGETHER WITH YNAB

Speaking of couples finance, YNAB let's you share your subscription with a partner or loved one. It's perfect for managing a household budget, even if you don't share bank accounts!

YNAB has a 34 day free trial, then after that it's $8.25 a month if you pay annually. Given that the average user saves $600 in less than 2 months using YNAB, this truly is worth it! **If you're a student, your free trial is 365 days!**

Check out YNAB if you need a better budgeting system. 💪

SAVING

Fighting Back Against Inflation 🤺

In times of high inflation, many people get nervous and think that hoarding cash and stuffing money under their mattress is a safe way to "protect" their money.

Sadly, the opposite is true. Inflation erodes cash, because the purchasing power of dollars gets weaker the longer money is left uninvested. Here's a visual of how inflation eats away the value of money over time.👇

So, how do you lessen the impact of inflation?

1) First, move all your saved cash (emergency fund, home downpayment savings, etc) into a high yield savings account or money market position that earns you the highest interest rate possible. CIT, Betterment, & Ally, all have rates around 4% right now. Short term CDs (like 6 months) are paying great interest right now too.

2) Check your HSAs, IRAs... actually — check EVERY brokerage account you have and make sure your retirement funds are invested properly. Sometimes cash builds up from dividends, or it could have been forgotten to be invested. (The average money market fund rate is 0.48% APY right now. You could be earning ~10x that by moving cash to a different savings account or money market fund.)

3) Buy less stuff. If the prices of goods and services continue to rise, spend fewer of your dollars on those expensive items. Go on a personal buyers strike or at the very least, trade down to store brands or other alternatives. This proves that you have more control over your spending than you think.

4) Keep paying off high interest debt and variable rate loans. As interest rates increase, debts compounds faster and hurt your personal finances even more.

Related stuff:

ICYMI

Noteworthy News...

IRS Free File ⚖️Apparently 70% of tax payers are eligible for IRS Free File, but only ~2% are taking advantage of it!! Great reminder for those with simple tax returns — check out this IRS Free File site for a list of partners that offer free federal (and sometimes state) tax filing.

Click to Cancel 🚫The FTC is proposing a regulation change to make it easier for people to cancel free trials and subscriptions. Woohoo! Here's a 1-pager showing the problem and their proposed solution.

Housing Prices 📉After 11 years of positive growth, February marked the first year-over-year decline in the housing market. Coupled with slightly lowered mortgage rates, it seems buying activity is picking up again.

ALDI Gear 👕Attention die hard ALDI fans... ☝️ Your fave grocery store just dropped a new line of clothes and branded swag. You can go get yourself outfitted with a jacket, pants, and hat for ~$25!

I Bonds 💸If you purchase I bonds within the next few weeks, you can still lock in that oh so beautiful 6.89% interest rate. Purchases made after May 1st will be subject to the new rate, which isn't released yet but is predicted to be much lower.

FRIENDS OF HTM

Brandon Copeland, NFL Linebacker 🏈

Did you know.... An estimated 78% of NFL players file for bankruptcy less than 2 years after retiring!?!? Overspending and *lack of financial knowledge* is what gets them in trouble.

Well, linebacker Brandon Copeland is on a mission to reverse that stat! Over the past decade during the off-season, he's been teaching financial literacy courses at UPenn, and using his platform to educate and financially empower others. What a legend!

We had the pleasure of interviewing Brandon on episode 559 last year. He's got a number of projects you might be interested in checking out, or you can follow him on Insta or TikTok!

Cheers for reading 🙌. Now it's time to get out there and do that tiny good deed. Have a great day and help someone else to have a great day too!!!

Best friends out! 🍻