Good morning, HTM Family!

Try this real quick…

1) Past happy event: Think of a positive memory from the last few months. (A fun trip you took, a moment with your partner, or a big accomplishment at work that made you feel fantastic).

2) Current happy event: Think of something in the present, right now that you are blessed with. (Like the comfy bed you are lying in, the delicious coffee in your hand, or the amazing house that you have).

3) Future happy event: What is one cool thing you are doing this weekend? Or a major event that is happening soon that you’re really excited about?

Past, present or future… Your life is full of great things!!

Remember this often. Gratitude is the gateway to happiness. 😉

Alright, now let’s talk about money stuff! 👇👇👇

TO DO

Make a DIY Cleaner 🫧

Did you know the average American household spends ~$70 each month on cleaning supplies like bathroom cleaners, glass cleaners, and other multi-purpose sprays?

Why not try making your own cleaning agents at a fraction of the cost? Simple ingredients like white vinegar, lemon juice, baking soda etc. can be used to make safe and natural cleaners, saving you a decent chunk of money in the process. Try one of these easy recipes!

MONEY MINDSET

Chicken and Egg Cycles 🔄

I was chatting with a friend the other day and they told me, “The reason I order so much takeout food is because I’m not a very good cook”…

I argued back, “no… it’s the opposite. The reason you’re not a very good cook is because you order takeout all the time and don’t practice.”

(I usually don’t argue with people like this, but because they’re a close friend I opted to bust their chops a bit 😂)

Anyway, it got me thinking about common “chicken and egg” scenarios in personal finance. Sometimes flipping the narrative upside down or backward can make us more self-aware and help break a vicious money-wasting cycle…

Here are some more examples. Tell me if you can relate:

“They won’t pay me more, so I’m not going to try very hard” —> Maybe it’s because you’re not trying hard that they aren’t paying you more? 🤷‍♂️

“I spend all my money because I’m stressed and trying to make myself happier” —> Maybe you’re stressed and unhappy because you’re spending all your money and not saving much? 💸 

“I got a bigger house, and now I need to fill it with stuff” —> Maybe buying more stuff is the reason you needed a bigger house in the first place? 🏡

“I’m too tired to work out and focus on my fitness” —> Maybe focusing on your fitness and self-care will actually make you less tired? 🏃‍♂️

Vicious cycles can be hard to break. It’s difficult to identify what’s the cause and what’s the effect. But whatever the case, the first step to breaking the cycle is to identify that you’re in one!

This is something to think about when you’re facing the next money problem. Flip the script. Challenge your beliefs. Zoom out. Think long-term. Change your perspective. Be the change 💪.

Related:

• 💻 HTM Blog: Breaking the Paycheck to Paycheck Cycle.

• 🧘‍♂️ GoodRX: How to Break an Anxiety Cycle

TOGETHER WITH BETTERMENT*

Rise and grind, dollar bills!

Put your money to work in a high-yield cash account with up to $2M in FDIC† insurance through program banks. Get started today, with as little as $10.

FIRE MOVEMENT

Accessing Retirement Funds Early (without the 10% penalty) 💸

Last week we talked about the harmful effect of pulling money out of your 401k early.

But, what if you’re ready to retire and haven’t reached age 59 ½ yet? What if you want to “shuffle” some of your retirement investments around for a better pre/post-tax mix?

Well, there are several ways to access retirement funds earlier in life — many can be pursued without incurring penalties or paying extra taxes.

**An important reminder: Dipping into retirement funds early (to solve short-term money problems, or just for extra spending) harms long-term growth. These tactics should only be used by folks who are financially prepared to retire early (essentially super-savers), or as an extreme last resort**

Roth conversions are an awesome choice for low-income years leading up to early retirement. You convert pre-tax retirement funds over to your Roth, then you can withdraw those funds penalty-free after 5 years.

Health Savings Accounts also allow meaningful flexibility for withdrawals if you plan correctly. In this HSA article, we talk about the “shoebox” technique which allows you to withdraw funds tax and penalty free later in life by claiming expenses that happened years earlier.

A SEPP plan can also be a handy tool for early retirees. You set up regular withdrawals from a specific IRA account to provide income before you reach 59 ½. There are several rules to follow, so careful planning is needed here too!

If you’re young and are planning to quit working before you reach that all-important age 59.5 milestone, it’s worth reading up on these options and creating a general withdrawal plan. No penalties + less tax = win/win.

Related stuff:

• 💻 Full Blog: 8 Ways to Access Retirement Funds Early

• 🔥 FIRE: Different types of FIRE and how to achieve it

ICYMI

Noteworthy news…

Un-retired 👨‍💼
ResumeBuilder’s latest survey shows 1 in 8 retirees are planning to go back to work this year. Inflation and higher cost of living are hitting folks hard, so look out for more competition in the workplace.

Wrapped 🚙
Car wrap scams are on the rise, and the FTC just issued a warning about how to spot them. Stay away from anyone asking for payment in crypto, wire transfers, or payment apps!

Break down 🏠
Great article from Construction Physics on What Makes Housing So Expensive? “In most cases, for both new construction and existing housing, the largest line item is the cost of constructing the home itself.”

Lucky 🦆
Morgan Housel talks about the difference between Lucky vs. Repeatable. “The way to get luckier is to find what’s repeatable!”

Zoom Out 📈
Visual Capitalist compares the growth of $100 by asset class, from 1970 - 2023. It’s always good to zoom out and think long-term!

HOW *YOU* MONEY

Neal and Helen, 29y/o’s, Bartow, FL 🌴

Occupation: Traffic Engineer
Salary: $96,600

Paycheck deductions: ~$1,200
Housing: $1,400/month covers mortgage taxes and insurance
Other Debts: No debt!
Living expenses: ~$3,800

Leftover savings each month: ~$1,500

How are you investing your excess savings each month?
$500 goes into a Roth IRA, the rest is saved for a new-to-us car. Our second child will be here soon and we want to get a slightly bigger vehicle.

Biggest “craft beer equivalent” splurge:
Travel, we try to make it to a different national park each year.

Best savings hack/advice:
Use your local library resources. We take our son to the library regularly and get 20 new children’s books to read for the next couple of weeks instead of buying new books. Our library also offers free day passes to local museums that we use often.

Biggest money challenge right now?
Being content with what we have. There’s a constant pull to want more (we never spend money we don’t have) but learning to be content is a constant struggle.

Recent money win and how did you celebrate?
I got my professional engineering license which came with a significant pay raise. We celebrated by maxing my Roth contributions for the year and updating our budget, allocating funds to areas of need.

**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)**

Cheers to a great week ahead, maintaining an attitude of gratitude! 🙏

Best friends out! 🍻