Good morning, HTM family!

3 + 4 = 7

But… so does 5 + 2.

There are different ways to reach the same conclusion in life…

So keep an open mind when you come across people who think differently than you. Everyone makes/saves money differently, grows their wealth differently, and values different things in the world.

Heck, even 261 - 254 = 7.

Expand your thinking. There are infinite paths to a happy and successful life. 😎

TO DO

Do Nothing 📉

Aaaaah! The stock market is crashing!!! We better sell all our investments and run for the hills!!

Kidding, of course. History tells us that a) market downturns are normal and happen often, b) those who remain invested recover to achieve higher levels of wealth over the long run.

So this week: Stay calm, stay the course, and “do nothing”. 😎 And if you need a pick-me-up, read this: What to do when the stock market is crashing.

BUDGET

Saving Money on Childcare 🍼

Kids are expensive. There’s no way around it.

Probably the biggest sticker shock for newbie parents is the cost of childcare. A recent study revealed that in 2023 the average family with 2 kids would pay more for childcare than they do for rent! 😳

Paying through the nose is unavoidable sometimes. But it’s always worth exploring cheaper alternatives and ways to keep costs down.

Every family’s situation is different, so not all of these will be applicable to everyone. But here are a few things to check out and hopefully some will work for you:

• Explore government subsidies: First, always check if you qualify for government programs (state and federal) that offer financial assistance for childcare. Here are some places to start: 👨‍💻📝

  • Childcare Resource & Referral Agency Search

  • Temporary Assistance for Needy Families (TANF)

  • Head Start & Early Head Start Program Search

• Child Tax credits: Make sure you’re claiming both federal and any state-level tax credits you might be eligible for. 🤑💪

• FSA for the win: If your employer offers it, dive into those Dependent Care flexible spending accounts. You can save big bucks by reducing your taxable income 💰✨

• Community care programs: You can find hidden gems in your neighborhood – church daycares, YMCA childcare programs, community center co-ops, parks and rec daycares, university childcare centers… These usually have more wallet-friendly options for childcare vs. private institutions. 🏘️❤️

• Nanny share and care: Shared nanny services might be an option if you find other families in a similar kiddo situation. You could possibly split the costs of an in-home nanny and/or split days of the week. 👶👶

• Co-op creativity: Some community centers offer co-op childcare. They are quite cheap, but might require you to work there 1-2 days a week. You can also start your own co-op by getting together other parents and take turns watching each other's kids. It's like a weekly playdate rotation. 🔄👨‍👩‍👧‍👦

• School based programs: Check your local elementary school for any Pre-K or T-K programs. You might be able to send your 4-year-old for free a year before regular kindergarten starts. Star Inc. are a non profit attached to public schools that have affordable programs for kids sometimes as young as 3! ✏️🚸

Continue reading… 11 Ways to Save Money on Childcare Costs

TOGETHER WITH BETTERMENT*

Starting earning today

Turn out the lights on traditional savings accounts. With Betterment’s high-yield cash account, your money is earning 11x the national average**. Get started

**The national average savings account interest rate is reported by the FDIC (as of 3/18/24) as the average annual percentage yield (APY) for savings accounts with deposits under $100,000.

INVESTING

Speculative ALT Investments 👎

Sad news for all the “luxury watch flippers” out there. There’s been a huge decline in secondary market value over the past few years…

Here’s a chart from Yahoo Finance showing price changes for various watch brands ⌚️⌚️⌚️

We’re not huge fans of investing in collectibles (or any of the overly-hyped Alternative Investments for that matter).

Investing in jewelry, fine art, wine, crypto, etc. is highly speculative. It’s not that some of those things don’t have intrinsic value. But many investors are buying in hopes that someone else will pay more down the road. There’s a higher barrier to entry and these investment options come with much higher fees.

Potentially the worst part of speculative investing is the stress! Risky assets mess with your emotions and screw up your ability to think long-term.

Hey, if you absolutely LOVE Rolex watches, go ahead and buy yourself one because you want to own it! — not because you think it’ll rise in value over the years. And if you feel compelled to invest some of your dollars in alternative investments, keep your overall exposure minimal. Don’t risk money you can’t afford to lose!

When it comes to building wealth, boring is a good thing. Stick with those index funds, folks! You can’t retire with 100 Rolexes.

Related stuff:

• 🏡 HTM Blog: What are alternative investments and should you buy them?

• 📚 Book Rec: The Little Book of Common Sense Investing, by John Bogle (the dude who invented index funds!)

ICYMI

In other news…

Higher Ed 🤷‍♀️
Is college worth it? A new poll finds only 36% of Americans have confidence in the value of higher education. 😳

100 Year CD 💰
An American bank has announced it will issue a 100-year Certificate of Deposit (CD). Random, because not many humans would live long enough to see the investment fully mature. But it’s actually a cool program “intended for people looking to pass on their wealth to a charity, trust or family member”.

Unlocked 📲
The FCC is proposing a new rule that will force wireless carriers to unlock phones after 60 days. Yay for those who want a bit more freedom to switch carriers!

Assigned Seats 💺
Southwest is doing away with its famous open seating policy. Starting next year, they’re gonna start offering extra legroom and paid seating assignments.

Wealth Transfer 📈
New reports are showing that Gen Z and Millennials aren’t going to inherit as much money as they think, mostly due to miscommunications with their parents. A great reminder to a) start conversations EARLY with elder family, b) never “expect” inheritance money and c) keep growing your own wealth!

HOW *YOU* MONEY

Jared, 35, Bellingham, WA 🐳

Occupation: I&E Technician
Salary: $114K base, $155K including OT

Paycheck deductions: Taxes $1,500, Health & Dental $725, Union Dues, $130, 401K $1,700
Housing: $3,300 mortgage including escrow for tax/insurance.
Other Debts: None
Living expenses: ~$1,700

Leftover savings each month: $0 on non-overtime months.

How are you investing your excess savings each month?
In months where we have extra, we’re funding our “sinking funds” and working on our fun goals like an annual family vacation.

Biggest “craft beer equivalent” splurge:
Weekly date nights eating out. Or our espresso habit (at home machine and weekly beans delivered).

Best savings hack/advice:
Getting a month ahead! Aka the YNAB method. Also, travel hacking via credit cards.

Biggest money challenge right now?
Adjusting to becoming a one income household with a baby on the way.

Recent money win and how did you celebrate?
We paid for most of our Maui honeymoon with credit card points/miles/credits (flight, rental car, Andaz resort). We only needed spending money, which we saved in cash. We celebrated by enjoying our trip guilt free.

**Editors note: Do you 🫵 to be featured in an upcoming newsletter? Fill out this HYM form and share your story! (Don’t worry, we won't publish anything without you approving it first. And yes, you can be anon if you want!)

Cheers for reading! Have a great week ahead, and remember to expand your thinking!

Best friends out! 🍻