Happy Tuesday HTM Fam! ☀️

It’s no secret that many of us consume more content than we’d probably like to admit.

Maybe you feel the need to watch YouTube while you eat breakfast before work. Maybe you scroll Instagram when forced to wait in a line. Or hey, maybe you’re nonstop binging HTM episodes at 2x speed as you go about your daily life. We all have our kryptonite. 🤷

But what happens when you stop consuming content 24/7? You start to have your best ideas.

You see, your mind needs time to wander. It’s actually an evolutionary tool, and we can learn from imagined experience. It’s been shown to improve your mood and strengthen your problem-solving skills. Even better, letting your mind wander allows for “creative incubation,” which is the background mental work that precedes your big “aha!” moments. But, your mind can’t wander if you’re constantly feeding it stuff.

So today, try to reduce your content consumption in a meaningful way. You never know what your mind might cook up to keep you entertained!

Okay, enough preaching! On to the money stuff! 💰

TO DO

Ditch Your Paper Towels (And Never Look Back)🧻

One of the best ways to reduce waste and save money in your household is to kick single-use paper products to the curb! ✌️

It’s no secret that paper towels are convenient, but that convenience comes at a cost. A 6-pack of paper towels can cost you over $10, depending on the brand and where you buy them. 🤯

This week: Replace your paper towels with towels you can wash and reuse. See if you can snag a few dishcloths and tea towels second-hand or on sale. Spoiler alert: You can easily buy them for less than a 12-pack of paper towels. For dirtier jobs, consider cutting up some old t-shirts!

Will ditching paper towels in your household instantly make you a millionaire? Nope. But it can mean having an extra $100+ every year to spend on something that you’re not just going to wipe your hands with and throw away.

SAVING

The Frugal Values Behind Building Massive Wealth 💰

Last week, we received some thoughtful listener feedback on one of our newsletter intros. It read:

“I’m a big fan of both your podcast and newsletter!

A few quick comments-

In this newsletter on what defines you, I was struck by how cliche your what does not define you list was. 

Net worth: hopefully not visible to others, but demonstrates a commitment to living below your means and thoughtfulness in investing. 

Material belongings- shows restraint in purchasing, and what purchases are made are intentional with regard to value, safety, and utility. 

Your debt- Reflects prior purchase decisions and commitment to living below your means. Some debt might be unavoidable (modest house purchase) but much of debt reflects impulse credit card use and lifestyle signaling. 

So I guess I’d conclude that these three things do partially define us.”

We love engaging in meaningful conversations with our readers! And our friend here makes a great point.

With this newsletter intro, our intent was to help folks understand that their past money mistakes don’t fully define them, and that the richest folks aren’t superior simply because they’ve got a fat stack of cash in their investment accounts. Plus, we all have different starting points when it comes to personal finance. Oftentimes, our current financial situation may not tell the entire story, especially for folks who have recently made positive changes to how they handle their money.

But we do agree that there is plenty of room for nuance here! In fact, frugality is often heralded as a virtue in and of itself! And it is certainly true that all of these things tend to reflect the deeper realities of the people we’re becoming. The truth is that our values will ultimately have an impact on how we use/interact with money. Adopting frugal values (and working to live in alignment with those values) can help you to grow your wealth in a meaningful way for the future.

The good news? No matter what mistakes you may have made with money in the past, you can choose to adopt these frugal values right now. It might even change you for the better! 😉

😌 Contentedness - Frugal folks have mastered the art of being content with what they have. They don’t need to splurge on the newest tech gadget or the latest trends to feel satisfied. They know they have enough and regularly practice gratitude.

⏰ Patience - Frugalites aren’t looking to get rich quickly. Their investment portfolios are diversified, and they use “tried and true” investing methods to build wealth. They aren’t tempted by fly-by-night crypto coins or the latest meme stocks because they know that if they buy and hold assets over the long term, they will grow their wealth. Their portfolios reflect patience, fortitude, and self-restraint.

👀 Foresight - Frugal folks have the backs of their future selves! They try to prepare as best they can for the unexpected by saving up an emergency fund. And, they save for irregular expenses using sinking funds. You won’t catch them surprised when their car needs new tires. And they wouldn’t think of taking on debt to buy holiday gifts.

💪 Strength - One of the most important aspects of building wealth for the future is advocating for yourself in the workplace. Oftentimes, getting a hefty raise is the result of savvy negotiation skills and having the courage to stick up for yourself.

🧠 Mindfulness - I suppose it is true that our belongings can partially reflect who we are. Frugal people have strong mindful spending skills. This means that they spend money in alignment with their values. They prioritize spending on purchases that truly bring them joy, and make budget cuts to things that don’t enrich their lives.

🎨 Creativity - Sticking to a tight budget requires a lot of creativity. In fact, getting more creative is one of the many benefits of budgeting! Whether you’re crafting new recipes to use up every scrap of food in your kitchen or planning the most epic frugal date night, saving money can be fun and exciting.

🤝 Generosity - Lastly, one of the most virtuous ways to steward your money is to use it to help those around you. Donating money (or time) will both strengthen your community and allow you to be a part of something bigger than yourself.

What’s in our bank accounts isn’t always going to be an up-to-date indicator of who we are as a person. But how we handle money shines a light on deeper realities happening underneath the surface. A shrinking debt balance signals hard work and sacrifice. A growing retirement nest egg can reflect your dedication to living below your means.

At the end of the day, this convo is a great reminder that making decisions in alignment with our most important values will ultimately create the life we want to live.

Related - 10 Frugal Values That Can Help You Build Massive Wealth

NET WORTH

Millions of Millionaires 🧐

Becoming a millionaire. It’s a goal that a ton of people aspire to when beginning their personal finance journeys. The good news? It’s becoming more and more common.

The number of “everyday millionaires” (folks with $1-5M net worths) has been skyrocketing, reaching 4x the number of everyday millionaires in the year 2000. And even when you take inflation into account, we’re still looking at a rate of more than double the everyday millionaires.

However, while many people imagine millionaires to be ultra wealthy, monocle-wearing tycoons of industry (I always just picture Mr. Peanut), these “middle-class millionaires” don’t feel very rich.

Why? Much of this growth can be attributed to soaring home prices. Many boomers who have fully paid off their homes have seen massive increases in the value of their homes, and in turn, in their net worth. Even further, boomers are the first generation to rely on self-funded retirement accounts. Pensions aren’t factored into net worth the way 401ks and other retirement accounts are.

So, is becoming a millionaire still a good goal to have? Definitely! It’s a major milestone to shoot for, and growing a million-dollar net worth has never hurt anyone. Only 18% of Americans have a seven-figure net worth. Breaking that barrier is still impressive.

But should you stop there? Maybe not…

Let’s be real. A million dollars is a lot of money. But, it’s not as much as it used to be.

We’ve talked a lot on the pod and in the newsletter about just how different everyone’s retirement savings goal will be. While every year the new “magic retirement number” will make headlines across the internet ($1.26M for 2025), YOUR retirement number will depend on your desired retirement lifestyle, your annual expenses, and where you want to live in retirement (geographic arbitrage FTW!). For many people, $1M could easily be enough! For others, they may need to save even more to maintain their current lifestyle once their working days are done.

Becoming a millionaire still means something in 2025. But understandably, it doesn’t mean quite what it used to. And it makes sense that many HTM readers and listeners have net worth goals that surpass the $1M threshold!

Related - How Much Money Do You Need To Retire? 3 Different Strategies to Calculate

TOGETHER WITH YNAB*

Budgeting Simplified 💁

If you want to save more money in 2025 and don’t have a good budgeting system in place, you gotta check out YNAB.

Seriously, the average new user saves over $600 in the first 2 months using YNAB (and over $6k after one year)!

YNAB might be the game changer your finances need. And there’s no harm in trying them out because they have a 34 day free trial. After that, it’s $109 per year.

ICYMI

Noteworthy news…

HTM en Español 🗣️
Good news for our Spanish speaking money nerds! You can now listen to select How To Money Episodes en Español! Who knew that Matt and Joel were fluent in Spanish? 😂

Durability Decline ⬇️
Many folks feel like modern appliances just aren’t built to last like they used to be. And they’re not wrong. However, the evidence suggests only a minor decline in the durability of household appliances. What’s to blame? New efficiency standards for water and energy usage has forced manufacturers to change product designs.

Longer Term Unemployment 😩
The number of people continuing to collect unemployment after their first claim rose to 1.79M during the week of June 8-14th, marking the highest rate in 3.5 years. While the number of layoffs remain stable, Americans who lose their job are finding it harder to find a new position quickly.

The Endless Workday 🕰️
The rise of remote work has been great for many. But there are some downsides too. Microsoft uncovered some troubling statistics about just how much we (especially remote workers) struggle to disconnect from work. They found that the average employee sends 50+ messages daily outside of core business hours. That’s a lot!

Rental Car Ridiculousness 🚗
Hertz rolled out an AI damage scanner that can inspect rental cars for damage caused by customers. This has resulted in some customers receiving massive bills for minor damage that a human employee likely would not have charged for. Tip: Video your rental car before leaving the lot every. single. time.

COMMUNITY

Time of Use Electricity Plans ⚡️

@corttt_momma

Saved money is the best money 😒 #sahm #laundry #savedmoney #fyp

Did you know that many electricity companies offer “Time of Use" electricity plans? These plans offer lower rates to use electricity and appliances during off-peak hours. This means that you can score major discounts by using certain appliances, like your AC, laundry machine, dishwasher, and dryer, at times when energy is in lower demand.

Consider calling your energy provider to see if they offer these plans. Doing so could help you to shave some precious dollars off your electricity bill every month!

That’s all we’ve got for today folks! Stay 🆒 out there this week! ✌️

Best friends out! 🍻