Happy Tuesday, money nerds!

Stumbled across this poem recently by Devon Brough…

“Marriage is hard. Divorce is hard. Choose your hard.

Obesity is hard. Being fit is hard. Choose your hard.

Being in debt is hard. Being financially disciplined is hard. Choose your hard.

Communication is hard. Not communicating is hard. Choose your hard.

Life will never be easy. It will always be hard. But we can choose our hard. Pick wisely.”

******

Something to ponder this week: Your actions (or inactions) determine the type of life you’re building.

Life can be tough no matter what. So, you might as well pick the challenges you want to face — because if you don’t, other tough situations will come your way anyway.

OK, onto the money stuff!👇👇👇

TO DO

Ask Your Utility Provider for an Energy Audit… 💡

Did you know some utility providers offer free energy audits!? They can help review your bill and usage, or even send a technician out for a home assessment to tell you how to improve efficiency.

It’s worth a quick call to find out!

Another option is a Do-It-Youself energy checklist. While they’re not as thorough as a professional audit, they’ll help identify weak spots in your home that might be hiding in plain sight.

Saving energy = saving dollars. 💸

HOUSING

Negotiating Realtor Commissions 🏡

Realtors in the USA make a killing compared to other countries. Typical commission rates for selling a house are 5-6% of the sale price (whereas Australia and the UK are in the 2% range).

But thanks to some new industry rules effective Aug 17th, there’s a shake-up in how commissions are negotiated, particularly for buyers.

How things used to work:
Traditionally, realtor commissions were dictated by the seller (and usually paid for by the seller). They set the overall commission rate (usually 5-6%) and this amount was split between both the buyer and seller agents after closing.

How it works now:
Now the buyer and seller are each responsible for negotiating commissions directly with their particular agent. As a buyer, you and your agent come to an upfront agreement about exactly how much your agent should be compensated. You can either decide to pay them directly, or request to have the seller cover the costs.

As for the commission amount, it can be a flat fee, a percentage of the purchase price, or whatever you want to negotiate. The old model was fixed. The new model is much more fluid, allowing you the opportunity to negotiate meaningful concessions.

Adjusting to the new norm:
This new rule only just went into effect, so agents/buyers/sellers all over the country are still working out the smoothest process to make everyone happy.

But the good news is: there’s more space to negotiate commissions and fees and to lower the overall transaction cost of buying a house.

Simply scoring a 2% rate vs. 3% could mean saving ~$5,000 - $10,000! That aint no chump change!

Learn more here: Tips on negotiating realtor commissions 💪

TOGETHER WITH US MOBILE*

Try It, Love It 📲

US Mobile lets you try out their coverage and service for free for 30 days to see if they’re a good fit…

If not, no worries! They have no contracts, so you can switch back to your old carrier as if nothing happened.

But if all goes well, you’ll be thankful you switched because US Mobile has the cheapest unlimited plans available.

If you own your device and want to lower your bill, check out US Mobile. 💪

BANKING

Pesky ATM Fees 🏧

Bankrate just published its 2024 checking account and ATM fee study.

Here’s a chart showing how out-of-network ATM fees have risen over the years. 👇👇👇

Whether you use cash every day, or just hit the ATM for a quick $20 every now and then, it’s worth paying attention and planning ahead to eliminate dumb banking fees…

• Use your bank’s ATM network: Most online banks partner with huge ATM providers like Allpoint or MoneyPass. Check your bank’s website or mobile app to see which ATMs you can use for free.

• Switch banks?: If you’re constantly getting hit with junk fees for everyday tasks, maybe it’s time to switch banks. Credit unions are awesome, many of which reimburse out-of-network ATM fees. Some online banks also give credits to cover ATM charges (like CIT Bank reimburses $30 per month for ATM fees)

• Get cash back at the store: Most grocery stores let you withdraw extra cash if you pay with a debit card. But be careful, some will charge you extra!

We hate bank fees. But it’s up to us to pay attention to the fees we’re being charged and to change course in order to save. It’s our firm belief that banks should pay you for doing business with them. Not the other way around.

Related stuff:

• 💰 HTM Blog: 12 common financial fees and how to avoid them

• 📈 Bank vs. CUs: Rate comparisons for savings & loans in Q2 2024 (Credit Unions are the clear winner in pretty much every lending category)

ICYMI

Noteworthy news…

23 Roommates 👯‍♀️
Would you share a house with 23 other people for lower rent? Communal living apartments could be a good fit, especially for short-term (3-6 month) rental needs.

American Dream 🏡
A 2024 analysis from USA Today estimates the cost for an average family of 4 to live the “American Dream” is about ~$156,000 a year! 😳 (Our 2 cents: Rather than worrying about what other people’s dreams are, build your own personal goals —> then focus on ways to achieve them)

Chase “Glitch” 🏧
A system glitch at Chase Bank went viral last week, with people believing they could withdraw “free money” from ATMs. But as it turned out, the process involved depositing fake checks and committing fraud to access the cash. There’s no such thing as free money, folks!

AI Alexa 🔈
Would you pay $10/m subscription to have a “smarter version” of Alexa? (me neither 🤣). Funny thing — people actually prefer simple tasks for voice assistants vs. complex ones.

Streamlining 🤷‍♀️
A thought-provoking post by Money with Katie. She talks about how streamlining every single area of life may not always lead to increased happiness or fulfillment. At some point, optimization can become counterproductive.

Car Seats 🎯
Target’s next Car Seat Trade-In Event is Sep 15th —> 28th. You can bring any old car seat, any condition, brand, style, booster, or whatever, and trade it in for a 20% off Target Circle Bonus to buy baby gear in-store or online. Great for expecting parents and baby shower gifts!

HOW *YOU* MONEY

Graham, 40y/o, Atlanta, GA 🏙️

Occupation: Software Engineer
Salary: ~$200-215k

Paycheck deductions: ~$6,630 (Taxes: ~$4k, Retirement: ~$2,230, 529s: $400)
Housing: $1673.48 (mortgage + taxes and insurance)
Other Debts: None! CCs are paid off each month
Living expenses: $5-7k in a typical month

Leftover savings each month: Not always the same - Typically 2k to 4k.

How are you investing your excess savings each month?
I front-load my Roth contribution each year (yearly max), and make monthly contributions to a savings account across the 12 months so I can do it each year in January. I also make regular contributions to a Schwab robo-advisor account that automatically diversifies the investments that I use into a somewhat de-risked bulk savings account (I know Joel and Matt don't like this!!). I also try to keep at LEAST $1k buffer in my checking account based on expected outflows; to that end, I use Quicken for Mac which allows me to forecast scheduled and known payments over 30 days so I know what my checking balance will look like one month in the future.

Biggest “craft beer equivalent” splurge:
Entertainment! I enjoy NFL and MLS games and also regularly attend the Atlanta Symphony for date nights.

Best savings hack/advice:
Automate your finances! Have your paycheck auto-draft to various accounts so you don't need to do it manually and set your cards to autopay if at all possible.

Beyond that, take ownership of your career and skills (soft AND hard skills) to improve your value to any company. Don't be shy about wanting to earn more and always be open for an opportunity to provide a better life for you and your family.

Anything else you want to share?
Remember that you can only "spend less" so much. However, there is no ceiling to how much you can earn. Focus more on getting more inflows of cash than tightening down the outflows whenever possible!

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Wishing you all a great week ahead, doing what you do best 😉

Best friends out! 🍻