Good morning, beautiful people!! 🤩 

When a storm brews, cows 🐄 can sense it coming so they run in the opposite direction...

But the storm always catches up. Cows are constantly trying to outrun the storm.

Then there’s the buffalo... 🦬 Instead of running away, buffalos run into the storm.

They instinctively know that plowing head-first into storms will get them out the other side faster. It minimizes the amount of time, pain, and frustration they experience.

⚡️⚡️⚡️

We all face storms in life. As humans, our natural instinct is just like cows. We run away, delaying and extending the pain.

But, if we can muster up the courage and face our storms head-on, we can get through tough times quicker. There are sunny skies on the other side!

Just something to think about…. How will you face your next storm? Like a cow or a buffalo?

Alrighty, let’s get to the money stuff 👇👇👇

TO DO

Open up a HYSA 🫵

Dear cash hoarders: If you have lots of money sitting in a plain ol’ checking account with a big bank, you are losing money to inflation every day.

Don’t put it off anymore. Move your cash pile to a High Yield Savings Account, ASAP. There are tons of banks to choose from, many paying ~5% interest right now (our fav is CIT Platinum if you have over $5k).

Opening an account takes about 10 minutes. And once it’s open you’ll start earning ~$4.16 every month for each $1000 you keep in it. Do it 💪

FAMILY FINANCE

Rich Couples Work Together 💑

If tying the knot is on your 2024 agenda, congratulations! You’re probably working up a storm preparing for your big day, but budgeting for the wedding isn’t the only financial task you should prioritize before you hit the altar…

Getting “financially naked” is a super important step that will help strengthen your relationship and lessen your chances of di… (I’m not even gonna type that ugly word!)

This might be a great refresher for already-married couples, too! Here are things to regularly chat about with your significant other:

• Disclose debt and income- Apparently, 43% of people don’t know how much their spouses make!? Don’t be one of them. Knowing each other’s salaries (and debt obligations) will help you avoid unpleasant surprises and allow you to team up to crush income goals!

• Talk about your dreams- These dreams need to be financed somehow, so it’s crucial to chat about the role money plays in achieving what you want out of life.

• Discuss your values- At HTM, we’re all about spending on the things that bring you joy, and slashing expenses that don’t contribute to your happiness. Knowing your partners’ values lets you understand their money moves (and do more of them!).

• Decide if you’re going to combine your finances- We believe combining finances is a great way to establish trust. It eliminates any “my money” vs. “your money” arguments and makes it easier to pursue shared goals. Plus, stats show that couples who combine finances are happier. A ‘yours, mine, and ours’ approach can work well too.

• Set spending rules- Asking permission to buy a $5 coffee is silly. But setting a limit on big-ticket items or splurge categories can help curb money fights. For example, you could set a rule that you talk about purchases of over $150 before making them.

• Splitting expenses- If you aren’t going to combine your finances, decide ahead of time how you will split them. Revisit the plan regularly to make sure both parties are still 100% OK with things.

• Set financial goals- Shared goals can be attacked in 2 player mode, using both of your strengths. Nothing brings a couple together like getting a few money wins under their belt.

• Wills & beneficiaries- Beneficiaries for investments, insurance policies, wills, and all that boring grown-up stuff should be tackled sooner rather than later.

All in all, open (and regular) communication is the key to a financially healthy marriage. It’s best to discuss money voluntarily ahead of time, or else you’ll be forced to discuss it later under possibly tougher circumstances 😬

Related stuff:

• 👩‍💻 HTM Blog: Tips to get on the same page financially with your partner

• 📚 Book Rec: Smart Couples Finish Rich by David Bach (includes a few couples worksheets and exercises to get conversations started!)

TOGETHER WITH DAFFY*

Maximize Your Charitable Tax Deductions

In the past, donor-advised funds (DAFs) were largely only available to the ultra-wealthy, but Daffy is democratizing tax-efficient giving for the masses, so if you’re doing a lot of year-end giving and wondering how you can better op, give it a try.

Why we’re big fans of Daffy:

1. You can lower your tax bill with a deduction in the year you fund your DAF, and disburse funds to charities over a multi-year period.

2. You can make contributions using a variety of assets: long-term appreciated stocks, ETFs, mutual funds, or crypto, and avoid paying capital gains taxes.

3. You can “bunch” two or more years of charitable contributions to help you exceed the standard deduction.

4. You can easily schedule and adjust donations to all your favorite charities from one place.

5. You don’t have to deal with the hassle of tracking receipts from your donations.

Setting up a DAF with Daffy is EASY to set up, has NO MINIMUM contribution, and is FREE to get started.

So if you want to give more regularly and tax-efficiently, check out Daffy. They’ll even throw in a $25 bonus to get you started 😉.

DEBT

Credit Counseling Up 80% 😰

We got this chart from our friends at Money Management International. They’re one of the top non-profits that offer debt counseling services, free credit education, and help folks create repayment plans.

It’s kind of a sad story, actually... This chart shows national credit counseling sessions by month and age group. 👇👇👇

While a record-breaking number of people engaged in shopping over the Thanksgiving holiday weekend, MMI recorded a 44% YoY increase in folks seeking debt counseling services during that same week, with an 80% YoY increase on Cyber Monday.

Even worse, the average unsecured debt of those seeking counseling has also steadily increased from around $20,000 to almost $30,000 during the same timeframe.

A few thoughts and takeaways:

• If you’re struggling with debt, you are not alone! While it’s sad to see an increasing amount of people having debt issues, it’s great to see people seeking help!

• If you need counseling and haven’t reached out yet, it’s always better to do so sooner rather than later. Waiting might make things worse, lengthening the pain and recovery time.

• Beware of *for-profit* debt counseling companies out there that might charge you money to help. Some are even full-on scammers. Start with the big non-profit debt counseling firms (like MMI and NFCC) which are in a different league in terms of the help they can provide.

Support is incredibly important for folks with massive financial burdens that they can’t seem to claw their way out of themselves. If you know someone who might be suffering, help connect them with professionals who can help!

Related Stuff:

• 🎧 Podcast Ep#199: Where to Turn for Debt and Budget Help (Interview with Thomas Nitzsche from MMI)

• 👨‍💻 HTM MegaPost: How to Get Out of Debt

ICYMI

Newsy news news...

Fin Lit 🎓
Cool news in the education sector… More US states are introducing mandatory financial literacy classes for high schools. (But, it may take many years to start seeing any positive effects so if you have kids, keep teaching them to save/invest at home 😉)

Tax Penalties 😫
There are now higher penalties if you pay your taxes late... Two years ago if you underpaid your taxes, you paid a 3% penalty. But now you’ll be hit with an 8% penalty due. to increased interest rates. This mostly applies to self-employed individuals, but could also impact W-2 workers as well.

Housing Market 🏡
Zillow has just released its Housing Market Predictions for 2024. While it all kind of makes sense — keep in mind nobody has a crystal ball, so don’t take this stuff as gospel.

NYC Jobs 👩‍💻
New York might soon be the latest state to fully ban non-compete clauses. They will join 5 existing states (California, Colorado, Oklahoma, North Dakota, and Minnesota) that already ban them, allowing workers more flexibility to leave jobs and seek higher pay with competitors.

Costco Overload 🎧
Found this FASCINATING deep dive on Costco on the Acquired Podcast. It delves into the business secrets and methodology of why Costco is both a crowd favorite and an investor’s dream stock!

HOW *YOU* MONEY

Nick, 30y/o, New York 🗽 

Occupation & Salary: Auditorium Manager ($65,000) + Guitar Teacher ($15,000)

Paycheck deductions: About $200 per month for health insurance and about $1000 for taxes
Rent: $1450 in rent, split with my girlfriend. I pay $725.
Other Debts: Student Loans - $1,234
Living expenses: Utilities are included in rent, so really just food and entertainment costs, around $400-800 depending on the month

Leftover savings each month: Typically about $800-1200

How are you investing your excess savings each month?
I invest a large chunk of leftover savings each month into my Robinhood account. I have a brokerage and an IRA. I also just opened my 401k at work (with a match) so I will start investing in there as well.

Biggest “craft beer equivalent” splurge:
Definitely music gear! Guitar pedals, plugins and VSTs, and other music related purchases.

Best savings hack/advice:
One of my favorite ways to make my music purchases less expensive is to keep my gear in the best conditions possible. Then, when it's time for an upgrade, I can sell my older gear to cut down the cost of these purchases.

Biggest money challenge right now?
Saving for a home purchase within the next few years.

Recent money win and how did you celebrate?
This year I got my first job with benefits, including health insurance and a 401k. I think we celebrated by going out to dinner- something simple!

**Willing to share your story and help other readers? Fill out the HYM form to be featured! (Don’t worry, we won't publish anything without you approving it first)**

That’s it for now! Have a great week ahead and good luck running head first into that storm!!! ⛈️ 🦬

Best friends out! 🍻