Goooooooood morning campers! 🗣️📣

Just a quick reminder…

• Cooking at home instead of grabbing takeout is a money win. 💪

• Borrowing a tool from a neighbor instead of buying one is a money win. 🏆

• Snagging a coupon and saving 20% on a new pair of shoes is a money win. 🥇

• Updating your budget at the end of the month? Yup, that’s also a money win! 🙌

Not every personal finance win is going to feel monumental, like snagging a huge raise or paying off all your credit card debt. But, remember that those boring money wins are just as important. It’s all part of the journey to financial independence!

Okay, let’s get into it 💰💰💰

TO DO

Take a FREE personal finance class! 🆓

My dad used to always say, “there’s so such thing as a free lunch.” But, the older I get, the more I’ve realized that there are a few exceptions to this rule…

Purdue University and Fidelity have partnered to teach financial literacy courses for FREE this Summer!

Their virtual classes feature topics like retirement planning, investing for beginners, social security, budgeting, and more. While the May webinars have already passed, there are tons of courses you can still sign up for through the end of August. Full registration details can be found here!

While you’re at it, take advantage of other cool freebies just waiting to be enjoyed!

SAVING MONEY

The High Cost of Convenience 😬

We’ve all been there-

You get out of work late and have about 4,524 things you need to accomplish before the end of the day. So, you stop and grab a pizza on the way home. Tasty, and time saving! 🍕

Everyone benefits from a convenience purchase now and then. But when that time-saving treat turns into a weeknight regular, convenience could be costing you more than just your money… 😬

But first, let’s talk about the money side. Convenience services are proliferating at light speed right now. It’s no secret that these time-saving services come at a premium. For example, the average fast food meal out costs about $11.56, and a restaurant takeaway meal can easily cost you between $15-25. Meanwhile, the average home-cooked meal will run you about $4.23. But takeout isn’t the entire story…

Here’s a closer look at just how much convenience services are costing you:

• 🧺Wash and Fold Laundry Service: About $20-50 per load

• 🏡Lawn Service: $100-410 per month of maintenance

• 🚗Door Dash Fees: $1.99-5.99 per delivery PLUS TIP (+ higher food costs)

• 🥦Pre-cut veggies: Often double the price of their uncut counterparts

• 🧹Home cleaning: About $174 per visit

• 📺 Streaming Services: Around $69 per month

• 🛒Grocery Delivery: About $4-15 in fees, plus tip for your driver

• 💳 BNPL: Any late fees, can potentially hurt your credit

• ⚡️ One-click buy: Whatever your impulse buys add up to 😬

The financial cost alone can be staggering to grapple with. But here’s the thing: these services aren’t just costing you money. Spending too much on convenience purchases can hurt you in other ways. Allow me to explain…

1. It robs you of meaningful experiences and interactions - Getting food out used to mean walking into a restaurant, taking in the decor, smelling the delicious food being prepared, and connecting with both restaurant staff and your loved ones. Now, the food shows up in a plastic container and is left outside your door. It’s become a sanitized, lonely experience. Bummer.

2. Removes a sense of pride and accomplishment- There’s a certain amount of pride you feel when you save up for months to make a big purchase. I’m not sure it feels as rewarding if you make that same purchase with BNPL before you’ve actually got the cash in hand…

3. Hard work feels harder- If you’re used to cooking every night, takeout feels like a treat! If you’re used to takeout every night, cooking feels like a chore. Long story short, consistently using convenience apps makes us a little more lazy as our hard work muscles start to atrophy.

4. We feel guilty- When we splurge on these conveniences, we’re often left with a spending hangover that won’t quit. It’s not just the money missing from our bank account, the guilt we feel can completely suck the joy out of a purchase that was supposed to make our day better.

5. We aren’t really filling that time with something meaningful- Sure, you can do a lot with an hour or two saved. But are you just spending it watching more Netflix? It’s worth considering how we spend the time we’re able to claw back.

We’re not pointing all of this out to shame you or to make you feel like a loser. Quite the contrary, actually. We want you to feel happy and fulfilled! So, how can you say no to these conveniences without feeling stressed on your busiest days?

🫡Plan ahead for crazy days - You can’t predict all of life’s insanity, but you can predict some of it. If you have a packed day ahead, stock your freezer with easy-to-make meals, or try out one of these no-cook recipes. You could even give meal prepping a try on your days off!

🧑‍🧑‍🧒‍🧒Delegate - If you live with family members, congratulations! You’ve got a few people around who can lend a helping hand. Chores are finished more quickly and feel more enjoyable when done together. Don’t be afraid to ask for help from those around you!

Remember, once upon a time, folks used to have as many kids as possible to help out with the farm work. Your little ones have it easy. Put them to work! 😉

☺️Figure out what’s worth it- If you know you absolutely HATE mowing the lawn or shopping for groceries, splurging on one convenience purchase could be worth it when done intentionally. It’s the headlong slide into convenience culture for everything we want you to avoid.

🍷Make it meaningful- Don’t feel like cooking? Can you swap out a night of takeout for a date night? Turn it into an opportunity to connect with your community? Life feels longer when you introduce more novelty. Instead of rapid-fire smartphone food orders, slow down and enjoy those splurges. This can help eliminate some of that guilt!

Convenience can be…convenient! DUH! But partaking in convenience culture can be a slippery slope. Be sure to create a slush fund in your budget to cover you on those chaotic, hard-to-plan-for days when paying for convenience feels like a necessity. But the more we make convenience habitual, the fewer dollars we’ll have for other goals.

P.S. - This topic was inspired by Kyla Scanlon’s recent newsletter from May 21st, “Economic Lessons from The Screwtape Letters.” Make sure to check it out!

TOGETHER WITH BETTERMENT*

Invest for long-term growth

Invest with Betterment and spend more time living while they manage your globally diversified, tax-smart portfolio built to handle market swings.

Learn more here!

RETIREMENT

Retirement Magic Number 🪄

In their annual Planning and Progress study for 2025, Northwestern Mutual reported that the new “magic number” that Americans think they will need for retirement is $1.26M, down about $200k from last year’s number.

In uplifting news, this report also revealed that younger folks have started to save for retirement earlier, and hope to retire earlier as well. Gen Z-ers, on average, have started to save for retirement at age 24 and aim to retire by 61. Let’s go Gen Z! 💪

Unfortunately, not all adults have the same confidence. A majority of Gen X respondents believe they will not be prepared to retire at all.

But here’s the thing. There is no “magic number” when it comes to retirement. And while headline numbers like this can give you a general idea of what to shoot for, the truth is far more individualized. You may need to save more or less than that number.

It’s impossible to put a “one size fits all” stamp on retirement, because how we plan to live in retirement will have a massive impact on what we’ll need to have stashed away. For example, if you plan to jet set around the world in your golden years, you’ll likely need more money saved up than someone who’s content to live a more frugal lifestyle.

Additionally, where you live will have a major impact on what that retirement nest egg will need to look like. The cost of living can swing wildly depending on where you decide to settle down.

So, when you see headlines like this, try not to panic. Instead, crunch the numbers for yourself to get a better idea of what YOU need. Here’s a quick and simple way to come up with your own retirement number…

The 4% Rule 🤓 

Using the 4% rule, you’ll need to aim to save up 25 times your annual expenses if you’d like to maintain your current lifestyle in retirement. From there, you can safely withdraw 4% every year (and every following year adjusted for inflation), and you’ll have a 95% chance of that money lasting you for a full 30-year retirement!

For example, if Linda’s annual expenses are $40,000, she should aim to have $1M saved up in retirement accounts by the time she’s ready to quit work.

The 4% rule is helpful because it’s not age-dependent, and it can be adjusted based on your expected annual expenses in retirement. And you can adjust your plans if you make major life changes. Planning on moving to a cheaper state in retirement? You can afford to retire with a smaller savings stash. Want to include weekly spa visits and country club memberships? You’ll want to beef that number up!

The Bottom Line:

It’s easy to get caught up in the hype and stress out over a theoretical number yanked from the headlines, but it’s important to remember that personal finance is personal. You need to crunch the numbers for yourself. Plus, frugality and flexibility go a long way in helping you both financially and mentally.

Finding your own personal retirement number puts you in control. If you’re worried about being able to save up that $1M+ nest egg, there are tons of lifestyle adjustments you can make before then to ensure that your money will stretch as far as you need it to. Don’t get overwhelmed- break it down step by step!

P.S. - Don’t love the 4% rule? Here are 2 other ways to calculate how much money you will need to retire!

ICYMI

Let’s catch up…

Gas Station Gouging ⛽️
It’s typical for gas stations to charge customers more for paying with a credit card (due to cards eating away at profits), but some gas station owners in FL are taking it to a new extreme. Yahoo! Finance reports that some gas stations are charging up to $1 more per gallon at the pump if you pay with plastic. Avoid these stations! And consider using an app like GasBuddy to compare prices before filling up.

Dropping Home Prices? 🏡
Yet another housing giant has predicted a decrease in home prices for 2025. Redfin announced that they expect a 1% drop in home prices for 2025. With the number of homes for sale up by 20% this year, this could indicate improving conditions for prospective buyers.

Remote Work For Retirement Age Workers 💻
Despite many companies instituting back to the office mandates, remote work has become more common over the past few years for workers approaching retirement age. The Center for Retirement Research at Boston College suggests that this could be a good way for retirement-aged folks to extend their careers if so inclined.

Self Driving Cars 🚘
Uber announced a new partnership with Volkswagen to launch shared autonomous rides in 2026! The new initiative will launch in Los Angeles with plans to expand to multiple US cities over the coming decade.

HOW YOU MONEY

Ben & Emma; 28, Lenexa, KS

Occupation: JIT Project Manager and Full-Time Mom
Salary:$125,000

Paycheck deductions: Total = $1,463.20 (Insurance and HSA - $525.00, Taxes - $665.93, Roth 401k $278.55)
Housing: Mortgage Total = $2,174.93 (including 488.57 tax & insurance)
Other Debts: Student loans $200/m, car loan $200/m = total $400/m
Living expenses: $3,300

Leftover savings each month: $1,400

How are you investing your excess savings each month?
It is all going into an HYSA with Sofi as we work on rebuilding an emergency fund after some very poor car luck last year.

Biggest “craft beer equivalent” splurge:
Shoes - I like to have unique shoes and nerd-out on the tech which raises the price tag!

Best savings hack/advice:
Emma and I each have our own individual "fun money" buckets (or Vaults as Sofi calls them) for spending one whatever we would like. To fund these, we allocate $25/m per person, the interest we gain each month in our HYSA (additional incentive to save!), and anything that we sell online of our own that we have decided to get rid of (selling on Facebook Marketplace would be a whole separate hack but just know I highly recommend it to save as well as recoup costs on things you don't need)

Biggest money challenge right now?
We intentionally decided that Emma would stay at home with the kids for this season of life and do not regret it one bit, but going to a single income definitely slows down our financial goals at the expense of our life goals and sometimes it can be difficult to stay patient and disciplined in making those financial goals a reality.

Recent money win and how did you celebrate?
I recently got a bonus at work and we hired a babysitter and went to a nice dinner.

Anything else you want to share?
Remember that money is not a game to be won or a value in and of itself. It is one of many tools that can help create a life for you and those around you that is full of love and happiness. But, it can easily create a life of obsession, shame, and worry if you do not practice generosity and joy with it.

**Editors note: Want 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)

Peace out, beaches! 🏝️

Best friends out 🍻