Good morning, HTM family!

A small mindset hack to try this week: Ctrl + Alt + Del…

Control your mood
Alter your perspective
Delete the negativity

Keep this shortcut in mind for when sticky situations pop up and throw you off course… Just mentally hit Ctrl + Alt + Del, reboot, figure out a quick solution, and then move on with your awesome day. 😉

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

TO DO

Boost Your 401k Game ☝️

We love 401ks because they’re one of the best set-and-forget accounts to sock money away for retirement. Plus, deferring taxes means your nest egg grows faster!

This week: consider bumping up your 401k contribution percentage. Yes, it lowers your take-home pay, which stings at first — but as time rolls on you'll get used to living on a smaller amount and forget you're even saving more!

A little bit more now = a LOT more later. 💪

SAVING

How To Avoid Buying Stupid Stuff You’ll Regret Later… ⌚️

We've all been there — buying that trendy tech gadget, fancy designer item, or maybe jumping too quickly into an expensive new hobby… When the novelty wears off, you look back and wonder, "Why did I waste my money on this?!"

It’s not just small impulse buys… even well-calculated larger purchases (like buying an RV to travel the country) can end up leading to massive regrets.

How can you avoid this and be more mindful of every purchase?…

Try some of these tips and spending rules…

Set a “wait time” rule: The best tip to avoid regretful purchases is to sleep on it. Your mood has a big sway on spending decisions. Waiting just a bit can change the dynamics of your decision. For small stuff like Amazon buys, set a 24-hour waiting rule. Add things to your cart, log off, and then review the next day before purchasing. For larger purchases, stuff over $500, it can be helpful to set a 1-2 week waiting rule.

Reality check yourself: Ask yourself “what problem are you trying to fix?” This helps put the purchase into perspective and you might find you’re trying to solve a problem that doesn’t even exist. Also, it forces you to think up other (cheaper) solutions to solve the issue. (eg. If you want to get fit, buy a bike for $100. You don’t need a $1k Peloton.)

Ignore the money source: Sometimes, when we get an unexpected windfall (like an inheritance or big bonus check), we have an easier time spending that money because we didn’t have to sacrifice or work as hard for it. But, money is money no matter how it enters your life. Don’t let the source dictate whether you use it to pay off debt, invest, or spend.

Never EVER go into debt: This kind of goes without saying, but... Don’t ever buy stuff you can’t afford. The stress of debt and interest payments are rarely worth it.

Rent before you buy: You can borrow tools from a friend - or a local tool bank. You can rent almost anything these days too, which might save you big bucks, particularly on those larger items. Boats… rent them! RVs… rent them! If you fall in love with the thing you are renting and you’re 100% sure you want to own it, then buy it.

Continue reading the whole post —> How to avoid buying stupid stuff you’ll regret later.

TOGETHER WITH BETTERMENT*

With Cash Reserve, our high-yield cash account, you can rest assured your money will be putting in the elbow grease—earning 11x the national average**. Get started today.

REAL ESTATE

Mortgage Shopping 🏠

A recent LendingTree report shows the average borrower can save $76,410 over the life of their mortgage simply by shopping around. That’s $212 a month back in your pocket (although much more in states like California and Hawaii) for just a few extra hours of work. How motivating!

And where is the best place to shop for mortgages???

Here’s a cool chart from WSJ tracking average rates over the past ~18 months👇👇👇

Credit Unions for the win!! 🏆

Keep in mind…. Credit Unions don’t offer the widest variety of loan types. And they’re not always going to be the cheapest option or best fit for everyone. Still, you’d be doing yourself a disservice (and potentially costing yourself big bucks) if you didn’t get a quote from your local credit union.

But don’t stop there! Get a quote from a local bank and a mortgage broker too. It’s always worth getting multiple quotes from various lenders when buying a home. Don’t settle for the first person you speak to, or the lender your best friend recommends.

Put in the work to speak with at least three lenders and explore multiple products and scenarios. It doesn’t cost anything (except time) and could produce outsized benefits, saving you tens of thousands of dollars. We shop around for everything these days, don’t let your mortgage be the exception.

Related stuff:

• 🏡 Realtor.com: A State by State breakdown of average savings when shopping around mortgages.

• 💸 Early Payoff: Ways to Pay off Your Mortgage Early

• 🏘️ New HTM Blog: Pros/Cons of Buying within an HOA

ICYMI

In other news…

Miles to Miles 🔀
Found this cool “Wings of the Points” chart showing all the airline, hotel, and bank alliance partners for transferring different types of miles and points. Handy for those of you with random points out there that you might be able to consolidate!

Med Debt ⛑️
The Consumer Financial Protection Bureau announced a proposal to ban medical debt from credit reports! If passed, this would be awesome news for those with unjustly lowered credit scores.

Daily Grind 🚘
New research shows it’s taking commuters longer and longer to drive to work every day, especially those traveling 75+ miles. Some good news though — many folks are commuting less frequently, like 2-3 times a week instead of the old school 5 because of hybrid work-from-home jobs.

Companion Pass 💸
Our favorite airline just boosted its welcome offer for new credit card holders. You’ll snag 85k points instead of the typical 50k right now, making it easier to earn the much coveted Southwest Companion Pass! 🥳

CPI 📈
Latest reports show inflation held flat through May, with a steady 3.3% increase YoY. Don’t expect a return to pre-pandemic prices. But it’s ok to rejoice as inflation calms down!

HOW *YOU* MONEY

Devin, 39, Maastricht, Netherlands 🇳🇱

Occupation: Military
Salary: $160k (housing allowance included)

Paycheck deductions: ~$2,000
Housing: ~$3000 (rent + utilities + services)
Other Debts: n/a
Living expenses: ~$4,000

Leftover savings each month: ~$4,000 (paid first!)

How are you investing your excess savings each month?
Max out ROTH IRA in January for both wife and I. Contribute $2k each month to VUG, $1k each month to HYS, and $1k to a business venture fund. HYS is used as travel/hobby account when necessary.

Biggest “craft beer equivalent” splurge:
Specialty coffee and all the snobbish accoutrements

Best savings hack/advice:
Live like the “rank” you were 5 years ago, understand good vs bad debt, understand taxes, avoid weird financial instruments (NFTs, LIRPs, etc), and own a small business/side hustle.

Biggest money challenge right now?
I will be reassigned to a location that limits my ability to invest in real estate. I will likely continue to hold onto capital, which is discouraging.

Recent money win and how did you celebrate?
My job involves occasionally going to combat zones where my income for the month is untaxed. During these months, I change my entire paycheck distribution to my Roth 401k for 100% tax-free income and growth.

Anything else you want to share?
I would love to help champion this podcast to the broader military community. Too many servicemembers lack fundamental financial literacy and there are so many benefits not being capitalized upon. Keep up the solid work, and maybe look for some more military-oriented topics!

**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)

Cheers to a great week ahead — controlling what you can control, and making peace with the stuff you can’t. 💪

Best friends out! 🍻