Happy Tuesday, happy people!

Apparently… if you put a baby shark 🦈 into a small fish tank, it will only grow to about 8 inches long.

But put a baby shark in the ocean, it’ll grow up to 8 feet long, or more!

Sharks grow to the size of their environment. And, humans are kind of the same…

So if you want to grow bigger (emotionally, mentally, socially) you have to expand the size of your tank! This means…

• Talk to new/interesting people

• Ask deeper questions

• Travel outside your regular zones

• Be open to different perspectives

• Learn more!

• Pick up new skills or hobbies

Get out of your small tank — you can grow so much bigger!

OK, now let’s get to the money stuff! 👇👇👇

TO DO

Hit Up Your Local Thrift Shop 🛍️

As the summer garage sales start to wind down, families start to drop off all sorts of goodies at local thrift stores. It’s the best season to go shopping!

This week: Get your thrift on! Other people’s declutter = your new home decor! (Bonus points if you donate a few old items you don’t need anymore, too. One item in, one item out!)

MINDSET

7 Best Paydays in the World 🥳

Every paycheck is a good paycheck.

BUT… sometimes there are those extra special days when paychecks *feel* better than usual. It’s not about the dollar amount, it’s more the time and place that makes it special…

So, here is our countdown of the top 7 paydays one might experience…

#7: Finding free money 🤑
Whether it’s on the ground or something you dug up from missing money, getting unexpected cash is always a fun feeling.

#6: A payday while you’re on vacation 🏝️
When it’s your day off or you’re out on holiday, getting money deposited into your account while you’re not working is awesome! (And it’s a preview into how life feels like when you’ve achieved financial freedom)

#5: Getting a big tip or bonus check 💵
Those in the service industry can relate — when a customer says thank you with an unexpected cash bonus it really makes your day! Money + feeling valued are always a win/win.

#4: Making your first $1 from a side hustle 💪
Trying new hustles or starting a business is always nerve-wracking. But when that first customer or paycheck lands, it’s so empowering. It’s proof that your hard work is actually paying off!

#3: That first rent check from an investment property 🏡
I will never forget my first tenant, who moved in and paid me a full month’s rent for the first time. I was like “Ooooh, this is what it feels like!!!” Starting a rental business is a huge accomplishment.

#2: Your last & final debt payment 🥳
OK, so this one’s not an incoming paycheck, but the feeling is just as great (or arguably greater!). Getting out of debt is a long and emotional journey, and making that final debt payment is the feeling of pure FREEDOM.

#1: Your first 100% passive paycheck in retirement 🏁
Retiring is both scary and exhilarating. Nerve-racking because you’ve just left your job and there are no more paychecks coming from an employer… But exciting because you no longer rely on anyone for money. Passive paychecks mean you control 100% of your time!

Paychecks aside, we’re actually really big fans of celebrating any type of money wins in life… Big money milestones are good, but it’s also really important to acknowledge and enjoy the small (and seemingly insignificant) events too.

So here are two quick takeaways:

1) Celebrate regularly. Paychecks, debt payments, savings, windfalls etc. Any progress forward in life is a win. The journey is long so enjoy every step.

2) Share wins with others. Money is still a taboo topic, but it shouldn’t be. We’re not saying you should go out bragging about every money win… It’s more about involving others in your celebrations so that conversations are able to blossom.

Soooooo… what are you celebrating right now (and who are you sharing it with?)

Related stuff:

• 🎧 Pod Ep#129: Becoming Financially Optimistic

• 🕹️ Level Up: How to Gamify Your Finances 

• 💻 HTM Blog: Creating a Debt Payoff Plan

TOGETHER WITH CAPITALIZE*

Your Old 401(k) —> New IRA 💪

Did you know... 20% of 401(k) accounts get lost or forgotten!?!? It’s because people change jobs so often these days, they leave a trail of small 401(k) accounts in their wake and then forget about them over time.

But thanks to our buddies at Capitalize, rolling over and consolidating old 401k accounts is a breeze! They help you find old accounts, choose a new (or existing) IRA, and then manage the rollover process!

Better yet, it’s all a free service because they get paid by the IRA providers!

So if you have an old 401(k) and you're not sure it's 100% working for you, check out Capitalize. Clean up your financial profile and save money on all those rando 401k fees!

INVESTING

The “Average Investor” Returns

This chart is an oldie but goodie by JP Morgan.

It shows various asset classes and portfolio mixes and their average returns over a recent 20-year period… 👇👇👇

First, look at the column in GREEN. This is the S&P 500, and the average return shows 9.5% each year over that 20-year period.

Now check out the ORANGE column. This is the average investor return, which is a paltry 3.6% over that same period. 🤯

(Just to give you an idea of what this means in dollars — If someone invested $10,000 into the S&P500 for those 20 years, they’d have $61,416 at the end. Instead, average investors only ended up with $20,285. Less than a third!)

This is why we recommend broad, low-cost index funds (and that’s what we invest in, personally!) But we also want you to set it and forget it. As Vanguard founder Jack Bogle said, “Buy right. Hold tight. Don’t peek.”

If you try and outsmart the market, if you’re constantly tweaking your asset allocation based on “expert” insights and the 24-hour news cycle, you’re bound to underperform.

Related stuff:

• 💻 HTM Blog: 6 Reasons most people lose money in the stock market

• 🙋‍♂️ Getting Started: How to Start Investing for Beginners

• 📈 Index Funds: The Little Book of Common Sense Investing (written by Vanguard’s founder, the godfather of index funds)

ICYMI

Newsy news news…

Bachelor’s 🧑‍🎓
Here are the fastest-growing (and shrinking) undergraduate degrees in the US over the last 10 years. Surprise surprise computer science tops the list, but healthcare and engineering are booming too.

Less > More 🛒
This is a great read from the Atlantic about how fewer choices at the grocery store make for a more pleasant shopping experience (as opposed to stores that offer 100 different options/brands for each food category). This could be why Aldi and Trader Joe’s have such loyal shoppers — less choice actually makes that grocery store run easier!

Lab 💎💍
An increasing number of folks are choosing lab-grown diamonds for engagement rings and jewelry — a change we fully support!!! Prices can be as much as 85% cheaper for the same carat/weight/grade as natural diamonds. If you’re in the market, check out lab-grown options!

Privacy 📲
Just a reminder to double-check your Venmo privacy settings, and other payment apps you have on your phone. Some money apps are built like social media platforms, which can publicly share your contact list and transaction activity. Stay private, stay protected.

ARMs 🏠🙅‍♂️
Adjustable Rate Mortgages (ARMs) usually grow in popularity when fixed-term mortgage rates get higher. But right now ARMs aren’t that attractive, because the savings are so small compared to the higher risk. If you’re buying a home right now, a better strategy is to fix interest for 30 years, and then refi if/when rates come back down.

HOW *YOU* MONEY

Alex, 29, Doylestown, PA 🍂

Occupation: Accountant
Salary: $80,000

Paycheck deductions: Taxes: $1,329.42 HSA: $296.16 Insurance: $37.86 Roth 401k: $361.04
Mortgage: In total the cost is $2,025, but I don't live alone, so I pay $1,012 total each month
Other Debts: Student Loan: $243 (my job gives me $125/month towards it otherwise I would just pay it off)
Living expenses: ~$1,296

Leftover savings each month: $1,851

How do you invest your excess savings each month?
Roth IRA: $541, Broker Acct: $416, Real Estate investing: $500, Fun Money: $394

Biggest “craft beer equivalent” splurge:
Buying and modifying cars and motorcycles or gift-giving

Best savings hack/advice:
Set up any pay raise or bonus to just be invested. It removes the temptation to go and inflate my lifestyle since I don't feel like I am making any more money than in previous years.

Biggest money challenge right now?
Learning to spend on my craft beer equivalent and other things that bring joy into my life instead of saving / investing. I am more likely to get a family member or someone close to me a gift than to treat myself. My love language is also gift-giving.

Recent money win and how did you celebrate?
I sold an investment property that I renovated. It provided rental income for 2 years and the net profit was double what I put into it.

**Editor’s note: Have you got a story that might help or inspire others? Fill out the form to be featured! (We won't publish anything you don't approve first)**

Welp, that’s it for now. Cheers for reading and don’t forget to expand your fish tank this week ;)

Best friends out! 🍻

Ps. If you’re a long-term thinker and like reading about the stock market, you’ll enjoy Brian Feroldi’s newsletter, Long Term Mindset. Comes out 3x per week and is good food for thought! 🧠