The sun is rising, the birds are chirping, and it’s a Tuesday… you know what that means! 🙌

A quick reminder ‼️

Things that DO NOT define you:

• Your net worth 💸

• Your debt ⛓️

• Your job 👩‍💻

• Your material belongings 🚗

Things that DO define you:

• How you treat those around you 🤝

• Your passions 🎵

• Your values ❤️

• Your character 😊

Just a little something to keep at the forefront of your mind today.

Okay, let’s get talk money! 🤑

TO DO

Take Your Vacation Days! 🏝️

It’s no secret that Americans are notoriously bad at taking their vacations days. In fact, a study revealed that 62% of Americans are not using all of their PTO. On average, employees only use two thirds of their allotted vacation days!

That’s unacceptable in our book.

It can be easy to glorify hustle culture. But the truth is, by not taking adequate breaks from work, you’re more likely to get burned out and completely sidestep the many benefits of taking time off of work.

Beyond that, you may be losing money! While some employers are required to pay you for unused vacation time when you leave the company, others take a “use it or lose it” approach. These vacation days are part of your total compensation package. For every PTO day you don’t use, you’re working a day for free. Ouch. 😬

So before the summer is in full swing, make sure to put in some PTO for those valuable July and August weeks. The longer you wait, the more difficult it might be to snag those summer days off. Even if you don’t have a big trip planned, a staycation can still leave you feeling rested and refreshed! 🍹

SAVING MONEY

Buy This, NOT That! 👎

Julian is finally ready to get his money game together! He’s approaching 30, is crushing it in his career, and decides that it’s time to start “adulting” for real. So, he does what lots of folks do. He starts listening to the advice of those around him… 🥲

His friend mentions that leasing a car means your ride will always be covered under a warranty, so he passes up on the reliable used car for a shiny new SUV.

A radio ad mentions that life insurance policies are cheaper when you’re younger, so he buys a whole life insurance policy (even though he has no dependents).

His coworker tells him that he doubled his money by investing in crypto, so Julian dumps all of his extra cash into the latest meme coin.

And to top it all off, his parents tell him that renting is throwing money away, so he starts looking for a home even though he barely has emergency savings.

While Julian might mean well, he’s not actually making decisions that will help him out in the future.

So is Julian just bad at money? Should he cut up his credit cards, run away into woods and live out the rest of his life as a hermit!?

Believe it or not, Julian’s got some things going for him. He’s saving, investing for the future, and actively trying to make good choices. The money savvy behavior is there, but his choices are misguided. By making a few of these “buy this, not that” money swaps, Julian could completely turn his finances around.

👍Buy This: Index Funds/ETFs/Low Cost Mutual Funds

Think of these funds like purchasing a “pre packaged portfolio,” with hundreds (sometimes even thousands) of stocks within them! Choosing these types of investments is an easy way to keep your portfolio diversified, and it has the best track record of performing well over time. If you can invest for the long term (10+ years), you’re pretty much guaranteed to grow your wealth, making it a perfect way to invest for beginners.

👎Not That: Single Stocks/Crypto

While investing in your favorite company can be exciting, picking individual stocks can be time-consuming, complicated, and comes with much greater levels of risk. Plus, most stock pickers underperform the S&P 500.

Related - The Dangers of Investing in Single Stocks

👍Buy This: Term Life Insurance

Term Life Insurance lasts for a predetermined period, usually between 10-30 years. Your beneficiaries will only receive the death benefit payout if you die during that term. While this may sound like a drawback, the hope is that as you grow your wealth, you’re more able to self-insure. Term life insurance is often the cheapest available, allowing you to stash more of your extra cash into investment accounts, too.

👎Not That: Whole/Universal Life Insurance

Whole and Universal Life insurance may last a lifetime, but they come with much higher premiums. In addition, they set aside a tiny portion of your monthly premium into a cash value investment account. Unfortunately, these are often riddled with advisor fees and commissions. We generally don’t recommend mixing insurance and investment products.

👍Buy This: Used Cars

Buying a used car is almost always the best move if you need a new vehicle, because you’ll pay less overall, and your car won’t lose nearly as much value to depreciation. Plus, the annual cost to repair a used vehicle is less bad than you think. You can check out the average repair costs for different models on Consumer Reports.

👎Not That: New Cars

New cars take a major depreciation hit when you drive them off the lot. According to KBB, new cars lose around 30% of their value in the first 2 years of ownership. Let someone else take that hit for you!

Related - Buy This, Not That: Car Ownership Edition

👍Buy This: Rent A Home (For Now)

While you may have heard the phrase that “renting is throwing money away,” it’s truly not the case. When you rent, you’re trading that money for a place to live. Renting is currently cheaper than buying a home in all 50 of the largest metros in the US, meaning you can take those savings and invest them to grow your wealth for the future. While home ownership has many invaluable benefits for some, if you can’t afford a home right now, it’s best to rent for the time being and wait until you comfortably can.

👎Not That: Buy a Home

If you can’t afford a home right now, save up and be patient. One of the worst financial mistakes you can make is to overextend your finances by purchasing a home you can’t afford. Being house poor is a personal finance killer!

As you can see, getting a few of the big things right can make a huge difference in your bottom line. When in doubt, make sure to do your own research. Instead of taking financial advice from the people around you, look to trusted financial sources (like your favorite money podcast 😉).

TOGETHER WITH BETTERMENT*

Invest in globally diversified portfolios

Betterment makes it easy to invest globally—helping you stay steady, even when markets aren’t.

Learn more here!

HOUSING MARKET

The Tipping Scale of Home Buying ⚖️

After years of surging home prices, sidelining young buyers, potential home buyers are beginning to see some relief! According to Redfin, there are nearly 500,000 more homes on the market than those looking to purchase them. In fact, we haven’t seen this great a disparity (favoring buyers) since 2013! Because of this, Redfin and Zillow have both predicted that home prices will decline in the coming year.

Why the sudden surge of housing availability? With many folks priced out of the market, sketched out by economic uncertainty, or scared off by sky-high monthly housing costs, there are fewer buyers actively looking for new digs. On top of that, homeowners with locked-in low interest rates are finally capitulating and listing their homes for sale.

So what does this mean for you?

Looking to Buy: If you’re looking to buy a home, the scales are slowly tipping in your favor. Recent data found that in April, 44% of homes had been on the market for over 60 days. This means you’ll have more room to negotiate. Keep an eye out for price drops in the coming months - you may see those high-priced homes that have been sitting on the market for longer start to come down in price.

Looking to Sell: The imbalance of homes for sale vs. buyers is not in your favor, but that doesn’t mean that you can’t still sell your home and do well. Consider listing your home at a more competitive price point to attract more buyers. Up the curb appeal too. And don’t forget, although prices might not be at 2023 levels, if you’ve owned the home for many years, you’ve still done well for yourself!

At the end of the day, no one can predict the future. It’ll be interesting to see what happens in the coming months. It’s also worth noting that the housing market is “hyper-local.” Selling a home in Austin and Connecticut are two different beasts! Buying or selling a home in your community may require taking on more specialized research. 🧐

ICYMI

Let’s catch up…

Home Insurance Hangup 🔨
As a result of the increasing cost of homeowners’ insurance, more folks who own their homes are opting to forgo it altogether! A recent survey of 12,000 people found that approximately 7% of respondents were altogether uninsured. That’s too risky!

Secret Millionaires 🥸 
When we think about millionaires, most people imagine flashy watches, fast cars, and major inheritances. But the truth is that many millionaires live simply- it’s what helps them to maintain their wealth. Also fascinating, most of them are business owners!

Peak 65 ⛰️
In 2025, a record-breaking 4.2 million people will turn 65, ushering in a huge demographic shift in the U.S.! As these folks enter the 65+ community, we hope to see more money conversations about retirement and estate planning in the years to come.

Cheap Summer Getaways ✈️
Here’s a great look into why flight prices have been dropping from Physician On Fire, and a comprehensive guide for how to make the most of it this summer!

Sucky Sports Betting 🏈
Kyla Scanlan and Jon Cohen take a deep dive into the history of sports betting in America and discuss how the normalization of this pastime has “collapsed the distance between self-expression and market participation.” This one is a must-read!

FRUGAL VS. CHEAP

Would You Buy a Used Mattress?

A few weeks ago on the show, listener Buddy sent us a frugal or cheap idea, and we wanted to get your thoughts!

Buddy went to a reputable mattress store that he had shopped at in the past, looking to repurchase the same mattress he had bought in the past. The sales person let him know that they had a used mattress in the back (which had previously been on the showroom floor) for 50% off. Buddy’s question was simple. Would we purchase a used mattress to save some serious bucks?

Here are our quick answers:

Joel: FRUGAL (with a few reservations) - A younger Joel would have done anything to save a few bucks, but now he prioritizes good sleep. He would rather purchase a used higher-end mattress than a cheap, lumpy new one. But make sure you check out that return policy- you want to be able to take it back if there’s anything wrong with it!

Matt: FRUGAL - Matt slept on a super comfy used mattress for 10+ years, and now one of his kids has inherited it! The mattress could actually be broken in and even more comfortable. Plus, Matt sees a potential opportunity to practice your negotiation skills!

Get the full answer here!

Alright friends, that’s all the money talk we’ve got for today. If it’s sunny out where you are, remember to get outside and enjoy some of the natural beauty this world has to offer. It’s pretty much guaranteed to make your day about 10x better. ☀️

Best friends out 🍻