Happy Tuesday, friends!

Fill in the blanks...

1. This week I will save money on _______...

2. But being frugal allows me to splurge on _______, which I love!

3. When my paycheck lands on _______ day, a portion will be auto-transferred into my ______ account.

4. I invest my money in _______, because building passive income is important to me.

5. Financial freedom means _______ to me, and nobody is gonna get in my way of achieving that.

OK, now let's put these words into action. 👇👇👇

TO DO

Search For Missing Money

About 1 in 10 Americans have unclaimed property aka "missing money" floating around out there that they don't know about.

Head on over to MissingMoney.com, a free site that helps you search the databases across all states and provinces to find unclaimed funds. We recommend checking this site every so often, as new properties are added every day!

Ps. bonus points if you search for your friends/family members too! Helping others find lost money is 🏆💪🙌

CREDIT CARDS

Are Reward Points Actually Worth It? 💳

We talk about taking advantage of cc points all the time -- but we rarely discuss how WE can get taken advantage of sometimes.

Lest not forget, banks are in the business of making money. For all the rewards and cash back they give people, they are charging that money back *and more* from other people.

Most people apply for credit cards with good intentions, but might end up paying more than the rewards they think they're accumulating. Here are some scenarios to watch out for:

1) Not paying the full balance each month (obvi!): If you don't pay the full statement balance, you're likely paying interest in the range of 20-25%!! This racks up quickly and eclipses any rewards you might be getting.

2) High annual fees: If you gain $20 in rewards each month, but pay $295 for the card annually, you're actually underwater! A good practice is to annually review your cards, figure out which ones are worth keeping. (pro tip: Instead of cancelling them, call the cc company and ask to migrate to a lower tier card with no annual fee)

3) Letting points/rewards expire: If you earn a bunch of rewards, but never actually use them, what's the point?

4) Rewards that encourage shopping more: Many credit card rewards are designed to make you buy things. And although some of it might be "free" or discounted, usually it leads to spending more than you usually would in the first place. (For example, getting a 90% discount on a pair of cowboy boots... You might be thinking, "woohoo, I got a massive discount reward!". But the reality is you spent more than you typically would because you never needed or wear cowboy boots!!!)

5) Low interest (at the beginning): Balance transfer cards and 0% APR cards are great when you first get them. But when the rates change, boom! You're hit with massive fees that end up costing more than just tackling your debt properly in the first place.

All in all, credit cards are a blessing and a curse. Sadly, more people are on the curse side than the blessing side. Be careful you are not one of them!

Related:

• 💻 The Vox Post: Your CC points might not be worth it

• 🧑‍💻 What's in Our Wallet? Here are the CC's Joel and Matt use personally!

TOGETHER WITH CIT BANK

Boom! You can now get a 4% return on your emergency fund... just by switching to CIT Bank.

Other reasons we love CIT Savings Accounts:- No monthly fees, no set up fees- Only $100 min to open- FDIC insured- Manage everything from the CIT mobile app!

Side note: CIT's Savings Connect account has a max of 6 transactions each month (most HYSA's have transaction limits). The way we get around this is by having a connected checking account for any constant money movement, and just keep the money that rarely moves in the high APY acct.

INVESTING

The TRIPLE Tax-Advantage of HSAs

401(k)s and IRAs are awesome because you pay no income tax on the money you put in. But, you pay taxes when you withdraw money later.

Roth accounts are awesome because you pay no tax on growth or when you withdraw money. But, all the dollars you contribute today are taxed.

HSAs... They are in a whole class of their own.

There are 3 main tax benefits for HSA's:

1) No tax going in: For work sponsored plans, HSA contributions are deducted from your paycheck, pre-tax! For self directed HSA's you can deduct contributions in your tax filing.

2) No tax on growth: Interest, dividends and growth all remain within your HSA account, compounding without taxation.

3) No tax going out: When you withdraw funds for qualified medical expenses, you pay no tax.

You might be wondering... What if I save up too much money in my HSA and have no medical expenses to deduct? Well, in that scenario, at age 65 your HSA is treated just like a traditional IRA. You'll be taxed on withdrawals, but pay no penalty or fees. Another option -- at age 65 you can use your HSA money to pay for medicare premiums, deductibles, copays and coinsurance.

More stuff on HSAs:

• 👨‍💻 HTM Blog: HSA overview, eligibility, 2023 limits.

• 📝 Mad FIentist: Saving medical receipts & delaying reimbursement

ICYMI

Other stuff happening in the world...

12 Cents 🌭Sam's Club just reduced the price of their hotdog + soda combo from $1.50 down to $1.38. A saving of 12 cents... So what? (BTW -- their food court is available to both members and non-members 😉)

Pet Boom 🐕‍🦺According to new BLS data, US households are spending double the amount on pets compared to 10 years ago. This is partly because of the pandemic pet boom, and partly because pet services (like vets) are being scooped up by private equity firms. 🤔

Min Wage 🎯Target just announced they are raising their minimum wage to $24 an hour in certain locations. (it's already at $15 nationwide). This shows just how competitive the labor market is - especially in that lower-tier range. In addition to that pay bump, Target has decreased the # of hours that employees need to work to be eligible for health benefits down to 25 a week!

Bank of Mom & Dad 👨‍👩‍👦A recent Credit Karma report revealed that about 1/3rd of parents with adult children are providing them financial support (and in many cases jeopardizing their own retirement as a result). It's never been more important to teach your kids about saving/investing and becoming self sufficient!

FRIENDS OF HTM

Beth Moncel of Budget Bytes

Before Beth was a food blogger, she was a microbiologist with a degree in nutritional science.

Now, she has a massively popular site called Budget Bytes where you can find simple, delicious recipes that are designed for folks with small budgets. Beth's passion in life is to help others realize that good tasting food doesn't have to be complicated, or expensive!

Food is one of the biggest expense categories for most households (after housing/transport), so why not try and learn some new cooking hacks this year to cut down your food bills -- and make some good eats while you're at it. Check out Beth's blog, Insta and cookbook!

That's all for now, folks. Wishing you a mega productive week ahead, followed by a weekend of well deserved relaxing. Catch you next week!

Best friends out 🍻