Good morning, HTM family!

A friend sent me this quote a few years ago, along with this great tip...

“What if, instead of thinking about solving your whole life, you just think about adding additional good things. One at a time. Just let your pile of good things grow.”
– Rainbow Rowell

One easy way to collect good things day to day is to create an email folder like this…

Then, every time you receive uplifting news, happy stories, or positive compliments/feedback you can file it away in this folder.

From there, just let your pile of good things grow. ✨😉

TO DO

Box IN ⬅️ = ➡️ Box OUT

Try this: Next time you get an Amazon delivery, don’t throw away that empty box…

Instead, walk around your house and fill the box with 5-10 items you no longer use or need. Then, go to your car and put the box in the trunk for a later Goodwill drop off.

New items in… old items out… It’s the easiest way to maintain a clutter free home. 📦💪

SAVING

Sinking Funds 101 📋

Sinking funds are the cousins of emergency funds.

They are buckets of money built up and set aside for large, predictable expenses within the next 1-2 years.

Why use sinking funds?
Saving gradually, little by little, is waaaay easier than having to navigate a huge expense or bill when it comes due.

For example, let’s say for Christmas 2025 you already anticipate spending ~$2,000 on gifts… Setting aside $170 each month means at the end of the year you can buy your gifts with cash, freely, without stress, debt, or dipping into your savings.

What type of things should I save for?
It depends on your individual needs or wants. Here are some popular sinking fund categories…

Where should I keep sinking fund money?
Just like your e-fund, you should keep these cash piles in a High Yield Savings Account, so that those dollars can grow interest while still being immediately available.

You don’t need to have 50 x separate accounts. You can pool the money together, just make sure you keep track of how much is earmarked for each expense.

The bottom line: If you’re constantly scrambling and stressed out by life’s large expenses, 2025 is the year to make a change. Start proactively saving well in advance for the big stuff you know is coming down the pike. “Future You” will be so thankful when it comes time to pay up!

Read more: All about Sinking Funds

TOGETHER WITH FACET*

Real Results Without the Headaches

Are you and your partner juggling complex financial decisions? Feeling overwhelmed by well-meaning advice that you can never seem to implement?

Facet gets it. Their team is not here to dump more information on your already full plate… Because knowledge without action is pointless! 😅

At Facet, they do the heavy lifting for you with comprehensive and dynamic financial planning that evolves with you, for a transparent flat annual fee. They’ll provide you with a clear roadmap and practical steps to help you take action on their advice and reach your goals. And with monthly check-ins to keep you accountable, you’ll never have to make a big financial decision alone.

Think of it as peace of mind without all the busywork. Because managing your money shouldn’t feel like another thing on your to-do list.

Head to facet.com/howtomoney today and book a free introductory call with their team to learn more about the best membership option for you.

*Disclosure: Joel and Matt are not members of Facet. They have an incentive to endorse Facet, as they receive cash compensation for introducing you to Facet. All opinions are their own and not a guarantee of a similar outcome.

STOCKS

Investing at All-Time Highs 😬

The stock market went on a rampage last year, constantly hitting all-time highs.

In situations like this it’s natural to wonder: Is it smart to invest when the market is so high? Should I wait for a downturn or correction?

For long term investors, the answer is simple: Keep investing as usual. All-time highs aren’t nearly as scary as people think…

Here’s why:

1) They’re quite common: Out of all trading days going back to 1950, all-time highs occur, on average, once every 14 days. It’s much less scary when you zoom out and think long-term.

2) Performance is still great!: If you only invested on all-time high days, you will still make decent returns over the long haul! Here’s a chart showing average returns over the past 25 years. Investing at the highest points doesn’t wreck your finances nearly as much as you think it will (as long as you don’t sell).

3) Waiting is stressful: OK, let’s say you do hold off investing for a while… When are you going to start up again? How much of a correction do you wait for before buying? And what if the market just keeps going up all through 2025?

Changing strategies, following the news, trying to forecast and predict the market, etc. is all very stressful. It’s much easier to just 👏 keep 👏 buying 👏.

Remember, waiting for the "perfect" time to invest often results in missed opportunities.

Historically, all-time highs are followed by more all-time highs. Just keep investing.

More stuff:

• 📚 Book Rec: Just Keep Buying, by Nick Maggiulli

• 👨‍💻 Historical Data: Nerdy charts and facts about all time highs.

• 🤷‍♂️ Portfolio Advice: If you’re retiring soon or have a unique situation you’d like to run by a professional, check out Nectarine — a pay-per-hour investment advice service.

ICYMI

Noteworthy news…

Roth 401k 🥇
Apparently 90% of 401k plans now offer Roth contributions. Woohoo! For all you W2 workers it’s worth double checking your plan options to see whether a Roth 401k makes sense vs. traditional!

Think Again 📈
Great post from Charlie Bilello: Put These Charts on Your Wall. He highlights a slew of cognitive biases investors have, and uses charts to refute them.

Girl Power 👯‍♀️
Experts say women find it easier to learn about money from other women. For all you ladies out there, sharing what you know with friends is super powerful — we need more female personal finance influencers.

1 Page Plan 📝
Sharing a quick printable 1 Page Financial Plan for 2025 made by Kate Horrell. The new year is a great time to think big about goals — actually this mHTM oney mission statement checklist is full of great questions to ponder too!

Math 🙅‍♂️
Don’t Forget the Personal Side of Financial Decisions, via Can I Retire Yet?... “Although I’m a math nerd, I try to keep the focus on the decisions clients and I make together about happiness. One of these choices is more optimal mathematically, but which do you think will make you more happy or less stressed?”

ASK HTM

“What are the best self-employed retirement accounts?” 🤷‍♂️

The short answer: A Solo 401k works best for most 1099 folks or small business owners with no full-time employees. This is what we both have here at HTM!

They’re also not that hard to set up. Fidelity, Schwab, and ETrade offer solid Solo 401k options.

If you have full time employees, SEP IRA’s are worth looking into. Or, you could start a full fledged 401k program for everyone with a inexpensive benefits providers like Betterment or Human Interest.

That’s the short answer. Here’s the longer one!

Welp, that’s it for now! Cheers to a great week ahead, collecting and growing your pile of good things 😉

Best friends out! 🍻