Happy Tuesday, happy people!!

Repeat after me…

1. I am good at what I do.

2. I may screw up some times… but for the most part, I am good at what I do.

3. My clients enjoy working with me because —> I’m good at what I do.

4. My coworkers depend on me and look up to me because —> I’m good at what I do!

5. And I will continue to get better, because I am always learning and improving how I do what I do, when I do it, and why I do it. 😅

Walk with confidence today, peeps... You are better than you think.

OK, on to the money stuff! 👇👇👇

TO DO

Disinfect Your Purse, Wallet, & Credit Cards!

Did you know about 1 in every 12 bank cards has traces of poop on it!?!? 💩🤮

It’s time to grab some hand sanitizer and wipe down your wallet, purse, credit cards, and any cash in there. Also, many cashiers have bottles of sanitizer at the register these days — use ‘em!

SAVING

Limiting Spending Spirals

James Clear recently wrote about the Diderot Effect. It’s basically when you upgrade one thing in your life and then suddenly feel more temped to upgrade other things in your life that start to look outdated.

For example, if you get a brand new shiny flat-screen TV, suddenly all the other stuff in your living room feels “old”. You think about a new couch, speakers, or even some new fancy table coasters (even though you never use coasters). While none of the upgrades are necessary, the temptation to spend can become contagious, all stemming from one seemingly minor new purchase.

If this sounds like you, here are some things you can do to manage that spending itch:

• Stick to a list: If you’re picking up a new TV, it does you no good to wander around the home entertainment department for 30 minutes. The longer you look at all the stuff not on your list, the more likely you are to make impulse buys.

• Match your current stuff: Buying a bright red vintage tea kettle (as gorgeous as it may be) might look out of place and trigger unnecessary upgrades to other kitchen items. Instead, just get a basic stainless kettle that matches your old stuff.

• Set a 30-day freeze rule: For example, after buying that new bed sheet set, you “freeze” any other bedroom-related purchases for the next 30 days. After a month, you may realize your spendy feelings have subsided.

• Buy X, Invest X: For large purchases, make a rule that for every dollar you spend on something new, you must also invest that same amount. This actually has a double benefit, slowing down the amount of stuff you accumulate, while increasing your future nest egg.

• Ease into new hobbies: Want to try surfing? Start by renting a board or borrowing one for a few months. No need to buy a new board, wetsuit, car rack, waterproof watch, GoPro camera, and surf club membership after a single session. If you’re a beginner, go easy on the extra gear.

• Build sinking funds: If you anticipate a big upcoming purchase, start building a fund for it. Then when it’s time to buy, stick to that exact budgeted amount. You can’t buy excess if there’s no money for it.

All in all, buying new stuff and upgrading items in life isn’t bad... Just be aware that it might trigger unconscious spending that can spiral out of control!

Related stuff:

• 💻 HTM Blog: 14 Tips for More Mindful Spending

• 👨‍💻 Sinking Funds: What they are & how to build them.

• 🎧 Podcast Ep 374: Is Lifestyle Creep Inevitable?

TOGETHER WITH BETTERMENT**

Diversified Investing Built To Navigate Stormy Markets

Investing in a broad collection of stocks and bonds from around the world can help reduce your risk as you save, no matter what the market’s doing. Choose from 7 diversified, expert-built portfolios and invest for the long-term—rain and shine. Learn more.

Disclosure: Investing involves risk. Performance not guaranteed

INVESTING

Top 5 Stocks, Crushing It…

Today’s chart comes from Axios. It compares 2 growth lines:

The orange line: This is the S&P 500. It’s up 8.9% this year.
The green line: This is just the top 5 stocks inside the S&P 500. Those 5 stocks are Apple, Microsoft, Google, Amazon, and Nvidia. They’re up an average of 56% this year.

Now, you might be thinking… “Why am I investing in the boring S&P 500 when I could be making 5x just by picking those 5 killer stocks!?”

Well…

First off, if you own S&P 500, you already own hefty shares of those top 5 stocks. In fact, just these 5 stocks represent about 24% of the portfolio. Here is the weight of those top 5:

• Apple = 7.52% of the SP500

• Microsoft = 6.97%

• Google = 3.9%

• Amazon = 3.06%

• Nvidia = 2.65%

Next, although these top companies are doing all the heavy lifting for gains this year, next year it could be 5 totally different stocks that provide the bulk of returns (or even losses). Diversification is the only way to consistently catch all of the winners, all of the time.

Lastly, it’s easy to feel FOMO when looking at killer stocks and wishing you owned them. But the best way to ease FOMO is to focus on and be grateful for the things you already own. The S&P was up ~9% when Axios published that story (last we checked it was closer to 12%), which is actually really good considering our underlying economy.

Related stuff:

• 📊 Sector Performance: Historical chart showing which sectors crush it each year (pssst… it always changes, there is no single sector that rules forever)

• 📈 All 500: Here is a list of all the S&P 500 companies YTD performance (about 260 have + returns, and 240 are in the red 😬)

• 💻 HTM Blog: Investing in a volatile market

ICYMI

Recent Buzz…

SL Payments 👩‍🎓
As part of the new debt ceiling deal, student loan payments are set to resume soon. If you have student loans currently on pause, be prepared to start making monthly payments again beginning Aug 30th.

Joint Accounts 👩‍❤️‍👨
Should married folks share bank accounts or keep them separate? This study says shared accounts lead to increased happiness (although it’s not a perfect fit for every family)

Avg Home Size 🏡
Newly built homes are shrinking in size, and have been since 2015. This is a cool combination of a) people realizing that more size doesn’t equal more happiness and b) smarter building and design methods mean more uses out of smaller spaces.

MoviePass 🎬
Cinema fans, rejoice! MoviePass is back in full swing, available nationwide. Subscriptions start at $10 per month for 3 movies/month (sadly, if you live in SoCal or NYC you have to pay double 😭).

Millennials 📊
Our buddy Jesse at The Best Interest posted a great article about the average millennial statistics, including some steps to stay ahead financially.

HOW *YOU* MONEY

Greg, 30, Lynnwood, WA 🌲

Occupation & Salary:
Me - Sales, $225k. Wife - teacher, $50k

Paycheck deductions: 401k: maxed early in the year with a large commission check. Wife’s Simple IRA: we contribute 100% of her salary to this until it’s maxed in May. Taxes: $2,500/month, Health ins: $50/month (wife only. Mine is paid for by my employer.)
Housing: $3,781/month - includes property tax and insurance. We offset this with $1,700/month in rent from extra rooms for a total of $2,081/month
Other Debts: na
Living expenses: ~$3,500/month

Leftover savings each month: Roughly $6,000/month

How are you investing your excess savings each month?
We’re refilling our emergency fund right now ($18,000 so far this year!) and also took a trip to Australia at the beginning of the year.

Biggest “craft beer equivalent” splurge:
Self-care (exercise equipment, gym memberships, massage every now and then) and travel.

Best savings hack/advice:
No great secrets here. I need more discipline with my savings actually!

Biggest money challenge right now?
Keeping our spending in check and managing finances together. I tend to spend more than my wife so I always say yes to anything she wants. The net impact is we both spend more. Need to figure out how to manage that!

Recent money win and how did you celebrate?
Nothing big recently. We’re working to break $300k net worth but it has been hard with the market tanking.

**Have you got a story that might help or inspire others? Fill out the form to be featured! (We won't share anything you don't approve first) And thank you in advance for helping our community grow richer and happier, together.**

That’s it for now. Cheers for reading, have a great week ahead, and remember: You are GOOD at what you do!! 🫵

Best friends out 🍻