Happy Tuesday, happy people!

A couple of reminders to kick off this awesome day…

1. You don’t need to please everyone this week. Prioritize your work first —> it will put you in a better spot to help others.

2. You are good at what you do. People look up to you, even if they don’t say it out loud.

3. ‘Please’ & ‘Thank You’ are magic words. Use them in every interaction this week and things will go much more smoothly.

OK, let’s get on and talk about the money stuff! 👇👇👇

TO DO

Try this “Market Timing” Game…

Here’s a fun little challenge: Try this Market Timing Game and see how well you do.

Spoiler alert — you won’t crush it. In fact, you’ll probably realize just how random the market is and how horrible humans are at predicting the future.

Time in the market beats timing the market. The less you tinker with your investments (in the game and in real life), the better you’ll do. 💪

SAVING

Saving More Without Feeling Broke 😩

Adjusting to a new budget is hard. It sometimes feels like a punishment — like you’re depriving yourself of the things you love.

But what if you can somehow transform that mindset of restriction —> into a focus on the freedom you are unlocking? Saving money can actually feel awesome.

For those of you struggling mentally with saving and living life on a budget, here are a few tips to make it feel easier and more natural…

• Focus on Big Wins, Not Pennies: Instead of obsessing over skipping a $5 coffee, target the big expenses. Negotiate your rent, refinance high-interest debt, shop around for insurance, or eradicate unused subscriptions. These changes can free up hundreds without cutting into your everyday joy.

• Prioritize What You Love: Saving doesn’t mean giving up everything. Identify 1-2 things you truly value (eg. your craft beer equivalent) and keep those in your budget guilt-free. Cut the stuff you don’t care about or that provides little value to your overall quality of life (eg. impulse buys, consumer items, etc.)

• Focus on the Good: Instead of ruminating about all the things you are missing out on (luxuries, toys, wants), remind yourself of all the things you are gaining by putting money aside (security, freedom, less stress, and Peace Out Money).

• Automate Savings First: Set up automatic transfers to savings or investment accounts as soon as your paycheck hits. If you don’t see the money, you won’t miss it — and you’ll learn to live on what’s left.

• Gamify the Process: Challenge yourself! Or include a friend! Can you save $50 using cashback apps this month? Turn it into a game, track your progress, and reward yourself in small ways as you achieve your saving goals.

• Try Earning More: If upping your savings rate feels impossible, flip the script. Look for ways to increase your income instead of cutting back expenses. Don’t forget to ask for a raise! Or start a little side hustle or sell unused stuff. That can give your savings a big boost.

All in all, the more positively you think about saving/investing, the more sustainable your plan will be. Cultivating budget optimism will lead to greater gains.

Changing your mindset —> can change your life. ✨

Related stuff:

• 🎙️ HTM Ep# 668: Financial Pessimism Will Eat You Alive

• 📚 Book Rec: Secrets of the Millionaire Mind, by T Harv Eker

TOGETHER WITH FACET*

Less Stress, More Progress

Managing money can feel like a full-time job. Between big decisions, conflicting advice, and an endless to-do list, it’s easy to feel stuck.

That’s where Facet comes in. Their team doesn’t just offer advice – they help you take action. With personalized, ongoing financial planning for a simple flat fee, Facet builds a plan that grows with you. No hidden costs, no confusing jargon – just clear steps to help you move forward with confidence.

As a Facet member, their team will keep you on track with monthly messages and practical strategies to reach your goals. Consider them your trusted partner for life’s biggest financial decisions. Because peace of mind shouldn’t be overwhelming.

Ready to simplify your finances? Visit facet.com/howtomoney to schedule a free introductory call today.

INVESTING

Stock Dividends vs. Inflation 📈

When inflation is a hot topic (like right now), most traditional talking heads advise you to buy TIPS, I-Bonds, gold, real estate etc…

But the truth is… You might already be doing one of the best things to help fight inflation long-term: investing in the stock market.

In fact, one of the biggest unsung heroes over the past ~30 years for outpacing inflation is stock dividends. Check out this chart from Axios 👇👇👇

Those of you with a smaller investment portfolio likely don’t pay attention to dividends all that much. They’re just reinvested without you even noticing throughout the year.

But later in life when you retire and dividends become a bigger part of your income, it’s nice to know they rise alongside (and can massively outpace) inflation.

On top of that, as prices go up, corporations tend to realize increased profits. The extra money you pay for consumer goods leads to higher corporate profits. Those higher profits justify more robust corporate valuations, which pushes stock prices higher. When inflation is ripping, investing becomes even more of a necessity.

So if you’re already investing in the stock market regularly, keep going. You’re doing one of the smartest and simplest things to protect and grow your wealth.

Fancy strategies abound. But there’s no need for complicated hedging strategies, folks. The S&P500 is just as good, if not better, for the average investor. Keep it simple.

Related stuff:

• 👨‍💻 HTM Blog: Inflation, and what you CAN control

• 📈 Bankrate: Latest inflation stats for Jan ‘25

ICYMI

Fun reads from around the web…

Annual Letter 💌
Each year Warren Buffett writes a letter to his shareholders. Whether you own Berkshire stock or not, it’s always a good read, laced with wisdom and refreshing transparency. Here’s the latest annual letter that dropped a couple days ago.

Overnight Trading 🤷‍♂️
Schwab has opened up extended trading hours (24/7 × 5 days a week) for all of its retail clients. Morningstar warns this could be a bad idea for most everyday investors, as it enables more impulsive trades. Just because you can doesn’t mean you should!

Penniless 😭
If you’re worried about being broke in retirement, check out this post from White Coat Investor — What it looks like to run out of money. “Most people will qualify for Social Security, so running out of money doesn't actually mean having nothing. It means 💌 to live on Social Security.“

Hot Jobs 💅
Good news for those of you who wear scrubs or grade papers for a living — A new survey from The League reveals the “sexiest professions” that single folks are looking for in a potential partner. Turns out healthcare workers and teachers are the biggest heartthrobs! oooh la la.

The Flow 😌
Too much social media, constant notifications, and hustle culture can wreck your creative rhythm. The Honest Broker reminds us that “there are pathways to the flow state that don’t go through Silicon Valley. Dancing and singing can deliver it just as surely as swiping and scrolling.“

Relationship Math 👩‍❤️‍👨
A great article from W. K. Campbell breaks down the Investment Model of Relationships — Why we stay, why we leave, and what keeps commitment strong.

ASK HTM

“Will I inherit my parent’s debt if they die?”

If your parents struggle with big debts or have a negative net worth, you can rest assured those obligations won’t become your burden if/when they pass.

The exception is if you co-signed for any of their loans — you’ll be responsible for that debt no matter what.

Here’s the longer answer if this situation concerns you. And if you haven’t already, start having open, respectful conversations with your parents about their financial situation to avoid any surprises down the road 😬

Cheers to a great rest of the week! Remember to use those magic words… 🙏😉

Best friends out 🍻