Happy Tuesday, happy people!

Quote of the week…

“Almost everything will work again if you unplug it for a few minutes, including you.” ― Anne Lamott.

This is your reminder to slow down, take a break, and prioritize yourself a little. Unplug, reset, and come back online with fresh energy.

It lets you —> be the best you.

OK, now onto the money stuff! 👇👇👇

TO DO

Hit the Thrift Store 👚

3 reasons you should visit Goodwill this week:

1) People do most of their donating in the Fall! You can find Summer gear people don’t want anymore and stock up on winter stuff you’ll need very soon 👕

2) Most big thrift stores have cheap Halloween costumes! 👻

3) Donate & declutter: Before you go shopping, grab a bag and fill it with household stuff you’ve been meaning to get rid of. Drop it off while you’re there. 🏓

SAVING

End Of Year Financial Checklist ✅

There’s a new term kicking around the internet called “winter arc.”

While most people are winding down and getting cozy for the rest of the year, having a “winter arc” is all about using the last few months of the year to focus on self-improvement and finish strong 💪

It means waking up on Jan 1st as your best self and starting the year already crushing it.

So, what are the best end-of-year money moves? 👇

Do you want to enter into January 2025 with that credit card debt still dragging you down? Or do you want to ring in the new year debt-free?

Do you want to make a budget for holiday gifts now, or deal with a holiday shopping hangover for the first few months of 2025?

And do you want to let all those FSA funds disappear into the ether never to be spent??

Even though it may feel like the year is winding down, November and December can be powerful months for making financial progress. Pick a few important tasks that will have the most positive impact on your money, and focus on those.  

The bottom line: There is still tons of time to make progress on your financial goals in 2024, but you gotta start now. Get to it!

Read more: End of Year Money Moves.

TOGETHER WITH FACET*

Planning for Every Stage of Life

You don’t have to wait until the New Year to start prioritizing your finances. 

Whether you’re starting a family, buying a home, starting a new career or just want to travel more, Facet can help. 

Their membership includes comprehensive and dynamic financial planning that evolves with you through every stage of your life - from tax strategy, to retirement planning, Facet has you covered. And with monthly check-ins to keep you accountable, you’ll never have to make a big financial decision alone.

Unlike many financial planners, Facet is building the future of financial planning by charging a transparent flat annual fee, instead of a percentage of your assets.

Facet planners are all CFP® professionals, they are all fiduciaries, and are backed by a team of specialists. 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.

ESTATE PLANNING

Pop Quiz — What Happens When You Die? 🪦

I just read a super interesting study about how most Americans are “blissfully unaware” of the cost, timeline, and process of probate.

Soooo… I’m curious if YOU can pass the below quiz!?!? 👇👇👇

(answers at the end - no peeking!)

Question 1: True or false? — Probate is usually a 4-6 month process.

Question 2: When you name a beneficiary on a retirement account, does this override whoever is named in your Will?

Question 3: True of false? — Probate fees are usually less than $10,000.

Question 4: In some US states, when someone dies, their assets automatically transfer to next of kin.

Question 5: If your parents have a negative net worth, do you inherit their debt if they die?

Bonus Question: If Matt dies suddenly at the gym one day, who inherits his super fancy coffee maker?

Here are the ANSWERS:

1. False. The average probate process takes an estimated 18-20 months!

2. Yes, typically named beneficiaries override what’s in your will! (That’s why it’s crucial to update your beneficiaries on all savings and investment accounts)

3. False. Probate fees are typically 3-5% of the overall estate value. That’s a LOT if you have a high net worth!

4. All US states have a different probate process, nothing is “automatically” transferred (except Joint ownership accounts in some cases)

5. You will not inherit your parent’s debt. (Unless you co-signed their loans!)

6. Per Matt’s will, his coffee maker will be donated to the Guggenheim Museum in NYC and hung next to other precious historical artifacts.

OK, how did you score on the quiz? Learn anything new?

Thinking about death isn’t fun. That’s why most people procrastinate and avoid planning for it.

But spending a small amount of time now thinking through your estate plan can drastically reduce the pain and emotional toll when death inevitably happens.

Morbid, I know. But if we can’t talk about it around Halloween time, when can we!?

More stuff:

• 📝 Get a Will!: Trust & Will (the place we used to create ours!)

• 🗺️ State Rules: Scroll down to the interactive map on this post, then click on your state to read about the unique probate laws.

• 🤷‍♂️ Non-Probate Assets: Here’s a simplified flowchart showing what is included in probate and what’s not.

ICYMI

Noteworthy news…

Bad Loans 🚘
The latest report from Edmunds reveals that 1 in 5 new car buyers are taking on 84-month car loans. 😬 Ouch! Sure, the monthly payments are lower, but the overall cost is far higher. Not to mention carrying negative equity for much of that 7-year stretch!

Lottery 💸
Mega Millions is increasing the price of their lottery tickets. Instead of $2 per play, it’ll be $5 starting April next year. Yay, people can lose their money at double the rate! 🤦‍♀️

Healthcare ⛑️
Medicare opened for enrollment last week for folks 65 and up. And for everyone else get ready: November 1st begins enrollment season for new or renewed healthcare plans and closes on December 15th.

Inflation ⛽️
Gas prices are down 16% from this time last year. That’s good news! Overall inflation per the latest report is up 2.4% over all categories, with the biggest pain points being groceries and car insurance.

Career 👨‍💻
Another reason to avoid debt —> it affects your career decisions! A new staffing survey found that 40% of U.S. adults say their debt has shaped their job choices, (staying in a job they dislike, delaying retirement, etc).

Electricity 📈
Heating your home will probably cost more this winter — average utility bills are predicted to rise ~10%. If you live in a state with deregulated natural gas, shopping around could save you a bundle!

HOW *YOU* MONEY

Samantha and Jesse, 29 & 31, Cleveland OH 🎸

Occupations: Sales
Salary: $260k combined

Paycheck deductions: ~$7,600
Housing: $1,800 we own our home
Other Debts: None
Living expenses: ~$5,400

Leftover savings each month: ~$5,600

How are you investing your excess savings each month?
We invest most of our leftover savings right now into a brokerage account, as we’ve maxed out our IRAs for the year. Within the next few months, we’ll start moving money into a HYSA for upcoming travel!

Biggest “craft beer equivalent” splurge:
We like to do local trips around the US and also enjoy visiting new restaurants and bars in our area. There’s always something new to try!

Best savings hack/advice:
We have monthly money meetings where we discuss all things finance and complete our budget for the month. When we got married, we combined finances but maintained our own separate “discretionary buckets” that are the same amount for both of us that we don’t have to explain to the other. This has allowed us to be very collaborative while still maintaining a degree of financial independence, i.e. we don’t feel guilty over spending “family money” on our individual hobbies and interests.

Biggest money challenge right now?
Trying to decide how much to start saving for a growing family while balancing more immediate fun savings needs like travel.

Recent money win and how did you celebrate?
Paying off the remainder of our school and car loans!

Anything else you want to share?
Thanks Matt and Joel for the community and for all the learnings. HTM is one of the few podcasts we enjoy listening to together!

**This HYM segment is a fan favorite! But, for us to keep sharing more of these we need more people to fill out this form and share their story! (don’t worry, we won't publish anything without you approving it first — and if you want to use an alias for your name & hide your pic, that’s ok too!)**

Welp, that’s it for now! Wishing you a great week ahead, with lots of downtime and self-care 💆‍♀️

Best friends out! 🍻