Saturday Success Series: Volume 21
Making life & money work for you.
Welcome back to the Saturday Success Series email!
In this edition we’ll have:
Five to Focus On: A quote, stock, book, show & a beer.
Master Yourself: How we’re messing up our kids
Master Your Money: Cost to value ratio
And of course…
The Weekly Special: The All-in-One Money Toolkit for Everyday People
The goal here is maximum value, so let’s get to it.
Oh, by the way, if you’re feeling generous, please share this newsletter with a friend.
Five to Focus on:
In a noisy world, it’s hard to know what’s good out there. Let me help.
Quote to ponder: “I know it sounds corny, but I try to see the funny side and the upside, not the downside. I get bored with people who complain about this or that. It’s such a waste of time.” - Betty White
Stock to consider: IWFH (iShares Virtual Work and Life Multisector ETF).
Seeks to track the investment results of an index composed of U.S. and non-U.S. companies that provide products, services and technologies that empower individuals to work remotely, and support increasingly virtual way of life across entertainment, wellness and learning.
Disclaimer- this is not financial advice, I am not a financial advisor, and you should always do your own research.
Book to read: The Art of Strategy by Avinash Dixit & Barry Nalebuff.
This is a good read and it’s a pretty comprehensive look at strategy applied to our every day lives. It’s a little boring, yes, but chock full of useful (actionable!) information on how to think better about the world and your daily interactions. The other great part? It’s timeless. What worked in 2008 will work in 2028 and beyond.
Show to enjoy: Wrath of Man on Paramount +.
Not a show, a movie. A Jason Statham movie. Which means action, yes. A plot? Sort of. Violence? Definitely. A good time? No doubt.
Beer to sip: Edgar at IPA from Bullfrog.
The can art is pretty good. My friend built a bar with a glass top and under it are his favorite cans, it’s really cool. My only issue with that? I would feel the need to re-do the bar every year or so. Anyway, I got away from the real issue at hand here- this beer is tasty. All that we see or seem is but a drunken dream.
Master Yourself
We’re messing up our children.
We’re raising kids who wonder what they can get vs. what they can give. We’re not teaching them better and because of that, we’re failing them.
I understand this is a generalization. There are many great kids and great parents, but more and more we’re moving toward an individualistic society.
This isn’t healthy for our communities. Or our kids.
They’re entitled instead of concerned.
We’ve raised kids who ask what they can get vs what they can do. What can they get from society, what they’re “owed”, etc. instead of how they can contribute, the important work they should do, etc. They don’t think of what they can be giving back to their community. Of what kind of value they can offer the world.
We need to start having better conversations with our children. They have a lot to offer and they owe it themselves, and us, to be the best version of themselves. To be concerned, contributing members of their communities.
Master Your Money
I live by a "cost to value ratio" formula.
Works for money & time.
How does this work?
It’s a quick question: Is the value gained equal or greater than the cost paid?
If yes, do it. If no, don't. If it breaks even, flip a coin or do it if you want to.
Ex. I was invited to a preseason football game. For me it was not worth the 100 bucks to sit with loud, drunk people when I could do it comfortably at home for 0 dollars.
Ex. Paid, a lot, for dinner out a few weeks ago. Worth every penny because of the company we were with.
Weekly Special:
The All-in-One Money Toolkit for Everyday People
A lot of people struggle with their financials. The education is out there but sometimes hard to plow through.
I get it. 10 years ago I had nothing much to speak of. Unless you count 1k (or less) in savings , a 520 credit score and a bed in my parents house things to speak of.
I decided that’s not a good way to live and learned a lot and put what I learned to practice. Putting the education to use is the secret by the way. Anyway, these tips that helped me, can help you now.
I just turned 35 and my net worth is on par with the median net worth for someone in their mid 50s in America. And I don’t even own a home, which accounts for a huge chunk of most people’s net worth. So I’m not just talking to talk here (typing to type?), I’ve done of all the things I’ll speak about below. I went from a broke 25 year old to a financially free 35 year old by utilizing this toolkit.
Track your spending
You can’t improve what you don’t measure. I found out we were spending way too much on food when I started tracking. The obvious solution is to cut dining out (it’s expensive and unhealthy) but we also had to figure out ways to save on groceries- buying certain things in bulk, using coupons, only buying what we need after meal planning for the week, etc.
Before I had a family I saw I was spending 200–300 a month on beer. Freaking beer was eating up more per month than my car insurance. That had to change. But before I started tracking my spending, I was able to lie to myself about how much I was spending on stupid shit. You can’t lie once it’s on paper right in front of you.
Your overspending may be on streaming services (share with friends and family, duh) or new clothes (Thrift. Store.). Whatever it is, see how you can adjust your habits.
Try to reduce major and monthly costs
Shop car insurance yearly. You are not rewarded for your loyalty.
Shop internet packages yearly. In my area we really only have two companies to choose from, but it may pay to toggle between them yearly. Also, basic internet is probably good enough for you. I use it and I work from home, stream a few devices at once, blah blah. Don’t get upsold for what you don’t really need.
Refinance mortgages/negotiate rent (yes, you can do this. Google it, there are many great articles) or get a roommate to share costs with. I lived with 2 roommates for years before moving in with my girlfriend. You could also live with your parents or other family for free, or small fees, if possible. I lived with my parents until I was 27, then again from 32–34. No shame in my financial game. I could’ve afforded my own place, sure, but just because you can doesn’t mean you should.
Shop around for phone bill reductions. Especially if you own your phone. Also see what kind of family plans you can get on, they can save you a lot.
Eliminate cable and streaming services you don’t use. Or share with friends and family. ‘You pay for Netflix, they pay for HBO’ type deals are great.
Buy used instead of new. This applies to cars, clothes, books, electronics, gift cards, etc. It’s almost never worth it to pay for something brand new.
Consider getting rid of your car. Though this only makes sense if you do the math and have the right situation. How much would you spend on Uber? Is having one care feasible or do you need two so you and your spouse can get to work? I’m in a two car situation right now, but lord knows I’m planting the 1 car seed in my girlfriend’s mind.
Another major cost for Americans? Credit card debt. Oof. Avoid credit card debt at all costs. Make sure you have the cash to cover what you put on your card. It’s tough to get out from under 25% interest rates. The real truth is that credit cards can be great tools. I use one for almost every purchase. I love my Discover because I earn cash back (1–5%) and can use it to purchase gift cards that are discounted (10–20%). That’s free money.
Take time to think
Think about what? Whether this purchase is moving you closer to or further away, in relation to your goals. Yes, consider even your small purchases, they add up. Too often we just spend without thinking.
We typically don’t consider the fact that our money has two costs- what we spend now and what we lose later. Take that beer money for example, 200/month spent was lost but that money also suffered future losses. Had I put that 200/month into an investment account instead, I would need to account for what I could have earned via growth and interest. That 200/month was really 216/month.
Make saving a habit and automate it
Create a “don’t touch” account that you shovel money into monthly, whether it’s a set amount or a percentage.
Invest in your employer’s 401k, especially if there’s a match. If not, open a Roth IRA. Your tax bracket is likely to go up, not down, so Roth’s are a great option (taxed before you put money in, tax free coming out).
We’ve all heard the same song- saving is losing, because inflation- but there’s something comforting about having cash on hand. Investments often aren’t liquid and they’re long-term. Cash is immediate and cash is a cushion.
Pay attention to your interest rate. Savings accounts are typically awful, but some are better than others. Look up bank offers- you can make hundreds by opening new accounts with a new bank. Sure, it’s a bit of a pain to switch banks because checking accounts are typically attached to bills, but it’s also probably worth it.
Track your net worth
You need to know where you are in order to help yourself get to where you’re going. On the 3rd of every month I add up my savings account plus my 401k plus my investment accounts to see my new net worth total. I don’t currently carry any debt, so nothing to subtract.
Add in property (minus mortgages and taxes) and any other assets as well. Subtract any debt and there you go, you have your net worth.
You may have months where your net worth dips, that’s okay, the market (both stock and real estate) is unpredictable. But over the years you want to see the trend inching upward. And it will if you’re doing the right things.
Find ways to make more money
Get a second job or side hustles- you have more time than you think and you’re good at something that others will pay for.
We never want to focus solely on reducing costs, but also on earning more money and growing our money. We intend to play offense and defense.
Anything you make in a side hustle should either be reinvested in that hustle (or additional hustles) or put into an investment account. Don’t go blowing it by upgrading your lifestyle just because you earned a little more this month or year.
Open an investment account with no trade fees
You have to invest, simply saving isn’t a great long-term strategy. Though admittedly cash on hand is nice (as I mentioned before) you still need an investment plan.
Don’t complicate things. You’re not aiming to day trade, pick stocks, time the market or any number of other idiotic things people insist on doing. You’re aiming to target low cost (expense ratios under 1%) ETFs rooted in the future (space, AI, marijuana, clean energy, etc.). Why the future? Because this investment portfolio is for the long haul- think 15-25 years +.
The best way to invest? Do it right now and consistently thereafter. You should be looking to purchase more shares every month. Who cares if it’s 1 share, 20 shares or a 100 shares? The idea here is just to make sure you’re investing every month. 1 is better than none.
Focus on free and low cost fun
Life is about experiences and relationships. Money is merely a tool, not a goal. Focus on what really matters.
You don’t need a 2,000/week vacation twice a year to live well. You don’t need 200 dollar sneakers to be happy. The biggest TV on the market won’t fill the void in you. You don’t need nearly as much as you think you do. Learn to focus on what’s important. And it’s nothing material.
With the kids we focus on movie nights at home, heading to new parks and playgrounds, board games, visiting the library, family walks, badminton and basketball games out back and eating dinner together at home. Even with friends, invite them over for BYOB, go catch a free local concert, walk around town or do half off happy hours. The idea is to enjoy the people in your life, and you don’t need to blow wads of cash to do that.
Summary
Track your spending
Try to reduce major/monthly costs
Take time to think
Make saving a habit and automate it
Track your net worth
Find ways to make more money
Open an investment account (with no trading fees)
Focus on free and low cost fun
Thanks for reading and if you found this valuable, please share with someone who could use it, see you next Saturday!