I grew up in the Washington DC metropolitan area and have been working in the financial services and lending industry for over a decade. I earned a bachelor's degree in psychology and master's degree in distance education from the University of Maryland University College.
Don’t save what is left after spending; spend what is left after saving. – Warren Buffet
If you take a look at your bank accounts, you will notice that the rates on your savings accounts are minuscule.
On average, savings rates are a paltry 0.01% APY.
That means you are not even earning 1% on the money you have stashed away in most big banks.
This meager 0.01% APY is not doing anything for you.
If I put my hard earned money into a bank, I want something for it. These rates are almost no better than sticking your money under a mattress!
However, don’t do that. If the house ever catches fire, your money also goes up in smoke and is not FDIC insured.
I once heard a real estate mogul say that many years ago there was a time when interest rates were paying 10%. He was able to double his money every 7 years!
Now, that is fantastic.
However, this is not the case anymore.
Although, there are some banks that are willing to pay a fairly decent rate for the opportunity to house your money.
I found a few from doing an online search.
So, here is how you can earn money from placing your money in a high yield savings account.
WHAT IS A HIGH YIELD SAVINGS ACCOUNT
A High Yield Savings Account is a savings account with a variable rate typically higher than retail brick-and-mortar banks.
These banks are usually online and offer no physical bank that you can visit.
However, you can deposit your money online via electronic funds transfer.
Access to you funds may include a combination of wire transfers, checks, or ATM withdrawals. But this is not always the case.
For example, American Express® Personal Savings accounts are not meant for everyday spending. Therefore, debit cards, ATM cards, or checks are not provided. Transfers have to be done online. And transferring funds online can take anywhere from 1 to 3 days to complete.
Therefore, you should only deposit money in these types of accounts that do not require you to need access to these funds immediately or for daily spending purposes.
THE RULE OF 72
This rule allows you to estimate how long it will take for an investment to double at any given interest rate with the “Rule of 72”.
Knowing this will allow you to make a more informed decision before placing your money in any investment or savings vehicle.
You must also pay attention to the type of account you put your money into. For instance, a money market account or Certificate of Deposit (CD) will pay you more than a savings account.
Stocks pay you he highest rates of returns and give you the biggest bang for your buck!
The average annualized total return for the S&P 500 index over the past 90 years is 9.8 percent.
With the Rule of 72, If you use the formula, that equates to 72/9.8 = 7.34 years to double your money.
However, many banks are paying 1% or less!
Therefore, if your savings are earning only 1%, this means you money will double in value in 72 years.
That is 10x longer than if you had invested your money in stocks.
BANKS WITH HIGH YIELD SAVINGS
After doing a short search online, I found the following banks with high yield savings:
American Express National Bank – 1.90% APY
Ally Bank – 1.90% APY
Barclays Bank – 1.90% APY
HSBC Direct – 2.01% APY
Synchrony Bank – 1.90% APY
HOW MUCH YOU CAN EARN
This amount can vary based on how much is deposited.
Of course, the higher the deposit amount the higher earned in interest.
You can use this money for anything you want or simply keep it invested and let the interest keep compounding on the amount you earn.
Please be advised that you still have to report this as income on your taxes. The bank will supply you with a form for tax purposes.
Now let’s show you the money.
We will use the 2.01% APY as our rate.
If you deposit $15,000, into an accounting paying 2.01% APY, you will get the following:
If you deposit $25,000, into an accounting paying 2.01% APY, you will get the following:
If you deposit $50,000, into an accounting paying 2.01% APY, you will get the following:
SKY’S THE LIMIT
All yeah! Let’s stack that paper!
Unless banks start putting a cap on the amount you can deposit, you can pretty much do this until you feel you have deposited enough in savings.
The point of using a High Yield Savings is to grow your money while you sleep.
That’s right. You can earn money just for breathing.
Merely allowing it to sit in an account paying less than 1% will not beat inflation; being its customary 2-3% rate per year.
At the very least, your money can keep up with inflation and not fall so far behind.
The goal is to always beat inflation.
Your money will have less purchasing power as inflation does its thing.
Therefore, it is your job to finds ways to keep the money train going by figuring out how to earn more, invest more, save more, and ultimately beat the inflation monster that is coming out every year to a theater near your wallet.
If you use a credit card, you don’t want to be rich. – Mark Cuban star of “Shark Tank”
According to CNBC, Americans have an average credit card balance of $6,375 and owe a record breaking $1 trillion in credit card debt, which is the most ever recorded in history.
Investing that money instead could net you anywhere from $50,000 to $200,000, depending on how long you invest it and getting a return on investment of around 9%.
And that does not include an employer match or if you invest more. You could save and invest your way to a small fortune thanks to compound interest.
Here are some ways to avoid paying interest.
MAKE IT AUTOMATIC
I’m sure to many of your out there this is not new advice. However, how many people are actually doing this is another story.
Setting your bills up on automatic payments is a great way to avoid missing payments.
Credit card companies can levy a hefty fee for missed payments. The most recent I read was $38! Forget that. I rather use that money for gas or some other function. Anything is better than paying fees.
In addition, credit card companies can ratchet up your interest rate to 29.99% for missing a single payment!
That means almost near perfect timing of paying all bills.
The closest you can get to doing this is to make all your payments automatic.
Set up everything you can on autopay.
You can put the gym membership, cell phone, utilities and insurance payments on a credit card. Then set up automatic payments with your bank to pay that credit card off at the end of every month and you’re done.
PAY DOWN YOUR DEBTS
Paying off high interest debt is a must on the road to wealth.
Every dollar you spend towards interest cannot work for you compounding interest instead.
Think about it. If you pay $700 per month servicing debt and pay 50% of that in interest, that money is gone. Dust in the wind my friend.
If you can do the polar opposite, investing the entire $700 and earning interest instead, you have a clear path to building wealth over time.
That is the equivalent of $8,400 a year you are investing as opposed to using that amount to pay debt in which $4,200 goes to principal and the other $4,200 in interest and that money you never see again.
Many may not know this, but credit unions are not allowed to charge more than 18% on loans or credit cards (unless you default).
The savings gain alone from not having to pay some credit companies 22-27% interest is huge!
You could save anywhere from $50-150 bucks or more per month with a lower interest rate. That’s another $600-1,800 per year!
Just something to consider.
REFINANCE YOUR MORTGAGE
If you can lower the interest rate on your mortgage, you can save $100’s or $1,000’s of dollars a year.
In addition, if you can change your repayment period from 30 years to 20, 15, or 10, then you can save a ton of money. Maybe not tons of money monthly or right away, but over the life of the loan.
For example, a $250,000 mortgage at a 3.92% rate over 30 years will cost $425,533. You reduce that to 15 years and total output is $331,058. That is a difference of upwards of $100,000!
If you take that $100,000 and put that into index funds, you could have anywhere from $600,000 to $1 million dollars over 30 years with a minimum 6% return on investment.
Many folks will buy at least 2-3 homes in their lifetimes. If every new purchase resets your debt-free mortgage clock by 30 years, then you are likely to spend most of your working years in debt.
I hate to be the bearer of bad news, but this is actually the norm for most people.
You do not want to be normal. You want to be different and extraordinary because that gets results.
If more folks put down 10-20% and got 15 year mortgages, you would be better off in the long run.
Paying on one item for 30 years is a long time.
A lot can happen in 30 years. Heck, a lot can happen even in 10 years!
Retire that debt ASAP or as fast as you can.
You can build an in-law suite, swimming pool, and remodel the kitchen after the debt is gone and the home is paid off.
People used to have mortgage burning parties, after paying off their home. Let’s try to bring that back shall we.
I have recently read in the news personal finance experts expressing their concerns over mortgage payments that Americans are making.
Most wanted the debt paid just before you retire. Others said get rid of it in your 40’s. Like around age 45. Why you ask? Since, this is the point where you are halfway through your career, it is best to spend the second half of it working toward building capital to fund your nest egg.
That is excellent advice.
Basically, you spend the first 20 years paying off all you owe, and the last 20 years building up your retirement accounts you will need in your golden years.
SUMMING IT UP
All you have to do is follow these four steps and you can avoid paying interest or at least a whole lot less of it.
Remember these 4 steps:
Make it automatic
Pay down your debts
Bank with a credit union
Get a 15 year mortgage
Sounds pretty simple right?
Well, you would be surprised by how many people are not doing any of the things stated above.
Therefore, if you can start doing even one of these things now, you are well on your way to building up your bank account.
And in the illustrious words of Porky the Pig, “That’s All Folks!”
I know. Easier said than done. You have a better chance of catching a fly ball at Yankee Stadium, than getting an entry-level position with a $70k starting salary.
However, bear with me.
I did some research and after a little digging found jobs (or companies) that pay a minimum of $70,000 a year.
Why is this post about $70,000 you ask? Great question. I will answer that here.
CEO PAYS ALL EMPLOYEES MINIMUM $70,000 SALARY
If you remember, just a few years ago, there was a CEO that read people are happiest when they make about $75,000 a year.
Well, he took that theory and ran with it.
He cut his own $1.1-million-dollar salary and gave every employee a minimum $70,000.
For some employees, this doubled their salary.
He made international headlines. This happened around 2015.
A follow-up article on the company showed that it did indeed help his employees and the company has grown. It doubled their amount of clients.
It seems doing good things, sticking to your convictions and principles attracts people and money to you.
Therefore, this article is about finding that happy sweet spot.
That my friends, is at about $70k.
WHAT TYPES OF JOBS ARE PAYING $70,000?
I did a search on online including indeed and other job sites. I just searched for jobs that pay $70,000+ salaries.
Financial independence is the ability to live from the income of your own personal resources. – Jim Rohn
Reading headlines in the news about how boomerang kids are returning home in droves is quite alarming.
When I was growing up, I saw lots of young adults leave home and never return. They got jobs and worked their way up to where they were trying to go.
However, a couple decades have changed all that.
One of the biggest culprits: student loans.
The cost of college has outpaced inflation. Therefore, it is now up to families to find affordable ways to get a college degree.
Otherwise, your kids may just end up back in your basement, or worse, in their childhood rooms that they could hardly keep clean when they were debt-free teenagers. Gulp!
The reason that so many millennial’s need parental assistance in paying their rent is because they shoulder the bulk of the $1.4 trillion in student loan debt.
However, borrowing or taking out deposits from the bank of Mom and Dad is not a good idea and can have lingering consequences for the parents as well as the kids and future generations.
Here are the reasons why young adults should stop relying on their parents and become independent as fast as they can.
FINANCIAL INDEPENDENCE WILL TAKE LONGER TO REACH
We are living in a time when more people discuss this phenomenon called FIRE (financial independence retire early).
Although, this should be taken with a grain of salt, as many people will need to save 50% or more of their income for a decade or two to make this dream a reality. And that is not always possible or feasible to do, to say the least.
That being said, the decision is always yours whether or not you retire at 42 or 62. The point is to be able to one day have the option to retire.
When you lean on your parents (the Rents) to pay your bills, it can delay the transition into adulthood.
I have noticed when people have no safety net, they are a lot more resilient and cautious about what they do and spend.
For example, to rely less on Mom and Dad later in life as an adult, you could do the following:
Live with a couple roommates
Pick a smaller apartment to live in (say 700 square ft.)
Go without a car or at least buy a smaller, more affordable one
Commute to college and save by not paying room and board; therefore, requiring less or no student loans
It seems to be the people that get off their parent’s payroll ASAP are the ones that are able to become financially independent the fastest because they have no other choice.
When the only option is self-reliance, then you learn to live lean really quick. And low fixed expenses are how you will be able to start saving money.
A SUBSIDY SHOULD HAVE LIMITS
For those that may not know, right now the Direct Stafford Loans offer a three-year subsidy (you may have to ask your loan servicer if your loan has this feature) for students entering repayment.
Those funds give graduates time to find suitable employment and create a budget for their lifestyles in order to repay what they owe.
This cushion is a great way to help young people get on more solid financial footing.
What you may or may not have noticed is that there is a three-year window and then it closes shut.
And do you know why? It is because when you offer people a crutch, then unless they have the drive, perseverance, determination and the will to be self-sufficient, they are likely to use the crutch forever.
You have to limit aid, otherwise, people come to rely on it for all their days.
This includes the funds from your parents.
Get off their bankroll as fast as you can, or you may come to depend on it for the rest of your life.
Let’s be honest. Nothing lasts forever. Even milk, has an expiration date.
You would rather have the option of saying no than hearing the words: We’re cutting you off.
RELYING ON SELF GETS BETTER RESULTS
I know that having help is at times necessary to keep a roof over your head. I would not tell parents not to help their children. I am asking children to tell their parents, that they no longer would like their financial assistance.
Therefore, you become the adult or hero in your own life and story.
If you read any number of stories about the rich and successful, you will notice that many did not pull themselves up by their bootstraps, but had just enough help to get things running and then go it alone.
When you allow someone to write you a check, you are also giving them some form of say so in your life. This de facto control you are giving up every time you cash that check, has far reaching and lasting consequences.
You may want to live in SoHo, but the parents say they are only willing to pay for something closer work or at a specific dollar amount. Thereby, giving them more control over your life.
When you write the check, you have all control. You say when, where, and how much.
No need to wait on anyone to give you the green-light or hand you the money. You can make decisions for yourself and might I add, faster than if you had to wait for help or other form of assistance.
Thereby, causing you to not miss opportunities because you can say yes without having to check in with anyone else.
You can say yes to that job, internship, business opportunity, apartment lease, car purchase, or vacation.
Just something to think about.
INDEPENDENCE IS ATTRACTIVE
Independence, especially financial independence, is attractive.
When you are an adult, you do not have to tell anyone you are one.
They can see it in your actions.
Are you out at the bar every night? Or are you at home, working on that new app your developing to earn enough money for a down payment on a house?
Do you spend with reckless abandon? Or are you cognizant of what you are spending, and where your money is going?
People are drawn to confident people. It is an attractive quality. They say like attracts like.
Nothing exudes confidence like someone who is in control of their money and time.
Are you looking for a partner? If so, ask yourself what qualities are you looking for in one.
For instance, do you want someone who buys everything in three’s, likes to lease cars, and maxes out their credit cards every month?
If the answer is no, then you may want to make sure you are not doing any of those things as well.
Everyone wants to date up, but they forget that they too need to get themselves together in order to attract someone worthy of their time and vice versa.
When you are independent, people want to be around you. You attract jobs, opportunities, people, and money when you have your own.
GENERATIONAL WEALTH INTERFERENCE
The New York Times has reported that 40% f people in their early 20s receive financial assistance from their parents.
Parents are paying for everything from rent to car insurance.
The problem with this is that every dollar that parents give their children, is money that is not working for them in building their financial house and keeping it secure.
If parents have the money to give their children for a down payment or college education, then I am all for it. By all means, help the kids out.
However, what many kids may or may not know is that Mom and Dad cannot afford some of these expenses.
It is one thing to help someone with a one-time expense, like a down payment on a home.
It is another thing entirely to help pay someone’s rent or mortgage every month with no end or deadline in sight.
Many baby boomers are going into retirement unprepared. Therefore, they usually do not have the funds to give the kids or grand-kids because they need that money themselves.
How do I know? Well, I ask people. And many have said that their are finances precarious and funds are limited. Many give until it hurts. However, it not just hurts them, but also their heirs.
The Sandwich Generation is a generation of people who care for their aging parents while supporting their own children.
By not taking or limiting financial help from parents, it limits the help you may need to give your own parents when you are raising your kids.
Let me share with you this story for some perspective.
I read an article about a man who decided to become writer. While he did pretty well for himself, the family still struggled financially.
This is what happened during the course of their lives:
His wife quit working and became a stay at home mom
Their daughters were given the option to go to the private colleges of their choice, even though the family could not truly afford it
His father helped them pay for college for the kids; thereby, making him forfeit any future inheritance for him or his children for the sake of present conveniences
They also paid for their two daughters weddings out-of-pocket, with empty pockets
His wife has been out of the workforce so long she is unable to find reasonably paid work
He works 7 days a week
They have no savings and NO RETIREMENT
From the example above, you can see how paying for present pleasure or not planning for expenses can harm you and your family down the line.
This is scary stuff. Their inability to say no and set firm limits on what they were willing to spend has caused long-term consequences. They may have to rely on their children for financial assistance in their old age as opposed to passing on wealth.
I urge you to reconsider.
Let this post be your wake up call. A call to arms, if you will. A call to financial arms. To arm yourself with financial knowledge, so that nothing can stop you from working toward your goals and building a solid financial future; independently.
“To hell with circumstances; I create opportunities.” – Bruce Lee
When I read headlines and reports talking about how 75% of Americans are living paycheck-to-paycheck, or 30% do not have enough to cover a $400 emergency, I get concerned.
Especially, when credit card debt is reaching record highs and as of the writing of this article, credit card debt in the United States stands at $1 trillion.
I do not like to see so many Americans cash strapped.
I want to see people funding their dreams, buying homes, and starting businesses.
Although, those things take time to build, it is very possible to do over time. However, it gets harder to do those things when you have debt.
I have read lots of books and articles online that gives the following advice: ask for a raise.
Easier said than done. Why not ask for a pony, while you’re at it?
They say ask and you shall receive, but this is not always the case. More and more, I hear about how jobs are downsizing or cutting expenses. That’s code for slashing wages and human capital.
These things happen all the time. It is a business decision. Like a family trying to balance their budget and manage their household finances, a business has to do the same.
I have asked for lots of things in life. And, why not? All people can do is say yes or no. I have had to deal with rejection plenty of times. All you need is someone to say yes once. If you hear 100 no’s, then finally get to that one yes, it could possibly change your life.
I do not wait for people to hand me anything. Nobody owes me nothing. I work for what I want. I have learned to create my own opportunities. And you can do the same. Just work with what you’ve got.
Wages have been stagnant and quite frankly flat. It is becoming more difficult to move up an income bracket. While you’re trying to climb that economic ladder, it may not always come with a corner office, higher pay, and bonuses.
Truth be told, a raise may not do but so much for your finances. After taxes, you bring home less than the actual raise. And what’s even worse, is that many people do lifestyle inflation, where they slowly increase their spending due to lifestyle creep from making more money.
Burning through large amounts of cash is not good for your wallet. If you want deeper pockets, you have to make some changes to your behavior.
In order to give yourself a yearly raise of $6,000 ($500 per month), you would need to grow your income by $250 and cut your expenses by $250 or some combination of both, if not one or the other.
Here are some ways to give yourself a raise that don’t require you to quit or get promoted.
SLASH EXPENSES
Cutting expenses is like giving yourself a tax-free raise. Every penny you save stays with you.
You need to find creative ways to spend less. When you reduce the outflow you can increase your cash inflow and cushion.
Most people, I have noticed, that get into trouble with their finances tend to be the ones who have high fixed expenses.
Keep your expenses as low as possible. Then you do not have to worry so much about or even depend on getting a raise, bonus, promotion, inheritance, or any type of financial windfall.
For example, I decided to quit going to restaurants for about 2 months. My average bill would be about $30. If I give a tip 10-20% every check, that means paying $3-$6 every time. Eating out just 4 times per month, meant paying $12-$24 or $25-$50 over 2 months alone! That is $300-$600 a year.
That does not include the cost of food. The $2 delivery fee, the extra container of rice, or springing for the extra tuna roll.
Don’t even get me started on going out in groups to places that just so conveniently can’t split the check. You usually end up paying more than your fair share to say the least. Basically, you are subsidizing someone else’s alcoholism.
I now call the restaurant ahead and ask if they do check splitting. If not, I try to just order at the bar.
You are the controller or should we say comptroller of your destiny.
GO TO COLLEGE
Increasing your knowledge is usually a great way to earn more money. Although, education is not an equalizer (some may profit more from going to the Ivy League than others), you can still qualify for more prestigious jobs with a little more book smarts.
You can job hop your way to a higher salary. Even I have done this. I have noticed I have gotten a raise or promotion by applying for another job as opposed to asking for one. But that’s another story.
However, I do not recommend going into a ton of debt to do it. I suggest you find ways to go to school affordably such as monthly payment plans to pay-as-you-go, going online (which is cheaper that traditional brick and mortar), or seeing if an employer will offer tuition benefits.
If your employer pays, $1,500 a semester and you go for 2 semesters a year, that is an annual savings of $3,000.
LEARN A TRADE
Go to any barber shop or hair salon on a Saturday morning and take note how many people are there.
Having a skill can earn you some serious bread.
If I have to pay the plumber or electrician one more copay, I may start looking up how to fix the plumbing myself on YouTube.
By this point in my life, I am sure I have paid enough to hairstylists, washer repairmen and manicurists to put at least one kid through college or at least pay for a semester. That’s no joke.
If you have any type of skill or hobby that you can monetize, do it.
I read online that a woman who dresses in costume and does displays is making six-figures. You read that right. Putting on a wig and some tights is allowing her to pay the mortgage and save for retirement.
Think walking those dogs are beneath you. Think again. You can earn $40 bucks a day. Just doing this on the weekends could net you $80 x 4 = $320 a month. Pass me the leash.
OPEN A ROTH IRA
A Roth IRA has no upfront tax benefits, but the savings gain down the line is second to none. All the investment gains will not be subject to taxation in retirement.
Since, the money in this account is funded with after-tax dollars, you will be able to enjoy this account without having to pay the man. Sign me up please!
So when your peers are paying taxes on their 401(k) withdrawals, you could be going to the ATM getting out that $600 max withdrawal without paying Uncle Sam for the convenience.
PAY DOWN YOUR DEBTS
Paying off high interest or anything charging you interest such as personal and auto loans, credit cards and student loans is money in the bank.
Every dollar you do not give the local banker stays in your bank account.
If you pay $200 monthly to service your credit card debt, getting rid of this money drain means having an extra $2,400 a year back in your pocket. That can be put in your Roth IRA and then you are working towards turning every dollar into two.
LIVE ON CASH
It is hard to part with cold, hard cash. Swiping is easy. Work on handing every person you meet the money to pay for expenses, even to buy a postage stamp, and you will start to feel the sensation of giving away a small fortune.
SET UP AUTOMATIC PAYMENTS
The late fees from not paying on time are astronomical. A one-time missed payment on a credit card is regular $30 or more. Miss a payment on 3 credit cards in one month and that’ll cost you $100 bucks!
Over a years’ time, that is $1,200. Just in fees. Save that money automatically into your savings account instead.
DELEGATE TIME-SUCKING TASKS
By paying a nominal fee to others, you free up precious hours to find ways to make money.
The trick is to pay for services that are not particularly pricey and expensive. You then use the hours you would have put into cooking, cleaning, or doing laundry into making money during those hours instead.
RENT OUT YOUR HOME
These days you can rent out just about anything. Over 30 million people have used Airbnb. Most rentals I have seen can charge anywhere from $100-$300 a night.
You could rent out your place and make $500 a month. Or who knows how much. Sky’s the limit here.
FORGO VICES
Forget the lottery tickets, tobacco, concert tickets, expensive shoes, and beer runs.
You could save anywhere from $40-$200 a month. That’s $480-$2,400 dollars a year.
SUMMING IT UP
There are many other ways to save or cut expenses. You just have to be willing. From just some of the examples I provide, someone could save anywhere from $100-$600 dollars a month. That is between $1,200-$7,200 a year.
If you can find a way to bring in $500 more a month, whether it is an additional income or slashing expenses, that is like giving yourself a raise of $6,000 a year!
Whenever, I hear someone say I can’t live without my weekly happy hours I say to them: can’t or won’t.
There is usually always something you can do. Break it up into small tasks, if the bigger task seems too daunting.
Just focus on getting your monthly or daily savings rate up. You can do it.
I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel. – Dr. Maya Angelou
TO SUBSCRIBE OR NOT SUBSCRIBE, THAT IS THE QUESTION
America used to be known as the land of opportunity and dreams. And for some and in many ways it still is. However, things have changed dramatically over the last two to three decades.
One of the biggest changes I have noticed can be described in one word: subscriptions.
When I was growing up, you bought the thing one time and you were done. Transaction over.
Today, many places want you to subscribe to their services and pay them every month. I am not on board with this.
Even Jay Leno agrees with me. He told CNBC, “Here is the money, give me the thing, transaction over.”
He told CNBC Make It: “When you own something and you don’t have to write checks every month, you’re just better off.”
I couldn’t agree more. I can’t stand installments for anything. It means you earn money and then have to give it away. Period.
I learned that if I could cut down or out the installment payments in my life that I would be better off and would get to keep my money.
Sure you will have bills like utilities – gas, water, electric and insurance, food, etc.
Exactly, the luxury items have stayed the same: high-priced. However, the cost of college, daycare, education, and the mortgage have all gone up.
Even rent can be insane. There is no cap on rent. So, it can go up every year with inflation. Unfortunately, that is just a cost of life. You need a place to lay your head. You need shelter.
But I urge people to consider carefully what type and how much home they buy.
A HOME IS YOUR CASTLE BUT DOESN’T HAVE TO ACTUALLY BE ONE
I am all for the Huey P. Long saying that Every Man a King, but I think a woman is also the queen of her castle.
I prefer to be able to clean my own home. To be able to sweat over lonely labor, have sense of pride in a job that is well done is what I need. And just FYI, for those who like to stay in shape and are into physical fitness, cleaning is also a workout.
After reading the book Nickel and Dimed by Barbara Ehrenreich, in where she worked undercover with a big house-cleaning chain in her book, I feel I am better off doing the work myself.
Barbara Ehrenreich said, “I had been taught by my mother, a compulsive housekeeper who employed water so hot you needed rubber gloves to get into it,” to basically clean her own home.
Paying a service is another bill. I say if you can afford it and it will free up time you want for yourself, then do it.
However, I also have learned the bigger the home, the more help you need to clean it.
It gets tougher to clean a home yourself once it is more than 3,500 square feet. That’s when you usually have to hire help.
Paying the gardener, maid, chef, and chauffeur all adds up.
Why not purchase a home that is 3,000 square feet or less? Not only are they cheaper, but also easier to maintain.
That’s just my $0.02.
SUBSCRIBERS BEWARE
I have seen countless companies start subscription services. Some are pretty cheap and then others are downright outrageous.
I just started noticing this new way of the subscription life myself fairly recently.
I first started noticing it in high school. I wanted to buy Harlequin romance books, because I mean come on, who doesn’t like Happy Ever After’s (HEAs)?
And to my delight, in each book was a subscription notice. They offered 2 free books as a bonus! I was like sign me up. Then things started to go downhill for me from there.
Let me just start by saying, I am a huge Harlequin romance fan. It was not that they did not provide quality service or great reads. Quite the opposite. It was the quantity and price of the service that caused my woes.
I started getting books like every 3 or 4 weeks. It was expensive too, at least to a teenager, it cost about $15 a month. Some books I didn’t even want, but they shipped them in packs of four, which were chosen for you.
As much as I loved Harlequin, I had to cancel my subscription. They sent books faster than I could read and bills faster than I could pay.
That was my first taste of the subscription life. It left a bad taste in my mouth. One that, like Maya Angelou said, I never forgot how it made me feel. And all these years later, that one event was the catalyst for me not ever wanting to have subscription anything.
So, when something doesn’t feel right, listen to yourself. Trust your gut and make some changes.
I can walk away from anything. Relationships, bad jobs, roommates, you name it. Even if I am comfortable, I have still walked away from people, places or things that were not in my best interest.
Chris Rock said, “comfort is the poison.”
I have learned to hold on loosely to everything so you are not so rattled when change comes.
YOU KNOW WHO THEY ARE
There are lots of companies that offer subscriptions.
I pretty much avoid them all.
Everyone is out there trying to take the money out of your pocket and put it into theirs. Everyone is trying to separate you from your money. Don’t let them.
Expenses would occur once or infrequently when I was growing up. Now everything is a monthly subscription. Even toothbrushes are turning into a subscription service!
I buy products and stick with them until I get my monies worth. I bought a car for $30k, 15 years and six months ago. My payment was $448.65. So, $30,000/186 = the equivalent of paying $161 per month on this vehicle or $2,000 per year not including gas and maintenance.
It’s American made so I have not ever had to pay $3,000 or more in a single visit. My last oil change cost me less than $50!
I have more than got my money’s worth out of this car. I paid this car off in 2009. That money has been going to my retirement account ever since.
Companies now try to offer you the world and all this personalized attention and concierge service, until you stop paying. Whether or not it is by choice or you cannot afford to pay anymore.
It’s like trickery. Or in some cases like the old bait and switch. They promise you the world on the way in and engrave your initials on everything and then can’t remember your name on the way out.
What’s that Lucy? Another football for me to kick. No thank you.
Just say no to subscriptions. It will save you a fortune.
Here are some places that offer subscriptions – gym memberships, clothing stores, book publishers, magazines, and newspapers.
List of well-known companies that offer subscriptions and the cost of some pricing plans:
Apple iTunes $9.99 monthly
Under Armour (ArmourBox) 4-6 items of gear pay only for kept items) $80+ per box
The Wall Street Journal $100-$400 annually
Kiplinger Magazine $6.99+ annually
Forbes Magazine $20 annually
The New York Times $14.99 monthly
Deer Park Water $12.99 monthly (minimum)
Spotify $9.99 monthly
Hulu $7.99 monthly
Netflix $9.99 monthly
Amazon Prime $99 annually (from $79)
List of less well-known companies that offer subscription and the cost of some pricing plans:
Quip oral care tooth brush delivery $10 per user per month! For a toothbrush!
Stitch Fix $20 style fee
Le Tote $59 a month
Rent the Runway $139 a month!
Shoedazzle $39.95 a month
Gwynnie Bee $49 a month
Fabletics $25 per month or box
Her Fashion Box $59.95 a quarter! So, its really $239.80 annually
Oh and by the way, subscriptions are the bait to get you on the hook. After, they reel you in, over time they will start slowly increasing the cost. Again, this is just business and the cost of things, as there is this pesky little thing called inflation that just make goods and services costlier over time.
Let me tell you how my life has changed as I cancelled and avoided subscription services like the plague.
CASH RULES EVERYTHING AROUND ME
Money is like air, try and live without it. – Motivational Speaker
Some of you out there may remember the group the Wu-Tang Clan. They had a song called C.R.E.A.M and that pretty much summed up that you need money to sustain your life and that of your family.
You need shelter, food, water, transportation, insurance, internet, and phone.
Everything else is pretty much optional.
I have Netflix, Hulu, World Gym Express, AAA, insurance (life, auto, health, dental), and that’s about it.
I got a term life policy for pretty cheap through AAA.
I got some of the lowest prices available that would sustain my household. Things mean nothing to me. I don’t care about clothes or shopping. I prefer experiences. Me and the girls would have wine, pizza, and game night at each other’s houses.
Music videos were also a shopping trigger. Everyone from Ja Rule to Lil Wayne talked about being cash money millionaires. A rapper even made it his moniker: Chamillionaire!
Everyone in music videos had private planes, diamonds, champagne, mansions, and beamers, Benz and Bentleys!
Who thought of this thing called shoe game. I have never cared about shoes. I just wear them out until they are no longer useful and then repair or replace and toss the ones that are useless. I would wear shoes until I had holes in them. I don’t care. I’m fine. Grateful to have shoes on my feet.
However, when I was around 15, those videos started making me feel bad. So, at age 16, I decided to stop watching them. My self-esteem went through the roof!
Then years later, I discovered that many episodes of MTV cribs were not the full truth. I was floored. I was like you made me believe that success was in what I drove and what home I lived in. All wrong. Wrong, wrong, wrong!
MONEY IS JUST A TOOL
Money can buy you a fine dog, but only love can make him wag its tail. -Kinky Friedman
If you read my last post, you know I was inspired to save more by the blogger who owns Millennial Money.
I backed off of doing and buying much of anything, so that I could be free. I wanted to be financially independent (FI). And that, my friends, requires discipline. FI requires sacrifice and saving.
Women tend to focus on saving.
Men tend to focus on earning.
I encourage you to do both. That is what I did.
Ask for a raise, if it will get you to your goals faster. Don’t ever be afraid to ask for anything, because all people can do is say yes or no. So, I ask for everything. I do not fear rejection. I have learned to fail better. You are rewarded for it.
I knew getting a good education or learning a skill (construction, HVAC, barber, hairstylist, IT, plumbing, electrician, or dental hygienist) that could be monetized was key.
I knew a guy many years ago that skipped college in favor of heating refrigeration and air conditioning training. Within like 6 months he was making $20 an hour! And that was right out of high school.
In the news, it was reported that construction is in dire need of those willing to learn the trade. Due to a lack of construction workers, homes being built now are higher priced and low-income homes are not being built.
All of the sudden people are too good for construction! I have always admired and liked a hardworking, driven person. Especially, a man who can work with his hands.
Remember that episode of Charmed, where their ancestor came back from the 1600’s. It’s okay if you don’t remember, I own the DVD and just so happen to have a clip of it. This part and another episode called Morality Bites are some of my favorites from the show.
What’s wrong with working with your hands? Like all of my uncles were mechanics. It was like Marissa Tomei in my cousin Vinny.
They always had grease under their fingernails and on their hands, but people depended on them. My Uncle Tommy helped everyone. He was kindhearted. He, like my father, never raised his voice because they didn’t have to. They were respected and loved. There was no need to yell.
I have always liked and been drawn to well-mannered, hardworking men.
My mom grew up on a farm and we would visit it every summer when I was little. My only memory of my grandfather was always of him dressed in overalls.
He was in excellent physical shape well into his 70’s. Farming is hard work. He was up by dawn and in bed by dusk.
There was always fresh fruit and vegetables because he grew it and sowed his crops himself.
I love the fact that you can take a blueprint, follow a plan, build a home, and have tangible proof of labor. But, you know, that’s just me.
I spent parts of my childhood holed up in my room or on the couch reading books. I would read the Sunday Comics (Peanuts were my favorites), Archie Comics, history books or anything lying around the house.
I put all my time and money into developing myself. It went to my health, family, education, and community. Those sacrifices of going to an in-state school and driving a beater have paid off in spades!
Let me show you how.
MONEY IS THE NAME AND SAVING AND INVESTING IS THE GAME
After being introduced to Millennial Money online, almost three years ago, I made some changes.
I started looking at money differently.
I started thinking of ways to save on a daily basis instead of just monthly or after I paid all my bills.
You have to have money left at the end of the month, if you want to build wealth.
I took a look at my bank and credit card statements to see what I was spending my money on. Was there anything I could cut out? Did I really need this?
I cut out nail salon visits, excess hair appointments, shopping sprees, vacations, car washes (another subscription, ugh), birthday parties (no gift to buy or buying the birthday girl a drink) and anything I could find.
I cut out miscellaneous expenses too. No stopping at Walgreen’s without a list. I only need one pen, not a pack. Is it on sale? I can’t afford full price to anyone whose name isn’t followed by M.D.
After trimming the fat, I started figuring out my savings rate.
I started out with this:
Year 1. Saving $50 per month. $600 a year. That’s $600/365 (days a year) = $1.64 a day savings rate.
Year 3. Saving $150 per month. $1,825 a year. That’s, $1,825/365 = $5 a day savings rate.
Year 6. Saving $1,111.04 per month. $13,333.06 a year. That’s, $13,333.06/365 = $36.53 a day savings rate.
I went from saving $1.64 a day to $36.53 a day! That’s a 22% increase in savings.
That’s progress. That is almost the equivalent of someone paying me $40 (two twenties a day) and I put aside $36.53 of it in savings.
If you notice, from the examples of what I did, it took 6 years to get here. I just started where I was at.
I just wanted to save $5 a day like Millennial Money talked about. I had no idea that I had done that and more. I was used to spending everything I had and being in debt.
To this day, I still try to find ways to increase my daily savings rate. Once I changed my money mindset, I changed my life. I got results. And you can too!
