Family Financier

07/10/2024

Someone shared this document in a group I’m in.
Let’s talk about it.

Do you have a child about to enter adulthood?
Encourage them to put at least 5k a year into their employer sponsored 401k and/or Roth IRA.
If they do this for only 5 years, they will be a millionaire by age 65.

Maybe your kids in college and not quite in a position to squirrel money away yet.
When they start that big kid job at 23, same practice but for 8 years, and they can also easily achieve millionaire status.

These numbers are actually super conservative, considering the average return for the last 10 years on s&p 500 is about 13%.

06/24/2024

Getting to know the benefits of Health Savings Accounts.
I still have some questions but I’m mildly shocked at how these are marketed vs. how financially literate folks use them (they’re a major tax boon)

So next year, I’ll start contributing the max amount. I won’t use it, but instead I’ll invest it. I’ll save any and every receipt for medical expenses and cash them out/request reimbursement, much later in life after that money has compounded its value.
The money gets invested tax free and I can get reimbursed tax free.

We’ve had HSAs before, but were woefully ignorant and used them like a checking account for health costs.

05/04/2024

Life hack: if you have indoor felines, buy this https://www.chewy.com/arm-hammer-sifting-cat-litter-pan/dp/183118 to replace your current litter box and fill it with this https://www.lowes.com/pd/40-lb-Wood-Pellets/1001091282

No dust. So cheap. Pretty easy clean up. Way better for the environment than whatever you’re currently using.

We went to this method about a year ago because I was sick of spending $30/mo on mediocre litter that made a huge mess and I’m never going back.

02/08/2024

My oldest daughter changed jobs recently, which meant she had a 401k sitting stagnant. A 401k (one that's being actively Invested In or not) is only as good as its investments (and y'all, there are even cases where they're not invested at all. Which Is essentially like sticking that money under your pillow and inflation makes It less valuable every day)

I offered to take over the management of these funds (they're still 100% in her name, in her account) less than a month ago and her meager portfolio has already grown 6%!!!

I've only placed the money In a handful of mutual funds and ETFs, nothing super risky. I enjoy checking In periodically and telling her how much she "made" in a day, while doing nothing (in excess of her regular routine) to keep her motivated.

I also made sure she's at least putting In as much as her employer will match now, at her new job.

These are such simple, powerful, life changing things, that I only began to know about In the last decade (over age 30)

You can do this!! Even If it's just $5 a month (this is not an add for starving kids In another country or disheveled dogs In a shelter) you'll see how it grows and learn to value behind Investing.

01/19/2024

I told y'all I'd come back to talk about credit cards.

For starters, credit cards should be used for every day expenses, NOT things you wouldn't/couldn't afford otherwise. Credit cards are tools, not free money so yes, they take some discipline (and some sort of income) to properly utilize.

If you're just starting out, such as a secured card like previously mentioned, then I'd suggest selecting one expenditure that is inevitable and relatively fixed, such as gas, or groceries. Preferably something from merchants that won't tack on additional fees for paying with a card (many utilities charge a fee to pay with a card, if you're paying the bill anyways and already have the funds for it, it doesn't make sense to take on added expense just to use a card)

We'll use groceries as an example because probably that's something we're all buying. So, buy the same groceries you would if you were paying cash, but pay with your card. Maybe you just spent $100 on groceries (bear with me, this isn't a talk about family size or inflation, im just using easy basic numbers), go ahead and put $100 in savings that you know is going to cover this. In a few weeks, you credit card will send you a statement for $100. Use that $100 in savings to pay off your credit card. Rinse and repeat. Your credit score will start climbing in no time! and in some months you can ask the bank to increase the limit and/or return your security deposit. Then you can go apply for more cards if you feel so inclined (I have some 8 cards and plan to get more)

01/13/2024

Not sponsored.
I’ve never personally used chime but know folks that have and liked their products.

I know the concept of credit is controversial and a barrier for many, but it’s part of our reality so I encourage folks to learn how to use it to their advantage.

If you currently don’t have credit, or have poor credit, a secured credit card is THE #1 way to start on the path to improving that. A secured credit card is kind of like a debit card to a savings account.

You’ll need to put some amount forward (as demonstrated, most creditors require set amounts but it looks like this product will let you start with any amount which is amazing!!), then you will in return have that amount of “credit”. Maybe you can swing $50 or $100 from your tax return? Do it!
You’ll then have a card that you can use for that amount!

Of course how you use the credit at this point is just as important as having it in the first place. So I’ll make another post about that.

Must open a Chime online checking account to apply

12/02/2021

This holiday season, give the gift of investments.

For (current. These rates fluctuate) just under $234 you can get your child a share of VTI, an etf that tracks the entire stock market and has had consistent gains of approximately 20%/yr for the last 5 years your child would have nearly $5,000 in 8 years.

10/26/2021

Opened my kids custodial accounts in January. My one kid has already gained over 20%.

08/26/2021

Pro tip: if youve been working overtime, just got a raise or are expecting a bonus or other bump in income, increase your 401k contributions.

This reduces your tax liability while also fertilizing your nest egg.

08/23/2021

After crunching some numbers I realize that I actually have the suggested amount for my age, for retirement. 🎊🤑🎉

This is huge!

6 years ago we had $0 saved! 😢

In 6 years I’ve squireled away as much cash (honestly, the bulk of it has been in the past two years, much related to some major power moves) as I should have had saved for the last 20! 🤩😃

It’s only too late to get started when you’re dead. ☠️

08/07/2021

If you had $100,000 and no pressing financial matters (just standard, up to date debt) what would you do with it?

02/24/2021

The stock market has been having some downward motion for the past week or so (yesterday being especially “ugly”)

But stocks are investment tools. And it’s much better to look at them right now as being ON SALE!!!

So go stock up! (No pun intended) and see how they look in a month. A year. Etc.