They Lied To Us

Hey there, good morning! This is the Budgeteer crew speaking, and we are super excited to welcome you to our very first newsletter. We're all about sharing the best insights and strategies when it comes to money - from mindset and behavior to tips and tricks - as well as travel advice that'll make your adventures even more amazing(who doesn't love to travel for free!). So sit back, relax, and let's dive into some seriously awesome information!

Here’s what we're serving today:

• Top money lies

• Your first travel credit card for frequent travelers

Today's edition is brought to you by Refside. Fun referee apparel for refs by refs.

Let's dive into personal finance, folks! It can be a real head-scratcher, thanks to all the conflicting advice. But here's the real kicker: some of the most significant money lies we've been fed can seriously damage our wallets! Trust me, you don't want to fall for these misconceptions. So, let's bust some myths and get our finances in order!

Biggest Lie #1: We need a big salary to build real wealth. Society has conditioned us to believe that unless we're raking in six figures or come from a wealthy family, we'll never be able to achieve financial success. So it's no wonder many people feel stuck living paycheck to paycheck, thinking there's no point in trying to get ahead if they're not earning a high income.

But here's the thing: that's not true! In fact, a big salary is not a prerequisite to building wealth. Dr. Thomas Stanley's book "The Millionaire Next Door" showed us that the key to achieving millionaire status is based on how much we save and invest, not how much we earn. So it makes sense when you run the numbers: someone earning $400,000 a year won't become a millionaire if they spend that same amount every year. Meanwhile, a carpenter making $60,000 a year but saving and investing 20% of their income could end up with a portfolio worth over $1 million after 30 years!

So don't fall for the lie that only high-income individuals can build wealth. Regardless of your salary, diligent savings and investing can lead to a sizeable amount of wealth over time.

Biggest Lie #2: The idea that investing is super complicated and risky. Thanks to the media and the financial industry, many of us feel like we need a Ph.D. in finance to understand the basics of investing. They throw around fancy jargon like "alpha dividends" and "capital gains," making us feel like we're the dumbest person in the room if we don't get it.

But here's the thing: Investing doesn't have to be complicated! You don't need to understand all the jargon to start reaping the rewards of compounding returns. When we started out, we were so overwhelmed that we didn't know where to begin. But what finally got us started was taking baby steps and investing in a simple index fund that tracked the total market. And over time, we became more comfortable and confident.

Creating an effective investment portfolio doesn't require a degree in rocket science. Anyone can become a bona fide investor with two or three simple funds and 30 minutes a year. So avoid falling for the myth that investing is too complicated or risky. It can be as easy as picking what to eat for lunch, and the best part is you only have to do it once every few years.

Biggest Lie #3: Another big money myth is that we can beat the market with enough effort. Once we realize that investing doesn't have to be complicated, it's tempting to think we can do better than the market if we work hard enough. But here's the truth: No one can predict what the market will do tomorrow or next week. The stock market is incredibly complex, with factors like math, human emotions, and geopolitics all playing a role in whether it goes up or down.

While we might start to believe that we can control the outcome of our investments, the reality is that we actually know less than we thought. Stock market news, forecasts, and rumors drive the daily and weekly volatility of the stock market—interesting, sure, but not tied to the core fundamentals of the businesses that drive the market in the long run.

If you want to build real wealth, you must ignore the noise and focus on long-term fundamentals. Buy low-cost index funds and hold them forever. Even the most brilliant economists in the world need help understanding what's happening in the market, so don't waste your time trying to beat it.

Biggest Lie #4: Credit Cards! Some personal finance gurus will tell you that credit cards are the devil, but that is untrue!

Of course, if you're struggling to pay off your monthly credit card balance, focusing on getting your finances in order before taking advantage of any benefits is essential. Credit cards can be dangerous if not used responsibly, and the extra interest can quickly increase.

But if you're a responsible card user, there are some fantastic benefits to owning and using the right credit card. For example, many cards offer free hotel nights or flights, and we regularly use our American Express cards to bank points to take our families on vacation for free.

Additionally, many cards extend the warranty on your purchases, saving you money on those pricey extended warranties. And if you travel often, many travel credit cards cover the TSA Pre-check or Global Entry fee, making your travel experience much smoother.

So don't be afraid of credit cards! If you use them responsibly and take advantage of the benefits, they can work in your favor. And if you want to learn more about some of my favorite credit cards, keep checking out this weekly newsletter!

Let's face it, as jet-setters, we end up spending more time in airports than we'd care to admit. And who wants to endure a long layover next to someone coughing up a storm or a screaming child with frazzled parents? Not us, and we are guessing not you either!

That's why we are thrilled to share our top travel credit card recommendation with you: the American Express Platinum card. This card is a total game-changer! One of the best perks is the exclusive access to more airport lounges than any other credit card on the market. Seriously, there's no competition when it comes to lounge access.

And who doesn't love a little luxury while traveling, are we right? With the Amex Platinum, you'll feel like a VIP with priority boarding and even complimentary upgrades on select airlines. Plus, there are so many other perks that make owning this card worth it in the long run.

Now, we know the annual fee might seem steep at first glance, but trust us, it's an investment that will pay off in spades. We like to think of this card as a membership card that everyone needs in their wallet. Stick with us, and we will break down all the benefits so you can see why the American Express Platinum card is a must-have for any globetrotter.

Credit cards can be great, but remember: if you can't pay off the balance in full every month, it's best to avoid them. The interest rates can be a real headache! We'll keep reminding you of this every time we recommend a credit card because we care about your financial health.

Some of the top perks:

• Welcome offer of 150,000 Membership Rewards points after spending $6,000 in the first six months (selected offer of 150,000 points is here). TPG values this welcome offer at $1600.

• 5x Membership Rewards points per dollar spent directly with airlines or at amextravel.com on up to $500,000 spent in this category each calendar year

• Up to a $100 credit for Global Entry/TSA PreCheck(Don't know the difference, we will cover this in an upcoming newsletter)

• Up to a $189 annual CLEAR® credit

• Complimentary Walmart Plus membership

• Up to $200 Annual Airline Credit

• Up to a $200 Annual Hotel Credit for Fine Hotels and Resorts and Hotel Collection Bookings (minimum two-night stay for Hotel Collection bookings)

• Up to a $300 Equinox Gym Credit

• Up to a $240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases at Peacock, Audible, SiriusXM, The Disney Bundle, ESPN+, Hulu, and The New York Times.

• Up to $200 in Annual Uber Credits: Up to $15 each month (and up to $35 in December)

• Up to $100 each year to be used at Saks Fifth Avenue (enrollment required).

• Hilton & Marriott Gold Elite Status (enrollment required)

• Cell phone protection up to 2 devices for $800 a piece

• Car rental privileges at Hertz, Avis, and National

• Annual Fee: $695 (see rates & fees)

• And many more

Psst! Reminder, if you want an amazing signup bonus, check out the American Express signup here! Plus, they offer pre-approval for their cards without affecting your credit score. Win-win

Register. Jet set with your favorite travel buddy for free on any Southwest flight with the Companion Pass sale! Don't miss out.

Read. Our favorite misconception: you don't need a financial advisor! It could actually cost you more in the long run, and the results could end up worse then if you invested following a simple index fund strategy. We will continue to dig into this topic in upcoming newsletters.

Read. 62% of Americans are living paycheck to paycheck, we are going to make sure you aren't one of them!

Listen. So many people are renters these days, and as time goes on we will dig into the true costs of renting vs owning. But for now, this is an interesting idea that a lot of us will be saying its about time those rent payments are reported to the credit bureaus.

DIY question of the week:

We love hearing from our subscribers and we want to get you involved in the conversation! So, every week, we'll be bringing you a question from one of our awesome subscribers (just like you!). Here's how you can get in on the action: simply reply to any of our emails with your question, and we'll do our best to respond to you personally. And who knows? Your question might even make an appearance in our newsletter for all to see! We can't wait to hear from you and keep the conversation going.

What is the difference between the statement closing date and the payment date? And which date is the best to pay my credit card? - Fred S

Regarding credit cards, the closing date marks the end of your billing cycle, and the due date is the last day to pay off your balance without getting hit with late fees or interest charges(this will be a later date than the closing date). So, to avoid any penalties, pay your bill by the due date. But did you know that paying off your balance before the closing date can also help boost your credit score? It's true! That's why we recommend paying it off in full a few days before the closing date or at least by the due date. So, remember those dates and stay on top of your credit card payments!