Financial Showdown!

Hey, does anyone else have that chatty little voice inside their head, you know, the one that loves to cast doubt on your ability to achieve financial security? We've named ours "Stacy," and she's quite the naysayer. She'll say things like:

• "Pssst, you're not fooling anyone; you don't make enough dough."

• "You'll be swimming in debt forever, my friend."

• "You? Disciplined? Ha!"

• "Brace yourself for a lifetime of work, just like everyone else you know."

Well, guess what? Stacy—or whatever your inner voice's name is—couldn't be more wrong. You can absolutely do this! You're in the driver's seat, and you've got the power to steer your life towards financial stability. So, feel free to say "hi" to Stacy, but don't let her throw you off track. We're here, cheering you on every step of the way!

Today we are bringing you:

• Supercharging your financial employees

• Find cheap airfare like a pro

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

You've got your spending plan in place, spending less than you make and have some money to invest. Awesome! Now it's time to make that money work for you, but how? You have two options: savings and investing which are both potent tools to help you grow your wealth. We will dive into the differences between the two and help you decide when to use which option. (Hint: You will always have both!)

Meet Your Money's Superhero Alter Egos: Financial Employees!

When you save or invest, you create a team of "financial employees" who work tirelessly 24/7 to make you more money. They don't complain, ask for raises, or take days off – they keep working and working, making you more and more money while requiring zero from you.

But where should you put these little employees so they work most efficiently for you? This is what we called the 8th wonder of the world, compound interest. If you missed this newsletter, please read it here(it's a good one)! First, let's explore the benefits and risks of both saving and investing.

Savings: The Required Safe Haven

• Saving money is the foundation of your financial security. It's your financial safety net, helping you prepare for unexpected expenses and avoid going into debt.

• Savings accounts are low-risk, meaning you won't lose money, but returns are incredibly modest. Think of it this way, savings accounts help preserve your cash so it is there when you need it.

• Savings are easily accessible making them perfect for emergencies or short-term goals.

• If you want financial security, just saving money won't be enough to retire comfortably. You'll need to invest your money and make significant gains to build your wealth. However, that is not the purpose of this type of fund. This fund is your peace of mind fund, so when life gets in your way you have an account to access without having to go into debt or sell your wealth building assets like stocks or real estate.

Example: Sarah saves $200/month in a savings account with a 4% annual interest rate. In a year, she saves $2,400 and earns $85 in interest. Safe, but not life-changing.

Investing: Embracing Calculated Risk

• Investing means buying assets like stocks, bonds, or real estate to GROW your money.

• Investments carry more immediate risk but have the potential for higher returns if you let time help you along the way. Always remember our old adage: "Time in the market beats timing the market".

• Perfect for long-term financial goals(retirement savings) and wealth-building.

Example: John invests $200/month in a couple of index funds with an 9% average annual return. In a year, he invests $2,400 and earns $320 in returns. Higher risk but potentially more rewarding.

Striking the Perfect Balance

Should you save or invest? The answer: a mix of both.

1. Before anything else, make sure you have an emergency fund that can cover three to six months of your living expenses. You need to keep it in a High-Yield Savings Account (HYSA) that's FDIC insured and earns at least 4% interest. You won't find these types of accounts at banks like Chase, Wells Fargo, or Bank of America. Some great HYSA options that we personally use and recommend are Sofi, Ally, Wealthfront, and Capital One. If you're interested in signing up for a Wealthfront account and earning 4.8% interest, you can use this link. Again, if you are earning less then 4% in your savings account, you need to move your money to a HYSA now! If not, you are losing money every single day it sits in these non-HYSA.

2. Once you've got enough money saved up for emergencies and paid off any high-interest debt (that's anything with an interest rate greater than 6%), you can start investing in your future and reaching your long-term financial goals.

Here's a simple rule of thumb to guide your decision about where to place that hard-earned dollar:

• If you don't need the money in the next 5 years, consider investing in stocks or bonds to put yourself on the path to financial security.

• Need it less than 5 years, place it in a HYSA that is FDIC insured

• Of course, if you need the money in the next 1-2 months keep it readily available in your checking account or savings account attached to your checking

If you strike the right balance between saving and investing, you can come up with a solid financial plan that will make your money work hard for you and set you on the road to financial success. And don't forget, investing doesn't have to be intimidating or difficult! That's one of the top 5 lies that we're told to believe, read it here if you missed it. Actually, investing is as easy as putting away $25, transferring it to a retirement or brokerage account, and purchasing an index fund like FXIAX.

Happy wealth-building!

One top pick for your card lineup is the Bilt World Elite Mastercard Credit Card. With a third of Americans renting, this fantastic card lets you pay rent without transaction fees. Imagine earning perks on the average $2,000 monthly rent! The Bilt World Elite Mastercard is an easy way for credit card newcomers to start earning points on everyday expenses like rent.

Pros:

• Earn 1x point on rent payments (no transaction fee, up to 100,000 points/year)

• Earn 3x points at restaurants, including delivery and takeout

• Earn 2x points on travel booked directly with airlines, hotels, and car rental agencies

• No annual fee

• No foreign transaction fees

Additional Benefits:

• Access to airline transfer partners

• Cell phone protection

• Trip delay insurance

• Purchase security

• Primary rental car coverage

So whats the catch with all those point multipliers that are equivalent to cards that you typically have an annual fee? Well, there's a catch: you need at least five transactions a month to qualify. But hey, good news! Your rent payment counts as one of them. Just make four more transactions along with your rent, and you're all set to earn points.

Now, if you don't make those five transactions but still pay rent, you'll only get 250 points with the Bilt card through their app. They want you to use the card as your main one, not just for rent payments and point collection.

Here's a tip: to get the most points, pay your rent and make some small purchases. You could top up your Amazon account or split other expenses into smaller transactions. Just remember, the value of the card depends on how you use those points, which is true for any credit card we'd recommend.

So, how should you use Bilt points? Let's start with what NOT to do. Using points for rent payments or Amazon purchases isn't the best move. Booking fitness classes or buying from Bilt's book collection is a bit better, but the real value comes from using points for travel. The Bilt travel portal is super easy to use and gives you 1.25 cents per point. Another option(we don't advise) is to put points towards a home down payment, but honestly, it's not that practical – 50,000 Bilt points would only be worth $750 for a down payment!

The best value comes from transferring points to partners, aiming for at least 2 cents per point or even 10 cents for luxury travel. After a year of rent payments on your Bilt card, you could score a first-class round-trip ticket to Europe!

So, if you're a renter and into the credit card points game, this is a great card to add to your collection. No other card lets you pay rent for free with a credit card! Enjoy your travels!

Read. 74% of Americans feel they cannot rely on social security benefits for their retirement. This is why it is so important you start now with focusing on retirement savings and investing.

Watch. What is the difference between savings and investing in a short, entertaining video.

Watch. Outstanding series on Netflix on how folks are trying to get their finances right! As personal finance nerds with a goal of helping others understand personal finance, we absolutely love this show!

Read. Want to boost your cash flow today? Just check out the shocking number of folks across the U.S. who aren't taking advantage of a HYSA. Chances are, you're one of them, but don't worry, we're confident you'll jump on board in no time. Right?!?!?

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send us a reply.