Everything I know about money, personal finance and investments

Welp, if you’re here you’re probably my friend. If you recall, the reason why I started this blog in the first place was because I am lazy. Instead of having the same conversation multiple times about my favorite plant shops or how I really think you should prioritize mental health, I am able to just make a blog post about it and share link. Efficiency, amiright? And don’t even get me started about automating cat care—although that’s likely to be another post.

Anyway, we have reached that point again, folks. Strap in for my ramblings about financial literacy with the obligate disclaimer that I am not a financial advisor so plz don’t sue me if you lose your fortune. I am by no means rich but simply wanted to share what I’ve learned since there was a point when I had no idea wtf I was even doing. Wealth management can be very intimidating so let’s break down investing (index funds, 401ks, robo-investing, diversified portfolios), high yield bank accounts, credit cards, and financial planning.

Before I get into the nitty gritty, I’m gonna say the obvious.

If you want to be financially well off, the quickest way is to increase your earnings. You can grind, or you can work smarter. No amount of savvy investment (I mean unless we’re talking about sheer lottery winning luck) or frugal spending is going to skyrocket you to better financial standing than simply making more money. Unless you’re willing to take extremes in cutting down your expenses (like moving to a less expensive state), increasing your earnings is the way to go. You’re probably thinking, “Ok dumbass, is your brilliant advice just to make more money? No shit.”

Hear me out—it’s more about having a clear vision of what you want your life to be like so you can make a strategic plan. If it’s important enough to you, you can achieve most things in the realm of reality (short of turning a cat into a dragon or something) as long as you have a plan. For me, I had the clarity that I didn’t want to struggle in my creative pursuits while living in expensive cities so once I knew that, I made a plan for how I would make more money. Having that clear goal sounds simple but it gives you a guide on what to pursue. As a result, I looked up industries and jobs that I was qualified for without having to go back to school and that’s the roundabout way I ended up working in tech. I think I literally Googled “high paying jobs in demand” lol. Don’t underestimate the amount of 6 figure jobs that don’t require racking up tons of student loan debt for med or law school.

TLDR for the lazy friends

• Have a diversified portfolio of investments (low fee index funds) so you don’t have all your eggs in one basket
• Invest long term, do not try to “time” the market or buy individual company stocks
• Max out 401k contributions and do not touch it until retirement
• Do not treat credit cards as free money. Spend only what you have and pay the balance off in full every month.
• Review your bank accounts and credit cards to ensure you’re getting the best interest rates to make your money work for you
• Maximize your income with a clear plan towards a job/career with high earning potential

Ok let’s get to it.

1. Pay off your debt first—starting with the balances with the highest interest rates. Stating the obvious, do not spend beyond your means. There are exceptions though. For instance, if you have a mortgage with a low interest rate, the money you would make investing it rather than paying the mortgage off early might be better (for instance 3% mortgage rate vs the potential 7% gain you could make in investing that same money in index funds over 30 years instead).
2. Make rich friends. No, really. There are several studies done by Harvard that show increases in socioeconomic mobility when there are “cross class/race interactions.” Let’s be real, so much of wealth is arbitrary—it’s what were you born into and luck rather than intelligence or hard work. Thus, being in an environment with the privileged, you’re privy to opportunities and ways of thinking you may not have known about otherwise. CHANNEL THE SAME AUDACITY AND RAISE THE BAR. YOU DESERVE TO ADD GUAC OR THAT $500 AUTOMATIC LITTER BOX. But really, think of it this way: if you’re in an environment where the norm is to not go to college, it’s less likely you’ll be around conversations on applications, opportunities, etc. The same goes for money which in itself is a privilege.
3. Pay off credit cards in full each month and opt for credit cards with rewards. Chase Sapphire is great for travel and if you eat out a lot. Plus, zero foreign transaction fees are great if you travel internationally. If you’re going to buy toilet paper anyway, why not earn points? When I pay for things in cash, I feel like that’s a waste because my money is not making money for me. But back to the toilet paper, you should really get a bidet instead because wow c’mon it’s like we didn’t go through a pandemic or something.

4. Traditional banks typically have garbage interest rates and features. Make your money work for you.
   • Do some research (Google “best savings accounts” or something) on online banks like Ally or Wealthfront for savings accounts. Like excuse me 5% interest is pretty dang good compared to the laughable 0.03% interest that Bank of America offers on their savings account. That’s just free money you’re not taking.
   • These banks are FDIC insured so unless you’re a multi-millionaire, the government has you covered if somehow the bank fails. But also if you’re a multi-millionaire, idk why you’re reading this blog unless you’re planning on giving me money.
   • For checking accounts, I would recommend Schwab High Yield checking account since you can actually earn interest on a checking account. Plus, there’s no annual fee, no minimum balance, no foreign transaction fees (clutch when you’re traveling because you don’t have to get cash exchanged), and you can use any ATM without a fee. As the rich do, make your money work for you.
   • Most finance articles recommend having 3-6 months worth of savings in your emergency fund—there’s no reason why that money should not be making you money while being easily accessible (liquid asset, as they say) in case of an emergency. Make sure to invest the rest beyond your emergency funds because you could be getting higher returns.
5. Do not try to time the stock market by buying and selling individual stocks. This is gambling. If you want to win big you better be ready to lose big too. Also, taxes are higher for short term capital gains (earnings on stocks you’ve held onto for a year or less before selling) vs long term gains. Even when I got stocks through the companies I worked for as part of my compensation package, I sold them all the first chance I got just to take the money to reinvest into a diversified portfolio. The risk is too high when you have so much in a single stock or industry.
6. Low fee index funds are the way to go. You do NOT need to pay for a financial advisor to invest. An index fund is exactly what it sounds like—it’s a bunch of stocks from different industries. Ever heard of not putting all your eggs in one basket? Well, that’s the gist of this. If one industry (say, tech) or stock does badly, it’s fine because the index contains other industry stocks that may be doing well. Historically, the returns are around 7-10%. If you want some suggestions you can Google “best low fee index funds” or if you’re truly lazy you could just get robo-investing with Betterment or Wealthfront (their fees are minuscule compared to mutual/hedge funds). Warren Buffet made an infamous bet with hedge fund managers that investing in index funds over a 10 year period would perform better than hedge fund managers’ hand picked investments. He won by a landslide—which leads me to my next point.
7. Long term investments are the way to go. Set up automations for investments and FORGET about it. Do not try to time the market and certainly do not try and withdraw your money when the market is doing poorly (if anything, that’s the time to invest more—I mean, you’ve heard of, “Buy low, sell high.”). You only “lose” if you panic and sell. If you invest consistently, the long term gains will be good—some years won’t be as good but some years will be very good. Long term, the gains are still going to pull out ahead around 7-10% if you have a DIVERSIFIED PORTFOLIO (see above about index funds and not putting all your eggs in one basket). Investing should be boring—set up automatic, recurring deposits and forget it.
8. Max out on your 401k (especially if your company matches contributions cos that’s just free money you’re not taking). Roth 401k is when you have taxes taken out at the time of deposit rather than when you withdraw at retirement. NEVER TOUCH YOUR 401K BEFORE RETIREMENT. The early withdrawal penalties are not worth it and kinda defeats the purpose of saving for retirement anyway if you’re just gonna withdraw early. Exception being for first time home buyers—you can use up to $10k from your 401k without the early withdrawal penalty but you’ll still have to pay the taxes. When you leave a company, keep an eye on if there are fees associated with maintaining your account—you can always roll over the 401k to an IRA or to your current employer’s 401k. It takes one phone call and isn’t that difficult. JUST DO NOT CASH OUT. And if you have a IRA, don’t forget to choose the funds you want to invest.
9. Audit your income to expense ratio. Make a spreadsheet of everything you spend your money on on a monthly and annual basis. Having an idea of what you’re spending your money on the most is a great way to see if you can afford it relative to your income and if it’s even worth it to you to continue having that expense. This helps with mindful spending and projections for realistic goals.
10. ALWAYS negotiate on job offers—whether it’s pay or benefits. Summon the ~ AUDACITY~ Know your worth and do your research on what your level and role goes for. In many states, salary ranges are required in job postings. Websites like Glassdoor, levels FYI and Blind (if you’re in tech) all have real salaries posted. Talk to others about what they make. Discussing pay should not be taboo.

Hope that helps and here are additional resources.

“I Will Teach You How To Be Rich” by Ramit Sethi is a bit obnoxious but it’s a very good crash course on financial literacy. The book is a very quick and easy read—I read it while taking the subway to work. There’s also a Netflix show for it now.

Planet Money is a NPR podcast about economics that I LOVE. They have a series called Planet Money Summer School. I’d recommend Season 2 which is about investing. Plus, there’s a whole episode about the 10 year index fund bet Warren Buffet made with hedge fund managers! They’re half hour podcasts so perfectly bite sized for a commute.

And this one isn’t really about financial literacy but I think it’s good for understanding the world and not to beat yourself up if you’re not where you want to be. “Outliers” by Malcolm Gladwell talks about what makes successful people, well, successful. Surprise, surprise, it’s having the privilege of being born into the world by wealthy parents. 😀

Idk did I miss anything? I feel like being born to rich parents just about covers it but comment I guess if you have any schemes.

And since you made it to the very bottom, here’s a very old, cringey self portrait that fits this post’s theme.