Money Musings: get what you want

Money Musings 💭 get what you want 🙌

When I left my investment banking job for a job that would give me a better lifestyle (mostly fewer, more predictable hours), I took a big pay cut. At first, I had no idea how I was going to manage the switch - I had never made a budget and knew nothing about personal finance. It was worth it to me to figure it out so I could spend more time with my friends and family and have time to take care of myself. 

Then a few years later, when I was planning to leave my corporate finance job to run the Fiscal Femme full time, I socked away cash into savings like crazy so I could invest in my business (and really pay myself while my business wasn’t earning enough money). And that was so worth it to me because I was going to get to do work that I was passionate about.

Switching to a new job with a better lifestyle and going out on my own were two major career decisions that I had the freedom to make because of money. 

It’s important to acknowledge my immense privilege. We don’t start on a level playing field when it comes to money or our careers. And regardless of how hard people try or how many smart money and career moves they make, many would not have had the same opportunities I did. 

Until we dismantle systemic racism and oppression, financial freedom will not be accessible to all in a material way. 

But even me, with all of my privilege, used to believe that dealing with or making “smart” decisions with my money would be restricting or limiting to my fun. It’s something I thought I had to do. I find the people who have the most success in their financial lives may start there but come to understand that dealing with their money is actually a radical act of self-love.

I’ll say it again. Dealing with or spending time with your money is a radical act of self-love. ❤️

Why? Because you’re helping yourself get what you want most. 

It’s a gift. 🎁

Once we see that, making decisions in alignment with our goals becomes a lot easier. It’s not something we force ourselves to do. It just becomes a natural choice. 

What freedom does money give you? What do you want to create room for in your life financially? Hit reply and let me know! 

MONEY MOVE OF THE WEEK

Practice asking for what you want. For many of us, the word negotiation brings to mind a tense (and terrifying) compensation discussion. 😩 But really, a negotiation just means asking for what you want. We are negotiating all day, every day, even if we don’t realize it. And that means there are opportunities to practice negotiating all the time. 

When we choose a restaurant 🍽 to meet a friend, that’s a negotiation. When we later decide which dessert 🍨 to share, that’s a negotiation too. When we ask our roommate to pick up the slack on the dishes 🧼, that’s also a negotiation. Instead of saying “whatever you want” or “I don’t care,” use these low stakes opportunities to practice asking for what you want. It will make the higher stakes conversations a lot easier. 

YOU GOTTA SEE THIS

Define: ETF vs. INDEX FUND. When you go to purchase an investment, there is often an ETF and Index Fund version of the same fund. How do you choose? ETFs and Index Funds are actually pretty similar and for most of us the differences will be so small that they don’t even matter. 

Both are funds (which means pooled money from investors - aka us) invested in a bundle of stocks, bonds and cash or a combination of all three. They’re great because we can purchase one share and own a bunch of different companies. This is called diversification - meaning, we’re not putting all of our eggs in one basket. They’re also low cost because they are passively managed (i.e. they follow an index rather than have investment professionals choosing the investments). 

Now for the differences: 

  • ETFs can be bought and sold throughout the day (and their price fluctuates). Index funds have a set price per day. If you are a long-term investor who buys and holds (which I recommend!), this doesn’t matter. 

  • ETFs often require a lower minimum investment, which can make them more accessible as we’re starting out. 

  • Both are low-cost options but their expense ratios (or the % fee we pay per year) can differ. Definitely compare and consider the cheaper option! 

  • ETFs are typically slightly more tax efficient but again, for most of us, this amount will be small. If you want to nerd out, you can dive deeper into the differences here.  

If you’re ready to start investing and have your money start growing for you, join the 3-month Savvy Investor Course. I’ll walk you through everything you need to know to invest (no prior knowledge needed!).

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