Money Musings 💭 There's always a 🏠 compromise
What you’ll find below:
Reflection: How we found our new apartment
Money Move: Figure out how much you need to put towards your retirement
You Gotta See This: A recap of what I’ve been reading
Reel of the Week: A little money goal inspo
After we sold our place, it was time to find our next home. ICYMI, you can read the full backstory here.
A lot has changed since we were last in the market to buy (6 and a half years ago). The biggest change of all? The prices.
Woof, things are expensive! It definitely took me some time to recalibrate to the current market.
And with interest rates at all time highs those high prices got even more expensive. Plus, there was very little inventory so there weren’t many options.
The homes we saw were expensive but were not selling quickly so we put in some low-ball offers that were pretty promptly rejected (worth a try, right?!). 😆
While there are always compromises in finding a home (size, location, layouts, etc), the places on the market (some are still on the market months later) were either 1) unaffordable (unless they took our low-ball offer) or 2) had us compromising too much.
So we made the (way too) last minute decision to rent. 3 bedroom rentals in Hoboken are quite a rare commodity, and we were hoping to keep our apartment the same-ish size (for better or worse we’re allergic to paying for storage), so there were 4 options in total that fit our criteria. And those options went quickly (like same day!) and cost 20% more than what we were paying on our previous mortgage.
When I was venting about our search to my mom she said something that stuck with me. “If I were to rent, I’d try something different because it doesn’t have to be a long-term commitment.”
With that inspiration, we checked out places nearby in Jersey City and looked into luxury apartment buildings. I’ve never had amenities! We found a winner.🥇
The cool part? Our net rent is actually less for more space, AND we have some incredible amenities. Plus, with the building’s shuttle, my commute to NYC, the kids' schools and their various appointments is actually quicker (and more comfortable).
To include the kids in the process we gave them final approval (E’s therapist’s recommendation!). While they were sad to lose their backyard (and swingset), they were pumped to have a pool, playroom, etc. We got their stamp of approval.
The only problem? J is worried I’ll never leave! 😂 He’s not wrong.
How did you navigate your apartment search? What are your non-negotiables? Hit reply and let me know?
MONEY MOVE OF THE WEEK
RETIREMENT CHECKUP SERIES - STEP #3 - FIGURE OUT ‘HOW MUCH?’
Now you have all you need to enter your retirement numbers into a few calculators. If you missed steps 1 and 2, you can get them here and here.
One of the most common retirement questions I get is - how much? How much do I need to retire and what does that mean I want to be contributing now.
Here are 3 ways to do it.
STRATEGY #1: Contribute 15% of your income. Lauren Anastasio (a fellow CFP) gave this recommendation in my book. Love a simple guideline!
STRATEGY #2: Take the amount you want to earn in retirement (reference your dream from step #1!) and multiply it by 25.
If you want to earn an annual “salary” of $75,000 in retirement, you’d want to have $1.875 million saved. This assumes you take out (or withdraw) 4% of your nest egg 🐣 each year and need the funds to last for 30 years.
STRATEGY #3: Plug your own numbers into a couple retirement calculators and check in on this every year. What info you’ll need:
How much you already have saved for retirement (you did this in step #2)
Your age
The age you want to retire
Your monthly expenses (or how much you want to earn) in retirement
Don’t be afraid to play around with the calculators and to try different assumptions. You might plan to retire by 65 but are also curious what it would take to retire by 50. Check out what you’d need in both situations.
If the results have you stressed (you are not alone), stay tuned for next week’s step!
In the press
Investor Times: BEST BOOKS ON BUDGETING
#3. “The 30-Day Money Cleanse” by Ashley Feinstein Gerstley
If you’re looking for a practical and actionable guide to improve your financial habits, “The 30-Day Money Cleanse” is the book for you. Ashley Feinstein Gerstley takes readers through a month-long program, providing daily exercises and challenges to help you develop healthy money habits.
you Gotta see this
WHAT I’VE BEEN READING.
Here are some of the gems I’ve been reading lately. What are you reading or excited to read? I'd love to hear! 📚📚
Atomic Habits by James Clear. It's so good that I’m listening for a second time. How tiny changes in our habits can have a big impact over time. I’m inspired to get 1% better every week in my work, health, tidiness and relationships.
On Our Best Behavior by Elise Loehnen. How the 7 deadly sins have taken on the work of the patriarchy and how each impacts our lives as women, men and the world in general. This one is enraging and good!
Parenting from the Inside Out by Daniel Siegl. A recommendation from my Mom who is a therapist. All about understanding ourselves and how our own reactions impacts how we parent. It was painful to read because I see how much impact my parenting can have (in good and bad ways) but very important!
Outlive by Peter Attia. Reading this one again because it’s got a lot in there. A book on longevity and healthspan - not only about living longer but also about feeling good as you live longer. Instead of a prescriptive health book, it encourages readers to take a more active role in their health and well-being in everything from screening, exercise, nutrition and mental health.
15 Commitments of Conscious Leadership by Jim Dethmer, Diana Chapman and Kaley Warner Klemp. I'm only through the first 2 commitment because the authors encourage you to live and integrate #1 and #2 into your life before continuing on BUT I'm already a fan of this framework and can see how it will be a game-changer for my work and relationships.
your weekly money wins
Here are all the amazing money moves you made this week 👏👏👏
Ashley M: Paid off one of my creditors and lowered my DMP payment by almost $200 a month!
Summer: I moved some money from my recent flip house sale from my regular bank savings account to a high-yield savings account with 4.3%
Bia: I paid off my all student loans! And I made some extra cash on Poshmark, my fave side hustle
Dani: This month I will have $5,000 in savings and am SO close to paying off my last credit card and having no credit card debt!
Christi M: Spent less during vacation than budgeted and decided to throw that back in savings!
Bethany: Asked my bank to raise interest rate on my HYS account based on an ad I saw. It worked!
Tania R: Paid a professional to fix my taxes instead of anxiously waiting for the IRS to drop a fine 😬
Jen: Opened a hysa for our sinking funds instead of keeping it in our 2nd checking account
Kasey B: Trying to negotiate a lower rate for mortgage renewal 🤞
Becca: Meal-prepped last week in anticipation of not being in the headspace to cook 😢💔 A friend and I are working on compiling a comprehensive list of places to donate re: the war
Maria: Maxed out my Roth IRA! 🙌🏾
Onyx: My fiancé and I paid off $15,000 worth of debt this week! We booth got bonuses & crushed it!
April M: Halfway through Oct, haven't used credit cards once 🙌🏼
Vanessa C: Visited my parents and went grocery "shopping" in their kitchen. Does this count? Lol
Rachel P: I only spent $13 at Target! I got exactly what I needed and nothing else. 🎯
Sarah G: Worked with new CPA who sorted out issue that had us overpaying taxes! refund ➡️ hysa
Marisa G: Saved 1,400 this month. Just 2 months ago was a shopping addict!!
Ari B: Saved and invested $2,000 from last week's paycheck
Amy A: Found a giant pumpkin for $3.49!
Kelly: Spent less than $50 in groceries for a family of 4 🥰
Jessi C: Finally got my wisdom teeth removed! Health investment!
Lily M: Claimed my delay repay as soon as I got home from a late train today (U.K.)
Shifra E: Live with a stranger/roommate so I don't bleed money on rent in the Bay Area