Money Musings š Some big news š„³š„³š„³
Iām excited to share a quick upgrade weāre making to the Money Musing thanks to your feedback. š In our 5th Anniversary Survey, you shared that youād love a quick summary of whatās to come to kick off the newsletter. And here it is!
If you love it or have ideas to make this even more helpful, please hit reply and let me know!
What youāll find below:
Reflection: When you need a spending reset
Money Move: Assess Potential Lifestyle Upgrades in Advance
You Gotta See This: Equal Pay Day for Mothers
Reel of the Week: A powerful money reframe
It can happen at any timeā¦ the spending heyday.
Even though I had a detailed budget and travel fund set aside for our trip to Europe, the heyday crept in.
Whatās a spending heyday?
Itās that thing when expenses flow out a little too easily and in higher than usual proportions. Have you experienced it? Once youāre on a roll it can be hard to reel in. š¤
First and foremost, heyday is of course relative and personal to each of us. Iām sure my spending heyday looks very different than say Margot Robbie's and a large part of the population doesnāt even have the financial privilege to have a spending heyday.
When do my heydays happen?
For me, they tend to pop up during the holidays, the summer āļø (Iām a sucker for warm weather activities), when Iām late on my money parties (because Iām less connected to my spendIng) and anytime we have larger expenses come through.
Relativity bias can kick in when my other expenses go up. It's a "I already spent that muchā¦ why not more" kind of vibe. ā Itās not good.
But itās not all bad news. Spending heydays can usually be slowed down or reset. Hereās whatās worked for me and my clients.
Look at it. Keep a money journal, have a money party or actually look at what youāre spending. This can help reel it in quickly. Youāll notice that spending heydays are when you won't want to look at all.
Stop the punishment. If weāre punishing ourselves for our spending heyday it tends to prolong it. This might sound strange, but we rebel against ourselves. Sometimes the overspending itself is a punishment to ourselves.
Do a quick Money Cleanse. Let go of (or pause) all frivolous spending for a day or so. Remember, frivolous isnāt bad. It just means non-essential. This can help us hit the reset and get back to what spending is most important.
Put away the plastic. The goal here is to reconnect with what weāre spending and have our bank account accurately reflect the amount of money we have. Credit cards have a delayed effect because we donāt have to reckon with our spending until we pay our credit card bill. Spending in cash works great for many but is also completely impractical for others. You can also use a debit card or pay off your credit card each week to have your bank account reflect what's actually available.
Have you had a spending heyday in the last year? What worked to get you back on track? Hit reply and let me know.
If you want more support to get your financial goals on track, Iām here for you. Check out my new 1:1 offering. Not sure if itās a fit?
If you can relate to any of the following, 1:1 support could be for you:
Iāve tried to make a budget but I canāt stick to it
I want to feel confident in my financial decisions and actions
I know I need to take action but fear and shame get in the way
I want to learn how to invest but I don't know where to start
Iām not sure Iām saving enough to reach my goals by when I want to. This could be buying a home, paying down debt, taking a sabbatical, starting a family, etc.
I want to enjoy my money and have some peace of mind
I know I want to retire but donāt know if Iām doing it right
Emergency expenses keep derailing my budget
I want my partner and I to get on the same page when it comes to finances
Learn more and sign up to work together here!
MONEY MOVE OF THE WEEK
ASSESS POTENTIAL LIFESTYLE UPGRADES IN ADVANCE.
Youāve probably heard of lifestyle creep. The phenomenon where as you earn more money, your expenses creep up to match, so you never get to save more and often donāt even feel like your lifestyle has improved. If youāve experienced this, youāre not alone - itās very common!
A lifestyle upgrade is different. Itās a conscious choice to take on a new or increased expense because you decide itās worth it to you and fits with your goals. Sounds good right?
Hereās how I assess whether or not to make an upgrade.
Whatās the actual cost per year? Calculate what the upgrade costs in a year. If itās $20 more per month, thatās $240 per year. Or $20 per week, thatās $1,040. Remember, you only have to include the ADDITIONAL cost from what you were already doing.
Does that work with the budget? Is there room in your budget to increase your monthly expenses by $100 per month (or whatever it is)? If not, is there something else youād be able to swap it for?
Whatās the opportunity cost? If you didnāt make this lifestyle upgrade what else would you do with that money? Would it be money going to savings or debt pay down? Or maybe it would be money you could use for your travel fund. š§³
Is it worth it? Will this upgrade bring you joy, make your life easier or reduce your stress? Imagine yourself enjoying this upgrade next month or the month after, would you be happy you made this choice?
Reflect on your answers to these four questions and make your decision. If you can, give it 48 hours before you make your choice.
YOU GOTTA SEE THIS
EQUAL PAY DAY FOR MOTHERS.
Did you know the wage gap is compounded for mothers? Moms Equal Pay Day is on August 15th and the gap is even larger for BIPOC mothers and mothers with disabilities.
Research shows that 80% of the gender wage gap is due to motherhood.
The motherhood penalty is real and raging. Mothers working full-time, year-round make $0.74 for every dollar a father makes.
According to the AAUW: ResearchāÆhas shown that hiring managers are less likely to hire mothers compared to womenāÆwho donāt have kids, and when employers do make an offer to a mother, they offer her a lower salary than they do other women.
Men, by contrast, do not suffer a penalty when they become dads. In fact, thereās some evidence of a "fatherhood bonus" in which their earnings actually increase.
Scroll through this post for 8 ways to fight the motherhood penalty.
your weekly money wins
Here are all the amazing money moves you made this week ššš
Allison S: Created a high yield savings account!
Jessica M: Paid off 2/3 of our credit cards! š„³
Andrea J: Paid off 2 CCs, $500 to a 3rd. Had money date with my spouse + feeling accomplished!
Jani H: Made an offer on a house that was accepted!!!
Jessica B: Completed week 1 of No Amazon August! š
Ali D: Reduced my internet bill from $55 to $36. I don't care that my promo rate expired!
Becca M: Opened a HYSA
Raenelle: I used my instapot instead of ordering food
Caitlen: Paid all cards in full, took advantage of discounts and prepaid my therapist lol
Christina L: Started using MealPal! Saving me a TON on lunch in NYC
Claire H: Paid off a credit card!!!!!