Femillionaire: The Movement

By reading this post, you’re ready. Or maybe you don’t know if you’re ready, but your curious.

Either way, you’ve found the right place.

Whether you’re sixteen and just discovered spending money, twenty-two and lost AF with student loans, thirty-five and in debt to your eyeballs from your twenties- you’re here. You’ve done the hardest part, which is just showing up and paying attention.  I want you to know this isn’t complicated and you can take control of your finances and take control of your life.

Welcome to Femillionaire. You’re already on step 2.

What is Femillionaire?

Femillionaire is exactly what it sounds like Female + Millionaire, Femillionaire. Maybe it’s tacky, maybe it’s catchy. Either way, I don’t care. What I do care about it turning you into a financially independent, strong woman.  As you read Femillionaire material I want you to feel empowered and given the tools to be successful right now with your money and successful in ten, twenty, and thirty years into the future. Femillionaire is my way of educating women and girls to actively be involved with their finances.

With the steps, tips, and advice I give, your future millionaire status is set in stone. You’re not going to be selling shakes, teas, or wraps. You’re going to be investing. You’re going to be smart. Your definition of financially independent means you don’t have to work again- ever. Not a hoax work from home job.

Welcome to the Party.

Who is Femillionaire for?

Femillionaire is for every woman who doesn’t know how much they make per pay period, for every woman who doesn’t know how to invest, for every woman that has stayed in a terrible situation due to lack of money. Femillionaire is for eradicating fear in women over money, for educating women on how to handle money. Personal finance isn’t taught in schools, and outside of school usually boys get ‘the talk’ when it comes to finances. We’re breaking down barriers between women and their money.  We’re building the next Buffetts and financially secure women who aren’t afraid of living a life they deserve.

Let’s cut it short- how do I become a Femillionaire?

You need to have passive income. The most typical type of passive income is investments, like ETFs. You invest your money, it earns you more money in the stock market, and eventually you’re at a big, fat $1 million.

It’s a bit more complicated, and it takes patience and diligence. Femillionaire isn’t a diet pill, it’s a life style change. If you want to drink tea that makes you shit, look elsewhere, sis.

Femillionaire will give you the education to understand the brief how to above. Femillionaire will hold your hand and guide you- and hold your hair when you puke.

Wait- but why do you even want to become a Femillionaire?

Maybe your goal isn’t to have a million dollars or more.

That’s okay, but you’re wrong- we’ll get to that later.

Most likely right now you want financial stability and I applaud and cheer your for that! Femillionaire will prove useful for you to decrease your debt, and increase your net worth. Following Femillionaire advice will pull you from living pay check to pay check to thriving in today’s world.

Maybe you already have a 401k, but are unsure of how to set up an IRA, or how to choose a Traditional vs. a Roth. Again, Femillionaire will be valuable to you too!

Maybe you’re already a Femillionaire and you like reading positive shit. Cool, welcome! I would also love to hear your story!

No matter where you’re at with your journey, I want to invite you to Femillionaire. I want you to feel confident that you will become a millionaire and take control of your finances.

Welcome to the Party – Let’s get started!

 

Female Fridays femillionaire

WARNING: Bad Debt Ahead

Helllo!~ Another week, another financial blog post. How has your week been? Mine has been going pretty well, and I am super stoked about today’s topic.

Did you know there are two types of debt? Now, I know if you’re reading this you think debt is most likely bad. That ALL debt is bad. Bad, bad, bad. But, what if I told you there is Good and Bad Debt? I mean… most debt is BAD, but there are some good guys too.

Today I want to focus in on those bad guys – the bad debt, and see what it is and how we can combat getting ourselves into it.

 

Defining Bad Debt

Bad debt, in the Personal Finance sense, is debt that has massive depreciating value or has an extremely high interest rate. A high interest rate I would consider as anything >6%, because that’s definitely worse than long term market gains. But, a mortgage isn’t bad debt and neither is a business loan (for the most part), so if an interest rate is >6% on either of those things, I would not consider them bad debt, except in extreme circumstances.

 

What is Bad Debt? – Common Examples

 

Credit Cards are the most common form of bad debt. Do you know the interest rate on your credit card? Most are >18%! This rate is significantly higher than most consumer loans. The payment schedules are also maximized so the debtor will owe as much money as possible.  Any type of balance on a credit card is never a good idea.

Cars are the second form of bad debt. How many people do you know with $30,000/yr income or $60,000/yr income with cars that are $30,000 or more? Thousands of Americans fall into this trap of having a high car payment. While the interest rate on car loans is often low, transportation costs per month should be <10% of your income. This includes gas, maintenance, registration, and a car payment. Having a car payment you can’t afford on an asset that loses thousands of dollars in value within months is never a good idea.

Consumable Goods America, and many globalized cultures value spending money and the “consumer debt”. Have you ever gone into debt during the holidays, or spent more than you planned? This is consumer debt and most things bought have no or little resell value.

“Transportation costs per month should be <10% of your income. This includes gas, maintenance, registration, and a car payment.”

 

How to Avoid Bad Debt

If you’re familiar with personal finance or the Femillionaire mindset, you know exactly what I’m about to say. If not, that’s okay! Welcome to the club.

Step 1: HAVE AN EMERGENCY FUND. I cannot stress this enough. Seriously, you need to have savings set aside for when shit hits the fan- because it will, and usually it’s a lot of shit all at once.  Just start. saving. now. Even if it’s only $15 a month, having a $100 emergency can compound into $200 very quickly when put on credit cards.

Step 2a: Be smart and have awareness of your financial situation, especially when buying a car! Buy a car that you can afford, has low monthly payments, will be paid off in 36 months, and that you can put a big, cash deposit down on. I know this is a lot and often means you won’t be buying a new car, but there are so many used cars that are only a couple of years old, have low miles and are incredibly reliable.

Step 2b: Buy a reliable car! Research which brand/years are most reliable. Generally, you can never go wrong with a a Honda Civic, Honda Accord, Hyundai Elantra, or Hyundai Sonata.

Step 3: Self Control. This is going to be one of the more challenging steps (if not the most challenging!). You can have an emergency fund and an affordable car, but still lack self control.  If you don’t have self control,  you’ll find yourself in a cycle of gaining bad debt, paying it off, and taking on more bad debt.

 

“You can have an emergency fund and an affordable car, but still lack self control.”

 

The Bottom Line

Bad Debt is, well, bad.  It’s bad for your wallet and your mental state. Avoiding bad debt at all costs should be your primary goal. If you already have bad debt, paying it off before all other debt should be your priority.

 

Have you ever had bad debt and paid it off or are in the process of paying it off? I would love to hear your stories below!

 

Female Fridays Finances financial independence

Savings vs. Investments – Aren’t they the Same Thing?

Happy Femillionaire Fri-yay! Well… Not so Fri-yay as this post goes up late…. You know what my plans are for the week? Get. Shit. Done. Same as any other week. But I still love Fridays, mainly because it means new Finance tips on my Youtube Channel and here! Yay!

In this first post of 2019, and the first video in my Youtube playlist, Femillionaire, I want to start with a two basic definitions that can alter you from being comfortable, to being wealthy and financially independent.

Savings vs. Investing

I want to touch on the topics of savings and investing today and the key differences between the two.

Definition

Savings

Generally savings are in cash accounts held at your local or online bank.

Investments

Investments are investing in something with the intent to see your money grow.

Savings are held, investments are for growth.

Examples

Savings are cash in a savings account at your bank. You might keep savings in a checking account (which isn’t a great idea!). Savings can also be stored in Money Market Funds.

Investments are stocks, mutual funds, property, gold, or even in yourself. Anything that invest X gets you Y, where Y > X.

Purpose

Savings

Saving money in a bank account has one soul purpose. It is short term money that you need in order to fulfill a want or necessity. There are a few things that need defined in that sentence.

First, short term. What is short term in terms of your money? Short term is anything less than five years. So, any savings should only be done for something that is 5 or less years away. This includes a house, a car, a new purse, a baby, etc. Short term also mean urgency, if an emergency happens, you need cash now. 

Let’s break down the second part of that sentence, fulfill a want or necessity. Yes! Savings isn’t just for a rainy day fund (or to the more financially aware student, Emergency Fund), but is also for fun things like vacations, big projects, etc.

The final intent of savings is that it will be spent. You just may not know when.

Investments

Pay attention! This is where  we go from cash rich to actually wealthy. The purpose of investments is to increase one’s wealth by converting one amount of money into a larger amount of money. The purpose of investments are that they take time, mature, and when they mature your money has doubled, tripled, or even quadrupled- something you certainly wouldn’t see in a savings account. Investments also aren’t actively spent until they’re used to help fund your retirement or your next big project.

 

Returns

Savings

Savings is going to have very little returns. I highly recommend parking any large amount of cash you do have (>$3,000 saved) into a High Yield Savings Account. These accounts will at least earn you 2% as of me writing this article. My current Synchrony account is at 2.2%.

Investments

Investments, historically, have a much higher rate of return than savings, primarily because they increase in value over time. While investments may decrease for a short amount of time, history proves investments increase wealth and net worth.

Risks

Savings

I know what you’re thinking. You’re thinking “gotcha bitch” TRY to tell me that savings is risky and a bad idea.

… Okay, I will. Savings is incredibly risky when it comes to your money.  Are you going to suddenly have pennies, like you could with an investment? No. you’re just losing critical compounding time in the market when your money could be working for you.  Also, you technically are losing money…. if inflation is greater than your savings account rate, which, it most likely is. So the $100 you have in savings today, is still going to be $100 in 10 years, but worth only about $80 of today’s dollars.

Investments

I think it’s quite obvious why investments are risky- it’s why many people, especially women, don’t invest to begin with. Investments could be $5,000 one day, and $0 the next. If you invest in a company and it goes Bankrupt, you’re out of luck. If you buy a house and it burns down before you can buy insurance, you’re out of luck.

What we need to realize that yes, stocks, real estate, etc are all risky. However, with due diligence and staying the course, especially when things are going south, Investments out perform cash. Every. Single. Time.

Liquidity

The availability of liquid assets, i.e. cash.

Savings

Savings are quite liquid. You’re able to pull out all the cash you need, generally on a single day, from a single bank. Liquidity is one of the key reasons for keeping cash.

Investments

Investments are not as liquid as savings, however different Investments have varying levels of liquidity. Stocks in a normal, health year of investment are pretty liquid. It easy to sell stock and have the money in your bank account less than a week to two weeks later. Real estate as an investment is a different breed. One can flip a house, or sit on it for month – even years – until someone wants to buy or rent it from you.

 

In Conclusion

I hope the difference between savings and investments is clear to you now. In a way, investments, especially buying into mutual funds, are basically like saving with a slightly better interest rate. That is, until you have enough money where compound interest really takes root and you see your numbers start to soar.

After this article, I hope you are able to correctly discuss savings and investments and continue to invest and grow your wealth!

 

For the more audio readers, below is my Youtube video covering the same topics as above. Thanks!

 

Finances Uncategorized

2019 IRA LIMIT INCREASES by $500!

You heard it here first folks, in 2019 IRAs are increasing their limits from $5,500 to $6,000 per year. The $6,000 contribution is based on the government’s fiscal 2019 calendar, which starts in April 2019, but you should be able to start contributing larger amounts for the Fiscal Year starting in January. Just make sure you’re 2018 IRA account is already maxed!

How Much Should you Contribute per Paycheck to Max Your IRA?

  • If you are paid monthly (12 paychecks/year) and you max it out in 12 months, you need to contribute $500/paycheck to max out a 2019 IRA.
  • If you are paid bi-monthly (24 paycheck a year) and you want to max your IRA, you need to contribute $250/paycheck to max out a 2019 IRA.
  • If you are paid bi-weekly (like me! 26 paychecks a year) You need to contribute $230.76/paycheck to come close to maxing out a 2019 IRA. You’ll need to contribute an additional $0.24 to reach $6,000. Easy peasy.

 

For me, this increases my per-paycheck contribution up from $212 to $230. I’m not quite sure if I’ll be getting a raise this year as I plan to negotiate for more PTO, way more PTO.

But, I also may not be doing the per-paycheck method anyway. I anticipate a bonus of ~$3,000 and if I actually receive it I’ll dump it all into my IRA to already have it half maxed.

 

Do you max an IRA every year? What method do you use to max it out?

 

Finances financial independence

Where have I been?

I’ve been busy. Very busy.

I have been BUSY and spending way too much money. Like, way too much. BUT the things that I’ve recently bought brought me more joy than anything else this past year. I mean, besides my cat, my boyfriend, and our trip to Cabo. I’ve learned a really important lesson on how spending money can be beneficial, and it’s not all bad.

My New Computer

I built and bought a new computer. First, I’m not hugely into computer components and understanding every last detail about them, but I do have enough knowldge to be intereted in how to put a computer together and how to make a dope as fuck computer. I wanted something with speed, agility, and beauty. Also, my current 8GB of RAM laptop was dying. It was time to buy something else. And this time, I finally wanted to buy/build something I never had growing up, a computer that was fully functional for what I wanted to do.
I went for a super computer with an AMD professor, 512GB of storage on an M.2 SSD  that clipped right into the motherboard. Building the PC was a whirlwind of events. But eventually, I turned it on and saw the MSI home screen, figured out how to install Windows, and never looked back.
My new computer is a total UFO, I can play games, create huge spread sheets, and do what I really wanted- edit videos.

I’m a Youtuber

I’ve wanted to join Youtube for YEARS. When I was in college, I couldn’t afford Netflix or Hulu and if I wanted to watch TV I would go to websites that allowed streaming. Que Youtube. I found free entertainment with some of the funniest, most creative people who were living lives I wanted so badly. I watched many girls around my own age, including Remi Ashton, Alisha Marie, Casey Holmes, and more. I lived vicariously through their Black Friday shopping adventures and their Target Hauls. Their DIYs were so cute and for five minutes at a time I could pretend I didn’t have homework, work, or student debt. I could pretend I just hauled a bunch of makeup from Sephora.
I finally took the plunge this Fall. After I built my computer, I bought lighting, created a background, and started brainstorming video ideas. I’m using a GoPro I bought in the Spring to film with, and it’s not great, but I’m working on my content and what I want my channel to be. Of course it will focus on finances and building income and wealth. But I also have some Hauls, DIYs, and random videos up as well. I’m working on my video editing skills and having lots of fun while doing so.
It feels like something I’ve wanted for so long is finally happening and I couldn’t be happier.
Check out my <a href=”https://www.youtube.com/channel/UClrLWlfevT77PN9jheHrCrQ?view_as=subscriber&#8221; Youtube channel </a> if interested! I’m going to be adding YouTube videos to more of my posts!

I Threw a Huge 25th Halloween Birthday Party

It’s not every day we turn 25.  And not everyone has such a close birthday to Halloween.  I was blessed with both of those things this year, along with enough disposable income to throw a huge party with the perfect food spread, tons of booze, and the perfect decor. All in, I spent about $2,500, along with a $562 gift from my boyfriend the party cost $3,000. And we had it in our condo!
Halloween decor is already marked up because it’s a holiday, and a few items were even more marked up because they’re such specialties. Enter <a href=”https://amzn.to/2CEfbdd”&gt; blood bag drink holders.</a> All the money was well spent, and I now have memories that will last the rest of my life. Clean up was sticky and the hangover was real, but I would throw it again and am even contemplating a huge 30th…

<h2> All In </h2>

All in, the past three months, including my rent and normal purchases, I’ve spend >$7,000. But it’s all been worth it. I think I’m finally understanding investing in your hobbies, because now I CRAVE to be on my computer (even more so than before) and I hope I’m inspired to publish more on my blog and create great Youtube content.

 

Until next time!

Finances

I’m Holding on to Too Much Cash – Will I Regret it?

Too Much Cash

 

I’ve reached the point with my finances where I have options. While I can’t have everything, I can have anything if I set my mind to it. And while I lean to be more conservative with my spending habits, I do love nice things. I always have. Even while I was growing up in a house-poor household with maxed out credit cards, I wanted a Louis Vuitton. Now, I had no idea how money worked, and the important difference between saving and investing.

Where My Savings/Investments Go

Currently, I contribute $1,211/ every two weeks (or 26 times a year) to my brokerage/Roth and $500 to my HYSA. Meaning every paycheck I’m saving almost 30% as cash. This doesn’t include money I fully intend to spend, like for the holidays, my cat, or a vacation.

Right now, cash is sitting at 21% of my NW. With my current rate of contribution, cash will ultimately reach 24.4% of my NW before decreasing- assuming I don’t spend any of it.

But that’s just it, I do plan on spending this money. Just not at Sephora. hah.

Big Life Events

I call this my “Big Life Events” Fund. The general rule of thumb is if an event is >5 years away, don’t put it in the stock market. And, while I don’t plan on buying a house in less than 5 years, I do if the market retracts. And if the market goes down and my savings for a house is in the market, well, there goes my savings until the market recovers.

I want to be prepared for if/when the market takes a nose dive.

I also want to be prepared for:

  • An Emergency (duh, some of this money is my emergency fund)
  • My annual max out of pocket
  • A new-to-me car in ~2 years
  • A potential down payment on a house
  • Replacing my laptop (even though I’m kind of saving elsewhere)
  • A pet emergency
  • I have really bad teeth, over my life I’ll need ~$40k in dental work
  • A Loss of job
  • Taking time off of work if I burn out
  • etc.

For me, there is no Plan B if I lose my job. There is no safety net other than the one I create to catch me if I fall.  I was very poor once upon a time, but I won’t let it happen again.

What Cash Makes me Lose Out On

I save $13,000 in cash a year (if everything go according to plan [it doesn’t]). On this $13,000 I make 1.085% currently.

Over a decade, if I were to invest it I would come out with $192,000 at 7% return. By saving it, I would come out with $144,000, or a difference of $52,000.

$52,000 is a lot to lose out on over a decade. $52,000 could be one year earlier of committing to FIRE.

But one year earlier doesn’t compensate for a cash security net right now. Perhaps once I get to a certain number and have a more reliable care I’ll invest more of it. But for now, I’ll stay a little cash rich.

How much cash do you hold on to?

Finances financial independence My Finances

August 2018 – My Road to Financial Independence

My Road to Financial Independence 201808

 

This is the introductory post to my journey to Financial Independence. I’ll probably do these quarterly or even semi-annually, with a large one done every January for a true annual check-up.

My current goal is to fatFIRE between 45 and 50 with $3.5Million in invested assets. This does not include any equity in property or cash. With this fatFIRE amount, I’ll be able to take 3+ international vacations a year, buy whatever I want, and maintain a very fun and social lifestyle. This amount would also mean I no longer have a mortgage or am very close to paying the house off. I assume if I have a partner at this time, they’ll have their own assets or will continue to work.

This number can always change, and who knows, once I’m fully FI I may not want to Retire Early. But this is my goal for now.

My Road Map to My Current Status

September 2014

-$25k Networth

May 2015

-$16k Networth

January 2016

$0 Networth!

  • $4,500 in a 401(k)
  • $4,500 in student loans left

March 2016

  • Debt Free!
  • Salary increase to $70k, still contributing 10% to 401(k)

January 2017

  • $18k Networth
  • Emergency fund funded!

January 2018

  • $50k Networth

August 2018

  • $93k Networth
    • $18k Cash Savings
    •  $7k Checking/Savings that will be used eventually
    • $68k Invested in RothIRA, 401(k), HSA, and brokerage
    • $2K in Crypto, going to HODL this
    • Currently have 2k on my credit card (this gets paid monthly)

Current and Future Goals

I turn 25 this October and my goal by January 2019 is to be worth >$100k. Right now I’m on track to be there, I just need to be careful with holiday spending. I’m also throwing a large birthday party in October and I’ll need to monitor those costs.

My current job does not have a 401(k) and maxes my HSA for me. So I have no pre-tax savings on my income.  Of my take home pay, I invest 47% and save 19% for a total savings of 66%. I do save other monies, but it’s all earmarked to be spent (i.e. I save money to travel, but don’t include it in the 19% savings above). The cash savings above is for various things, a new car, getting my teeth done, maybe a boob job, maybe for a one-day wedding, a house down payment, etc.  This is also my emergency fund (although that is currently fully funded).

If I want to buy myself something nice and “save” for it, that money also come from elsewhere, not from my cash savings.

In 2019 my goal is to invest $45k and save $6,000 cash.  Ideally, if the markets stay stable my net worth at the end of 2019 will be slightly over $150k. But the faster my NW grows, the better. I’d love to push for $200k. I also don’t make “Net worth” goals in the short term, the market crashing is out of  my control. Most of the money from my 2019 goal can come from my main income. But, I strive to diversify my income as well. Follow those pursuits in my Extra Income category!

financial independence My Finances