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” 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”> 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!

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?

Financial Independence – What it Means to Me

Financial Independence What it Means to Me

Financial Independence has Changed my Life

We all dream of the day we can retire. When we’re in our 60’s and can sit around, binge Netflix, travel, spend time with family, and most importantly- do whatever the fuck we want when we want.

This is years away, it seems like a lifetime away, and to be frank, it kind of is. You prepare for adulthood for 22 years, work for 40, and relax for, maybe 20 if you’re lucky while your body slowly shuts down.

That’s no life I want to live.

But I also don’t want to be the stupid twenty something, going into debt and blowing through cash now in order to experience everything right now and face the consequences later.

There is a middle ground, and it’s called Finance Independence / Retire Early or FIRE. Fire is the financial concept that you can have your cake and eat it, too. You can have the live you want and live it for 40+ years rather than maybe 20.

So, What is Financial Independence?

Financial Independence isn’t ‘Fuck You’ money. While it can be used as that in dire circumstances, Financial Independence is a nest egg that you have built and invested to live the rest of your life on. Now how do you do that?

Take your future expenses and multiply them by 25. That is how much you need to have invested (some people say a mix of saved/invested, but I’m conservative, so invested) in order to be Financially Independent.

So, if you need $30,000 a year to survive, you would take $30,000 x 25 = $780,000 to be Financially Independent. Note the $30,000 is the pre-tax amount you would withdraw, and from many accounts would have to pay taxes on it.

There’s a lot that goes into that $30,000 or cost of living number. This is why it is critical to track your spending and anticipate future spending (kids, kids college, moving, relatives moving in, illness, etc.).

I want to be Financially Independent so I can choose how to live out the rest of my life and spend my days. It also adds a huge security to one’s life.

<h2> What is Retire Early </h2>

It’s exactly what you think it is! Retire before 65, or more and more so, before 67. Many people who FIRE try to do so in their late thirties to late forties. But anyone retiring before 65 by choice should be celebrated as retired early.

 

I’m not quite sure if I’ll retire early once I’m at a comfortable level of Financial Independence. It’ll depend on where I am at in life, how many kids I have/want, how much I love my job, etc.

 

But, Financial Independence gives me options and freedom- and that’s what I want most. The freedom to wake up at 8am, or 9am, or 4am. The freedom to have brunch at 11am on a Wednesday or sip mimosas in a hot tub on a Tuesday morning. Life is about choices, and this is my financial choice.