Money

  • The best way to increase my financial savings is to work more. The second best way is to spend less money.
  • Budget to spend less. Create a budget to track all recurring costs, and minimize misc costs.
    • Relatively fixed (can change, but harder)
      • Housing: rent, utilities, internet, insurance
      • Transportation: insurance, gas money, car payment
      • Medical: insurance, prescriptions, appointments
    • Variable costs (can easily change based on how much work I want to do)
      • Food: groceries, eating out
      • Fun: drugs, partying, entertainment, sports, etc.
      • Tools: clothes, packs, home, car, etc.
  • Building savings funds.
    1. Emergency fund with 3-6 months worth of expenses in a high-yield savings account (SoFi?)
    2. 401K up to company match
      1. Roth or Traditional – Roth you pay taxes now. Traditional pays taxes on withdrawal. Both never pay taxes on earnings.
    3. Max HSA (if on a high deductible health plan)
      1. Triple Tax Advantaged – don’t pay taxes on money in or out, don’t pay taxes on earnings
      2. Treat as a retirement account, not a health account, because of the tax advantage – can take money out for any use after 65
    4. Choose between funding IRA/401K, then do the other
      1. Some IRA or 401K have better investment options…
    5. Brokerage Acct (Schwab) for more liquid funds in ETFs