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What’s Poppin’,

This is the Master Money Newsletter. The money newsletter that brings more heat than Guy Fieri.

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Here’s what we have on deck today:

📰 Read: Break the Paycheck to Pycheck Cycle

📺 Watch: How to Build Wealth from $0

🎧 Listen: How to Talk to Your Spouse About Money

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Break the Paycheck-to-Paycheck Cycle NOW! 💸

Today, we've got an eye-opening special report for you that's hotter than your morning cup of joe. Remember that time when you thought living paycheck to paycheck was a "millennial thing"? Well, brace yourselves, because the numbers are in, and they're SHOCKING.

PYMNTS and LendingClub recently dropped a bombshell report called "New Reality Check: The Paycheck-to-Paycheck Report." The findings? A staggering 60.1% of consumers are living paycheck to paycheck, with millennials leading the charge at 73.2%. But don't get too comfy, Gen Z (65.5%), Gen X (64.2%), and even baby boomers (49.5%) are caught in the cycle, too.

So, what can you do to break free from the paycheck-to-paycheck prison? Prepare to level up your financial game! 🥷

🔎 Track Your Expenses

It’s time to make a choice to change our financial lives. How do we do that? By looking backward so that we can move forward.

You have to get a clear picture of where you stand.

I know living paycheck to paycheck can be hard. I did it when I got my first entry-level job.

That is why we are doing this, to find the leak sinking our wealth-building ship.

You will have one of two problems. An income problem or a spending problem. Find which one you have and do whatever you can to fix it.

Start by getting a clear picture of your spending habits. Record every purchase you make for a month, then categorize and analyze where your money goes. You might be shocked to discover how much you are ballin’ out at the grocery store.

🎯 Create a Realistic Budget

Let’s get real. Most people still don’t budget.

I know you hate that word. Most run for the hills when I bring it up. In fact, anytime I have the word budget in a podcast title, that episode has fewer downloads.

Here’s the reality check. If you do not consciously spend your money in some way, you will never get ahead with money.

Here is what you need to do.

Based on your spending analysis, create a budget that covers essential expenses, savings, and a little wiggle room for fun. Remember, the key is to make it sustainable and adjustable as your circumstances change.

I use YNAB and Rocket money to budget my money. Use what works best for you.

🚀 Build an Emergency Fund

People who live paycheck to paycheck are in that situation because they don’t have cash on hand. If a problem comes up, they have to go in reverse to fix it (by going into debt).

If that is you, I feel your pain. I was in that same situation.

What we need to do is build up an emergency fund. This is going to give you the relief needed.

First, start by building up a cash buffer large enough to cover your insurance deductibles. Usually, this will be around $3,000.

Then, I want you to put your foot on the gas. Save up 3-6 months of living expenses.

If you have kids or dependents, don’t mess around. You likely need 6 months saved up.

🤑 Crush Your Debt

Create a debt repayment plan that prioritizes high-interest loans first. Consider consolidating or refinancing if it lowers your overall interest. Remember, interest is the enemy, so the sooner you pay off that debt, the more money you save. 💸

We have a free debt course here that will walk you through how to do this.

💡 Find Side Hustles:

Boost your income with side gigs that align with your skills and interests. Freelance, teach, or sell your crafts online – the possibilities are endless! 🌟

I mentioned some of my favorites here.

📈 Invest in Your Future:

Start saving for retirement, even if it's a small amount. Compound interest is your friend! Explore various investment options, such as 401(k)s, IRAs, and even robo-advisors to grow your wealth. 🌱

🧠 Educate Yourself:

Stay informed about personal finance and continuously improve your money management skills. Subscribe to podcasts, read books, or join financial communities to keep your money game strong.

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📈 Quick Tip Of The Week - Keep an Eye on Your Credit Utilization Rate

Today ya boi has a quick tip on the importance of your credit utilization rate and how it works. This handy little number can make all the difference when it comes to your credit score, so don't underestimate its power!

☕ Credit Utilization Rate Defined: Your credit utilization rate is the percentage of your available credit that you're currently using. It's calculated by dividing your total credit card balances by your total credit card limits.

💳 The Magic Number: The general rule of thumb is to keep your credit utilization rate below 30%. But we want to have amazing scores. Studies show people with 790+ scores use 7% or less of their utilization rate. Doing so signals to lenders that you're responsible with credit and not overextending yourself financially.

📈 Why It Matters: Your credit utilization rate makes up a whopping 30% of your FICO credit score! Keeping this number low can help boost your credit score, making it easier to qualify for loans, secure better interest rates, and even land that dream apartment.
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🔧 How to Keep It in Check:

1. Monitor your balances regularly and make an effort to pay down your debts.
2. Request a credit limit increase from your card issuer if you have a good track record.
3. Spread out your spending across multiple cards to avoid high utilization on a single card.
4. Set up balance alerts to help you stay within your credit utilization sweet spot

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Credit Card Deal Alert! 💳

There are two awesome deals this month:

The Chase Sapphire Preferred bonus has soared to an impressive 80,000 points when you apply online, making it a fantastic offer if you qualify. The bonus is usually only 50,000 points. This is my daily driver. I use this card for most of my purchases because it has amazing travel benefits. If you choose to apply online, I'd appreciate it if you'd use my link. Just make sure you meet all the requirements for Sapphire bonuses to be eligible.

The Citi / AAdvantage Platinum Card currently features one of the most remarkable bonuses out there, with 75,000 miles up for grabs. As AA isn't a transfer partner for Amex, Chase, Citi, or CapitalOne, their miles can be challenging to accumulate. So, if you've been eager to stock up on AA miles, now's your chance. Learn more here.​

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News You Can Actually Use

Financial Struggles: Millennial Edition 📉

A new report highlighted by CNBC reveals that a whopping 73% of millennials are living paycheck to paycheck. The study, conducted by PYMNTS and LendingClub, found that overall, 60.1% of consumers face the same struggle. The paycheck-to-paycheck lifestyle is widespread across generations, affecting 65.5% of Gen Z, 64.2% of Gen X, and 49.5% of baby boomers.

The Great Housing Shortage 🏠🔍

​Money.com investigates the reasons behind the current housing shortage in the US. Factors contributing to the crisis include a scarcity of new construction, increased demand from millennials entering the market, and homeowners staying put due to low mortgage rates.

Riding the Stock Market Waves 🌊📈

Darius Foroux's article on stock market cycles provides valuable insights into the different phases of market cycles and their significance for investors. Understanding market cycles can help you make informed decisions and improve your long-term investment strategy.

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High-Performance Book Club 📚

I get a ton of questions from listeners and readers as to what I am reading. So we decided to let you know via the newsletter. The High-Performance Book Club will be a way to share this. If you want to be Elite in your career, business, or with your wealth, then welcome to the club. If you would like to see our previous picks, you can find them here.

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​

The Personal Finance Podcast 🎙️ ​ ​

​Should You Max Out Your Roth IRA or HSA? (Money Q&A)​

​Should You Max Out Your RoThe 5 Step Master Plan to Talk to Your Spouse or Partner About Money​
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Youtube

​10 Steps to Get Rich When You Are Broke | Starting from $0
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