What’s Poppin’,

This is the Master Money Newsletter, the money newsletter that drops you a little surprise in your inbox every week. We're the gift that keeps on giving. Kinda, like the amazon delivery person.

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Here’s what we have on deck today:

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-The $1M Housing Decision

-The Book of The Week

-Travel Hackers and Coffee Drinkers Unite!

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🧳 Grab your suitcase it's time to unpack.
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Truth be told, your living sitch’ is one of the few things that will impact your money significantly. What we are going to be yapping about today is something that seems ever so minor, but it makes a whale of a difference.

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How big you ask? Well, get a load of this.

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Over a million dollars in opportunity cost.

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Let me show you how much this truly impacts you with some good ol’ fashioned numbers.

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Let’s say someone buys a $500,000 house. That may be cheap if you live in San Francisco or New York and expensive if you live in Toledo Ohio. Don’t worry about the price, just roll with me here.

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If someone bought the house during the peak of the pandemic, you could have snagged a nice 2.5% interest (I would know because I did this).

But just two years later, the same house would have a 6%+ interest rate. This may seem like a minor problem on the surface, but let’s break this down by monthly payment with the most common term for a mortgage, 30 years.
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• 2.5% Interest Rate = $1,975.60
• 3% Interest Rate = $2,108.02
• 4% Interest Rate = $2,387.08
• 5% Interest Rate = $2,684.11
• 6% Interest Rate = $2,997.75

You can probably already see the problem. The total difference between 2.5% - 6% is $1,022.15 a month!

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Which is $12,265.80 per year. Just as a standalone number over 30 years, this comes to $367,974.

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Here is a live look at me the first time I did the math:

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But you know ya boi can’t stop there, so we have to look at the opportunity cost. Meaning how much you will forgo if you invested this money in the market.

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Boy oh boy is this something else. I hope you are sitting down.

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-If you invested that money with a 10% rate of return, you would have $2,108,225.87.

-If you got an 8% rate of return: $1,439,538.70.

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This is one of the most impactful things you can focus on when it comes to your money.

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How to make sure your rate stays lower:

1/ Protect your Credit Score (this is why it matters).

2/ You can also pay for points up front with the lender (this matters if you think it is your forever home).

3/ Refinance high-interest rate mortgages when The Fed lowers rates. Just make sure you keep the same maturity date on your mortgage. If you have 23 years left, re-finance for 23 years, not 30. Otherwise, you are just re-setting the loan.

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The worst part of the rise in interest rates is many homeowners are now being priced out of being able to afford a home. NAHB just found that Nearly 7 out of 10 households can’t afford a new median-priced home.

We have some additional content coming to help you navigate that.

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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.

This week is one of my favorites GRIT by Angela Duckworth​

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10-second tip of the week ⏰

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Starbucks and Delta are linking their rewards program. Every dollar you spend at Starbucks earns one mile in the Delta SkyMiles program. And you still keep your regular Starbucks stars. This is a nice little addition to your pumpkin spice latte addiction if you are a travel hacker.

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Podcast/Youtube

The episode this week is super important, make sure you listen! There is a life changing shift happening.

​The Great Wealth Transfer Has STARTED (Here is How to Take Advantage of It)

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Thanks to Ka’Chava For Sponsoring the show! Go to kachava.com/pfp and get 10% off on your first order.

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​Youtube: How to Turn Your Money Around in 6 Months or less. ​

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