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What’s Poppin’,

This is the Master Money Newsletter. We are the almond milk in your money protein shake. We make it 100 times better than just drinking it with water.

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Here’s what we have on deck today:

📰 Read: The 4 Lies of Buying a House

📺 Watch: The Best Schwab Index Funds

🎧 Listen: The Insane Cost Of Childcare

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Numbers to Know

💰Too many people are cashing their 401(K) when they change jobs.​

💻 4 questions to ask to avoid surprise medical bills.

📈 Here are the cities where $100K goes the furthest.

🤔 5 Things to Know when Creating a Will ​

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When it comes to buying a house, it's easy to get caught up in all the hype. But let's be real: purchasing a home is a major decision that should be carefully thought out, not based on myths and misconceptions.

Unfortunately, these falsehoods have become so ingrained in our culture that most people don't even realize they're buying into them.

As a result, many people end up making the leap into homeownership before they're truly ready or before it's the right move for them.

If you're thinking about buying a house, the first step is to unravel these myths and approach the decision with a clear, objective mindset.

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Myth 1: Renting a house means you are only paying your landlord's mortgage

A lot of folks have this idea that being a landlord is a breeze: buy a property for $1,000 a month, jack up the rent by 10%, and boom – you're rolling in cash.

But that's not exactly how it works in the real world.

Landlords can only charge what the market will bear, which means sometimes they make a profit, and sometimes they barely break even. So don't let the myth of the rich landlord lure you into buying a house before you're ready.

There's no shame in renting, and sometimes it can actually be the smarter financial move. Learn to run the numbers first.

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Myth 2: If you are paying rent you are throwing money away

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When you rent, you are paying for the value you receive. If you don’t receive value, then it does not make sense to rent.

When you fork over your hard-earned cash for rent, you are getting something pretty valuable in return: maybe it's a sweet roof over your head, a killer view, and a cozy place to rest your noggin.

When you pay rent, you're not just throwing money out the window – you're paying for a service, just like when you splurge on a fancy dinner or a great concert.

So don't let anyone tell you that renting is a waste of money. As long as you're getting something out of it that's important to you, that is what matters.

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Myth 3: Housing prices will keep going up.

Mark Cuban said it best: Everyone is a genius in a bull market.

When prices are skyrocketing, it's easy to believe that they'll just keep on climbing forever. We saw it happen in '99, in '06 and '07, and most recently during the wild ride that was 2020, '21, and '22.

But the truth is, these kind of price spikes almost always come down eventually. The math just doesn't add up to keep prices rising forever. In the long run, the price will be higher than it is today, but it is not always at a favorable rate of return.

So if you're thinking of buying a house, it's important to have a solid financial plan in place and stay up-to-date on what's happening in the world. And hey, if prices are high right now, don't panic – just wait it out and see what happens. Patience is key when it comes to making big financial decisions.

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Myth 4: Buying a house is always a good investment.

Buying a house isn't always a guaranteed way to build wealth.

Sure, your home's value could go up and up, and that would be awesome.

But here's the thing: it can take years and years to really see a significant return on your investment. And when you factor in all those sneaky hidden costs (think: down payment, maintenance, property taxes, and more), you might be better off parking your money in a solid S&P index fund.

So while buying a house can be a smart move, it's important to remember that there are no guarantees – your home's value could go up or down, and you need to be prepared for either scenario. It's all about finding the right balance for you and your financial goals.

I am a 10 year homeowner. I will always own a house, but if you can’t afford to buy one do not beat yourself up. Owning a house has an average return of 4%. That is because all the invisible costs associated with ownership. There are a ton of reasons to buy your primary residence, but as an investment should not be one of them. Here are a few:

• You want your kids to grow up in that area, with a great school district and want to build memories.
• The scenery is calming and makes you happy
• Your aging parents are moving in and you need more space
• You want to design a house with your spouse
• You love home repair and making a house your own.
• You just want to and don’t have a good reason. This is the best reason.

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If you want a house, get a house! Just make sure you run the numbers.

Pssst we have a podcast coming up on how to do that!

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📈 Quick Tip Of The Week

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One quick money tip of the week is to review your subscriptions and cancel any that you're not using or don't need. Many of us subscribe to various services and forget about them, but these monthly charges can add up quickly.

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Take a few minutes to assess which subscriptions you're actually using and which ones can be canceled to save some extra cash. I use Rocket Money to track subscriptions.

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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.

​https://kit.co/MasterMoney/high-performance-book-club/entreleadership-20​

We don’t always agree on money issues but this book is great for any business owner.

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The Personal Finance Podcast 🎙️ ​ ​

​The Impact Of Investment Fees (and Why You Should Never Touch Your 401(K)!)​

​The Insane Cost Of Childcare and Ways to Help Reduce That Cost!​

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This Newsletter is Sponsored by DeleteME!

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This information is purchased by data brokers online! You want to get this information off of the internet to significantly reduce the odds of your information being used for financial fraud.

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To do this, I use DeleteMe. They will contact data brokers to remove your information from their database. This saves the average person 80+ hours per year! To get 20% off DeleteMe use this link! ​

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Youtube

The 6 Best Charles Schwab Index Funds to Buy and Hold for Life!

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