Seasonal Worker Money Talk Session 5
Seasonal Worker Money Talk Session 5
I just read a quote on twitter, “If you can’t manage $10 you can’t manage $10,000.”
Part of what I hope people are getting from these discussions is we want to be intentional with our money.
Despite any romantic visions, the grind of living “paycheck to paycheck” can be extremely detrimental to our physical, emotional, and spiritual health.
We work hard for our money and it would be nice to use it to our advantage!
The other day it came up how Ramit commented that when he has gotten “surprise” bonus money he will often allow himself to spend half of it and save the other half.
We’re all on our own paths. If you have a mountain of debt with years to go before you know realistically you will pay it off – spending half of the surprise money might be a great reward.
If you have less than a year before you pay off all your debt – then maybe putting that surprise money towards that goal of being debt-free feels more energizing.
The point is – with either scenario – you are being intentional with your money.
To the quote above about managing $10 vs $10,000. I have seen this attitude of, “Well, it’s only $10. If I had more money then I would learn how to manage it better.”
It’s the opposite! The less you have the more you want to learn the skills to be able to manage your finances.
And even more so, the lesson I have seen over and over again – act as the future self you want to be.
Question in our Seasonal Worker Money Talk:
What have you heard or gotten from these classes so far?
I thought this would be a good time to check-in.
The technique of asking people to repeat what they have heard is a tool I learned from working in wilderness therapy.
We would often state something or share our thoughts and then ask those listening to repeat back what they heard.
I might think I’ve done a great job leading these discussions. I might think I have been effective in communicating and providing tools and techniques to achieve financial independence.
However, what if I ask this question and you repeat back to me, “Well Tiff the thing I have heard from this class is I have to count every penny the rest of my life or I will fail at financial independence.” Then I know somewhere I’ve missed the mark.
The tool/technique to ask people to repeat back to you what they have heard is a life skill. There can be so much value in doing this. Put this in your tool belt and use it when applicable.
So…what are the takeaways you have gotten from these sessions so far?
CD’s – What they are and Why they might be a good idea for you!
Last week in a quick ask, several of us were not familiar with CD’s. One of us was quoted saying, “Oh yeah, I kinda heard of that. I’m not really that familiar, I just know my mom wants me to get one.”
Ironically (or perhaps not) I simultaneously got this email from Fidelity about opening a CD as well. This is a great article to peruse, however, my recommendation is not to get caught up in the CD ladder stuff they are talking about. (At least for now – just get the idea of a CD might be a very good thing for you to start with!)
So what is a CD?
CD is a Certificate of Deposit.
You are giving your $ to a bank or institution for an agreed-upon amount of time.
In return, you generally get a higher return.
At the end of the term, you get your money back + interest.
The biggest pro is this is YOUR money and there is essentially no chance of losing it!
The only way you can actively lose money on your CD is if you break your term and withdraw your $ early.
(Think of it similar to if you signed a lease, but then broke that lease to leave early. You would at least be losing out on your deposit.)
Why CD’s are Great:
It gets you comfortable and in the practice of putting your money somewhere and not touching it so it can grow!!!
This is one of the biggest reasons I am a proponent of CD’s.
I will repeat, this is one of the biggest reasons I am a proponent of CD’s. If you seek long-term financial gain and growth, having the discipline to put your money somewhere and leave it alone is key to that success.
There is almost no risk with CD’s other than your own lack of discipline and planning.
(Not to sound too harsh – but that is true. When you get a lot of money things rolling in your favor, we could factor in inflation and the rate of the CD you are getting. But for starters, a CD is an excellent building block.)
I literally googled: “Best CD rates 2024” and this article lists a bunch of institutions offering great rates. I usually look to see if any banks I am using currently offer great rates and go with them.
Remember: the easier you make it on yourself the more likely you are to take action!
Action Steps:
Step 1:
If you have not found a money-tracking system that has stuck for you yet, keep searching! Although you may not need to track every penny for the rest of your life, IF you are trying to get a handle on your finances and know how much you can afford to spend on fun, living, other, then knowing how much $ you have coming in and out is an important first step.
Step 2:
If you are paying any fees whatsoever on your regular banking or checking accounts – fix that immediately! With so many institutions offering competitive services, there is no reason to pay a monthly fee.
Step 3:
If you don’t have at least one account earning you interest of ~4% or more – take action to put some of your $ into an account that is earning interest. Learning how to make your $ work for you is one of the key components to financial independence.
If you are just joining feel free to browse through:
Seasonal Worker Money Talk Session 1
Seasonal Worker Money Talk Session 2
Seasonal Worker Money Talk Session 3
Seasonal Worker Money Talk Session 4
If you are curious for another post to browse here is how much it cost us to go see polar bears in Churchill, Canada. So many people were curious about that post!
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