Mindset

quiet quitting, quiet hiring quiet firing, person with finger to the mouth

Quiet Quitting, Quiet Firing & Now Quiet Hiring, Please Stop!

Money Maroon

It is amazing how fast someone discovers something that is new to that person, push it as being new to all, coin a new name and then it is pushed by the media. Think about quiet quitting. It is not new. We have all known folks who simply do not give 100% on the job. Once employees realize that they are not being compensated appropriately, this is what employees do. Quiet firing, is old, not new. Employers have always done this. Now we are hearing about quiet hiring. Quiet hiring is not new. Employers have always done this. I am now waiting for quiet studying, quiet retiring, and quiet dating, oh I guest that is already called ghosting. The point is, do not get caught up in the phraseology, focus on your goals.

Quiet Quitting

The term quiet quitting has come to generally refer to when an employee withdraws from their organization. Quiet quitting manifests itself as an unengaged employee and may be a result of having poor work-life balance.  Meaning an overworked and underpaid employee. One of the biggest causes of quiet quitting is an employee believing that they are not compensated appropriately or that their efforts do not matter. Generally, quiet quitters do not actually leave the organization, instead, they show up but do not give their best effort.

While quiet quitting has entered the lexicon of many in recent years, it is not new. We all know individuals who have always done this. Once they realize that they are not being compensated appropriately, they disengage. They work up to what they are compensated, or up to the point where they will not be fired and stop. I can bet you know of co workers who are like this. If the job description is a 9-5, by 5 they are out the door. If the job description calls for specific activities, anything additional, these employees push back. They will not go above and beyond.

The funny thing is that many quiet quitters know that they will not be promoted for their activities or lack thereof. But that is the point. If they are not promoted, they are ok because they did not go above and beyond. If they are promoted, they know how little they will have to do and no more. Again, nothing new, employees having been doing this for decades

Quiet Firing

Quit firing is essentially when managers fail to engage an employee and slowly push them out of the organization. At times, this is intentional, other times it is a result of a manager’s neglect. When it is intentional, managers will not provide coaching, support or guidance to an employee. This then results in the employee performing at a low level. If the employee is paying attention, they will quietly leave the organization as they know that they may be fired. On the other hand, if the employee is not paying attention, for each low performance, the manager will build a case and inform the employee of this low performance. The aim here is to have the employee finally get the point and leave voluntarily or be fired. 

Again, this is not new. Managers have always been inept. Managers have always trim numbers by building a case against an employee. Quiet firing is nothing new.

Quiet Hiring

The latest in the list of new jargons is quiet hiring. Quiet hiring is when an employer acquires new skills without actually hiring new full-time employees. This is essential an employer hiring contractors and not full staff or moving current employees to new roles while not changing title. When quiet hiring is utilize, the full time employee number does not change. if executed perfectly, your current employee will take on a new role and not be paid anything additional. This is how organizations get an employee to take on dual roles while not being adequately compensated. At times, this is done with the promise of a promotion.

Again, nothing new to see here. Employers have been doing this for centuries. Anything to not pay employees the wage that they deserve.

Conclusion

It is amazing how fast someone discovers something that is new to that person, push it as being new to all, coin a new name and then it is pushed by the media. Think about quiet quitting. It is not new. We have all known folks who simply do not give 100% on the job. Once employees realize that they are not being compensated appropriately, this is what employees do. Quiet firing, is old, not new. Employers have always done this. Now we are hearing about quiet hiring. Quiet hiring is not new. Employers have always done this. 

To ensure that you can live the life that you want to live, journey to financial independence. With financial independence, it does not matter if your employer quiet hires or quiet fires. You can live the life that you want and put in the effort that you choose.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Have you seen CD rates lately

Have You Seen CD Rates Lately?

Money Maroon

Have you seen certificate of deposit (CD) rates lately? I will give you a hint, they are high and expected to get a bit higher in 2023 in view of predicted rate increases by the federal reserve. As of the start of the new year, you can get 12 month to 24 month CDs in the 4-5 percent range. If you look hard enough, I am confident that you can find rates in the 5-6 percent range as well. This is in stark contrast to only a year earlier, when rates hovered around 1 percent. On your financial journey, it is important to assess whether or not CDs should be apart of your holdings.

The Stock Market

In 2022, the stock market did not do so well. All the indexes were in the toilet. The Nasdaq was down 31.1 percent. S&P 500 was down 19.4 percent. The Dow Jones was down the least but was down 8.8 percent. The massacre is expected to continue into 2023. This will provide an epic buying opportunity in 2023-2024, but we will discuss this buying opportunity in another post. While the stock market was going down in 2022, do you know what was not down? Savings and CD rates. Both started 2022 ridiculously low. However, as the federal reserve began to fight inflation by increasing interest rates, both savings and CD rates became more favorable.

CDs

A CD is essentially a savings product that earns interest on a lump sum for a period of time. The time period ranges from three months to about five years. Unlike a savings account, with a CD, the money must remain untouched for the entirety of the term or risk penalty fees or lost interest. Because of this lost of liquidity, CDs usually have higher interest rates as compared to savings accounts.  As compared to stocks and bonds, CDs are safer and more conservative and offers lower opportunity for growth. However, unlike stocks and bonds, CDs, if allowed to run the term, have a  guaranteed rate of return.

CD Rates In 2023

At the start of 2023, CDs are paying 4-5 percent for eighteen month to twenty-four month term. For example, Marcus’ 12 month CD pays 4.3 percent and the 18 month CD pays 4.4 percent. Ally CD rates are 4.25 percent for 18 month, 3 years and the 5 year term. Synchrony on the other hand is offering a 4.6 percent rate for their 14 month term CDs.

Diversify

In life, it is usually best to diversify. By now, you are likely aware that it is likely best to diversify your income streams. You also may know that it is probably best to diversify your investment portfolio. While saving accounts are not necessarily the growth vehicle of the stock market, you should consider diversifying your money beyond investing in the stock market and having a savings account. In view of the current CD rates, investigate if CDs would be beneficial to your bottomline. If a CD is, open one. As the market tanks, instead of losing money, CDs may provide a reprieve. Instead of losing 20 percent in the stock market, gain 4-5 percent in a CD.

Conclusion

CD rates are high and expected to get a bit higher in 2023. These increases are in view of predicted rate increases by the federal reserve. As of the start of the new year, you can get 12 month to 24 month CDs in the 4-5 percent range. If you look hard enough, I am confident that you can find rates in the 5-6 percent range as well. This is in stark contrast to only a year earlier, when rates hovered around 1 percent. On your financial journey, it is important to assess whether or not CDs should be apart of your holdings.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Be Work optional

Be Work Optional And Have The Best Job

Money Maroon

The best job to have is one that you do not need. The reasons are easily apparent if you think about it.  The less reliant you are on your job, the more comfortable you can be in the workplace. When your job is optional, your boss and those above you cannot take advantage of you. If they try, you can simply quit. Essentially, with work optional, you can make ongoing decisions that are in your best interest. If you are an employee, it is important to remember, no matter how much they love you, you are replaceable.

If you do not believe me, consider the rapid layoffs that have occurred in 2022. Think of those twitter employees in 2022. From top to bottom, you are replaceable. Your employment is at the whim of someone else. If your livelihood does not depend on your job, you are free.  Aim to be work optional.

Being An Employee

In the United States, for many, employment is at will. Which means for any reason, the company can fire you. It is that easy. If someone does not like you, you can be replaced. Many companies, to avoid a law suit for discrimination or retaliation, will build a case for removing employees before actually firing them.

When building a case, companies and their agents, yes your manager, will become more vocal against you. All your missteps will be documented. If you are late for a meeting, no matter the reason, it will be noted. Someone does not like your tone, it will be documented. If you disagree with others, the company will view you as not being a team player. You will begin to hear criticisms. The aim here is to let you know that you are not doing a good job such that when you are let go you do not think to sue.

But some companies build cases in a more blatant way. You may have received great reviews previously, and all of a sudden a bad review. That should be a warning signal to prepare yourself. Sometimes, you may have absolutely no contact with your manger or supervisor and they drop a bad review on you. In some of these cases, the managers will actually blame employees for the lack of contact. 

The Elon Musk Situation

You may encounter an Elon Musk situation. You may be in the unfortunate situation where another company buys your employer. Your role may be redundant. In these cases, all your good will and hard work goes out the door. The new owner will view you as a cost center. The point is, if your company wants to get rid of you, they will. 

Protecting Yourself

As life is unpredictable, plan ahead and protect yourself. At least from the financial stand point, the best way to do this is by becoming  work optional. This way, no matter what your boss or your bosses boss decides, you will be ok. 

If you lose your job today, how would your life change? If you have a family, this is a question that you should be thinking about often. Do you have enough in an emergency fund? How far are you away from financial independence? Instead of rushing back into a job that you may not like, can you take your time and find something that you like to do? Another question is, was your job optional.

Work Optional

Work optional is another way of noting that you are financially independent. By being financially independent, you can work if you choose to, or not. You are work optional. If you have a job, the job is optional. If you happen to be fired, you can pick up your things and graciously exit your job and sit at home if you need to. Strive to be work optional.

Conclusion

The best job to have is one that you do not need. The reasons are easily apparent if you think about it.  The less reliant you are on your job, the more comfortable you can be in the workplace. When your job is optional, your boss and those above you cannot take advantage of you. If they try, you can simply quit. Essentially, with work optional, you can make ongoing decisions that are in your best interest. If you are an employee, it is important to remember, no matter how much they love you, you are replaceable.

If you do not believe me, consider the rapid layoffs that have occurred in 2022. Think of those twitter employees in 2022. From top to bottom, you are replaceable. Your employment is at the whim of someone else. If your livelihood does not depend on your job, you are free.  Aim to be work optional.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Financial Experts

Be Wary Of So-Called Financial Experts

Money Maroon

There is a reason why Warren Buffet said to be “fearful when others are greedy, and greedy when others are fearful.” The reason is simple, so-called financial experts do not necessarily know what they are talking about most of the time. In effect, it has been shown that a monkey can pick stocks better than a financial expert. Yes, a monkey is a better stock picker than an institution paid a percentage of your portfolio. If financial experts were foolproof, they would beat the market every year, but this is simply not the case. This is also the reason why index funds are the safest bet to have consistent growth over time. So-called financial experts of the stock market are typically no better than you and I at gaging what will happen next.

Stop & Think

In life, whenever a large group is running to the left, stop and ask why. Do your due diligence and investigate whether or not these individuals are going that way in view of reason or an irrational drive to follow the heard. In most circumstances, the answer is herd mentality. Someone with name recognition will make a statement, others will be too lazy to do their due diligence and instead parrot the earlier person’s statement. This then occurs over and over again and soon you have a group of individuals moving in the same direction without a concrete reason to do so. This is particularly problematic when the individuals that are irrationally moving are also in positions of power. You end up with irrational acts leading to longterm detrimental effects.

Economic Movements

Just think back. How many financial experts called the great recession? How many financial experts predicted the sustained bull market following covid lock downs? The answer is not too many individuals. If you go back and take a look, most so-called experts where shouting from the roof tops about a sustained bull market back in 2007. When covid-19 hit, many financial experts were calling for a massive recession as a result of the lock downs. In both cases, the opposite actually occurred. 

If experts are calling for a specific economic activity to occur, the more fervor they have, the more likely it seems that the event will not occur. When the majority is looking for a recession, there may be a dip, but just wait for the bull market. When the majority is calling for a bull market, it is only a matter of time before the market falls. The point is, it is your money that you are playing with, do your own due diligence. Make informed money decisions by doing your own investigation into the matters at hand. 

Do not be a lemming. Do not turn over your life savings to an expert and sit back in the hopes that they will do what is right for you. It is your money. No matter who you choose to manage your money, you should also play an active roll in the actions taken with your money and how it is allocated. If you do not take an active roll in your financial security, do no be surprise to find that your money is not being managed in the way that you would want or like.

Financial Experts

This is not to say that experts should be ignored. If qualified, they are experts for a reason. They have the requisite knowledge and qualifications. This is to say that while experts may know more than you do about a subject, you should still take an active role in your money management. Trust but verify. In the end, it is your money.

Conclusion

Warren Buffet said to be “fearful when others are greedy, and greedy when others are fearful.” The reason for this statement is simple, do not follow the herd. A blindfolded monkey beats humans with stock picks. As such, keep in mind that some financial experts do not necessarily know what they are talking about most of the time. Be an active participant in the management of your money. Trust but verify. Educate yourself and do your due diligence. Do not be a lemming when it comes to how your money is managed. Actively participate in the management of your money and your journey to financial independence.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Video Summary

praying for student loan forgiveness

Is Student Loan Forgiveness Fair?

Money Maroon

It does not matter how much is forgiven and it really does not matter the reason. Forgiving student loans is a divisive issue. There is one main group that will directly benefit from student loan forgiveness. This group includes those for whom student loans are forgiven. On the other hand, there will aways be a number of groups that will be aggrieved. This group of the aggrieved includes at least those who have paid off their student loans, those who never took out student loans and those who did not have the opportunity to take out student loans because they did not attend college.

Student Loan Forgiveness

There is a student loan problem. Some students were victims of predatory lending from opportunist institutions. In some cases, students were given loans and then obtained worthless degrees. In some cases, the institutions were not up to par academically. For some, the college was closed down and students were stuck with student loans but no degree. For others, student loan terms were not clearly explained and students now owe more than they borrowed. In all cases, for those affected, it is likely that they are stuck with a mountain of student loans and no true path to ever pay off the borrowed amount plus the accruing interest.

On balance, should these students have done their due diligence? Should these students have read the fine print and better understood what they were signing up for? Also, should there have been more government oversight to prevent institutions from selling these subprime student loans to vulnerable students? Something to think about.

Students Who Paid Back Their Student Loans

There are some students and adults who have now paid back their student loans. Essentially, they made it a priority to not take out more than they needed during their school years. Many of these individuals did not attend their dream school because of the cost. Instead, they settled for a less expensive option. They may have also worked extra jobs. Some did not take fancy spring break trips while in college. Others have forgone buying nicer homes or cars. Instead of spending, these students were cost conscious. They buckled down and payed back their student loans.

How would you feel if you were one of these students when you hear of others getting student loan forgiveness? You will likely feel robbed. You have made the sacrifices and paid back what you owed. Now, you are being penalized for your diligence, being proactive and responsible. Would you view this a being fair?

Students Who Did Not Take Out Student Loans

Let’s face it, we live in an unequal society. There are a group of students who attended college and did not have the need to take out student loans. This could have been a result of their parents saving over time and allocating funds specifically for college. For others, their parents were in the position to pay their tuition as they went through college. Still, there are many who simply worked during college and were able to make enough to pay their costs or obtained scholarships.

For those who prepaid for college, those who worked multiple jobs to pay their tuition, and those who studied and obtained scholarships, how is student loan forgiveness viewed? Will they view student loan forgiveness as a penalty? Why work hard during college and forgo all the parties, why prepay for college, why work hard and obtain scholarships when the student loans will be forgiven anyway? 

Those Who Did Not Attend College

Of the groups that will likely view student loan forgiveness in a bad light, those who did not attend college will likely be the most upset. They are the most likely to be upset because as tax payers, they may view student loan forgiveness as paying for something they did not have the opportunity to part take in. These individuals are essentially paying for someone else’s college education or mistake. They may also see student loan forgiveness being applied to college educated citizens as causing a further divide between the have and the have nots. Some who will be helped by student loan forgiveness, where they attended reputable colleges, may end up earning more than those who did not attend college. So in effect, as a tax payer, those who did not attend college would be further subsidizing these individual’s lifestyle. For many, this will be viewed as being unfair. 

The Greater Good

No matter your stance on student loan forgiveness, one thing to consider in this student loan forgiveness debate is the greater good. Will forgiving a portion of student loans help the overall society in general terms. If citizens are not buried by student loan payments, will this translate into increase economic activity as more funds will be available to spend. If this works perfectly, all of society will benefit. However, will this affect personal responsibility and the motivation to live within ones means if there is a possibility that your debt will be forgiven?

Whatever the decision with regard to student loan forgiveness, one thing is for sure, the debate will continue.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Video Summary

I quit, quit your job

Quit Your Job And Get Another One

Money Maroon

As the great resignation has shown, it is ok to quit your job. Unsurprisingly, while some has stayed out of the labor market, many are quitting their jobs to get a new one. Some are moving laterally in the same position while others are getting higher positions. Some are getting better benefits or a better working culture. The move to another job is not really all that surprising because guess what,  people have bills to pay. If you are planning on quitting your job, do ensure that you are looking ahead and planning out what the future holds. For example, how will you support yourself?

Quit Your Job

In the United States, it is very easy to quit your job. Simply, say that you quit and do not return. That it is. It is customary to give a few weeks notice when you are quitting. But legally, you are really not requited to do so. This curtesy is such that you can wrap up your work or transfer your work to another colleague. Giving notice also provides your employer with some time to replace you. This is critical if you are an important member of the team. The curtesy also for the most part allows you to maintain certain relationships with work colleagues. Remember, do not burn bridges as you do not know where you will be in the future.

This works the other way as well. Most employment agreements in the United States are at will. As such, your employer can fire you anytime and the employee can quit anytime.

In other places such as Europe, quitting your job is really a few months in the working.  With strong worker protection laws, it may take a company 6 months or more to fire you, and maybe just as long for you to quit. 

When quitting your job, even if you have the most horrible boss, try your best not to completely nuke your bridges. Meaning, you may not like your boss, but there may be others at the company that you may want to maintain relationships with. Act accordingly.

Before You Quit

It may sound like a great idea to quit your job. Yes, you will finally stick it to your boss and leave. With a replacement not being able to fill your role, your hope is that they will recognize how under appreciated you were. But before you make that final decision, ensure that you have thought about what the future holds. It would be great if we could all quit our jobs and not work another day in our lives (financial independence). However, this is not usually possible. Typically, once you quit your job, you will need to find another one. The high of finally saying I quit can be easily overtaken by the fear and trauma of not being able to pay your bills and support your current standard of living.

It is advisable to find a job before you quit your job. It is much easier to find a job when you have a job. Further, because you do not need a job you can effectively ask for exactly what you want. Because you are not completely dependent on getting that new job. Essentially, you have options. So begin your job hunt early and ask for the salary and benefits that you want. The worst that a prospective employer can say is no.

Once you have lined up that new job, go ahead and quit, if this still is the correct decision. Of course, it is important to ensure that the new job is better that the old job. It is very difficult to make this assessment as you will likely be in the dark with regard to certain information about the new job. Is your new manager better than your old/current manager? Is the company’s culture better? What is your progression and development opportunities? There are a lot of unknowns and you must do as much research as possible. Information is the key here.

The Grass Is Not Always Greener

In your job hunt, if you happen to obtain an interview or is reached by a head hunter, do understand some very simple facts. It is in the head hunter’s best interest to get the role filled. As such, not all, but some head hunters will misrepresent the job. This is because once you begin to invest the time in the interview process and begin to picture yourself leaving your current role, it is a lot easier for you to move on.

Therefore, no matter what the situation, do not be afraid to ask the hard questions with regard to salary, benefits, environment, culture, promotion and what the future of the company is. Do your due diligence on the company. Do your due diligence on the role. If you are applying for a role that have high turnover, you may want to ask about this. Try to find who the last person that had the role and ask why did they leave. They will give you answers. Check and see if you know people who work at the company and ask them about the company. They typically do not lie. Get information and make an informed decision.

Know Why You Are Quitting

As the grass is not always greener, know why you are leaving your current job. Know what you and your family need to be happy. If it is culture, ensure that your new job has a better culture. If it is all about the money, ask for a higher salary. But ensure that you know why you are leaving and what your ultimate goals are.

Conclusion

As the great resignation has shown, it is ok to quit your job. While some has stayed out of the labor market, many are quitting their jobs to get a new one. The move to another job is not really all that surprising because guess what,  people have bills to pay. If you are planning on quitting your job, do ensure that you are looking ahead and planning out what the future holds. For example, how will you support yourself?

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

 

Why Lottery Winners Go Broke

Why Lottery Winners Go Broke

Money Maroon

Ever since I understood the concept that buying a lottery ticket gives you the chance of winning millions, I wanted to win the lottery. As I got older, I realized that the probability of winning was extremely low, as such, I rarely ever play. When I do play, I see it as a donation to the State’s education system as a percentage of the lottery usually funds education. For the lucky few who plays and wins, congratulations. However, for winners there is happiness, that is typically followed by sorrow and many times tragedy. It makes you wonder, why does such tragedy follow many lottery winners? Looking at the financial side, why do lottery winners go broke?

Lottery Winners Go Broke Because Of Inexperience Money

A lot of lottery winners are not math or financial whiz. The fact is, the more educated you are, the less likely you are to play the lottery. It is simple, you understand that the odds of winning is extremely low and as such you do not play.

Those who win the lottery, tends to be those playing the lottery which is in effect proportionally not the most educated with regard to finances. Most lottery winners have the issue of having a large sum of money and not knowing how to maintain it. 

Many lottery winners fall prey to their wildest financial dreams. The dream of having one or more mac mansions, new expensive cars and other toys that are wanted but not needed. With a scarcity mentality, many lottery winners are frivolous with lottery winnings. Some winners see their winnings as “free money” to be spent. While individual purchases may not put a dent in the overall winnings, they can quickly add up if winners don’t keep a close eye on what they are spending. A bigger home comes with a bigger bill to upkeep. Luxury cars come with larger insurance and repair bills.

lottery check - why lottery winners go broke

The Payout Is Not As Much As You Think

When taking the payout from the lottery, winners usually have a choice. The choice is typically between taking a lump-sum or a fixed payment overtime. If you take the lump-sum, sometimes it is only around 60-75% of the advertised prize. This can leave winners with a lot less money than they expected. Then do not forget about the taxes. In most jurisdictions, lottery winnings are taxed. As such, in the end, while you will have a huge sum of money, the sum may not be as large as others think it is. Therefore, it may be bit more difficult to rebuff family and friends when they falsely believe that you have a lot more than you actually do.

Lottery Winners Go Broke Because Everyone Knows That You Won

In many places, a condition of winning the lottery is that your name is made public. Many lotteries do require that basic information about winners are made public. For example, name, city and the amount won.

When every one knows that you won millions of dollars, you will have long lost friends and family coming out of the woodwork. They will all come calling.  Many new lottery winners will not be well equipped to say no to friends and family. Once family and friends learn of the windfall, they will have expectations of what they should be entitled to.

But also, there are complete strangers who targets lottery winners. Some with sad stories, others with investment ideas and still others who aims to rob, maim or kill lottery winners.

Typically, lottery winners go broke as a result of a million cuts. One bad investment idea or falling for one sad story will likely not completely deplete the millions won. However, not paying attention and learning to manage your money will eventually lead to bankruptcy or worst.

Addiction

There is the saying that money does not buy happiness, it only amplifies who you are. A jerk before having a lot of money, will likely be a jerk with lots of money after winning the lottery. If you were previously prone to addiction prior to winning the lottery, now you are a wealthy individual who is prone to addition with the financial means to support that addiction. If you were an alcoholic before winning the lottery, you are now a very rich alcoholic. For those with addition issues or tendencies, winning the lottery and having the financial resources to support an addition habit is dangerous and can be deadly.

For those who cannot handle stress, winning the lottery will add a lot of stress. There is some stress that comes with having the money. You will like be stressed about how to maintain it, how to manage it, how to handle the constant requests for handouts, and how to face resentment (because it will come from family and friends). For many, alcohol and drugs are the remedies often sought with stress. It is not uncommon for many lottery winners to blow huge sums of their winnings on drugs and alcohol. At times, this is in an attempt to cope with their new lives as lottery winners.

Not Asking For Help

As mentioned above, many lottery winners were not finance majors in college. As such it is probably in their best interest to seek advice from qualified financial professionals. However, despite the fact that sudden wealth can cause lots of financial complications, very few lottery winners seek professional help. Very few lottery winners seek out professional advice on how to grow and or maintain their wealth. Without the requisite knowledge of how to manage such an instant inflow of funds, many lottery winners mismanage their money and go broke.

Conclusion

With winning the lottery or with any other instant financial windfall, be careful what you wish for. Many lottery winners go broke. By not being able to handle the stresses of winning the lottery, you could end up being a lottery winner that goes broke or worst.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Video Summary

Wedding rings

Your Wedding Cost & Crushing Debt

Money Maroon

It is wedding season again. It is time to overpay to join union with another. Don’t get me wrong. A wedding is a beautiful thing. However, so many overpay to show love. If you are currently planning your wedding or have planned your wedding, focus on your wedding cost and do not go into debt for your wedding. Please do not do it.

The Wedding Cost

It is no doubt an exciting time in life. Your partner asked and you said yes or vice versa. You are about to make it official, you have a wedding in your future. If you are not simply going to a court house to sign the papers, watch your wedding cost closely.

You will need to plan out how you will pay for things like your wedding venue, flowers, chairs, photographer, food, alcohol and anything else that may pop up. I do not know why, but when “wedding” is attached to any of the above, the prices explodes. You will be charged a premium.

Expectations

To ensure that your wedding cost does not explode, do not make wedding decisions or purchases because it is what is expected or traditionally done. If you do what is expected, you may run yourself into financial trouble.

It is important to understand, for a wedding, everything have a cost. Further, as the guest list grows, so does the cost. As such, it is important to do what is important to you and your partner. Do what you want and what you can afford. Because in the end, you may fulfill everyone’s expectations, but you and your partner will be left with the bill. At times, this could be a very big bill.

One Day

Do not fall into the trap of believing  that your wedding day is the most important day of your life. It is a special day, but it is only one day. One day that will cost you thousands or hundreds of thousands of dollars if you do not pay attention. This day may also set you on the trajectory of a divorce as well.

Remember, close to 50% of all marriages end in divorce and the number one cause of divorces tend to grow from financial issues. Starting out your marriage in substantial debt is not a good start. Further, so many couples divorce while haven’t paid off their wedding day debt. This is a cruel situation to be in, divorce and still paying off your wedding.

If your next step after marriage is kids and/or a new home, note that these are also very expensive. The better financial situation you begin your marriage in, the better. Do not ruin your financial life for a wedding.

Control Wedding Cost

To control wedding cost, consider what you could potentially change. Also consider what is right for you and your partner.

  1. Change the venue. The venue comes with a lot of costs. For example, the venue typically sets the price for a number of different aspects of the wedding. By changing your venue, you can significantly impact the cost associated with your wedding. A golf course on the ocean will have a very different cost profile as compared to a church in a small town. 
  2. Communicate. Communicate not only with your partner but also with your friends and family what your financial boundaries are. This may lower expectations and reality check your friends and family. Be upfront about your expectations of them and what it is that you want for your wedding.
  3. DIY. There are some things that you can do yourself or have a friend do. For example, taking your engagement photos. This is one task that anyone with a good camera can do. You may also choose to make your own table numbers, for example. There are a myriad of ways for you to get involve and lower the cost of your wedding.
  4. Change when you will have your wedding. There is a wedding off-season where you may be able to get a discount. Also consider having your wedding on an off-day. You could have your wedding on a Friday or another day during the week because the weekend tends to be significantly more expensive.
Wedding ceremony sign

Conclusion

In the end, whatever you choose to do on your big day is between you and your partner. Make decisions for your longterm future and if possible, do not go into debt for your wedding. Your financially independent future self will thank you.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Video Summary

Jealous friends and your wealth

Jealous Friends And Your Wealth

Money Maroon

While you are focus on your financial objectives, you may lose sight of one very important aspect, your friends. Based on the people around you, can you or will you be able to truly enjoy your wealth? Would your friends be happy and congratulatory of you achieving your financial objectives? Put simply, do you have jealous friends. 

Here, the assumption is that you are not purposely flaunting your wealth to belittle your friends. If you are doing this, then you are the bad friend, and your friends should be distancing themselves from you.

Money Changes Friendships

It is understandable that as time progresses the dynamics of our relationships change. Some friends will grow with you while others will grow away from you. But for those that you aspire to be apart of your life for the near and foreseeable future, how will they react to your wealth or you achieving financial independence? 

You will likely believe or have heard the refrain that true friends will not care. But the fact is, this is wishful thinking. Money changes the dynamics of all relationships. Just do a general search on the internet and you will see what I am talking about. As you transition in life, few of your old life will be with you in your new life.

While I know this, I do hope for you and me, that we are able to navigate achieving our goals and continue to have current friends around us that cheers us on. 

Cheap

If your aim is to achieve financial independence and you have tried to balance your expenses by trying to limit your spending, you will be called cheap. You will hear it multiple times from certain friends who may not completely understand what you are doing. You will be mocked for wearing the same pants or shirts that you have had for years. You will have to endure others around you having newer things, but if you are really about attaining your goal, you will not care. 

But a funny thing happens as you get closer to your goals. All the mocking and jeering will fade away to real questions. How close are you to retiring? What do you think about this financial move, what do you think about that? Your friends will have real interest in what you are doing. They will want to get to where you are, but there is an issue. You have been sacrificing and working on this path for years while they are seeing the end results and wanting that result.

This is where issues may develop.

Real Friends

As your dreams begin to come true, your real friends will continue to cheer you on. 

What I am saying here is that if you are low key, you will continue to be low key. If you believe in stealth wealth, you will likely continue to do the same things with slight changes. If you have achieved financial independence, well, you may change jobs or begin to pursue other things. It is unlikely that you will tell your friends your net worth. However, your real friends will know that you have enough based on your actions.

But your other friends may not see it that way. They will say that you have changed. If you decide to upgrade after being frugal comments will be made. You may also be accused of thinking that you are better than others. Overtime, some friendships will become strained.

Resentment may come from comparison, sometimes it may be linked to your friends own self-esteem and the way they view themselves. Especially if you and that friend started at the same financial point or you were from a lower economic position but have now surpassed them.

Real friends or jealous friends - friends jumping in the sun
Really friends or jealous friends

Why You May Have Jealous Friends

Some friends will be jealous friends because they do not want to see others, not even a friend, do better than they are doing. Some jealous friends are jealous because they love to cause chaos. Misery loves company. But if you have friends who have been with you for a long time and they become that jealous friend, it could be a matter of envy because you had the confidence to take the risks and make the sacrifices to achieve your goals.

How To Solve Or Preempt Jealous Friends

To prevent jealous friends, be aware and have the tough conversations. As you embark on your journey to financial independence and early retirement, note that not everyone is on the same journey. Be conscious of this. While you may be ostracized at first, note that the lifestyle that you will build for your family will likely be the envy of others. 

Once you have achieved your goals, you will likely have amply free time and the financial resources to do as you choose. You will be able to travel, do a job that you want, and spend time with family. You will be able to more so do the things that will make you and your family happy. Who doesn’t want that? This is all while your friends are toiling at a job that they hate and potentially have a life that they do not want. Be conscientious of this. Be understanding.

When friends ask about what you are doing, try to be patient and explain, do not judge their lifestyles. Do not fall into the “I told you so” mantra. 

Above all, live your life as they live there’s and if a friendship needs to end, it needs to end. Do not put yourself or your family in a terrible situation to maintain a hostile friendship.

Conclusion

While you are focus on your financial objectives, you may lose sight of one very important aspect, your friends. Based on the people around you, can you or will you be able to truly enjoy your wealth? Would your friends be happy and congratulatory of you achieving your financial objectives? Put simply, do you have jealous friends. 

Whatever the situation, do what is best for you and your family.

Follow me on Twitter @JoToFI_com

Follow me on Instagram @JoToFI_com

Video Summary