Despite my current love for all things horror, I was quite the scaredy-cat when I was a kid. 

(This may have something to do with the time my dad let me and my sister watch Poltergeist at the tender ages of 4 and 7. Apparently, I refused to enter any room by myself for an entire month afterwards. I’m sure my dad didn’t have any regrets about that parenting decision…)

Wes Craven’s Scream was my official introduction to the joys of scary movies. I saw it in the theater twice and bought it on VHS as soon as it was available. That smart, funny, and meta slasher movie helped me to understand the ways horror movies can subvert expectations and shine a light on our collective fears. Seeing Neve Campbell’s Sidney Prescott claim her agency and kick Ghostface’s ass gave me a framework for understanding the subtext behind the scares.

Of course, I often spend my time thinking deep thoughts about pop culture–and my profession as a financial writer means those thoughts are frequently centered around money.

But considering the way scary movies reveal and reflect the cultural fears we collectively grapple with, and the fact that money is such a common source of anxiety, it’s no wonder that some of the scariest specters in our favorite spooky movies represent our financial worries.

Here’s what I’ve learned about money from my favorite horror movies:

Jaws: Prioritizing Profit Over Safety Sacrifices Both

Other than the shark himself (R.I.P., Bruce), the only real antagonist in Steven Spielberg’s 1975 masterpiece is Larry Vaughn, the mayor of Amity Island. As played by Murray Hamilton, Vaughn is a glad handing pillar of the community who is only looking out for the economic interests of the business owners on the island. They count on tourism for their livelihoods.

When Roy Scheider’s Chief Brody attempts to close down the beaches after the first shark attack fatality, Vaughn leans on the coroner to declare the death a boating accident and pressures the chief to keep the beaches open–which leads to many more deaths. Only after the shark kills a man in front of Vaughn (and nearly eats Brody’s son) does the mayor change his tune.

The first time I saw this film as a teenager, I remember thinking Vaughn’s character was cartoonish. “No one who was responsible for an entire community would act that recklessly!” I said to myself, while simultaneously patting myself on the back for seeing through such blatant black-and-white characterization.

(I’m sure you can imagine my surprise a few years ago when elected officials were suggesting that the nation’s nanas were willing to die to keep the economy going…) 

Time has shown me that I owe Peter Benchley and Carl Gottlieb an apology for maligning their writing, since Vaughn was actually a more nuanced version of what we often saw during the Covid lockdowns. But watching Jaws post-Covid has also made it clear how often the film hammers home the message that putting profit above safety sacrifices both.

Mayor Larry Vaughn is the most obvious example of this, since he is unwilling to agree to any safety measures that might hurt the town’s finances, from shutting down the beach to using Amity’s resources to pay the shark-hunter Quint. Not until Vaughn sees a man die at the beach does he go back on his profit-centric worldview–at which point Amity Island is in the news about the shark attacks, which will hurt its economy for years to come.

But Vaughn is not the only character who puts profits first. When we first meet Quint, he tells the town that he will find and kill the shark for $10,000 (nearly $60,000 in 2024 dollars). He knows it’s an outlandish amount of money, but he warns the town council they can either pay him that money or see all of Amity financially struggling over the long winter.

Once Vaughn hires him, Quint consistently makes decisions that prioritize that money over his own safety and that of Brody and oceanographer Matt Hooper. When Brody sees the shark and realizes they’re going to need a bigger boat, Quint refuses to return to the island for said larger watercraft and convinces the men to stay on the water overnight. 

When the shark destroys part of Quint’s boat, he smashes the radio to keep Brody from calling for help. While it’s unclear if Quint is motivated by the money and fears having to share it or if he simply wants single-handed revenge against the shark, his actions directly lead to his own death. Which means he never gets a chance to enjoy the cool 10 grand.

A Nightmare on Elm Street: Wealth Cannot Protect You From Tragedy

Freddy Krueger was the boogeyman of the 1980s. Despite never seeing the film until the ripe age of 45, I was certain that the burned man with the knife glove and a dark sense of humor was out to get me throughout my childhood.

When I did finally watch this film, I was surprised to discover a fascinating lesson about how wealth can’t insulate you from tragedy.

Though it’s never quite articulated by the movie, the teenagers living on Elm Street are clearly privileged. Just look at final girl Nancy’s home (and the across-the-street house her boyfriend Glen lives in) to see that these kids are clearly upper middle class.

On the other hand, Fred Krueger lived in a boiler room when he was alive, and seemed to have some sort of blue-collar job when he wasn’t killing kids. The class fears of a blue-collar predator could be its own PhD thesis, but it’s interesting to look at what made Freddy so terrifying both before and after he died:

Krueger was responsible for the deaths of local children and finally apprehended, but a legal technicality allowed him to walk free. A vigilante mob of parents set his boiler room on fire, and he died in the blaze. But Freddy came back years later in the dreams of the town’s teenage children, killing them while they slept.

Before his death, the residents of Elm Street weren’t safe from Freddy, despite their resources. Their homes couldn’t protect them. The police couldn’t protect them. And the justice system couldn’t protect them. Elm Street was vulnerable to this man’s evil until the parents, led by Nancy’s mother Marge, took matters into their own hands.

The same thing happens years later when Freddy haunts the kids’ dreams. Nancy and her friends are not safe in their homes, even when the house is boarded up. The police cannot make them safe and Nancy’s police chief father uses the justice system to blame an innocent boy for the deaths.

The story is an excellent metaphor for the fact that tragedy can strike anyone. The parents of Elm Street refuse to believe Nancy that Freddy is attacking her in her dreams because they are counting on the safety of their nice homes, their privilege in the community, and their access to resources like a sleep clinic to protect them. But that’s all false security.

Only Nancy recognizes that the threat won’t be foiled by privilege. She relies on herself rather than her resources–and she prevails (if you ignore the fake-out ending forced on Craven).

The Shining: Financial Abuse is a Precursor to Physical Abuse 

Despite Stephen King’s view of the film, I consider the 1980 movie The Shining to be a feminist examination of domestic abuse. The movie shows Jack Nicholson’s Jack Torrance losing control of his mind and his temper while spending the winter as the Overlook Hotel’s caretaker–a job he mostly leaves to his wife Wendy, played by the late Shelley Duvall.

As much as I love this film–and I would never presume to question Stanley Kubrick’s directing choices–I have always felt like the character of Jack is portrayed as a little too unhinged from the beginning. Even when we see Duvall and Nicholson interact early on when things are supposed to be fine between them, the viewer has trouble imagining these two people falling in love and getting married. They just seem to occupy the same space together.

But the lack of chemistry between these two characters may also be part of Kubrick’s genius because it shows just how trapped Wendy was in her marriage. 

She is already in an abusive relationship even before the Overlook’s ghosts get their hands on Jack. He had harmed their little boy in a drunken rage prior to the events of the film. Wendy is a stay-at-home mother with no resources of her own. Without her own income, she has very little choice but to follow him to the Overlook and make the best of a terrible situation.

It’s significant that Jack does not actively try to harm Wendy or their son (again) until after the snow traps them at the Overlook–and after Jack has disabled the sno-cat that is the only vehicle able to traverse the mountain. Just as less supernaturally-driven abusers slowly reduce their victims’ options over time, Jack starts by financially and emotionally trapping his wife, then physically trapping her, before violently attacking her.

Wendy proves herself to be remarkably resourceful, intelligent, and resilient in the face of Jack’s attacks, which also offers viewers an excellent allegory for the survival strategies of abused women. 

The Overlook ghosts and Jack are surprised by Wendy’s skills because they assumed her go-along-to-get-along attitude was a sign of weakness. But learning to make the best of a bad situation is a valid survival skill that countless women have had to master in the face of financial abuse. Wendy shows us how we could also use that skill when things get more dangerous.

The Essence of Horror

I have realized over time that one of the reasons I love scary stories is because it helps me face my own fears and recognize fear responses in others. While I don’t worry that a giant shark or sleep monster or Jack Nicholson are going to get me when I least expect it (well, I don’t worry about it much), I do get frightened when I see profit prioritized over safety or when I remember that tragedy touches every person’s life or when I recognize the prevalence of financial control and abuse.

But horror films don’t just show us the scary stuff. They also subvert our expectations by showing us how overlooked and underestimated people can fight back. We’re more than our fears, and the best scary movies make sure we know it.

What have you learned from your favorite horror films? Let us know in the comments below.

There are a few broad categories that trigger people to reach out to me.

Retirement planning is biggest. Major life changes (marriage, divorce, having kids) is a common reason, too.

Another one, albeit slightly more unique: “I have a good handle on our finances, but I want to get you involved because my spouse needs someone trustworthy. If I get hit by a bus, I want you already involved to fully take the reins.”

But somewhere in the Top 5 most common reasons is the rationale for today’s article:

“I received a BIG sum of money…and I have no idea what to do next!”

Let’s talk through the good ideas, bad ideas, and ugly pitfalls to avoid when it comes to receiving a windfall.

Where Does a Windfall Come From?

Your definition of a windfall will differ from mine. Some people consider $1000 to be a windfall. Others wouldn’t flinch at receiving $100,000. It’s in the eye of the beholder.

To me, a windfall fits one of these two loose definitions:

• Enough money to meaningfully change the timelines of your financial plan. The kind of sudden money that dictates, “Oh – I think we can retire years earlier than expected now,” or perhaps something like, “Can we actually buy our dream house now?” It’s that kind of money.
• Enough money to make you suddenly anxious. Usually, that means either 1) more money than you’ve ever been around and/or 2) enough money that you can’t stop thinking, “Don’t screw this up!”

A windfall usually comes from one of the following sources:

• Inheritances: often including the decedents retirement accounts and assets held in trust.
• Gifts: ranging from annual gift exclusions up to the lifetime estate tax credit limit.
• Sudden changes in income / company structure: bonus payments, various types of stock options, or cashing shares in an IPO.
• A big sale: real estate sales and business sales being two of the most common
• Divorce: while perhaps not “receiving new money,” a divorce frequently results in at least one of the divorcees needing to take a more leading role in their finances for the first time in their lives.
• Lottery winnings, insurance settlements, and other “one off” events: while less common, people do come into large sums of money in unique and unforeseen ways.

Should I Expect a Future Windfall?

Here’s a common thought I hear during the financial planning process:

“My grandmother is 81, and my mom says Grandma has a lot of money. So, whenever Grandma dies, I’m going to inherit a lot of it. Knowing that, I’m pretty comfortable with my financial situation.”

Brittany, who counts her chickens early

This thinking begs the question: is Brittany right to include her future inheritance as part of her financial plan?

As with many financial planning topics, the best answer is, “It depends.” On one hand, overlooking a “sure thing” inheritance would be terribly conservative. But to include an inheritance that never materializes can torpedo your plan.

Going back to Brittany, here’s what I’d want to ensure to then confidently include an inheritance in her financial plan:

• There have been clear family discussions about how Grandma’s money will be distributed.
• Brittany (and her financial planner) have copies of Grandma’s estate plans
• Brittany (and her financial planner) have a recent copy of Grandma’s net worth statement, or other evidence to inform just how much Brittany will receive,

Too often, though, someone wants to include an inheritance in their financial plan despite them lacking any knowledge of what the inheritance will look like, or lacking the evidence as to whether they’ll receive anything in the first place. That’s a recipe for disaster.

In summary: if you know your future inheritance is a sure thing, go ahead and include it in your plan. Short of that “sure thing,” I wouldn’t count on it.

Important Stuff First

What should you do when your receive a windfall? The National Endowment for Financial Education covers the topic pretty well:

• It is usually not necessary to make many decisions immediately. So, allow yourself time to adjust to your new situation.
• You may find it beneficial to decide how much you will need to live for the next six to 12 months and keep that money separate from the rest of your windfall.
• You can put your money in a temporary and safe account—a certificate of deposit or money market mutual fund insured by the FDIC will provide a safe and relatively liquid place for your money.
• You may need to get tax advice so that you can determine if there are any immediate actions you must take because of tax repercussions.

Let’s talk about that last bullet: does a windfall create scary tax implications?

Tax Implications

Windfalls can come with tax scenarios that the average person simply hasn’t encountered before.

You may need to file estimated taxes. There can be complexities surrounding distributions from retirement plans, inheritances, and lottery winnings. Exercising stock options is another tax tangle.

It makes sense to get help in this department. Typically, a CFP financial planner can point you in the right direction. Ultimately, a CPA accountant or other tax-preparer will help you file your taxes each year.

Remember: the US tax code is progressive, meaning that you’ll pay a higher proportion of taxes as your income and net worth increases. Thus, after receiving a windfall, proper tax planning becomes more important for you than ever before.

Common Pitfalls

How do people mess up their windfalls? Many different ways.

Sometimes, people are simply ignorant to what they ought to do – the classic “I don’t know what I don’t know” scenario. Common reasons here include:

• Failures to plan (especially doing proper estate planning)
• Failure to understand and pay taxes on time.
• Lack of understanding of investment products (…the number of stories of windfalls going directly into annuities is shameful)
• Going it alone. Not knowing you can/should engage with professional expertise.

Other mistakes, of course, are “hands on” acts. Common mistakes here include:

• Spending extravagantly. New cars, big houses, etc. until the money is suddenly gone.
• Giving away too much to family, friends, etc.
• Investing hubris, or conflating sudden wealth with the ability to intelligently invest.
• Quitting a job, or otherwise harming outside income streams.

Receiving a windfall is a tremendous stroke of luck. Do not let one of these common pitfalls turn that luck on its head.

What Should You Do Instead?

Here’s how I’d guide someone who just received an unexpected windfall.

Debt Management, Emergency Fund, and Other “Order of Operations”

First, I’d consult the financial order of operations. It’s a simple, long-standing heuristic in the financial planning community that prioritizes an individual’s financial needs.

It might suggest, for example, that our inheritor first creates an emergency fund and pays down some high interest debts, before then deciding to invest the remainder of their money toward their long-term goals.

Financial Planning and Investment Management

But how should they invest? Well, that’s a function of their financial plan. If our inheritor doesn’t have a financial plan, they need one.

Quite simply, a good financial plan should combine the various puzzle pieces in a person’s financial ecosystem with their unique goals and values. A financial plan combines all the numbers with all the soft stuff.

Only after a cogent plan is in place can someone understand how they should be investing (let alone how they should be investing a large sum like a windfall).

Lifestyle Upgrades and Big Purchases

I understand the desire to immediately spend a portion of a windfall on lifestyle upgrades or large self-indulgent purchases. But I’d caution you against going overboard.

First, set a limit for yourself. Something like 5-10% of the windfall.

Second, ask yourself the important question: will this “one-time large purchase” actually lead to a longer outflow of on-going maintenance costs? Is it truly a one-time purchase, or is it forever lifestyle inflation?

Estate Planning

A large windfall might beg a second set of important questions: what if you kick the bucket?

Check out our Estate Planning 101 primer for more details.

Giving

Do you want to “pay it forward?” Good for you! It’s probably better for the world than buying that decked-out pontoon boat.

Nevertheless, give wisely. It might be worthwhile to consult a philanthropic expert, an estate attorney, or an experienced financial planner to ensure that your gifts benefit your charitable causes and do so while maintaining your best interests.

Sign Here…

When you receive a windfall, careful planning and mindful decision-making can help you maximize its positive impact on your life.

There’s no rush. Don’t do anything stupid. Lean on trusted professionals to fill in your gaps in knowledge.

Thank you for reading! If you enjoyed this article, join 8500+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week. You can read past newsletters before signing up.

-Jesse

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Do you count the days until payday, and then watch all the money drain from your bank account to pay the bills the minute it arrives? Are you in a constant state of financial cha-cha; one step forward, but two steps back? If this sounds familiar, you’re in survival mode. It’s the place that anyone who has experienced money struggles (and really, who hasn’t?) knows all about. When you’re clawing out of the paycheck-to-paycheck cycle and fighting to keep your head above water, realizing a wealth mindset is only a pipe dream.

Let’s face it. When money flows in regularly, it’s easier to feel secure, safe, and supported. But when you’re in survival mode, it’s common to feel like a victim. In that state of mind, fear and panic often fuel really bad financial decisions. Here are some of the bad decisions I see people make when they are in a survival state of mind:

False Faith: I’m all for manifesting your reality with positive affirmations, but when people try to “prove” their faith in future earning power by going into debt and overspending, it’s just a misuse of the law of attraction.

Magical Solutions: Sorry to burst your bubble, but there isn’t a Swiss army knife to solve all of your financial woes. When in survival mode, many fall victim to the belief that if they just get this one website or program or retreat (insert whatever magical solution that tantalizes your daydreams here), then all will be peachy in their financial lives. Often, these tools touted to “get you back on track” cost more than you can afford.

Avoidance: Because you don’t feel like you’re in control, you divorce yourself from taking responsibility for it. You use your stories and circumstances as a shield, instead of dealing with what is right in front of you and accepting that what is required from you NOW is only temporary. It won’t always be like this.

Belligerence: We’re only human. If money struggles seem to be your constant companion, you might feel defensive or just plain worn out. “Darn it, I am sick and tired of feeling like I never have enough. Screw it!” And then you rush out to spend money you don’t have on something frivolous and dig yourself further into debt.

Attachment: Attachment is the idea that money has to come to us in a specific way or amount or time, or it isn’t “right.” The control freak tendencies we have attach us to a specific outcome and prevent us from letting things unfold—sometimes in a better way than we ever could have imagined.

Now that we know how survival mentality fuels bad decisions in our financial life, how do you move toward security? Take total responsibility.

Steps to Shift Out of Survival Mode

#1 Acknowledge your responsibility for the dynamics adopted from your family

We all have our stories. I had major stories from my father about self-employment. He always wanted to be an entrepreneur, and made it clear that he believed that our family was the reason he couldn’t. As a result, my origin story said such things as self-employed people fail and family prevents you from following your dreams. I had to take major responsibility for releasing these stories early on in my career—and it doesn’t seem like any coincidence that I am self-employed, does it?

#2  Take responsibility for your worry and energy levels

I am not saying this will fix anything, but it will help you make more level-headed decisions if you take a time-out for mental health consistently. And BTW, it’s easier to talk about money issues with loved ones when you’ve processed your emotions BEFORE the chat.

#3 Solidify your financial foundation

Your financial foundation includes cash flow, cash reserves, and debt. You will have trouble building and expanding (investing, big-ticket purchases, lifestyle expansion) until you’re very clear on how your life interacts with these three foundational areas (and until you feel secure). Commit to 15-30 minutes per week reviewing these areas. And treat yourself too…put on good music, get a really good cup of coffee and make the experience pleasant. Whenever you take financial action (or buy something) that deviates from the norm, ask yourself:

• Am I attached to an outcome?
• What is the story behind this purchase?
• What is my current emotional state?

You cannot immediately go from survival to peace of mind. It’s going to take commitment. It’s going to take work. But if you commit to working toward a more conscious money mindset, every step you take will increase your feeling of stability and security, even in the midst of money issues. If you want to clarify your money story and make a plan to get out of survival mode, check out the worksheets in my free resource library here.

The post Money and Survival Mode appeared first on Creative Money.

How to find money for a down payment

Ready to buy a home but wondering where to find that down payment? With the right tips and creativity, start building your savings without feeling like you’re turning your whole life upside down. Here are 10 ways to find extra money and turn that homeownership dream into reality.

Need money for a down payment?

Buying a home is like being in a circus these days. You’re juggling four flaming torches: good credit, manageable debt, stable income, and enough savings to keep it all going. Just balancing these on a regular day is a feat. But throw in the need for a down payment? That’s when you’re practically juggling chainsaws.

Worried about the credit torch? No problem. You can start by checking your free credit report summary on Credit.com (updated every 14 days!) to see how things look. This will help you spot any little credit gremlins you can kick out before they cause trouble. Maybe you’ll find a surprise bill or a forgotten credit card you left in your financial closet. Taking a few steps to improve your score can work wonders.

And if it’s the cash part that’s keeping you up at night, don’t worry — there are ways to give your down payment fund a boost without resorting to treasure-hunting on the beach with a metal detector (though to be fair, we won’t knock it until we try it). Here are a few ideas:

• Cut those daily luxuries – Yes, it sounds painful, but channeling your inner “DIY Barista” could save you hundreds.
• Side hustle like a pro – Whether freelancing, dog walking, or becoming the neighborhood “jack-of-all-trades,” a little extra income can add up fast.
• Sell those old “treasures” – Finally, admit that you won’t wear those rollerblades again, and let someone else enjoy them for a few dollars.

In the meantime, keep an eye on your finances like a hawk, and know that every little bit helps bring that down payment closer. With these minor tweaks, you’ll save for that house in no time (chainsaw juggling optional).

Here’s more . . .

10 ways to find money for a down payment

1. Move in with family

What? Heck no, you say? Well, hear us out (and let’s maybe keep this little conversation on the down low from Mom and Dad for now).

Living alone is great for privacy and, let’s be honest, getting to eat ice cream right out of the tub without judgment. But moving in with a nearby family member — if only temporarily — can be an absolute financial home run.

Think about it: that $2,500-a-month rent payment could vanish like your Wi-Fi on a Zoom call. You’ll be stacking cash faster than you’d thought possible by cutting your rent. Yes, it comes with a slight downside: your mom may insist on telling you how to fold laundry the “right” way. But hey, consider it free life advice.

While you’re in saving mode, do a little spending analysis to pinpoint other money-hungry culprits. Maybe it’s those daily lattes, weekly takeout nights, or that shockingly regular Amazon package on your doorstep. Cutting even a few expenses can free up serious cash, bringing you closer to that down payment in record time. Plus, when you’re eventually giving your folks the grand tour of your new place, you can brag about how intelligent financial moves made it all possible — just maybe leave out the ice cream habit.

So, for a short while, trade in a bit of privacy for the fast track to homeownership. It’s the ultimate cash-cow setup that could land you in your dream home quicker than you ever imagined.

While you’re in saving mode, do a little spending analysis to pinpoint other money-hungry culprits. Maybe it’s those daily lattes, weekly takeout nights, or that shockingly regular Amazon package on your doorstep. Cutting even a few expenses can free up serious cash, bringing you closer to that down payment in record time. Plus, when you’re eventually giving your folks the grand tour of your new place, you can brag about how smart financial moves made it all possible — just maybe leave out the ice cream habit.

So, for a short while, trade in a bit of privacy for the fast track to homeownership. It’s the ultimate cash-cow setup that could land you in your dream home quicker than you ever imagined.

2. Adjust tax withholdings

If you’re one of those who gets a hefty tax refund each year, it’s like giving the government an interest-free loan with your money — and where’s the fun? Instead of waiting until spring to get that one-time windfall, you can adjust your tax withholding to keep a little more cash in each paycheck.

Imagine it: a little boost each month that goes straight toward your down payment, no waiting, no wondering what you’ll get back next year.

Fill out a new W-4 form with your HR department to adjust your withholding. You might even feel like a financial wizard as you tweak those numbers to work in your favor. And yes, it might mean you won’t get that big refund check next April, but think about it: instead of splurging it all at once (we’ve all been tempted), you’re putting that cash to good use month by month, moving ever closer to your new front door.

Plus, you’ll get to keep more of your money now, which means no more standing around at the office party listening to everyone talk about what they’re doing with their tax refund. Instead, you’ll say, “I’m buying a house.”

3. Retirement funds

Did you know that some retirement accounts let you tap into those funds early to help make your first home a reality? That’s right — your hard-earned retirement money can, under certain conditions, do a little side hustle for you. However, like when you “borrowed” your sister’s car without asking, this move comes with a few rules and risks.

Each retirement account has its rules, so you’ll want to check the specifics before you start planning your future living room decor. A quick call to HR or your financial advisor can tell you if your 401(k) or IRA allows withdrawals or loans for a down payment. Typically, if you’re a first-time buyer (meaning you haven’t owned a home in at least three years), some plans let you borrow from yourself to finance part of your home purchase. Sounds great, right?

Well, before you pull out the checkbook, let’s talk about the potential downsides. Withdrawing from retirement accounts isn’t just like pulling cash from your savings — in fact, it can come with some hefty tax penalties, especially if you’re under 59 ½. With a 401(k) loan, you generally won’t face fines, but if you withdraw outright from an IRA, Uncle Sam will likely show up for his cut. Depending on your situation, you may owe both income taxes and a 10% early withdrawal penalty. That “free” down payment could cost more than you bargained for.

Beyond taxes, there’s the risk of shortchanging your future retirement. Money taken out of your retirement account doesn’t keep growing at the same rate as it would if left untouched, meaning you might need to work longer or save more later to make up for it.

In short, if you’re eyeing that retirement fund, go in with a game plan, and make sure the benefits of buying now outweigh the costs to your future self.

So, yes, your retirement fund can potentially help you land that home. Just be careful and cautious, and remember that while you may have a fabulous new house, Future You still wants to retire somewhere sunny someday.

4. Cash-out refi

If you already own a home, congratulations!

Not only do you have a place to binge-watch your favorite shows, but you might also have a built-in ticket to buying another property through a cash-out refinance. It sounds fancy, but here’s the gist: with a cash-out refi, you pull equity from your current home and use it to help fund a new property. Fannie Mae and Freddie Mac have recently decided this approach is A-OK for homeowners looking to buy a new primary residence. So essentially, your current home could become the unexpected MVP in pursuing property #2.

Now, here’s where it gets interesting (and maybe a little risky): this is a form of leveraged debt. You’re borrowing against the value of your current home to beef up your next offer, making you a more attractive buyer in competitive markets. After all, nothing says “I’m serious about this,” like an all-cash offer or a higher down payment backed by the value of your existing property.

But before you go all-in, remember: just because you can doesn’t mean you should. A cash-out refinance typically increases your existing mortgage balance, meaning you’ll have higher monthly payments and need to pay that new, shiny mortgage on your original home. Plus, if housing values take a dive or life throws a curveball, you could end up with two mortgages that stretch your finances thinner than a slice of deli ham.

So, if you’re ready to double down on real estate, just make sure the math and long-term risk work in your favor — not just for your wallet today but for the future, too. Your current home might be willing to help you but don’t let it become a financial frenemy.

5. Sell a property

Already a homeowner with some sweet equity in the bank? Well, here’s an option that might tempt you: selling your current home to fund your next dream house. Let’s say you’ve got $150,000 of equity chilling in your cozy living room. If you sell, you can use that chunk of change as a hefty down payment on your next property. Sounds like a winning plan, right? Well, let’s put a little asterisk next to “winning” because there’s a twist.

Here’s the tricky part: this plan hinges on both homes selling (and in a coordinated dance that only makes sense to experienced real estate agents). If your buyer backs out or a financing hiccup throws things off course, you’re suddenly in real estate limbo. You may end up staring at your dream house through the window, locked out until your current home sells.

To avoid heartache — and an impromptu crash course in couch-surfing — make sure you’ve got an experienced real estate agent guiding you through the two-step shuffle. Dual transactions are a high-stakes game; knowledge is power when pulling it off. Your agent can help you structure contingency clauses, plan for “what-ifs,” and, let’s be honest, talk you off the ledge if things get hairy.

So, while this method could fast-track you to the front porch of your new place, it’s not for the faint of heart. Go in with eyes wide open, a plan B (maybe even C), and a top-notch agent by your side. After all, in the game of “house hopping,” the better your prep, the smoother the move.

6. Sell your shit personal property

Sure, it’s nice to have toys – boats, motorcycles, jet skis, that prized pinball machine you got in a fierce eBay bidding war. But let’s face it: as much as these treasures bring us joy, none provide an actual roof over our heads. So, if you’re serious about buying a home, it might be time to say goodbye to some of those big-ticket items and hello to a sweet down payment.

If you do go this route, remember that documentation is everything. Selling your motorcycle for a quick cash infusion? Keep every paper trail and receipt handy, or that cash might as well be Monopoly money when it comes time for the bank to approve your loan. If you don’t have supporting documentation, lenders might not accept that cash for your down payment – and no one wants to be the person explaining an “under the table” transaction to their mortgage lender.

And if you’re thinking, “Selling my snowmobile and my Harley sounds a bit drastic,” don’t worry. A mortgage professional can help explore options to keep your ride safely in the garage. Ask them about low or no-down-payment programs and see if you qualify for down-payment assistance. These options let you keep a few of your beloved toys and buy a house.

Of course, before you go shopping for a dream home, it’s crucial to figure out what you can comfortably afford. Overextending yourself on a mortgage is the adult equivalent of realizing you’re on the last mile of a marathon with only one shoelace. So take the time to do a financial gut check, get your documentation together, and maybe keep that jet ski on your lakefront property for summer weekends.

7. Cut unnecessary expenses

While we’re getting rid of shit unnecessary stuff . . .

Identify areas where you can reduce spending – think of it as finding those sneaky little “luxuries” that have been quietly siphoning your bank account, one cappuccino at a time. Sure, it’s nice to dine out or start the day with a frothy latte, but cutting back can be surprisingly rewarding (and easier than it sounds!).

Let’s talk about dining out. Maybe it’s time to channel your inner chef and create “gourmet” ramen dishes at home. Or turn your kitchen into a makeshift café, complete with a “special of the day” like PB&J, made with extra love. You will save a bundle and might even gain a few new skills (or at least a funny story about your first attempt at homemade sushi).

Then there’s the notorious morning coffee run. If you’re dropping $5 daily on a latte, you’re looking at nearly $1,800 a year! Invest in a coffee maker or even a French press, and enjoy your coffee in the comfort of your pajamas without the judgmental stares of baristas when you ask for “just a little more foam.”

And those subscriptions — the ones you’re pretty sure you’re using but honestly can’t remember logging into since last year? It’s time to bid adieu. Say goodbye to that premium “meditation app” (that only stressed you out because you never opened it) or the streaming service you got for that one show, which has long since ended.

When saved consistently, even a few small cutbacks can make a real difference. Each saved dollar is one step closer to that down payment – and the reward of knowing you kicked your $10-a-month subscription habit for something way better: your own front door.

8. Start a side gig

If you’re serious about saving for a down payment, it might be time to embrace the side hustle of life. Think of it as turning your spare time into a cash machine, where you are both the operator and the mascot.

Freelancing is a great option. You can pick up gigs in design, writing, or even ghostwriting Yelp reviews (kidding… mostly). Platforms like Upwork and Fiverr make it easy to showcase your talents, whether in graphic design, copywriting, or being someone who knows how to optimize a spreadsheet just right. And each invoice paid is a little closer to that front door of your dreams.

If freelance life isn’t for you, let’s talk pet sitting. Get paid to hang out with adorable dogs and cats? Yes, please. Just be ready to deal with more judgment from your furry clients than you’ve ever gotten from your boss. Who knew that a poodle could look so unimpressed with your treat choices?

Or maybe tutoring is your jam. If you know your way around calculus or can wax poetic about Shakespeare, there’s a student (or stressed-out parent) who would love your help. Plus, you’ll get to revisit the thrill of quadratic equations and Hamlet’s existential dread — you know, the fun stuff.

For those who prefer something more hands-on, consider a retail gig. It might mean some weekend shifts, but you’ll master the fine art of folding clothes like a pro and meet some interesting characters along the way (there’s nothing quite like that one customer who insists that a “25% off” sign applies to everything, including furniture).

Whatever side hustle you choose the best part is knowing that each dollar earned is closer to your down payment. So get out there, embrace the hustle, and start banking those extra bucks.

9. Set up automatic savings

Set it and forget it: automation is the secret sauce for stress-free saving. By automatically directing a slice of every paycheck straight into a particular savings account just for your down payment, you’re basically putting your future house on autopilot — one less thing to worry about!

Here’s the beauty: when your savings are pre-deducted, you’re no longer tempted by those late-night online shopping sprees or the sudden craving for fancy brunch every weekend. It’s like your bank becomes that friend who kindly intercepts you before making questionable financial choices, saying, “Hey, maybe you don’t need that life-sized inflatable unicorn right now.”

And the best part? You don’t even have to think about it. With each paycheck, your account steadily grows without you lifting a finger. It’s the closest thing to “passive income” without a significant lottery win or the discovery of an unknown millionaire relative. Instead, you’re just quietly, consistently building your home fund while going about your day.

So set up that automatic transfer, sit back, and let your money work its magic. Before you know it, your down payment will build up faster than you can say, “I almost bought that on sale!”

10. Use cashback and rewards

Let’s talk cashback: a beautiful little perk that can turn everyday spending into bonus dollars for your down payment. By using credit card rewards, cashback apps, and loyalty programs, you can squeeze extra money out of your regular purchases, like groceries, gas, and even that “just one more” iced latte.

To get started, use a credit card that offers cashback on things you’re already buying. Pick a card that suits your spending style — some give rewards on groceries, others on dining, travel, or gas. The key is not to fall into the cashback trap of overspending. After all, spending $500 on a “just-because” kayak to earn $25 in rewards probably isn’t the math we aim for here.

Next, embrace cashback apps like Rakuten or Ibotta, which reward you for shopping through their platforms. With Rakuten, you earn a percentage back by clicking through their links to shop at big-name stores. And with Ibotta, you can save on groceries, household items, and more — just upload your receipts to collect cash rewards. It’s like getting a bonus every time you buy cereal or dish soap; before you know it, those little bits add up.

And here’s the cherry on top: set aside your cashback earnings specifically for your down payment fund. Sure, it might be tempting to cash out and buy a fancy brunch or a new gadget, but stay strong! Those rewards can grow surprisingly fast when you stay consistent. Just remember to pay off your card balances in full each month — otherwise, that interest will gobble up your rewards faster than you can say “cashback.”

With a little strategy, you can turn every dollar spent into a step closer to homeownership, transforming your spending habits into a clever savings hack. Plus, there’s something deeply satisfying about knowing that, thanks to your wise cashback moves, each dollar saved brings you closer to unlocking the door to your place.

Here are more ways to feel rich:

• 7 Tips for Dining Out on a Budget
• The Awesome Power of the 4 Financial Classes
• Our 13 Best Money Hacks

 

Click Here to Read the Transcript for This Episode

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I’m listening to episode 398 of the Journey to Launch Podcast, My Financial Freedom Story and The Steps You Need to Take To Reach Your Dream Life
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Other Links Mentioned in episode:

• I Quit My Job: Why & How I Quit My 6-Figure Job & How This Affects My Journey To Financial Independence
• Get your copy of my book: Your Journey To Financial Freedom
• Leave Your Journey To Financial Freedom a review! c
• Get The Budget Bootcamp
• Check out my personal website here
• Join The Weekly Newsletter List
• Leave me a voicemail– Leave me a question on the Journey To Launch voicemail and have it answered on the podcast!
• YNAB –  Start managing your money and budgeting so that you can reach your financial dreams. Sign up for a free 34 days trial of YNAB, my go-to budgeting app by using my referral link.
• What stage of the financial journey are you on? Are you working on financial stability or work flexibility? Find out with this free assessment and get a curated list of the 10 next best episodes for you to listen to depending on your stage. Check it out here!

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In this digital age, the role of Artificial Intelligence (AI) has become more and more significant in revolutionizing processes and enhancing efficiency of various sectors. Particularly, AI applications pave the way in the development of real estate business especially in dealing with customers. Indeed, AI is a must for real estate companies to excel in […]

Cosa succede agli ETF Obbligazionari e Monetari quando vengono tagliati i tassi d’interesse? Come cambiano i rendimenti?

Il 17 Ottobre la Banca Centrale Europea ha annunciato un taglio dei tassi di interesse di 25 punti base. Con i tagli di maggio, agosto, settembre e il nuovo taglio di ottobre, i tassi di interesse si assestano al 3,25%.

Come probabilmente già sai, quando la Banca Centrale Europea (BCE) aumenta o abbassa i tassi di interesse per gestire l’inflazione si scombina un po’ tutto il sistema economico e finanziario (dopotutto è proprio quello l’obiettivo!).

I cambiamenti che più impattano la tua vita quotidiana sono:

• si alza o si abbassa il tasso di interesse su mutui e prestiti
• si alza o si abbassa il rendimento delle obbligazioni

In questa analisi ci concentriamo sugli effetti sul rendimento delle obbligazioni dato che sono il motore che anima gli ETF obbligazionari.

Vediamo quindi quali sono gli effetti dei tagli dei tassi d’interesse sui tuoi ETF obbligazionari.

ETF a Brevissima Scadenza (0-1 anni) 

Gli ETF obbligazionari a brevissima scadenza sono fondi obbligazionari che investono in obbligazioni con una scadenza inferiore a 1 anno. Essendo la scadenza molto prossima, il valore di queste obbligazioni rimane pressoché invariato al calare (o all’aumentare) di tassi.

L’effetto più visibile però è la riduzione del rendimento dell’ETF. Le obbligazioni che entrano nel paniere dell’ETF infatti avranno inevitabilmente un rendimento medio inferiore rispetto a quello offerto prima del taglio dei tassi.

ETF a Breve Scadenza (1-3 anni)

Gli ETF a breve scadenza includono solitamente nel loro paniere obbligazioni con scadenze comprese tra 1 e 3 anni.

Avendo una scadenza media leggermente più lunga rispetto a quelli a brevissima scadenza questi ETF beneficiano maggiormente dal calo dei tassi. Questo perché col calo dei tassi le obbligazioni esistenti diventano più attraenti rispetto a quelle di nuova emissione con rendimento inferiore.

Ora che abbiamo visto cosa accade ai tuoi ETF obbligazionari a breve scadenza in caso di tassi in calo, andiamo a vedere cosa accade nel caso di ETF obbligazionari a lunga scadenza. (Saltiamo la scadenza media perché, per ovvie ragioni, rappresenta una casistica intermedia tra le due.)

ETF a Lunga Scadenza (oltre i 10 anni)

Gli ETF a lunga scadenza investono in obbligazioni con scadenza superiore a 10 anni. Vista la lunga scadenza questi ETF sono molto sensibili al taglio dei tassi.

Il calo dei tassi di interesse infatti rende le obbligazioni esistenti molto più attraenti per gli investitori rispetto alle nuove emissioni con rendimento più basso. Questo spinge in alto i rendimenti degli ETF obbligazionari a lunga scadenza.

Attenzione però, così come il calo dei tassi determina generalmente un aumento dei rendimenti di questi ETF, un eventuale aumento dei tassi può portare anche a delle perdite.

Lo hanno imparato a loro spese coloro che avevano in portafoglio ETF obbligazionari a lunga scadenza durante il periodo 2021-2022, anni in cui i tassi di interesse sono cresciuti a velocità record, facendo crollare il valore delle obbligazioni esistenti.

ETF Monetari

Per il momento ci siamo concentrati sull’impatto del taglio dei tassi d’interesse sugli ETF obbligazionari, ma non dobbiamo dimenticare che gli strumenti direttamente impattati da questi cambiamenti sono gli ETF monetari.

Gli ETF monetari infatti possono investire in obbligazioni a brevissima scadenza, ma anche in strumenti del mercato monetario (da qui il nome), come depositi bancari, pronti contro termine e certificati di deposito.

Questi strumenti sono impattati in maniera pressoché diretta e immediata dal calo dei tassi d’interesse. Di conseguenza, quando i tassi di interesse vengono tagliati anche i rendimenti degli ETF monetari calano.

Questo non vuol dire che gli ETF monetari avranno un rendimento negativo (a meno che i rendimenti non siano negativi, come è successo nel decennio 2010-2020), vuol dire che il rendimento cala: se prima del taglio i rendimenti “attesi” dell’ETF monetario erano del 4%, dopo un taglio di 50 punti base il rendimento “atteso” si abbassa al 3,5%.

ETF obbligazionari e tassi d’interesse – Conclusione

Come abbiamo visto gli ETF obbligazionari a breve scadenza sono praticamente insensibili al cambio dei tassi. L’effetto più importante infatti è l’abbassamento del rendimento dovuto all’abbassamento dei rendimenti delle obbligazioni di nuova emissione. Quindi questi ETF non beneficiano molto del taglio dei tassi d’interesse, anzi.

Questo vale ancora di più per gli ETF monetari, in cui il rendimento del sottostante è spesso ancorato in maniera diretta ai tassi d’interesse.

Al contrario gli ETF che investono in ETF a lunga scadenza hanno un comportamento pressoché opposto. L’abbassamento dei tassi d’interesse rende le nuove obbligazioni meno attraenti rispetto a quelle preesistenti e quindi fa aumentare il valore degli ETF obbligazionari a lunga scadenza.

Cosa dovrebbero fare dunque gli investitori? In un periodo di continui tagli ai tassi di interesse valutare la duration del ETF obbligazionario in cui investire diventa di importanza fondamentale.

Il problema? Tutti i professionisti conoscono già queste dinamiche e quindi il mercato sconta già le aspettative future sull’andamento dei tassi d’interesse. Di conseguenza è difficile speculare su questi andamenti. Ai piccoli investitori non resta che concentrarsi sugli unici pasti gratis: la diversificazione e la pianificazione finanziaria!

In altre parole, si tratta di creare un portafoglio d’investimento su misura per le proprie necessità e per i propri obiettivi d’investimento. Come fare? Leggi la nostra guida:

Of those accessories that have been mainly linked to stylish menswear garments, the dinner jacket – also known as tuxedo – has due to its cut and use of luxurious materials. It was manufactured from black or midnight blue wool and has either satin/grosgrain collar. Dinner jacket has now been associated with class and sophistication to those putting on the outfit. Today’s it is widely accepted as a part of black-tie dress code, the dinner jacket goes back more than a century of how formal wear has been styled.

Past and Origin of Dinner Jackets

The coat that one would associate with the dinner was first seen in Britain in 19th century but as a less formal piece of garment than the tailcoat. The previous Prince of Wales Edward VII ordered something less formal for his official restaurant for personal entertaining. He make a short black jacket with silk facings in order to have a removal from the formal tailcoats. It was taken up by the British aristocracy as soon as it came to the marketplace.

It crossed over to America towards the eve of the twentieth century and became particularly popular in Tuxedo Park, New York whence it derives its name. In the early part of the 1900s it come of age as a favored style amongst the aristocracy and celebrities of the day such as Hollywood legends Cary Grant and it became institutionally accepted in the required style of men’s suits.

How to Wear a Dinner Jacket

Wearing a dinner jacket involves several details:

• Fit: The jacket should fit closely, with an accentuated shoulder line, though always displaying clean-cut lines.
• Shirt: The white dress shirt is classic and can have a pleated front or piqué, usually with a wingtip collar.
• Bow Tie: The traditional bow tie would normally be black for a smart finish.
• Trousers: It was expected that trousers should be made of the same fabric as jacket, and mostly in the same color as the jacket. There is a satin stripe that goes up near the out seam of each leg.
• Shoes: Black patent leather shoes or polished Oxfords complete the outfit and maintain the ensemble formal.

What Made Dinner Jackets Popular

The dinner jacket has grown synonymous with a suave and debonair image courtesy of stars such as Humphrey Bogart and James Bond played by Sean Connery and Daniel Craig. Its continued use in classic and modern films has managed to make it an eternal style icon. Celebrities wearing dinner jackets to events like the Oscars and Met Gala keep the tradition going strong, adapting it yet keeping the quintessential elegance of it alive.

Dinner Jackets Used in Portraying a Particular Image

It does not only refer to a material object, worn by people, it stands for nobility and exquisite taste. A dinner jacket impart a spirit of neat workmanship and adherence to etiquette and protocol. It is usually worn on those occasions that are very formal, in which the wearers establish the right mood of sophistication and style that they consider is important. Still, the dinner jacket is now worn in modern contexts, and people design it with velvet materials and other different patterns.

What to Wear with Dinner Jackets

It is very much important that these are complemented with accessories that go along with the dinner jacket, including:

• Vest or Cummerbund: These smoothen the transition from jacket to trousers, adding that extra layer of formality.
• Pocket Square: A white pocket square provides a classic touch that is balanced by subtle pattern work that can bring in personal style.
• Cufflinks: Cufflinks add that touch of sophistication, hence completing the elegant look.

Wrapping Up

The mens dinner jacket remains an ageless creation by merging tradition with modern elegance. From the aristocracy of Britain to Hollywood’s red carpet, it must surely be a staple of style across the ages. Worn traditionally or put with a modern twist, the dinner jacket is one of those choices to exude class and sophistication-proving true style never fades.

The post The Dinner Jacket: A Timeless Piece of Elegance appeared first on Shopping Kim.

I do not know why, but the topic of wealth being tied into social class and the whole sociology of how rich people have acted throughout the ages, and even today, how they think, is an immensely fascinating subject for me. I have collected over the years, the following books talking about this very subject, […]

Post List of Books on Wealth, Class and Rich People Things at Save. Spend. Splurge..

When it comes to feeding a crowd on a budget, keto soup maker recipes and healthy comfort food recipes are lifesavers. These inexpensive large family meals deliver flavor without breaking the bank, making them ideal for busy weeknights. From easy soup recipes quick crockpot options to kid approved slow cooker meals, there’s something here for everyone. These healthy, inexpensive dinner recipes bring all the warmth of comfort foods to your table.

Dirt Cheap Healthy Crockpot Soup Recipes

Warm up this season with cozy winter soup recipes that keep both your budget and health in check. These fall crockpot family meals offer cheap and healthy dinner ideas perfect for any weeknight. From ultimate comfort food recipes to easy slow cooker recipes, these quick cheap dinner ideas bring flavor and warmth without the high cost.

Inexpensive Slow Cooker Soup Recipes

Keep your family warm with yummy soups for winter meals that are both budget-friendly and delicious. These inexpensive crockpot recipes bring together comfort food easy dinners and quick fall soups that everyone will love. From keto soup for a crowd to quick cheap family dinners, these recipes make satisfying meals easy and affordable.

Frugal Crockpot Soup Recipes With Chicken

For cozy nights and chilly days, easy soup recipes with chicken are perfect for fall comfort meals dinners that won’t break the bank. These make ahead slow cooker meals offer inexpensive gluten free meals that also double as comfort food when sick. From keto fall soup and stew recipes to hearty classics, these dishes bring warmth and ease to every meal.

Budget Friendly Crockpot Soup Recipes

As the weather cools, enjoy yummy soup recipes for fall that are easy on your budget and big on flavor. These winter slow cooker meals on a budget are perfect for quick healthy crockpot meals and inexpensive meals for a large group. From healthy soup recipes for crockpot gatherings to comfort food party ideas, these dishes keep everyone warm and satisfied.

The post 20 Cheap Crockpot Soup Recipes appeared first on Budgeting Couple.