Read These 4 Personal Finance Books to Launch Your FIRE Journey

Many people have asked me where to begin on their journey to become work optional. For me, it all began with a book, and that’s why this is the starting point I recommend to people. Whether you check them out from a library or buy it for your own, these 4 books below are my absolute must reads in this specific order.

P.s. Some links below are affiliate links, meaning, at no additional cost to you, I may earn some compensation. All opinions are 100% my own! I truly appreciate you and your support. :)

1. Shift your Mindset • Read: Rich Dad, poor Dad

Rich Dad, Poor Dad by Robert Kiyosaki opens your mind to thinking like RICH people do about money. A huge factor in beginning your financial journey is being in the right mindset. Shift your frame of mind to how the wealthy think and get in the mindset that you too can become wealthy!

Don’t work for money, make your money work for you. – Robert Kiyosaki

This book was so eye opening to the power of being in control of my finances and adding ASSETS (things that make you money) versus LIABILITIES (things that lose value).

Buy on Amazon

($5.39 on Amazon at time of publishing.)

2. Learn Finance Basics • Read: I Will Teach You to Be Rich

To build a house of wealth, you must first have a solid foundation. This no-bullsh*t book, I Will Teach You to Be Rich by Ramit Sethi, is a crash course on finance 101. It touches on everything from negotiating bills to credit cards. It’s funny, actionable, and doesn’t encourage living like a pauper, but rather designing a rich life.

Spend extravagantly on the things you love, and cut costs mercilessly on the things you don’t. – Ramit Sethi

I bought this book for my two younger sisters who just started working. One bought 12 copies to give to her friends as graduation presents. If that doesn’t emphasize how much of a game changer this book is, I don’t know what will convince you.

Buy on Amazon

($8.79 on Amazon at time of publishing.)

3. Invest your money • Read: The Simple Path To Wealth

Read The Simple Path to Wealth by JL Collins when you’re ready to begin managing your own investments this guy breaks down how to do it simply and easily yourself. He talks about why you MUST be investing to have FU money, basically the concept of Financial Independence

I may not have owned a Mercedes, but I owned my freedom. Freedom to choose when to leave a job and freedom from worry when the choice wasn't mine. – JL Collins

TL;DR he talks about why you should be investing in low cost total US stock market index funds and total bond market index funds. That’s what I do!

Buy on Amazon

($14.39 on Amazon at time of publishing.)

4. Become Financially Independent/Retire Early • Read: Quit Like A Millionaire

I loved Quit Like a Millionaire by Kristy Shen on FI/RE for several reasons—She’s a woman in a male dominated FI community, she’s makes is conservative in her estimates, and for her breakdown on what to do when once you actually crossover to FI.

If you understand money, life is incredibly easy. If you don’t understand money, like the vast majority of people, life is incredibly hard. – Kristy Shen

This is a must read for anyone pursuing financial independence and wanting to retire early. Her belief aligns 100% with mine in that no matter your circumstances, everyone can retire early (no gimmicks, luck, or trust funds required!).

Buy on Amazon

($10.79 on Amazon at time of publishing.)

I’ve read manyyyy other FIRE books from Your Money or Your Life, Work Optional, and more, but these are the ones that stood out from the library of books I’ve read and continually point people to them whether their just beginning they are finance journey or somewhere in between!

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Disclosure: By using some of these links, at no extra cost to you, I may earn a small commission, which helps me help you! xo

2020 Mid Year Money Check In

Whoaaaa we’re halfway there! Wow 2020 has been a wild year. Just wanted to check in with you guys and share my mid year progress.

Savings Rate: 62%

What a drastic difference from 0% in January to now 95% in June. I moved back home in March so you can see that’s the inflection point where my savings rate went through the roof. Then in May my rent was taken over on my LA boosting my savings rate into the 90% range.

I want to keep that up at least through October, but am planning on holiday shopping starting during Black Friday so November and December I’m giving myself grace to save below that!

Side Hustle Income: $14,879

This year I’ve done so much freelance work, more than I’ve ever done in my life ever. Prior to this year I hadn’t done really any freelance design work as I don’t love to doing design work after working all day. In January and February I was only freelancing, so this amount covers those two months.

This number also includes the approximately $650 I’ve made through Poshmark sales.

9-5 Pre-Tax Income: $39,862

This is my pre-tax income for my 9 to 5 job. I love having a 9 to 5 for the structure and stability of an income and just in my life generally. I could never go back to freelancing design work on my own, but I’m so glad I tried!

YTD Gross Income: $54,741

My goal for this year is to earn six figures gross income (pre-tax) so I really needed that side hustle money to keep me on track for that since I only started my 9-5 job in March.

As long as my job remains steady I should be able to achieve my goal!

Net Worth: $193,000

I thought I could make it to $200K by June, but no such luck. Still a good effort! By end of July I will achieve it through my paychecks so long as the market doesn’t drastically crash!

Financial Independence Progress: 18% to FI

I’m up 5% from January on my progress to achieve financial independence and retire early. When I hit 25% FI I’m throwing myself a little quarter retirement party. It’s possible that it could happen as early as the end of this year, but if not, definitely Q1 of 2021.

Overall I’m super pumped with the progress I’ve made from this year! Can’t wait to see what the second half brings.

xo, Catie

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Quarantine Dating: 6 Frugal or Free & Fun Ideas (Together or Apart!)

Hey guys! Today, I have a guest post I wrote for The Money Minimalists blog. My friend, Kseniya, is a licensed real estate agent in Florida and a personal finance blogger and gives advice on achieving financial independence through real estate investing. For more content by her, check out the article she wrote on the first steps to first time home buying.

Dating is challenging as is, and given our circumstances it’s extra difficult, but it’s also been fun to get creative with it. At first I was resigned to not dating until the whole coronavirus situation was over, but now that it seems shelter in place is here to stay for the foreseeable future, I’m ready to get back out and try dating again under these new “normal'“ circumstances.

However since we can’t just meet up for drinks, I’ve brainstormed 6 free or frugal ideas for your next date night, all doable whether you’re physically with a partner or not!

1. PICNIC IN THE PARK

Together: Pack a picnic and a blanket and hop on your bike to your local park. It’s a nice change of pace to get out of the house for some fresh air. You can people watch over a beautiful charcuterie plate!

Apart: BYOMeal and blankets and sit 6 feet apart while eating your food. You can still watch people and talk together. Just because we’re physically distant doesn’t mean we have to be socially distant!

2. SOCIALLY DISTANT WALK & TALK

Is it just me or is everyone and their mom going walks these days? Or maybe you’re like me and going on walks with your mom. 

Together or apart: Hiking trails, by nature, are very narrow. It’s much easier to stay the recommended 6 feet apart from either your partner or people around you when you’re on a well paved sidewalk or street.

Grab your face mask and head to a fancy neighborhood to walk & talk, look at nice houses, and fantasize about which one you’d own! Talking about home ownership is a casual way to bring up my ultimate fave topic, life goals. This way I can ask questions about how they’re using their money to attain said goals! SUBTLE. (Or maybe not so much?) I have no chill.

If the relationship progresses, one day you might be using Kseniya’s free Home Buying Guide to start looking for your actual home together! ;)

3. QUARANTINE COOK-OFF

Sheltering in place seems to have turned everyone into quite the chef! I myself haven’t baked in years and all of a sudden I’ve turned into a Martha Stewart wannabe.

Together: Create the most extravagant meal based on what you have at home. Get creative here! Put those Goldfish crackers and Kraft mac & cheese together and create the ultimate mac & cheese Goldfish crusted popper. Ramen egg frittatas? Canned bean and corn taco salad? It’s all fair game!

Apart: Assemble a recipe roulette and have each person contribute 3 recipe ideas. Have one person randomly assign them numbers and the other person select one. Both make the same dish, video chatting as you put it together. Bonus points to whoever can plate it better!

For the final finish, leave your sweatpants behind and get fancy for the night! Pour some champagne and light the candles. Whether in person or virtually you can still share a meal together.

4. TAKE PERSONALITY TESTS TOGETHER

To say I love personality tests is a gross understatement. But whether you “believe” in personality tests or not, I think paves the way for bigger discussion points  like the way you think about the world and self-reflection!

Together or apart: Find your Myers Briggs type, Enneagram, Harry Potter house, Love Language, and Big Five score. If you’re into astrology try the Co–Star app, then discuss! Together or apart, this is a fun way to get to somebody more intimately.

5. MOVIE & GAME NIGHT

What would we do without technology keeping us socially connected?! Thank goodness for interwebz, or else you wouldn’t even be reading this right now haha.

Apart: Watch and discuss Tiger King together via Netflix Party. Share your screen via Zoom and play virtual interactive Jackbox Games, play Animal Crossing if you have a Switch, or House Party for some fun rounds of Heads Up. 

Together: Do a puzzle. If you have two, do a puzzle challenge and see who can finish faster. If you’re together, still watch Tiger King...because you need to understand what all the cool cats and kittens are wilding out about. Or brush off those old cards and play some classic gin rummy or nertz.

6. WINE & PAINT AT THE MUSEUM

One of my favorite in-person dates to go on in Los Angeles is the museums. Unfortunately most are closed right now, but that doesn’t have to stop you becoming an art aficionado.

Together or apart: Experience art and culture without ever leaving the comfort of your couch by going on a virtual museum tour. Visit The Broad in Los Angeles, The MoMA in NYC. Waltz through the Musée d’Orsay in Paris and many more museums via Google Arts & Culture! All of these amazing art institutions are offering FREE digital tours of their world class art collections.

After you’ve both found your favorite piece on display, grab a glass of wine and create some art yourself by drawing your partner. I’ve been attempting blind contour drawings–classic art class exercise. They often end up so bad that they’re kind of great. It’s hilarious and honestly makes for a pretty good abstract masterpiece. Maybe you will become the next Picasso!

Hopefully this list gives you a few frugal ideas to jump start your next quarantine date night. Leave a comment below with some fun date ideas you’ve tried! We’ll get through this COVID-19 together and back to real life soon.

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Disclosure: Some of these links are affiliate links, meaning, at no additional cost to you, I may earn some compensation. All opinions are 100% my own! I truly appreciate you and your support. :)

My no-spend challenge experience: why I succeeded and what I learned

Back in 2017, I decided that one of my resolutions would be to do a shopping ban.

I was a pretty spend-y gal prior to starting this. I’m not kidding when I say shopping was my cardio. I’d easily spend 7+ hours at the mall going through every store. I never went into debt for anything, but it is SO easy to spend a few hundred at Aritzia or Zara or Revolve.

My hope was that a shopping ban would significantly decrease my personal expenses, force me to live mindfully with what I already had, and help me be more environmentally conscious.

My Shopping Ban Challenge rules

1. I could buy products that needed replenishing. e.g. finish face wash; buy a new bottle

2. I could pay for experiences, e.g. going out with friends, traveling, food, etc.

3. I could buy clothes if it was an absolute necessity, e.g. buying a bridesmaid dress

4. I could buy gifts for others

5. It would last 3 months and then I could go wild 😜

Starting the shopping ban

I decided that the challenge would start on January 1st—classic new years resolution. As a last hurrah, I bought things I wanted as “Christmas presents” for myself before embarking on this shopping diet. I’m not even sure what I needed so badly. The “high” of a new purchase wears off very fast and clearly those purchases don’t spark any joy 3 years later.

Accountability & determination

January rolled around and I told all of my friends about my grandiose plan. This helped me remain accountable. Most friends were very encouraging, but a few close friends were doubtful that I could cut shopping cold turkey.

My friends were right in that I’m a pretty extreme person. It wasn’t an option in my mind to reduce spending by a little bit, it was 100% or nothing. Their doubt helped fuel my determination.

Unsubscribing from emails

As @saverspender posted the other day, for every $1 spent on email marketing, a brand typically sees about a $42 return.

I worked as an email designer for a long, long time so I subscribed to many email marketing lists for “research.” To reduce my temptation, I unsubscribed knowing that if I really missed the hundreds of emails spam I’d receive, I could opt-in again.

I used unroll.me to opt out of everything and honestly haven’t looked back. Even though it was so exciting to see something on sale for 50% off, that’s still money I wasn’t planning on spending.

Going through withdrawals

At first, I spent a lot of time thinking about the fact that I was doing a no-spend challenge. I’d walk into Target and literally just touch clothes to feel something. It was definitely not productive and even worse, it was very, very tempting. I started avoiding the clothes section entirely.

I’d put in my Amazon cart, face masks, a new eye cream I read about, a bug catcher and then click save for later. Withdrawals are normal, so I’d remind myself that this was only temporary. If I really wanted it all I could go hog wild later! “Three months. Three months. Three months,” I told myself.

The joy of less and giving

During the next few months I made the conscious effort to go through my products and finish every last drop. I’d giveaway things I didn’t need and I’d spend time researching the exact item I was going to replace it with.

Another major joy I found in these months was being able to buy things for friends birthdays or just because. It made me excited to mull over what would bring others happiness. The joy of giving increased my own happiness two-fold.

Q1 and beyond

April finally came around and I realized I really didn’t need or want the things I had pined over. From April to July I bought exactly one thing and ended up returning it because it didn’t fit well.

My newfound ability to consciously not buy had become a habit and I loved all the benefits (sustainability, savings, and self-awareness) so much that I ended up doing it in Q3 so I could save up for Christmas in Q4.

In 2018, I went full #nospendyear, which after having done it for 3 months on and off, made it not so much of challenge and more second nature. The next year, I only allowed myself to buy clothes thrifted and secondhand in 2019.

Key contributors to my success

1. Set a short duration for the initial shopping ban, increase slowly.

2. Avoided the challenge during an upcoming period of spending (moving, job changes, Christmas, etc.)

3. Unsubscribed to all marketing emails

4. Borrowed clothes to expand wardrobe—I have 3 sisters and 3 roommates who I could borrow clothes from if I needed

Did the shopping ban change my long term habits?

💯. The discipline and habits I’ve acquired during the shopping bans have carried on. I have little to no shopping urges and rarely browse for clothing online. That feeling of “I have everything I need” has stayed with me over the years.

I’m still a very extreme person. From not tracking my spending at all, I’ve become hyper-conscious of my spending. I realize I need to relax up on that a bit since I’m almost a bit miserly now. I’d like to give more generously.

I wish mental strength and resilience to all of you who are considering giving the shopping ban challenge a go. Even if you don’t succeed to seeing it through for the entire duration you set out on, you will not regret trying. If you have have any questions or need any encouragement write me a note in the comment section!

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Disclosure: Some of these links are affiliate links, meaning, at no additional cost to you, I may earn some compensation. All opinions are 100% my own! I truly appreciate you and your support. :)

8 Useful Steps Every First Time Home Buyer Should Take

Hey guys! Today, I have an awesome guest post by The Money Minimalists! I’ve been thinking about entering the housing market recently, especially since I think the area I’m in will become depressed with everyone working remotely these days. My friend, Kseniya, is a licensed real estate agent in Florida and a personal finance blogger. She’s worked with numerous first time home buyers and is here to shed some light on how to begin your home buying journey!

“When do I start preparing to buy a home”? This is one of the most common questions I get from first time home buyers. The best time to start preparing to buy a home is today. 

We waste years of rent payments under the impression that we cannot afford a home. You do not need to put 20% down to buy your first house. There are 3% down payment programs out there, and even zero down payment options. Buying a home can seem daunting but it’s one of the best decisions I’ve ever made and I’m here to show you how you can start planning for one today. 

8 Steps Towards Homeownership

Last year, I was a first time home buyer myself. I bought my very first home at 25 and finally got to experience what my clients had been going through for the past few years. Between my personal experience and guiding numerous others, I have created an in-depth guide going over the 8 steps towards homeownership. Budgeting is all about planning and accounting for your expenses and homeownership becomes much more attainable the earlier you start planning for it.

1. Understand why you’re buying a home

   Are you ready to settle down? Are you buying a home in the hopes of renting it out in the future? There are countless reasons people choose to buy a home. Understanding why is pivotal to making sure you approach homeownership the right way. 

   If you’re planning to transform the home into an investment property, the location and average rental prices should be a higher priority to you than if you were buying a personal home. Make sure you understand what this home means to you so you can approach the home search appropriately.
   

2. Determine your budget and timeline

   You do not need 20% down! In fact, the average down payment for a first time home buyer is 6%. There are also programs for 3% down payment, and even zero down payment! 

   But, keep in mind that down payment is not your only cost as a buyer. You will also have to budget for closing costs (usually around 4% of the purchase price, these include taxes, insurance, and processing fees), and the actual process costs (around $1000-1500, these include the inspections, survey, and appraisals).

   So, in total, the home buying process roughly costs: 3% down payment + 4% closing costs + $1,500. This will vary based on your down payment choice, property taxes, lender, and inspection costs.

   Once you determine the amount you need to save for, you can add this into your budget and determine how long it will take you to be ready. Keep in mind that some sellers are able to contribute and cover part of your closing costs, if not all.

3. Tackle your credit score

   You do not need impeccable credit to purchase a home. One of the most common loan programs (FHA) requires a credit score of 580. Keep in mind that different lenders might have “overlays” where they create more stringent guidelines for their loans. Be sure to speak to multiple lenders before committing.

4. Determine what you’re looking for

   The perfect house does not exist. You will need to determine what your priorities are so you can simplify your home search. Some common ones are school district, location, and size.

5. Familiarize yourself with the tools

   There is a wealth of information out there to help make the most informed decision on your home! You can look up whether the home is in a flood zone, crime reports, and much more!

6. Interview and pick a Realtor

   This is one of the most important steps. Your Realtor can either make or break your home buying experience. Make sure you pick one who you can trust and who will make it a stress free and enjoyable experience. 

   How do you find a Realtor? You can find them at open houses, Zillow, Yelp, Realtor.com and even social media! Search popular hashtags like “#[your city]Realtor”. Make sure to read their reviews before committing to one!

7. Interview and pick a lender

   Talk to at least 3 lenders before picking one! Your Realtor should be able to provide names of the ones they trust, and you can do your own research as well. The guidelines, fees, and interest rates all vary based on your lender.  You can also search for them on Zillow, Yelp, Realtor.com and social media!

8. Get pre-approved by a lender

   Once you’re ready to get the process rolling, you can get pre-approved by a lender! This is the process for you to become eligible for a mortgage. They will pull your credit, look at your last two years tax statements, last two months bank statements, and your pay stubs. Make sure to do this step at least two months before you’re ready to buy! 

Even if you’re a year or two away from buying a home, I recommend running through the down payment calculation and evaluating your credit score so that you can be productively working towards your goal. For a more in-depth run down of these steps, check out my 21 page guide here.

Please share these first time home buyer tips with your friends and family so they can be informed before buying a house! 

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