It Doesn't Make Cents

What would you do differently with your money if you weren’t constrained by “supposed tos?”

We’ve talked a lot about what we’re “supposed” to do to be real adults and be considered successful on the right path. We've tackled everything from college to marriage to homeownership to having kids. Topics covered in this wrap-up episode * What makes an adult? * Do you really want to follow that prescribed path? * The importance of re-examining your life path and money to determine if you really want to do it. * Realities of today: working hard doesn’t guarantee you financial success. * What’s something each of us would have done differently if we felt we could? * What are we doing now that’s unconventional according to society? * What’s the biggest surprise from this season? * What’s something you want to delve into deeper in the future? Our takeaways from season 2 * The importance of financial coaching to help you decide what really matters to you. * How we’ve made unconventional choices and they’ve worked out for us. * The research really helps us understand how the American Dream isn’t what it’s cracked up to be and might not even be attainable in the current stage of capitalism. Our financial resource Sarah and Miranda agree that the CFPB offers great tools for understanding money [https://www.consumerfinance.gov/consumer-tools/educator-tools/financial-well-being-resources/]. * Sarah Li-Cain [https://sarahlicainwrites.com/] * Miranda Marquit [http://mirandamarquit.com/] Get full access to It Doesn't Make Cents at itdoesntmakecents.substack.com/subscribe [https://itdoesntmakecents.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

Are you stupid if you live in a high-cost area?

Geo-arbitrage is the practice of moving from an area with a high cost of living to a place with a lower cost of living. It’s one of the bits of advice some FIRE enthusiasts suggest for those looking to reach financial freedom faster. But does using geo-arbitrage always make sense? Topics covered in this episode on geo-arbitrage * What is geo-arbitrage? * Is moving really just about the money? * How to understand your lifestyle and how it fits into geo-arbitrage * Reasons to move * Realities of moving to a low-cost-of-living area and some of the challenges * Understanding taxes—it’s not just about income taxes * Living in a high-cost-of-living area can be the right choice to save your sanity Sources used for this episode on LCOL vs. HCOL area * Our rant episode [https://itdoesntmakecents.substack.com/publish/posts/detail/147765302?referrer=%2Fpublish%2Fposts]that includes info from Eric Rosenberg about choosing a HCOL area * Our episode on choosing whether to have kids [https://itdoesntmakecents.substack.com/publish/posts/detail/151179016?referrer=%2Fpublish%2Fposts] * Cost of moving information from HireAHelper [https://blog.hireahelper.com/2024-study-moving-costs-set-to-reach-a-five-year-high/] and Nerd Wallet [https://www.nerdwallet.com/article/mortgages/how-much-does-it-cost-to-move] * Find information on state and local taxes and property taxes from the Tax Foundation [https://taxfoundation.org/data/all/state/2024-sales-taxes/] and Bankrate [https://www.bankrate.com/real-estate/property-tax-by-state/] * CNN Money’s cost of living calculator [https://money.cnn.com/calculator/pf/cost-of-living/index.html] that can help you compare salary needs in different areas * Cost of childcare by state according to World Population Review [https://worldpopulationreview.com/state-rankings/child-care-costs-by-state] * Home insurance cost by state from Insurance.com [https://www.insurance.com/home-and-renters-insurance/home-insurance-basics/average-homeowners-insurance-rates-by-state] Our financial resource If you want to learn more about geo-arbitrage and how to make it work, check out this article from Smart Asset [https://smartasset.com/financial-advisor/geographic-arbitrage]. * Sarah Li-Cain [https://sarahlicainwrites.com/] * Miranda Marquit [http://mirandamarquit.com/] Get full access to It Doesn't Make Cents at itdoesntmakecents.substack.com/subscribe [https://itdoesntmakecents.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

Should you bust your butt to maximize your earning potential?

We’ve talked a lot about hustle culture and the grindset bros and girl bosses who drive the narrative that time is money and you must be productive all day, every day. But is being a workaholic really the way to make all the money? In this episode, we discuss how you don’t always have to be productive and how sometimes it’s okay just to do something because you enjoy it and not because it makes you money. Topics covered in this episode on finding time to NOT be productive * The “time is money” concept and the reality behind exchanging time for money * “Passive” income and what that means * The horribleness that is feeling that you have to monetize everything you do * Why you don’t have to “maximize” your time to be successful * The fact that minimum wage workers often work harder than others and the reality that many people need side gigs to survive * Tips for breaking out of the productivity trap * Understanding “enough” * Using values-based spending to require less * How to use self-care effectively without breaking the bank Sources used for this episode on sticking with your “real” job * How Toxic Productivity Can Affect Chronic Illness [https://www.ccyanetwork.org/news/how-toxic-productivity-can-affect-chronic-illness] * Information on the negative impacts of toxic productivity [https://www.newportinstitute.com/resources/co-occurring-disorders/toxic-productivity/] from the Newport Institute * Drexel University’s report on how minimum wage isn’t enough for most people to live on [https://drexel.edu/hunger-free-center/research/briefs-and-reports/minimum-wage-is-not-enough/] * MIT’s living wage calculator [https://livingwage.mit.edu/] * Miranda’s article on how hard you have to work earning minimum wage [https://mirandamarquit.com/what-exactly-is-a-minimum-wage-work-ethic/] * Information from Civic Science about how many more people are taking on side hustles [https://civicscience.com/more-americans-are-taking-on-side-hustles-in-2024-including-self-employed-gigs/] * Sarah’s Substack, Search For Enough [https://searchingforenough.substack.com/] * Why Do I Feel Guilty When I Relax? [https://psychcentral.com/blog/reducing-your-guilt-about-not-being-productive] * American Heart Association article on self-care [https://www.heart.org/en/healthy-living/healthy-lifestyle/stress-management/self-care-isnt-selfish-infographic] * Self Care: What It Is and What It Is Not [https://news.dasa.ncsu.edu/self-care-what-it-is-and-what-it-is-not/] Our financial resource Consider checking out our friend Kara’s website Bravely Go [https://bravelygo.co/]. She talks a lot about sustainable finance, values based spending, and taking care of yourself in this late-stage capitalist hell. Also consider reading the book Laziness Does Not Exist [https://www.amazon.com/Laziness-Exist-Devon-Price-Ph-D/dp/1982140100]. * Sarah Li-Cain [https://sarahlicainwrites.com/] * Miranda Marquit [http://mirandamarquit.com/] Get full access to It Doesn't Make Cents at itdoesntmakecents.substack.com/subscribe [https://itdoesntmakecents.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

There's no ladder to climb

A friend recently walked off a job that pays fairly well for this area because the work environment was toxic and he wasn’t getting the time and flexibility he needed to be with his son. In fact, an MIT Sloan Management Review survey from 2022 [https://sloanreview.mit.edu/article/toxic-culture-is-driving-the-great-resignation/] pegged a toxic work environment as the number one indicator of people leaving during the Great Resignation. You don’t need to stick with the traditional career path, staying with a job for two to three years—or longer. There are a number of interesting ways to change things up and get a little more from your life and work without following a prescribed path. Topics covered in this episode on nontraditional work arrangements * How exhausting the corporate ladder can be * General feelings about burnout * The reality that you could lose your job at any time—it’s not more stable than freelancing or being an entrepreneur * Life also contributes to burnout * Building an FU fund and concerns about having to do what you must in order to survive * Alternatives to sticking with a traditional job * Sabattical or mini-retirement * Part-time work * Barista FIRE * Job hopping and how it can lead to better jobs and better pay * The realities that you need to plan ahead, especially for healthcare, if you want to take an unconventional approach to work * Acknowledgement that it requires resources to take advantages of these alternatives Sources used for this episode on sticking with your “real” job * The SHRM’s survey results on burnout [https://www.shrm.org/topics-tools/news/inclusion-diversity/burnout-shrm-research-2024] * Whistleblower story [https://www.tampabay.com/news/environment/2024/09/03/florida-state-parks-whistleblower-james-gaddis-leaked-plans/] referenced by Sarah * Jillian Johnsrud talks with Forbes [https://www.forbes.com/sites/bobbyhoyt/2024/05/10/jillian-johnsrud-is-retiring-often-and-says-its-possible-for-you-too/] about mini-retirements * Read about choosing a part-time job [https://thefioneers.com/part-time-job/] to help with Slow Fi * Money Flamingo explains Barista FIRE [https://www.moneyflamingo.com/barista-fire/] * Using job hopping [https://www.cnbc.com/2022/08/11/millennial-recruiter-how-to-use-job-hopping-to-make-more-money.html] to increase your salary * Experian [https://www.experian.com/blogs/employer-services/seasonal-and-part-time-workers-unemployment-benefits-eligibility/] offers insight into state requirements for unemployment for seasonal and part-time work Our financial resource This article on job hopping from Indeed [https://www.indeed.com/career-advice/starting-new-job/job-hopping] offers a look at the pros and cons of job hopping, plus provides helpful information on deciding when to leave a job and gives concrete tips for successful job hopping. Consider supporting us by upgrading to a paid subscription here (so we can continue to keep doing this work) Subscribed Or, for a one-off donation, buy us a refreshing beverage on Ko-fi [https://ko-fi.com/itdoesntmakecents]. And make sure you check out our websites as well: * Sarah Li-Cain [https://sarahlicainwrites.com/] * Miranda Marquit [http://mirandamarquit.com/] Get full access to It Doesn't Make Cents at itdoesntmakecents.substack.com/subscribe [https://itdoesntmakecents.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]

It’s ok to keep your 9-to-5

We hear it all the time from hustle bros and entrepreneurial gurus: the only way to live your best life is to quit the 9-to-5 ASAP and build your own business empire. Otherwise, you’ll die sad and alone and probably poor as well. It’s easy to disparage the “traditional” job. We talk about escaping the rat race and finding financial freedom. In this episode, we talk about how even though the regular career path can be tedious at times and even lead to burnout, you don’t HAVE to quit your 9-to-5 to have a good life and build wealth. Topics covered in this episode on keeping your 9-to-5 * We talk about hustle culture and how it can be toxic * There are risks that come with quitting a 9-to-5 and you need to think about them * Consider the fact that starting a business can take a lot more time than you think * Are you prepared for the stress it might put on your family? * Not everyone wants to be an entrepreneur, and that’s just fine * We talk about how you can build wealth while working a 9-to-5 * Sometimes even having a business and doing entrepreneurship looks suspiciously like a “real” job * Consider adding a side hustle to your 9-to-5 if it fits your goals and objectives * If you decide to transition away from a 9-to-5, be intentional about it and plan ahead * Acknowledgement that there are issues with a W2 job and that you could easily lose that as quickly as you lose income from a freelance business or entrepreneurial venture Sources used for this episode on sticking with your “real” job * Small business failure rate as reported by Lending Tree [https://www.lendingtree.com/business/small/failure-rate/] * Collected data on how much small business owners work [https://www.score.org/resource/blog-post/how-hard-small-business-owners-work] * As promised, the essay from Judy Brady (Syfers): I Want a Wife [https://www.columbia.edu/~sss31/rainbow/wife.html] * Use the Investor.gov calculator to estimate your potential earnings through investing [https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator] * Miranda’s post on HSAs [https://mirandamarquit.com/want-another-tax-advantaged-investment-try-a-health-savings-account/] on her website, as well as something she wrote for Money Talks News [https://www.moneytalksnews.com/reasons-you-need-a-health-savings-account-and-how-to-start-one/] * Article on the value of employee benefits from Nerdwallet [https://www.nerdwallet.com/article/finance/what-are-your-employee-benefits-really-worth] * Listen to this great episode from Buzzsprout [https://conversations.buzzsprout.com/328919/episodes/13787252-sarah-li-cain-building-a-profitable-freelance-and-podcasting-career] with Sarah about her transitions from teacher to freelancer and what that decision-making process looked like Our financial resource Hustle culture is steeped in toxic productivity. Before you decide to use it as a way to escape your current woes, take a step back. Our friend Tiffany Grant has a great look at hustle culture [https://moneytalkwitht.com/blog/pros-and-cons-hustle-culture/], its pros and cons and how it can lead to burnout.   Consider supporting us by upgrading to a paid subscription here (so we can continue to keep doing this work) Subscribed Or, for a one-off donation, buy us a refreshing beverage on Ko-fi [https://ko-fi.com/itdoesntmakecents]. And make sure you check out our websites as well: * Sarah Li-Cain [https://sarahlicainwrites.com/] * Miranda Marquit [http://mirandamarquit.com/] Get full access to It Doesn't Make Cents at itdoesntmakecents.substack.com/subscribe [https://itdoesntmakecents.substack.com/subscribe?utm_medium=podcast&utm_campaign=CTA_4]