FI Community's Money Rules, What I'm Reading & Watching

In last week’s newsletter I linked to a Ramit Sethi post about his ten ‘Money Rules’ and then asked you to respond with some of your money rules.

Here are some of the amazing responses you sent in (this is a longer newsletter today because I wanted to include so many of these emails):

·  Alison’s money rules: "1) Save & invest 50% the second my paycheck hits my account 2) Always have 3 months emergency cash fund 3) Any purchase is always bought in full 4) It's always worth paying more for a direct flight 5) Vacations are not the time to worry about money 6) Don't buy a salad at a burger restaurant 7) Don't loan anything out that you want to have back 8) Talk about investing and savings to anyone who will listen! 9) When you've decided to spend, spend without guilt 10) Only buy second hand clothing (this one is more for the planet)

·  Rachel’s money rule: "Like so many FI'ers, I had a hard time overcoming the guilt of spending after so many years dedicated to saving. A few years ago, I came up with a solution that flipped the mental switch for me. Each year I choose 10 charities that have personal meaning to me. I set up monthly donations to each of these charities that, over the course of the year, equal 5% of my previous year's spend. Example - If our family had $60K in expenses last year, I will be donating a total of $1,200 to these charities ($100 per month spread over 10 charities). I LOVE IT!!! Each year I have the pleasure of picking my 10 charities. I try to touch upon a wide range of issues with my selections: animal welfare, a local park I frequent often, our city's food kitchen, Doctors Without Borders, women's rights and issues, environment, etc. I consider this to be my "indulgence tax" and derive great joy from putting my wealth and good fortune to work for others."

·  Jenny’s money rule: "A Money Rule I always follow is: when going to the theatre, always spend money on "good" seats. For me, that's either center orchestra, (or stalls on West End) or first/second row mezzanine. No nosebleeds for me when it comes to musicals!"

·  Don’s money rules: "1) Have 2+ forms of income 2) Invest first > spend remainder 3) Understand how to use assets strategically in case of emergencies 4) Determine what makes you happy and spend on it 5) Eating healthy costs less in the long run 6) No limit for health and education 7) Be able to pick up the tab with friends and family 8) Marry once and marry proper 9) Understand what matters most to the spouse and make sure they are able to do that 10) Think long term with money and move on to living in the moment

· Sean’s money rule: "Money rule for flights: My rule is cross an ocean, get business class! East coast to west coast is about 4 to 5 hours to me and that is not worthwhile. Most of the time you get a big recliner and not a lay flat to allow for sleep. But transoceanic flights are longer, on better equipped aircraft, and those are worth business or first but on award travel (points/miles). Have used this for travel US to Spain, Germany, Australia, Hong Kong, Fiji, New Zealand, and Hawaii. All with miles."

·  Michael’s money rules: "A few of my personal "spending for happiness" rules: Whenever I fly somewhere as a digital nomad for more than a week, I will always book one-way flights because it makes room for serendipity and often results in more efficient travel. For longer travel it typically makes little sense to fly into and out of the same city and it unnecessarily constrains you into leaving a place before you really want to. One-way flights tend to be more expensive than round trip fares but the flexibility that it offers is well worth it for me. Never go out of your way to get cheaper gasoline. The price difference between cheap and expensive gas stations for a gallon of gas is often $0.10 or less. For the 10 gallon tank in my car that difference in price is often less than a dollar - hardly worth stressing over."

·  Tony’s money rule: "One thing I never compromise on is comfortable footwear, especially when it comes to working out, running, or daily wear. $200 pair of running shoes every 6 months? No problem. $15 pair of dri fit socks? Absolutely. $75 pair flip flops to wear every day in the summer? Yes please. All you need is a blister, or bad knees/hips/back and you'll be more than willing to spend on what works."

·  Andrea’s money rules: "The things we guilt free spend on are health. Gym membership with childcare, therapy, going to the doctor (which may sound normal but we wouldn't go before unless we needed to, now we're focusing on preventative care and checkups). And on the same page of health is food. Lastly is books for my kids. We utilize the library a lot, but my oldest is starting to read and every time he finishes a new book I'll take him to Barnes and Noble after school to pick out a couple new books. I don't even bat an eye at cost, because if my kid is excited to read it's worth whatever tag price."

·  Rebecca’s money rules: "1) Sometimes it is worth it to "buy time" (E.g. driving in the fast lane with a toll, paying for the fast train, taxi instead of bus etc). 2) Money should buy happiness. If it doesn't, you are using it wrong. 3) Shop around for a good deal and but don't get stuck in "analysis-paralysis"."