593: The 30 Day Money Cleanse: A Step-by-Step Detox Program for Your Financial Health
Jan 11, 2024
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Today's guest is Rachel Jimenez, one of the most popular Side Hustle Show guests. They discuss a 30-day money cleanse, improving financial health, tracking expenses, canceling and re-subscribing for discounts, maximizing 401k contributions, managing personal information, shopping smarter, and giving back.
Building a solid personal finance foundation through tracking accounts, setting goals, and discovering net worth.
Tracking personal profitability to determine savings and investment potential.
Taking a long-term view in investing, staying invested in the market, and optimizing personal finances to save time and earn rewards.
Deep dives
Building a Financial Foundation
The 30-day money cleanse focuses on building a solid personal finance foundation. It involves actions like tracking down all your different accounts, identifying your financial goals, and discovering your net worth. These small steps help you gain control over your finances and make informed decisions.
Calculating Personal Profitability
One of the most important metrics to track is your personal profitability. This involves subtracting your expenses from your income to see how much is left over. Knowing your personal profitability helps you determine how much you can save and invest for long-term financial goals.
Strategies for Financial Improvement
To improve your financial health, the podcast suggests various strategies. These include finding high-yield savings accounts, deploying excess cash in investments, and wasting money intentionally on experiences or purchases that significantly enhance your life. It also emphasizes the importance of creating a worst-case scenario binder and finding accountability through community support.
Investing in the Market: Long-Term View and Weathering the Storms
One key insight from the podcast episode is the importance of taking a long-term view when investing in the stock market. The speaker shared personal experiences of market crashes and subsequent recoveries, emphasizing the need to stay invested and avoid panic-selling. By looking at market trends and historical data, it was highlighted that, over time, the market has shown a positive average return of about 7%. The main point expressed was that, unless immediate cash access is required, staying invested in the market tends to yield favorable results in the long run.
Optimizing Personal Finances: Automating Payments and Maximizing Earnings
Another main idea discussed in the podcast episode was the importance of optimizing personal finances. The speaker recommended automating as many financial transactions as possible, such as bill payments and retirement contributions, to save time and avoid late fees. Additionally, the episode highlighted the opportunities for saving money and earning cashback through credit card signup bonuses, using cashback platforms, and utilizing gift cards. The idea of taking inventory of one's skills and salary and considering side hustles to supplement income was also emphasized as a means to achieve financial goals and long-term financial stability.
