Long Legs and other Personal Problems

Project Net Zero

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Money is on a lot of our minds nowadays. Some people are worried how to pay bills this month because the government discontinued unemployment checks. Others of us are on Amazon every day buying our happiness to our doorstop. Either way, one thing is for sure: all of our spending habits have changed this year.

I am incredibly lucky to still have a job, and despite losing all of the income I was bringing in by teaching at the gym and braiding hair, I am still saving more than ever because I can barely spend any money. I’m cooking meals at home, having drinks at home, making coffee at home, not traveling anywhere… basically everything I spent money on BC (Before Covid), I can’t do anymore!

This change in spending habits came at a very interesting time, right after I got engaged. You may remember that my now-fiancé was the first person to whoop my finances into shape in 2017. He works in finance and needed to give me a crash course on how to be fiscally responsible. Now that we are talking about combining our lives and finances FOREVER, we talk about money a lot!

Back in 2017, he was horrified that I had credit card debt (not to mention my sky-high pile of student loans from law school), and he quickly taught me the importance of a retirement account. Also, I didn’t understand the concept of a savings account. I mean I did, but I didn’t have any money to put in said account.

I posted a blog in April 2017 to talk about my newfound addiction to mint.com. I finally gave in to my dad and boyfriend’s pleas to start budgeting and tracking money, and I became obsessed. At that time, I was checking my account every day. Now, it’s a little bit less, but it’s still fun to check! There’s something about watching the graphs populate that makes it fun to save. There is some science behind this; it’s all about the gamification. There are studies proving that this can work, and there are many apps that have been created specifically with this in mind. I love to look at the Trends tab with performance graphs and pie charts, and I love receiving the emails congratulating me about my increased credit score. The whole thing is fun. And since there’s nothing left in 2020 that’s fun, I was checking my mint the other day when I realized something… I’M ALMOST AT NET ZERO. That’s right, my net worth is approaching equilibrium. I told my fiancé and he said that when I get to net zero, we can throw an “Emily is Worth Nothing Party.”

Amazing News: I think I’ll get to Net Zero in a month or two.

Bad News: I was SO PSYCHED about the prospect of a party I didn’t realize that Covid would still be going on, so it was likely to be a party where I wear a party hat in the house and drink alone. Meh.

Anyway, I know you want to know how I got here. When I started using mint in September 2016, I had a net worth of $-107,000. At my lowest in November 2016, my net worth was $-111,612. Talk about daunting. I didn’t understand how I would ever dig myself out of 100K of debt by sticking to a $20/month coffee budget. You may recall my wake-up call was when my dad asked if I needed a payment plan to pay for my $120 state taxes. I was determined to try and get out of debt. Some of these tips and tricks you may be able to use, and some, I realize may not be applicable.

  1. Track your spending. This is pretty straightforward. Over time, tracking spending does change spending habits. For me, when I realized my $100 bar tab would show up at the end of the month on my mint, I thought twice before ordering another round.
  2. Get a roommate. I know, this seems dumb but BY FAR the most expensive thing each month in New York is rent. It’s astronomical. I never had a crazy expensive apartment, but I saved $500/month when I moved in with my boyfriend (now fiancé). The other day I added up how much I’ve saved on rent since we moved in together: $21,000 (42 months x $500). That’s a lot of moolah. Maybe you can’t move in with a boyfriend, but seriously consider how much of your paycheck you’re spending on rent before you sign a lease.
  3. Credit Card Churning, baby! This is a complicated concept for some, but if you’re spending money anyway, spend it in a way that earns you money back! (Spend more and save more! HA) I wrote a whole blog on it before, so I won’t reiterate, but I have probably saved $10K-$15K in travel in the past 4 years by solely using points.
  4. Set Goals. You guys know I’d rather set a goal than “make a resolution,” but SMART goals work! I had 4 financial goals in 2019, and by putting pen to paper and looking at them periodically, it kept me honest and committed. I surpassed them all! Make sure they are attainable, so you aren’t dejected.
  5. If you have student loans, try to understand repayment options and interest rates. Again, I wrote an entire blog series on my student loans, so I won’t say it again. But it’s important to know the interest rates of your loans so you can pay off the high interest ones first. Maybe combine it with #3 and get a credit card to pay off some of them.
  6. Take advantage of any retirement contribution from work. I am super guilty of NOT doing this. When my fiancé found out my work had a matching program that I was not taking advantage of, he literally texted me the next day at work to ask if I had signed up yet. And that means a lot because he does NOT text me during the day (we’ve worked on his texting; it’s gotten better since 2017). If your employer is matching any percentage of your contribution, take advantage. That is literally FREE money.
  7. Advocate for yourself at work. I’m talking about raises. Have you been at the same job for years without pay increases? You are your own best advocate. You need to figure out how to get compensated for your work. Is this easy? Hell no! It’s super hard. I coach people every day on how to ask for raises, and it’s still not easy for me to do! If you are very lost on where to start, I recently listened to a podcast with Ramit Sethi, author of I Will Teach You To Be Rich, where he laid out a specific plan on how to speak to a supervisor about a raise.

I did all of the things I listed above, and more. Between lack of travel this year and decreased all-around spending, I am almost at Net Zero! Do I still have student loans? You betcha. Almost $100K still. But my retirement is growing, I have a 401K, a Roth IRA, a savings account, the whole deal. And more than the numbers, I feel like I’m in control of my finances for the first time in my life. Do any of you guys set financial goals? What’s the hardest part about it? Have you had any big achievements? What do you do to celebrate?

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Miscellaneous

Meal Prep & Money Saving

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I’m here today to talk about my most recent money-saving venture: meal prep. In 2018, I had a resolution to bring my own iced coffee from home instead of buying, and it seemed to save money (about $900/year). When I first decided to try and meal prep, I wasn’t convinced it saved money. In fact, I’m still not convinced. Simple math: I used to spend $6-8 on lunch per day, with the occasional $12 day. I still feel like I spend a similar amount in groceries, but something happened a few weeks ago to change my mind: I actually did the calculation.

My friend posed a question to Facebook-world: “How much do you spend per month on groceries?” Somehow, even with living in New York, I spent less than almost everyone on the thread! I checked my mint, and I averaged $146/month over the past year, but $170 since December when I started bringing my own lunch ($274 if you include eating out & delivery, but I won’t go into that). That means I only added $24/month to my grocery bill to make about 18 lunches/month. That’s CHEAP.

To be fair, I really spent $340 on groceries, but I split it with my emoji-bf, whose lunches I also make. I know, I know, I’m a catch. But still… $170 for myself.

On the Facebook thread, people asked me how I did it, and I promised a blog. But spoiler alert, it’s not a huge secret. The main secret: it takes a LOT of time. The secondary secret: Trader Joes. Not only does TJ’s have the lowest prices I’ve ever seen (especially on organic berries and meat), but they also have some great pre-made/pre-seasoned things. And I’m always trying to cut down on time, so that helps.

Every lunch I make has the same formula: protein, vegetable, lots of seasoning, and some carb (preferably whole grain).

I’ll separate those three parts and lay out some of my fav options, while interspersing some of my go-to recipes. I have started putting my recipes on my Instagram story when I meal-prep, and some of my friends take screenshots to make the recipes for themselves. I’m such a trendsetter! And budget-setter!

Protein:

TJ’s is a game-changer here. I buy their organic chicken breast (thin-sliced). And I buy a LOT of it. Literally last week the cashier asked if I was preparing for the apocalypse. But I just freeze it! Then I always have chicken in the house. And I can season it however I want to make something for the week. Also, TJ’s has some pre-seasoned proteins we like. Here are a few of our go-to items:

  • Pesto Genovese Chicken Breast – we love this
  • Shawarma Chicken Thighs – my bf’s favorite
  • Pollo Asado – Also good, especially in taco bowls! I throw in black beans, onions, brown rice and fresh spinach – tada!
  • Chicken Sausage – Again, game changer. At Trader Joes they have a million options (roasted garlic, jalapeno, sun-dried tomato, smoked andouille, etc.) and they are about $4 for 5 links. At my regular grocery store they are $8.99 so this is a HUGE savings. They are fully cooked, so it makes for great, easy meal prep or last-minute dinner. Also, they don’t expire for a while so I can keep it in the fridge and wait for a day when I don’t want to cook but also don’t want to spend money.

Veggies:

TRADER JOE’S, MAN! Are you sensing a theme?? They have the cheapest produce. Sometimes when I put a lunch together, the vegetables are raw, sometimes baked, sometimes sautéed, or sometimes steamed. TJ’s has a lot of “steam in bag” options, so I mostly buy these, in case I run out of time to bake or stir fry them.

I love brussel sprouts, zucchini, broccoli, cauliflower, and spinach. Our lunches usually contain these. The best part of making all the food is I get to pick what’s in it!

Carbs:

Carbs are a necessity for my emoji-bf for lunch. He says he doesn’t feel full without them. Before I started meal prepping, I often bought salad for lunch. And even though it filled me up, I must admit that a carb added helps me get through the day. I often don’t eat between 1:30 pm when I finish lunch, and 9:30 pm when I get home from teaching Spin class. 8 hours is a long time without food! Carbs help me power through.

  • Brown Rice. This is usually what I make because I can put it on the stove to simmer/cook, then do the laundry, or take a shower, or even go for a short run. I’m all about double tasking. Also, it’s SO CHEAP. Especially at Trader Joes. I buy Basmati sometimes, or Jasmine, both are good, and incredibly cheap. It’s about $4 for a bag that can make 20 lunches or more.
  • Pasta. Again, I always try to use an alternative grain instead of white. I like the brown rice and quinoa fusilli pasta, or red lentil pasta, or vegetable radiatore. All of these are about $3/bag and make 6-7 lunches.
  • Refrigerated ravioli: TJ’s has some awesome ones and they are all cheap, but these are the unhealthiest carb option of the bunch, and heaviest, so I usually reserve them for dinner. Some of my favorites: Butternut Squash Triangoli, Lobster Ravioli, Honey Roasted Pumpkin, Spinach Tortellini, but our absolute FAV: Porcini Mushroom & Truffle Triangoli. Did I mention, these are each about $3??

Seasonings:

Again, I love Trader Joe’s for this. I can cook chicken a million ways using some of my favs:

  • Everything Bagel Seasoning! If you don’t have this, RUN and get some. It’s good on veggies, salmon, chicken, bagels… pretty much everything.
  • Umami Mushroom Seasoning Blend – “on its way to cult favorite status”
  • Red Curry Marinade
  • Soy Teriyaki (I love to throw chicken in a ziploc in this for 24 hours then simmer in a stir fry with fresh veggies. DELISH!)
  • Tikka Vegetables or other of the $1.99 Indian non-refrigerated packets. These come in many options, some veggies, some with lentils. I usually will add lots of fresh veggies to this mix and simmer on the stove. Sometimes I’ll add chicken sausage and there’s a whole meal!

Now that you know what I like the cook, the questions are how and when? I ask myself this, too. I thought I was totally tapped out on time since I have 5 different side hustles, but somehow, I’ve managed to fit this in. I usually try to complete all food prep for the week in under 2 hours. The best way to do this is by multi-tasking and buying lots of containers.

  • CONTAINERS
  • But still wine.
  • I wasn’t kidding about the containers.
  • So many.

You need to go in with a plan. I always try to cook in the least amount of time, and with the fewest dishes to wash (also cuts down on time washing less). I try to always be using at least 2 or 3 cooking methods at a time –

Example to save time: roast chicken in the oven while cooking rice on the stovetop and steaming veggies in the microwave.

Example to save dishes: boil pasta in a pot, split that into containers, then use the same pot to cook and season ground turkey, then add in the sauce and veggies in the same pot, and let simmer for 20 minutes, all while baking salmon in the oven for dinner (on foil… no dishes).

One dish!
  • Example of Tomato Sauce in process.

You guys get the idea. I hope this helped a little bit, even if for no other reason than to give you a shopping list of things to buy at Trader Joe’s! This blog is not sponsored, by the way. But if you have any connections at TJ’s and want to throw them my way for some coups, I’m all in! Buon Appetito!

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Long Legs and other Personal Problems, Miscellaneous

Credit Card Churning

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You’ve probably heard the phrase “money doesn’t grow on trees” or, “there’s no such thing as a free lunch.” Well, ladies and gents, I’m here to tell you that everything you learned is FALSE and there is a such thing as free money. It’s in the form of credit card bonuses and it is complete sorcery.

http://gph.is/1a4df5e

I was never part of the magic until I met my emoji boyfriend who got me in DEEP with “credit card churning,” and I’m loving every second of it. We actually have a little jig we do in our house called the “free money dance.” Not lying. Churning basically means that you get a new credit card to access the sign-on bonus, and then after a certain amount of time, you get another one, and start all over again. Some people think that this affects your credit score, which it does, but usually not enough for it to matter if you do it right. In general, a hard inquiry, which is what a credit card company does every time you apply for a new card, affects about 10% of your credit score. But if you do it infrequently enough, then your credit should be fine.

Yesterday, I just signed up for my 7th credit card in 3.5 years’ time. Aka the amount of time I have been with my boyfriend. It all started when we began to talk to each other about finances. These finance bros get off on this stuff. JK. But really, he was very interested to hear about my student loans, etc. We got to talking and he found out that I had a credit score in the middle 700’s, but had a credit card running balance of about $4,000. He was FLABBERGASTED. Literally, I think I had to pick his jaw off the ground. Maybe not literally, but he was gaping at me. He told me he didn’t understand how a person with my credit score could be paying interest on a balance, when I could just open a new card and do a balance transfer to buy myself time. Now, guys, if you’re confused, I was, too.

Quick explanation: Another reason people like to open credit cards is because they offer “balance transfer offers.” This means you can open a card, transfer your outstanding debt to a new card, and they offer to not charge you interest on it for a certain amount of time. I looked at this, realized I was getting free money, and I was HOOKED. I was able to pay off my credit card debt by saving all of the money I would have been spending on interest, and I did the same thing with my private student loans! I transferred my $6.5K from Wells Fargo to a credit card, and I have been making minimum payments for 18 months, without paying any interest! I have enough money now to pay them off by May, when the interest will kick in (this particular card had a 21-month interest-free grace period).

Again, balance transfers are not even the tip of the iceberg of this money, as the “real money” lies in the sign on bonuses. It seems crazy to me that this free money exists out there in the universe and people don’t access it left and right, but the truth is, most people don’t know how! There are millions of Reddit threads on the topic, but it can get very technical, very quickly. I am lucky to have an in-house financial advisor who is patient with me and explains the intricacies. I will try my best to give an equally-as-elementary explanation here.

I am not new to this credit card business. In fact, growing up, our family used to carry around little laminated cards in our wallets that my dad would make, to remind us which cards to use every quarter based on the percentages back we would get on different categories of purchases. Example: January through March, you should use the Discover card for gas, and the Visa for groceries; they’re 5% back. My parents still do this! This is #LevelExpert, and I do not recommend it for novices. Also, although 3% v. 6% does add up, most people “churn” for the bigger money bonuses. The Showcase Showdown, if you will, is the sign-on bonus.

Here’s the simple summary: credit card companies want to hook you on their cards, so they offer a bonus if you sign up and spend a certain amount of money, generally within the first 3 months. These bonuses differ from card to card – sometimes it’s miles, sometimes it’s points, and sometimes it’s cold hard cash in the form of a statement credit. The catch here, of course, is that you need to “spend money to save money.” The trick is not to open a card with a sign on bonus if you will need to make purchases you wouldn’t normally make in order to get the bonus. However, sometimes it’s still worth it if you come out on top!

Here’s an example: when I signed up for the Amex Platinum card, they offered a $1K bonus but you needed to spend $5K in 3 months. That is MUCH more than my budget, if you don’t include rent. So, I paid my rent on the card for a month to make the minimum. Rent in NYC is high. Now, this complicates things because my landlord charges 3% on credit card payments. But overall, it was still worth it to get the bonus.

I see some of you guys rolling your eyes, saying that this whole process isn’t worth it. But I ask you, if someone said you’d get $1,000 for it, wouldn’t it be worth it? That’s the trick. You need to get a bonus that’s big enough to be worth the work.

So far, I have gotten:

  • Citi Double Cash for 18 months interest free
  • Citi Diamond Preferred for 21 months interest free
  • Chase Sapphire Preferred for 40,000 bonus points
  • American Express Platinum for 100,000 bonus points
  • American Express Charles Schwab Platinum for 60,000 bonus points
  • American Express Blue Preferred for $200 back
  • Barclay’s Arrival Plus World Elite for $700 in travel back
https://gph.is/2OWJkaQ

I want to let you guys know, I am not the only one out there doing this. A lot of people do, especially if they know they have big purchases coming up where they will be dropping a lot of mulah anyway. Another example: a friend of mine got the Amex Platinum because he bought his fiancée’s engagement ring with it. So savvy.

I have traveled many times now by using bonuses. My trip to Spain last year cost me $120 out of pocket. My trip to Costa Rica was completely free. Durham, North Carolina? Free. I also transfered $110,000 Amex points to a Charles Schwab investment account at 1.25 cents/point, which means I got $1,375 FOR FREE! I have been very fortunate to have someone explain this to me and I hope I have been helpful as well.

Still confused? Try checking out The Points Guy; he is one of the most famous churners on the internet nowadays, and you can filter cards by the category you want rewards for (airline, cash back, etc.). He does receive money from clicks, and he does have partnerships with certain cards, but he is pretty clear when he receives kickbacks from companies, and he is also very reliable with his information. He even has a beginner’s guide!

A few warnings & tips:

  • If you have bad credit, you may not get approved for certain cards. Most credit cards rely on your credit score when they decide whether to approve you. You can check your credit score for free on Credit Karma to see where you stand.
  • Opening cards does affect your credit score, as I said earlier, so don’t do it too often. The general rule of thumb is to not open more than 2/year, or one every 6 months.
  • Closing accounts too often can also affect your score. When you close a card, your overall credit limit decreases. This increases the percentage of credit you are using (or “utilization”), and lowers your credit score. Try to keep the account open. You don’t need to use the card, just keep it in a safe place. At home.
  • Beware of annual fees! Some of these cards charge hefty annual fees. Sometimes it’s worth it for the bonus but be aware. You can always downgrade the card after you get the bonus, before you have to pay the annual fee the next year. Downgrading means keeping the account open but changing it to a less prestigious card without an annual fee. This way you aren’t closing an account, but you aren’t paying fees. I did this with my Chase card, switching from Sapphire Preferred ($95 annual fee) to Freedom ($0 annual fee).
  • Don’t carry a balance on cards. It can be very tempting to buy things. Especially when it takes 45 seconds to be approved on a new card, and they grant you a $12K credit limit straight out the gate. IT’S A TRAP! Make sure you can pay off your statement balance when it’s due, otherwise you owe interest and then THEY WIN.
  • A related point: If you’re opening a card to do a balance transfer, make sure you set up auto-payments for the minimum payments. You don’t pay interest, but you still have to make minimum payments, and you don’t want to miss those. Just set it on auto-pay and forget about it. Otherwise they charge interest and again THEY WIN. DON’T LET THEM WIN!

I hope this was helpful. I am not a financial planner. I am not good at this stuff. But I am understanding it more and more every day, and if I get free money and free trips, then I feel obligated to share the wealth. By wealth, I mean knowledge. Y’all b*tches aren’t getting’ any of my trips!

Do you guys have any other tips or tricks? Card recommendations? I’ll need a new one in 6 months!

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Long Legs and other Personal Problems

“Saving” Money Using Mint.com

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HAPPY CINCO DE MAYO!! How much money am I going to spend today on margaritas? It’s no secret that drinking is expensive. And living in NYC, there are so many other things that cost money. You’re always either paying with time or money, and since no one ever has any time, the question is always how to save money. Recently, I started using mint.com, and I have not been more addicted to a website since I discovered Facebook. I have the app and I sign on twice a day. It’s that serious.

Here’s how you use mint:

  1. First, you import all of your accounts. So easy having everything in one place!
  2. Then you create settings so they email you every time a large purchase is made. What an awesome idea! You can keep an eye on your credit card security!
  3. Then, you go through every single transaction you made and you create categories. The OCD in me LOVES this step. Carefully put each expense in a category. Such a sense of satisfaction when everything is labeled!

Things are fabulous! Ease of use, fraud alerts, categories, color coding, SO FUN!

And it IS all fun and games until you realize that it’s your actual money and that your “net worth” (which is the largest number on the screen, front and center) is approximately $-100K in the hole. Not so fun anymore. Quick reminder here again not to go to law school. Cue self-hatred and regret.

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