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Live: US Strikes Iran
The US struck three Iranian nuclear sites on Saturday. This escalates US involvement in the Middle East.
Image from shutter stock
The personal finance implications include potentially higher gas prices and perhaps more job opportunities in cybersecurity, defense, and international relations.
There are tons of other downstream effects that come from involvement in geopolitical conflict that we’ll likely feel over time.
Overall, it’s an intense time in politics and global conflict. Stay informed and take care of yourself.
There are many unknowns ahead.
Learn: How To Budget For What You Want
Let’s say you want a new laptop. Or a trip to Italy. Or just to not cry every time you check your bank account.
You can buy whatever you want if you budget for it.
Here’s the trick: flip the script. Instead of asking “Can I afford this?” ask “How can I afford this?” Build your finances around your goals.
Set the goal. Know exactly what you want and what it costs. Whether that’s a trip, a computer, or a Subaru Baja.
Break it down. Divide the total cost by how many weeks or months you want to save for said Baja.
Prioritize. Allocate a set amount or percentage of your income towards that auto-abomination and make that transfer as soon as your paycheck is received.
Automate it. If possible set up the transfer so that your money moves automatically and you don’t even have to think about it.
Image from Subaru, the pinnacle of early 2000s high technology: The Subaru Baja
This enables you to buy whatever you want. Not by taking away from what you enjoy, but by prioritizing your goals.
I applied this recently but to a much less exciting purpose.
For my internship this summer, I estimated that I would need about $2,000 for monthly necessary expenses. So I calculated how much income I would receive, and the amount of my income I would have to take out of each paycheck in order to have $2,000 for necessary expenses every month.
After I had that allocation set up, then I decided how I would be spending the rest of my money, knowing that my needs would be met and I wouldn’t have to stress.
Leverage: After-Tax Paycheck Calculators
Because what you earn on paper and what hits your bank account are devastatingly different.
I just used this. These calculators help you plan ahead when you’re putting together a budget.
Pros:
They tell you what you will actually be able to spend, not your gross pay.
This makes budgeting more realistic.
Cons:
The calculator I used was off.
While in my case it overestimated the taxes and said I would have less pay, the opposite could happen and that could be problematic. This tool is better as an estimate rather than an exact number.
Make sure to google a calculator specific to the state/whichever place you live. This will make your result as accurate as possible!
Also, quick reminder that I am not sponsored by any of the tools I note here. I wish I was! These are just the tools I use.
Launch!
What do you actually want to buy? Always wanted a premium flamingo floaty? Be bad! Write it down. Google the price.
Now, work backwards and build your budget around your future flamingo floaty friend (or your desired purchase).
You deserve nice things, and your money can get you it. So budget your funds to buy what you want.
;)
Hey!
Thank you so much for being a part of this newsletter. I am grateful to write to you weekly and I hope this helps you feel more confident with your finances.
If you found this newsletter helpful, please share it with a friend and invite them to subscribe.
I have a goal of helping people learn personal finance. It works better when more people get my emails.
Thank you for helping me (and your friend) out!
—Ben Brosnahan
