Beth Williams | Future Wallet

💰 I help millennial women grow their financial wellness 🎓 Berkeley Haas MBA, Ex-Google 👩🏻‍💻 1:1 Coaching & Education. Sign Up👇

[Beth Williams | Future Wallet @FutureWallet]

@christine_benz Love this! I regularly reflect on the same - that my biases lead to less than “perfect” financial decisions. However a strong financial education also helps us know what’s truly a serious risk vs an optimization opportunity. It’s ok not to optimize everything.

[Beth Williams | Future Wallet @FutureWallet]

Four places to get a better return on your cash:

1. High Yield Savings account
2. CDs
3. I-Bonds
4. Treasury Bills

I have money in all of these except CDs, how about you?

[Beth Williams | Future Wallet @FutureWallet]

@MegBartelt It’s fascinating you say this, because your blog posts read very differently to me. IMO they show a lot of depth and perspective.

[Beth Williams | Future Wallet @FutureWallet]

@MattFizell @MegBartelt To clarify — my understanding is that you could use this strategy to hit a personal credit card bonus, but we shouldn’t be paying business taxes with a biz credit card

[Beth Williams | Future Wallet @FutureWallet]

@MattFizell @MegBartelt I also did this strategy last year to hit a credit card bonus, but then I recently learned from an accountant that federal/state taxes should always be paid out of a personal checking account with the exception of LLC annual fees. Have you heard differently?

[Beth Williams | Future Wallet @FutureWallet]

@MeasureTwiceMNY HSAs too! If someone reimbursed themselves for a sizable chunk of past expenses, could be a decent amount of funds.

[Beth Williams | Future Wallet @FutureWallet]

@MegBartelt Not explicitly FIRE oriented research, but the rational reminder podcast has done some episodes on this. Several of the research papers are in the comments section- https://t.co/7cms50kFJQ

[Beth Williams | Future Wallet @FutureWallet]

@clobaremoney Good for you! Takes a lot of courage to dive into these things (and even more to talk about it publicly) 💛

[Beth Williams | Future Wallet @FutureWallet]

@ElliottMAppel @lady__bost @dollarsanddata For clients in this boat I often recommend they keep an emotions tracking journal for their spending. How are they feeling before, during, and after making a purchase? Look for themes over time. The focus is less on how much money they’re spending, and more about why.

[Beth Williams | Future Wallet @FutureWallet]

@ElliottMAppel @lady__bost @dollarsanddata I would figure out what emotional gap the spending is filling — for ex, do they feel lonely, and then spend money to feel less lonely… or spend money on clothes to help them feel more confident, etc.

Then find ways to solve that emotional need that don’t involve spending.

[Beth Williams | Future Wallet @FutureWallet]

@MikeZungCFP Pardon the typos: a three year old car that seemed practically new. Typically you can purchase a top-of-the-line model with a CPO car for a good price. People still get in my car and ask me if it’s new 🤷🏻‍♀️

[Beth Williams | Future Wallet @FutureWallet]

@MikeZungCFP Not Carmax, but I’ve had a great experience purchasing certified preowned. Comes with great warranties, and you’re typically not paying the premium that you get with a brand new car. I bought a three year old Honda that was practically new with few little miles for a great price

[Beth Williams | Future Wallet @FutureWallet]

@jbrendanfrazier Most American's don't have a housecleaner.

However, many high income Americans do (who might also pay for financial planning).

[Beth Williams | Future Wallet @FutureWallet]

Fun fact: HSA contributions are deductible from your federal taxes but not state taxes if you live in CA.

If you live in CA and contribute to an HSA, your wages in box #16 on your W-2 likely are greater than in box #1.

The more you know 😃

#itstaxseason

[Beth Williams | Future Wallet @FutureWallet]

@ramit Balance is difficult - I find the most people tend to be on one side or the other (over-savers or over-spenders). Being in the middle takes a lot of self-awareness and regular reflection. You don’t typically end up there by accident.

[Beth Williams | Future Wallet @FutureWallet]

@MegBartelt Same here, my parents did this with me growing up, I do it now with my partner, and I plan to continue it when we have kids. Cooking at home saves us money, but that’s not why I do it. Instead I find it improves my mental and physical health and relationships.

[Beth Williams | Future Wallet @FutureWallet]

@perfinclub Happy birthday, Jeremy!!! Hope it’s a good one!

[Beth Williams | Future Wallet @FutureWallet]

@BradWeatherbie @MegBartelt Yeah, I’m aware of this (as well as the behavioral advantages of automated 401(k) contributions). There are many ways to optimize taxes, including using brokerage accounts. The comment was more broadly was that people don’t understand how taxes work on tax deferred accounts.

[Beth Williams | Future Wallet @FutureWallet]

@MegBartelt Yes -- the perception is that pretax contributions are saving you money on this year's taxes (without the realization that those taxes will eventually be due).

This comes out like: "I'm saving $6K by contributing to a 401K"