Podcast Summary
Discovering and minimizing hidden fees in old 401k accounts: Be mindful of hidden fees in old 401k accounts, use free services to roll them over and save money, and focus on areas where money brings incremental happiness.
The importance of being mindful of hidden fees in old 401k accounts and taking action to minimize them. The speaker shared her personal experience of discovering excessive fees on a small 401k balance and how she was able to use CapitalEyes, a free service, to roll it over and save money. Additionally, the speaker emphasized the value of identifying areas in life where money can bring incremental happiness and not being overly frugal with newfound financial freedom. This lesson was a significant shift for her after finally earning a six-figure income in 2021.
Balancing Finances and Pleasures: Allow occasional splurges without guilt, acknowledge lifestyle creep, and be intentional when adding new expenses to your budget, considering long-term commitment.
Maintaining a mindful approach to personal finance is crucial, but it's also essential to allow for occasional splurges without feeling guilty. The first lesson learned was the importance of not overthinking small expenses that have a significant impact on one's mood and overall well-being. The second lesson was acknowledging the reality of lifestyle creep and being intentional when adding new expenses to one's budget. This means understanding that it's challenging to downsize once you've upsized, and it's essential to consider if these additions are worth the long-term commitment. An example of this was moving to a more expensive home, which initially caused self-doubt but ultimately improved the quality of life, making it difficult to imagine returning to a smaller living space. In summary, striking a balance between being financially responsible and enjoying life's pleasures is essential for long-term financial independence.
Impact of Housing Expenses on Budget and Lifestyle: Following passions and interests can lead to unexpected expenses, but trusting the process and setting boundaries can help manage budgets and prevent lifestyle creep.
Housing expenses can significantly impact a budget and lead to lifestyle creep if not managed carefully. While it's important to find joy in spending, it's equally essential to set boundaries and recognize the potential consequences of added expenses. The first-hand experience of the speaker this year revealed that money seems to flow more easily when we follow our passions and interests, even if the end goal is not clearly defined yet. This discovery highlights the importance of leaning into curiosity and trusting the process, even when the path ahead is uncertain.
Find alignment with talents and interests for easier success: Trust that being in alignment with your talents and interests leads to easier success and greater earning potential
Being in alignment with your talents, interests, and innate gifts can make the path to success feel easier and more enjoyable, even if it doesn't always seem like you're working as hard. This was a revelation for the speaker, who had spent much of her career feeling like she had to hustle and struggle for every incremental gain. But when she started putting her energy into things that came naturally to her, the results came easily and the income followed. This realization was a difficult one to accept at first, as she had been so accustomed to the idea that success only comes after hard work and sacrifice. But as she reflected on her experiences, she came to understand that being in alignment is not the same as not putting in effort. Instead, it's the difference between feeling pulled forward by your passions and interests, versus pushing a boulder up a hill. The speaker's advice for 2022 is to trust that when you're in alignment, things will feel easier and more rewarding, and to lean into that rather than trying to force yourself to struggle through things that don't come naturally. This mindset shift can lead to great results and help you unlock your earning potential.
Exploring new areas for alignment between work and personal interests: Trust your instincts, reflect on your puzzle pieces, and take steps towards what resonates with you, even if it means taking risks and facing uncertainty, for increased motivation and potential financial success.
Discovering your true calling and finding alignment between your work and personal interests may require trial and error, but it's a worthwhile pursuit. The speaker shares her personal experience of feeling unfulfilled in her job despite enjoying it, and the sense of an untapped potential driving her to explore new areas. She encourages listeners to trust their instincts, reflect on their puzzle pieces, and take steps towards what resonates with them, even if it means taking risks and facing uncertainty. The speaker also emphasizes that finding alignment between your skills, talents, and interests can lead to increased motivation and financial success. While the lessons shared were more focused on the big picture, it's essential to remember that small, tactical steps can also contribute to achieving your goals.
Reflect on Financial Insights from 2021: Reflect on financial lessons learned in 2021, carry them into 2022. Beginners: creating a budget. Others: importance of saving for emergencies, investing in stocks. Share thoughts at katie.com for future episodes.
No matter where you are in your financial journey, reflecting on the lessons learned this year can help you grow in the next. For beginners, creating a budget could have been a game-changer. For others, it might have been discovering the importance of saving for emergencies or investing in stocks. Regardless, these lessons should not be forgotten. As we wrap up season 1 of this podcast, I encourage you to think about what financial insights you gained this year and carry them into 2022. Email katiedmoneywithkatie.com to share your thoughts and ideas for future episodes. This season marked 12 episodes, a significant achievement for a podcast started on a whim. Stay tuned for more financial discussions in season 2. Your input is valued, so don't hesitate to share your thoughts.
