financial literacy Archives

Hey, teacher – leave those kids alone. Or at the very least, maybe teach them something that will be useful in the real world? Financial hacks to keep them out of a lifetime of living paycheck to paycheck and debt might be a good place to start.

stat about financial literacy in America - financial hacks — Source: National Financial Educators Council

One thing an overwhelming amount of Americans agree on is that financial literacy should be taught in schools.

A hard majority – 85% according to a recent study by National Financial Educators Council – think so.

Surprisingly, despite this widespread agreement, personal finance coursework is only required in less than half of states.

It’s puzzling, isn’t it? You would think that budgeting, understanding the true costs of loans and interest rates, and real wealth-building strategies might generate more productive, law-abiding, tax-paying members of society. And that’s the goal…isn’t it?

Whatever the backstory on that mystery, the bottom line is that many of us were never properly taught how capital works. To cover some of that lost ground, we’re sharing some financial hacks that can help you get off the paycheck-to-paycheck treadmill.

So if you want to do your homework on real-world financial hacks, this in-depth lesson will get you in the right mindset.

But for those of you just looking for the cliff notes, here’s a 1-minute video featuring HappyNest CEO and founder Jesse Prince giving you the TL;DR.

Financial hack 1: Pay yourself first

You put in the work, you should get the reward. Everything else is secondary – period.

One of the most common mistakes people make when they get their paycheck is getting squared up on bills, rent, loans, etc. first. They then try to get to their next paycheck on whatever’s left over.

Sure, it seems like the responsible thing to do. But with this approach, the check that takes two weeks (or whatever payout cycle you’re on) to earn is spent within hours of hitting your bank account. By the time the next paycheck rolls around, it can’t come soon enough. The goal of saving and investing gets put off once more.

Not anymore. From now on, the first line item on your paycheck to-do list is paying yourself. This is the single most important wealth building financial hack.

Your nest egg is now priority number one. If your goal is to save $250 per paycheck, then the first withdrawal from your paycheck should be $250 for your nest egg.

Feeding two birds with one scone: This nest egg account should have some safeguards in place to prevent you from tapping it too easily. For example, a savings account is not an ideal nest. Not only because saving account interest rates are a joke and inflation is eroding the purchasing power of your money while in one, but also because it’s just a little too easy to dip into.

Keeping it in stocks, bonds, REITs, or other alternative investments makes them less liquid. Having to process a transaction and wait for the transfer builds in some natural friction to curtail dip slips. (Hey, it happens to the best of us).

Financial hack 2: Automate your nest building with robo investing

In fact, paying yourself first is so important, you may want to take some extra precautions to eliminate room for human error. Enter: Robo deductions. What a time to be alive.

If your bills are set up on auto-draft, no reason why your nest building shouldn’t be, too. Set up a monthly automatic deduction that goes straight into your net worth.

If the insurance company and your landlord get their cut of your paycheck, your long-term portfolio value deserves an auto-draft too.

HappyNest offers monthly deductions from your funding account and redirects the funds into your investment account.

Financial hack 3: Cut the zombie subscriptions and redirect funds into your nest egg

Ever get notices that a magazine subscription you’ve been meaning to cancel for 10 months just renewed? Or that a video editing app you downloaded one time to cut out that would-be career-ruining contraband that rendered an otherwise hilarious video unpostable over a year ago and never bothered to cancel?

As life itself moves to an increasingly subscription-based model, be sure to do a scrub of memberships and auto-renewals. These sneaky expenses can really pile up over time. All those those “try it for free” sign-up forms or free trails are fully counting on you to forget about them where they can quietly drain your portfolio undetected. Too much weight makes the boat go slow.

To implement this financial hack, review your bank and centralized payment accounts such as PayPal or ApplyPay. These central payment stations offer the best birds’-eye view of auto nest killers.

Better yet, cut a few dead-weight subscriptions and tally the total monthly savings. Then, redirect that draft amount into an investment account for nest building. This action has a net impact of zero on your day-to-day spending.

Be sure to check in on your subs at least twice a year. Take the time to comb through for annual renewals too – those sneaky scoundrels will creep up out of no where with a hefty draft that leaves you feeling violated.

Beat them to the punch.

Financial hack 4: Sleep on it before you buy it

The internet is a fluid place, and one thing can rapidly lead to another. Next thing you know, your out a few hundred bucks on some impulse buys that sounded life-changing at the time but just lead to more clutter in your pad.

It can be hard to fight the “you deserve it” devil on your shoulder on a late-night treat yourself. The truth is, you do deserve it, and heaven knows we all need a little self-love and care. We all do it – there’s no judgment here.

The best tool in your financial hacks toolbox for separating the quality “treat yoselfs” from the empty depths of mindless consumerism is to sleep on it.

If you really do deserve it – and you probably do – you’ll still deserve it in the morning.

All the glory, none of the guilt.

Financial hack 5: Get your children’s financial beaks wet early

Can you imagine how much money you would have saved if you had been properly taught about managing finances? You know, the things you learned the hard way – whether that means cleaning up a bad credit score, climbing your way out of student debt (not terribly unlike climbing out of the pit in Buffalo Bill’s basement), or even the helpful things you learned on your own time via late-night YouTube binges of Rich Dad, Poor Dad videos? You can give your kids a head start by teaching them what you learned in the school of hard knocks.

Before they swan dive into the real world, give them some floaties. But if you just can’t get around to it, maybe the collections agent will be interested to hear about the Alamo, which was, of course, covered extensively in the classroom.

Spare your kids the same fate.

Feeding two birds with one scone: Because we all know someone’s got to pay their way for the first round of the world slapping them up with late fees and the joys of collection accounts. Odds are, as their parents, you’ll have to bail them out of at least one or two of these financial boobie traps. That makes investing in your child’s financial literacy early on a win-win for both of your nest eggs.

Building up your financial literacy is a years-long journey. These five financial hacks are good starting points to get the ball rolling.

My name is Jesse Prince, and this is my financial journey.

I often think about the series of events that led me where I am today.

A vibrant childhood (I am the third of four boys), years of playing team sports, a 6-year-long military career – all formative experiences of being part of something bigger than myself.

It might sound cliché, but bear with me. I think many of you reading this will be able to relate.

The Prince Family principles

You see, growing up, my parents impressed two things upon us:

Never live outside of your means, and
Do good things.

When the time came for me to fly the nest, so to speak, I enrolled in the United States Military Academy at West Point, in accordance with these principles. (Go Army!)

Head shot of HappyNest Founder and CEO, Jesse Prince — Me in my Army days

By serving my country, I could sidestep burdening my family (or my future self, for that matter) with the crushing student debt that burdens so many young Americans today. It was a win-win.

After six years of active duty – including two tours in Iraq – my worldview had fundamentally shifted, to say the least.

Perhaps the biggest challenge of assimilating back into civilian life was that what had once satisfied my desire to “do good” just wasn’t cutting it anymore.

Frankly, I had to do something bigger. Something great. I wanted to have a meaningful impact.

But how?

Lost in combat

Three things serving in the military will give you: Thick skin, lasting life skills, and a deep love for learning.

That, and a paycheck every first and fifteenth of the month.

What the military doesn’t give you are the skills needed to manage that paycheck effectively. As far as I can tell, schools aren’t acing the subject either.

Growing wealth, saving for retirement, building rainy day funds – these might not be the skills you need to survive combat. But you sure as hell need them for a fighting chance at the American Dream.

When my time in the service was over, I found myself in a position I never thought I’d be in – aimless, unemployed, and defeated.

Overnight, I went from a Captain in the Army with command over 120 soldiers, to reading rejection letters from employers due to “lack of work experience” in my parents’ basement where I was living.

The transition was jarring and brutal.

I had neither income nor resources. The only thing lower than my self esteem at the time was my bank account balance. It was humbling. It was terrifying.

A lot of grit and a little luck

Fast forward a few months (and a handful of rejection letters).

There I was, standing in my parents’ kitchen (staring into my mother’s freshly packed refrigerator, oddly enough), when it struck me: “Speak the language of your profession.”

Of course. Classic Occam’s razor: The simplest answer is usually the best one. And as expected, something I had learned in the service would indeed guide my life outside of it.

I started with a list of all the things I find joy in. I’ve always had a natural interest in real estate – it seemed like now was as good a time as any to explore that further.

Step one, of course, would be to learn the language of the real estate industry. I was essentially starting my career anew. There was going to be a learning curve.

I didn’t just want to learn it – I wanted to master it.

I enrolled into graduate school with a Real Estate Finance degree fixed in my crosshairs.

At the same time, I looked for employment in the industry. Every soldier knows you never truly master your craft until you’ve had real combat experience. After what felt like a lifetime in the reserves, I was more than eager to get my boots on the ground.

Luckily, I stumbled upon a handful of amazing people who helped me do just that.

Building the nest

I’d always known real estate investing was an incredible way to build wealth. However, like most Americans, I didn’t exactly have mountains of cash at the ready to drop on investment properties.

So I turned where many of us do when we need answers to life’s pressing questions: Google.

A quick search for how to invest in commercial real estate without having to front large sums of money for a downpayment only brought up a GIF with a menacing Jack-in-the-box popping out holding a sign that said “better luck next time.”

Okay, okay…that didn’t really happen.

But it may as well have, because all I found were real estate investing platforms with high minimum investment requirements ($1,000 or more) and confusing, technical language.

Without access to wealth building investment opportunities, how could everyday people build their financial future?

I thought to myself, “If I, as a professional, am turned off by these platforms, I can only imagine what others are feeling.”

And then it hit me. I could satisfy my “do-something-great” drive by helping others live within their means while building wealth.

In other words, I could feed two birds with one scone. That’s how HappyNest was born.

My vision was to create a place where everyone – regardless of the financial hand they’re playing – can access an opportunity to build their wealth and improve their financial literacy.

HappyNest takes flight

I gathered the information and resources needed to help HappyNest take flight.

My first order of business was lowering the barrier of entry. A thousand dollars is a lot of money for most people – prohibitive even. It certainly was for me at one time.

Real estate was an investment asset class once reserved for the wealthy. We may not serve caviar or champagne here, but $10 will get you a seat at the table.

I made $10 the entry point because, at one point in my life, that’s all I had in my bank account. I like to think that if I could afford it on my worst day, others could also buy into the chance to change their financial futures.

My path hasn’t been the easiest, but I’m confident that I am not alone. I hope HappyNest can help you achieve whatever goals you may have.

And that is my most important mission to date.

Thank you for taking the time to read my story.

My name is Jesse Prince, and that is my financial journey.

Tag: financial literacy

5 financial hacks we wish they taught us in school