What should we do with money from our side gig?

Many of us have side gigs or extra income outside of our day jobs. While the extra money is nice, is there something “smart” we should be doing with it? Here are 4 options:  

Choice 1: Pay off Debt  

Whether it’s student loans, a car loan, or credit cards, one of the first things you should consider doing with any extra income, is paying down any debt or loans you have. As someone who is going for public service loan forgiveness (PSLF), paying off my student loans is not a priority for me, right now. With PSLF, my payments are currently capped at 10% of my discretionary income. After 10 years of these low payments, the government will “forgive” any debt I still have left, tax-free. This is a pretty sweet deal, so I have little incentive to pay more money towards this debt than I have to.  If you aren’t going for PSLF, then your strategy may be vastly different. Perhaps you’d want to consider refinancing your student loans at a lower interest rate and paying them off as quickly as possible. If that’s the case, then using money from your side gig to pay off your student loans faster might be a good option.

For those who don’t have any student loan debt or have already paid theirs off, you could use the money from your side gig to pay off any other debts, especially anything with an interest rate higher than 8%. For example, if you have credit card debt or a car loan, using the money from your side gig to get rid of these debts quicker may not only save you money in interest over time but it will also leave more money in your pocket each month as you begin to get rid of that debt and no longer have those payments as one of your monthly bills.

Choice 2: Save It.

As a first-year physician, saving money is a major priority for me. Unlike many other graduate school programs, it was virtually impossible to work a job in medical school. The inability to work, precluded me from making money which meant I couldn’t save money. As a result, my emergency fund was non-existent and I didn’t have all the funds I needed to move to a new city, make necessary travel plans for various events, or even schedule the celebratory vacation I needed before starting one of the most demanding jobs in the country. After going through that experience, I never want to be in that position again.

If you haven’t been able to save a good chunk of money from your main job, perhaps you should use the extra money from your side gig. You should not only consider saving money for emergencies but also factor in saving money for future vacations, Christmas gifts, car maintenance or any other large purchases. They key is save the money in a high-yield savings account or money market account which will allow you gain a interest on your money in a way that is risk-free while still giving you the freedom to pull money out of the account easily whenever you need it.

Choice 3: Spend It

As a resident physician who can sometimes work up to 80 hours a week without any extra over-time pay, work can be a bit exhausting. Sometimes being able to purchase something I really want, have monthly self-care days that include a massage and trip to the spa, or going on an international vacation to one of the places on my bucket list can be just the refresher I need. While I’m all about financial independence and having enough money to create a life you don’t need to vacation from, career longevity is vitally important, at least at this stage in my life. Sometimes the best thing we can do to maintain career longevity is to take necessary breaks and occasionally treat ourselves to some of the things we really love and enjoy. We all need balance in our lives, especially in terms of work vs play or work and relaxation.

Choice 4: Invest It

As I’ve stacked up a decent emergency fund and paid off all of my credit card debt, one of the things I’ve been contemplating more and more is how to invest the money from my side gig. While I don’t like the risk associated with buying individual stocks, I’m a huge fan of index mutual funds and have always liked real estate, so when it comes to investing side income I  have a few options:

-Put the money into a retirement account (such as Roth IRA or increase the percentage I contribute to the 401K I have at my job)

-Open a taxable brokerage account (so I can make different types of investments in a way that isn’t tied to my retirement so that I can more easily pull the money out if I need it)

-Invest in real estate (either through rental properties, apartment syndications with other investors, or a variety of other options).

My point? I’ve listed many options of things you can do with income from your side gig. However, the right choice may be different for each person. If you don’t have a decent emergency fund, perhaps you should start by saving your side income. If you have some high-interest debt from credit cards or a car loan, eliminating that might be your second option. If you’re nearly debt-free and already have money saved for emergencies and other large expenses, consider investing your side gig money into retirement accounts, taxable accounts, or real estate.

Want a Side Hustle? Try these ideas

Of note, this blog was initially written and published on Doximity Op-Med and can be found here.

It’s 2020 and many of us are more motivated than ever. We want to get fit, eat healthier, and continue to survive residency. While these are noteworthy goals, consider one more thing: making money doing something you love…outside of medicine. Aka, start a side hustle. If you’re unsure of where to start, here are a few side gigs to pursue as a resident: 

Start a Blog

For those who love to write, consider starting a blog. Doing so has relatively low startup costs, if anything at all. Once you get a unique website domain, you can use a pre-formed template via platforms like Wordpress or SquareSpace to create a website or blog for little to no money. Although it can be daunting initially, starting a blog will allow you to create a platform and accumulate a following through which you can express yourself. I was very nervous when I started my own blog Career Money Moves, but I’m so glad I did. Doing so allowed me to garner a unique list of email subscribers that I can market to directly and communicate with on a regular basis. Plus, I eventually got approached by sponsors who offered to pay me for advertisements, allowing me to make money doing something I enjoyed. 

Launch a Podcast

It’s 2020 and many people believe podcasting is the new blogging. There may be limited times where we are free enough or focused enough to read an entire book or blog post, but there are plenty of places where we can listen to a podcast. Since you can record episodes on the smartphone you already own, the startup costs are quite low. Why not launch one of your own? Doing so will allow you to curate an audience of people through which you can share your views on a growing platform. There’s no rule dictating how frequently you have to record. You can do it on your own time, whenever you have time. AND, you can talk about whatever you want, whether that’s your career, your hobbies, or your personal take on various issues and life events. 

Write a Book

If publishing blogs or recording podcasts on a regular basis sounds like too big of a commitment, why not consider an alternative: writing a book. Although this can seem impractical, it may not be as difficult as you think, especially if you break it up into sections and have a goal of writing one chapter a month. Some people have found it manageable to work on a book during their down time at work or late at night as they unwind from their day. Writing on a topic you enjoy will likely make the writing process even more enjoyable. If you’ve managed to find peace in your life despite many commitments, write about work-life balance. If you managed to stay sane while raising toddlers, write about parenting in medicine. If you’ve managed to successfully create a business, build a high net worth, practice medicine through locums, or do something unique in your specialty, write about that. Being able to author something you love and sell the finished product may result in an additional income and lead to other lucrative opportunities such as paid speaking engagements, television appearances, or exclusive business groups.

Leverage Business on Social Media

If writing isn’t your thing and launching a podcast seems like too much work, consider making money from social media. Many of us are on Instagram or Facebook for free already, so why not get paid to use these platforms? If you like making videos, consider starting a YouTube channel. If you love beauty and fashion, why not review products on Instagram? If you’re passionate about a particular industry or topic, consider setting up your own Facebook group to discuss various topics of interest. Either one of these ideas allows you to create a platform by which you can build a network of people. You can then leverage that network to attract companies or advertisers that will pay you money for access and influence. 

Start Consulting

A consultant is someone who charges a fee to provide advice or guidance in a particular area. While you may not consider yourself an “expert,” you certainly have life experiences and higher education in areas others do not. Why not leverage that knowledge in a way that brings you more income? As a doctor, you can tutor pre-med students taking the MCAT or charge to proofread personal statements. If you are good with technology or have studied computer science, create software programs or website templates for new business owners. If you work in sales, provide specialized marketing strategies for new authors and young entrepreneurs. 

Freelance Work in the Arts

I’m very analytical, but there are many people who are extremely creative. If you are one of those people, use your creativity to establish an additional revenue stream. Maybe you like to paint and can create art to sell at various shows and exhibits. If you like to cook, consider hosting cooking classes for young couples, selling recipes on various forums, or even making your own cookbook. If you love to take pictures, you could become the go-to photographer for your colleagues’ holiday functions, weddings, or family Christmas cards. If you love to do hair and makeup, you can lend your services to those of us who struggle with our hair or desire different looks for fancy events. 

Moral of the story? Find something you’re interested in and enjoy doing outside of medicine. Then figure out how to leverage that interest in a way that brings you money. Although many people could work overtime at their job to make more money, doing so may not be as enjoyable and may even cause them to burn out from their career unexpectedly. The great thing about establishing a side gig or lucrative hobby is that oftentimes it’s something we enjoy. When you are paid to do things you love and enjoy, the “work” is less stressful, you’re happier, and your pockets are fuller.

6 Life Quotes To Remember from Ego is the Enemy

Here are 6 of my favorite life quote from Ryan Holiday’s book Ego is the Enemy.

1. “It takes a special kind of humility to grasp that you know less, even as you know and grasp more and more.” As highly educated young professionals, we have a high level of intellect. Many of us are specialists at one thing or another and this expertise has allowed us to become quite successful. However, we must not let our education blind us to our shortcomings. In Ego is the Enemy, Holiday reminds us that as we continue to learn and progress, we should realize that there is even more knowledge to be gained and additional nuances to understand that we never knew existed. We must not get so “smart” that we think we know it all. Instead, we must remain humble and realize that there are still many things we don’t yet know and may need to learn.

2. “Your ability to listen, to hear feedback, to improve and grow matter more now than ever before.” Holiday goes on to plead with us to “learn from everyone and everything. At every stop and every juncture in life, there is the opportunity to learn—and even if the lesson is purely remedial, we must not let ego block us from hearing it again.” With these two quotes Holiday is letting us know that our quest for knowledge shouldn’t end when we graduate a program or reach a certain level of success. We must, instead, remain intellectually curious and humble enough to take feedback and be open to criticism. I’d even go so far as to say that we must create an environment that welcomes this sort of feedback. The higher we climb, the more people may be reluctant to be as honest or as critical as they once were. Ironically, it is this level of candidness that we need to keep evolving over time. We must be open to feedback and create a safe space for others to provide it. Then be committed to changing and becoming best versions of ourselves.

3. “Sit down and think about what’s truly important to you. Then take steps to forsake the rest. Without this, success will not be pleasurable or nearly as complete as it should be.” Holiday goes on to explain that this is crucial when it comes to money. If we don’t know how much we need, the default is easily “more” and without thinking critical energy is diverted from a person’s calling toward filling a bank account. In fact, Holiday goes on to warn that “Far too often, we look at other people and make their approval the standard we feel compelled to meet, and as a result, squander our very potential and purpose.” In other words, we become so obsessed with impressing other people that we began to seek an unhealthy amount of outside approval regarding our life partners, career choices, and other personal life decisions. Doing so may help us look good to others, but we may sacrifice our calling and purpose in the process.

4. “With success, particularly power, come some of the greatest and most dangerous delusions: entitlement, control, and paranoia. Entitlement says this is mine and my time is more valuable than yours. Control says It must be done my way. Paranoia says I can’t trust anyone.” Holiday later goes on to explain that when we erroneously think that our problems or situations are so vastly unique from others, we begin to think of ourselves more highly than we ought and become out of touch with the very people who helped us get to where we are. We mustn’t let power allow us to become entitled or seek control over everything. We must be humble enough to realize that while no one is infallible, the quality of our work and the strength of our relationships with others will help provide the sustainability we crave.

5. “Ego needs honors to feel validated. Confidence, on the other hand, is able to wait and focus on the task at hand regardless of external validation.” We can’t let our ego get so big that we become obsessed with validation, awards, and recognition from others. We must have confidence in our abilities but remain humble enough and committed enough to try our best whether people notice our efforts or not. Awards and honors are nice, but we can’t be so obsessed with them that we let their presence or lack thereof dictate what we will and won’t do. We have to do the work and remain committed to goal of excellence regardless. Holiday even goes a step further by telling us to “maintain our sobriety.” He’s not talking about abstinence from alcohol or drugs but rather separation from the addiction of creating the perfect image or thinking of ourselves more highly than we ought. We mustn’t treat people beneath or above us with contempt or be so demanding that we reject good opportunities or alienate people close to us. We have to instead remain sober and stay humble.

6. “If you want to live happy, live hidden” Holiday mentions this old adage to remind us that “most successful people are people we have never heard of.” What’s more glaring about this is that it’s not like these unknown people are upset about being hidden or secretly crave recognition. In fact, it’s the opposite. Many successful people prefer to be hidden from the public eye because it keeps them “sober.” it protects them from a developing an ego or dependence on external rewards and validation. It allows them to instead focus on their purpose and do their jobs skillfully without pride and entitlement. They live a life they desire with the people they love without allowing the need for external validation to ruin it.

Tell me, which quote of above resonates with you the most?

Nuggets of Wisdom as we advance in our careers:

As a doctor who loves to learn new things, I love a good non-fiction book, especially one that challenges me to become a better person in some unique way. Last year I had a goal to read least 1 book a month. One of the books I liked best was Ryan Holiday’s Ego is the Enemy. This international bestseller is quick read that broken down into 3 distinct parts and had a lot of life quotes for those of us trying to advance in our careers. Here are 5 key takeaways from the first section:

“To become great, we need someone better to learn from, someone lesser to teach, and someone equal to challenge ourselves against.” With this quote Holiday reminds us that we can’t become great by ourselves. Having just 1 other person may not be enough either. We actually need a few different types of people around us. We need someone from which we can learn from so that we can continue to advance and reach for higher goals. We need someone that we can teach or mentor since teaching not only ensures our own understanding of a topic, but it also solidifies the information in our minds. Lastly, we need to be challenged. While we may all aspire for more every now and then we need a constant challenge to keep us motivated in this pursuit.

“The art of taking feedback is a critical skill in life.” No one is perfect. Although we may be keenly aware of this fact, sometimes we can be oblivious to the parts of us that still need improvement. We may not know that something we’re doing is ineffective. We may not be aware that there are better ways to doing certain things. In order to correct these imperfections and continue to improve, we have to learn how to take feedback. Although many of us hope for the feedback that applauds our effort, we also need to prepare for the kind that highlights our weakness and calls attention to our flaws. Despite the delivery or the timing, the ability to take constructive feedback is a skill in life that will help us constantly improve and help us become better versions of ourselves.

“Clear a path for people before you and you will eventually create a path for yourself.” As aspirational young professionals we are are eager to progress in our careers. As we attempt to get promoted, it can be very easy to focus on ourselves and avoid work that doesn’t get us the recognition we may crave. With this quote, Holiday is warning us against this. He reminds us that working for other people and making them look good will eventually help us achieve success for ourselves. As we become helpful to more people, we establish a reputation as being valuable and an indispensable part of the team. It is these classifications, along with our track record of hard work, that virtually ensure our future success. If we can continue to help others, without alienating or threatening anyone along the way, we will get there even faster.

“Pride blunts the very instrument we need to own in order to succeed: our mind. Our ability to learn, to adapt, to be flexible, to build relationships all of this is blunted by pride.” With this quote, Holiday reminds us to keep our pride and our ego in check. While it’s okay to remain confident in our abilities, we must be careful not to let our ego make us “too good” to learn from others or unable to adapt to certain situations. As we continue to climb the ranks of success, we may develop a certain standard of efficiency that we prefer. Things that deviate from this ideal, whether it be people, situations, or experiences may bother us so much that it can makes us stubborn and cause us to think that a certain person, place, or situation is “beneath us.” It is this exact attitude that we are warned against. We must instead, always be willing to adapt.

“To get where we want isn’t about brilliance, it’s about continual effort.” In our quest to be great we many encounter times that push us to the limit. Perhaps we overworked, tired, or just not as motivated as before. It is during these times and with these feelings, Holiday reminds us to just keep going. The road to greatness is not about waking up each day with fresh ideas on how to take over the world. Sometimes, we just need to get out of bed and keep going. Success isn’t about being brilliant each day, it’s about showing continual effort each day. We have to get up, get to work, and do the necessary work day in and day out. As we keep going, we’ll keep progressing and eventually we will have reached our goal of success.

Tell me, what do you think of these quotes? Did one of them resonate with you more than the others?

5 Steps To Take As You Get Started in Real Estate

1. Determine your niche or area of interest. When it comes to real estate investing there are many different types. Some people choose to buy old homes, renovate them, then resell them at a higher price. Others choose to purchase single family homes and rent them out to tenants for years. While a few others may choose to pool their money together and invest in an apartment building over a certain length of time. Whether it’s one of these 3 methods or another one, the first step to take before you actually invest in real estate is to determine which area of real estate investing would be best for you.

2. Educate yourself on the struggles and achievements of people in that industry. Once you pick a type of real estate investment to focus on, your next step is to educate yourself on the pros and cons of people in that industry. Learn about common mistakes to avoid and hurdles you may have to overcome. If you’re going to invest money into a deal you want to know as much as you can about it and be prepared for the good and bad that may occur. It’s hard to adequately fix an issue you didn’t expect or prepare for, so be proactive. Listen to podcasts, read books, skim blogs, and network with people who have experience in that area so that you can learn from their experiences and increase your chance of success when you start making your own investments.

3. Determine your goals and criteria. Despite our best intentions, not every deal within your target real estate niche will be good investment for you. In order to determine which deals you should invest in and which ones you should pass up, you need some objective investment criteria. For example, some people who focus on single family homes decide to only purchase houses in cities that are close to where they currently live so that managing tenants is a bit easier. Other people who focus on multifamily properties choose to only focus on apartments that are in a certain condition or have a minimum amount of units. Yet and still, other people may be open to different kinds of deals but choose to only invest with certain established investors. Whichever investment criteria you choose make sure you have good evaluation standards as well. Ie. You will only invest if the cap rate is “X” percent or if you have “Y” amount of dollars in cash flow or have an internal rate of return of “Z” or more on your money.  Do some research and determine you investment and evaluation criteria.

4. Write down how you’ll gather money for this investment. Just like it’s important to pick your niche and evaluate the investment correctly, it’s also imperative that you know where you’re going to get the money. Do you have enough saved on your own or will you need to pay the seller in money installments via seller financing? Do you plan to get a mortgage from the bank and pay back the loan over many years or do you plan to use private funds that require repayment much sooner? Do you have friends and family who can help you out or do you have some loan you plan to take out from something else you’ve purchased? There are plenty of options, but you need to at least think about which ones may make sense for you depending on the type of investment you want to make and the appropriate amount of risk you plan to take.

5. Start identifying potential deals and practice analyzing them. Lastly, you need to practice evaluating deals. No one wants to invest a ton of money then lose it all in a bad deal. Practice picking out good deals and evaluating smart investments with people who are more experienced. Ask questions about what made a deal good or bad so you can learn how to more efficiently evaluate deals on your own and reduce that chance that you’ll lose money in an investment. This practice will also make you a little less nervous when you finally do invest money for the first time.  

What do you think? Are you going to take these steps as you get started in real estate?

4 Things To Do Before You Start Investing In Real Estate

1. Read books to learn the basics. Real estate is a HUGE industry. Not only does it encompass a variety of different niches, but it also includes a myriad of jobs, investment roles, and moving parts. Although the industry itself can be lucrative for many people, it can also be a source of disdain and loss for others. In order to ensure that real estate is the right industry for you (and increase your chances of actually making money instead of losing it), it’s essential that you educate yourself. Learn about the different forms of real estate investing. Study the pros and cons of each type and determine which one would be best for you. If you’d like a more comprehensive guide, you can always check out podcasts and webinars on Bigger Pockets or read books like the ABCs of Real Estate Investing.

2. Start networking to meet people in the industry. Once you’ve become educated on the different types of real estate investments, you should start meeting people. Although you may be very skilled and successful in your own right, real estate is a team sport. As you start to network with others, you’ll learn from their mistakes and achievements which will help you gain more experience. As you continue to interact with people in various settings you’ll gain access lucrative deals and other investments as well. When I started going to real estate meetup groups, I learned about other areas of real estate that I never even considered and got invited to invest into deals I wouldn’t have otherwise known about. Plus, I started to meet people with different skillsets and now have a list of people I can call on for a variety of homes to purchase or sell. I can also find contractors, maintenance men, or interior decorators quicker. In other words, real estate investing is much easier because I’ve met so many different people and groups that have helped increase my chance of success.

3. Listen to podcasts to stay up to date. One of the things that has really helped me over the last few years is podcasts. Although I prefer to learn new information from books and blogs, podcasts are essential for me as well. They reinforce information I may have learned and forgotten from awhile back. They also provide new perspectives on topics and deals that I may not have considered myself. Plus, they help me stay up to date on current information and interview other successful investors which helps me learn from the experiences of others. For example, it was through a podcast that I gained some insight on different ways to invest in real estate without actually getting a mortgage from the bank. It was through podcasts that I learned how other people started investing in single family homes and were then able to scale up to apartment buildings. It was also via podcasts that I learned which type of investments would take more or less of my time and which ones provided more profit in tax-free ways.

4. Join communities to meet other like-minded people. Along with networking with others, reading books, and listening to podcasts, you must do one more thing: surround yourself with like-minded people. It can be very easy to make a goal, but oftentimes it can be difficult to consistently do the work needed to bring those goals into fruition. One of the things that have helped me is joining communities of like-minded people. Whether that’s going to real estate meet up groups or becoming active in online forums, surrounding myself with people who have similar goals and interacting with them consistently has helped create accountability in my life to keep me focused and committed. These communities have also served as a place of inspiration and encouragement to keep me on track. In fact, I’ve had several people that have been gracious enough to hear various ideas of mine and offer their feedback and guidance on what I could do to bring it into fruition, they’ve even connected me to other experts in the field.

My point? If you’re thinking about investing in real estate, it’s essential that you read books to learn the basics, start networking with people in the industry, listen to podcasts to stay up to date and join communities of like-minded people.

4 Reasons you should start a side hustle

As young professionals we have a lot on our plate. We work crazy hours under high-stress conditions with limited time off. Although getting better at our jobs and making time for our families can be a feat in and of itself, I challenge you to consider 1 more thing this year: start a side hustle.

Starting a side hustle allows you to:

1. Explore one of your interests which may add balance to your life.  Outside of our careers, many of us have hobbies we enjoy and other skills we are good at. Instead of keeping these interests a secret or putting them on the back burner, why not explore them even more? Many of us know people who were working full time in their career, but launched a successful podcast on the side or started a coaching business. Perhaps some of our colleagues also work as weekend photographers or hair stylists in their free time. Some of the people we knew in college may have even dabbled in real estate, become public speakers, or authored a book. You can do something like that too. Whatever it is you choose, these additional things, outside of our careers, allow us to explore other interests and may add more balance to our lives.

2. Relieve stress and prevent burnout. As our careers become even more demanding and the work hours pile up, we can find ourselves feeling over-burdened. Although no job is completely void of stress, there are things we could do to decrease the stress we feel or at least lower its impact on our overall health. Oftentimes exploring our other interests, whether its art, photography, music, writing, speaking, or even exercising allows us to gain a new skill or explore a hobby that can decrease the stress we feel at our job.  

3. Standout from other young professionals and make yourself more marketable. As we enter this new decade in the age of social media and internet marketing, good branding is essential. While being competent at your day job is important, having multiple skills and things that you do well can help differentiate you from others. As you begin to stand out, you will likely garner more interest from other clients and patients which can lead to even more opportunities and higher levels of influence in both your main career and your side hustles.

4. Add additional revenue stream(s). One of the best things about exploring other hobbies and become skilled in multiple areas is that it could put extra money in your pocket. With the proper marketing, these skills and hobbies can open up additional doors for us and lead to lucrative opportunities and sponsorships that could be a reliable second or third source of income. Although your day job may pay you well, creating an additional revenue stream from a hobby or task you enjoy can increase your monthly income and make you less reliant on your day job. Plus, getting paid to do something you enjoy, and are good at, can make you even happier and increase your overall life satisfaction.

My point? Although our jobs are noble and can be rewarding in and of themselves, consider branching out a little. Think of other hobbies you enjoy or skills you possess and explore them even more. Doing so might add more enjoyment to your life and prevent you from burning out in your career. It could also help you stand out from others and may even lead to bigger and more lucrative opportunities in the future.

Tell me, would you consider pursuing a side hustle in 2020?

6 Step Money Challenge for 2020

As we embark upon this new decade, many of us are committed improving our finances. We may have vowed to stick to a budget or have a general goal to live below our means. While these are noble goals, let’s challenge ourselves to do even more. Here’s my 6 step-money challenge for 2020:  

1. Buy 1 or 2 finance books to read. There are many different ways to consume information but I’m a firm believer in the benefit of books. While I enjoy blogs, books can be a one-stop-shop for the information you seek. Having books allows us to highlight certain passages and tips that make the material a consistent resource we can refer to throughout our journeys. Plus, it provides a single resource we can use to learn about a several different topics or go in depth on one particular area. There are plenty of good finance books but I think the white coat investor has a list of recommendations organized by various categories that can be useful. When I started on my personal finance journey my favorite books were Rich Dad Poor Dad, the White Coat Investor, and the Total Money Makeover. I’ve just purchased How to Think about Money and tend to refer to Ken McElroy’s The ABCs of Real Estate Investing as I’m thinking over new real estate deals. There’s always more to learn and books are a great way to do that. Pick a couple finance books to read this year.

2. Download a finance podcast. As someone who is intellectually curious and loves to be efficient during my “off” time, I consume a lot of finance information via podcast. Whether it’s the “Hippocratic Hustle” giving me insight into ways other female docs have increased their income, “Docs Outside the Box” giving me new ideas on ways to create additional revenue streams, or the “White Coat Investor” providing step-by-step instructions on how to do a backdoor Roth IRA, podcasts can be a great way to learn about various finance topics without requiring a huge sacrifice of your time. Most episodes are 30-45min or faster if you alter the playback speed. Whether you’re commuting to work, cooking dinner, or working out at the gym, there are plenty of good podcast options. As you continue along your journey of increased financial literacy, download a finance podcast and commit to listening to 1-2 episodes a week.

3.  Join an in-person or online group. Along with increasing your knowledge via books and podcasts, strive to be more active as well. Whether it’s participating in a finance-focused Facebook group, joining the Bogleheads F.I.R.E. (financial independence retire early) online community, or going to real estate investor meetup groups in your city, surrounding yourself with likeminded people can be beneficial. In fact, it’s this active engagement that can propel us even further along in our journey. These groups and online communities challenge us to share our goals with others and inundate us with people traveling a similar path. They also provide a slew of contacts that can keep us motivated and accountable. As you continue along your journey, commit to joining at least one finance or investor group.

4. Create a spending plan for the next month. There couldn’t be a money challenge without a point on living below your means. While many of us would like to increase our savings and invest more, this can be quite challenging to uphold. Sustainable change involves altering our behaviors and putting boundaries in place that keep us focused on our goals. One of the best ways to do this is by creating a spending plan for the next pay period. While most of us know where large chunks of our money are spent, there still may be things that go unnoticed. The challenge for this year is to create an active spending plan that outlines which things we will purchase, and which bills will be paid on certain dates. It also includes automating our payments so that a percentage of our income automatically goes to various savings accounts or investment funds. If you haven’t already done so, create a spending plan that automates payments and “forces” you to live below your means.

5. Pay off “bad debt” early. I’m a huge proponent of paying off consumer debt, especially when the interest rate is higher than 7%. Many of us understand the importance of getting the match to our retirement plans, but once that’s done, we are unsure on what to do next. The correct answer may vary from person to person but generally speaking, once you have at least a small amount of cash for emergencies, you should prioritize paying off consumer debt like high-interest credit cards or car loans. Although investing in the stock market is another great option, the guaranteed return from paying off debt cannot go unnoticed. Plus, paying off consumer debt faster will increase our monthly cash flow and allow us to invest even more towards retirement once the debt is paid off.

6. Give more to charity. Although we each have different priorities and plans for our money, one of the things I challenge you to do this year is think outside of yourself and give more. Even though it can be tempting to delay helping others until we have met all of our own individual goals, I challenge you to find ways to give in the midst of this journey. Oftentimes, we find the most happiness when we find ways to assist others. Giving has helped me stay grounded in the midst of success and allowed me to help others in a way that has increased my own quality of life in ways I never imagined. In 2020, I challenge you to find ways to give more. Doing so may impact your own life more than you may realize.

Tell me, what are some ways you will challenge yourself to improve your finances this year?