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Money Myth Monday – Cash Is King?

I lolled. Seriously? Now I will say there is one caveat to this. Cash can be king, but cash is not always king.

Why Cash Is Not Always King

Let me explain. Here is why cash is not always king. Put cash in your low yield savings account or better yet put it under your mattress and guess what happens? It will sit there and do nothing for you. It will be finite. It will not grow to produce more cash for you. At some point of spending, it will all be gone. It is the single worst thing you can do with your money. The second worst thing you could do would be to dig a hole and put it in the backyard!

Why Cash Can Be King

Now here is the caveat. Cash can be king. Why? Having a strong cash position can set you up in a good spot to invest in cash producing assets. If done right, your cash will multiply into more and more fruitful cash producing assets. Welcome to the idea of planting money trees and letting them sprout to fruitful income producing assets.

This is a powerful concept that is critical for you to understand. Cash is only king while in a liquid account until you identify another asset to buy. There are a few different ways to keep your capital liquid. I will speak to what I am currently doing, but there are many other ways to do this. Do your research to determine what will work best for you.

Option 1 – Liquid Index Fund Investing

Before detailing this one out, I want to point out this has high depending on market conditions. If you want to have liquid assets, index funds are definitely an option. The risk of having your “cash” reserves in an index fund will follow the market volatility. This could be a good or bad thing for you. If the market goes up, your money will grow and you will have more liquid capital to pull out. If the market goes down, your money will decrease and you will have less capital to invest.

Another thing to consider are the tax implications. Having your liquid assets in Index Funds could create unintended capital gains/losses. I have an article detailing out how I did some tax loss harvesting last year. Again, do your research on this before going down this path. High level, if the market went down and you sold some of your index funds, you would be able to write off losses. There are certain restrictions around it, but that is the high level gist. If the market went up, you would have to harvest gains when selling. Speak with a CPA if you want to get professional advice as I am not a CPA.

Option 2 – High Yield Savings Account

If you want to hold a true cash position, ensure it is in a High Yield Savings Account (HYSA). Don’t let it sit in an account earning you .03%. Don’t know what your account is earning, call your bank. A lot of the banks who have very bad rates will make it difficult for you to find out what rate you are earning. I made that mistake for five years, please don’t make it yourself. I have an entire article dedicated to this subject. I was able to increase the interest I was earning by 183x by making a simple switch. It took less than 10 minutes. Click the link here to read the full thing.

After some further explanation, what are your thoughts on how you view cash? Do you feel it is king?

Key Takeaways:

  • Cash can be king. Cash can not be king as well. It all depends on how you are planning to use it.
  • If you are sitting on literal cash, make sure it is in a High Yield Savings Account. I increased what I was earning by 183x by making a simple switch. Do your research on the different HYSA’s out there before switching.
  • Always have a plan for your liquid assets if your goals are to create horizontal income streams.
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90 Day Challenge – No Drinking!

I am ready to challenge myself! Do something that will be difficult. I am sure my friends and family will think I am crazy, but that is fine by me 🤗

My 90 Day Challenge:

I am committing to no drinking for 90 days!

Now the truth is I actually started this challenge on June 22nd (today is July 28th). I let my accountability partner know about this challenge and have stuck in strong up to this point. For some reason I decided the hardest time to take on this challenge. To this point I have had to pass up drinking at: ⠀⠀⠀⠀⠀⠀⠀⠀⠀

  1. An open bar event with Senior Vice President and Vice Presidents from my company⠀⠀⠀⠀⠀⠀⠀⠀⠀
  2. My 27th birthday⠀⠀⠀⠀⠀⠀⠀⠀⠀
  3. July 4th celebrations ⠀⠀⠀⠀⠀⠀⠀⠀⠀
  4. An open bar at a best friends wedding⠀⠀⠀⠀⠀⠀⠀⠀⠀
  5. Every flight I have made for work that has had free alcohol⠀⠀⠀⠀⠀⠀⠀⠀⠀
  6. Celebrating a friends 40th birthday⠀⠀⠀⠀⠀⠀⠀⠀⠀ ⠀⠀⠀⠀⠀⠀⠀

I am working harder to push myself to do things most wouldn’t. My family all thinks I am crazy for even attempting. I don’t mind others opinions and thoughts on the subject though. I will continue pushing myself to do things others think is crazy. ⠀⠀⠀⠀


Benefits I Have Already Seen⠀⠀⠀⠀⠀⠀

Something that has been interesting has been the benefits I have seen from this.

  1. Save so much money! Not sure why I didn’t think about this, but a large chunk of my Entertainment spend has been alcohol. Will see how my monthly spending reduces with cutting alcohol out.
  2. Don’t have to worry about hangovers. It is tough to be hungover when you don’t drink anything! ⠀⠀⠀⠀⠀⠀⠀⠀
  3. Can be the designated driver for the party! Now my friends and family don’t have to worry about paying for an Uber if we go out. Benefit for them I guess haha⠀⠀⠀⠀⠀⠀
  4. My body generally feeling better. The elimination of alcohol has made my body feel much better! I am also working to cut processed foods from my diet. ⠀⠀⠀⠀⠀⠀⠀⠀ ⠀

All in all, I am excited to see this 90 day challenge through! The 90th day will be September 20th. Time to get it and continue strong!

Key Takeaways:

  • Challenge yourself every day to do something difficult. Challenge yourself to do something that will make others think you are crazy.
  • Find yourself an accountability partner that you commit to. I reached out to someone to tell them what I planned to do. Having someone you commit a challenge to is important.
  • Cutting out alcohol can save you a significant amount of money. I would say most people in their 20’s spend a significant amount of money each month on alcohol. Last month I spent roughly $200 on alcohol.
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Transferring to Arkansas & Job Decision After College – About TheYoungRetireeBy33 Part V

A lot had happened in my life leading up to my junior year in college. I was ready to begin a new chapter in my life moving closer home to attend the University of Arkansas.

Read more about how I made the decision to transfer in my last post.

No More College Athletics, I Thought

My college athletic career was over, at least I had thought so when transferring to Arkansas. Over the summer I continued training as if I were gearing up for the Spring season. I didn’t go as hard as I had in the past, but it was a big change for me to go from training 2-4 hours a day to not competing anymore. I missed the competition.

I started throwing feelers out to the assistant coach of the tennis team at Arkansas. I had no intention of things going anywhere, but then I got a call back from the coach asking for me to come to practice. What!? Umm…I wasn’t expecting them to want me to try out. I had a successful career at Buffalo in doubles and I thought there was legitimate value I could add. At the time, Arkansas ranked top 30 in the country (Buffalo was around 75).

After moving up to Fayetteville I was ready to begin training more like I was gearing up for an actual season. I found another guy who was a decent player and also went to Arkansas. We started practicing 3-4 times per week at some of the local courts.

First Introduction to A Huge Life Lesson: It Is All About Who You Know

One day while we were hitting at the local courts a random guy (Matt), a little older than I was, came up to the fence and stopped me. Matt asked me where I was from and if I played for the university. He said he had never seen someone out at those local courts playing at such a high caliber of tennis. I told him a little about my back story of being a former D1 player and mentioned I was prepping for a tryout with the team.

Matt started talking to me about how he had graduated from Arkansas a year prior and played for the team. He knew the coach well and would reach out to him to put in a good word. I was super impressed by the guy and he seemed genuine. We exchanged contact information and he asked me to reach out to him if I wanted to hit sometime. Little did I know at the time that he also ran the largest junior academy in the NW Arkansas area.

Time For Tryouts!!

It was finally time to give it a go with the big boys at Arkansas. I had never seen a facility as nice as the one they played in. Incredible 6 court private indoor facility as well as a 10-12 court outdoor facility. I was a little intimidated from arriving the first day at tryouts.

Long story short, the tryouts ended up going well. I played singles against some of the lower guys on the team and was then mixed in to play a set of doubles. For not playing a competitive match in 5 months, I was playing well. After the second day the head coach and I sat down to discuss what next steps would be. The coach informed me that the new Athletic Director had recently implemented a 12 man roster limit. Well that sucks. The team had exactly 12 people.

Looks like the door of playing for a SEC school closed. I reached back out to Matt thanking him for talking with the coach about me. Matt was disappointed I didn’t get a spot on the team but ended up offering me a job to work for him coaching. I had coached some of the top juniors in the state of Texas and needed money, so this was a perfect opportunity. I immediately jumped on it.

A key lesson I want to note here. A big part of life is about who you know. A bigger part of life is about the perception others have of you. If you come off as a genuine person, you will be amazed about how people are attracted to that.

Full Time Work and School

I was now working 30-40 hours per week for Matt while going to school for Industrial Engineering. A great thing about the job I had was the pay. A big benefit of having a unique skill most others don’t have is the ability to monetize it. I was making $30/hr as an assistant tennis coach at the academy! I no longer had to ask my parents for any money as I continued to have a side hustle that would pay for my wants!

Having a full time job while getting a degree in Industrial Engineering is difficult. I managed to do both while having a great last two years of college. Looking back I am grateful to have not made the Arkansas team. If I continued being a D1 athlete, I wouldn’t have had the opportunities I did.

Finally Graduating – One Last Big Decision to Make

As I approached graduation, there was one more difficult decision to make. What job offer would I accept?

After long interview processes I had two job offers. Below is a little more detail about each one.

Job Offer 1:

  • Salary: $59,000
  • Company: JB Hunt
  • Location: Lowell, AR
  • Position: Part of the Final Mile industrial engineering team. I would be responsible for assisting to come up with the network design for Final Mile.

Job Offer 2:

  • Salary: $60,000
  • Company: Walmart eCommerce
  • Location: Bethlehem, PA
  • Position: Part of the eCommerce Industrial engineering team. I would be responsible for leading the mechanical installation of a $300 million building.

Before getting the first offer, I wasn’t 100% sure what salary range I would end up at. The two offers being more or less the same (from a $$$ perspective) made it a little more difficult.

How I Decided What Offer to Accept

After long debate going back and forth, I had made a decision on which offer I wanted to accept.

The key drivers of my decision were:

  • Where I would be living? For the JB Hunt offer, I would stay living in Northwest Arkansas. This wasn’t appealing to me as I wouldn’t know anyone who lived there. For Walmart, I would move to an area I had the chance to visit when I was an athlete at Buffalo. Bethlehem was an interesting college town north of Philadelphia.
  • What line of work it was in? JB Hunt is a transportation company and to be honest, transportation isn’t interesting. The Walmart offer being in eCommerce did seem very intriguing. At the time Amazon was taking over the world (some would say they still are). Being in eCommerce was going to be the next big industry. This made the Walmart offer very appealing.
  • How much I would make? Let’s be honest, the only thing going through a kids mind when they are graduating college is how much money I make. I was by no means different. For me, I am a very fortunate the Walmart offer was $1,000 more than JB Hunt.

With the three major drivers of my decision leaning towards Walmart, I accepted the offer. I was very excited to close out a huge chapter of my life and begin into the real world. I mean, c’mon my parents had always told me:

  • Go to school
  • Get a good degree
  • Get a job with a stable company
  • And retire when you are 65

I was doing exactly that. Catching my Rich Dad Poor Dad sarcasm at all? 😉

Another major part of my life had come to an end. Now time to move into the real world!

Key Takeaways:

  • Life is all about who you know. Don’t forget, it is also about being a genuine person. You can know the most intelligent and successful people in the world, but if you are an ass, they won’t want to help you. Be genuine.
  • Although money is important, don’t let money be the driving factor in deciding a job. Think about the long term and the industry you are going into. Think about the growth opportunities that are to arise in the future.
  • Continue figuring out the unique skills you have and determine if you can monetize them. I leveraged my tennis abilities and my relationships to get a job coaching making $30/hr.