Financial planning Archives - DIYmoneytrack.com

Rate shopping: How to earn more by moving your cash between HYSAs

Now may be a particularly good time to pay attention to where your cash is earning interest. Interest rates are rising, and banks are competing aggressively for deposits, creating opportunities to earn more by moving your money between high-yield savings accounts (HYSAs).

That’s the basic idea behind rate shopping: periodically comparing the rates available on your cash and moving your money when you find a meaningfully higher APY.

Platforms such as Raisin make this strategy easier by giving you access to savings products from multiple banks through one platform.

Keep reading if you are interested in learning how cash rate shopping works.

The hidden cost of cash: Your money has a job

In my book Making Big Money Decisions, I explain how understanding opportunity cost can help you make better decisions when you’re considering a major purchase. But opportunity cost isn’t just about buying a car, a home, or other big-ticket items.

It applies to your everyday money decisions, too.

You may think your money is safe because it’s sitting in your checking account, Venmo balance, or waiting for you to pay your taxes. But there’s a hidden cost to letting money sit idle: opportunity cost.

As a refresher, opportunity cost is the value of the next-best alternative you give up when you make a choice.

Keep reading to learn where these opportunity costs may be hiding in your accounts.

Where should your money live?

A common question I hear from young adults is, “Which investment accounts should I be using?” Often, the question focuses on choosing between a company 401(k) and a Roth IRA.

That’s an important decision, but it’s better answered in the context of your overall saving and investing strategy. Different accounts serve different purposes, and the goal is to give every dollar a job and put it in the right place.

To learn more about your account options and how to decide where to put your next dollar, please keep reading.

Your one savings goal that protects every other goal

I recently spoke with a 30-year-old married father of two about his family’s finances. When I asked about their top financial goals, he didn’t hesitate. They wanted to save for a down payment on a home and pay off their student loans. They were also making a smart long-term decision by contributing 8% of his salary to a 401(k).

Those are all worthwhile goals.

But after reviewing the family’s monthly income, expenses, and savings, one concern became obvious. They had a relatively small amount of savings set aside for emergencies. A major car repair, an unexpected medical bill, or a temporary job loss could wipe out their savings and force them to abandon the very goals they were working so hard to achieve.

Unfortunately, their situation isn’t unique.

Keep reading if you’re interested in learning more about developing and assessing your emergency savings plan.

The hidden cost of living: A young adult’s guide to inflation

If your streaming service raised its price by 3% every year, you’d probably notice. If your rent rose 3%, you’d definitely notice. But when almost everything gets a little more expensive each year, many people don’t notice until they wonder:

“Why does my paycheck feel bigger, but my money feels smaller?”

That’s inflation—and understanding it is one of the most important financial skills young adults can develop.

Most young adults spend time tracking their bank account balances, investment returns, and credit scores. Yet many overlook inflation – one of the most important financial metrics affecting every dollar they earn, save, and invest.

Ignoring inflation is like driving a car while covering up the speedometer. You might still get where you’re going, but you’re missing information that could prevent expensive mistakes.

If you’re interested in better understanding inflation, including why and how to track it for planning purposes, keep reading.

Gen Z, financial nihilism, and why financial education matters more than ever

A recent article from the World Economic Forum highlights a growing trend among Gen Z adults (aged 18 to 27 years old) often described as “financial nihilism” — the belief that traditional paths to financial success no longer work.

Faced with stagnant wages, rising housing costs, student debt, and economic uncertainty, many young adults are turning to riskier financial behaviors such as cryptocurrency speculation, prediction markets, and high-risk investing.

The article argues that these behaviors are not simply reckless decisions, but often rational responses to a system that feels increasingly out of reach. Homeownership is harder to achieve, retirement feels distant, and many young people believe slow-and-steady saving may never be enough.

Why longevity risk matters more than you think

When you’re in your 20’s or 30’s, thinking about how long you’ll live—and whether your money will last that long—feels abstract at best. Retirement is decades away. There are more immediate priorities: paying off debt, building a career, maybe buying a home.

But here’s the reality: one of the biggest financial risks you face isn’t market crashes or inflation—it’s living longer than your money.

That’s called longevity risk, and ignoring it early can quietly cost you decades of financial freedom later.

To learn why longevity risk matters for planning purposes at any age, please read on.

Will your rewards survive the CCCA?

Maximizing cash-back rewards is one of the simplest ways to fight back against rising costs. It’s a straightforward move that turns your everyday spending into a tool for protecting your purchasing power.

Those rewards and financial benefits are at risk of being reduced or even eliminated, depending on how the Credit Card Competition Act (CCCA) plays out.

Please keep reading if you are interested in learning more about the bill, its potential implications for consumers, and what you can do about it right now.

Level up your life: Why financial planning is your ultimate cheat code

Do you ever feel like adulting comes with a secret rulebook no one gave you? One of the most powerful “secrets” to a smoother future is something that might sound a little boring at first: financial planning. In truth, though, it’s far from dull. It’s less like sitting through a math class and more like playing a strategic game where every smart move sets you up to win. Think of it as your personal advantage—the closest thing life has to a cheat code.

This isn’t just about stashing cash for a new phone. It’s about laying the groundwork for your dream life—no matter how you define it. Want to travel the world? Buy your own place? Start a business? Financial planning makes it possible.

If you are interested in learning more about the benefits of financial planning and how to get access to the spreadsheet template that I use, keep reading.

What level of financial advice do you need?

Recently, I’ve had multiple conversations related to the same question: How do you balance my DIY tools with professional financial advice? Many of you are looking for that ‘hybrid’ sweet spot where self-management meets expert guidance.

When it comes to managing money, there’s no single “right” way to get financial advice. Some people prefer to do everything themselves, others want professional guidance, and many fall somewhere in between.

Today, financial advice generally falls into three categories: DIY (do-it-yourself), hybrid, and full-service. Understanding the differences can help you choose the method that best matches your finances, confidence, and long-term goals.

If you are interested in learning about the different methods, including costs and benefits, and how to determine what level of financial advice you may need, please read on.