Smart Retirement Hacks, Budget Resets, and A Money Dilemma From My Inbox
Now is a great time to talk about how your side hustle could quietly boost your retirement game. Plus, let’s tackle sneaky budget busters and a spicy money dilemma from my inbox.
The Wealth Minute
How to Build Tax-Free Retirement Savings (Use a Side Hustle)
If you’ve got a side hustle, freelance gig, or consulting work bringing in extra income — you might be missing out on one of the smartest ways to build tax-free retirement money.
Most people are focused on tax-deferred accounts like a 401(k), but you should be looking at how to grow money you can access tax-free in retirement. Below are some suggestions:
Roth IRA: If your income qualifies (under $161,000 for single filers or $240,000 for joint in 2024), you can contribute up to $7,000 ($8,000 if over 50) and let it grow tax-free. Withdrawals in retirement? They are also tax free after the requirements are met.
Backdoor Roth IRA: Even if your income is too high, you may still be able to fund a Roth through a strategy called a backdoor Roth. It takes a couple of steps, but it’s completely legit and worth exploring.
Roth Solo 401(k): If you’ve got a side hustle, you can open a Solo 401(k) and designate your contributions as Roth contributions. That means you pay taxes now, but your money grows and comes out tax-free in retirement.
Bonus Move: High-Cash Value Life Insurance
For high-income earners who’ve maxed out other options, certain types of permanent life insurance (like an indexed universal life policy) can offer tax-free growth and tax-free withdrawals through policy loans in retirement.
Why this matters:
With tax rates likely to rise in the future, having tax-free income streams in retirement gives you flexibility and control. It’s a smart hedge against future tax hikes — and most people aren’t taking advantage of it.
Bottom line: Use your side hustle to fund your tax-free future. Even small amounts add up when invested early. Reach out if you're interested in exploring any of these further.
Wealth Move
Check if you qualify for a Roth IRA
Review your financial picture to determine if a backdoor Roth is right for you
Click here for a list of side hustle options if you are considering starting one for retirement growth
The Freedom Path
How to Budget for ‘Surprise’ Expenses Without Blowing Up Your Cash Flow
Let’s be honest — it’s never if, it’s when.
Unexpected expenses hit every month: birthdays, wedding invites, car repairs, end-of-school fees, a friend’s last-minute trip invite. And if you don’t plan for them, your budget blows up.
Here’s a better system:
Create a “life happens” fund — a small, flexible savings category that covers those random $50–$500 surprises without derailing your financial progress.
How to do it:
Pick a dollar amount you can consistently set aside each paycheck (even $50–$100). Automating it is a plus.
Park it in a separate high-yield savings account labeled "Life Happens". Ally online bank is a great choice.
Use it only for non-recurring, random, or seasonal stuff (not groceries or your kid’s monthly daycare).
Why it matters:
You’ll feel less stressed, stay on track with your bigger financial goals, and avoid putting emergencies on a credit card.
Click here for my favorite cash envelope system if cash works better for you.
Wealth Move
Do a 5-minute audit this weekend of your calendar for the next two months. Flag upcoming events, birthdays, or expenses now so you can plan for them before they sneak up on you.
Choose an amount to set aside for each month to cover the expenses.
Either move the money to a new account or convert it to cash.
Book of The Month
This month's book is "The Simple Path To Wealth" by JL Collins.
It's been recently updated, so enjoy it with me. I've had the paperback of this one for a while, but just discovered it on Audible.
Coffee Chat Question
If we were to meet for coffee, what would you want to know?
Feel free to email me questions that will anonymously be added to this section during each edition.
Should I cash out my old 401(k) account to pay off credit cards?
My Take:
I get why this feels like a quick fix — but I almost always say no. Here’s why:
Cashing out triggers income taxes if the account is traditional.
It will also come with a 10% penalty if you’re under 59½, and those penalties can easily take 30-40% of your money before you even touch it.
That money also loses its future compound growth. Every $10,000 you pull now could’ve doubled or tripled for you later.
A better move:
Instead of draining retirement accounts, focus on boosting cash flow and tightening your budget to aggressively pay down debt from your active income. That could mean:
PAUSING future contributions for a period of time. Keith and I did this for almost four years while we were getting out of debt.
Temporarily reducing discretionary expenses (think subscriptions) for 3–6 months.
Selling unused assets (old electronics, luxury items, etc.) for a quick liquidity boost.
Taking on a small freelance or consulting project specifically earmarked for debt payoff.
Why this works:
It keeps your long-term money growing and attacks the debt without sacrificing your future. Plus, the discipline of cutting expenses and finding extra income now builds habits you’ll use to catch up on retirement too.
Bottom line:
Don’t raid your future to fix a today problem. Use today to fix today — and protect tomorrow.
Reach out if you need more.
Are You A Federal Employee?
"Uncertainty" was a word never associated with federal employment in the past.
It's a daily utterance these days, however.
To help you make informed financial decisions that are best for you and your family, I'm offering all federal employees a FREE Money Chat.
Click here to schedule a 30 minute chat to discuss anything you want.
Let's change the word of the day to "Empowered."
