The Propeller - It's Christmas Party Time

‘Tis the Tech Season

Yo, December’s rolling up and it’s about to get lit (literally, with all the holiday lights)! This is the time when your friends gather around, and you’re all like, “Remember when we actually talked face-to-face and not just through texts and memes?” It’s when the great outdoors decides to go all ‘Frozen’ on us, but hey, who’s complaining? We’ve got heated blankets and that AI-driven thermostat that learns just how toasty you like your toes.

You know it’s December when your phone is blowing up with texts—not just from your family, but also from those smart home devices reminding you to buy more eggnog. And let’s not forget those snowflakes dancing outside, each one trying to be the next viral star on Snowflake TikTok or something.

Inside, it’s all about that hygge life (because who can actually pronounce that word right, anyway?). You’ve got that smart fireplace app that turns your TV into a crackling fire—because who has time for real wood? Then there’s that moment when you’re chilling with the fam, and your smart speaker randomly joins the convo, spitting out facts like it’s got a PhD in Holiday Cheer.

And let’s talk about gifting—gone are the days of ties, underwear, and sweaters. Now it’s all about those gadgets that make you go, “How did I live without this?” We’re talking drones that can follow your dog around, so you don’t have to, or those VR headsets that transport you to a beach so you can forget it’s like the North Pole outside.

December is that magical time when you’re reminded that your phone knows more about your shopping habits than Santa ever did. But hey, that’s the charm of the season, right? So, let’s toast to the twelfth month with our LED-light-rimmed glasses, ask our AI assistants to play some classic tunes, and revel in the crazy, cozy, techy wonderland that is December. Happy holidays, and may your Wi-Fi always be strong!

How Much House Can You Afford?

If you’re not old enough to remember 2007-2008, let me refresh your memory. It’s when mortgage lenders screwed the proverbial pooch by getting people into homes they couldn’t afford.

It caused a temporary market crash, and many people lived in homes that were way too expensive for them.

The story’s moral is simple: Your approved mortgage amount isn’t necessarily what you can afford.

Instead, it’s the risk the bank will take on you.

That’s it.

Do not, under any circumstances, let the bank convince you to spend more than you’re comfortable with just because you’re approved for it.

That’s a one-way street to Debtville.

Here’s what to do instead:

How Much House Can You Afford?

I won’t lie, your approved mortgage amount can be insanely deceiving. Looking at all those zeros makes you believe you can afford a more expensive house than you thought.

If you spend it all, you could find yourself “house poor,” which means the majority of your income is going to pay for your house without much left over for saving and investing.

That’s a BAD position to be in.

Never let the bank decide how much house you can afford.

There are better ways to determine that.

Two ways to determine how much house you can afford

#1: 2.5x gross annual salary rule

As a general guideline (and to make the math easy), you can generally afford a house that costs up to 2.5x your gross annual salary (gross means before taxes are removed).

If you earn $100,000 a year, you can afford a $250,000 home.

Note that this is only a general guideline. It’s a simple calculation to put you in the ballpark of what you can safely afford.

If your spouse also works, you might feel comfortable buying a more expensive home. Again, use this as a guideline, not a hard and fast rule.

#2: 28%/36% rule

This is a slightly more complex way of determining how much house you can afford. Here’s how it works.

No more than 28% of your gross monthly income should be spent on housing expenses and no more than 36% on total debt, which includes other debts such as credit cards, auto loans, etc.

Your housing expenses include everything in your mortgage, including the principal, interest, taxes, and insurance. Everything. Many mortgage lenders consider this before approving your mortgage.

If your gross monthly income is $5,000, it’s best not to take a mortgage higher than $1,400/month, as that’s 28% of your monthly salary.

When in doubt, be conservative. Especially in our inflationary market, playing it safer right now is probably the best bet.

Summary: If you’re uncomfortable spending the whole mortgage amount, DON’T SPEND IT. Spend less, then invest in an S&P Index fund as much as you can, and you’ll build more wealth than 80% of the people in your neighborhood.

Your Feet Will Thank You!

Darn Tough Socks have cultivated quite a reputation, particularly among outdoor enthusiasts and those seeking long-lasting comfort for their feet. According to a review, one user initially balked at the price tag which can go as high as $20 per pair but was ultimately converted to a loyal fan by the quality of the socks.

I personally love these socks and their snug fit, how soft and comfy they feel, and the way they wick away moisture even in the summer. I also enjoy the peace of mind provided by the lifetime warranty which promises that these socks are designed to endure. There is a huge cost-saving potential due to their lifelong guarantee, and the premium feel and fit provided by the high stitch count. They also note the ability of the Merino Wool to remain fresh and maintain excellent thermal properties in both cold and hot temperatures.

The lifetime warranty is a standout feature, ensuring that once you have a pair of Darn Tough Socks, you may never need to replace them. If the socks do wear out, you simply send them back and they will send you brand-new socks back. This means not only do they promise enduring quality, but they also represent a significant long-term saving, potentially meaning you won’t need to ask for new socks every Christmas. (Sorry Mom, I don’t need socks this Christmas!)

I’ve teamed up with Darn Tough socks to get you a great discount on your first pair. Follow this link and pick up a pair (or 3 or 4!): http:// https://darntough.refr.cc/leonardmmack

Regrets of those Dying

I read Top Five Regrets of the Dying (Check it out on Amazon here: https://amzn.to/46uPshD ) a while ago. Here are 5 regrets that dying people have:

I wish I’d had the courage to live a life true to myself, not the life others expected of me.
I wish I hadn’t worked so hard.
I wish I’d had the courage to express my feelings.
I wish I had stayed in touch with my friends.
I wish that I had let myself be happier.

Quote of the Week

“One of the most sincere forms of respect is actually listening to what another has to say.”
— Bryant H. McGill

Every human longs to be heard.

By staying quiet and listening to what the other person has to say, you are subconsciously signaling to them that you are willing to set aside your desire to speak in favor of theirs. It not only makes them feel respected but also compels them to respect you in return.

What I’m Reading/Listening To This Week

What I Read/Listened to Last week:

As a Man Thinketh is a philosophical essay that centers on the idea that individuals are the architects of their own lives and that their thoughts shape their reality. Here are what I thought were the top three points covered in the book:

The Power of Thought: Allen proposes that the mind is like a garden, which can be cultivated wisely or allowed to run wild. He emphasizes that thoughts are the seeds that can grow either flowers or weeds in the garden of life. The book elaborates on how positive thoughts lead to positive outcomes, while negative thoughts lead to adverse results.
Self-Control and Direction: The author stresses the importance of self-control and how it can lead to self-improvement. He argues that people are not shaped by their circumstances, but rather by their thoughts about those circumstances. By directing our thoughts, we have the power to guide our actions and ultimately, control our destiny.
The Effect of Thought on Circumstances: Allen discusses the influence of thought on circumstances, suggesting that people can transform their reality by changing their mindset. He notes that individuals who harness their thoughts can overcome their circumstances, no matter how difficult they may seem.

The book is revered for its timeless wisdom (It was written in 1903) and the practical applicability of its concepts. It is a concise work (And thus a short audiobook), often seen as a guide for personal development, encouraging readers to look inward and shape their lives through the power of thought.

Read or listen along by picking up your copy here: https://amzn.to/3MOa1yA

Since the above book was pretty short, I was able to get in 2 books this week. I listened to this audiobook of another classic:

“The Law of Success” by Napoleon Hill is often regarded as a foundational book in the genre of personal development and self-help. Originally published in 1928, this multi-volume work encapsulates Hill’s comprehensive study of the habits and mindsets of highly successful individuals. At its core, the book is a detailed exploration of the 16 fundamental principles of success, which Hill identified through his analysis of the achievements of over 500 distinguished men of his time.

What makes Hill’s work enduring is its holistic approach to success. He doesn’t just focus on financial achievement but also emphasizes the importance of personal belief, the power of the mastermind group, and the necessity of a positive mental attitude. His insights on how to cultivate a success-oriented mindset resonate with readers even today.

One of the critical aspects of the book is the actionable strategies it provides, encouraging readers to apply the laws in their lives actively. Critics and readers alike praise the book for its inspiring anecdotes and its ability to motivate change. However, some may find the early 20th-century context and writing style a bit dated for modern sensibilities. Despite this, Hill’s work remains a cornerstone in personal development literature, offering valuable lessons for those interested in achieving personal and professional success.

Pick up your copy here: https://amzn.to/46q7dPe

What I am Reading/Listening to this week:

Jordan has led an interesting life. If you have seen the movie The Wolf of Wall Street, then you know how carazy his life actually was. This should be an interesting read.
From the Amazon Description:
“From the “raw and frequently hilarious” (The New York Times) investment guru and New York Times bestselling author of The Wolf of Wall Street who inspired the Oscar-winning film of the same name, a witty and clear-eyed guide for anyone who wants to play the stock market to their advantage and learn the secrets of a top Wall Street investor.”
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Read of listen along here: https://amzn.to/3STPxIp

No tree’s were harmed in the sending of this message

This is re-published from the weekly email sent by Leonard Mack entitled The Propeller. To subscribe, visit https://www.LeonardMack.com/subscribe and read it every Sunday evening.

This intellectual nourishment is intended for informational purposes only. One should not construe anything herein as being legal, tax, investment, financial, or other advice.

My rule is this – I have no advice to give, only experience to share. I have no interest in being a guru or telling people what they should do. Rather, I share my own experience because there is no right or wrong. Your mileage may vary.

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