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Most Americans Living Paycheck to Paycheck
CNBC tells us that most Americans live paycheck to paycheck. The highlights:
Seventy-eight percent of full-time workers said they live paycheck to paycheck.
Overall, 71 percent of all U.S. workers said they're now in debt.
While 46 percent said their debt is manageable, 56 percent said they were in over their heads.
Even those making over six figures said they struggle to make ends meet. Nearly 1 in 10 of those making $100,000 or more said they usually or always live paycheck to paycheck, and 59 percent of those in that salary range said they were in the red.
Ugh.
Is anyone surprised?
We talked about these facts years ago. Looks like things haven't changed.
Star Money Articles for the Week of Oct 23
Welcome to this week's edition of Star Money Articles.
Budgets are Sexy gives us some money motivation.
ESI Money talks about how investing in your career can pay off.
Choose FI covers the mega backdoor Roth.
The Retirement Manifesto gives tips for retiring abroad.
Big Law Investor talks about index fund allocation.
Have a GREAT weekend!!!
Four Reasons Not to Retire Early
The Motley Fool lists four reasons not to retire early as follows:
1. You'll have to wait longer for (full) benefits.
2. You're on your own for health insurance.
3. It could harm your health.
4. You'll need to save more.
Like many mainstream articles, this one is a post in search of some relevance.
Are they serious? The reasons are W-E-A-K in my opinion.
My take on them:
How to Get Started With Hard Money Lending
The following is a guest post from a lawyer writing about personal finance and investing at The Biglaw Investor.
One of the greatest achievements in the investing world over the past decade has been the dominance of index funds and the retreat of high-fee mutual funds and financial advisors. Investors, as a class, are starting to understand that attempting to beat the public market is a fool’s errand where the only guaranteed return is delivered to the brokers and advisors that take a cut out of each transaction.
At the same time, fast-growing technology has pushed private markets - previously unavailable to most investors - to the public.
Are there opportunities to get returns that aren’t correlated with the broader public stock market? I think there are.
Star Money Articles for the Week of Oct 16
Welcome to this week's edition of Star Money Articles.
Physician on Fire discusses the dark side of physician finance.
ESI Money interviewed some more millionaires.
Mama Fish Saves gives a home improvement checklist on cost versus value.
Chief Mom Officer doesn't let her kids have cell phones.
Money Q and A tells how to get 10% back on your money.
Have a GREAT weekend!!!
Three Questions to Determine Financial Literacy
A recent Freakonomics podcast listed three questions to determine financial literacy developed by an economist who teaches at George Washington University.
They are:
Question 1: Suppose you have $100 in a savings account and the interest rate was 2 percent per year. After 5 years, how much do you think you would have in the account if you left the money to grow? A) More than $102. B) Exactly $102. C) Less than $102. Or, if you really want to play along, D) I don’t know.
Question 2: Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent per year. After one year, how much would you be able to buy with the money in this account? A) More than today. B) Exactly the same as today. C) Less than today. Or, D) I don’t know.
Only 1 in 10 Americans at Peak Financial Health
Here's an interesting post from NerdWallet that says only one in ten Americans is at peak financial health.
They determined "financial health" by creating an online survey which "asked more than 2,000 U.S. adults about eight important components of financial health."
They then weighted the questions to produce a financial health score for each person surveyed.
Only 10.5% of respondents received a perfect score. A perfect score was given to everyone who met all of the following:
Star Money Articles for the Week of Oct 9
Welcome to this week's edition of Star Money Articles.
ESI Money had an investment go bad.
Big Law Investor covers the three years and out plan.
Debt Roundup tells how to save $100 a month.
Retire by 40 says you don't have to be the best to win big in life.
Wallet Hacks lists the best cable TV alternatives.
Have a GREAT weekend!!!
Extra Home Ownership Costs Make Renting Look Good
Here are some interesting facts on home ownership costs from CNBC:
Often-forgotten and underestimated costs of owning a home — from utility bills to yard care — add an average $9,080 per year to homeowners' tabs, according to a new analysis from real estate site Zillow and service site Thumbtack.
The main costs that make up the $9k include:
- Utilities
- Maintenance (including yard care)
- Property taxes
- Insurance
These are some big numbers, especially when you're comparing home ownership versus renting.
These costs alone add up to over $750 per month. Of course you'd still have utilities when renting (though greatly reduced) and renter's insurance (again, greatly reduced).
But you'd also have your equity in the home invested.
Top 7 Most Common Financial Mistakes
Investopedia lists the seven most common financial mistakes as follows:
- Mistake No. 1: Excessive/Frivolous Spending
- Mistake No. 2: Never-Ending Payments
- Mistake No. 3: Living on Borrowed Money
- Mistake No. 4: Buying a New Car
- Mistake No. 5: Spending Too Much on Your House
- Mistake No. 6: Treating Your Home Equity Like a Piggy Bank
- Mistake No. 7: Living Paycheck to Paycheck
My thoughts on these:
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