Skimm Money: ETFS, Irresponsible Spending, And Money Anxiety

Eyes On

Exchange-Traded Funds

Exchange-traded funds, aka ETFs, are a low-maintenance way to invest in many stocks, bonds, and commodities at once. The perk: Instant diversification. So if one stock or asset is performing poorly, it could be offset by returns made by another. Plus, ETFs usually have low minimum investment amounts, so you can get started ASAP.

Your move…

• Get your $ in order. Set up an emergency fund and pay off high-interest debt (hi, credit cards), so you’re financially prepared before you take on any risk. 

• Know the costs. ETFs typically have low fees, but you’ll still want to consider expense ratios and brokerage fees.

• Set it and forget it. ETFs are usually managed passively and aim to track market performance, not beat it. Psst…most actively managed funds don’t beat the market in the long run.

For the Group Chat

How long does the new-job honeymoon last?

Not as long as you might think.

Buying an affordable home is still possible…

At least, in select US cities. 

Getting paid to eat cheese and fall asleep? 

Yep, that's a real side hustle.

Valentine's Day might be coming up... 

But irresponsible spending is not it.

Highs and Lows

Major indexes fell today ahead of a big financial news week. Coming up: Earnings reports from several Big Tech companies (hi, Alphabet, Amazon, and Meta), an anticipated interest rate hike announcement from the Fed on Wednesday, and the release of January’s jobs report on Friday.TLDR, expect to see lots of stock market news this week.

5-Minute Money Tip

Try the 5-4-3-2-1 method. 

Between recession fears and high inflation, most of us are stressed about money RN. Enter: The 5-4-3-2-1 method. To calm anxious feelings, name five things you can see, four you can feel, three you can hear, two you can smell, and one you can taste. Because a less anxious you = a you that’s ready to tackle your money goals. PS: Here are more tips for dealing with financial anxiety.