Eyes On
Feelings About Money
Your biases and emotions can affect your spending and investing habits. Which means you might make irrational financial decisions, even if you’re usually good with money. Example: You avoid facing your credit card bills even though you have a flush emergency fund. Or jump on the latest meme-stock craze despite having a budget to stick to. Here are a few smart moves you can make, no matter how you feel about money.
Your move:
Try to resist FOMO. Your behavior and decisions can be influenced by your peers, which isn’t always great for your bank account. Especially when those after-work drinks are $20. Each.
Automate your 401(k). Start by allocating 10% of your salary (or getting as close to that number as you can). Then increase your contribution rate by 2% every year until you get up to 20%, IRS limits permitting.
Consider financial therapy. Counseling that focuses on how your past may affect your relationship with money could help you address certain financial habits head-on.
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For the Group Chat
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Highs and Lows
It’s been a volatile day for the stock market in the wake of the collapse of Silicon Valley Bank on Friday. Indexes dipped this morning and then regained ground hours later. Bank shares also fell, with some regional bank stocks plunging. Regulators are hoping to reestablish confidence in the banking system and approved plans to protect SVB depositors — even beyond the $250,000 insured by the FDIC. President Biden made remarks this morning reassuring Americans that bank customers are safe and insisted that those responsible for the collapse will face consequences.
5-Minute Money Tip
Max out your traditional IRA before Tax Day.
You have until April 18 to contribute to your traditional IRA for the 2022 tax year. If you do, you could lower your tax bill, depending on your income level, marriage status, and whether you’re covered by a retirement plan at work. (PS: You can check allll the requirements here.) For 2022, you can contribute up to $6,000, or up to $7,000 if you’re 50 or older (psst…tell your parents, sandwich generation).
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