Happy Friday and what would’ve been the day after Tax Day…if the IRS hadn’t moved the deadline to May 17. Today we’re breaking down our third money myth of Financial Literacy Month: that you need a lot of money to invest. Keep reading for why it’s smart to get started ASAP.
Headlines, Skimm’d
Prices get pricier. As the country continued reopening in March, Americans reopened their wallets. Bad news first: average costs for common consumer goods (gas, food, clothes) rose at the fastest pace in almost nine years. The good news: it’s a sign the economy is getting back to normal.
Maybe the US can try "50/20/30." The federal deficit rose to a record $1.7T over the past six months, up 454% from a year ago. What happens when the gov overspends? We Skimm’d it for you.
All about that Coinbase. On Wednesday, the platform became the first cryptocurrency biz to go public in the US. And they did it via "direct listing," not an IPO. Read this before hopping on the crypto bandwagon.
Make Good (Money) Choices
If you’ve been waiting to invest until you earned more...
Start now. Many investing apps and services let you buy fractional shares (aka small pieces of stocks and funds). Meaning you can invest just a few dollars at a time. Investing a little now could be smarter than waiting to invest more later.
Example: if you invest $100/month, and earn an average annual return of 7%, you'll have about $240K in 40 years. But if you hold off for 10 years, then invest twice as much – so, $200/month for 30 years – you end up with less. About $230K. theSkimm: Time in the market matters. Get in the habit now, then invest more as your paycheck grows.
PS: you can watch a recording of last night's SkimmU course, Investing 101, to learn more about being a confident investor.
If you want to do less and have more...
Money smarter. Staying on top of your finances doesn't mean doing everything the hard way. You can make things easier – and still move toward your goals – by using tech to your advantage, getting strategic about your debt, and looking for ways to earn passive income. We Skimm’d a few more ideas (and bonus reading and listening material) for you here.
If your lease is up soon...
Negotiate for lower rent. Start by researching rates for comparable apartments in your area. Then talk numbers with your landlord. If you can't get a price drop, ask for other concessions. Like a smaller security deposit. Or a free month or two in exchange for signing a longer lease term.
Tips Don't Lie
Avoid "revenge-spending" regret. The economy's rebounding. The stock market's on a hot streak. And some Americans (who are lucky to have disposable income) are ready to "revenge-spend." Think: splurging to make up for lost time. Here's how to spend smart.
Take care of Future You first. Then give yourself permission to treat yourself (within reason) now.
Try the 24-hour rule. Wait a day between adding to cart and clicking "buy." Just in case you change your mind. For big stuff, like a vacation, give it 30 days.
Use rewards. If you're sitting on points, redeem some.
Do good. Consider supporting important causes, like closing the racial and gender wealth gaps or going green. Revenge spending meets real purchasing power.
Hot Off the Web
Childcare providers are getting $39B in aid.
Earnings season opened with good news from big banks.
FEMA is helping with COVID-19 funeral expenses.
Actor Hill Harper is launching an app for BIPOC investors.
NFT sales topped $2B in Q1.
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