Wednesday, April 12, 2023 |
|
|
53% of Americans don't have money saved for emergencies |
More than half of Americans are operating without a financial safety net. Some 53% of U.S. adults say they don't have emergency savings, according to the CNBC Your Money Financial Confidence Survey, conducted in partnership with Momentive. Most financial experts recommend keeping three to six months' worth of living expenses on hand to handle unexpected events — such as a job loss or a surprise medical procedure — which could otherwise derail your financial plans. Socking away that much money may seem daunting, especially since 58% of survey respondents reported living paycheck to paycheck. So start small. The average emergency costs around $1,400, according to a 2022 LendingClub survey. Here's how to get started. Take stock of your income and expenses. Upon reviewing your budget, you may find expenses to trim, such as unused subscription services or impulsive online shopping. Take those savings and apply them to a rainy day fund. Use cash windfalls to get ahead. If every cent of your paycheck is accounted for, use the occasional lump sums to build your savings. A tax refund, annual bonus, gift or other cash windfall could be safely stashed away. Automate your savings. It's harder to spend money when it never hits your checking account. Figure out how much of each paycheck you can afford to put aside and set up direct deposit into a high-yield savings account. Setting a goal and working backward can be helpful. If you're aiming to save $1,400 over the next 12 months, for instance, deposit $54 from each biweekly paycheck. |
Money Tip of the Week: 3 signs you have too much debt If you're in debt, you're not alone. Among Americans, the average balance, including mortgages, student loans and auto financing, hit $101,915 in 2022, per credit bureau Experian's most recent data. For credit card debt, the average is $5,910. For student debt, it's $39,032. Not all debt is created equal. Owing a 3% rate on your mortgage is different than owing credit card debt at a rate of 25%. And being $10,000 in the red is going to feel much different to a millionaire than it would to someone earning minimum wage. So how do you know if you have too much debt? Here are three red flags. 1. You can only afford to pay the minimum. Making minimum payments on low-rate debt, such as a student loan, can be part of a healthy financial plan. But if minimum payments are all you can afford, you could be vulnerable to unexpected costs pushing you further into debt. 2. You're consistently late on your bills. This is a telltale sign that your debt is out of control. The same thinking applies if you're withdrawing from your retirement savings or using credit to cover bills. 3. Your debt-to-income ratio is above 36%. That's the benchmark lenders use when considering applications for credit. Find yours by dividing your monthly debt payments by your monthly income after taxes.
|
|
|
Next Gen Investing: NFT collectors could soon face a higher tax bill |
If you own a non-fungible token such as a CryptoPunk or a Bored Ape, do you own a digital investment or a work of art? That's what the IRS is hoping to determine. The agency will hear public comment through June 19 on its plans to tax NFTs. Currently, all NFTs and cryptocurrencies are taxed as property. That means, when you sell one for more than you paid for it, you owe capital gains taxes on the profit — the same as you would on a stock. The long-term capital gains rate, which applies to assets held for more than a year, is typically lower than income tax rates, and ranges from 0% to 20%. Under the IRS proposal, certain NFTs would be taxed as collectibles. That means profits from their sale would be subject to a maximum rate of 28%. |
Worth the Money: Bisley file cabinet |
I work from home on Mondays and Fridays, and even though I spend less than half my week at that desk, it's always a mess. The top is covered in papers, notebooks, random mail, stray mugs that should have made their way to the dishwasher long ago … you name it.
I'd been on the lookout for a file cabinet that would help me contain some of my clutter and when I finally found one with the right dimensions, I took advantage of a sale and bought one from Bisley ($239.99, thecontainerstore.com) that fits right under my desk. Now all the miscellaneous items that used to crowd my desktop fit into eight labeled drawers, and looking at my space no longer causes me additional stress during the workday. —Hanna Howard, Senior Work Editor |
|
|
Enjoying this newsletter? Forward to a friend and subscribe. |
|
|
|
Tidak ada komentar:
Posting Komentar