Joel covered a lot this week, so here’s a quick outline of what you need to know to get yourself on your way to financial happiness:
One of the major talking points during President Biden’s State of the Union on Tuesday was the economy. In a new Gallup poll, 50% of Americans are saying that they are in a worse financial situation than they were a year ago. Although, feelings are not indicative of facts and what’s going on, it’s important to remember that we all experience different elements of the economy at different times. Below are some other highlights and talking points during the State of the Union.
Inflation. Although inflation is easing, it’s still negatively affecting many of us. In order to check out your personal Consumer-Price Index to see how inflation is affecting you personally, check out this article from the Wall Street Journal.
Jobs. We’re currently seeing the lowest unemployment rate However, there are a few asterisks to this. First, the unemployment rate doesn’t factor in people who have quit looking for a job. That is tracked in the government’s u6. The other thing that isn’t brought up in the unemployment rate is that wages haven’t kept up with the rate of inflation.
Overall. The economy is better than it could be. After the Covid-19 pandemic, there could have been a lot of worst-case scenarios, but it’s not as bad as it could be. However, there is always room for improvement.
F.I.R.E. For those who don’t know, F.I.R.E. stands for Financial Independence, Retire Early. The movement basically encourages people to save a large amount of their paycheck and invest it, hoping that they would be able to retire in there 30s or 40s. Some of the pros in this movement include setting a goal of financial freedom and frugality being praised. However, there are some cons including people sacrificing too much, feeling angst at work, and there being the possibility of people becoming lonely and selfish. For a more in-depth breakdown, check out this article!
Money Move of the Week: Freeze your credit! Freezing your credit restricts access to your credit report. It makes it almost impossible for a hacker to open an account in your name. If you want a break down on why it’s really important to freeze your credit and how to do it, check out this article.