💰 You gotta stop "doom spending"

Good money habits are a choice you have to make in the present and in the future to reap consistent results. This week, we’re taking a little walkthrough of the many different stages of managing your money: like the 4 Ghosts of Christmas except with your finances.

In this issue, you can meet The Emergency Fund that’s good for your present, the ROTH IRA that’s great for retirement, and Investing that’s good for your future. We’ve also thrown in more golden nuggets of information as a bonus. May these money methods help you as much as they’ve helped us. 

- Milan

IN THE STOCKS

• S&P 500 4,604.37 (0.41%)
• NASDAQ 14,403.97 (0.45%)
• Dow Jones 36,247.87 (0.36%)

*Stock data as of closing on December 8th.

MILAN’S HACK OF THE DAY

How To Build An Emergency Fund 

Americans are really digging deep into their pockets to weather these economic downturns and it's showing. A recent study found that 57% of adults feel like their emergency savings funds aren’t sufficient while more than 1 in 5 Americans won’t be able to afford an unexpected expense of $500. 

Your emergency fund needs to become a priority. It’s the one thing that could get you out of a tough spot. Continue to put away portions of your income into an account until you have saved up 6 months' worth of your living expenses. This will act as your safety net on a rainy day and save you from complete bankruptcy.

If you’ve been having trouble contributing towards your emergency fund, learn more about budgeting your money with our easy-to-use budget planner at milansingh.co/budget-planner

THE MONEY BREAKDOWN

"ROTH IRA"

Imagine a ROTH IRA as a special account where you can invest your money for the future. The "Roth" is just the name, like calling it a unique savings account. Here's the catch: the money you put into this special account has already been taxed, meaning that when you withdraw the money later, all the additional earnings it generated belong entirely to you, and you don't owe any more to the government. It's like harvesting all the apples from a tree you planted many years ago!

This type of account is called different names in different countries: in the U.S., it is called a ROTH IRA, in Canada, it's called a TFSA and in the U.K. it's called an ISA. Whichever name it goes by, it's a strategic way to save and invest for your financial future. Get in touch with your nearest financial institution about this account and start contributing towards your future today.

IN THE KNOW

Americans Are “Doom Spending” 😳

Today’s economy has not been kind to anyone trying to manage their money. Prices of goods and services remain at an all-time high but despite this, consumer spending has remained more or less the same. So how are Americans saving money while consistently spending? Well, they’re not.

A recent report found that despite 96% of Americans being worried about the economy, only 25% of them are cutting back on spending. A new “doom spending” trend has swept across the nation, making people mindlessly shop so they can distract themselves from the scary reality of our geopolitical and economic statuses. 

We get where this is coming from - nothing like a fresh pair of sneakers to distract us from ever-present existential dread. But this is seriously harming your long-term financial well-being. Saving, investing, and managing your money may be tough right now but remember that you’re currently at a point in life where every dollar you make can be multiplied in no time, thanks to compounding interest. 

Take simple steps with your money that will snowball into bigger benefits a few years down the line. Here are some of my favorite money hacks you can use to help you along the way: milansingh.co/hacks

A Ray Of Hope ✈️

It’s not all doom and gloom this week though, there was a ray of hope shining through the darkness in the form of a transatlantic flight that flew purely on Sustainable Aviation Fuel (SAF) late last month.

Air travel is one of the biggest pollutants today and with increased demand from a post-COVID spending spree, there’s no better time than now to find a way we can travel across continents while leaving a lower carbon footprint.  

The flight, operated by Virgin Atlantic using a Boeing 787, successfully made its journey from London Heathrow to New York’s JFK. This was another trial in a series being conducted to test the safety and efficiency of Sustainable Aviation Fuel (SAF) which is said to reduce aircraft emissions by a whopping 70%. Critics say the reduction in emissions still doesn’t shift the bigger picture of aviation’s climate impact but we think any step in the right direction is a good step.

What do you think? Would you board an aircraft fueled by SAF?

More Environmentally Friendly News 🌱

With our increased dependence on technology, the demand for electricity in the U.S. is growing owing to Electric Vehicles, data centers, air conditioning, and more. In good news, research shows that everyday electronics can soon be used as virtual power plants to give power back to the grid at times when supply is low but demand is high.

America is currently home to an estimated 30 to 60 gigawatts of these virtual power plants, most of them factories and other industrial clients. But if you own an EV, solar panels, or batteries, you can soon become a virtual power plant too.

Here’s an example of how it would ideally work: If homeowners can charge their batteries using their rooftop solar panels during the day when it is the sunniest, they can then discharge this energy back into the grid at night when the demand for electricity is higher but supply is low. While still in the testing phases, this could really help us save more energy and maybe prolong the end of the world by a few years longer.

MONEY MYTH OF THE DAY

“Investing is Only for the Wealthy”

Some people think that investing is something only rich people can do, like a VIP club with a high entry fee. But that's not true at all! Investing is like planting seeds for your money to grow, and anyone, no matter how much money they have, can start doing it. You don't need a lot to begin – even a small amount can grow over time.

Many investment options, like index funds and robo-advisors, allow people with modest incomes to start investing with relatively small amounts of money. Consistent, long-term investing can lead to wealth accumulation. It's not about being in a special club – it's about making your money work for you and growing over time, just like a tiny seed turning into a big, strong plant.

If you want to learn more about investing, check out my Beginner’s Guide To The Stock Market here.

VIDEOS YOU MAY HAVE MISSED THIS WEEK

Here are the top videos you loved the most this week. Which one was your favorite?