Common Cents Finance

it’s time to end financial illiteracy

[Common Cents Finance @commoncentsfina]

In the US, 40% of Americans are unable to cover a $400 emergency expense

In other words, a significant amount of Americans are one emergency away from complete financial ruin

To prevent this, you should create an #emergencyfund

Read to learn how: https://t.co/UaZHovZyse

[Common Cents Finance @commoncentsfina]

With these spending habits, Americans are directly contributing to the success of the US economy without benefiting from it. To learn more about spending habits, read here: https://t.co/yVnuDdq9dU

[Common Cents Finance @commoncentsfina]

Your spending habits might be worse than you think.
Here are 9 alarming statistics about American spending habits:

[Common Cents Finance @commoncentsfina]

9. High rates of consumption often come at the expense of personal savings. 71% of adults claim that they do not have enough savings to cover more than 6 months worth of expenses. 40% of American adults would be unable to cover a $400 emergency expense.

[Common Cents Finance @commoncentsfina]

“Being poor is not having too little, it is wanting more.” -Seneca

[Common Cents Finance @commoncentsfina]

Avg yield of a savings account: 0.06%

Avg rate of inflation: 2.0%

0.06% - 2.0% = 1.94%

That’s how much value your money loses annually in a savings account

[Common Cents Finance @commoncentsfina]

When planning, remember that you require less income in retirement than you did pre-retirement

Here are a few reasons why:

- You’ll be in a lower tax bracket

- You may have downsized and have cheaper housing payments

- You don’t need to save for retirement anymore

[Common Cents Finance @commoncentsfina]

It’s a myth that investing is a difficult process.

With modern advances, investing is the easiest it has ever been to start and continue.

[Elon Musk @elonmusk]

nice

[Common Cents Finance @commoncentsfina]

Unless it generates cash flow, a primary residence is not an investment.

It is usually very illiquid and comes with numerous recurring fees and bills.

It’s easy to be house-rich but life-poor, so be aware of this when looking for your first home.

[Common Cents Finance @commoncentsfina]

@from100kto1m Get well soon, man! 🙏🏻

[Common Cents Finance @commoncentsfina]

You want financial freedom?

It doesn’t happen overnight

Like with everything, patience is critical

Have a long-term mindset, and things fall into place

[Common Cents Finance @commoncentsfina]

It’s only a loss if you sell

[Morning Brew ☕️ @MorningBrew]

Only people who lost money today can like this tweet.