🌄 ETF fees on the rise

+ meme stocks here to stay & money conversations for a healthy relationship ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

July 20, 2021 View online | Sign up TOGETHER WITH Good day. Can you guess how much the US collectively spends a year on electricity that it's not really using? a) $6 billion, b) $13 billion, c) $19 billion. Check out the answer in the "Trending" section below.  Have ETFs fees hit rock bottom? Just a trend, or are meme stocks here to stay? Have these money conversations if you want a healthy relationship

INVESTING Have ETFs fees hit rock bottom? The finance industry thrives on the creativity of its aristocrats. We live for creating countless forms of investment vehicles that hold any number of different underlying equities within them, and it's almost become like an art form of sorts, or a competition to see whether iShares can paint a prettier ETF than Vanguard.  All of these investment-oriented creations share one thing in common though: the goal to make a profit both for its investors and its curators. Most actively managed funds cost money to operate, even if it's just administrative-type expenses.  This cost has been translated to investors as what's known as an expense ratio, and although we've been in a bit of a low-priced goldilocks zone for this rate over the last decade, trends indicate that a reversal could be underway. What is an expense ratio? An expense ratio is a fee charged annually to investors of a fund. Think of it as an upkeep fee for maintaining your investments, and the more actively managed it is, the higher the fee is likely to be. Take Vanguard's very passive $VOO fund that tracks the S&P 500 with an expense ratio of just 0.03%, and compare that with the more active funds like $MINT and $ARKK that have fees 12-25x higher at 0.36% and 0.75%, respectively.  That Vanguard ETF will run you $3 for every $10,000 invested, whereas Ark's fund will cost you $75. So what's changed? Some of the most popular ETFs on the market have expense ratios of less than one-tenth of a percentage point, and some are even sitting at 0.00% like $SFY. That's great for us as investors, but probably not so ideal or sustainable for the brokerage firms in the long-term as market conditions fluctuate.  This year alone, investors have already allotted over $559 billion into ETFs, which is almost double the $229 billion we'd seen at this point last year. According to Adam Smith and his very popular invisible hand, when demand rises, prices follow, especially if supply lags behind.  With an obvious rise in demand and an exponential increase in new investors, the need for fund managers to be competitive and extremely low-cost has decreased, and we've begun to see the expense ratios stop falling for the first time in a long time.  Many industry professionals think that the race to the bottom on ETF fees has come to a close and that eventually, there's nowhere to go but up.  Take this to go There's no need to panic, expense ratios usually take months or years to move. And even if they do begin to rise— unless we see an astronomical and sudden uptick in expense ratios—this shouldn't be detrimental to your investment strategy, whether it's long or short-game-focused. If anything, take this update with a grain of salt and use it to glean some more insight into expense ratios and how the interior of this industry works, and maybe shop around for some alternatives too while you do that math. ETF Investing: Getting Started 5 mins

INVESTING Just a trend, or are meme stocks here to stay? If you look at it from a bigger perspective, everything is a trend. Even the Roman Empire was a trend too, but just like...a really long one that wanted to control everything from Mesopotamia to Spain. You can Google that later.  Meme stocks though, are we ever going to grow tired of them? After being introduced to us under the guise of "overthrowing the short-sellers" back in January, this trend has endured a lot of pain and choppy waters in the market ever since but nevertheless seems to still be alive. What's the idea? A collective belief in something can bring it to life, and meme stocks, just like money, are a result of a belief. Frank Durgin is responsible for formalizing this notion by way of what he called the "Tinkerbell Effect" which serves to describe things that exist because, well, people believe that they do.  Where there's a will, there's a way, and that couldn't be more true than with meme stocks. Qualitatively speaking, there have been at least 6-10 different stocks that could be classified as "meme stocks" that have gone viral, and likely many more that were scouted out to a lesser degree. Five of these stocks have combined for returns of 70x from their valley to their peak in 2021 alone, with two of them clocking returns over 20x on their own ($GME, $AMC). While this is nothing unheard of for the derivatives or OTC markets by any means, it's unprecedented and abnormal for your regular Nasdaq companies that are questionable in value at best. So are they here to stay? In short, probably, but it may not be $GME to the moon all the time. Meme stocks have created a new kind of subculture within finance that was relegated to lurking in the corners of the room before, whereas now they're front and center.  This is a new, unorthodox strategy that will have varying degrees of returns, both positive and negative. Nevertheless, with the great migration of retail traders into the world of investing over this last year, meme stocks are probably here to stay... in some form or another.

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MONEY & RELATIONSHIPS Have these money conversations if you want a healthy relationship We like to think that love comes first, and money falls in line as a secondary priority. While this is a great sentiment and an honorable basis to start with, finances are still important for maintaining a long-term healthy relationship with your partner.  In other words, it may not be the reason your partner left you for the college experience, but it is still one of the leading factors of divorce in the country today. Here are a few financial things you should discuss openly with each other. Talk about debt: Anyone you could end up being with for the foreseeable future should probably be aware of how much debt you have in your name, and anyone who makes you uncomfortable being transparent about that could be a red flag. A study done in 2019 showed that 4/10 student loan borrowers said their debt had an impact on their relationship, and it's easy to understand why.  Talk about your credit: Learning about your partner's credit history is kind of like knowing their life story,  financially speaking. A credit score can tell you a lot about someone's money habits, and whether or not they've responsibly managed their debts in the past. Don't break up with them for having a credit score of 580, just talk about it.  Discuss your financial goals and money philosophy: This is perhaps the biggest one, because the overarching maxims and perspectives that are interwoven into you and your partner's philosophies about life and money will play a role in every financial decision made. This is a foundational point in financial health, but beliefs can also change and are malleable, so always give them a chance as long as they're not dogmatic about something you feel uncomfortable with, like taking out HELOCs to pay for vacations...

ASHU'S CORPORATE COLOR Today's Movers & Shakers Nasdaq (+1%) after the exchange operator decided to spin out its private markets division in partnership with Citi, Morgan Stanley and Goldman Sachs Halliburton (+2%) after the firm posted higher than expected profits as oil rebounded IBM (+3.5%) as the firm topped revenue and profit estimates Cardinal Health (+4.5%), McKesson (+5%) and J&J (0.5%) as a result of a potential $26 bn opioid settlement between the firms and US states Comcast and ViacomCBS (+1.3%) are higher on reports that the two media firms are thinking of a streaming partnership Crown Holdings (+4%), a packaging maker, beat the street on earnings and revenue numbers This commentary is as of 9:02 am EDT.

✨ TRENDING ON FINNY & BEYOND ANSWER: the US spends $19 billion a year for electricity it's not really using. Unplug these appliances that hike up your electricity bill (Yahoo Finance) This great freebie from Google stops annoying robocalls and gives you a second phone number(Fox) Finny lesson of the day. Speaking of saving on bills, perhaps you'll learn a new tip or two to lower your energy bill by taking this quick quiz:  Lower Your Energy Bill 5 mins

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Unsubscribe or change preferences Finny is a personal finance education start-up offering free, game-based personalized financial education, a supportive discussion forum, and simple stock and fund tools (aka Finnyvest).  Our mission is to make learning about all things money fun and easy!  The Gist is Finny's newsletter to our community members who are looking to make and save more money, protect their finances and be their own bosses! Finny does not offer investment or stock advice. The Gist is sent twice a week (Tues & Thurs). The editorial team: Austin Payne and Chihee Kim. Thanks to Ashu Singh for Today's Movers & Shakers. *Sponsors or advertisers offer unique consumer services.  We're thankful for their sponsorship to enable Finny to offer free financial education. Here's our advertiser disclosure.  If you have any feedback for us or are interested in sponsoring The Gist, please send us an email to feedback@askfinny.com. Copyright © Finny 2021. All rights reserved. 736 Paloma Ave, Burlingame CA 94010

🏠 Building your dream home

+ closing global tax loopholes ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

July 15, 2021 View online | Sign up TOGETHER WITH Happy Thursday.  Let's get right to the personal finance topics for today. Closing loopholes? A proposed global minimum tax Building your dream home might be more like a nightmare Is emergency money dead right now?

ECONOMY Closing loopholes? A proposed global minimum tax & what it could mean for us Taxes. The right way to do it will be debated for centuries to come, and will probably never be optimized for everyone. We won't sit here and philosophize or labor over the jurisprudence behind the tax code though, we just want to be informed and best optimize your personal finances in light of any situation.  That being our prerogative, we now turn our attention toward the latest proposed change to the tax code, a global minimum tax.  A global minimum tax is something that's been discussed for years now, and in this context, the premises are simple. To reduce the levels of inequitable taxes for multinational corporations, discourage the strategic movement of business to countries with a more favorable corporate tax situation, and ensure US companies are paying the minimum rate on foreign profits. Yeah okay, maybe not that simple. So now, things are happening We're living in an era where everything is becoming increasingly interconnected and globalized, more and more so each year. Multinational corporations that do business and generate revenue across the globe have been a thing for centuries, but now with the advent of the internet and technology, it's become easier than ever to be a globalist company.  The proposed problem with this though is that we've been in the midst of what Treasury Secretary Janet Yellen calls the "race to the bottom" in terms of corporate tax rates, as countries attempt to lure in companies by treating their capital well, enter lower taxes.  The Organization for Economic Cooperation and Development (OECD) has been working towards this change for years, and things are seemingly starting to come together with the newly proposed 15% global tax rate, applicable to all corporations that fit the IRS's criteria. Sounds bureaucratic, how does this affect you? The odds of this being implemented are unknown for now: Congress is split down the middle, and almost all bills eventually become a battle of partisanship in one way or another. Some representatives have already spoken out against the proposition, so no change is imminent.  Some of the market leaders could be hit hardest: Many multinational companies in the areas of information-tech and communications may see double-digit implications on their revenues as they rake in a large portion of their takings in countries that are home to a lower effective tax rate.  It could certainly impact your investments: A global minimum tax would certainly place more of a burden on foreign direct investment, and investment in foreign multinational corporations in general. Whether the long-term impact is negative or not is unknowable, but it's overwhelmingly likely that investor sentiment could be negatively swayed.

REAL ESTATE Building your dream home might be more like a nightmare The homeownership rate in the US presently sits at about 65%, and most of those people didn't build their homes themselves. While the data is hard to come by, we know from rudimentary and first-hand experience that most home sales take place between private parties and that homes were either built by someone else or a contractor in the business of doing just that.  Not only is building a home a stressful and often time-consuming process that most first-time homebuyers don't want to deal with, but now it's become more expensive than it already was. Fire sale, but because the commodities are hot The price for a ton of copper has risen from around $4,800 in early 2020 to about $10,000 as of early June 2021. Concrete has suffered mildly, and the cost of lumber is up over $1,000 per 1k board feet within the last year, but it's still not too expensive for Ben Shapiro.  The costs of everything from paint due to the February snowstorm in Texas, PVC pipes due to more shortages, and anything and everything that involves wood or concrete, have been impacted over the last year and a half as a result. Building a home or not, the costs will likely be passed onto the buyer if they weren't incurred firsthand. How the heck do I calculate the cost? According to Realtor.com, the median cost of building your own house is $289,415, which is about $66,415 more than the median price you could buy one at. "But wait, Finny, Bankrate.com said the average cost of an existing home is $309,800, and building one would be $7,000 cheaper for me—at just $302,817." Good, now you understand the value of the phrase "data is subject to its inputs, everything is situational, and ultimately nobody knows." It depends on how much land you're buying, where the land is, how big the house is, who you hire to build it, what you want as your kitchen countertops, and maybe if it rains while it's pouring... your foundation too. Ultimately, it's a personal choice If you love the thrill of building things from scratch and have the temperament and patience to deal with the inevitable unknowns that seem to arise in every home building situation you've seen on HGTV, building your dream home from the bottom up may be a great life project for you. And for everyone else out there, now might be a good moment to lay low.

SPONSORED BY HAVEN LIFE Term life insurance at a price you can afford Whatever you think term life insurance costs... it's probably less. Haven Life Insurance Agency offers an easy way to buy affordable term life insurance coverage online. A 35-year old female in excellent health can purchase a $500,000, 20-year Haven Term policy for around $18/mo. That's peace of mind for the price of a large cheese pizza. Get a free quote. *See disclosures below.

SAVING Is emergency money dead right now? Image source: Time Having a fully furnished emergency fund that might even have way more money than you'd really ever need in the case of an emergency can feel really great. It's like an extra thick layer of protection against, well, life. Accomplishing this deserves praise, but also warrants evaluating our alternatives.  Keeping excess emergency money can actually come at a cost, and usually an opportunity-related one. We know that our money's value is slowly being eroded away just sitting in the bank, but that's even more of a risk now due to inflation. There's always a balance Here are some tips to find it. Let your money grow: They say that if you love it you can let it go, but we think "grow" works as a good substitute when talking about money. If you've got excess money in savings, put some of it away into a Roth IRA so it can grow bigger instead of growing stagnant, while also avoiding the need to pay taxes on it later.  Pay down your mortgage: If you've achieved this level of cash and still have a mortgage, good job, but also... work on getting rid of that mortgage. Pay down a lump sum of your mortgage and see if you're eligible to have it recast by your lender, who can then re amortize your loan, resulting in lesser monthly payments for you, and less money spent on interest over the life of the mortgage.  Contribute to an HSA: HSA stands for a health savings account, and it's a valuable way of paying a little less in taxes each year while also saving money for health-related expenses that aren't covered by your qualifying high deductible health plan (HDHP). You pay less in taxes thanks to the triple tax benefit of HSAs. 📚 Want to learn more about an HSA? If so, take this FUNdamental 7-minute lesson on it: HSA FUNdamentals 7 mins

ASHU'S CORPORATE COLOR Today's Movers & Shakers Morgan Stanley (-1.5%) in premarket despite beating on revenues and profits; although MS has made great strides in the wealth segment, it still relies a lot on trading and that is where investors see weakness (especially in FICC) AIG (+5.5%) in early trading after the firm decided to sell a 9.9% stake in its life coinsurance and retirement services unit to Blackstone (+2.5%) AMC (-6.5%) as the reality sets in on this meme stock on top of a 15% drop yesterday; Gamestop is also down; Virgin Galactic is also descending NortonLifeLock (-3%) is rumored to be buying Avast, a rival in the consumer cybersecurity space J&J (-1%) is recalling some batches of Neutrogena and Aveeno branded products as they are found to have traces of benzene, a carcinogenic substance GM issued a warning to owners of Chevy Bolts to NOT charge them unattended and park them outside while charging Netflix (+2%) as the firm expands to electronic games TSMC is up 2% and AMD +1%; TSMC's sales are expanding and said that the chip shortage will ease later this year This commentary is as of 9:25 am EDT.

✨ TRENDING ON FINNY & BEYOND In 2030, you won't own any gadgets (Gizmodo) Google has been recording you – here are three ways to delete your voice history (The US Sun) Finny lesson of the day. For those new to insurance in general and need a little help decoding the jargon, take this lesson in 6-minutes:  Insurance FUNdamentals 6 mins

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Unsubscribe or change preferences Sponsor Disclosures: Sponsored by Haven Life Insurance Agency. Price does not reflect the rate for applicants in CA, DE, FL, ND, NY and SD. Haven Term is a Term Life Insurance Policy (ICC21 Haven Term in certain states, including NC) issued by C.M. Life Insurance Company (C.M. Life), Enfield, CT 06082. In New York (DTC-NY), California (DTC-CA), and other states it is issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001. About Finny: Finny is a personal finance education start-up offering free, game-based personalized financial education, a supportive discussion forum, and simple stock and fund tools (aka Finnyvest).  Our mission is to make learning about all things money fun and easy!  The Gist is Finny's newsletter to our community members who are looking to make and save more money, protect their finances and be their own bosses! Finny does not offer investment or stock advice. The Gist is sent twice a week (Tues & Thurs). The editorial team: Austin Payne and Chihee Kim. Thanks to Ashu Singh for Today's Movers & Shakers. *Sponsors or advertisers offer unique consumer services.  We're thankful for their sponsorship to enable Finny to offer free financial education. Here's our advertiser disclosure.  If you have any feedback for us or are interested in sponsoring The Gist, please send us an email to feedback@askfinny.com. Copyright © Finny 2021. All rights reserved. 736 Paloma Ave, Burlingame CA 94010

🏠 Is your dream home worth it?

+ beware of overdraft fees from your bank ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

July 08, 2021 View online | Sign up TOGETHER WITH Happy Thursday. According to a new survey by PYMNTS and LendingClub, can you take a guess at what percent of Millennials are living paycheck to paycheck? a. 40%, b. 54%, c. 70%. See the answer in the Trending section below. Bidding against big capital for your dream home. The new normal? Beware of overdraft fees Do these 4 things before you invest

HOME OWNERSHIP Bidding against big capital for your dream home. The new normal? Image source: HousingWire Only 38% of Americans under the age of 35 are able to claim the title of homeowner as of 2021—a figure that will likely continue to decline for the near term just as it has for the noteworthy past few years.  Prospective homebuyers are facing a somewhat unprecedented conundrum in the housing market, one that includes variables ranging from hyper home inflation all the way to a growing debate around wages, or maybe even... a fund snatching up your dream property?  Business is business D.R. Horton, a massive American construction company big enough to go public and mount a 33 billion dollar market cap, recently built an entire subdivision consisting of 124 properties in Conroe, Texas. They rented the homes out to tenants and then proceeded to put the whole subdivision up for auction, where it was swiftly snatched up by a real estate platform for what D.R. Horton called "50% over gross margin." The subdivision was bought by a real estate investment company you may have heard of: Fundrise. The company is privately held and manages over a billion dollars of property on behalf of more than 150,000 individual investors.  The whole lot sold for $32 billion. The median home price in Conroe Texas is about $319,000, meaning Fundrise paid near retail, with a slight discount, to take all these properties under their well-endowed wings. Impacts on homebuyers Is it fair to prospective Millennial homeowners that in most neighborhoods, one out of five homes is purchased by an investor who never moves in, such as Fundrise? Hard to say. Business is business of course, and every local township is a different situation with a different amount of big capital being thrown around.  Housing prices climbed 11% last year alone, and many analysts expect similar digits to come in by the end of 2021. Hyperinflation in the housing market obviously makes it harder for your average citizen to buy a home, and in some cases easier for larger investors simply by way of a crowding-out effect of sorts.  Most of this is of course nothing new. Investors have been investing for decades, and the housing market does sometimes go through these white-hot cycles before regressing to the mean. Jokers in the deck seem to be a nationwide student loan crisis, coupled with a highly competitive job market where it seems that everyone and their dog has a bachelor's degree in something. What can we do? Go about your money from a stoic perspective. We can only control what we can control, and even that sometimes seems questionable. If you dream of owning a home, you can't control the big money wanting to win the game too, or inflation, or the economy, or that something else... you get the gist.  Plan ahead as young as you can and start saving or investing. Our biggest asset as retail buyers is knowledge, consistency, and competency. It may never be an ideal market, but with the right planning and unwavering amounts of persistence, you'll be hard to stop.

BUDGETING & SAVING Beware of overdraft fees Overdraft fees were initially built on the basis of convenience, with the banks viewed as extending a helping hand to account holders who were in need of a spot. Since then though, the popularity and price of these pesty fees have grown, becoming a controversial and ethical talking point in the banking community.  The controversy isn't in the fact that the bank is charging users a fee for covering the difference, it's the fee to overdraft ratio. An account dipping $2 into the negative can easily accrue a $34 overdraft fee (the national average), and these instances can add up if account holders' direct deposits don't align with their bills sometimes.  In 2020 alone, JPMorgan Chase made over $1.5 billion in overdraft fees alone, which, although less than a percentile of their overall revenue as a whole, is still one and a half-billion dollars. A simple fix: Just be aware Monitor your accounts & signup for account balance alerts. We don't want to blame the account holder in every case, because sometimes things happen, and an overdraft occurs. That being said, it's certain that a good deal of overdraft fees can be chalked up to simple negligence that could be solved by checking your account balances. If that doesn't work, set up an automatic reminder from your financial institution to let you know if your balance falls below a set dollar amount. Move money & create a cash buffer. This is why savings are so important. If you see that your checking balance will be insufficient to cover a scheduled payment, simply move enough over from your savings account to cover it in that case. Intrabank transfers happen immediately, and there'll be no delay in having the money available. When you move that money over, transfer enough to serve as a cushion for you. Tip: treat $50 or $100 as zero.  Switch to a financial institution that doesn't charge overdraft fees. More and more banks and banking services, such as Aspiration, Ally Bank, Schwab, Capital One 360 Banking and Discover to name a few, don't charge the controversial overdraft fee. If you're consistently getting burned by overdraft fees, it's probably a smart move to switch banks asap.

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INVESTING Things to check-off before you invest Investing has become more accessible than ever. Essentially anyone with internet access can hop online, set up a free brokerage account, and start making trades without even having to worry about fees. This is great, well, for the most part anyway.  This ease of access can also lend itself to some irresponsible or unpreparedness amongst newbie investors, something that could ironically end up being detrimental to their financial health when all they were trying to do was improve it. To prevent mishaps like this, all it takes is a little bit of preparation to get going on the right path. 4 keys before investing Get all your ducks in a row. Setting your priorities straight and having a correct order of operations set out is critical to making sound decisions. Knowing your debts, if any, and what order you're paying them in, knowing your income, budgeting for expenses, saving and finally, setting your goals, all come before venturing into investing. Think about budgeting if you haven't already, such as with Tiller or YNAB.  Have an emergency fund in place. Investing for your long-term future is important, but having enough money for tomorrow is equally if not more important. Most financial coaches will recommend you save at least 3-6 months of expenses in case of an emergency. Understand your comfort zone in taking on risk. Let's be real: investing in anything takes some level of risk. Evaluating what level of risk you're willing to take matters.  Educate yourself to make decisions. Do your own research to understand market trends. Even if you have an investment advisor, it's always a good idea to get yourself educated on investing. It's the best way to empower yourself.  💡 If you're new to investing, learn about investing right here on Finny. Select "investing" as a preferred learning category and we create a learning path just for you. All lessons are quiz-based and bite-sized!

ASHU'S CORPORATE COLOR Today's Movers & Shakers Alphabet is down 3% partially due to states bringing a new antitrust suit against Google; Apple is down 2% and Tesla is down 2% (its sales are taking a hit) Meme stocks: AMC -10%, GameStop -6.5%, and Newegg Commerce down 21% Bank stocks are taking a hit as the yields slide and concerns about the pace of economic growth. JPM (-2.6%) and BAC (-3%) Chip and processor manufacturers are also sliding (regardless of the shortage) because of concerns about economic growth; AMD and Nvidia are down 2% Airlines stocks are down with UAL diving 3.4% and AAL and Delta are also slipping as international travel remains light as a result of policies such as quarantines. Oil stocks are down as crude slips; Exxon -1.8% and Occidental -3%  Charles Schwab (-3%) after GS said that the stock has limited upside and downgraded the stock to neutral (from buy) Didi is down another 6% in premarket as the ride-sharing firm piles on losses. As Chinese regulators announced an investigation into data security concerns at Didi, a Chinese exercise app called Keep, LinkDoc Technology, and Ximalaya (a podcasting platform) pulled their IPOs. China has said that it will restrict the listing of Chinese firms in the US essentially threatening $2 trillion worth of capital. COIN, the crypto exchange, slides by 5% as bitcoin falls 6%; Bloomberg says that the "bitcoin winter is coming" This commentary is as of 9:21 am EDT.

✨ TRENDING ON FINNY & BEYOND ANSWER. 70% of Millennials, 40% of baby boomers & seniors, and 54% across all respondents are living paycheck-to-paycheck (Business Insider) A banking app has been suddenly closing accounts, sometimes not returning customers' money (ProPublica) Finny lesson of the day. Before bidding on that dream home of yours, let's refresh on a few things to know about buying vs. renting to avoid some common mistakes: Buy vs Rent? 5 mins

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Unsubscribe or change preferences Finny is a personal finance education start-up offering free, game-based personalized financial education, a supportive discussion forum, and simple stock and fund tools (aka Finnyvest).  Our mission is to make learning about all things money fun and easy!  The Gist is Finny's newsletter to our community members who are looking to make and save more money, protect their finances and be their own bosses! Finny does not offer investment or stock advice. The Gist is sent twice a week (Tues & Thurs). The editorial team: Austin Payne and Chihee Kim. Thanks to Ashu Singh for Today's Movers & Shakers. *Sponsors or advertisers offer unique consumer services.  We're thankful for their sponsorship to enable Finny to offer free financial education. Here's our advertiser disclosure.  If you have any feedback for us or are interested in sponsoring The Gist, please send us an email to feedback@askfinny.com. Copyright © Finny 2021. All rights reserved. 736 Paloma Ave, Burlingame CA 94010