3 Things 8-15
08/15/2022 Although MAS is a financial services company, not everything published herein will be about numbers or investing. But no matter the topic, we hope for three things: 1) That you find the time you spend engaged worthwhile. 2) That you’ll reach out to us for help in any of our areas of expertise if something we discuss creates an urging in you to do so. 3) That you’ll share this with somebody new each time you read it. Thing One Your Lunches Are More Expensive Than You Think From visa.com: “…Visa surveyed 2,033 Americans and found that the average spend on lunch in the U.S. is $53 a week or $2,746 a year, and for some, more than $9,000 a year. "Small choices have a big impact,” says Nat Sillin, global head of financial literacy at Visa Inc. “Most people may not realize that they are spending over $50 a week on lunch. Paying attention to what you are spending is essential to financial wellbeing.” Visa's survey also showed that men outspend women on lunch by an average of 60 percent and are more likely to dine out. "Grocery store or gastro pub, don't bust your budget on your midday meal," says Sillin. "Clipping a coupon or choosing a less expensive item can save you hundreds over the course of a year.” .................. If, as the average spender, you started at age 25 and cut your lunch bill in half (from $212 to $106) and invested the difference each month through your working years, you could end up with hundreds of thousands of dollars you weren’t planning on having at retirement. It’s too late for many of us but we likely know people who could benefit from this knowledge. Take the time to share it with them. You’ll be glad you did and so will they.
Thing Two Tell ‘Em To Get The Match While you’re out there sharing good advice with younger people make sure to urge those who have access to a 401k to sign up immediately. And then forcefully advise them to contribute enough to get the full match. Then share with them the following: The typical matching program offered by companies that have a plan (according to Vanguard) is 50% of the first 6%. That means you are GUARANTEED a 50% return on a portion of the money you save in your retirement plan. As an example, let's say you earn $4,500 a month before taxes and you elect to save 6% of it at a company that offers the match described above. You would save $270 of your own money and the company would give you another $135 (50% of $270) automatically. That's a huge return on your savings without investing in a single stock! By the way, by setting aside the original $270, you now have $405 that can be invested (each month) however you'd like (within the investment options provided in your 401k plan). If your company offers a 401k you should take advantage of it by at least setting aside enough of your paycheck each period to get the full match. There’s nowhere else you can go to get that kind of guaranteed return. And once you get money into your 401k, we can help you decide how to invest it if you need help.
Thing Three Just A Thought “Courage is what it takes to stand up and speak. Courage is also what it takes to sit down and listen.” – Winston Churchill