Young and Oldish Money   /     #10-Money Stress, Should I Ignore the News? Rebalancing Portfolio

American Psychological Association (APA) Study Shows Americans Experience Money Stress-Surprised?

According to the Stress in America™Survey;

“While aspects of the U.S. economy have improved, money continues to be a top cause of stress for Americans, according to the new Stress in America™: Paying With Our Health survey released today by the American Psychological Association. According to the survey, parents, younger generations and those living in lower-income households report higher levels of stress than Americans overall, especially when it comes to stress about money.

‘Regardless of the economic climate, money and finances have remained the top stressor since our survey began in 2007. Furthermore, this year’s survey shows that stress related to financial issues could have a significant impact on Americans’ health and well-being,’ according to APA CEO and Executive Vice President Norman B. Anderson, PhD.”

According to the study:

• High and low income level people feel the ‘money stress’.
• Many have skipped visiting doctor due to money worries.
• Money stress impacts your relationships.

We talk about the fact that although the employment levels are up and that, in general, the economy is humming along, people are still stressed about money.

APA found that, money is a big stressor in peoples lives. We brainstorm solutions to this money stress with helpful lifestyle strategies and practices.

Use this data to motivate you to learn about how to handle and grow your money, so you can reduce your stress levels.

Sample a few of our solutions to money stress. Ask yourself:

• What gives you life satisfaction? Think about this and only spend on stuff that matters to you.
• If you don’t have the money now, don’t buy it!

“American Psychological Association Survey Shows Money Stress Weighing on Americans’ Health Nationwide, American Psychological Association“, American Psychological Association.org.

Bonus Content: How to Get Rich Without Winning the Lottery>>>

Should We Ignore Financial News?

Maybe yes and maybe no.

Learn how to discern the noise from the news. Some news is important; what’s going on in the national and global economy is important. What the talking heads on CNBC are chattering about is generally interesting, but not too significant.

The takeaways from this segment are:

• Some news is just chatter.
• Don’t trade stocks on the news.
• Have a plan for your money management.

Some news is important. Bobby and Barbara have a bit of ‘back and forth’ about what news is important and what news isn’t.

Too much financial news may actually increase your money stress. If you’ve got a plan, then don’t be swayed by the financial news.

“A Financial Pundit’s Guide to Financial Pundits“, Money Magazine, by Pat Regniew with source quotes from Joshua Brown, the Reformed Broker.

Rebalance Your Portfolio

Pretty much anything Burton Malkiel writes, I read. He is the famous author of the investing classic, A Random Walk Down Wall Street.

We’re inspired by his Wall Street Journal article, “A 2015 ‘Rebalancing’ Act for Investors” to drill down into the important rebalancing your investment portfolio topic.

What is it? Why to rebalance? and How?

Everyone needs to periodically. Once a year is usually sufficient. Learn why to rebalance and understand that you may earn a greater return with less risk by rebalancing.

We discuss 401k’s too. What if you only have a 401k? Do you rebalance then? Learn how to rebalance with your 401k.

We also talk about the new automated investing platforms as well.In fact, many of the robo-advisors take care of the portfolio rebalancing for you.

Bonus content: Rebalance Your Asset Allocation Guide>>>

Invest and Beat the Pros: Create and Manage a Successful Investment Portfolio is a great resource for simple investing strategies.

Ways to Feel Wealthier

Wealth is more than just money. Yet, smart money practices can not only build financial wealth but also help you to feel wealthier.

Here are some ideas to become wealthier:

• Go Roth (IRA)-Investing in a Roth IRA helps you build wealth for retirement. We talk about whether or not to invest in a Roth IRA or a workplace retirement account? There’s also guidance about what do you do if your employer matches your retirement plan contribution.
• Should you use an online bank to earn a smidgen of extra interest? With interest rates so low we’re always scheming ways to eek out a bit more money out of your cash. We also touch on the bright side of the rock bottom interest rate environment. Bobby talks about buying 30 day Treasury notes to top your bank’s interest rate.
• The U.S. Treasury.gov website is a good site for savers with information on I Bonds, Treasury Inflation Protected Securities (TIPS), and more.
• Get interest checking account online for higher returns – sort of. Does it make sense to go with an online savings account with such paltry interest rates? Find out in this episode.

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(Featured image courtesy of imosaad on Flickr.  Used under Creative Commons license.)

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