TL;DR

• The average auto loan hits $33,519

• Why does everyone feel behind financially (when they’re not)

• The typical worker has $955 saved for retirement

• Exclusive: The most underrated player flying under everyone’s radar

Money in the News

Why Your Car is Crowding Out Your Future

A new report shows that total auto debt in the U.S. has surged to a staggering $1.68 trillion.

For context, this is a 37% jump since 2018.

About 86 million Americans have auto loans now, which is just under 1/3 of all adults in the country.

But the crazy part is the average loan is $33,519. For perspective, I never recommend getting more than a 3-year loan. If you got a 3-year loan at 5% that would end up being a $1005/mo car payment.

But most people get 72-month loans which drops this down to $540/mo. And then at the end of the 72 months, maybe they drive it 6 more months and trade it in for their next 72-month loan.

If this is you, be unhinged.

• Drop down to one family car if you have two

• Sell your beloved car for a paid off $7k car that runs

• Refuse to get a loan beyond 3 years no matter how painful that payment looks

Or toss $540/mo away like a bozo and complain that the economy is hard and you have no options.

Over the course of 30 years, it will only cost you $1.2m in retirement savings.

Rice and Beans Don’t Have To Suck!

When you boil some white rice and toss a can of beans on it, guess what, it sucks. But when you make it with love, it can be one of the greatest entrees (I swear)!

I followed this recipe on YouTube ($1.70) and boom, chef’s kiss.

Money in Real Life

The Comparison Trap (You’re not behind)

Almost ever day I feel financially behind. And I’m not alone, 73% of people in the U.S also feel behind.

How is it that everyone can somehow be behind?

Especially when your bills are paid, and your savings are growing.

Apparently, this is all the result of our "Social Clock".

A cultural timeline that dictates when we should hit certain milestones: buying a house by 30, a promotion by 35, or a comfortable nest egg by 45.

When we deviate from this "prescribed" schedule, we experience social clock stress, leading to a sense of inadequacy.

Here’s the problem. The social clock is stuck in the 1970s.

Today’s economy is just a litttttle bit different.

• Insane housing costs

• The millennial career swap

• People can’t afford kids

The data tells a much kinder story than our internal critic.

• Under 35: Median net worth is roughly $39,000.

• Ages 35-44: Median sits around $135,600.

• Ages 45-54: Median is approximately $247,200.

If your net worth is anywhere near these figures, you are right in the middle of the pack.

Lately my goal has been to not measure myself against an outdated social clock.

And to instead realize that "enough" actually has more to do with the purpose I can generate in my life.

Life Insurance Doesn’t Have To Cost A Fortune

Term life insurance starts at just $19 a month.

Coverage options range from 10–30 years with up to $3M in coverage on most products.

Money For Parents

The Average American Has Less Than $1k Saved For Retirement

I just came across a report from the National Institute on Retirement Security, and honestly, the numbers are a massive reality check for anyone feeling guilty about their savings.

If you feel like you’re the only one struggling to hit those "ideal" retirement benchmarks, you need to hear this: the median retirement savings for the typical American worker is just $955.

About 56 million Americans don’t even have access to a retirement plan through their jobs and the report basically says that if you don't have a 401(k) at work, you probably aren't saving at all.

It’s not a lack of willpower; it’s a lack of an easy way to save.

If you’re among the millions without an employer plan, the best move is to take matters into your own hands.

That starts with an Individual Retirement Account (IRA).

Even if you can only swing $20 a month, setting up an automated contribution to a Roth or Traditional IRA gets the ball rolling. Personally, I’m a big fan of signing up with Fidelity or Vanguard.

You can open an account and start investing for free.

Because the reality is, if you’re not saving for retirement, between high living costs and the looming uncertainty over Social Security, which could see a 20% cut by 2034, more seniors are "unretiring."

In fact, about 7% of retirees have gone back to work in just the last six months because they needed the cash.

So start with $20/mo and make a goal to increase to $50/mo in 3 months. Then double that in 3 months. And then double that in 6 months.

In a year you’d be comfortably investing $100/mo. 30 years of doing that consistently at least gets you to $150k.

I understand that it is not a luxury lifestyle, but it gives you some extra cushion beyond social security.

That’s all for this week!

Thanks for tuning in and let me know if I can be helpful!