At the end of 2025, American households were collectively sitting on $18.8 trillion in aggregate debt, according to the Federal Reserve Bank of New York (1). Meanwhile, 87% of U.S. adults surveyed by Talker Research said the lack of affordability for basic essentials has hit “crisis” levels in America, and nearly half (46%) of these respondents expect the crisis to get worse in 2026 (2). Must Read Simply put, many families are struggling to make ends meet and are borrowing at a staggering pace to plug ...

Americans worried about job security have been getting mixed messages so far this year. With so much job uncertainty in the air, it’s important to be prepared. Here’s a closer look at the current state of layoffs, as well as the one money move everyone should make as layoffs increase. Layoffs in the US The latest Labor Department data revealed better-than-expected job growth in January, but a separate report from ADP found that January was a “lackluster” month for hiring. The one thing for certain is t ...

Instead of “House Emergency Fund,” commenters shared their creative alternatives: “Banana Stand,” “Forbidden Donut,” “Buy the Farm,” and even “OH SH*T!” One parent said their savings bucket for kids is called “TTB” for “Tuition, Therapy, or Bail.”Of course, most people admitted it's coincidence. Appliances age. Roofs wear out. Pets need emergency vet visits. Utilities true up underestimated bills. Homeownership means things will break. When you finally have money set aside, it often gets absorbed by deferre ...

A cost-of-living adjustment, or COLA, is meant to help Social Security benefits keep pace with inflation. But even with modest increases, retirees may still feel the squeeze. In 2026, a 2.8% COLA increased the average monthly retirement check by $56, affecting over 75 million Americans, according to the Social Security Administration (SSA). Early estimates suggest 2027 may bring a similarly small adjustment. If the Senior Citizens League predictions hold, the 2027 COLA could again be 2.8%. And some predic ...

Who doesn’t want to be a little bit richer today than they were yesterday? However, though he may suffer from wealth bias, self-made entrepreneur, money expert and “Shark Tank” star Mark Cuban said getting rich is all relative. He said there are certain things you need to do to put yourself in a position to get rich. If you’re curious, here are Cuban’s nine rules for getting rich. 1. Live Like a Student When you get your first cool job that pays well, it’s not unusual to want to spend more money. In th ...

Core Insights - The article emphasizes the importance of compound interest in building wealth, suggesting that reaching a savings benchmark of $100,000 can significantly enhance financial freedom and investment potential [1][3][5]. Group 1: Importance of Savings - Many families struggle to save six figures due to stagnant wages and rising living costs, highlighting the financial challenges faced by Americans [1]. - Experts suggest that even a savings of $20,000 can unlock the benefits of compound interest, allowing individuals to stop making financial decisions out of fear [2][8]. - The national savings rate was reported at just 3.5% in November 2025, indicating a low level of disposable income among Americans [5]. Group 2: Financial Challenges - A significant portion of Americans lacks emergency savings, with 21% having none and 37% unable to cover an unexpected $400 bill [6]. - The median net worth for Americans in their 20s is only $6,600, which is far below Munger's $100,000 benchmark [7]. Group 3: Strategies for Building Wealth - Setting up a budget and tracking expenses can help individuals reach their savings goals, with tools like Rocket Money simplifying the budgeting process [16][19]. - High-yield accounts, such as the Wealthfront Cash Account, offer competitive interest rates (up to 4.05% APY) and can help grow emergency funds [11][12]. - Investing in low-cost index funds, particularly those tracking the S&P 500, can lead to significant growth over time, with a historical compounded annual growth rate of 10% since 1957 [25][27]. Group 4: Investment Tools - Apps like Acorns can facilitate saving by rounding up purchases and investing the difference, making it easier to reach savings milestones [28][30]. - Wealthfront Cash Account balances are insured by the FDIC, providing security for savers [12].

Building up an emergency fund can be a real struggle and many Americans are unprepared for unexpected expenses. According to a January 2025 U.S. News & World Report survey, 42% of Americans don’t have an emergency fund and 40% couldn’t pay for a $1,000 emergency expense. Many feel like it’s impossible to build up an emergency fund for tomorrow’s possibilities with so many pressing bills that are real and imminent. You don’t necessarily have to save large amounts of money each month to build up your emer ...

Key Takeaways Divorce reshapes your financial life, but revisiting your budget, debt, and savings plans early can help prevent long-term damage to your retirement security. Understanding how assets are divided can help you protect future income and make choices that support long-term stability. Periodic monitoring and small adjustments are key to keeping your retirement plans intact after a major life change. What a Divorce Can Mean for Your Money and Retirement More than 1.8 million Americans di ...

Economic Concerns - Concerns about a potential recession have resurfaced due to higher interest rates, elevated living costs, and ongoing economic uncertainty [2] - While the U.S. economy shows resilience in employment, many households remain cautious about spending due to higher borrowing costs and persistent inflation [2] Financial Preparedness - Preparing finances for economic uncertainty is advisable, with a focus on practical, controllable steps rather than emotional reactions to headlines [3] - Financial planners recommend maintaining an emergency fund covering three to six months of essential expenses to mitigate risks during economic slowdowns [6][9] Budgeting Strategies - Creating a budget is essential for clarity on monthly expenditures, especially with elevated credit card interest rates [4] - The goal of budgeting is awareness, allowing individuals to gain control over their finances [5] Emergency Fund Importance - Strengthening an emergency fund is crucial, with recommendations to start small if the full goal feels overwhelming [6] - Additional income from freelance or gig work can help accelerate savings and provide flexibility [7] Market Behavior - Market volatility tends to increase during economic uncertainty, but historically, stock markets recover before economic data improves [8][9]

Core Insights - The article emphasizes the importance of proactive financial management to navigate unexpected hardships and maintain financial stability Group 1: Retirement Savings - It is recommended to automate savings by contributing at least 10% (preferably 20%) of each paycheck into retirement plans to avoid human error and temptation [2] - Auto-increasing 401(k) contributions annually can help individuals maximize their retirement savings, even if they do not have access to a workplace plan [3] Group 2: Longevity and Income Sources - Individuals should consider their life expectancy when planning for retirement, as having a guaranteed lifetime income source is crucial for financial resilience [4] - Investing in annuities can be a viable option to ensure that individuals do not outlive their nest egg, with options available both within workplace plans and externally [5] Group 3: Emergency Funds - Maintaining an emergency fund with three to six months' worth of expenses is essential for gracefully navigating financial crises [6]