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The combined average U.S. sales tax rate rose for the first time in four years to a 10-year high of 10.1881%, according to a new report.
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Mortgage rates hit a recent low at the end of February but rose sharply at the start of the war with Iran. They are now at their highest level in over a year.
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Consumer finances remain strong, but they are being undermined by high inflation, high interest rates, and exhausted excess saving for some. Hence, bankruptcy filings are showing a deterioration in household finances. A first-quarter increase in filings is seasonally normal as holiday spending takes its toll, and that pattern continued. U.S. courts reported that nonbusiness filings came in 12.9% above their year-ago level after rising 19% the prior quarter. On a quarter-to-quarter basis, filings rose 6.9%. Business filings rose in the quarter, up 1.4% from the fourth quarter. They were up 34.6% from a year earlier as high interest rates took a toll. This compares with a 53.2% increase on a year-ago basis in the prior quarter.
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Is it true that many young professionals don't know how to save money?
I recently had dinner with an old college friend. I was expecting to catch up on friends, family and our careers, but it was clear he wanted some basic financial information.
Knowing I advise young professionals on their finances, he zeroed in on the following questions: "How much should I save, and how do I know if my savings plan is on track?"
SEE MORE Millennials Want a Different Kind of Retirement
Many highly talented and bright young individuals - often earning six figures, receiving an annual bonus and holding stock options - often struggle with how to spend and save their money. My advice is to develop a process that focuses on three fundamental ideas that anyone can use.
Control Savings and Spending by Paying Yourself First
Putting together a budget and tracking spending are useful tools - but they can be tedious and hard to sustain. Instead of starting with expenses, I begin by allocating the desired amounts of money to various savings and investment accounts.
I set up automated contributions to my 401(k) retirement account, Roth Individual Retirement Account (IRA) and after-tax brokerage accounts. Once that money is set aside, I have total peace of mind knowing I can afford to spend what's left and still be on track to hit my financial goals.
If, like me, you make the majority of day-to-day purchases on your credit card, another easy way to spot-check spending is making sure you can pay your credit card bill in full each month without tapping your savings.
Don't get me wrong - developing a detailed budget is a valuable exercise when done periodically. And it's parti
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