✏️🍎 *This* career path could be the key to lasting brain power

Stat Of The Day

62%

That’s the percentage of U.S. consumers who now live paycheck to paycheck. And, a bigger salary doesn’t make people immune to money struggles. According to a new study from PYMNTS, 48% of consumers earning more than $100,000 annually say they are living paycheck to paycheck.

The Financial Risks That Are Keeping Us Up At Night — And How To Deal With Them

Together with

Is financial risk keeping you up at night — or do you barely even blink when the markets take a tumble? According to The 2023 State of Women survey from HerMoney Media and Principal Financial Group, our relationship with risk is not only complex, but women are split on their perception of it: 12% of women describe themselves as risk-averse, 59% believe they are risk-aware, and 30% say they are risk-accepting. The truth is that women have long been more risk-averse than men when it comes to investing — and this is because women typically try to figure out what’s going to go wrong before they invest, explains Seema Shah, chief global strategist at Principal Asset Management. "As humans, we have an inevitable tendency to focus on the negatives, and for women there is that tendency to worry a little bit more," Shah says.

So how should we be thinking about risk in our financial lives — and how can we start approaching it with the appropriate perspective? We break it down here.

This Week In Your Wallet

Record numbers of people are launching small businesses and women are coming on strong. "More than 5 million applications were filed in 2021 and 2022 and a record 5.5 million new business applications were filed in 2023," writes Mae Anderson for the AP. A new survey shows that 49% of entrepreneur club newbies are women. That’s up from 2019, when just 29% of new business owners were female. Statistics show, too, that many ventures are launched as side hustles. "Forty-four percent of entrepreneurs who started a new business in 2023 did so while working another job, either part-time or full-time, up from 27% in 2022," reports the AP.

The key to lasting brain power could be your career. According to new research, having a job that’s "routine" ups the chances of experiencing cognitive decline by 66% and dementia by 37% after the age of 70. What’s preferable? "An occupation that requires more complex thinking [shows up] as a way to maintain memory and thinking in old age," the study’s lead author Dr. Trine Edwin, a researcher at Oslo University Hospital in Norway told CNN. "The workplace is really important in promoting cognitive health." So what careers are the best brain boosters? Lawyers, doctors, accountants, technical engineers and people in public service all showed up in the survey results, "but the most common occupation was teaching," Edwin tells CNN. "Teachers have a lot of interaction with students and parents and have to explain and analyze information. It’s not so routine-oriented."

BRB: That’s the message more people are giving their streaming services. "More than 29 million [people] — about a quarter of domestic paying streaming subscribers — have canceled three or more services over the last two years, according to Antenna, a subscription research firm," reports The New York Times. Most of those viewers aren’t gone forever though. A third of them resubscribed to the canceled service within six months (likely after finding something new to watch on the platform). Alicia Bianchi, a 38-year-old lawyer in Michigan has been working on shortening her list of streaming services. As she tells the NYT, she’ll probably let go of Max once she’s done watching "The Regime" (which gets two thumbs up from us, BTW). "I’m able to turn them off so easily now, it’s like why spend the money on something that I’m not using?" Bianchi said.

Things That Save You Time

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Taking to the friendly skies soon? Here’s an ah-may- zing tip from a former airline employee. On the morning of your flight, text yourself your airline code and flight number. That text will become a link you can click to get information about your flight throughout the day. The best part? It’s all updated in real-time. No more staring at airport screens for you, you jet-setter.

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Americans check their phones a whopping 144 times a day. Here are the best ways to stop the scroll and take back your precious time.

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Expert organizers agree: The new and most efficient way to declutter any space (from your entire house to that junk drawer in the kitchen) is by using the "Core 4 Method." It breaks the process into four steps: Clearing Out, Categorizing, Cutting Out and Containing. Get all the details, here.

Making The Mundane Meaningful With Michael Norton

"Rituals are a way to insert emotion and meaning into the things that we’re doing and they can push us in ways that just executing mindless habits sometimes don’t."

Think, for a second, about everything you do before you head to the gym or go out for a run. Do you wear special running shoes? How do you tie them? Do you give yourself a pep talk? Dr. Michael Norton, Professor of Business Administration at Harvard Business School, says while working out at a certain time of day may be a habit, all the little things we do to get ready are rituals, and paying more attention to them can transform our lives — financially and in countless other ways.

In his new book, The Ritual Effect: From Habit to Ritual, Harness The Surprising Power of Everyday Actions, Dr. Norton argues that by setting up a specific environment (for example, lighting candles or putting on jazz) when we do things typically considered mundane, like paying monthly bills, we’re creating rituals around our finances and making them feel more like something we enjoy doing. As Dr. Norton tells host Jean Chatzky on the HerMoney Podcast*, some habits, like paying our bills, are "a little bit dry and cold and kind of automatic. But rituals are a way to insert emotion and meaning into the things that we’re doing and they can push us in ways that just executing mindless habits sometimes don’t."

Rituals can also help us get through challenging situations. For example, giving a big presentation at work or asking your boss for a raise. Learn how, here.

Listen Now

The HerMoney Podcast is made possible by Edelman Financial Engines.

Ask Jean

Emily writes: We have some savings in the bank and are looking into a 6-month CD. I feel like I’m missing something; 5% back guaranteed? What’s the catch? Any advice on questions I should be asking to make sure I’m making a good decision with this?

Hi Emily — I can understand why you feel this way. After all, short-term interest rates hit low after low starting with the Great Recession, ticking up a couple of points from 2015 to 2018, then reduced to zero for two years at the start of the pandemic. Then, in its efforts to moderate the burst of inflation that came on in the aftermath of the pandemic, the Fed raised interest rates 11 times from March 2022 to July 2023 (the fastest bout of hiking in history). That’s where we find ourselves today, with the target rate for short-term interest rates set is 5.25% to 5.5%. So, yes, you can get 5% guaranteed and not just in CDs but also some high-yield savings accounts and 1-year Treasuries.

So, what’s the catch? The catch with a CD is always the same — if you need to pull your money out before the CD comes due, you’ll pay a penalty. It’s typically the last three months' interest. The other factor (not a catch exactly) is that the Fed is supposed to start lowering interest rates at some point this year. The stock market was expecting three reductions beginning in June, but with the hotter-than-expected March inflation report, the timing is being pushed down the road with maybe two reductions total. I raise this because by locking your money up in say a one-year CD, you’ll continue to get that 5% rate for the full year. If, instead, you put the money into a HYSA, as soon as rates overall fall the rate you’re earning will fall as well. Right now, it might be a smart move to lock up your money for as long as you’re able. You can capture a 5% return on some 18-month CDs. If you opt for a two-year term, the rates are closer to 4.8%. As always, it depends on what and when you’ll need to use the money.

Submit your questions to Jean here.

More For You To ♥

🌱 Starr Edwards launched Bitchin’ Sauce with just $200 and a used Vitamix. Today it’s a $50 million business. Learn how she went from the farmers market to the aisles of Whole Foods on the How She Does It podcast.

💕 Calling all mothers and daughters! Are you navigating the twists and turns of financial planning together? We’re looking for mother-daughter duos to join Jean on the HerMoney Podcast to ask their money questions. Have one? Reach out here and let us know. If your question is selected, you’ll win a copy of How To Money!

🙂 Let’s talk retirement, shall we? Did you know that women are more likely to outlive their retirement savings than men are? That’s why having a consistent income—a paycheck for life in addition to Social Security—can be a real game-changer. It’s why Gainbridge® created ParityFlex™, a multi-year guaranteed annuity that caters to women’s unique retirement needs. Learn more here.**

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*The HerMoney podcast is proudly sponsored by Edelman Financial Engines. Unlock your wealth potential with our sophisticated wealth planning. Continue your journey at EdelmanFinancialEngines.com. Sponsored by Edelman Financial Engines – Modern wealth planning. All advisory services offered through Financial Engines Advisors L.L.C. (FEA), a federally registered investment advisor. Results are not guaranteed. AM3421374.

HerMoney is not a client, agent, representative or affiliate of EFE.Edelman Financial Engines ("EFE") is a sponsor of the "HerMoney with Jean Chatzky Podcast," created by HerMoney Media. Inc. ("HerMoney") and provides cash compensation to HerMoney Media. HerMoney receives a sponsorship fee from Edelman Financial Engines depending on the number of podcast downloads, as measured by the end of the calendar year. The sponsorship fee is paid on a quarterly basis each year. In turn, HerMoney also provides promotional deliverables regarding EFE on the HerMoney podcast, newsletter, and social media channels. Due to this sponsorship arrangement, HerMoney has an incentive to endorse EFE and its services.

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