🥱⏰ Why Some People Say 5-9 is the new 9-5

Stat Of The Day

54%

Did you make–and keep–a New Year’s resolution? If so, give yourself a big ‘ol pat on the back. Halfway through the year, only 54% of people who made resolutions stuck to them. According to a recent survey, exercising is the toughest resolution to keep, followed by those having to do with eating healthier and saving more money.

The Biggest Financial Mistakes Women Make In Their 20s, 30s and 40s

It’s only a number, but age makes a difference in so many aspects of life. From career goals to our fashion tastes (our CEO Jean Chatzky just caught a glimpse of herself in the late 80s with a very bad, very big perm and wondered who let her out of the house!) each new decade presents new challenges — and opportunities. And, almost all of them impact how much you’re spending, saving, earning and investing.

This week on HerMoney.com, we’re breaking down the biggest financial hurdles you’re likely to face in your 20s, 30s and 40s and advice on how to handle them. For example, in your 20s, one of the biggest mistakes we see people making is not having a game plan for debt. Unlike some problems that seem to take care of themselves, ignoring debt is a huge mistake and a quick way to end up in financial ruin. It’s also something that, unfortunately, has become more common, as recent numbers show credit card debt among young people is on the rise.

Even though it’s a lot to process when you’re just starting out, Sharon Epperson, a senior personal finance correspondent for CNBC, stresses the importance of creating a plan for paying down debt, fast. "Carrying too much debt and not paying down that debt will impact your credit score," she says. "If you default on a loan it can also ultimately result in major legal and financial implications, which could follow you for years to come."

For more on the financial pitfalls you need to watch out for as you age, click here. And if you need a little extra help to get a debt plan together, check out our upcoming FinanceFixx class, just for young professionals. Get all the deets here (and use code SUMMER20 for 20% off). We kick things off June 11!

This Week In Your Wallet

5-9 is the new 9-5. That’s according to some workers who say those early morning hours (#yawn) are key to productivity and getting ahead at work. "Nothing screams go-getter like a predawn email," writes Callum Borchers for The Wall Street Journal. "Getting stuff done early allows them to clock out midafternoon and still look like stars, even if their routines require Ben Franklin-esque sleep schedules and vats of caffeine." According to the work management platform Asana, in 2024 over 20% of their users fire up their laptops between 5 a.m. and 9 a.m., compared to 19.8% in 2021. "Waking and working ahead of the pack is a common CEO habit, from Apple’s Tim Cook to General Motors’ Mary Barra," notes the WSJ. "Even if your ambitions are less grand than the corner office, starting early could help you stand out for one simple reason: The boss is probably up, too, and taking notice." If you’re a fan of the snooze button, click here for tips from people who are early risers.

Wages are up. Inflation has moderated. The jobless rate is low. By most measures, the economy, under President Biden, is doing well. But as the race for the White House heats up, voters are thinking otherwise. Case in point, the latest approval rating for President Biden, which dropped to its lowest level in nearly two years. "The public’s perception of Biden’s economy has proved remarkably stable—even as prices have moderated, even as stocks have taken off, even as the unemployment rate has remained at historically low levels," writes Annie Lowrey for The Atlantic. She notes that in particular, voters are taking issue with high interest rates and high prices, despite wage growth. "That fits with research showing that voters pay more attention to downturns than to upturns: They seem more apt to punish a party in power if there is a recession than they are to reward a party in power for overseeing a boom."

Amid higher food prices, many people are going into debt to fund trips to the grocery store. That’s according to new research, which shows growing shares of Americans are paying for groceries with credit cards, buy-now-pay-later platforms and savings they had set aside for other needs. For example, numbers show 33.4% of adults pay for groceries using a credit card and pay their balance in full, 20% don’t fully pay the balance, but always make the minimum payment and just over 7% only pay the minimum, which is especially concerning given sky-high interest rates. "When that unused credit limit is there in front of you, sometimes it looks like a lifeline," Bruce McClary, senior vice president at the National Foundation for Credit Counseling tells CNBC. "In some circumstances, that lifeline is really a cinder block."

Things That Save You Time

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Got 15 minutes? Good news–you can squeeze an effective workout in. The New York Times has rounded up the best tips for workouts that offer maximum health benefits for those of us who don’t have a full hour — or even half — to spare.

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Weekends are sacred. Here’s how one HerMoney reader protects hers: "I spread out my household chores to do a little bit every day," says Rachel. "That way, my weekends are reserved for things I actually want to do, instead of being consumed with dreaded tasks."

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Feeling overwhelmed by your to-do list? First, take a deep breath. Then check out these tips from Abby Davisson on how you can become more productive by breaking big goals down into smaller, more manageable tasks and incorporating a few other productivity-boosting hacks along the way, like finding visual ways to mark your progress. For Davisson, that came in the form of a chocolate advent calendar (yes, really!) when she was stressing over a career move.

What It’s Really Like To Own A Basketball Team With Clara Wu Tsai

"One of the things I really want to do is show that women’s professional sports can be profitable."

If you’ve been a longtime listener of Karen Finerman’s How She Does It podcast, then you may know she’s a huge women’s basketball fan. Well, she’s not the only one. Women’s basketball is exploding in popularity, with the WNBA having a record-breaking season last year. One of the women behind momentum is Clara Wu Tsai. She bought the New York Liberty basketball team in 2019 with her husband, and immediately made huge changes to turn it around. Her goals for this year? To win a championship, and show that women’s professional sports can be profitable.

Since Wu Tsai stepped into her new role with the WNBA, viewership has hit record highs. Take Game 4 of the 2023 WNBA Finals between the Las Vegas Aces and the New York Liberty for example. It averaged almost 900,00 viewers, which is the most-watched WNBA Game 4 Finals on record, and an increase of 124% from Game 4 in 2022, according to Sports Business Journal.

"The previous owners for whatever reason, just decided that they didn’t want to invest anymore," Clara Wu Tsai says. "So they moved the team to play in Westchester County Center from Madison Square Garden. After we bought the team, the first thing we did was move the team back to New York City, to Barclays Center, where the Brooklyn Nets play." They then built a state-of-the-art locker room, invested heavily in player health and care, and recruited an incredible championship-winning team.

For more on how Wu Tsai is changing the game when it comes to women’s sports, listen to the latest How She Does It podcast, here.

Listen Now

Ask Jean

Today’s question comes from Julie. She writes: Is a HELOC still tax deductible if it’s used to pay off a high-interest loan? Also, what is the best way to find a HELOC if our bank doesn’t offer them?

Hi Julie — Unfortunately, no. Although the interest on HELOCs — home equity lines of credit —as well as home equity loans, is tax deductible just like mortgage interest as long as it falls within IRS limits (up to $750,000 for married couples filing jointly and singles, up to $375,000 for married filing separately), the HELOC funds must be used to for home purchases or improvements. Additionally, if you want to deduct the funds you have to itemize, which the vast majority of people no longer do.

That said, using a HELOC can be a cost-effective way to pay off a high-interest-rate loan. Right now, HELOC rates are averaging around 10 percent. The average credit card interest rate, for comparison's sake, is almost 25 percent. By using a HELOC to pay off a credit card, you’re pocketing a 15 percent return. But you have to be careful. Back in the early 2000s, when homeowners were using their equity as a modern ATM, one survey found that nearly 40 percent of those people who pulled funds from their homes to pay off credit card debt went out and ran that debt right back up again. In other words: Double trouble. If you go this route, make sure you limit your ability to fall into that trap.

For the best rates on HELOCs, Bankrate.com is a good source — and if you belong to a credit union, be sure to check there. They often offer preferential rates.

Submit your questions to Jean here.

More For You To ♥

🏆 Should we still be "leaning in?" Here’s how Naomi Cahn says we should redefine success in the winner-takes-all economy. The HerMoney Podcast* is made possible by Edelman Financial Engines.

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🏢 Business owners know exactly how important it is to have the right team in place — but do you have yours? According to The 2023 State of Women survey from HerMoney Media and Principal Financial Group®, over half (60%) of small and midsize business owners are feeling either pessimistic or cautious about the outlook for the overall U.S. economy over the next 12 months. It’s clear we need help, which is exactly why we’re breaking down the professionals that every entrepreneur needs — and where and how to find them.**

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