As of March 2025, the United States is currently in a tariff war with Mexico, China, and Canada. The same administration that brokered the USMCA, which went into effect July 1, 2020 is now waging an economic war with the same trading partners that they previously made a deal agreement with. To add a little context, the USMCA (U.S.-Mexico-Canada) Trade Agreement replaced NAFTA, and is not scheduled to terminate until 2036, with a joint review occurring in July 2026. Imagine how you would feel if your business partner, which you signed an agreement with, did something similar. Chances are you wouldn’t be business partners for much longer. And that’s where the US stands with relationships to its “business partners.”
Last time we talked about doing a cash health check. Assuming you’ve gone through that article and have some money saved up. What now? What to do with that extra money that you have saved up for a rainy day? Throw it under the bed? Sure…if you like to lose money. How’s that you wonder? Inflation.
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So you have a little extra cash and want to start investing that money. Let’s put some brakes on that thought and do a little cash health check. Do you:
- have 3-6 month cash reserves on hand? This is your emergency fund, in case you get sick, lose your job, get into an accident, etc. For whatever reason, in case you won’t have income for awhile, you NEED this money to help you get through the next couple of months. So spend some time figuring out how much money you spend each month on the necessary basics: rent/mortgage, utilities, food, etc. Multiply that by however many months you feel comfortable and that’s how much you should have in emergency funds.
- credit card debt? PAY THIS OFF! The average credit card interest rate is about 24%. You will absolutely get clobbered if you have credit card debt. For example, if you owe $1000 on your card, and don’t pay it off, after a year (thanks to the power of compounding interest) you will owe an extra $268.24 on top of that! Given that the average American carries about $7000 in credit card debt, that’s an extra $1,877.69 they owe each year! Just for carrying a balance! What’s the point of investing anything when you are literally throwing away an extra $2k due to credit card debt?
- have any immediate necessary purchases? Car needs fixing? Do that first. You won’t be able to make any money if you can’t afford to travel to work. Faucet dripping? Money is literally going down the drain. Take care of the things around you that you need to function on a daily basis, including yourself. Join a gym, pick up a hobby, see a therapist. Invest in yourself first. Being broke is better than being broken. Having a physically and mentally fit body and mind is the best investment and should always be prioritized.
You’ve all heard it before. Compound interest. It’s how money is made. However, if you grew up like most of America, you’ve probably heard of compound interest, but don’t really understand what it means. So, here’s a quick introduction.
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Money doesn’t buy you happiness…was never spoken by any person that was lacking it. More than likely it was invented by rich people who tried to buy their happiness with material things, only to find that more stuff didn’t fulfill that empty void inside. However, if you’re hungry, or have to pay rent, or take care of family, more money definitely buys you reprieve from the stresses of simply existing.
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