Happy Monday!
I hope you enjoy this edition of The Change-up, my weekly newsletter sharing the latest market news and personal finance tips. If you're interested in learning more about working with me, send me an email (austin@mccallandassociates.com) or click my Calendly link at the bottom.
Please feel free to forward it along to friends!
Complementary Financial Consulting!
Once a month, I open my calendar to meet with individuals and families for free. No cost, no hidden sale, no strings attached. It's my way of giving back.
This is a great opportunity for those just getting started on their financial journey, if you have a question or two, or just want to make sure you are doing all of the right things.
July's date is Friday, 7.21.
Click the link below to get on my calendar.
Quote of the Week
““If my critics saw me walking over the Thames they would say it was because I couldn’t swim” ”
I picked up this quote from Kirk Cousins in the new Netflix show, Quarterback. 10/10 would recommend if you like football.
*As of 7/14/2023. For the week of 7/10/2023.
The Story
It turns out people get excited when inflation cools down. Markets were in the green through Thursday, after the Consumer Price Index (CPI), which measures the cost of a basket of goods and services, came in lower than expected. The Federal Reserve is still expected to raise rates next week (90%= probability).
My View
Welcome to Q2 earnings season!
Earnings season is a multi-week period where publicly traded companies report how they did over the prior 3 months. The results are compared to analysts' expectations and stocks rise and fall accordingly. Every company's earnings report is followed by an earnings call, where the C-Suite explains the prior quarter and gives us a glimpse into future projections.
While economic data and world events influence a stock's price, a company's value is ultimately driven by results. And earnings, while imperfect, give us a picture of these results.
Q2 earnings are expected to be down by over 7%. But Q1 earnings were supposed to be down by over 5%, but ended up positive.
How will it turn out?
Stay tuned...
Coming Up This Week
Earnings Season (All Week)
June's housing starts (Wednesday)
June's existing home sales (Thursday)
31 Financial Principles to Live By
I turned 31 last Friday! And had a blast celebrating with my family in Pittsburgh. We were there watching my dad compete in the Senior Olympics for Pickleball (he's a savant). We linked up with some good friends, caught a Buccos game, and spent some time in Altoona with my wonderful host family from baseball days. It was a great trip. If you haven't been to Gaucho Parrilla Argentina in Pittsburgh, check it out next time you're there.
To celebrate, I want to share my 31 most important financial principles to live by:
1. Set clear goals and objectives
2. Wealth isn't built in a day. It's a long, slow process of putting one foot in front of the other.
3. Money is just a tool. Don't turn it into an idol.
4. Your neighbor's financial status is not important.
5. Spend less than you make
6. Wait 3 days before making a big purchase
7. Set a monthly meeting to discuss finances with your spouse. Approach it with humility. Pair it with a date night.
8. Automate your savings & bill pay
9. Budgeting = Freedom
10. Spend under 30% of your net income on housing costs
11. Shoot for saving 20% of your net income
12. Always contribute to your workplace plan, at least up to the match
13. Debt is an anchor to your net worth
14. Never carry a balance on your credit card
15. Avoid high-interest debt
16. Get a will & durable power of attorney
17. Buy an umbrella policy. It's cheap.
18. If you have others that rely on you, consider a term life insurance policy
19. Review your beneficiaries yearly
20. Your employment income is not just your salary. It includes your benefits as well.
21. A HSA is the most tax-efficient savings vehicle
22. If an investment seems too good to be true, it is
23. Invest in appreciating assets, not depreciating assets
24. Don't try to time the market
25. Diversify your investments
26. Never make a decision solely for the tax benefit
27. Focus on your 10-year investment return, not your 10-day return
28. Don't put cash at risk that you will need in the next 12-18 months
29. Buy good businesses
30. Investing isn't about beating the market. It's about generating a return that allows you to do what you want.
31. Find trusted partners (advisor/CPA/etc.) and lean on them for advice
Let's have a great week!
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Investing 101 If you can't explain the investment to a fifth-grader, don't do it
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Most people get this wrong Investing isn't about generating the highest return at all costs It's about growing yo… https://t.co/IzfLi3Dy1o
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