Page 25 - ARUBA TODAY

BUSINESS Wednesday 31 July 2019
A25

Millennial Money: More money can lead to more problems

By KELSEY SHEEHY the ones who don't have
NerdWallet any stressors around mon-
Associated Press ey — bucket out money for
A few years ago, my best all the things they want to
friend said something that spend on," he says.
really stuck with me. The gist KEEP PACE WITH SAVINGS
was this: It doesn't matter If your income (and spend-
whether you make $25,000 ing) increases, your savings
or $100,000 a year — you'll should, too. This applies re-
still feel like you don't have gardless of lifestyle creep,
enough money. because living generally
That's easy for someone gets more expensive as you
making $100,000 to say, I get older — you might buy
thought at the time. a house, you might have
But here's the thing. She was babies, you might run into
right. In the span of a few medical issues or have to
years, I went from being an care for an aging parent.
intern to a legit profession- So get in the habit of bump-
al. My salary doubled, but ing up your savings as you
I was still living paycheck to go.
paycheck. "Set up regularly occurring
The reason? Lifestyle creep. automatic transfers to your
"People who see their in- retirement account, emer-
come increase, a lot of gency fund and any other
times they're just not that In this May 8, 2019 photo, a passer-by, left, walks near a bus stop that features an advertisement, savings accounts," says Lo-
much better off," says Brian in Boston's Seaport district. gan Allec, a certified pub-
Madgett, head of con- Associated Press lic accountant and owner
sumer education at New of personal finance site
York Life. "Because as your buy this. We don't have the grades are OK. These tips ing, like whether you really Money Done Right.
income changes, you money in the bank right will help you keep it from want to shell out that much And increase those con-
give yourself permission to now, but we're confident going too far. money on takeout. tributions every time you
spend more money." that over time, we can pay COUNT YOUR MONEY PLAN FOR INDULGENCES get a raise. Otherwise, your
You buy nicer clothes. You that off,'" Madgett says. When you're broke, you Tom and Donna (RIP "Parks savings might not keep up
upgrade your living ar- Jumping off that roller keep a close eye on every and Recreation") know not with your lifestyle, Madgett
rangements. You go on va- coaster of large spending, dollar. But that vigilance to "Treat Yo Self" every day. says.
cations. You pay for conve- new debt, large spending, can fade when you have Instead, make it special. "If you're not taking a close
niences. new debt can be difficult. some cash to spare. Sud- And make it part of your look at your savings, you
That permission slip can But curbing lifestyle creep denly, your checking ac- plan. Carve out room in could wake up in 20 years
quickly lead to debt, es- in your 20s and 30s, when count is tapped and you your budget for fun and set with savings based on the
pecially if you give yourself you'll likely see your biggest have no idea where the aside funds for things like income you had 20 years
the green light to spend wage increases, can give money went. vacations, concerts or big ago," he says.
beyond your means. you more financial free- Tracking your spending, via purchases. You don't need to bank
"You often see an increase dom down the road. an app or an old-fashioned You'll enjoy indulging the full amount, he says. If
in consumer debt when Don't worry. No one ex- spreadsheet, will keep you more when you know you you get a 10% raise, for ex-
that salary increases (be- pects you to have three tuned in to where your have the money set aside, ample, bump up your sav-
cause) that increased sala- roommates and live off ra- money is going. Then you Madgett says. ings by 5% and give your-
ry gives someone the confi- men noodles for the rest of can make informed deci- "Some of the most success- self permission to spend the
dence to say, 'Hey, we can your life. Some lifestyle up- sions around your spend- ful people, lifestylewise — rest.q

US home prices climbed just 2.4% from a year ago

By JOSH BOAK Speakman, an economist nualized gain of 13.6% in There were signs in a Na-
Associated Press that real estate company May 2018. tional Association of Re-
WASHINGTON (AP) — U.S Zillow. "There were too few The strongest price gains altors report on existing
home prices rose at a slow- homes on the market and were in Las Vegas at 6.4%, homes that prices may get
er pace in May, a sign that buyers were unable to find Phoenix at 5.7% and Tam- some support from lower
many would-be buyers are houses that fit both their pa at 5.1%. mortgage rates.q
finding properties unafford- needs and their budgets,
able. so they took a breather."
The S&P CoreLogic Case- The sluggish price growth
Shiller 20-city home price in- stems largely from the most
dex increased 2.4% in May expensive markets, where
from a year earlier, accord- years of price growth have
ing to a Tuesday report. undermined affordability.
Price growth decelerated Home prices rose less than
slightly from the 2.5% year- 2% in Los Angeles, New
over-year gain in April. York, San Diego and San
"Thwarted by climbing Francisco. Prices in the typi-
prices for years, buyers are cally hot market of Seattle
no longer willing to pay fell 1.2% from a year ago, a
any price," said Matthew sharp reversal from an an-