Portfolio Return as of 05/06/22:
2020: 25.65%
2021: 29.15%
YTD: 5.79%

Sunday, April 14, 2019

What would you do with a $5,000 bonus?

You really want to save. Why you don't may surprise you.

Good intentions abound: More than a third of respondents said they’d pay off debt. Many others claimed they’d save for short-term expenses (22%) or invest for long-term goals (15%).

A measly 2% said they’d buy something they couldn’t otherwise afford.

Admirable. But unlikely. 
Forty percent of people in the U.S. don’t have $400 set aside for an emergency, according to the Federal Reserve.
A $5,000 bonus can go far if used well. 
If you invested that amount at an annual return of 8%, you’d have $50,313 in 30 years, $108,623 in 40 years and $234,508 in 50 years 
If you directed that bonus toward debt, you could save years of bills. That’s because if you made only the minimum payments on a credit card with a $5,000 balance and an interest rate of nearly 18%, you’d be stuck in the red for more than 18 years and have forked over $6,400 in interest, according to Ted Rossman at CreditCards.com.

Full story at CNBC 


No comments:

Post a Comment

Thanks for the comment. Will get back to you as soon as convenient, if necessary.

US Producer Prices Surge 11 Percent on Higher Food Costs

Wholesale prices in the U.S. soared 11% in April from a year earlier, a hefty gain that indicates high inflation will remain a burden for co...