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Recap: October 2019

| October 31, 2019
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Hello,

I hope everyone had a spooky month of October! Thanks again for joining the Clay Financial Newsletter. Any and all feedback would be appreciated. Please let me know what you liked, didn't like, what you want to see more or less. Of course let me know if I made a mistake or if you have any questions. This will be an ongoing project and I appreciate you joining me on making a newsletter! 

Personal Finance Tip: How to Increase Cash Flow

There are two ways to increase your cash flow.

1.) Increase your current income.

This can be achieved in a couple of ways. Asking for a raise which should be done much as possible or at least increase with inflation. Every year you don't receive a raise your purchasing power will decrease because every day goods will increase in price. Another way is by starting up a side gig. This is great way to exercise your creative and entrepreneur spirit and I suggest everyone should try. 

The problem with this method is that it will take time, work and energy. If you ask for a raise you might be asked to burden more of the work load and starting side gig, no matter how passive, will demand some type of management system. 

2.) Decrease your expenses.

This is something that actually takes less effort and everyone can do! Eating out less, purchasing off brand items, thinking more about if you need to purchase an item or not. Even downsizing your current apartment. I suggest everyone keep a budget to understand where your money goes. Overtime this is cool to look at and makes you understand your spending habits. There are great budgeting apps out there like Mint and the one I used is called Daily Budget Original in the app store. 

Macro News 

Political:

The federal reserve has cut interest rates once again by 25 basis points and looks to keep that steady for the time being. This means borrowing money from the bank has become cheaper. The fed has been doing this to stimulate the economy and hopefully keep the United States from heading into a recession and because of negative interest rates set by other countries. 

The US House of Representatives is set to vote on how the impeachment inquire into President Donald Trump should proceed. Impeachment heading into election season will more thank likely divide the country. This has shown in the past to increase voter turnout which in a Moody's election forecast shows that with heavy turnout democrats have a higher percentage chance of winning the election. This still seems unlikely as Trump and the GOP have dwarfed the DNC in campaign funds and the DNC actually is spending more than they are bringing in. Twitter enacted a policy that will not allow paid political advertising on its platform stating that candidates need to have organic reach. I for one, am all for decreased campaign ads. This looks to benefit the DNC at face value because the amount of money on hand for the RNC but Trumps ability to be in the press over any tweet and any action seems to overshadow the need of advertising. 

Trade War:

The trade war with China seems to actually be heading in the right direction with the US and China entering into a 3 phase agreement. Any news of the trade war has been making the market react extremely volatile depending on which way traders believe it is heading. With this 3 phase agreement the market has reached record highs. 

Financial Instrument: Roth IRA

The Roth individual retirement account is a great way to start investing in ones retirement. You would make after tax contributions to this account which would allow tax free growth and the ability to make distributions during retirement tax free! 

Thank you and have great month of November and make sure to follow my podcast on Spotify!

Thanks,

Stephen Poll

Clay Financial

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