Radical Changes in Housing Size
It seems that almost all financial planning websites have essentially the same advice for saving money—cut out the $5 lattes, eating out, spending on entertainment, and a myriad of other non-essential activities that almost everyone enjoys. However, when brokerage firm TD Ameritrade surveyed its clients who it deemed “Super Savers” for saving 20% or more of their incomes, they found something radically different. It turns out the single biggest difference between the spending of Super Savers and the rest of us…was spending on housing. Super Savers spend just 14% of their incomes on housing, while everyone else averaged about 23%. They managed this mostly by simply living in smaller houses – a radical idea in the “bigger is better” real estate world. A recent American Enterprise Institute report showed how dramatically the size of the average house has grown at the very same time that the size of the family living in that average house has dramatically shrunk.
The major U.S. indexes managed to retrace most of the previous week’s losses and made the first quarter of 2019 the best quarter for stocks in a decade. The Dow Jones Industrial Average rose 426 points, finishing the week at 25,928 and posting a gain of 1.7%. The technology-heavy NASDAQ Composite added 87 points, or 1.1%, closing at 7,729. By market cap, the large-cap S&P 500 rose 1.2%, while the mid-cap S&P 400 gained 2.2% and the small-cap Russell 2000 added 2.3%.
If you have any questions regarding the following information please don’t hesitate to reach out to us here at Royal Wealth. Have a great week!