Financial Well-Being Newsletter: What to do instead of 'Find Your Passion'
Today we are starting with an article about what to say instead of 'Find your passion.' Also, given some recent requests for including more financial news, we thought we'd start curating a short list of important financial articles from the week's news. Let us know what you think!
From the Web
'Find your passion' has become a ubiquitous, almost cultural piece of advice offered to young and old alike. I know I heard it often enough when I was in my 20s and I probably said it to a few people in return along the way. Here's the thing, apparently it's bad advice!
According to Stanford researchers, there are deeper implications to advice like 'find your passion.'
They imply that once an interest resonates, pursuing it will be easy. But, the research found that when people encounter inevitable challenges, that mindset makes it more likely people will surrender their newfound interest. And the idea that passions are found fully formed implies that the number of interests a person has is limited. That can cause people to narrow their focus and neglect other areas."
What do the authors suggest instead? "Develop your passion." In other words, according to their research, "Interests are qualities that take time and effort to develop."
So if it at first you don't succeed...
From the Financial News
As the US heightens global trade tensions, the OECD put together some charts to show what the world might like with greater trade restrictions. Notably, if we went back to the tariff levels of 1990, Global GDP would decline by 14% by 2060. Look, most economists and financial types agree that tariffs and trade wars are bad. And we generally agree. Are we at the precipice? No. Will be there be ramifications? Of course! There always are! Tariffs are, by their very nature, inflationary. And inflation is something that's always on our radar, especially so right now, as it can be particularly hard on savers and retirees.
Whether you are for or against the recent tax bill, the math seems to be the same as ever. Tax cuts lead to wider budget deficits and wider budget deficits are stimulatory by their very nature. Similar to tariffs, tax cuts can also be inflationary under the right set of circumstances.
See a theme here?
To be clear, we find that many families aren't totally sure how their 2018 tax bill might end up (and could be withholding too much on their paycheck, etc). If you or someone you know would like some support in figuring this out give us a shout!
We recently had a Trailhead photoshoot, and it turns out we clean-up nice!
We hope you have a great weekend!
Morgan & Courtney