Your Newsletter of the Month

As we kick off 2025, we’re excited to have you with us on this journey towards financial empowerment. Our mission remains the same: helping you master how money works and take control of your financial goals. This month, we're bringing you valuable insights on market trends, financial tips to start the year strong, and a look at what’s next for Finwise, starting with our Beta Test. 

But what does this mean for me ? 🙅

The U.S. added 256k jobs in December, with unemployment at 4.1%, showing a strong economy and more job opportunities. While this is good for workers, it also means higher inflation, making things more expensive. Loans for homes or cars will stay costly due to high interest rates, but savings may earn more. The drop in crypto markets reminds us to focus on safer investments. Finally, AI and automation are changing jobs, so learning new skills will be key to staying competitive.

And... the numbers of the month 👇

The Net International Investment Position (NIIP) measures the difference between what a country owns abroad (its foreign assets) and what foreigners own within the country (its foreign liabilities). 

 

Why It Matters : A negative NIIP of this scale highlights that the U.S. economy relies heavily on foreign investments. This can be seen as a sign of global confidence in the U.S., as investors trust the economy and are willing to invest. However, it also makes the country vulnerable to shifts in investor sentiment. 

Finwise Product Updates 

What's new at Finwise ! 😎 Each month get a quick overview about what we did during the last month. 

Community Highlight : Hard Question

Last month, our crazy community question about cakes and liquidity got famous, so we asked the same thing this month and ended up with… 

 

Why do we get brain freeze when eating ice cream too fast? 🧊🍦 

 

That's simple! It’s all about rapid changes in temperature. Brain freeze happens when something cold touches the roof of your mouth, causing blood vessels to constrict and then rapidly expand. Your brain interprets this as pain. Financially speaking, this can be compared to making decisions under emotional stress. 

 

🤯 Decisions under stress, you say? 

 

Imagine you’re in the financial market, and you hear everyone talking about the next "big thing." You rush in to buy, fearing you’ll miss out (hello, FOMO!), or panic-sell during a downturn, afraid of losing everything. Just like brain freeze, emotional investing happens fast, and it hurts. Here’s a stat to chew on: According to a study by DALBAR, the average equity investor underperformed the S&P 500 by 5.5% annually over 30 years, largely due to emotional decision-making like buying high during a market rally and selling low in a downturn. The key to avoiding this financial brain freeze? Take a breath, slow down, and stick to your long-term strategy. Just like savoring ice cream, the best decisions are made when you stay cool! 🍦📈

Tips & Tricks 🤖 With a visual generated by AI. 

The 30-Day Rule 📅

Feeling tempted by an impulsive purchase? Try the 30-Day Rule. Write down the item you want and wait 30 days before buying it. If, after a month, you still feel it’s worth the money and fits your financial goals, go for it! If not, you’ve just saved yourself from a potentially unnecessary expense.💡

Blog Article of the Month 🎓