SoFi Blog

Interest rates continued to rise last week driven largely by an expected increase in inflation. Third quarter GDP data showed faster growth than expected, but a deeper look suggests caution against overestimating the importance of these numbers. Subpar earnings from several large tech companies and renewed uncertainty surrounding the election put pressure on U.S. equities and offset the good economic news. Falling oil prices and a stronger dollar hurt emerging market returns.

So you want to be a millionaire. And with your killer drive and professional achievements, there’s no doubt you’ll get there in due time. Up first: Aim to save $500,000. Cutting your goal in half will put you in the right mindset and allow you time to ace the habits and skills you need to join the millionaire’s club.

Here are seven tips to help pave the way:

It was a relatively uneventful week as Fed Chair Janet Yellen and Fed Vice Chair Stanley Fischer continued to reiterate the need for a gradual path of rate hikes. Inflation data came roughly in-line with forecasts, which kept ten-year inflation expectations at their highest level since the end of April. Equity and oil prices were up moderately while the euro depreciated against both the dollar and yen.

Stock prices fell last week in the face of rising interest rates and mixed economic data. The 10-year Treasury yield reached its highest level since early June as the market-derived probability of a Fed hike in December rose. Rising yields pushed the dollar higher against most other currencies, hurting returns in international and emerging market equities. We see bond yields leveling out in the coming weeks and remain constructive on U.S. growth.

Let’s get the ugly truth out of the way up front: A lot of Americans don’t have great financial planning skills. More than half (56%) have saved less than $10,000 for retirement, according to a March 2016 GoBankingRates survey. And 49% of U.S. adults with a self-directed retirement account, such as an IRA or 401(k), lack the confidence to invest iwt properly, according to a Federal Reserve Board report published in May. To add insult to injury, that same report reveals that 46% couldn’t cover an unexpected $400 emergency expense with ready cash or savings.

While there’s plenty of saving and investment advice available to help us all increase our financial smarts, the lion’s share of it is built around the idea that we should invest and save for other people in our lives. We’re told to save up for a wedding, a down payment on a house to enjoy with a life partner, a couple of cars, and for children and their educations. But where’s the financial planning advice for singles? It’s unfair to be left out just because your life milestones differ from those of others.