Market Performance: January 6, 2024.

Wall Street closed its worst week since Halloween with a listless Friday after reports showed workers are getting bigger raises, but key parts of the economy still don’t look like they’re overheating.

The S&P 500 rose 8.56 points, or 0.2%, to 4,697.24 after drifting between small gains and losses through the day. It capped the first down week for the index in the last 10, after it roared into 2024 on hopes that inflation and the overall economy are cooling enough for the Federal Reserve to cut interest rates sharply through the year.

The Dow Jones Industrial Average rose 25.77, or 0.1%, to 37.466.11 and inched closer to its record set earlier in the week. The Nasdaq composite added 13.77, or 0.1%, to 14,524.07.

The Best Envelope-Budgeting Apps You Should Use to Better Manage Your Cashflow

The envelope budgeting system has been around for a long time, and for good reason. It is a simple and easy way to control personal finances. However, since most people use cards and virtual payments, cash envelopes are no longer practical.

Goodbudget:

Goodbudget uses the principles of the envelope method but eliminates the physical envelopes. Instead of using cash, Goodbudget allows users to link their bank accounts to the app. They can then create digital envelopes and allocate money from their bank account into these “envelopes” to categorize their expenses. It makes it easier to track spending and keep tabs on available funds.

RealBudget:

If the idea of linking a bank account to a third-party app turns you off, RealBudget is for you. RealBudget is a simple and easy-to-use envelope-budgeting app. The app allows users to create an unlimited number of envelopes for various expenses. Users can allocate certain dollar amounts to each envelope. There is no need to link your bank or any other financial accounts. Best of all, the app is completely free to use, and there are zero ads!

These envelope budgeting apps can help you achieve the same results without forcing you to carry dollar bills around.

'Money psychology' is the key to unlocking financial opportunities

I managed money professionally for 15 years, and over that time I learned that being a good investor wasn’t correlated with how much research I did (assuming I’d covered the basics), or even how well I understood my own approach to risk and return – although that was important.

No; the biggest impact on my funds’ performance came from making accurate judgements about other investors’ psychology. My first boss gave me an early valuable lesson in this.

I started my career in October 1987, and on the exact day that Wall Street crashed – “Black Monday” – I went to a pre-arranged interview for an opportunity to spend two years in New York.

I recently read The Psychology of Money by Morgan Housel, a brilliant and easily digestible book. I highly recommend it – especially if you are intending to make a New Year’s financial resolution. If you’re going to make a change that sticks, you’ll first need to understand your own money psychology.

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