Money Explained: Ruck That - and Other Healthy, Wealthy and Wise Tips
The Money Awareness and Inclusion Awards
Making Money Better
So, did you start the year with some great ideas for how you were going to get fit? And did you spend a little bit of money on them, to make sure they stuck? Gym membership. Trainers. Cool new running top that I will need to run off about 5kg before it looks cool.?
There definitely doesn't seem to be a positive correlation between how much money I spend on a keep-fit hobby, and how much I actually do it. It may even be a negative one, with the least money spent often being the ones that keep me doing them the most, while the most expensive ones, like a new bike…
There's even a saying in professional cycling that if you have to buy the latest carbon-fibre bike, you don't need it, and if you need it, you won't have to buy it (if you're good enough to need it, the manufacturer will give it to you for free). There's that inverse correlation again.
Don't worry, and don't give up. If January is the month where we set crazy resolutions, February is where we can look at them in the cold light of day, assess what's working, and move on.
Perhaps this is the appeal of rucking, carrying a heavy backpack on walks. We all have some kind of old backpack in a cupboard somewhere we're not using. We all have some heavy stuff lying around (if not dumbbells, then big, full, water bottles wrapped in towels). We all have clothes and shoes we can wear for a walk, I hope.
And we can all find time to go for a walk. It doesn't even need to be time cut out for a walk. Yesterday, I carried a 10kg pack for the 15 minutes walk to get my haircut, and the 15 minutes back. 30 minutes "rucking". I even took a backpack shopping and carried home the shopping. Done and done. No trendy t-shirts. No carbon fibre involved at any point. No expensive gym membership.
And rucking is surprisingly good for you. It's lower impact on your knees than running, while actually working your leg, back and core muscles more. It's often easier to stay in a lower aerobic/fat-burning zone for longer than when running, which can improve your fitness. And it's carrying stuff, so that's weight training and cardio all in one.
To me, this has always been at the heart of real financial literacy. While it's tempting to believe we "get what we pay for", that saying is often completely untrue. Very often, we can pay a lot for things we don't need, while we can get better outcomes, more enjoyment, more fitness, more life, from things that are cheap or even free, like that old backpack and big full water bottles wrapped in towels.?
So, join me in saying "Ruck that" to expensive gear.
Money: Federal Reserve Holds Interest Rates Steady
The Federal Reserve has maintained its benchmark interest rate at 4.25% to 4.5%, following three rate cuts in the previous year. Fed Chair Jerome Powell emphasized that inflation remains elevated and the labor market is robust, with unemployment at 4.1%. The Fed is adopting a cautious approach due to uncertainties surrounding economic policies.
Explained...
If you have variable-rate loans or credit cards, interest rates will likely remain stable in the short term.
Borrowing costs are still relatively high, so focus on paying down existing debt and be cautious with new borrowing.
Money: Japan’s Post-COVID Tourism Boom Driven by a Weak Yen
Japan has seen a record number of foreign visitors since reopening its borders in October 2022. The weak yen has made Japan an affordable travel destination, boosting spending in luxury shopping, hotels, and restaurants.
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Explained...
Money: DeepSeek AI’s Impact on the Stock Market
Chinese AI startup DeepSeek has introduced an advanced AI model, the R1, which rivals existing models at a fraction of the cost. This development has led to significant market reactions, particularly affecting the "Magnificent Seven" tech stocks, including Nvidia.
Nvidia lost $600 billion in market value in a single day after the announcement.
Investors are concerned about how cost-efficient AI models could challenge U.S. tech dominance.
Explained...
If you invest in tech stocks, be aware of AI-driven volatility.
Consider diversifying your portfolio beyond the Magnificent Seven. Read more...
Money: How Big Are the Magnificent Seven in the S&P 500?
As of mid-2024, the "Magnificent Seven"—Apple, Microsoft, Amazon, Alphabet (Google), Meta Platforms, Nvidia, and Tesla—collectively represented nearly 35% of the S&P 500’s total market capitalization.
Explained...
Nvidia alone accounts for almost 6% of the S&P 500. If these few stocks drop, they can disproportionately impact the entire market.
High concentration means higher risk—investors should diversify beyond big tech.
If you own index funds tracking the S&P 500, be aware of how these few stocks influence the entire index.