When making financial decisions, some Americans look to the zodiac to point them in the right direction.
The majority of Americans follow astrology (63.4%), according to the latest LendingTree survey of more than 2,000 consumers, and nearly 1 in 5 say they’ve made a financial choice based on their horoscope — led by millennials. Many also think zodiac signs influence how good or bad you are with money.
Whether you’re a fire, earth, air or water sign, read on to learn what this survey may have uncovered about your financial destiny.
Key findings
- 30.1% of millennials have made a financial decision based on their horoscope, as have 24.1% of Gen Zers.
- Of those who made financial decisions based on their horoscope, the most common choices include saving extra money, splurging, buying or selling stocks and changing jobs.
- Americans think Capricorns are the best with money and believe Geminis are the worst.
- Cancers worry about money the most, while Sagittariuses report the least amount of money anxiety. That said, Sagittariuses have the lowest average credit scores of all the signs.
3 in 10 millennials have made financial decision based on horoscope
The LendingTree survey finds 19.2% of Americans have made a financial decision based on their horoscope, and an additional 30.6% would consider doing so.
That initial percentage is especially high among millennials (ages 25 to 40), 30.1% of whom have let the zodiac guide a money choice. It was also high among Gen Zers (ages 18 to 24), which isn’t surprising considering they follow astrology more than any other generation (83.3%).
Among those who haven’t used their horoscope to guide their financial actions but would consider it, women are more willing than men (37.9% versus 22.5%, respectively). This finding also aligns with another that shows far more women following astrology than men (78.2% versus 47.6%, respectively). The overall population who follow astrology sits in the middle at 63.4%.
So while most consumers don’t look to astrological predictions for financial guidance, many are open to the idea.
Our advice: How you manage your finances can have major life consequences, so don’t leave your decisions up to fate.
“Horoscopes are fun and interesting, but it seems really unwise to make any significant financial decision based on them,” says Matt Schulz, LendingTree chief credit analyst. “You are far better off consulting with a financial adviser, meeting with a credit counselor, reading one of the myriad books available from personal finance experts or just speaking with a financially savvy relative or colleague instead.”
Consumers have looked to horoscope to save, splurge and more
While letting astrology impact your money moves might sound risky to some, many consumers who made a decision based on their horoscope were encouraged to save more money (42.1%) rather than spend it.
That said, the next most common horoscope-influenced choices were splurging (33.5%), buying or selling stocks (23.1%) and changing jobs (23.1%).
An additional 21.1% said their horoscope encouraged them to negotiate their salary.
By generation, Gen Zers and millennials were most encouraged by their horoscope to save extra money. Meanwhile, Gen Xers (ages 41 to 55) and baby boomers (ages 56 to 75) were most encouraged to splurge on something they wanted.
Our advice: While it’s tempting to look for a sign to navigate uncertain times, make sure your decisions align with common sense around what’s right for your finances.
“Be planful and thoughtful,” Schulz says. ”Splurges and impulse buys wreck budgets in a big hurry, and the best way to avoid them is to think about what you’re going to buy before you hit the stores. That changes the trip from a browse to a targeted mission.”
According to Schulz, surrounding yourself with support systems can help you stick to your money goals.
“When you’re trying to rein in your spending, surround yourself with people who are cheering you on rather than those who are trying to talk you into going on shopping sprees,” he says.
Americans think Capricorns are best with money, while Geminis are worst
Does your star sign influence how good you are with money? Many Americans seem to think so.
According to the LendingTree survey, Americans think Capricorns are the best with money. But — sorry, Geminis — the consensus is that you’re the worst with your finances.The data shows Capricorns are indeed the sign most likely to save and stick to a budget, while Leos are the least likely to save and Tauruses are the least likely to follow a budget.
Geminis, on the other hand, are more comfortable with risky investments than other signs. Of course, this doesn’t necessarily mean that these May and June babies aren’t good with money.
Meanwhile, Aries tend to be more conservative than other signs, with 33.8% saying they don’t like taking risks with investing, even if it means they won’t get as high a return.
When it comes to making purchases, Virgos are most likely to splurge for quality, while Geminis are the ones looking for a discount.
Our advice: Everyone can learn how to manage their finances better, regardless of their star sign. Instead of letting the cosmos decide, take control of your financial destiny by learning about personal finance and implementing strategies that work, like following a budget or saving for retirement in a 401(k).
When it comes to investing, Schulz suggests tapping into your self-awareness rather than turning to your horoscope.
“When it comes to investing, some of the oldest advice is still the best: Know thyself,” he says. “How tolerant are you of risk? What are you trying to accomplish? How long do you want to be in for? How much money are you willing to put in? Asking yourself these and other questions can help you get where you want to go in the way in which you want to get there.”
Cancers have the most money anxiety, Sagittariuses the least
If you’re feeling anxious about money, could the source of your concerns be astrological? When it comes to financial fears, the LendingTree survey found that Cancers worry about money the most, while Sagittariuses report the least amount of money anxiety. Nearly half (48.7%) of Cancers worry “all the time” about money, compared with 36.0% of Sagittariuses.
But while Sagittariuses might be more carefree about their money, they also have the lowest average credit scores, according to a November LendingTree analysis of more than 90,000 anonymized credit reports:
| Average credit score by zodiac sign | |
| Astrological sign | Average credit score |
| Taurus (April 20-May 20) | 713.6 |
| Gemini (May 21-June 20) | 713.0 |
| Cancer (June 21-July 22) | 712.1 |
| Scorpio (Oct. 23-Nov. 21) | 711.8 |
| Aries (March 21-April 19) | 711.5 |
| Libra (Sept. 23-Oct. 22) | 711.0 |
| Pisces (Feb. 19-March 20) | 710.9 |
| Leo (July 23-Aug. 22) | 710.8 |
| Virgo (Aug. 23-Sept. 22) | 710.6 |
| Aquarius (Jan. 20-Feb. 18) | 709.2 |
| Capricorn (Dec. 22-Jan. 19) | 708.9 |
| Sagittarius (Nov. 22-Dec. 21) | 708.7 |
| Source: LendingTree analysis of more than 90,000 anonymized credit card reports of LendingTree account holders. | |
Our advice: If you find yourself stressed about money, it could help to pinpoint what you can improve.
“People worry most about things that seem out of their control,” Schulz says. “When that happens, the best thing you can do is try to take back some of that control. Even small steps added up together can make a difference.”
Here are some of those small things you can do:
- Take steps to improve your finances: Schulz recommends creating or updating your budget, calling your credit card issuer and asking them for a lower interest rate and selling something of value that you no longer use or starting a side hustle. “The options are endless,” he said. “The most important thing is to just get started because your financial issues aren’t just going to fix themselves.”
- Protect your credit score: You can also take actions to improve your credit score, such as paying down debt or consolidating credit card debt to decrease your credit utilization ratio. “People overthink credit,” Schulz says. “Basically, it’s about three things: paying your bills on time every time, keeping your balances low and not applying for too much credit too often. If you do that over and over for years, your credit will be just fine. You just need to remember that credit is a marathon, rather than a sprint.”
- Be cautious about borrowing money: To protect your finances, you also want to avoid taking on unnecessary debt. If you decide you do need a loan, however, make sure you can pay it back on time and that it’ll be worth the interest costs. For instance, borrowing a home renovation loan could pay off if it increases the value of your home. However, borrowing a personal loan to invest could be a risky move, as it could cost you if your return on investment doesn’t keep up with your loan’s interest charges. Whatever you decide, make sure to shop around and compare financial options before committing so you can find the best rates and terms for you.
If your horoscope advises you to make a money move, do some research from non-astrological sources to ensure it’s the best decision for you.
Methodology
LendingTree commissioned Qualtrics to conduct an online survey of 2,049 U.S. consumers from Nov. 3 to Nov. 5, 2021. The survey was administered using a nonprobability-based sample, and quotas were used to ensure the sample base represented the overall population. All responses were reviewed by researchers for quality control.
We defined generations as the following ages in 2021:
- Generation Z: 18 to 24
- Millennial: 25 to 40
- Generation X: 41 to 55
- Baby boomer: 56 to 75
While the survey also included consumers from the silent generation (those 76 and older), the sample size was too small to include findings related to that group in the generational breakdowns.
To calculate the zodiac signs with the highest and lowest FICO Scores, researchers analyzed more than 90,000 anonymized credit card reports of LendingTree account holders, calculated during the first two weeks of November 2021.
This article originally appeared on LendingTree.com and was syndicated by MediaFeed.org.
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15 investing myths you should forget right now
Investing money might help you grow your wealth, but it can be a scary concept for some. According to a recent FinanceBuzz survey on investing habits, nearly three in 10 Americans haven’t started investing yet.
There are many reasons that stop us from investing. Unfortunately, some of these reasons are actually old investing myths. But putting off investing may be one of the most significant money mistakes you can make.
To help more people start investing and making smart money moves, we’re going to present 15 investing myths, explain why they’re outdated and how they could be costing you money.
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FianceBuzz’s survey found 62% of people believe you should have $1,000 or more to open an investment account. A couple of decades ago, some mutual funds required a minimum initial investment of thousands of dollars.
But this widely believed myth that you need lots of money to start investing simply isn’t true. Today, investing apps have changed how we invest, and many traditional brokerage firms allow you to begin investing with very little money. You can even get started in investing with as little as $1 if you buy fractional shares.
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It’s a common belief that a bank account is the best place for your short-term investments. The money is usually insured up to at least $250,000 thanks to Federal Deposit Insurance Corp. insurance and at least won’t decrease in value.
Unfortunately, bank accounts typically have awful interest rates. If you want to get decent earnings on your money, other options exist. For instance, certificates of deposit and money market deposit accounts are also normally FDIC insured and may offer higher interest rates.
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If you’ve ever tried to watch an investing show on TV, you’ll know that these strategists often talk about very detailed concepts and strategies in an attempt to eke out higher returns. Thankfully, everyday investors don’t need that level of complication in their investing lives.
Some of the best investing apps just have you fill out a questionnaire about your goals, risk tolerance, and other relevant financial information. Based on this, they suggest a portfolio of investments that fits your needs. They can even automate your investing in that portfolio so you can regularly and easily add more money.
Although you don’t want to blindly follow the advice of an investing app (or a human, for that matter), these services can take care of some of the more complicated work for you.
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It’s easy to think stocks are the only option to invest in. You constantly hear about the stock market reaching new all-time highs or dropping by a few percent in the media. The press doesn’t tend to cover other investments as much.
But stocks are only a tiny part of investing. You can invest in many other types of assets, including real estate, cryptocurrency, collectibles, artwork, precious metals, and more. For example, Masterworks helps you invest in fine artwork that you likely couldn’t otherwise afford to own.
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The traditional idea of investing makes it sound like it would take up a lot of your time. You have to research investments, read a company’s public financial reports, and keep track of the news that could impact stock prices. And you have to do that for everything you invest in, right?
Thankfully, the answer is no. You can earn decent returns throughout long periods in other ways. For example, you could easily diversify your assets just by investing in index funds.
Index funds often have diverse holdings, which means they spread out the risk over multiple companies rather than concentrating your risk in one or two. You won’t typically see as high a return as you might with an individual stock, but you also won’t have to spend as much time managing the investments and expose yourself to less risk of losing money too.
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Investing used to be expensive. You had to pay brokers to make stock trades for you and there were a lot of other potential fees as well. But things have changed over the past couple decades.
Now, there are investing apps that offer fee-free trades. And even some of the major investing powerhouses that have been around for decades have started offering commission-free trades.
If you want to invest in a more diversified investment, such as a mutual fund, some companies even offer no-fee investments. In particular, Fidelity offers four mutual funds that have 0% expense ratios and no minimum initial investment.
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If you work at a company that offers a 401(k) plan, it’s easy to think a 401(k) is the only account you’ll need for retirement. Although that may work out in some cases, you may be better off having more than just a 401(k).
You might also consider opening an individual retirement account (IRA). You could also open a taxable investment account. These accounts may work better for you than a 401(k) because you choose where you open them. That means you get to pick where and what you invest in rather than having a 401(k) plan force you into a limited set of options that may come with high expenses.
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When you research investments, you’ll likely see a section detailing the investment’s past performance. And although that may sound good, the truth is it isn’t an indicator of the investment’s future performance.
No one has a crystal ball. What happened yesterday may have nothing to do with what happens tomorrow. For instance, a company with a stellar performance record before a recession may go bankrupt when a recession hits.
Past performance is something you should consider, but know that it doesn’t promise any given returns in the future. Instead, focus on the fundamentals of a company or investment.
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When you see your investments taking wild swings from day to day, it’s easy to get worried. You may think that selling your assets today and waiting until the market calms down will protect you from the storm. Unfortunately, that may not work out.
Volatile markets can have wild swings both up and down. If you sell once investments have started to dip, you could miss out when markets begin their recovery. The best days in the market often come after the worst days. If you don’t reinvest at the perfect time, you may miss out on these fantastic opportunities. This could dramatically reduce your investing returns.
A smart money move to make in a volatile market could be holding a diversified portfolio for the long term so the wild swings even out over time.
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Gold is an investment that many people have misconceptions about, including the idea that it’s the best investment. Historically, gold may have a good track record. But what happens if a gold mining company finds a massive supply of new gold? If the supply exceeds the demand, gold prices could plummet.
When you invest in only one thing, such as gold, you open yourself to huge risks. Other assets may outperform gold and provide better overall returns if gold performs poorly for an extended period. It’s generally smart to invest in a diversified manner rather than putting all your money into one investment.
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Bonds, which is a fancy name for debt, are normally viewed as a stable source of investment returns and retirement income. Many investment experts recommend slowly switching from stocks to bonds as you get older.
Unfortunately, the broader economic picture has made this strategy less certain. The price of bonds increases when interest rates drop. Interest rates have been falling for decades but may start rising in the future. When this happens, the price of bonds may decrease.
Instead of blindly following a rule of thumb, consider why you want to own bonds. If your reasoning aligns with the investment and its risks in the current environment, consider adding bonds to your portfolio.
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Buying shares of big-name companies — such as Google, Amazon, Apple, and Facebook — can be viewed as some of the best ways to invest by new investors. These stocks have all had meteoric rises in their prices from when they first debuted on the market.
But big companies aren’t always a good investment. Although they may have had reliable performances in the past, their futures may hold risks that result in lower returns. Some behemoth companies even end up going out of business, such as Toys R Us and Circuit City.
Large companies aren’t always able to adapt to changing times. If they can’t, your investment in them may lose value. Instead, it may be wiser to invest in a diversified portfolio of companies of different sizes.
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When you look at the long-term historical returns of the stock market as a whole, the market appears to provide reasonable returns. If you only look at this long-term trend, it’s easy to think you face no risk when investing. That isn’t the case.
You always face risks when you invest, even when you invest in the most simple and boring investments. If you suddenly need your money, you may have to sell when an investment’s price has decreased. This means you don’t get the advantage of the long-term historical returns because you had to take the money out of the market early.
If you’re nervous about the risk of investing, that’s a good thing. It forces you to educate yourself and find ways to decrease your risks while still meeting your financial goals. If you’re still too nervous about investing, talking to a fee-only fiduciary financial advisor may help.
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According to FinanceBuzz’s survey, one of the top-cited reasons Americans aren’t investing is that they’re afraid of losing money. Investing is risky, as we just discussed, but the degree of risk depends on what you invest in and how long you plan to stay invested.
Some investments are incredibly safe, such as certificates of deposit, money market accounts, and U.S. Treasurys. And even some riskier investments have historically provided positive long-term returns as long as you stay invested and invest in a diversified manner.
Taking a risk tolerance assessment may help you decide on the best path for you. Based on the evaluation results, you’ll be able to craft an investment plan that allows you to take the risks that fall within your comfort level. These sorts of assessments are often part of signing up for an investing app or opening a brokerage account.
The bottom line is that If you don’t take any chances, you reduce your potential returns. This may be disastrous, especially if the cost of living increases over time and the money that’s just sitting in your savings account can’t keep up with those costs.
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You’ve probably heard the saying “The best time to plant a tree was 50 years ago. The next best time to plant a tree is today.” Investing works the same way.
In an ideal world, people would start investing early in life to take advantage of compounding returns. But even if you didn’t start early, the next best time to start investing is today. If you start investing now, you’ll have more time to watch your investments grow than if you start next year.
Consider using an investing app to simplify the process of starting to invest while still meeting your goals and current financial situation. Once you’re more comfortable, you can research more investment providers in detail and move your money at that time if that feels like a good fit.
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Investing myths are commonplace in our society because people haven’t taken the time to research the facts. And, quite frankly, investing can be an overwhelming topic to research on your own. But now that you’re aware of why these investing myths aren’t a reality, you can share this knowledge with your friends and family.
More importantly, you can quit using these myths as a reason to put off investing. It’s easier than ever to start because now you know that you can start investing with just the change you have in your pocket.
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This article originally appeared on FinanceBuzz.com and was syndicated by MediaFeed.org.
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