January 3, 2026

Happy Saturday, everyone! ☀️
Good morning — hope today starts slow, calm, and exactly how you want it to.

Quick thought to kick things off: Have you ever wondered what’s really happening behind the scenes when a bank decides to say “yes” or “no”?
It’s not just about income — there’s a whole system quietly working in the background.

Today’s post pulls back the curtain and explains how banks actually make those decisions, so you can stop guessing and start positioning yourself smarter.

A little insight goes a long way — especially when it comes to money.

— Ryan Rincon, Founder at The Wealth Wagon Inc.

— Peter Drucker

Market Update: Markets were mixed today, with a slight red tint on tech but solid strength across most other asset classes.

The Nasdaq hovered just below flat, dipping 0.03%, while both the S&P 500 (+0.19%) and the Dow Jones (+0.66%) moved higher, showing steady investor confidence outside the tech-heavy space.

Bitcoin jumped 1.36%, continuing its upward momentum, and precious metals followed suit—Silver rose 2.35%, and Gold edged up 0.021%, signaling a mild risk-off hedge.

On the equities front, Broadcom gained 0.44% as chip-sector optimism stayed alive. Meanwhile, Apple slipped 0.31% and Costco dropped 0.91%, marking the day’s notable pullbacks.

Overall, it was a “broad but gentle green” kind of day—modest gains across indices and commodities, with only a few large-caps dragging at the bottom.

Earthquake With 6.5 Magnitude Rattles Southern & Central Mexico
A strong quake shook wide portions of Mexico, sending residents into the streets and prompting early structural inspections. While early reports indicate only limited damage, authorities are continuing to survey affected regions. Emergency teams are preparing for aftershocks as seismic activity remains elevated.

Zelensky Names Kyrylo Budanov as Ukraine’s New Chief of Staff
Ukraine’s president reshuffled top leadership by appointing Budanov, signaling a push for more aggressive strategic coordination. The move comes during a period of intensified military pressure and shifting battlefield conditions. Officials say the new leadership aims to streamline decision-making in the months ahead.

Saudi Warplanes Target Southern Yemen Separatists in Renewed Strikes
Airstrikes resumed in southern Yemen as tensions escalated between Saudi-aligned forces and separatist factions. The renewed conflict risks undermining fragile diplomatic progress made in recent months. Regional observers warn the fighting could widen if political talks stall further.

GDP Grew 4.3% in Q3, Marking a ‘Healthier’ Expansion
New data shows stronger-than-expected growth driven by resilient consumer spending and business investment. Analysts say the momentum suggests underlying economic stability heading into the new year. Still, some caution that slowing global demand could test the durability of this expansion.

Europe’s Factory Activity Ends 2025 in Deeper Contraction
Manufacturing across Europe weakened further, reflecting persistent challenges in key industrial sectors. Despite the downturn, Asia posted improved demand, offering a slight lift to global trade flows. Economists expect the divergence between regions to continue into early 2026.

More Americans Turn to Financial Resolutions for 2026
Concerns about budgets, inflation, and long-term security are pushing more households to reconsider their financial habits. Many are focusing on debt reduction, emergency savings, and retirement planning. Advisors say the trend highlights growing public awareness of economic uncertainty heading into the new year.

Tesla Loses EV Crown to China’s BYD as Demand Softens
Shifts in pricing, tax credit changes, and intensifying competition allowed BYD to overtake Tesla in global EV sales. Industry analysts note that the landscape is evolving quickly as manufacturers race to adjust strategies. Tesla faces renewed pressure to innovate and recapture momentum.

S&P 500 Closes Higher on First Trading Day of 2026
Markets opened the year on a positive note, buoyed by strength in chip stocks and cautious optimism about inflation trends. Trading remained choppy as investors weighed new data against expectations for rate policy. Even so, early gains provided a modest confidence boost for the year ahead.

Saks Global Restructures as CEO Steps Down Amid Debt Struggles
Saks’ top executive is departing as the company confronts mounting challenges tied to its debt load. The leadership change comes at a critical time, with restructuring efforts underway to stabilize operations. Analysts say the retailer must refine strategy quickly to restore investor confidence.

Most people think getting approved for financing comes down to one thing:
credit score.

That’s only partially true.

Banks, lenders, and financing institutions look at patterns, risk signals, and behavior far more than most people realize. Understanding how they think gives you a massive advantage — whether you want a mortgage, a business line of credit, an SBA loan, or future leverage for investments.

This article explains what banks really look at, in plain language, without fluff.

Banks do not care about:

They care about predictability.

Predictability means:

Someone making $120k consistently for 5 years is often considered less risky than someone who made $300k last year and $60k the year before.

If your income jumps around, banks mentally discount it.

What this means for you:
Consistency matters more than spikes when applying for financing.

Your credit score opens the door.
Your debt-to-income ratio decides whether you walk through it.

Banks look at:

If too much of your income is already spoken for, your score won’t save you.

This is why:

What matters:
How much free cash flow you have after obligations.

Banks quietly flag:

This looks chaotic to underwriting systems.

Long-standing relationships matter:

Translation:
Financial stability is behavioral, not just numerical.

If you own a business, banks separate you into two buckets:

They evaluate:

Businesses that:

are considered high risk, even if they make good money.

Clean separation and clean records matter more than growth alone.

Banks love liquidity.

Liquidity = cash or near-cash assets you can access quickly.

Examples:

Liquidity signals:

Someone with modest income but strong liquidity often gets approved faster than someone with high income and no reserves.

This is critical and rarely discussed.

Banks weigh recent financial behavior heavily.

Things that hurt you:

Things that help you:

If you’re planning to apply for financing, your last 6 months matter more than your last 6 years.

Banks don’t like:

They prefer:

Someone who uses credit sparingly and predictably is seen as safer than someone who constantly relies on it, even if they always pay on time.

Pre-approval often means:

It does not mean:

Final approval depends on:

This is why deals fall apart late — the deeper review reveals something automated systems didn’t catch.

If financing is part of your future plans:

This isn’t manipulation — it’s alignment.