Latest news with #DennisShirshikov
Yahoo
21-06-2025
- Business
- Yahoo
How To Use Your Paycheck To Get Rich — Budgeting, Saving and Investing Your Income Wisely
Let's be real: Getting rich off a single paycheck sounds like a stretch — but using your paycheck wisely to build wealth over time? Totally doable. Remember This: Find More: Whether you're just starting out or finally earning more than you spend, how you handle your income matters way more than how much you make. According to Jason Pack, chief revenue officer at Freedom Debt Relief, most people fail to build wealth because they're struggling to set a solid foundation for living within their means. 'If you can't find ways to make a budget work consistently, you won't have enough cash left over to save, let alone invest,' he said. Here's a breakdown of how to budget, save, and invest like someone who knows what they're doing — even if you're figuring it out as you go. While most Americans have a monthly budget, experts say many still overspend. 'Automated clarity, not controlling your spending power, is in knowing where every dollar goes, and not having to monitor your spending,' said Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit. The best budgets are not Excel spreadsheets that make you feel guilty — they're systems that allow you to live your life without having to think about money constantly. Shirshikov suggested trying reverse budgeting. Rather than minutely recording where every dollar goes, you commit upfront to your biggest priorities — investing, saving and paying down debt — and then spend what you have left. 'For as long as you invest 20% of each paycheck into wealth-building instead, you'll never have to wonder if saving is something you can afford,' he said. See Next: Think in 'buckets,' not just balances. According to Shirshikov, one of the most potent (yet underused) parts of a new system is the ability to bucket interest rates and allocate the balance accordingly. 'The average savings account is a number that is a flat, plain number that sits there.' Smart savers employ a few psychological tricks to keep you from raiding it. He recommended creating distinct savings buckets for short-term needs (3-6 months of expenses), mid-term goals (a car, a house, a sabbatical), and long-term plans (retirement or financial independence). His out-of-the-box tip? Personalize your savings accounts with nicknames such as 'Quit My Job Fund' and 'Freedom Fund.' You are far less likely to steal from a goal you've emotionally tagged. 'Language shapes behavior,' he said. When it comes to investing, set it and forget it is your best bet. 'It's been said that the most effective wealth-building tool is consistent investing,' said Shirshikov. For newbies, a Roth IRA or 401(k) with broad market index funds (such as VTI or SPY) is plenty. But don't just contribute — automate and escalate. Each time you get a raise, nudge your contributions up 1-2%. For people who want to venture on less traditional wealth paths, Shirshikov said income-generating investments such as REITs, dividend-paying stocks or fractional real estate platforms are worth considering. 'You don't have to buy a house to profit from flippers,' he added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Here's the Minimum Salary Required To Be Considered Upper Class in 2025 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on How To Use Your Paycheck To Get Rich — Budgeting, Saving and Investing Your Income Wisely Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
I'm a Financial Expert: Here's Why You Should Take Out a Personal Loan To Further Your Education
Thinking about going back to school or picking up a new skill? Whether it's a degree, a certification or a specialized course that could level up your career, one thing's for sure: Education isn't cheap. The Pew Research Center reported that Americans owed about $1.6 trillion in student loans as of June 2024. But before you let finances hold you back, there's one option you might not have considered — taking out a personal loan. It might sound intimidating at first, but it could be a smart move to invest in your future. Read Next: Find Out: GOBankingRates spoke with Dennis Shirshikov, professor of finance at the City University of New York and head of growth and engineering at Growth Limit, to discuss the benefits of taking out a personal loan to further your education. Also see 10 key questions to ask before taking out a personal loan. Done correctly, Shirshikov said a personal loan (structured for the purpose of financing school, of course) can be one of the most underutilized but strategic moves for professional growth. That can be particularly so for workers looking to upskill in the short term or pivot their career paths. According to Indeed, many industries have some types of certifications, which can help employees earn more money. Check Out: Unlike many student loans, which are often limited to accredited institutions and traditional degree paths, personal loans offer flexibility. They can be used for coding bootcamps, certificate programs, executive education or even specialized one-on-one training that will enable you to command a higher salary or start a business. 'Consider, for example, a client of ours, a marketing analyst who was stuck on her salary who used a personal loan of $12,000 to make a UX design boot camp happen for her,' Shirshikov said. In under 10 months, the client made the leap to product design and boosted her salary by over $30,000 annually. 'And from a financial point of view, that's a return on investment that would leave any investor green with envy,' Shirshikov said. 'When you consider that the interest on the loan was under 10%, the math adds up.' This type of nontraditional education financing is particularly compelling, according to Shirshikov, because it's not bogged down by the bureaucracy and restrictions of federal education financing. Yet it still can have predictable, structured repayment terms. It's also worth noting that when you take out a personal loan for education, it doesn't typically come with a risk of collateral-backed loans, a psychological load that many borrowers can feel far more than for home equity lines or business loans. More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on I'm a Financial Expert: Here's Why You Should Take Out a Personal Loan To Further Your Education Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-06-2025
- Business
- Yahoo
9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
There's only so much you can control about your financial situation. You can't snap your fingers and magically increase your salary. The reality is that if you're in the middle class, one of the biggest changes you can make is downsizing to save money on monthly expenses. Find Out: For You: But that doesn't mean you have to give up everything you enjoy in your daily life. There are some pretty common expenses and purchasing habits the middle class can easily cut back on that can seriously improve their finances — especially for people with debt. One of the easiest areas for middle-class families to save money, according to finance expert, Dennis Shirshikov, is by evaluating and downsizing their subscription services. 'Many households subscribe to multiple streaming services, digital magazines and monthly delivery boxes, often spending more than $100 per month,' he said. 'While individually these services seem affordable, collectively they can add up significantly.' A practical approach he recommended is to review all subscriptions and eliminate those that are rarely used or overlap in content. 'For example, choosing one or two favorite streaming platforms instead of subscribing to five can save around $30 to $50 monthly,' Shirshikov said. Read Next: If you're in the middle class and carry debt, you know how much of your monthly budget it can eat up. Your balance keeps growing, and you can struggle to even make the minimum payments on top of all your other bills. With debt settlement, their experts will negotiate directly with your lenders to agree on a reduced balance, meaning you could pay less than what you owe. With debt consolidation, all your debt is combined into one new loan, ideally with a lower interest rate. This helps you pay off your balance faster and saves money on interest payments. Another significant expense for many middle-class families is dining out and takeout, Shirshikov said. 'While convenient, frequently eating out can quickly become a financial drain,' he said. 'According to the Bureau of Labor Statistics, the average household spends about $3,000 annually on food away from home. Reducing the frequency of dining out by planning meals and cooking at home can result in substantial savings.' According to Shirshikov, downsizing vehicle-related expenses is another effective way to save money. 'Many middle-class families own multiple cars, which can be costly when considering insurance, maintenance, fuel, and loan payments,' he said. Shirshikov said evaluating the necessity of each vehicle and considering alternatives like carpooling, public transportation or even biking can lead to significant savings. 'For example, selling a second car that is rarely used can save on insurance and maintenance costs, potentially freeing up $200 to $400 monthly.' 'The rise of streaming services and online content has made traditional cable packages less essential,' Shirshikov said. 'Middle-class families can often find more cost-effective options by downgrading their cable packages or switching to internet-only plans combined with streaming services. According to a report by the average cable bill in the U.S. is about $217 per month.' He said by cutting the cord and opting for a high-speed internet plan paired with a few streaming subscriptions, families can save upwards of $100 per month. Justin Godur, finance advisor and founder of Capital Max, agreed. 'Often, we subscribe to expensive cable packages thinking we need numerous channels or premium content,' he said. However, he noted that most people don't utilize half of what they pay for. 'Opting for selective streaming services or a basic cable package can save a substantial amount each month.' 'While the allure of the latest smartphone model is strong, these devices can be incredibly expensive,' Godur said. 'Opting for a model that's one or two generations older can still provide excellent functionality at a fraction of the cost.' Shopping for groceries — or medications — can quickly become expensive when opting for brand-name products. 'Many store-brand items are nearly identical in quality but are significantly cheaper,' Godur said. This simple switch can save a noticeable amount each month without sacrificing quality. 'Gym memberships are beneficial, but often underutilized,' Godur said. 'Considering the cost, it's practical to switch to cost-effective or free alternatives like outdoor exercises, community sports groups or even online workout classes that are much cheaper or free.' Shirshikov shared a similar view, saying many people pay for memberships they rarely use. But he also advised that when the weather permits outdoor activities like running, biking or hiking, those in the middle class should explore home workout routines or local community centers with lower fees. 'This can be an effective way to stay fit without the high costs,' he said. This last tip is arguably a bit tired, but it doesn't make it any less true. 'A daily coffee purchase at high-end cafes can quietly drain your wallet,' Godur said. 'Investing in a good coffee maker at home can dramatically cut down your monthly expenses and you might find you enjoy the taste of your home brew just as much.' At the very least, just try to cut down on your Starbucks trips, and you could find yourself with an extra $100 in our savings account every month. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard The New Retirement Problem Boomers Are Facing 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
Yahoo
02-06-2025
- Business
- Yahoo
I'm a Financial Expert: 5 Common Budgeting Tips You Shouldn't Follow
When it comes to budgeting, advice is everywhere: Your favorite money blog, that one TikTok finance guru, even your well-meaning cousin who swears by cash-stuffing envelopes. But not all budgeting tips are created equal. In fact, some of the most common ones can actually hold you back, stress you out or just plain not work for your lifestyle. For You: Discover More: GOBankingRates spoke with Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit, to take a look at a few popular budgeting 'rules' that might be worth rethinking. 'Budgeting is a key component of financial management and all advice is not created equal. Through the years, there have been a couple misguided 'tips' that people really ought to ignore,' Shirshikov remarked. Below are the top ones he recommends avoiding. And while reining in things like dining out or entertainment might sound like a quick fix, it can actually do more harm than good. 'Extreme frugality can cause people to burn out or, worse, leave their budgets all together,' said Shirshikov. A more measured response would be to appraise discretionary spending and strike a balance — cutting out non-essentials, but still allowing for things that bring happiness and value. After all, budgeting is not only about denying yourself pleasures; it's about focusing your spending on your long-term goals. Check Out: It's well-intentioned advice that has been shared widely, but according to Shirshikov, it can be unrealistic for a lot of people, especially when you are just starting out. Trying to save six months' worth of living expenses might sound like a worthy ambition, but the reality is, it can take a long time to achieve. In fact, CBS reports that most Americans can't afford a$1,000 emergency expense. 'Instead of worrying about a certain number, I'd suggest creating a small emergency fund first, the kind that can get you through a month or two of must-haves.' With that in hand, he said you can progress to building up your savings cushion little by little. Progress, not perfection is the key. While it's important to keep track of where your money is going, obsessing over every little purchase can be counterproductive and overwhelming. 'Most people feel smothered and defeated if they have to keep track of everything — including the coffee and the parking meter,' Shirshikov noted. A better approach may be to use budgeting software or apps with fancy algorithms that automatically do the categorizing for you, saving you the hassle of tracking every penny. The aim should not be micromanagement, but insight. 'The notion that you've got to have a ton of money to invest with is both an outdated one, and also a harmful one,' said Shirshikov. The sooner you start investing, the more time your money has to grow. Even small, regularly occurring investments in low-cost index funds can amount to big returns over time, thanks to compound interest. This myth often prevents people from creating wealth as it makes them think they have to have a big amount of money to begin with — and that's just not the case. While debt elimination is unquestionably essential, it isn't always the most intelligent long-term play to throw extra funds at high-interest debt while ignoring the need to save and invest. 'So many people only end up paying off their credit card in a cycle and never actually growing their wealth,' Shirshikov explained. He said a better balance would involve splitting your efforts between saving up for emergencies and paying down your higher-interest debts so you don't fall behind in other important areas of your financial life. Remember: Budgeting should empower you financially, not limit you. It's all about designing a system that services your needs best, and leaving enough space to alter it as your life changes. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The New Retirement Problem Boomers Are Facing This article originally appeared on I'm a Financial Expert: 5 Common Budgeting Tips You Shouldn't Follow Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Single and Worried About Retiring? You're Not Alone
If you're single and stressing about retirement, you're definitely not the only one lying awake at night doing mental math. In fact, a new survey from Allianz found that Americans are literally more worried about running out of money than death. That's kind of a big deal to be losing sleep over. Whether you're flying solo by choice, circumstance or somewhere in between, figuring out how to retire comfortably on one income can feel daunting. According to Chris Heerlein, CEO of REAP Financial, saving for retirement is more challenging for single individuals because they lack the dual-income advantage that married couples or partners typically have. Find Out: Read Next: 'Without this financial support, single individuals need to shoulder all saving and investing responsibilities on their own, which can feel overwhelming, especially when faced with higher living costs.' The good news? Plenty of people are in the same boat — and there are smart, doable ways to navigate it. Here's what you need to do to prepare. Contributing to retirement accounts like 401(k)s and IRAs is crucial, said Heerlein, and if an employer offers a match, taking full advantage of it should be a priority. Building an emergency fund of three to six months' worth of living expenses is also essential to avoid dipping into retirement savings during unexpected financial setbacks. Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, agreed that single people should make an effort to maximize their personal savings vehicles, like a 401(k) or an IRA. 'The beauty of compounding means even if the amounts are small and consistent, it can grow big over time,' he said. This is because automating how funds are invested in retirement accounts via payroll deductions can help guarantee a more constant stream of contributions to your future retirement. Be Aware: According to experts, you need to come up with a plan for long-term healthcare costs and consider investing in long-term care insurance. By staying disciplined with savings and working with a financial planner to develop a strategy, it's possible for you to overcome challenges and secure a financially stable retirement. Shirshikov noted that another thing to keep in mind is establishing achievable goals according to your own specific situation. For example, figuring out a reasonable retirement goal should account for your lifestyle aspirations, potential medical expenses and other factors. Financial planners often recommend that singles should be saving a bare minimum of 15% of their pay or more, depending on their income and goals for retirement. As a single person, you will have to come up with a customized plan for saving for retirement that takes into account your current financial situation and long-term plans. As Shirshikov wisely noted: 'Through discipline, consistency and being strategic, any person, whether they are married or not, can lay a solid financial groundwork for the retirement golden years.' More From GOBankingRates 4 Affordable Car Brands You Won't Regret Buying in 2025 These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on Single and Worried About Retiring? You're Not Alone Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
