Latest news with #EquanimityWealth
Yahoo
6 days ago
- Business
- Yahoo
How the Middle-Class Can Protect Their Paychecks From Inflation in 2025
Many households are feeling the pinch at the grocery store, gas pump and beyond, as the price of everyday goods has increased by 2.5% since last year. However, with a few small shifts, it's possible to stay ahead of rising costs. Discover More: Read Next: From reviewing spending habits to parking savings into a high-yield savings account, here are ways the middle class can protect their paychecks from inflation in 2025. One of the most effective ways to stay ahead of rising costs is to have a clear understanding of your spending habits. When consumers review their expenses, they can identify unnecessary expenditures and make more informed financial decisions. 'Audit your subscriptions,' said Michael Rodriguez, certified financial planner (CFP®) and an advice-only financial planner at Equanimity Wealth. 'Most people forget half of what they're signed up for.' 'You can also reduce takeout without giving up convenience by batch-cooking or prepping meals for busy nights,' he added. 'And sharing streaming or family plans with relatives or friends can cut costs without losing access.' Find Out: In an inflationary environment, saving money isn't about putting money aside; it's about where that money lives. 'Save money from every paycheck,' said Melanie Musson, a finance expert at Clearsurance. 'Even if you only save $100, you'll build a savings account, and you'll know you have an extra $100 every month if inflation drives prices up. If you can save more, that's even better.' Consumers should prioritize high-yield savings accounts or certificates of deposit (CDs) that offer stronger returns than traditional bank accounts. Even small differences in interest rates can add up over time. 'Don't let all your cash sit in a traditional savings account,' Rodriguez said. 'Consider high-yield savings, I-Bonds, or even short-term Treasuries if you want to keep it safe but get a bit more return. 'Invest consistently. The cost of waiting can be greater than short-term inflation. Time in the market still beats timing the market.' Automating transfers on payday can help build consistency, and creating separate savings buckets for emergencies, big purchases and future goals adds structure and clarity to financial planning. When inflation hits, essentials like food and household goods are often the first to rise in price. By adopting more strategic purchasing habits, consumers can reduce costs without compromising quality or convenience. 'If inflation happens, things like food, energy and shelter will be affected the most,' said Lucia Lu, a senior business consultant at Nextpins. 'The good thing to do? Purchase in bulk.' 'Non-perishable items and household essentials such as paper towels or canned items cost less when purchased in bulk. To reduce costs on things like fresh vegetables, look into cheaper alternatives like frozen versions or store brands without giving up on quality.' When inflation rises, cutting back doesn't have to feel like a loss. By making thoughtful adjustments, consumers can reduce spending in ways that are both sustainable and satisfying. 'Cutting down doesn't have to mean sacrificing your quality of life,' Lu said. 'Try cooking at home more often, as it's typically more affordable than takeout or dining out. Reducing your grocery bill doesn't require eating less, just being smarter with meal planning and buying in-season produce.' Lu added, 'Another easy win? Use a cashback credit card to offset some everyday costs.' Managing money during inflation doesn't have to be overwhelming. There are plenty of apps designed to simplify the process. Budgeting tools like Mint, YNAB (You Need a Budget) and Rocket Money help track spending, spot trends and stay on target. For saving and investing, apps like Acorns and Digit automate small contributions that add up over time. Cashback and rebate apps, such as Rakuten, Ibotta, or Fetch, can also help consumers stretch their dollars further on everyday purchases. 'I like You Need a Budget for people who want structure and a fresh start,' Rodriguez said. 'It's great for building more awareness around spending. Empower is another one I recommend to clients who want to track net worth and cash flow in one place without overcomplicating things.' More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on How the Middle-Class Can Protect Their Paychecks From Inflation in 2025
Yahoo
14-06-2025
- Business
- Yahoo
I'm a Financial Expert: 6 Smart Ways To Build Wealth If You Just Started Your Career
If you're like most early career professionals, building wealth sounds like a challenge future you will tackle. Right now, you're in survival mode: How will rent get paid? How will you impress your boss? Unfortunately, building wealth is not something one can put off. That's because money compounds with time. And the earlier you start accruing it, the wealthier you'll eventually become. Read Next: Learn More: GOBankingRates spoke with Michael Rodriguez, CFP, founder of Equanimity Wealth, to discover smart ways early career professionals can get on the right path to building wealth. This one might sound fairly obvious — but the key word here is 'actively.' 'If your income is capped, your growth will be, too,' Rodriguez said. Avoid complacency by always searching for additional opportunities to earn a buck. Rodriguez suggested learning a skill set outside your 9-to-5 job (like blogging, tutoring or personal training) to bring in additional funds. Not only do additional skills translate to extra money by way of freelance gigs and lucrative side hustles, but they make you a more valuable employee, which ultimately can benefit you in hiring and salary negotiations. And if your specific skill set gets sharp enough, that side hustle may one day become your main hustle. Check Out: Most early career professionals aren't rolling in the dough. But because of compound interest, the earlier one starts investing, the more time their money has to grow. So try to consistently invest even just small amounts of money where you can. 'If your employer offers a 401(k) match, contribute at least enough to get the full match — think of it as free money. If you don't have access to a 401(k), a Roth IRA is a great option if you're in a lower tax bracket right now,' Rodriguez said. And don't sleep on index funds. They're low-cost and diversified, and they don't require extensive knowledge of the stock market. High-interest debt should be eliminated as quickly as possible. This is because debt compounds and will cancel out a large chunk of your earnings the longer you put it off. And the higher the interest rate, the worse off you'll be. Rodriguez recommended credit card debt be the first you tackle (if you carry it). Inevitably, freeing up monthly debt payments will give you more money to invest down the line. Additionally, paying down debt in a timely manner is key to keeping your credit score healthy — something that can save you hundreds of thousands of dollars over your lifetime. Think of automation as an idiot's guide to good habits. Or, at the very least, it means one less thing you have to think about each month. Rodriguez recommended setting up automatic transfers to your savings and investment accounts right after payday — perhaps before you even have an opportunity to see the money hit your account and are tempted to spend it. Ultimately, you want your net worth increasing over time, and small but consistent savings is key to making this happen. On the reverse side, don't forget to put routine bills on autopay so you aren't stuck paying unnecessary late fees. 'When your income increases, it's tempting to 'reward yourself' with a new car or pricier apartment. That's totally normal–but don't let your spending rise faster than your savings,' Rodriguez said. In fact, one major key to building wealth is keeping your expenses low as your income rises. Money saved can be put toward your emergency fund or investments that then compound over time. While Rodriguez acknowledged it's okay to splurge and enjoy life every once in a while, he advocated prioritizing long-term security over short-term upgrades. Don't be afraid to live below your means. For example, getting a roommate is often one of the most financially savvy moves one can make in their early years. Saving money because an article on the internet told you to do it is not going to create the same motivation that personalizing your goals will. 'Saving 'just because' is hard. Saving for a future home, early retirement or financial freedom feels different,' Rodriguez said. When you're clear on what you're working toward, you'll be more likely to stay on track. So ask yourself what you want your life to look like and how your money can help get you there. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Unreliable SUVs To Stay Away From Buying 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on I'm a Financial Expert: 6 Smart Ways To Build Wealth If You Just Started Your Career Sign in to access your portfolio
Yahoo
29-05-2025
- Business
- Yahoo
How To Protect Your Money From a Stock Market Crash at Every Age
According to a recent Allianz Life survey, 51% of Americans admitted to being worried about another stock market crash and 67% were worried that their short-term investments didn't have adequate returns to fight against inflation. Read Next: Discover Next: Since a stock market crash is a natural occurrence in market cycles, you'll want to focus on doing your best to successfully navigate one. We will explore how every age group can navigate a stock market crash without losing money in the long term and how people should react differently based on their life stage. How can you protect your money from a stock market crash at every age? If you're young enough (age 13 to 28), you don't have to worry as much about losing your money in the stock market since you have time. 'A crash isn't a reason to abandon investing altogether,' said Michael Rodriguez, certified financial planner (CFP) and owner of Equanimity Wealth. 'If you're investing for the long haul (and at your age, you should be), downturns are part of the journey.' Check Out: Staying consistent and avoiding the temptation to try to time the market will help protect your money. Since you have time on your side, you just have to focus on staying consistent and diversified. Rodriguez noted that since so much of Gen Z's investing information comes from TikTok and Reddit, you'll want to be careful about accepting investing advice. If something sounds too good to be true, it usually is. While cryptocurrency and certain stocks can feel exciting because of the potential returns, you'll want to ensure that your entire portfolio isn't in volatile assets because a market downturn could wipe out your portfolio. 'You don't need to abandon what you enjoy investing in, but add some balance: bonds, real estate (even REITs) or just plain old boring cash can help cushion the blow when markets fall,' Rodriguez explained. This generation (age 29 to 44) is still young enough not to feel the impact of a stock market crash as much since they're many decades away from retirement. 'Millennials have the ability to bear risk, they just need to develop the willingness to bear a risk and understand that they have time on their side,' said Robert R. Johnson, Ph.D., chartered financial analyst (CFA), chartered alternative investment analyst (CAIA) and professor of finance at Creighton University. 'In my opinion, millennials should not try and protect themselves from stock market corrections or crashes.' Since you're still young enough, you don't have to worry as much about market crashes because you could risk wealth creation by missing out on compound interest by avoiding investing. David Materazzi, investing expert and CEO of Galileo FX, noted that time is on your side and a stock market crash can help you. He urged millennials to keep buying through market swings by automating investing. Staying invested and buying more when prices drop can help you win in the long run. Jordan Mangaliman, advisor and owner at Goldline Financial Services, believes that when there's a stock market crash, you should invest more and buy more since the prices are much lower. This is the age group (age 45 to 60) where a stock market crash can get tricky and you'll want to start making changes to your investments to prepare accordingly. Mangaliman noted that you should consider rebalancing your portfolio to manage volatility as you approach retirement. Depending on when you plan to retire and begin distributions from your retirement accounts, you may not have the time it takes for the market to recover. Johnson believes someone in this generation should focus on establishing lower-risk equity portfolios. 'Portfolios of consistent dividend-paying stocks have been shown to do better in market downturns than growth counterparts. I would encourage investors to assemble a portfolio of high-dividend-paying stocks to reduce their risk,' he added. Materazzi shared that you shouldn't get greedy since you're close to the finish line. Instead, you'll want to balance growth with safety and Diversify. Keep some cash and short-term bonds. You don't want to be chasing hot stocks or panicking at this age. This is the age group (age 60 and older) where you're either retired or about to retire, so you can't take as many chances with your portfolio. Mangaliman admited that a stock market crash can be chaotic for your retirement experience if you're in this age group and relying on your investments for your income. 'For retirees in this age group that need a steady stream of income from their investments, it's crucial to rebalance their portfolio to reflect their financial goals,' he explained. You're not trying to grow fast because the goal is to ensure you don't run out of money. 'When a person is within a few years of retirement, say five years, they should begin to reduce their risk exposure in retirement accounts,' Johnson said. 'A large downturn in the equity markets immediately preceding retirement can have devastating effects on an individual's standard of living in retirement.' As a retiree, you should maintain a healthy allocation to ensure you have the income to cover your expenses in your golden years. Materazzi suggests keeping three to five years of living expenses in cash or short-term bonds. If you have enough money invested to cover your expenses, then you've already won and you shouldn't gamble. 'With all of the above groups, I would strongly urge them to develop an investment policy statement and establish an investment strategy that takes into account their unique circumstances and risk tolerance. The worst mistake people can make is to react and change their investment strategy as a result of market circumstances,' Johnson added. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on How To Protect Your Money From a Stock Market Crash at Every Age
Yahoo
24-05-2025
- Business
- Yahoo
5 Steps To Quit a Side Gig You Hate When You Still Need the Money
According to recent research from PYMNTS Intelligence, 41% of consumers have a side hustle these days, and 22% of those with a secondary income source cited having one to cover basic living expenses. In surprising news, the extra income accounted for 43% of the total income of someone with a side hustle. Read More: Find Out: Regarding those earning under $50,000, the side hustle accounted for 76% of total income. This research indicates that Americans rely on side gigs to get by. However, there could come a time when you no longer have the energy to balance multiple jobs. If you need your side hustle income to help out with expenses but are tired of working so much and want to quit the gig for a better work/life balance or improved mental health, there are ways to do this. Here are five steps to quit a side gig you hate when you still need the money. 'The first step is being honest with yourself about what you can realistically handle,' said Michael Rodriguez, a CFP and the owner of Equanimity Wealth. 'If you're relying on the money, you can try tapering down the gig slowly instead of quitting all at once.' You want to give yourself an adjustment period to not shock your finances. This means that you'll want to set a deadline in advance so that you don't abruptly drop a supplemental income stream that's helping you get by. This leads us to the next step. James Francis, a financial expert and CEO of Paradigm Asset Management, suggests conducting a freedom audit to determine what it would take to quit the side gig. Here are a few questions to look at: Why are your expenses so high? How much of your monthly expenses depend on the side gig? How much money do you need to cover the basic living expenses? You'll want to run the numbers to see how much of your side gig income needs to be replaced to cover your bills without stressing about getting by. Once you have the numbers clearly outlined in front of you, this could help alleviate some anxiety about dropping the income stream. 'Take a look at your spending and start trimming expenses so that your full-time income can support your lifestyle,' noted Rodriquez. You'll want to review your expenses to determine if there's any room to find some savings so you don't have to maintain two jobs to get by. At this point, you'll want to go through your monthly subscriptions to see if there's anything that can be cut or negotiated to help you save money. You may find that you're relying on $500 monthly from the side gig to get by, which you could cut from your monthly fixed costs. Sometimes, the extra funds from a side gig could lead to lifestyle inflation. Reviewing your personal spending and conducting a freedom audit will help you figure out how much money you have to make up for outside of your full-time income. You'll want to take an honest look at the real price of the extra income. You could be compromising your health and relationships by allocating this time towards your secondary gig. The harsh reality is that you could use the hours dedicated to a side gig to build wealth in other ways. Francis mentioned that many burned-out side hustlers often fail to realize that their free time is valuable. The two hours that you're putting into the side gig could be better utilized by reinvesting into a more productive activity, like learning a high-value skill or even trying to become better at your main job to get a raise. Better uses of your time are available, and you don't have to feel stuck in that second gig. The goal is to make your money work for you so that you don't always have to clock in. Francis suggests redirecting a fraction of that side income towards investments that generate passive income so that you can quit in the near future. You can invest in assets that pay dividends, conservative index funds, or fractional real estate. The goal is to build financial momentum that doesn't depend on working another shift. It may take some time to see results from your investments, but the good news is that these sacrifices can help you quit that side gig. Rodriguez concluded, 'Chasing every extra dollar isn't often worth it, especially if you're constantly exhausted or missing out on your life. Like anything you do in life, aim to find a balance that actually works for you.' More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Sources: PYMTS, 'America's Second Shift: Why Side Hustles Are Now a Financial Lifeline' Michael Rodriguez, Equanimity Wealth James Francis, Paradigm Asset Management This article originally appeared on 5 Steps To Quit a Side Gig You Hate When You Still Need the Money Sign in to access your portfolio
Yahoo
24-05-2025
- Business
- Yahoo
5 Steps To Quit a Side Gig You Hate When You Still Need the Money
According to recent research from PYMNTS Intelligence, 41% of consumers have a side hustle these days, and 22% of those with a secondary income source cited having one to cover basic living expenses. In surprising news, the extra income accounted for 43% of the total income of someone with a side hustle. Read More: Find Out: Regarding those earning under $50,000, the side hustle accounted for 76% of total income. This research indicates that Americans rely on side gigs to get by. However, there could come a time when you no longer have the energy to balance multiple jobs. If you need your side hustle income to help out with expenses but are tired of working so much and want to quit the gig for a better work/life balance or improved mental health, there are ways to do this. Here are five steps to quit a side gig you hate when you still need the money. 'The first step is being honest with yourself about what you can realistically handle,' said Michael Rodriguez, a CFP and the owner of Equanimity Wealth. 'If you're relying on the money, you can try tapering down the gig slowly instead of quitting all at once.' You want to give yourself an adjustment period to not shock your finances. This means that you'll want to set a deadline in advance so that you don't abruptly drop a supplemental income stream that's helping you get by. This leads us to the next step. James Francis, a financial expert and CEO of Paradigm Asset Management, suggests conducting a freedom audit to determine what it would take to quit the side gig. Here are a few questions to look at: Why are your expenses so high? How much of your monthly expenses depend on the side gig? How much money do you need to cover the basic living expenses? You'll want to run the numbers to see how much of your side gig income needs to be replaced to cover your bills without stressing about getting by. Once you have the numbers clearly outlined in front of you, this could help alleviate some anxiety about dropping the income stream. 'Take a look at your spending and start trimming expenses so that your full-time income can support your lifestyle,' noted Rodriquez. You'll want to review your expenses to determine if there's any room to find some savings so you don't have to maintain two jobs to get by. At this point, you'll want to go through your monthly subscriptions to see if there's anything that can be cut or negotiated to help you save money. You may find that you're relying on $500 monthly from the side gig to get by, which you could cut from your monthly fixed costs. Sometimes, the extra funds from a side gig could lead to lifestyle inflation. Reviewing your personal spending and conducting a freedom audit will help you figure out how much money you have to make up for outside of your full-time income. You'll want to take an honest look at the real price of the extra income. You could be compromising your health and relationships by allocating this time towards your secondary gig. The harsh reality is that you could use the hours dedicated to a side gig to build wealth in other ways. Francis mentioned that many burned-out side hustlers often fail to realize that their free time is valuable. The two hours that you're putting into the side gig could be better utilized by reinvesting into a more productive activity, like learning a high-value skill or even trying to become better at your main job to get a raise. Better uses of your time are available, and you don't have to feel stuck in that second gig. The goal is to make your money work for you so that you don't always have to clock in. Francis suggests redirecting a fraction of that side income towards investments that generate passive income so that you can quit in the near future. You can invest in assets that pay dividends, conservative index funds, or fractional real estate. The goal is to build financial momentum that doesn't depend on working another shift. It may take some time to see results from your investments, but the good news is that these sacrifices can help you quit that side gig. Rodriguez concluded, 'Chasing every extra dollar isn't often worth it, especially if you're constantly exhausted or missing out on your life. Like anything you do in life, aim to find a balance that actually works for you.' More From GOBankingRates Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Sources: PYMTS, 'America's Second Shift: Why Side Hustles Are Now a Financial Lifeline' Michael Rodriguez, Equanimity Wealth James Francis, Paradigm Asset Management This article originally appeared on 5 Steps To Quit a Side Gig You Hate When You Still Need the Money Sign in to access your portfolio
