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Yahoo
4 days ago
- Business
- Yahoo
I'm a Financial Expert: 5 Reasons It Might Be Smart To Take Out a Personal Loan in Today's Economy
These days, keeping your finances on track can feel like a constant juggling act. With rising costs, fluctuating interest rates and the unpredictability of the job market, it's no surprise that people are exploring personal loans as a practical option. Check Out: Read Next: While borrowing money isn't something to take lightly, under the right circumstances, a personal loan can offer stability, flexibility and even long-term savings. GOBankingRates spoke with Andrew Lokenauth, money expert and owner of Fluent in Finance, to discuss some reasons taking out a personal loan might make sense in today's economy. From his experience as a financial advisor, Lokenauth has noticed several compelling reasons personal loans are becoming a smart move in today's economic climate. One of the biggest perks? Interest rates on personal loans tend to be lower than those of credit cards. Per LendingTree, interest rates for personal loans in June 2025 start at just 6.49%, while the average credit card APR, LendingTree reported, is 24.33%. However, the rate for a personal loan will depend upon some factors, like your credit score. Learn More: Debt consolidation is probably the most strategic use of personal loans right now. According to LendingTree, 48.7% or borrowers take out a personal loan in order to consolidate their debt or refinance credit cards. Lokenauth has helped clients combine multiple high-interest debts into a single, lower-interest payment. 'One of my clients saved about $300 monthly just by consolidating their credit card debt into a personal loan with a 10% rate,' he said. Fixed interest rates are another huge benefit in this uncertain economy. With inflation still running hot, locking in a fixed rate means your payments won't increase. According to Lokenauth, that predictability is super valuable when everything else seems to be getting more expensive. There are, however, some variable rate personal loans out there, which come with 'additional risks,' per So be sure to know what type of loan you're getting before you commit. 'Home improvements can be a smart use of personal loans right now,' Lokenauth said. Property values are still relatively high in most areas, so strategic renovations could boost your home's value. Lokenauth typically suggests focusing on kitchens and bathrooms, as they tend to give the best return on investment (usually around 70% to 80% of project costs). Using personal loans for business expansion or side hustles could make a lot of sense too. With recession fears looming, having multiple income streams is crucial, per Lokenauth. 'The key is making sure the potential return significantly exceeds the loan cost. I aim for at least a 2x return on any borrowed money used for business purposes,' he said. Lokenauth was quick to point out that your credit score matters more than ever. 'I've seen rates vary by 5-7 percentage points based on credit scores. Getting your score above 720 can save you thousands in interest over the loan term,' he said. That said, try to shop around extensively. Keep in mind that different lenders have wildly different rates and terms right now. 'I always tell my clients to get at least 5 quotes — the rate differences can be shocking. Online lenders often offer better rates than traditional banks,' Lokenauth said. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Cars That Outlast the Average Vehicle 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) This article originally appeared on I'm a Financial Expert: 5 Reasons It Might Be Smart To Take Out a Personal Loan in Today's Economy Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
17-05-2025
- Business
- Yahoo
How Does Anyone Have Money? A Guide for the Financially Confused
You know the feeling — you're scrolling through social media, and someone your same age just bought a house, adopted a golden retriever and casually remodeled their kitchen all in the same week. Meanwhile, you're wondering whether you can stretch your last $23 until payday by surviving off ramen. Money, apparently, is a thing people have. But how? Between rising costs, inconsistent income and the eternal mystery of where the heck your paycheck actually goes, it's easy to feel like you missed out on some crucial adulting class. Read Next: Check Out: If you've ever asked yourself whether you're doing it wrong, welcome. This guide is for the financially confused, the money-curious and anyone who's ever panicked at the checkout line after seeing their crazy bill. Also see the essential components of a solid financial plan. Many years ago, Andrew Lokenauth, money expert and owner of Fluent in Finance, discovered that his seemingly wealthy neighbor was actually drowning in credit card debt. 'He had the fancy car and designer clothes, but it was all smoke and mirrors,' he said. Lokenauth noted that a significant number of Americans are living paycheck to paycheck, including people making over $100,000. In fact, Gagan Saini, CEO of We Buy Houses in Central Valley, said he meets families earning $150,000-plus who live paycheck to paycheck because of lifestyle inflation, while others making $70,000 build substantial wealth through strategic habits. The difference, Saini explained, isn't always about how much you make — it's about financial education, money psychology and opportunity access. Learn More: Lokenauth started tracking every single dollar he spent. While it wasn't enjoyable at first, he stuck with it. Cutting recurring subscriptions, for example, can alleviate your wallet significantly. Another important point: Get real about your 'fun money' spending. Most people go overboard with these funds without realizing it until they can't pay their electric bill at the end of the month. 'The biggest game-changer for me was adopting the 50/30/20 rule,' Lokenauth said. Here's a breakdown of what this looks like: use 50% of your income for necessities, 30% for wants, and 20% for savings and debt. 'It's not perfect — sometimes life throws curveballs — but it's helped me build $5,000 in savings over eight months,' he said. Something people may not think of when trying to save money and build wealth is having multiple income streams. In fact, according to Benzinga, the average millionaire has seven income streams. Building multiple income streams is crucial. As a young adult, Lokenauth said he started a small side gig doing freelance work that brought in an extra $400 to $600 monthly. 'Not life-changing money, but it all adds up. Plus, it gave me some security knowing I'm not totally dependent on my main job,' he said. Negotiating your salary isn't just a nice-to-have skill. It's a nonnegotiable if you want to build long-term financial stability. Yet, many people avoid it out of fear, discomfort or a lack of preparation. 'I used to be terrible at this — like seriously awful,' Lokenauth said. But after bombing three salary discussions, he said he finally learned how to do it right. He said he received a $20,000 raise by documenting his wins and practicing his pitch until it felt natural. Keep in mind: Negotiating isn't about being pushy; it's about advocating for your worth and normalizing a conversation that should be part of every professional's toolkit. Understanding the reality of wealth distribution — and taking concrete steps to improve your situation — can seriously help break the cycle of feeling perpetually broke. 'Remember this isn't about becoming a millionaire,' Lokenauth said. It's about building stability, creating a buffer between you and disaster, and maybe, just maybe, getting to a place where you're not checking your bank account before every purchase. 'One last thing — comparison is the thief of joy — and financial sanity,' Lokenauth said. That's why you should focus on your own progress. Remember: Those people posting vacation pics from the Maldives might be charging it all to credit cards anyway. More From GOBankingRates What $1 Million in Retirement Savings Looks Like in Monthly Spending These 10 Used Cars Will Last Longer Than an Average New Vehicle 5 Little-Known Ways to Make Summer Travel More Affordable How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Andrew Lokenauth, Fluent in Finance Gagan Saini, We Buy Houses in Central Valley Benzinga, 'The Average Millionaire Has 7 Sources Of Income – Here Are 3 You Can Start Building Today.' This article originally appeared on How Does Anyone Have Money? A Guide for the Financially Confused 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
17-05-2025
- Business
- Yahoo
How Does Anyone Have Money? A Guide for the Financially Confused
You know the feeling — you're scrolling through social media, and someone your same age just bought a house, adopted a golden retriever and casually remodeled their kitchen all in the same week. Meanwhile, you're wondering whether you can stretch your last $23 until payday by surviving off ramen. Money, apparently, is a thing people have. But how? Between rising costs, inconsistent income and the eternal mystery of where the heck your paycheck actually goes, it's easy to feel like you missed out on some crucial adulting class. Read Next: Check Out: If you've ever asked yourself whether you're doing it wrong, welcome. This guide is for the financially confused, the money-curious and anyone who's ever panicked at the checkout line after seeing their crazy bill. Also see the essential components of a solid financial plan. Many years ago, Andrew Lokenauth, money expert and owner of Fluent in Finance, discovered that his seemingly wealthy neighbor was actually drowning in credit card debt. 'He had the fancy car and designer clothes, but it was all smoke and mirrors,' he said. Lokenauth noted that a significant number of Americans are living paycheck to paycheck, including people making over $100,000. In fact, Gagan Saini, CEO of We Buy Houses in Central Valley, said he meets families earning $150,000-plus who live paycheck to paycheck because of lifestyle inflation, while others making $70,000 build substantial wealth through strategic habits. The difference, Saini explained, isn't always about how much you make — it's about financial education, money psychology and opportunity access. Learn More: Lokenauth started tracking every single dollar he spent. While it wasn't enjoyable at first, he stuck with it. Cutting recurring subscriptions, for example, can alleviate your wallet significantly. Another important point: Get real about your 'fun money' spending. Most people go overboard with these funds without realizing it until they can't pay their electric bill at the end of the month. 'The biggest game-changer for me was adopting the 50/30/20 rule,' Lokenauth said. Here's a breakdown of what this looks like: use 50% of your income for necessities, 30% for wants, and 20% for savings and debt. 'It's not perfect — sometimes life throws curveballs — but it's helped me build $5,000 in savings over eight months,' he said. Something people may not think of when trying to save money and build wealth is having multiple income streams. In fact, according to Benzinga, the average millionaire has seven income streams. Building multiple income streams is crucial. As a young adult, Lokenauth said he started a small side gig doing freelance work that brought in an extra $400 to $600 monthly. 'Not life-changing money, but it all adds up. Plus, it gave me some security knowing I'm not totally dependent on my main job,' he said. Negotiating your salary isn't just a nice-to-have skill. It's a nonnegotiable if you want to build long-term financial stability. Yet, many people avoid it out of fear, discomfort or a lack of preparation. 'I used to be terrible at this — like seriously awful,' Lokenauth said. But after bombing three salary discussions, he said he finally learned how to do it right. He said he received a $20,000 raise by documenting his wins and practicing his pitch until it felt natural. Keep in mind: Negotiating isn't about being pushy; it's about advocating for your worth and normalizing a conversation that should be part of every professional's toolkit. Understanding the reality of wealth distribution — and taking concrete steps to improve your situation — can seriously help break the cycle of feeling perpetually broke. 'Remember this isn't about becoming a millionaire,' Lokenauth said. It's about building stability, creating a buffer between you and disaster, and maybe, just maybe, getting to a place where you're not checking your bank account before every purchase. 'One last thing — comparison is the thief of joy — and financial sanity,' Lokenauth said. That's why you should focus on your own progress. Remember: Those people posting vacation pics from the Maldives might be charging it all to credit cards anyway. More From GOBankingRates What $1 Million in Retirement Savings Looks Like in Monthly Spending These 10 Used Cars Will Last Longer Than an Average New Vehicle 5 Little-Known Ways to Make Summer Travel More Affordable How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Andrew Lokenauth, Fluent in Finance Gagan Saini, We Buy Houses in Central Valley Benzinga, 'The Average Millionaire Has 7 Sources Of Income – Here Are 3 You Can Start Building Today.' This article originally appeared on How Does Anyone Have Money? A Guide for the Financially Confused 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
30-03-2025
- Business
- Yahoo
4 Things the 1% Are Doing With Their Investment Portfolios in 2025
The investment world is looking a little different these days — especially for the 1%. While most of us are still figuring out how to grow our portfolios, the top earners are already ahead of the game, making some pretty smart (and sometimes risky) moves. 'I'm seeing some interesting trends emerge,' said Andrew Lokenauth, money expert and owner of Fluent In Finance. 'The thing is, the 1% are making moves that most regular investors haven't caught onto yet.' Read Next: Check Out: If you're curious about what they're up to, read below to see what the most affluent are up to, according to an expert. 'I just helped a client put $25 million into early-stage AI companies that aren't publicly traded,' Lokenauth said. He said the returns he is seeing are insane — like 300% in under 18 months on one deal alone. But here's what most people don't know: These deals are typically hidden from regular investors. Find Out: The wealthy aren't buying luxury homes anymore, according to Lokenauth. Instead, they're snatching up industrial warehouses and data centers. 'Last month, I structured a deal for a $40 million warehouse purchase that's already generating a 12% annual yield,' he said. He explained that this is way better than the standard 3% to 4% from residential properties. Lokenauth's clients are putting serious money into alternative investments. One of his clients bought a Basquiat piece for $2.1 million. 'Seemed crazy at the time, but it's worth about $3.5 million now,' Lokenauth said. He noted these assets tend to hold value even when markets crash. He explained that the really smart money is also investing in water rights. 'Sounds boring, but I helped a client acquire water rights in the Southwest that've gone up +80% in value. Climate change is making water increasingly valuable,' he said. Additionally, Lokenauth is seeing the ultra-wealthy quietly accumulate cryptocurrency, even if the rest of the population isn't sure about the alternative investment. According to the Pew Research Center, the majority of Americans aren't confident in the safety and reliability of crypto. But that's not stopping the ultra-wealthy. They're not buying bitcoin, though, per Lokenauth. Instead, they're focused on infrastructure plays and private blockchain companies. 'Much smarter strategy,' he said. The smartest thing Lokenauth is seeing wealthy investors do is geographic diversification. They're spreading assets across different countries and jurisdictions. And it's not just for tax reasons. It's about protecting against political instability too. They're also protecting their wealth with insurance. 'Private placement life insurance is becoming huge. It's a tax-efficient way to invest in almost anything. The structures we use can save millions in taxes. But you won't hear financial advisors talk about this because the minimums are usually around $5 million,' Lokenauth said. With all the types of investments the wealthy are getting into, there must be some they're also avoiding. Traditional bonds aren't popular right now, as the yields just don't make sense with inflation, according to Lokenauth. Instead, he said they're using structured notes and private credit deals that can pay 15% to 20% annually. They're also staying away from traditional mutual funds. The fees eat too much return, Lokenauth explained. 'My clients are either going totally passive with ultra-low-cost ETFs or super active with direct investments and hedge funds. Nothing in between,' he said. Commercial office buildings are also completely off the table. Lokenauth said he had clients who owned prime office space in major cities, but they've all sold. Remote work changed everything. 'Those buildings are going to be empty for years,' he said. The key thing to remember, according to Lokenauth, is that the 1% have access to deals and strategies that most investors never see. But by watching their moves, you can often find similar opportunities in the public markets. That's where the real edge comes from. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 12 SUVs With the Most Reliable Engines 4 Things You Should Do if You Want To Retire Early 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on 4 Things the 1% Are Doing With Their Investment Portfolios in 2025 Sign in to access your portfolio
