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Yahoo
07-07-2025
- Business
- Yahoo
6 Things Dave Ramsey Says You Should Say ‘No' To — Does Rachel Cruze Agree?
Dave Ramsey is known for his straightforward financial advice that focuses on discipline and intentional money management. Trending Now: Check Out: In a recent YouTube video, Rachel Cruze, his daughter and a financial expert in her own right, reflects on six things Ramsey advises people to say 'no' to. She explains her take on each of these tips and whether she agrees. Lifestyle creep often happens when your income increases and your spending gradually increases to match. The danger is that without a plan, you may end up spending more as you earn more, meaning you continue to live paycheck to paycheck despite increased earnings. Cruze agrees with Ramsey that you should avoid lifestyle creep. However, she says that if you've managed to pay off your debt, build an emergency fund and save for retirement, it's reasonable to increase your spending in a controlled way. This intentional spending can enhance your quality of life without jeopardizing your financial goals. Read Next: Ramsey advises cutting out all non-essential purchases when you're struggling financially. Specifically, he discourages eating out while you are repaying debt. Cruze also encourages mindful spending and budgeting to avoid unnecessary purchases. However, she acknowledges that once your basic financial needs are met, occasional discretionary spending paid for with cash and within a budget can contribute to a balanced lifestyle. This is a clear-cut no from Ramsey: Don't buy what you can't afford. Cruze fully supports this since the debt and financial stress that result from overspending can undermine your long-term financial stability. This includes buying expensive phones you can't afford or purchasing big-ticket luxury items like boats if your finances aren't completely solid. Cruze points out that many luxury purchases depreciate over time and come with ongoing costs such as maintenance, storage and fuel that must be factored into your budget. When family members repeatedly make poor financial choices, Ramsey warns against enabling them by providing ongoing financial support. Cruze agrees and points out that while helping family is important, enabling ongoing irresponsible behavior by giving your family money does not solve the underlying problems and can harm both parties. Both Ramsey and Cruze also advise you not to take responsibility for others' lack of planning and not to feel obligated to let family move back in. Cruze acknowledges the emotional difficulty of this choice, but stresses the importance of setting boundaries, especially if you're not in a position to support parents or children without jeopardizing your own financial health. Ramsey recommends postponing vacations until you pay off debt fully, as travel expenses can divert funds from debt repayment. Cruze agrees that when aggressively paying down debt, it's best to avoid vacations that could slow your progress toward your financial goals. However, she also suggests celebrating small milestones along the way to maintain motivation, as long as these celebrations don't derail the overall goal. Trying to match other people's lifestyles, many of whom are also living paycheck to paycheck, is a financial trap that Ramsey warns against. Cruze emphasizes that comparison is exhausting and unproductive. Focusing on your own financial goals rather than trying to impress others will lead to healthier money habits, so say no to keeping up with the Joneses. Overall, Cruze agrees with most of her father's advice but adds nuance by recognizing that financial discipline doesn't mean deprivation forever. She highlights the importance of intentional spending once foundational financial goals are met and the need for balance to maintain long-term money habits. More From GOBankingRates 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on 6 Things Dave Ramsey Says You Should Say 'No' To — Does Rachel Cruze Agree? 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
04-07-2025
- Business
- Yahoo
A Couple Share How They Went From Living In Their Car To A $1 Million Net Worth: 'I Managed To Find A Low-Paying But Stable Job'
You don't have to stay where you are for the rest of your life, and a couple that went from living in their car to a $1 million net worth embodies this idea. The couple got into a bad financial situation when they were both laid off a few weeks apart in 2008. Then, with no salaries and student loan payments to make, they had to live in a car. The situation looked grim, but the couple recovered and put themselves in a good financial position. They recently shared how they did it in the Dave Ramsey subreddit. "I managed to find a low-paying but stable job," the husband explained. Don't Miss: Maximize saving for your retirement and cut down on taxes: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Here's how you can apply the couple's lessons to your financial situation so you can achieve long-term goals. The husband doesn't work at the same job he took during the Great Recession, but it gave the couple a start. That job allowed them to rent out a garage and get back on their feet little by little. There wasn't a quick and dramatic rise to the top. The couple learned about Ramsey's baby steps financial formula for getting out of debt and building wealth during this time. They took advantage of coupons and discounts wherever they could find them while living "insanely frugal." The first job you get probably won't be your dream job. It may take a few years before you earn a six-figure salary, and even that's not guaranteed. Taking a low-paying job lets you get your foot in the door. You might be chosen for internal promotions if you overachieve at your company, but job hopping is another alternative that can introduce you to a higher salary after you've built some work experience. Trending: GoSun's Breakthrough Rooftop EV Charger Already Has 2,000+ Units Reserved — The Redditor mentions that he climbed the corporate ladder for more than a decade to boost his salary. Growing your salary makes it easier to cover various costs, like student loans, mortgage payments, cars, and credit card debt. The couple is debt-free because of their commitment to climbing the corporate ladder. It's easier to play it safe and stay at a stable job, but this mentality can significantly limit your earnings. You may find better opportunities at another company, but before you consider that route, it's worth asking for a raise and seeing if you can get promoted within the company. You will have to build your network, regularly apply for new jobs, and get good at negotiating to ascend the corporate ladder over time. This couple stayed the course for more than a decade to reach their current below your means requires making some sacrifices. You may not be able to go on luxurious vacations, and buying used cars may be the norm. However, it was a key component for the couple's long-term success and happiness. Being frugal can also reduce your financial stress since you are letting fewer expenses into your life. The husband summed up the long-term benefits of his frugal lifestyle in one of the comments. "Being frugal paved the way to an amazing life with an amazing wife and two great kiddos. We spent on what we considered value add for our future and our lifestyle, and really have enjoyed life to its fullest and intend to do so. We are a family who loves to travel, be on the road, and explore new things. We are constantly on the road, doing what we love. I was able to afford this lifestyle because we are frugal and smart with money." Read Next: The average American couple has saved this much money for retirement —? Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article A Couple Share How They Went From Living In Their Car To A $1 Million Net Worth: 'I Managed To Find A Low-Paying But Stable Job' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
The Sun
04-07-2025
- Business
- The Sun
I'm in £3.7m debt but still live a millionaire lifestyle with less work – people think I'm a lunatic but it's brilliant
JUST seven years ago, Abi Hookway was a broke single mum struggling to get by. Now, the 39-year-old has totally transformed her life, building an £8 million property portfolio and a £10 million business. 7 7 7 But having said that, the Property Expert and Entrepreneur has confessed that she is in £3.7million of debt. Despite this, the mum-of-two isn't bothered by the debt and still lives a very lavish, millionaire lifestyle. Abi doesn't work a standard 9 to 5 job and people have called her a 'lunatic' as a result, but she isn't phased, as she's too busy living the dream. Posting on social media, the businesswoman, who spends £800 a month on a housekeeper and has £70,000 in savings, got candid on her financial situation. Instead of working for someone else, Abi earns money by property flipping - she buys a property, renovates it, and sells it for a profit. As she filmed directly from a concert, she said: "I'm £3.7million in debt and I sleep like a baby - honestly, it is the best time of my life right now being in so much debt. 'Most normal people would go 'oh my gosh, you're in so much debt, you're a lunatic, what are you doing?' - for me, it makes me happy. 'Why? Because my debt is good debt. It's leveraged on properties that pay for my lifestyle.' Abi then explained: 'I don't work a 40-hour a week job, I don't have a boss, I do what I want, when I want, because I've got all these houses paying passive income to me so I can do what I want in life, I can be at peace and fulfilled doing what I love most.' Abi stressed the importance of understanding how to earn passive income and knowing the difference between 'good debt and bad debt.' I racked up £15k debt - here's how I paid it off as a single mum She acknowledged: 'We're taught all debt is bad, but it's not - good debt is leveraged on assets to make you money. Figure it out.' To have debt leveraged on assets involves borrowing money specifically to acquire or invest in assets with the expectation that those assets will generate enough income or appreciate in value to not only cover the cost of the debt (interest and principal payments) but also provide a net positive return. Despite her 'debt', Abi has an £8 million portfolio, which includes buy-to-let properties, holiday homes in the Lake District and Peak District, and commercial properties. And her ambitions don't stop there, as in the next 10 years, she plans to become a billionaire. 7 7 7 How exactly did Abi get started? After finding herself consumed by 'fear and anxiety' as her credit card debt spiralled, Abi took the plunge in property flipping. Her breakthrough came during a conversation with her dentist, who admitted he'd love to invest in property but didn't have the time. Abi seized the opportunity and her dentist agreed to fund her first property flip, in exchange for a 10% return on his investment. Her first project was a neglected house in Doncaster that had been vacant for 18 months. Using her dentist's investment, Abi successfully flipped the property, paid back the loan with a 10% return and walked away with £72,000 in just six months. Abi previously told Fabulous: 'I said goodbye to my £24,000 debt, and the rest of the money was reinvested. 'I'd just made double my annual salary in less than six months, working less than six hours a week. Why wouldn't I do it again?' Now, Abi earns between £50,000 and £100,000 with every property flip. 5 Tips to Get on The Property Ladder Saving for your first property is tough, but it is possible. Here are a few steps for first-time buyers. 1. Cut back on luxuries and start saving Consistent monthly saving is the best way to accumulate enough money to get on the ladder, for a deposit and purchase fees. To do this, you need to take a look at your monthly outgoings and think about what can be cut out - holidays, new clothes, weekly takeaway. Using a savings calculator can help you to establish how long you will need to save for a deposit. Based on your income, you can figure out a realistic amount to save each month. 2. Have a realistic property search Set a budget for the property price you would like to buy, and think realistically about the location and size of your property. While we all may want that house with a view or extra bedroom, can you afford it? 3. Research Help To Buy and Shared Ownership schemes The government has introduced a few ways to help first-time-buyers get on the property ladder and they're great for those on lower incomes or to buy a property in more expensive areas like London. 4. Consider buying with another person Investing with somebody else you know is a sure way to get onto the property ladder. You only need to save half the amount you would otherwise, so you can work towards getting your property sooner. You can invest with a friend, family or partner. Naturally, it is a big step and a huge commitment so be open and honest about what you expect from living together — if you haven't already. 5. Talk to a mortgage broker and get your documents in order A mortgage broker can tell you exactly how much you can borrow for a mortgage, what you will need to pay monthly and in upfront costs. Abi added: 'My most recent deal is a three-acre plot of land used to store caravans and containers. I've got about six or seven holiday homes and four or five commercial properties. 'The next big goal is taking my business to the £100 million mark. "This year, my business should turn over around £10 million, but I want to fast-track it.' Social media users react The TikTok clip, which was posted under the username @ abihookwayproperty, has clearly left many open-mouthed, as it has quickly racked up 414,400 views. It's also amassed 20,200 likes, 121 comments and 1,036 saves. Social media users were stunned by Abi's claims and raced to the comments to share their thoughts. One person said: 'I want to do what you are doing.' Another added: 'Passive income is a game changer. Love it!'
Yahoo
28-06-2025
- Business
- Yahoo
6 Smart Ways the Middle Class Can Retire Early
Many of us want to retire early and many of us, regardless of our wants, are forced to due to health-related issues or job loss. It's best to plan on early retirement, even if you plan to keep working past the full retirement age (66 or 67, depending on when you were born). Find Out: Read Next: How can the middle class best plan for an early retirement? Consider these six expert-recommended moves to make ASAP. Anybody who wants a life that isn't gripped by ever-worsening financial crises needs to be laser-focused on eliminating high-interest debt (the kind that comes with credit cards). But middle-class folks planning an early retirement really can't afford to delay taking action here. Make eliminating high-interest debt a top priority. 'Before accelerating your savings, it's critical to address any high-interest debt, such as credit card balances or personal loans,' said Stoyan Panayotov, CFA, wealth advisor and founder at Babylon Wealth Management. 'Carrying this kind of debt can significantly hinder your ability to build wealth, as the interest charges often outpace potential investment returns.' Be Aware: It's important to be focused on saving for retirement starting the minute you start earning money, but 'saving' is a pretty vague term. You need to think about how you save, too. 'For the middle class, building wealth across three types of accounts can give you flexibility, control and serious tax advantages,' said Trevor Houston, CEO at ClearPath Wealth Strategies, LLC. Those three accounts: Tax-deferred (401(k), IRA) Tax-free (Roth IRA, HSA, cash value life insurance) Taxable brokerage 'Retiring early means you'll need flexible access to your money, especially before age 59½,' Houston said. 'Having the right mix of accounts gives you more control over how and when you withdraw funds, no matter what tax rates look like down the road.' How many companies have you worked for where you had an active 401(k) plan? What did you do with the investments in those plans when you changed jobs? Make sure you keep track of this money and ensure it's still performing optimally. 'Yes, you can leave it where it is, cash it out (with consequences) but when you bring them all together into one IRA or new employer plan, you're not just getting organized, you're taking back control and setting yourself up for a smarter, more strategic future,' Houston said. 'Some financial institutions provide cash incentives to customers who transfer or roll over their funds. We're talking a few hundred to even a few thousand dollars in real incentives just for consolidating.' As Derek Russell Munchow, CFP, managing partner at Augustus Wealth, put it, in early retirement, 'flexibility matters more than square footage.' Be open to changing your living arrangements to best support your early retirement plan. And don't wait until you retire to take action. 'Locking too much of your asset base into an illiquid home can limit your options,' Munchow said. 'Downsizing, relocating or keeping your costs low might be what unlocks your freedom years earlier.' How much do you need to retire? What's the magic number? You can figure this out by using the 4% rule — if you want to retire 'on time.' If you want to retire early, be more aggressive. 'The 4% rule in a nutshell means you can withdraw 4% of your portfolio balance at the beginning of retirement, then adjust that amount for inflation each year thereafter, with a low probability of running out of money before you die (based on historical 30-year retirement periods),' said Jake Skelhorn, partner and wealth advisor at Spark Wealth Advisors. 'However, for the middle class who want to retire early, a more conservative withdrawal rate may make sense, since their retirement period may be longer than 30 years. 'Assuming a 3.5% withdrawal rate, take your expected annual expenses in retirement, and divide by .035 to arrive at a rough estimate of your 'retirement number,' i.e. $50,000/.035 = $1,428,571,' Skelhorn said. 'If you expect to have any other fixed income sources, subtract this from your annual expense number.' When planning for retirement, early or not, it's easy to get wrapped up in the math of it all and to fixate on the elusive magic number you need to reach to ensure comfort. Remember that part of a smart retirement plan isn't just about the number. It's about your life. 'Early retirement goes beyond mathematical calculations, it's about building a life that actually means something,' Houston said. 'Your strategy should support your purpose, your relationships and the kind of freedom you want to experience, not just your bank account balance.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The New Retirement Problem Boomers Are Facing 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 6 Smart Ways the Middle Class Can Retire Early Sign in to access your portfolio
Yahoo
27-06-2025
- Business
- Yahoo
'I'm Not Sure Where to Go From Here': 27-Year-Old Asks Reddit If Moving Back Home Is Her Only Option
It's common for young adults to move out of home shortly after graduating college, especially if they spent their college years in student housing. However, living with your parents for a few years after graduating college offers several financial advantages, and a 27-year-old is considering those benefits. She graduated with an information technology degree last year but hasn't yet found a job in her field. She's currently working part-time at a fast food restaurant and feels like she is wasting her money on rent. Furthermore, she has bad credit. "I'm not sure where to go from here," she stated. Redditors offered their advice and shared their experiences with living alone and moving back to their parents' house. Don't Miss: Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can invest with $1,000 at just $0.30/share. Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Many Redditors encouraged the 27-year-old to move back home to rebuild their finances. A few people shared their success stories of moving back home and paying off debt. "I was able to create a savings [account] and have enough money to pay off a good chunk of my debt!" one Redditor explained. It's easier to build your finances when you live with your parents because you will have fewer expenses. You won't have to make monthly rent payments, and some of your other expenses will be covered as well. It also helps when multiple people can run errands like grocery shopping and laundry instead of all of those responsibilities falling on one person. Trending: The Startup Taking on $10B in Ticket Scalping Just Landed MLB, Goldman Sachs, and WestJet Execs — You Can Invest for $0.40/Share Before June 26 Some people feel embarrassed that they have to move back with their parents, especially after they enjoyed a few years of living alone. The 27-year-old may have that concern since she was worried about the post getting a lot of downvotes because she is considering moving back home in her late 20s. While young adults may hear stories about how their parents married and bought a house in their late 20s, they had an easier financial environment than Gen Z. One Redditor mentioned this in the comments so people wouldn't feel as bad about moving back with their parents or feel like they aren't progressing as much as they would like to. "The times we are in are very different from when your parents and grandparents were in their prime. Housing is not affordable; inflation and the value of the dollar places you at an insane disadvantage. Lower/Middle-class families can only get ahead by banding together. No shame in survival," one commenter you have a good relationship with your parents, moving back in with them can lead to plenty of pleasant memories. It's easy to forget that the people we cherish will eventually no longer be with us. Finances aren't the only driving force between more people living with their parents. People who love their parents may just want to spend more time with them. Some people do not move out until they get married. Other commenters suggested staying at home until you find a more stable job. "It was good to keep in touch with my parents again, help out a bit in the house until I could get my income back up and move out again," one Redditor said about their experience. Read Next: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — Now Raising at $3/Share UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'I'm Not Sure Where to Go From Here': 27-Year-Old Asks Reddit If Moving Back Home Is Her Only Option originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
