Latest news with #financialgoals
Yahoo
6 hours ago
- Business
- Yahoo
Making $25K A Month At 23 — But Still Wondering When The Money Enjoyment Starts
Many ambitious young adults save their money and put it to work in various investments. Financial discipline will give you more choices later in life, but some people feel like they can't enjoy any of their money in their 20s. A 23-year-old finds himself in this situation despite earning $25,000 per month after taxes. He has a girlfriend and is planning to propose to her before he turns 25. He's even debt-free, excluding a $1,000 monthly payment for his Hyundai Santa Fe. Those payments end in 2028. He has a $500,000 net worth, excluding his vehicle, and he even has a rental property. To top it all off, he's only paying $350 per month in rent and lives in a country with a low cost of living. Despite the strong financial advantage, he doesn't feel ready to enjoy any of his money. Don't Miss: Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM— $100k+ in investable assets? – no cost, no obligation. "When is it safe for me to 'splurge' and stop overthinking about investments all the time?" he asked on Reddit. Several high earners jumped in the comments and shared their thoughts about enjoying some of their money while building long-term wealth. Find Your Balance Spending all of your money will prevent you from making any progress with long-term financial goals, but if you penny-pinch your entire life, you may not live a fulfilling life. The 23-year-old seems to have financial discipline, but it may be worth spending some money from time to time. The 23-year-old should consider all of the ways that he wants to spend money. He's mentioned a $73,000 Porsche and a $400,000 house as the two things he wants to splurge on in the future. The Porsche is a splurge since it's not essential. However, a $400,000 house will be valuable when the 23-year-old wants to start a family. He may want to consider buying the house after he has confirmed that his girlfriend is the one and married her. He can still spend money on some things, like one or two vacations per year, depending on his preferences. He has the money to afford many expenses, and with strong financial discipline, he can enjoy life while building his portfolio. Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can Keep Investing And Building Your Income Many Redditors encouraged the 23-year-old to continue investing and building his income. Continuing to build his finances shouldn't discourage him from spending money on things that he enjoys. It's tremendous to see a 23-year-old earning $25,000 per month after taxes, and if he got that far, chances are he can scale his income higher. We don't know any details about his e-commerce business, but it is good to capitalize on the opportunity while it's hot. Some e-commerce businesses get replaced by Amazon (NASDAQ:AMZN) knock-offs, while others see a sudden drop in traffic due to one of Google's SEO updates. The e-commerce business owner shouldn't kick back and relax, but he can spend some of his money on things that he enjoys. It's undeniable that he is ahead of his peers. He should keep doing what he's doing while purchasing some of the things that he wants to Happens After The Splurging? The 23-year-old only has two big splurge purchases in mind. The house makes sense when he's married. He may want to get the Porsche right before getting married, since those plans may change upon getting married. Some people dream of getting supercars but opt against them after they get married and have kids. It all depends on how much he wants the Porsche because money isn't an issue. However, he may not have much splurging left after a car and a house. He has mentioned vacations, but his annual vacation bills likely won't be anywhere close to the $73,000 Porsche he's looking at. You don't have to spend money to have a good life, and you don't have to spend more than what you make each month. The e-commerce business owner is in a good spot and may want to enjoy some of his money. However, it's important for him to invest more than he spends. Given his income and living costs, that is a realistic goal. Read Next: Many are using retirement income calculators to check if they're on pace — 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? (AMZN): Free Stock Analysis Report This article Making $25K A Month At 23 — But Still Wondering When The Money Enjoyment Starts originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Reuters
16 hours ago
- Business
- Reuters
BBVA's quarterly net profit falls on peso, lower lending income
MADRID, July 31 (Reuters) - Spain's BBVA ( opens new tab on Thursday said its second-quarter net profit fell 2% as the depreciation of the Mexican peso and weaker lending income overshadowed gains in its Spanish operations. The euro zone's fifth-largest lender by market value reported a net profit of 2.75 billion euros ($3.14 billion) for the April-June period, exceeding analysts' expectations of 2.37 billion euros in a Reuters poll. BBVA's return on tangible equity (ROTE) rose to 20.4% from 20.2% in March, marking the highest profitability among listed Spanish banks. BBVA reiterated its forecast of achieving a profitability level of around 20% by the end of 2025. It also announced new financial goals for the 2025-2028 period, where it expects to earn an accumulated net attributable profit of around 48 billion over four years and reach an average current ROTE of around 22% during this period. BBVA, alongside peer Santander ( opens new tab, has relied on Latin American markets to offset pressure from lower interest rates in the euro zone. But BBVA now wants to reduce its exposure to emerging markets with an around 14 billion euros bid for smaller rival Sabadell ( opens new tab. Net interest income, a metric representing the difference between earnings on loans minus deposit costs, fell 4% year-on-year in the quarter, to 6.21 billion euros, slightly below analysts' forecasts. In Mexico, net profit fell 12% year-on-year, though underlying trends remained positive, despite a challenging economic environment due to persistent uncertainty surrounding the trade policies of the U.S., Mexico's top trading partner. In Mexico, net profit dropped 12% year-on-year due to economic uncertainty stemming from U.S. trade policies, despite positive underlying trends. However, net profit in Spain rose 6%, driven by loan growth, while Turkey saw a 23% increase in net profit, buoyed by an 85% rise in lending income. BBVA maintained its guidance for Turkey, forecasting net profit to close 2025 at slightly below 1 billion euros. ($1 = 0.8747 euros)
Fast Company
16 hours ago
- Business
- Fast Company
Not spending is trending
In 2025, if you're still relying on spreadsheets and sheer willpower to manage your budget —what are you doing? Tightening the purse strings is now in vogue as concerns about tariffs, inflation, job security and market volatility prompt many to pare back their spending, increase their savings, and, naturally, post about it on social media. These days, if you've trained your algorithm well enough, a cursory scroll should be enough to curb any lingering shopping impulses. In 2024, ' loud budgeting ' encouraged people to be unapologetically vocal about their financial goals. Earlier this year, everyone started 'revenge saving,' a counter to the 'revenge spending' that took off post-pandemic. 'No Buy July,' is the latest, catchier, iteration of the 'no-spend' challenges that have been around for years. The idea is simple: use the money you'd spend on takeaway coffee and other small indulgences to pay down debt, build up savings, or reach some other financial goal. Bonus points if you post about it on social media for added accountability. If you're truly masochistic, one creator recently went viral for sharing another controversial budgeting technique. 'Recording myself saying things I wanna impulse buy instead of buying them,' read the video's closed captions. The goal? 'To save money and make me hate myself.' This one is yet to catch on. There's a reason so many people are turning to saving challenges to hold each other accountable right now. Saving money is challenging at the best of times. For some, it's easier to say 'I'm doing No Buy July' than 'I can't afford that coffee right now.' The trends aren't all talk. The U.S. personal saving rate —the percentage of disposable income saved after taxes and spending—has risen to 4.5% in May, according to Bureau of Economic Analysis data. That is slightly down from 4.9% in April, but up significantly from 3.5% in December. The uptick coincides with growing anxiety, with a recent Santander Bank survey reporting 40% of Americans are more worried about emergency savings than at the start of the year, with 50% concerned about a recession and 53% about inflation. At the same time, the average length of unemployment is now over five months, one month longer than it was last year . The popularity of these saving challenges isn't simply a case of people jumping on the latest trend. It reflects many American's economic reality. The Consumer Price Index has shot up by 24% since 2020. Moreover, prices don't look like they'll drop anytime soon. As President Trump barrels toward his latest tariff deadline, the overall U.S. tariff level is now the highest its been since the 1930s and while prices have been largely stable, they are projected to increase.
Yahoo
19 hours ago
- Business
- Yahoo
5 ways a financial advisor can help you reach your goals in 2025
Many people start the year with ambitious goals: Pay down debt, invest more and save for an emergency fund. But without the right help and resources, achieving those goals can feel nearly impossible. And halfway through the year, you may feel like you're falling behind. Thankfully, you don't have to do it alone. A financial advisor can help. Approaching your goals with a strategic financial plan can set you up for success. A skilled financial advisor can help you navigate the intricate web of investments, savings and budgeting to help you reach your goals. Compare advisors: Bankrate's list of the best financial advisors 1. Setting clear financial goals One of the biggest benefits of working with a financial advisor is the opportunity to set clear and achievable financial goals tailored to your unique situation. Maybe you're planning to finally buy your dream home in 2024. A financial advisor can break down this goal into actionable steps, considering factors like your current income and existing debts. They can explain the impact of interest rates on your mortgage payment and how to build up a home repair emergency fund. Advisors can often help connect you with other local professionals, too, such as a mortgage broker or even a real estate agent. 2. Creating an investment strategy Navigating the world of investments can be tricky. A few innocent mistakes can have long-lasting impacts on your portfolio's performance, and potentially put your retirement savings in jeopardy. A financial advisor can help you cut through the noise and develop an investing strategy that fits your objectives and risk tolerance. Consider a scenario where you aim to retire comfortably in 20 years. You've saved some money but you know you need to boost your contributions. You're unsure how much to save each year to reach your target, or the right investments to choose to maximize your potential returns. An advisor might recommend a mix of retirement accounts, such as a 401(k) and a Roth IRA, tailored to maximize tax advantages and long-term growth. They may also diversify your investment portfolio to mitigate risk, balancing stocks, bonds and other assets to align with your retirement timeline. Learn more: How to build a financial plan for you and your family 3. Creating an emergency fund and budget Life is unpredictable, so having a robust emergency fund is essential for financial security. Yet many people struggle to build up a financial safety net. Less than half (46 percent) of U.S. adults have enough emergency savings to cover three months of expenses, according to Bankrate's 2025 Emergency Savings Survey. A financial advisor can analyze your situation and determine the right size for your emergency fund based on your lifestyle and expenses. They can help you create a budget so you can clearly identify places to cut costs so you can divert that money to your rainy day fund. For example, if you're a freelancer or self-employed professional with irregular income, your advisor might suggest maintaining a larger emergency fund to cover potential income gaps. They can recommend the best high-yield savings accounts for easy access, ensuring you're financially prepared for unexpected expenses. 4. Eliminating debt Debt is a significant roadblock for many Americans. Whether it's student loans, credit card debt or a mortgage, a financial advisor can devise a tailored debt payoff plan to help you become debt-free in 2025. Consider a scenario where you have multiple high-interest credit card debts. Your advisor might recommend a debt consolidation strategy, combining your debts into a single, lower-interest loan. This could simplify your finances while reducing the overall interest you'll pay over time. An advisor will also ensure you don't fall prey to sketchy 'debt relief' companies that are notorious for making promises they can't keep. These companies often offer 'a quick fix' for your debt problems but may engage in illegal conduct, like charging fees before obtaining any settlements, according to the Federal Trade Commission. 5. Adjusting your financial plan Your financial landscape is dynamic, and your personal circumstances will change over time. When you're navigating a new stage of life, getting trustworthy and unbiased advice is priceless. A financial advisor provides ongoing support by conducting regular check-ins to assess your progress, adjust strategies and address any changes in your goals or financial situation. If you're expecting a major change this year — like getting married or starting a business — your financial advisor can guide you through these transitions. They might adjust your investment strategy, update your insurance coverage or reallocate resources to ensure your financial plan stays on track. Get started: Match with an advisor who can help you achieve your financial goals How to find a financial advisor in 2025 Technically, anyone can call themselves a financial advisor. You'll need to do some research to ensure potential candidates are fit for the job. But how do you select the right financial advisor? First, make sure the advisor is a fiduciary. A fee-only fiduciary is a professional that's ethically bound to work in your best interest — not the interests of insurance companies or financial institutions. They'll provide unbiased, personalized advice that you can trust. Online databases from organizations like the CFP Board and XY Planning Network can help you find qualified financial advisors in your area and narrow down your search. You should also check an advisor's background and credentials. A good place to start is BrokerCheck from the Financial Industry Regulatory Authority (FINRA). Here, you can research professionals who sell securities, provide advice or both. It offers an overview of an advisor's work history along with their firm's history. Finally, interview potential advisors to gauge their investment approach and experience. Make sure your communication styles align. Advisors can get compensated in several ways, so make sure you understand how a professional is paid and that the price fits your budget. Bottom line In the complex world of personal finance, a skilled financial advisor can be your ally in achieving your goals in 2025 and beyond. From setting clear objectives to crafting personalized investment strategies, their expertise can provide a roadmap for your financial success. 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
6 days ago
- Business
- Yahoo
How This Financial Influencer Finished Saving for Retirement at 31
The steps to take toward saving for an early retirement might be simpler than you imagine. Financial influencer Shang Saavedra shared in an Instagram post how she finished investing for retirement at 31 and explained that anyone can also be an investor if they understand a few key topics. Check Out: Explore More: She said it took an understanding of just a handful of concepts to achieve her retirement goals. Invest In What You Know and Love Similar to the old adage of 'Write what you know,' this piece of advice focuses on starting with what you're familiar with and where your interests lie. Investor Peter Lynch popularized this philosophy that's rooted in your own intuition and familiar companies. Saavedra said a Wall Street executive Janet Hanson went to her college class and yelled into a microphone, 'You already buy things you love. So why not invest in what you love?' Find Out: Learn How a Company Makes Money 'If you don't believe someone can make money… then don't invest in it,' she said. She pointed out that this idea isn't always intuitive. She gave the example of rental car companies, which may make a lot of their money from selling cars. Having this knowledge can help you make empowered financial decisions. And remember, every company has a business plan, so familiarize yourself with its ins and outs. Understand the Difference Between a Bond and a Stock A bond is debt, while a stock is ownership in a company's profits, Saavedra said. They represent two fundamentally different types of investments with stocks coming with the potential for higher growth but also greater risk. Bonds generally have more predictable returns with less risk. This basic knowledge is very important, she said, because they are the two largest asset types you can invest in. Read, Read and Read Some More Saavedra spends 30 minutes reading various newspapers every day. 'All of the best investors I know read voraciously,' she said. Warren Buffett spends 80% of his day reading, according to Inc., and he has suggested people read 500 pages a day to achieve similar success as him. Know That No One Always Gets It Right While investors can avoid making some big mistakes, Saavedra reminded followers that 'no one can predict the future.' For instance, even seasoned investors could not have detailed the economic situation under President Donald Trump's administration. The hard part of investing is making decisions without having all the information. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 4 Affordable Car Brands You Won't Regret Buying in 2025 I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on How This Financial Influencer Finished Saving for Retirement at 31 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
