Latest news with #moneymanagement
Yahoo
2 days ago
- Business
- Yahoo
60 Financial Goals To Achieve Before You Turn 60
Setting financial goals can help you establish good money habits. While short-term goals can get you started, long-term goals lead to wealth. For You: Trending Now: Having a good grasp of your finances gets more important as you get older and move closer to retirement. Even if you plan to work forever, it's possible that you may no longer be able to work due to a physical or medical condition. That's why it is good to stockpile money and make smart decisions now instead of playing catch-up a few years later. These are some of the financial goals you should achieve before you turn 60. 1. Have no credit card debt 2. Pay off your mortgage 3. Make sure you never spend more than you earn each month 4. Pay off any personal loans and auto loans 5. Put yourself in a position where you no longer need to take out debt Check Out: 6. Your net worth should be at least 25 times your annual salary 7. Invest at least 10% of your paycheck and gradually increase this number 8. Invest in a diversified portfolio that includes stocks in various sectors. A few ETFs are sufficient. 9. Invest enough money in your children's 529 to cover college tuition. You can start with $100 per month. 10. Have one investment that you have held for at least one decade to avoid emotional investing. 11. Invest in career skills that allow you to double your income over time 12. Start a small business or a side hustle and commit to it for at least one year 13. Learn negotiating skills and ask for a raise at least three times before you turn 60 14. Continue applying for new jobs so you can job hop if needed and create more leverage in negotiations 15. Create a retirement plan so you know when to retire or switch to part-time work 16. Have an emergency fund that can cover at least one year of living expenses 17. Diversify your investments across multiple sectors 18. Gradually move some capital out of high-risk assets and put them into stable, low-risk assets 19. Invest in assets that generate cash flow 20. Don't log into your stock portfolio for one week and monitor how you feel about your investments 21. Renovate your home 22. Update your appliances 23. Allocate money for home maintenance projects in a separate savings account 24. Update major parts of the home, like the roof and HVAC system, before retiring 25. Consider a good home warranty 26. Ensure you use auto payments to avoid any late payments 27. Pay off all of your debt to boost your credit utilization ratio 28. Avoid taking out new debt when you get older 29. Keep your old accounts open 30. Create a budget that keeps you on track 31. Commit to staying disciplined for your financial success for many years 32. Track your expenses every month 33. Stop impulsive spending by deciding how you will spend your money 34. Avoid negative self-talk when it comes to finances and life in general 35. Establish why you want to outperform others and make more money and, if needed, periodically adjust this purpose as your life changes 36. Max out the contributions to your 401(k) and IRA plans, including catch-up contributions 37. Strategize how you will withdraw funds from your retirement accounts to minimize the tax impact 38. Create an IRA in addition to your employer's 401(k) plan 39. Create a solo 401(k) if you are a business owner who doesn't have employees 40. Review your portfolio each year to ensure it aligns with your risk tolerance and long-term goals 41. Determine which expense categories matter the most to you 42. Ruthlessly cut out expenses that do not align with spending categories that do not increase the happiness of you or your loved ones 43. Live below your means 44. Spend what is left over after investing and saving instead of saving what's left over after you spend money 45. Don't feel guilty about buying something that has a meaningful, long-term positive impact on your life 46. Create a will 47. Speak with a professional about estate planning 48. Establish trusts to avoid probate 49. Determine your power of attorney 50. Choose your beneficiaries 51. Put your extra money in a high-yield savings account that has a 3.00% APY or higher 52. Comparing banking apps to determine which one builds your wealth the most 53. Review your bank's resources and make sure you are maximizing them 54. Set up automations like AutoPay and auto-invest 55. Streamline your finances so you can easily access your investments, bank accounts and other financial products 56. Review your policies to ensure you have enough coverage 57. Check your policies to see which ones still make sense for your financial profile 58. Get good health insurance 59. Determine which assets you want to protect the most 60. Protect your loved ones with a good insurance policy More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 10 Cars That Outlast the Average Vehicle Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck This article originally appeared on 60 Financial Goals To Achieve Before You Turn 60
Yahoo
3 days ago
- Business
- Yahoo
My fiancé and I make a combined $300,000 a year. We use a 90/5/5 budgeting system — here's a detailed breakdown.
Viviana Vazquez and her fiancé make over $300,000 between their tech jobs and her content creation business. Leading up to their wedding, they combined the majority of their finances while keeping 10% of their income separate. They have "money dates" twice a week to make sure they're on track with their budget. When my fiancé Xavi and I first started dating, we never talked about money — not because we didn't want to, but because we didn't know how. Like so many first-generation college students, we grew up watching our families survive, not plan. Money was stressful and, oftentimes, shameful. I also avoided talking about money with Xavi because I was embarrassed about growing up poor. I knew we weren't on the same socioeconomic level; he went on yearly family vacations while I worked to help my parents with rent. When our relationship got serious, though, I knew we had to have the conversations our parents never had and figure out how we, as a team, wanted to manage our money. Today, between our 9-to-5 tech job salaries and my content creation business, we make over $300,000 a year combined. We've built a financial system that supports our shared goals and our individual freedom. After almost 9 years together, we're getting married in August and decided to combine our finances at the beginning of this year. We wanted to give ourselves time to try out this new method and set up the structure we plan to use long-term. Our foundation is already solid; we did the hard part before marriage, which we're really grateful for. Here's exactly how we decided to combine finances, and why it's one of the best decisions we've ever made for our relationship. Before, we were doing what most couples do by default: splitting shared expenses like rent 50/50. It was functional, especially since we had similar incomes, but it wasn't future-focused. It felt transactional instead of collaborative. We realized that if we wanted to grow faster financially, we needed to shift from individual money management to a team approach. We spent months talking through all the different ways couples handle money: Combine everything into one joint checking account and one joint savings account Keep everything separate — it's worked for 8 years, so why not continue? Combine some (to cover our shared bills) and keep the rest separate Split things based on income instead of 50/50 We discussed the pros and cons of each and ultimately decided on a hybrid system that works beautifully for us: 90% of our 9-to-5 income goes into a shared pool in a joint checking account and a joint high yield savings account (HYSA), and 5% of our combined income stays in each of our separate HYSAs. My content creation income is budgeted separately and is used only for growing my business. 90% of my paycheck and 90% of Xavi's paycheck flow into our joint SoFi account. We're both maxing out our 401(k) accounts this year, which come straight out of our paychecks. From there, we allocate our take-home pay like this: Savings — our first priority is always to save at least 20% of our take-home pay. Our HYSA has multiple buckets, including an emergency fund, a Roth IRA fund, a travel fund, our wedding fund, and a holiday fund. Fixed expenses — this includes rent, utilities, wifi, car payment, and money to my parents. Variable expenses — these are expenses like beauty and eating out that change every month, depending on if we're traveling or have more social events on the calendar. We were able to finish saving for our wedding, which we budgeted $20,000 for, earlier this year by putting aside anywhere from $200 to $1,000 a month. By the end of May, we had saved over $30,000, adding some extra cushion in anticipation of additional financial assistance needed by several family members. Before getting married, we made sure to discuss several important financial topics, including how to approach financial support for our families. We decided that we would both take on that expense, as long as we're able to afford it. We especially want to do this because my parents help us a ton in non-financial ways, such as dog sitting, caring for us when sick, and checking in often. We set up 5% of my paycheck and 5% of Xavi's paycheck to flow into each of our accounts to be equitable. There are no rules about what we do with this money. We can spend it on anything we want, whether that's extra individual savings, donations, or surprise gifts for each other. This way, we stay aligned on the big picture while still allowing each of us space to save or spend a "fun" amount freely without needing to check in with the other. We have specific rules we follow to keep managing our finances as stress-free as possible: 1. No surprise purchases from the shared account. We budget before we spend. If a purchase isn't already budgeted, we check in and have a conversation about it. 2. We both have access to the joint account. Transparency is necessary if you're a team. 3. Personal accounts are personal. I don't ask about his personal activity, and he doesn't ask about mine, although we always share our money activity with each other anyway. 4. We have "money dates" twice weekly. Every week, we take 30 minutes to sit down and update our budget to make sure we're still on track to spend as we planned. If we're overspending, we make adjustments to our budget together. 1. Talk early and often. Don't wait until you move in together or get engaged; talk about money early on because your financial goals will most likely evolve as your relationship does. 2. There's no one "right" or "wrong" way. The 90/5/5 split works for us, but other couples thrive with a different setup. What matters is that you both feel safe and seen in whatever system you create. 3. Remember that money can be emotional. Depending on how you grew up, your relationship with money (or your partner's) can be deeply tied to your identity, values, and trauma. Be kind to each other and first ask: "What did money look like growing up in your household? Was your first money memory positive or negative?" 4. Use tools that make it easy. We use SoFi for joint banking, Ally for HYSA, and a budget template for budgeting. Do your research and explore accounts that work for you and your partner's needs. 5. There's no room for control, just collaboration. Combining finances shouldn't be about controlling each other. Instead, it's about trusting each other to build the financial life you both want to live, together. It isn't about who makes more or less; it's about building a life together in which money gives you the ability to achieve your individual and collective dreams. As two first-gen kids, combining finances was never a numbers decision — it was us continuing to break the cycle. We're both extremely proud of the wealth we've built separately, and can't wait to now build wealth together, one money date at a time. Viviana Vazquez is a 29-year-old senior content marketing manager who is documenting her journey on social media. Do you have a story to share about how you and your partner manage money together and separately? Contact this editor, Jane Zhang, at janezhang@ Read the original article on Business Insider
Yahoo
7 days ago
- Business
- Yahoo
Think you know the basics of retirement planning? Think again. ‘There's a lot of ignorance out there.'
For years, Jim Sexton has led financial-education classes at a local library. He's often struck by gaps in attendees' knowledge of retirement planning. 'Very few people understand what they need to know to help them prepare financially for the future,' said Sexton, a certified financial planner in Hudson, Ohio. 'There's a lot of ignorance out there about financial planning and retirement.' Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. 'I'm at my wit's end': My niece paid off her husband's credit card but fell behind on her taxes. How can I help her? 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? As Trump blasts Fed to lower rates, it's the bond market in need of convincing I'm 51, earn $129K and have $165K in my 401(k). Can I afford to retire when my husband, 59, draws Social Security at 62? He administers a five-question 'retirement fluency' test to help pre-retirees assess their knowledge. The results prove his point: many people lack a basic understanding of money issues. For example, in Sexton's test, only 30% of respondents know how much of one's healthcare expenses in retirement are, on average, covered by Medicare and other government programs. The answer: about two-thirds. When it comes to money matters, ignorance is costly. As you age, your margin for error tightens up: You no longer have another few decades to earn income from work to offset any misguided (or disastrous) financial decisions. Aside from lacking a long-term horizon to make up for your mistakes, you need to lean on your own resourcefulness and knowledge to navigate financial uncertainties that can upend retirement. Examples include managing your investments to withstand ever-volatile markets, rebalancing your portfolio so you don't outlive your money and exercising sound, informed judgment amid aggressive attempts to sell you everything from annuities to Medicare Advantage plans. Read: I'm 55 with a state pension in my future. Do I have to save as much as other people? Social Security is another frequently misunderstood topic, Sexton said. Pre-retirees may overlook the 8% increase in benefits they get each year by delaying Social Security past their full retirement age (until they reach 70). 'They know that Social Security benefits are taxable,' he said. 'But they may not know claiming strategies or how benefits are calculated.' As you near retirement, you should receive a Social Security statement in the mail. It explains in plain English how Social Security works. A bar graph shows how much money you might collect based on when you claim benefits. Even well before retirement, workers should make sure they have registered for a my Social Security account as the agency migrates more of its services online. 'People still struggle with what role Social Security plays and when they should start it,' said David Shotwell, a certified financial planner in Lansing, Mich. 'They might say, 'I'll retire at 66 and start Social Security at 66'' without weighing all their options. It's also easy to underestimate the medical costs you can incur in retirement. Medicare helps, but it doesn't cover everything. The average couple will spend $12,800 in their first year of retirement at age 65. To estimate your total healthcare expenses during retirement years, use Fidelity's free estimator (but brace yourself for the shock!). Read: Medicare may actually be in more trouble than Social Security There are many so-called rules of thumb that preretirees treat as gospel. Like many advisers, Sexton scorns these rules. He calls the popular 100-minus-your-age rule 'absurd.' (It involves subtracting your age from 100 to determine the percentage of equities you should have in your portfolio.) With people living longer, there's more risk in prematurely shifting too many assets into bonds and cash equivalents. Investing more conservatively makes sense as you age. But that doesn't mean you should necessarily own more bonds at 75 than 65. Another misguided rule: Retirees should withdraw 4% of their total nest egg in their first year of retirement. From there, you supposedly withdraw an inflation-adjusted amount tied to the prior year. In theory, that means you should not run out of money over a 30-year retirement. But not so fast. 'People still rely on the 4% rule and they shouldn't,' said Thomas Van Spankeren, a Chicago-based certified financial planner. 'Just last week, a new client who was laid off in his mid-50s says, 'I did the 4% rule and I'll be OK.'' Read: I'm 48 and want to retire next year. Do I have enough money to last me until I'm 98? Instead, Van Spankeren suggested they customize a financial plan. The 4% rule is built on assumptions that may prove faulty, he says, so it can derail retirees' plans. Speaking of assumptions, you might assume seasoned investors in their 50s and 60s would acquire the wisdom to buy and sell stocks with prudence and patience. Again, not so fast. As they approach retirement, otherwise smart, successful investors can get caught up in mass psychology. If they missed the surge in stocks over the last 15 years or so, they may feel compelled to overload on equities now. 'For many years, it was all about TINA [there is no alternative],' Van Spankeren said. 'It's tough to stay disciplined, especially with performance-chasing' if you keep buying stocks and expecting big gains. Savvy investors, by contrast, adopt a broader perspective. They think in terms of TARA [there are reasonable alternatives], not TINA. Retirement fluency means keeping an open mind about all types of investments. If risk-free cash yields hover near 4% and investment-grade corporate bonds pay over 5%, exploring these and other alternatives can produce decent returns for retirees content to hit singles, not home runs. 'They should focus on the returns they need [in retirement], not the returns they desire,' Van Spankeren said. Read: The guy behind retirement's 4% rule now thinks that's way too low. Here's how much more money you could spend. Perhaps the most vexing issue for preretirees is predicting how long they will live. Consider one of Sexton's questions in his 'retirement fluency' test: 'On average in the U.S., how long will a 65-year-old man/woman live?' Only 32% of test takers pick the right answer: 84 for men, 87 for women. 'The biggest issue in financially planning for your retirement is your longevity,' said Ben Loughery, an Atlanta-based certified financial planner. That's why he analyzes a client's family medical history to predict their life expectancy. That serves as a starting point for estimating the portfolio performance they'll need to enjoy their retirement years. Read: Opinion: Annuities are looking good right now. So why aren't people buying them? I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? 'I'm 68 and my 401(k) has dwindled to $82,000': My husband committed financial infidelity and has $50,000 in credit-card debt. What now? Why the biggest-ever 'triple witching' options expiration could deliver a jolt to Friday's trading Israel-Iran conflict poses three challenges for stocks that could slam market by up to 20%, warns RBC Tech companies lead list of double-digit gains in June for stocks in the S&P 500 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
7 days ago
- Business
- Yahoo
6 Surprising Purchases That Waste Shocking Amounts of Money
We all have habits that feel like smart money moves, only to discover later they quietly drain our wallets. From bulk buys to name-brand skincare, it's easy to be lured by perceived savings or prestige, but end up overspending. Learn More: Read Next: Let's unpack some of the most surprising money sucks according to financial experts, and explore how to adapt our habits for lasting savings. Buying in bulk often seems like a no-brainer since you're supposed to get more for less. However, Caleb Wood-Dagget, founder and financial advisor at Commonwealth Strategy Advisors in San Clemente, CA, pointed out that a lot of people waste money in this area without ever realizing it. 'Purchasing a lot of one item for a discounted price might sound like a good idea, but if half of it expires or goes unused, then you're not actually saving anything,' said Wood-Dagget. 'You just end up throwing money out slowly, rather than all at once.' Melanie Musson of added that you can't assume just because something is in a larger container, it's cheaper. 'You need to consider the price per ounce or unit price, and compare it to the price of smaller packaging,' said Musson. Find Out: High-end brands promise premium ingredients or cutting-edge features, but sometimes a budget-friendly alternative delivers the same result. 'There is no magic skincare formulation,' Musson pointed out. 'Skincare products often share many of the same ingredients across the board. If you compare ingredients on a $100 bottle of facial lotion and a $10 bottle and see that they're the same, you can be assured that your result will be the same, but you'll save a lot of money with the cheaper bottle.' Flying on discount carriers can feel like a win until hidden fees surface. 'While discount airlines do offer lower fares, they may charge for seat selection, food, carry-on bags and printed boarding passes,' according to Michele Frank, associate professor of accounting at Miami University's Farmer School of Business. These fees add up quickly, and could result in a traveler losing the 'discount' they thought they obtained.' Frank also said discount airlines tend to have fewer planes, fly fewer routes and only fly on certain days of the week. This means if your flight is canceled, you may not be able to get on another flight for days, which could add hundreds of dollars to your trip if it means you have to spend extra days in hotel rooms, so it's important to factor in these costs. High-interest financing quietly inflates costs. A common trap is charging items you can't fully pay off monthly, incurring interest that outweighs any immediate benefit. 'If you're planning a big-ticket purchase that you need to make, but don't have enough cash to save up for, look for 0% financing specials from big box stores,' said Andrea Woroch, a consumer and money saving expert. 'Otherwise, look for a new credit card offering 0% APR and a cash bonus to help pay off the purchase. Just make sure you can pay off the purchase before the 0% interest promo period expires.' Generic groceries, medications and household items often match brand-name quality at a fraction of the price. 'There are a plethora of generic brand products that can save you a lot, from 30% to 50%, without sacrificing quality such as generic groceries, generic meds and even generic clothing from stores like Walmart, Target and Costco,' said Woroch. 'For instance, you can save 30% on over-the-counter medicine by sticking with the generic brand. The FDA requires that generic medicine, including over-the-counter, work both as effectively and safely as the name brand, and it's a whole lot cheaper.' Unlimited data can feel like peace of mind, but if you rarely exceed, say, 15 GB/month, you could be overpaying. A study from WhistleOut found Americans waste $1,500 a year on excessive wireless data plans, while Mint Mobile reported 76% of Americans are on unlimited data plans. But 63% of them don't even use 15 GB per month. 'This is likely because many consumers now use W-Fi at home, at the office and even on the go as more businesses and retailers offer Wi-Fi connections at no charge,' said Woroch. 'Review your actual data and see if your current provider offers a plan that meets your needs so you stop wasting money on this monthly bill.' More From GOBankingRates 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 6 Surprising Purchases That Waste Shocking Amounts of Money
Bloomberg
21-06-2025
- Business
- Bloomberg
Gen Z Has Virtually No Excuse for Financial Illiteracy
The financial behaviors of Gen Z have been nothing if not consistent over the last few years. They routinely create trends about the merits of spending while you're young and fun. A few years ago, it was posting the text 'I'll make my money back, but I'll never…' with some image of a perceived once-in-a-lifetime experience. Now, the cohort is increasingly participating in ' doom spending ' — a form of retail therapy that helps consumers cope with everyday stresses — more than older generations. It dovetails with another troubling trend: Almost half of Gen Z – 49% – has decided saving for the future is pointless, according to a late May Credit Karma survey. These choices exemplify poor money management skills, a reality that has led Gen Z to blame schools for not teaching them more about how to manage their finances effectively. But of all the generations, Gen Z is the one with no right to complain about the lack of access to personal finance education in school. If any generation had a chance to teach themselves, it is them.
