4 Reasons You Should Withdraw Your Savings Right Now

I’m a Bank Teller: 4 Reasons You Should Withdraw Your Savings Right Now

July 25, 2024 by  Angela Mae GoBankingRates

Roughly 95% of Americans have either a checking or savings account, according to the Federal Deposit Insurance Corporation (FDIC). For many people, a savings account is a great place to keep extra money for a major life event, like a wedding or home purchase, or emergencies.

Savings accounts are generally FDIC-insured up to $250,000, meaning your money is protected against bank failure. The funds are also still accessible but separate enough from your checking account to where you’re less likely to use them for everyday expenses.

Still, as useful as savings accounts can be, there is a right time to withdraw the funds. If you’re thinking about withdrawing the money from your savings account, here’s when you should do it — and when you shouldn’t.

You Need Extra Cash To Cover Something Planned

“Typically, the biggest reasons people withdraw their savings are to cover a bill, to make a purchase, home repairs, for vacations or for birthdays and holidays such as Christmas,” said Arielle Torres, an assistant branch manager at Addition Financial Credit Union.

These are all sound reasons to withdraw the funds.

Say you’ve been saving up for a down payment and are ready to close on your new home — that’s a good time to draw from your savings. Upcoming trips and major home repairs, ideally those that are planned out, are also valid reasons.

You might also want to withdraw from your savings account to cover debts, especially high-interest ones that are draining your monthly cash flow. If possible, wait until you have an emergency fund. Then, once you have the funds available, pull from your savings to pay off that debt

You’re Dealing With an Emergency

One of the clearest signs that you should withdraw from your savings account is in the event of unavoidable emergencies, said Torres. Common emergencies include surprise medical bills, a broken down car, necessary home repairs and layoffs at work — basically, anything that wasn’t planned and can’t be covered with your regular income or budget.

Ideally, you’ll have a separate emergency fund for this and won’t have to touch your regular savings account. But if you don’t and you need the money, your savings account is a good alternative. It’s also a better option by far than having to turn to high-interest credit cards or loans to cover the emergency expense.

To Read More:

https://www.gobankingrates.com/saving-money/savings-advice/im-a-bank-teller-reasons-you-should-withdraw-your-savings-right-now/?utm_term=related_link_3&utm_campaign=1280587&utm_source=yahoo.com&utm_content=4&utm_medium=rss

US Families Are 'Woefully Under Prepared' For The Great Wealth Transfer

US Families Are 'Woefully Under Prepared' For The Great Wealth Transfer

Maya Benjamin   Sun, August 11, 2024  Yahoo Finance

The greatest intergenerational wealth transfer in history is underway, and people are unprepared, according to Michael Pelzar, head of investments at Bank of America Private Bank.

"Nearly half of wealthy families don’t have the most basic elements of estate planning in place,” Pelzar said. “What that means is that families are woefully underprepared for that wealth transfer that’ll be taking place.”

Baby boomers alone are projected to pass down over $68 trillion over the coming years. However, Pelzar explained that nearly half of wealthy families do not have the necessary preparations in place, such as a will, power of attorney, or healthcare proxy, to allow for easy inheritance.

“When problems arise with wealth transferring from one generation to the next, it’s when communications have broken down or have not taken place," Pelzar said. "People aren’t educated on the value of trust and their benefits."

Older Americans Set To Pass Along Trillions In Assets Chart:   LINK

Christina Lecholop, a certified financial planner at CAPTRUST, attributed this lack of action on estate planning to the "expanding and complex" investment universe, a shift in the definition of retirement, a changing understanding of careers, and the geopolitical climate.

"People tend to delay because of uncertainty," Lecholop said. "There's a lot of headlines. There's a lot of noise that can tell people not to take action when I think that they should. And while that's all a very real consideration to pay attention to, it's important to also get started, and when people hold on, they miss out on the opportunities."

Lecholop emphasized the benefits of working with a professional to help understand finances and establish goals and priorities that help dictate investment decisions.

To Read More:   https://www.yahoo.com/finance/news/us-families-are-woefully-underprepared-for-the-great-wealth-transfer-154037080.htm

Dave Ramsey’s Top 26 Tips That Will Save You From Financial Disaster

Dave Ramsey’s Top 26 Tips That Will Save You From Financial Disaster

Gabrielle Olya  Thu, Aug 8, 2024

When it comes to personal finance, money expert Dave Ramsey is known for having your financial health in mind.

Whether you’re buying your first car or want to start saving for retirement, following Ramsey’s strategic tips can empower you to kick bad money habits to the curb and develop the necessary skills to comfortably reach your goals.

Put yourself on the right track for financial success with his 26 best money tips:

1. Gain Control of Your Money

If you’re unsure how to start fixing your financial situation, Ramsey recommends taking control of your money.

Gaining control of your money starts by making a financial plan. Ask yourself what you want for your finances and how your money can take you where you need to go.

2. Set a Budget and Give Every Dollar a Name

A big part of gaining control over your money is creating and sticking to a budget, which Ramsey highly recommends. Those who have a monthly budget can control their money and reach their financial goals, whether that means paying off debt, buying a home or investing for retirement.

Before each month begins, Ramsey said you need to give every dollar a name. These names may include buying groceries, making a mortgage or rent payment or contributing to your emergency fund, just to name a few. Every dollar in your budget should have an assignment as this is a big part of effectively managing your money.

3. Save $1,000 in a Starter Emergency Fund

The first of Ramsey’s 7 Baby Steps is to save $1,000 for your starter emergency fund.

Typically, emergency funds are advised to have between three to six months’ worth of expenses. However, Ramsey recommends getting started with this smaller buffer fund to help cover any unforeseen expenses that may come with everyday life.

Having a starter emergency fund gives you peace of mind in knowing you have enough money to pay for these emergencies and will not need to resort to going into debt to cover costs.

4. Use the Debt Snowball Method To Pay Off Debt

Step two in Ramsey’s 7 Baby Steps is to pay off all of your debt. You can get a jump on eliminating debt using Ramsey’s debt snowball method.

How the debt snowball works is you start by paying off debt with the smallest balance. Once this piece of debt has been repaid, you work your way up, or snowball, to repay debt with the biggest balances. Debt snowball comes with plenty of psychological wins, like gaining confidence that your quick wins will allow you to confront your worst debts and pay them off in full.

5. Work a Side Hustle

Even if you carefully budget and work a good full-time job, you might find you need a way to earn extra money to reach your financial goals.

Ramsey recommends working a side gig to earn extra cash and fulfill goals like paying off debt or building your starter emergency fund. You might decide to drive rideshares, sell gently used items on platforms like Facebook Marketplace, or offer tutoring services.

6. Do Not Invest Until Your Debt Is Paid Off

This tip is often considered a bit controversial, but it is one that Ramsey firmly stands by.

To Read More:

https://finance.yahoo.com/news/dave-ramsey-top-26-tips-150051659.html

10 Financial Documents You Should Never Get Rid Of

10 Financial Documents You Should Never Get Rid Of — and How It Could Cost You If You Do

Adam Palasciano  Wed, August 7, 2024  GOBankingRates

As you get older, there are so many documents to keep track of. Official government documents, IDs, bank statements, bills, and other important notices can pile up fast.

It can be a struggle to keep everything organized and identify which documents are the most important to preserve. If you’re unsure, there are 10 specific financial and personal documents you must keep forever.

10 Financial Documents That You Should Never Throw Away

Here are 10 financial and personal documents that you should never get rid of, according to The Washington Post:

Birth certificates and adoption papers.

Death certificates.

Funeral programs.

Estate documents, including your will and power of attorney documents.

Marriage and divorce records.

Year-end pay stubs.

Social Security cards.

Military service records, including discharge documents.

Retirement or pension records.

Loan payoff statements.

If you have financial and personal records and you aren’t sure how long you should keep them, it’s best to err on the side of caution and keep them as long as possible.

Additional Important Documents and How Long You Should Keep Them

For all other important financial documents, here’s how long you should keep them, according to The Washington Post and Forbes:

To Read More:

 https://www.yahoo.com/finance/news/10-financial-documents-never-rid-174706502.html

How I Save For Emergencies — and Why I Still Worry About Having Enough

I’m a Millionaire: How I Save For Emergencies — and Why I Still Worry About Having Enough

August 2, 2024  by  Cindy Lamothe  GoBankingRates

One of the smartest pieces of financial advice out there is to have an emergency fund in case the unexpected happens. And while all of that is well and good, how much is enough?

GOBankingRates spoke with millionaires Tommy Mello, founder of A1 Garage Door Service, and David L. Blain, CFA, CEO of BlueSky Wealth Advisors, to discuss exactly how they save for emergencies and when they feel it’s sufficient.

“Since I founded A1 Garage Door Service in 2007, the company has grown to be a leader in the home-service industry,” Mello said. Through this journey, he’s faced numerous financial challenges and learned valuable lessons about saving for emergencies.

“No one likes to think about worst-case scenarios, but being prepared financially for emergencies gives you peace of mind,” Blain noted. “Then you can focus on living your life without constant worry over what might go wrong.”

Here is how these two millionaires save for emergencies and why they still worry about having enough, along with tips for creating an emergency fund.

How I Save For Emergencies

“Building an emergency fund has always been a priority for me,” Mello said.

He sets aside a percentage of his business profits into a separate savings account dedicated solely to emergencies. “This fund acts as a financial cushion, providing security and peace of mind. I aim to have at least six to 12 months’ worth of operating expenses saved,” he explained.

This approach ensures that his business can weather any unexpected downturns or crises without compromising operations.

Concerns About Not Having Enough Savings

“Despite having a substantial emergency fund, I sometimes worry about whether it’s enough,” Mello said.

He explained that the home service industry can be unpredictable, and unforeseen expenses can arise at any time. “For example, economic downturns, natural disasters or sudden equipment failures can significantly impact our financial stability,” he said.

These concerns drive him to continually evaluate and adjust his savings strategy to ensure he is well prepared for any eventuality.

Blain shared a similar view. “As a millionaire, I do worry about emergencies depleting my savings, even with a sizable emergency fund,” he said. “We keep enough cash on hand to cover six to 12 months of expenses, but medical issues or natural disasters could wipe that out quickly.”

Tips for Building a Solid Emergency Fund

According to Mello, when building an emergency fund, you should start small and be consistent. He advised beginning by setting aside a small percentage of your income each month. “Consistency is key. Over time, these small contributions will accumulate into a significant emergency fund,” he explained.

He also emphasized that building a solid emergency fund is crucial for long-term financial stability, especially in the unpredictable world of entrepreneurship. “By adopting disciplined savings habits and continuously evaluating your financial preparedness, you can ensure that you’re ready to face any challenges that come your way,” he said.

Blain agreed. “Building wealth is a marathon, not a sprint,” he said. Making regular contributions to your emergency fund and saving diligently over time is the key, according to Blain. “Stay disciplined, cut excess spending, and your emergency fund and net worth will grow over the years through the power of compounding,” he said.

Here are some additional tips for how to build a solid emergency fund.

To Read More:  https://www.gobankingrates.com/saving-money/savings-advice/im-a-millionaire-how-i-save-for-emergencies-why-i-still-worry-about-having-enough/

What To Do When The Stock Market Sinks Like A Stone

'Don't Panic': What To Do When The Stock Market Sinks Like A Stone

Daniel de Visé, USA TODAY  Updated Mon, August 5, 2024

If you are one of those amateur investors who checks your 401(k) balance at every meal, today might be a good day to fast.

Stocks had bad days Thursday and Friday. Monday looks to be worse. Global markets plunged overnight, with Japan’s Nikkei 225 index posting the worst one-day return in its history. The losses spread from Asia to Europe, and then to the United States, where the S&P 500 and Nasdaq opened sharply lower.

Market reporters trotted out such terms as “rout,” “correction” and even “panic,” descriptors that invoke memories of the market’s darkest days, such as the brief COVID-19 crash of 2020 and the deeper, longer dive of the Great Recession of 2008.

Though it's hard to stay calm as the stock market reels, amateur investors should at least try.

“My best advice is, don’t panic. Really, because you can’t,” said Catherine Valega, a certified financial planner in Boston.

'Stocks are on sale today'

If anything, financial advisers say, this summer stock swoon would be a great time to buy.

“Stocks are on sale today, right?” Valega said. “If you have some cash, let’s go put some money in the market.”

But that can seem counterintuitive.

To an armchair investor, the dilemma is familiar and frustrating: We are instructed to buy low and sell high. When the stock market tumbles, your first impulse is to sell. But then you are selling low.

The stock market “correction,” in dispassionate Wall Street parlance, unfolded swiftly and with seemingly little warning.

Just last Wednesday, Federal Reserve chief Jerome Powell waved off an interest rate cut and assured the nation that the economy was doing pretty well.

“It's just a question of seeing more good data,” he said.

The rest of the week yielded mostly bad data.

A surprisingly weak jobs report stoked fresh recession fears from forecasters. Toss in gloomy earnings reports from Amazon and Intel, and together, those tidings pushed stocks sharply lower on Friday.

That news ricocheted around the globe, seeding Monday’s losses in Asia and Europe. Those losses, in turn, triggered more losses in the U.S.

Market watchers urged consumers to keep a sense of perspective. As of late morning, the S&P 500 was higher than it was at moments in April and May, although that could quickly change.

“Short-term market movement can be unpredictable, but over the long term, the trend is up,” said Erika Safran, a certified financial planner in New York. “The irony is that we rush to buy items on sale, but when it comes to investing, when prices drop, the instinct is to sell.”

And we’re still talking about one bad jobs report. Right?

A 'recipe for sudden volatility'

Well, maybe not. The job market was weakening before Friday’s alarming report. Powell cited cooling job data in his news conference Wednesday, listing it as one rationale for the Fed to begin cutting interest rates soon, perhaps in September.

To Read More:  https://www.yahoo.com/finance/news/dont-panic-stock-market-sinks-154619022.html

This Is Why We Can’t Have Nice Things.

This Is Why We Can’t Have Nice Things.

Notes From the Field By James Hickman / Simon Black   August 5, 2024

Athenian general Miltiades was already a hero across ancient Greece when he set sail for the island of Paros in 489 BC.

Born into stardom as the son and nephew of famous Olympic champions, Miltiades made a name for himself as one of the most important and successful commanders in the Greek war against Persia.

In fact, Miltiades was responsible for devising the incredibly unique, surprise battle plan that confounded the Persian army at the Battle of Marathon in 490 BC. The Greeks were vastly outnumbered and outmatched... but they annihilated the Persians thanks to Miltiades’ tactical genius, making him an instant celebrity-hero throughout the region.

So, when he approached the Athenian government the following year and requested to lead a special mission to reclaim lost Greek territory in the Aegean Sea, they approved his mission without question. And the Hero of Marathon set sail a few months later with a fleet of 70 ships.

Unfortunately for Miltiades, his voyage was a total disaster; his fleet was nearly vanquished, he lost a great number of men, and he was unable to take the island of Paros. So, when he returned to Athens, all of his former heroics were forgotten… and people wanted his head. Literally.

It was commonplace in ancient Greece for politicians and military leaders to be held accountable for their decisions; many were even put on trial at the end of their rule and had their administrations publicly scrutinized.

These weren’t political witch hunts; rather, they were a form of checks-and-balances whereby anyone found to have been truly incompetent, disloyal, or duplicitous would be severely punished.

Miltiades-- again, the Hero of Marathon-- was charged with treason for causing such severe and embarrassing losses in his ill-fated Paros expedition. He was tried, convicted, and ultimately sentenced to death… however this was eventually reduced to a fine of 50 talents (roughly $10 million in today’s money) and a lengthy prison sentence.

Sometimes I feel like the Greeks were really on to something.

Sure, the world is complicated, and there’s never any guarantee of success in warfare, business, life, politics, etc. Decision makers don’t have a crystal ball and rarely have perfect information… so there can never be any certainty about future outcomes.

But leaders have a moral and legal obligation to always do their best… and to make rational decisions and take sensible risks. Most importantly, whenever there’s new information, they have an obligation to challenge their own decisions and adjust course if necessary.

Failure to do so is arrogant, deliberate incompetence.

We saw this all throughout the pandemic; at first, there was very little information available, and politicians’ knee-jerk reaction was to enact the most extreme measures.

But six-months later there was plenty of data. And politicians had plenty of opportunity to review the updated information, summon their courage, and make better, more rational decisions.

Some places (Florida) did. Others (New York, California) stuck to their failed, idiotic, destructive policies. They kept people locked down, they kept the schools closed, and they exacted an incalculable toll on their citizens.

But they will never be held accountable for their incompetence. Instead, they end up on lucrative speaking tours, awarded highly paid consulting or board positions, or advanced outrageous sums for their memoirs.

And this leads me to what’s happening in England right now.

As you’re probably aware, a sick-o teenager in northern England stabbed a bunch of kids last week in a horrifying rampage. Nine children were wounded, and at least three have died.

Rumors quickly circulated that the attacker was a Muslim refugee who had arrived by boat to England’s shores, and violent riots quickly broke out across the country.

The government and media were quick to correct the rumor; the 17-year-old attacker (he turns 18 on Wednesday) was born in the UK and is the son of Rwandan immigrants.

Then they further denounced the rioters as “far right” and “racist”, and the Prime Minister threatened to use the full force of the law against them.

Look, it’s completely inexcusable for rioters to engage in violence and destruction of property. But it’s also inexcusable for politicians to run their country into the ground.

The media has been quick to condemn the rioters. But they are completely silent, and frankly complicit, regarding the destruction of their country.

To Read More:  https://www.schiffsovereign.com/trends/this-is-why-we-cant-have-nice-things-151207/

Money Tips They Wish They Learned In School

People Are Sharing The Money Tips They Wish They Learned In School

BuzzFeed    Sun, August 4, 2024

Adulting is a headache even on a good day; there are so many different ways to mess up, and of course, no instruction manual. I think we all wish we had a class or two in school that would have prepared us better for navigating the maze that is taxes, insurance, and mortgages.

The next best thing to that, though, is asking advice from the older and hopefully wiser folks who have already stumbled through. So I turned to the BuzzFeed Community to ask: "What are the things you wish someone had told you about finance when you were starting out and knew absolutely nothing?"

People banded together to share the game-changing advice that made the biggest differences in their finances, and here's what they had to say, along with Redditors from the r/personalfinance community.

1."Put your savings in a high-yield savings account! I was over 40 before I realized this. Now, I wish I had put the money I had saved to buy a house into a high-yield account. I sat on that money for years in a traditional savings, earning little interest. It makes me so mad that I didn't know about it then.

That additional savings accrual could have been so helpful in home renovations and items we didn't even know we needed when we bought the house (like new appliances)."

2."When I first started working, money was very tight, so I decided not to contribute to my 401(k), thinking I'd do it once I was on my feet. I ended up putting it off until I was about 30. It was an incredibly dumb move, and I missed out on so much employer match money and interest income." —axj66

3."Take advantage of 401(k) plans offered by employers. Most offer a 'match' — which is basically free money added to the account by the employer. Always put in at least how much the company will match. if they match the first 5% you put in, then put in at least 5%.

You don't get taxed on the money you put in until you withdraw in retirement, so your taxes are lower on your check, too. There are usually rules about when the match money becomes yours (vesting schedule), but keep an eye on that date if you are considering switching jobs; I've seen people lose thousands of dollars because they left a job three or six months before they were either fully vested or at least a milestone."

"If/when you switch jobs, do NOT get tempted to just take the money out and blow it. Besides the taxes and penalties for using it, that couple thousand dollars (that was already not really in your pocket all along) will be a nice chunk of money down the line. And time does move faster the older you get..."

—Anonymous, 49, Missouri

4."'Give every dollar a job...' Having $1000 in my checking account with no purpose meant I had $1000 to spend, and I often did." 

"Having $1000 in my checking account and knowing that...$100 has to go for the week's groceries $400 has to be set aside for property tax in March   $150 has to go for the wife's birthday next month  $50 needs to be set aside for fuel for the week  $300 has to be there for the car payment next week  ...makes me feel like I'm broke, and I don't spend dollars I'll soon need for other things."  –u/ItMadeHimMean

5."Many banks will let you open extra accounts for no cost and maybe even link them together. A $1000 paycheck with direct deposit and auto transfers means putting $500 into a bills account, $300 into savings, and only $200 in my spending account. If I don't see the money in my account in the first place, I don't get as tempted to spend it."  —u/Theta_Zero

6."If you buy something on sale, you still bought it.Instead of thinking I got $30 off on this $100 dollar appliance, think, 'I spent $70 dollars on this appliance.' That $30 off is easier to justify than the $70 spent, especially if it is a niche item that doesn't get much use. That being said, if you can get a great deal on something you will use regularly — get it."  –u/NotSpendingOnSales

7."Paying for services annually instead of monthly. You can often save 20-30% by paying annually." —doofenshmirtzevilincTo

Read More:  https://www.yahoo.com/finance/news/people-sharing-money-tips-wish-034603176.html

11 Money Moves You Should Make Soon To Be Ready for 2025

11 Money Moves You Should Make Soon To Be Ready for 2025

Laura Beck   Sat, August 3, 2024   GOBankingRates

As we approach the final stretch of 2024, it’s more important than ever to position yourself for financial success in the coming year.

Whether you’re looking to achieve specific goals, optimize your tax situation or prepare for potential changes that a new year and election might bring, now is the time to take action. GOBankingRates consulted financial experts to bring you actionable advice on the money moves you should consider making.   Here are 11 money moves you should make soon to be ready for 2025.

Leverage Debt as a Tool for Growth

Dutch Mendenhall, a leader in alternative investments and financial education, thinks there needs to be a major shift in how we think and talk about debt.

“Frame your debt as a tool for growth rather than a burden,” he shared. This approach means changing old habits and shifting the focus from paying off debt to leveraging it for investments. “Presuppose that every action you take today will pave the way for a stronger financial future,” he said.

Maximize Tax Shelters and Retirement Contributions

“Prime yourself by maximizing tax shelters and contributing to retirement plans now,” Mendenhall said.

Elaine King, MBA, CFP, founder of Family and Money Matters and expert at Annuity.org, echoes this sentiment, saying, “Make sure you are at max with your 401(k) and your IRA if you qualify. If you’re in your 40s, then you should consider a Roth IRA.” She reminds investors to add their spouses and children if they have earned income.

Diversify Your Investment Portfolio

Both Mendenhall and King are big on the importance of diversification.

“Diversify your portfolio to balance risk and reward, aligning investments with your personal financial personality,” said Mendenhall.

King adds that this is the time to reallocate, and everyone should ensure their portfolios continue to be diversified.

Audit Auto-Payments and Subscriptions

Josh Richner, founder of FaithWorks Financial, points out a crucial step often overlooked: “The Consumer Financial Protection Bureau (CFPB) has identified and called out deceptive tactics used by companies to trap consumers into subscriptions.”

He adds that while CFPB is focused on eliminating these practices, people should regularly audit their auto-payments and subscriptions. Small, forgotten charges can accumulate over time, and can impact your budget.

Verify Accuracy of Medical Debt Reporting

To Read More: https://news.yahoo.com/news/finance/news/11-money-moves-soon-ready-120141946.html

5 Unnecessary Bills You Should Stop Paying in 2024

5 Unnecessary Bills You Should Stop Paying in 2024

July 1, 2024   Crystal Mayer

According to Forbes Health, improved finances was the second most popular resolution for 2024. Their research indicated that 38% of people wanted to get their money affairs in order over the next year. So if you, like many, have a New Year’s resolution that involves saving money, now is the time to take a look at your finances.

Many times, however, sticking to a budget is easier said than done. You may start with the best intentions but struggle to say no when it comes to going out to eat with friends or adding something new to your cart. One way to save money without completely depriving yourself is to look at your expenses and see if there is anything that you currently pay for that you no longer use.

GOBankingRates asked experts to weigh in on common things that people should consider cutting in the upcoming year. Here are the five unnecessary bills you should stop paying in 2024.

Subscription Services

Nearly all of the experts agreed that subscription services are the leading culprit when it comes to unnecessary expenses. Today, there are more subscriptions available than ever. A few years ago, it may have only been a magazine subscription or two, but now there is a monthly service for everything. From streaming to meal prep, you have convenience at your fingertips — but it will cost you.

Sofia Perez, content manager and owner of CharacterCounter.com, suggested people look to free alternatives. She explained, “Entertainment lovers think nothing of renting a movie from a streaming platform, but if they have access to a public library, they should know many new releases are found at these locations for free.”

She added, “Again, planning is everything, and it is more convenient to sit on one’s couch, search and push play. But those expenditures undoubtedly add up, especially during winter months and binge-watching marathons.”

Gym Memberships

While you may have joined the gym in January with the best of intentions, it isn’t worth the bill you pay each month if you don’t use it.

Kenan Acikelli, CEO of Workhy, agreed that people need to look at their subscriptions, including gym memberships, to cut costs.

He noted, “In 2024, consumers should reevaluate their subscriptions and recurring expenses. Often, people pay for services like underutilized gym memberships, multiple streaming platforms or premium internet packages that exceed their actual needs. Another area to consider is automatic renewals for software or apps that are rarely used.”

“Evaluating and trimming these unnecessary expenses can lead to significant savings, helping individuals allocate funds more effectively towards their financial goals,” he said.

Unused Insurance Policies

https://www.gobankingrates.com/saving-money/savings-advice/unnecessary-bills-you-should-stop-paying/?utm_term=related_link_1&utm_campaign=1279854&utm_source=yahoo.com&utm_content=2&utm_medium=rss

6 Ways To Improve Your Financial Outlook, Despite High Costs

6 Ways To Improve Your Financial Outlook, Despite High Costs

G. Brian Davis  Thu, August 1, 2024  GOBankingRates

Some financial experts refer to inflation as the “silent tax.” You don’t see it come out of your paycheck or savings, but it drains their value nonetheless.

Inflation also impacts everyone across the financial spectrum. The rich, poor, and everyone in between notices the effects of inflation.

So in the wake of high inflation over the last few years, how can you improve your financial outlook no matter where you fall on the socioeconomic spectrum?

Retirement Planning: Whether you're planning for retirement, dealing with a significant life event or simply looking to make smarter financial decisions, a financial advisor can offer the expertise and guidance you need. Here are some compelling reasons why you should consider a financial advisor -- even if you're not wealthy.

1. House Hack

Housing makes up the greatest expense for nearly everyone on the planet. It therefore offers the single greatest opportunity for saving money — especially if you can knock it out entirely by house hacking.

“House hacking involves buying a multi-unit property with up to four units, using traditional mortgage financing,” explained Lane Forehetz, founder of Fast Lane Real Estate. “An FHA loan, which requires only 3.5% down, can make this affordable, often needing less than $10,000 out of pocket.”

“By living in one of the units and renting out the others, you can offset your mortgage or rent payment, significantly increasing your monthly savings,” Forehetz said. You can use the future rents from the other units to help you qualify for the mortgage.

Not ready or interested in buying a new home? Seamus Nally, CEO of TurboTenant, recommended finding ways to house hack your current home.

“For example, turning a room or section of your home into an Airbnb lets you get started without the financial undertaking of traditional real estate investing. With a consistently profitable stream of passive income like that, the money earned can be used to move you upwards financially, helping you do things like pay off your loans, building your savings, and kicking off your investment journey.”

2. Meal Plan To Reduce Grocery Spending

Grocery costs have risen a staggering 25.8% since the last presidential election. That’s pinched most Americans, whose paychecks have not kept pace.

“I plan meals ahead for the week and only buy the groceries that I need for those meals,” said Annie Cole, money coach and founder at Money Essentials for Women. “This has helped me cut hundreds off my monthly grocery bill versus walking through the store without a plan.”

“I buy a lot of affordable staples (rice, potatoes, vegetables) and plan meals around them. When I do buy more expensive items like meat, I’ll use portions of it across multiple meals,” she added.

3. Research Food Assistance

Cole continued to explain that more people qualify for various types of grocery assistance than they realize. “Low-income individuals may qualify to receive a monthly meal stipend from the Supplemental Nutrition Assistance Program (SNAP).”

To Read More:  https://www.yahoo.com/finance/news/6-ways-improve-financial-outlook-151055662.html