Warren Buffett’s 6 Best Pieces of Money Advice for the Middle Class

March 22, 2024  by  John Csiszar  Edited by  Amber Barkley

For one of the richest people in the entire world, Warren Buffett, the CEO of Berkshire Hathaway, is surprisingly down to Earth. He famously lives in the same modest house in Omaha that he bought in 1958 for $31,500, and his favorite meal for breakfast is McDonald’s. Between that and his folksy, easy-to-understand wisdom, it’s no wonder that Buffett is so popular with the general public.

Investors no doubt also love his enviable track record, which has more than doubled the average annual return of the S&P 500 since 1965, an incredible run. The bottom line is that when Buffett talks, people listen.

With that in mind, here are some of the best pieces of financial advice for the middle class offered up by the man known as the “Oracle of Omaha.”

7 Poor Money Habits You Learned Long Ago That Are Still Hurting You Today

Crystal Mayer  Wed, April 17, 2024

Studies show that money habits are learned at an early age. Some research indicates that these habits, good and bad, may be in place by age 7. Almost all experts agree that sound financial practices should be started in childhood and reinforced throughout early adulthood. Unfortunately, many adults learned poor money management skills during their most formative years, leading to long-term financial struggles.

Money mishaps may have been picked up because of what was modeled in a person’s household, while others are the result of a simple lack of understanding. Money, to many generations, is also still considered a taboo subject, meaning dinner-time conversations aren’t really centered around financial literacy.

At GOBankingRates, we surveyed over 1,000 adults to find out what bad financial practices they picked up during childhood and early adulthood that are still causing them problems. Almost across the board, their answers were the same as what many adults struggle with throughout their lifetimes. Here are seven poor money habits many folks learned long ago that are still hurting them today.

The Biggest Mistake People Make With Their Tax Refund — And How to Avoid it

March 1, 2024 by  Vance Cariaga

Tax refunds can be used for any number of practical purposes, like paying down debt or building your savings. But refunds can also be blown on things you don’t really need. The good news is, many Americans make smart choices with their money, and you can, too.

According to a 2024 survey conducted by GOBankingRates, 25% of people plan to put their tax refund in savings this year. About 13% said they would use it to pay bills, while 15% planned to pay off debt.

Planning your taxes is another important step, and many Americans do a good job of that as well. About 73% aimed to file their taxes well before the April 15 deadline. More than 43% planned to file taxes themselves, using a tax software program such as TurboTax.

The 7 Worst Things You Can Do If You Owe the IRS

December 6, 2023   By  Jennifer Taylor  GoBankingRates

You’re in debt to Uncle Sam. This probably isn’t a great feeling, but you have to face it.

Maybe you have the money to pay your tax bill or perhaps you don’t. If not, you have many options, so don’t take any of the following.

Using a Credit Card To Pay Your Taxes

Charging IRS debt to your credit card might be easy in the short term, but doing so can be a costly choice.

“The IRS interest rate changes quarterly, but it’s hovered around 8% in recent years,” said Brad Paladini, tax attorney and owner of Paladini Law, a tax law firm. “Credit card interest is usually around 22%, meaning that if a taxpayer uses a credit card to pay their taxes, they are paying almost three times as much in interest than if they paid the IRS directly.”

The 6 Smartest Things to Do With Your Tax Refund

By  Vance Cariaga  February 13, 2024 GoBankingRates

Getting a tax refund can be exciting. It feels a little like getting a year-end work bonus in the middle of spring. Fun as it can be, it’s important to keep in mind that there are smart things you can do with that refund — and not so smart things.

Rather than blow the refund on something you don’t really need, you should put it to use in a way that can bolster your financial situation.

With the 2024 tax season underway, you might be looking forward to a refund from the IRS or your state tax agency. How you use it depends on your own personal situation, but here are six of the smartest things to do with your tax refund.

6 Things You Should Never Do With Your Tax Refund (Do This Instead)

March 4, 2024 by  Vance Cariaga GoBankingRates

There’s nothing like a tax refund to give your finances an immediate shot in the arm. Depending on the size of the refund, it could be used to wipe out your credit card debt or help you build an emergency fund. Unfortunately, many people blow their refunds on something frivolous that does nothing to strengthen their finances.

The best way to look at your tax refund is as an opportunity to grow your wealth, rather than a free pass to spend money. When you complete your tax return and find that you are due a refund, consider it a return on the hard work you put in during the previous year.

One of the smartest moves you can make is to invest the money in a high-yield savings account. This is an especially good move right now, with banks and credit unions offering their highest annual percentage yields in years.

One of the best savings options is Milli Bank. Milli is a mobile-only bank owned by FNBO whose savings account pays a 4.75% APY, as of Feb. 29, 2024. That’s more than 10 times the national average interest on a savings account.

4 Surprising Things the IRS Already Knows About Your Finances

Sean Bryant  Thu, April 11, 2024

For many Americans, the IRS and the tax filing process may seem complicated and mysterious. What does the IRS already know about you and your finances, and what can they find out?

It turns out, the IRS has the ability to see a surprising amount of your personal information. However, the IRS is likely to seek out personal information only if your tax return signals something suspicious.

Keep reading as we explore what the IRS already knows about you and your finances.

Reported Financial Records

This might not be a huge surprise to many people, but most of the time, the IRS already knows what your tax return will be before it’s even filed. The reason is because they’ve already received copies of your W-2 and 1099 forms.

Your W-2 reports all your previous year’s wage income, while your 1099s list income from freelancing, stock dividends and interest. By law, your employers must submit these documents to the IRS before January 31.

4 Money Lessons From High-Net-Worth People That You Need Right Now

Wola Odeniran, CEPF®  Tue, April 25, 2023

Advisors often work with high-net-worth clients and are able to understand the expectations wealthy clients have about managing their finances. The good news is that some of those takeaways can be applied to clients who are not high-net-worth individuals.

Read on to understand four lessons advisors can take from high-net-worth clients – and how they can be applied to any client.

If you are looking to grow your financial advisory business, check out SmartAsset’s SmartAdvisor platform.

Almost Everyone Needs an Estate Plan

Estate-planning practices apply to every client, no matter their tax bracket, says Renee Fry, co-founder and CEO of Gentreo, a company that provides estate-planning document services.

“Financial advisors should take the example of their high-net-worth clients and apply estate-planning principles to all their customers, regardless of income bracket,” Fry says. “Every person has an estate, regardless of their income level, and thus, everyone should have a plan in place to ensure that their assets are distributed according to their wishes.”

Proper planning can help advisors build a bigger client base. “By doing so, advisors can help ensure their client’s financial security, build long-term trust and differentiate themselves from their competitors,” Fry says.

 What Does Your  Personality Type Say About How You Handle Money?

The Traits of 5 Money Personality Types: What Does Yours Say About How You Handle Money?

Laura Bogart  Wed, April 10, 2024 GoBankingRates

Sometimes, money is more than money. The way you think about it (or don’t think about it), prioritize it (or don’t prioritize it), spend it (or don’t spend it), and save it (or don’t save it) can reflect aspects of your personality.

Learning more about the various personality types around money – and where you fall into the spectrum – can be a first step in healing, or strengthening, your relationship to money.

Financial experts and professionals encounter people with different personalities around money – sometimes within mere hours.

So, GOBankingRates talked to experts about some unique personality types around money to get a sense of their strengths and areas of healing.