The Complications and Benefits of Sharing a Bank Account

The Complications and Benefits of Sharing a Bank Account

Should married couples merge their finances?

Sean Kernan YAHOO CREATOR  Updated June 18, 2024

Brian’s complaining went from a weekly affair, to a daily nuisance. We convened in a shared office gym each day. He was a well spoken and well paid engineer in his late 30s, and was having incrementally larger arguments with his wife over money.

It made no sense on paper. Both of them made more than $100K per year and lived in a low-cost area of Florida. Money should have been the last of their concerns. Yet every day in the gym, he’d groan, “She is constantly questioning every purchase.” Or, “I can’t even spend my own money without a fight.”

They’d succumbed to lifestyle inflation, which occurs when your spending rises alongside your income. They’d wracked up debt buying a bigger house and fancier cars. They’d also put their kids in a slightly-nicer private school that cost twice as much, which created resentment on Brian’s side.

And, as they’d added these costs, they’d also combined bank accounts. Because I was working as a budget manager for our company, and perhaps because we were friends, he thought I could help him navigate this domestic maze. But Brian’s problems appeared much deeper than just money. Sadly, he and his wife split just one year later.

Unsurprisingly, money and finances are a key factor in many divorces. Even with the best of intentions, a shared bank account can unleash a wave of problems that are hard to resolve. Yet combining accounts can be quite beneficial. So how do we navigate this predicament?

The give and take

In the 1970s and 80s, keeping separate accounts was seen as bad luck for a marriage. This legacy belief is less present today, but still harbors itself in more traditional circles. A study by Bank of America found that couples share accounts less and less in recent years. Young people are marrying later, after they’ve better established their careers. Additionally, in prior decades, women worked less and depended on husbands and needed account access.

Research shows that couples who share finances are happier — but, and it is a big but — it’s hard for researchers to know if they’re happier because they share an account, or if they share an account because they were already happy. The cited perk is that sharing promotes an “us” dynamic, a sense of unity that also promotes transparency.

I asked several married friends about their financial arrangement and each had surprisingly strong opinions. One looked at me incredulously and said, “People still share bank accounts? That is such a bad idea.” Another came in hot from the other side, saying, “We share an account. That’s pretty much how every marriage goes.” He was insistent, even though data shows that only 52–65% of couples in western nations use a joint-account.

An older female friend said that when she shared an account, her husband ran off and spent on things they never agreed to. When they separated, he effectively cleaned out her half, which left her in a financial pit. It took her years and a lawsuit to get her money back.

One option is a hybrid approach, where you have a shared expense account and separate personal accounts. This way you are tapping into the benefits of feeling like a team, while keeping yourself protected.

To read more:  https://www.yahoo.com/lifestyle/story/the-complications-and-benefits-of-sharing-a-bank-account-204402760.html

The Best Strategy for Financial Freedom and Retiring Early

The Best Strategy for Financial Freedom and Retiring Early

Ghazal Ahmed  Fri, July 19, 2024 Insider Monkey 

This article takes a look at the best strategy for financial freedom and retiring early. Check out our complete list of 20 Strategies for Financial Freedom and Retire Early.

Here are the strategies for financial freedom and retiring early:

20. Run the numbers

According to T. Rowe Price, your likelihood of an early retirement starts with evaluating your current savings rate and spending levels. Using online retirement income calculators is a good start, allowing individuals to assess their likelihood of early retirement based on their current planning levels.

 By accounting for factors such as current levels of saving, life expectancy, and expected retirement age, retirement calculators allow individuals to make informed goals about investing, saving, and spending habits.

19. Clearly Define Your Financial Goals

Once an individual has assessed where they currently stand, it’s time for them to clearly define their financial goals. Start by setting specific, measurable, achievable, relevant, and time-bound (SMART) goals. For instance, “I want to retire early” is a vague goal.

 However, “I want to retire by the age of 50” is specific. SMART goals can help individuals formulate a targeted plan that includes timelines, money goals, and tangible benchmarks. The FIRE movement states that an individual needs to build up a net worth of 25 times their estimated annual expenses and spending to achieve financial independence.

18. Create a Detailed Plan

Creating a detailed plan outlining how one will go about achieving one’s goals will take them to the next step towards financial freedom and early retirement. From setting timelines to allocating resources, there is plenty to cover in this detailed plan.

Individuals should make sure to include a detailed budget that reduces unnecessary expenses and creates some savings after accounting for all necessary expenses. The FIRE movement prioritizes saving and investing 50 to 70% of income, if not more.

17. Financial Education

Financial education has a huge impact on the quality of retirement and the decisions that one makes towards it. Therefore, one strategy for financial freedom and early retirement is being financially literate.

According to data from the 2022 TIAA Institute P-Fin Index, retirees with high financial literacy were “more likely to plan and save for retirement” than those who were not. Having longevity knowledge is another prerequisite as appropriate decision-making related to retirement is contingent upon understanding how long a retirement can last.

16. Minimize Debt

Building up savings is important, but so is clearing off debt. This is because debt interests may far outstrip the interest on savings that you may earn. Charles Schwab recommends prioritizing debts instead of trying to pay them all at once. Credit card debts should be a first priority, with a primary focus on high-interest debt. One may make minimum payments on the rest, if possible.

Be careful of loan consolidation offers as many of them have upfront fees and hidden costs. Also, minimizing debt and saving for retirement can be done together. The way is to save enough in your retirement account to leverage the entire employer match, pay off high-interest debt, create emergency funds, and then save some more for retirement.

15. Pay Off Mortgage

To read more:

https://www.insidermonkey.com/blog/20-strategies-for-financial-freedom-and-retire-early-1324604/  

Iraq News Highlights and Points To Ponder Saturday AM 7-20-24

Why Were Iraq And Most Arab Countries Not Affected By The Technical Glitch That Hit The World?

Baghdad Today - Follow-up  A global technological outage has caused many sectors around the world to stop working, most notably airports and financial banks, today, Friday, (July 19, 2024), but the matter was different in Iraq and most Arab countries, as well as China and Russia .

In Iraq, the Civil Aviation Authority rushed this morning to clarify that “the country’s airports were not affected by the technical glitch in the global computing systems,” while the Cyber ​​Security Center at the National Security Advisory confirmed today that “Iraqi government institutions were not affected by the global electronic glitch .”

Kuwait, Lebanon, Morocco and Egypt announced that their countries were not affected by the global technical failure because they do not use Microsoft in their operations; they were not affected by the outage .

Questions were raised about the reason for the systems stopping in some countries while they did not stop in other countries, especially Iraq and other Arab countries, but by knowing the reason for the technical failure, the reason for that can be reached .

The Microsoft outage was linked to a new update from CrowdStrike, a cybersecurity software company, and caused disruptions across a range of sectors, with stock exchanges, airlines and banks the most affected .

Accordingly, and according to tracking data from technology companies, the outage only affected computers that use the CrowdStrike cybersecurity system on Microsoft systems, which means that computers running on Microsoft's system, and not using the CrowdStrike cybersecurity system, were not affected by the global glitch .  LINK

What Is The Benefit Of Iraq Joining The World Trade Organization? Al-Monitor Sheds Light On The "Secrets"

Money  and business  Economy News - Follow-up  Iraq announced the resumption of negotiations to join the World Trade Organization for the first time since 2008, a step that may benefit the Iraqi economy but will take a long time.

Al-Monitor reported in a report translated by "Al-Eqtisad News" that "the Iraqi negotiating teams began "preparatory meetings" at the headquarters of the World Trade Organization in Geneva, and the Iraqi delegation included officials from ministries in the federal government and the Kurdistan Regional Government, while another meeting will be held at an unspecified date to review Iraq's accession to the World Trade Organization."

The World Trade Organization is an intergovernmental organization that aims to promote international trade. It provides a platform for governments to negotiate trade rules and disputes among themselves. Member states make key decisions. The WTO has 164 members who say they are responsible for 98% of world trade.

Iraq first applied to join the WTO in 2004, the year after the U.S. invasion that toppled dictator Saddam Hussein. A “working group” was then set up, but there has been little progress since then. The group last met formally in 2008. An informal meeting was held in 2017, according to the WTO’s website.

The process has gained significant momentum recently. In January, a WTO delegation visited Baghdad “to mobilize political support for the resumption of Iraq’s WTO accession process.” The discussion focused on Iraq’s economic reforms and was led by Saqr bin Abdullah Al-Muqbil, Saudi Arabia’s ambassador to the WTO and chair of the Iraq Accession Working Group, the organization said in a statement at the time.

A basic requirement for WTO accession is consistent trade policies across the country, including tariff rates and customs procedures. Thus, differences in the tariff structure between the federal government and the Kurdistan Regional Government have been an obstacle to Iraq’s efforts to join the WTO.

The UN team for Iraq said in a statement that Iraq decided to unify the two customs systems in 2019, and the Federal Ministry of Finance finally approved the unified customs tariff framework in February of this year.

Joining the WTO could benefit Iraq. According to a report issued by the Council on Foreign Relations in April 2023, the WTO has been largely successful in expanding free trade.

The Council noted that the dollar value of international trade has quadrupled since the establishment of the World Trade Organization in 1995, and that average tariffs do not exceed 3%.

According to the Council on Foreign Relations, there are also negative aspects to the WTO.

The council noted in the report that "globalization and free trade have their drawbacks. These include the potential for economic inequality and job loss."

The WTO has been particularly criticized for its application of rules toward China.

“The WTO is also struggling to perform its third function – enforcing the rules – particularly with China. Since joining the WTO in 2001, China has violated global trade rules by providing extensive subsidies to its domestic industries and stealing technology and other intellectual property. China has faced few, if any, consequences for its actions,” the council said.

China has a growing presence in Iraq, and there have been significant Chinese investments in Iraqi oil and infrastructure in recent years.

The WTO says it has helped facilitate poverty alleviation in developing economies by promoting trade.

In September 2023, WTO Director-General Ngozi Okonjo-Iweala told the Center for Strategic and International Studies: “Over the past generation, market-oriented reforms in places like Eastern Europe, India, and China, together with the open global economy anchored in the GATT/WTO system, have boosted growth and trade and helped lift more than a billion people out of extreme poverty.”

GATT stands for General Agreement on Tariffs and Trade, the predecessor to the World Trade Organization.

Iraq's trade is dominated by oil. Crude oil accounted for 90% of Iraq's $123 billion in exports in 2022. Iraq imported $67.1 billion that year, with the main imports being refined petroleum, broadcasting equipment, and cars.

These figures gave Iraq a trade surplus of more than $50 billion in 2022, according to the Observatory of Economic Complexity.

Iraq may have a long wait before joining the WTO. East Timor joined in February after seven years of negotiations. Comoros joined at the same time — a process that took 17 years, Arabian Gulf Business Insight reported at the time.Views 63 07/20/2024 - https://economy-news.net/content.php?id=45390

Trade Participates In UNCTAD Meetings On Arab Countries' Accession To The World Trade Organization

Saturday 20 July 2024 11:07 | Economic Number of readings: 104

Baghdad / NINA / The Ministry of Trade announced today, Saturday, its participation in the technical meetings of the United Nations Conference on Trade and Development (UNCTAD) in Istanbul, regarding the accession of Arab countries to the World Trade Organization.

The ministry stated, in a statement, that it participated today in the technical meetings organized by UNCTAD in Istanbul, which will last for two days, to discuss the experiences of Arab countries in joining the World Trade Organization.

The Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, who represented the Ministry of Trade in these meetings, said, according to the statement, that "the meetings discussed the outcomes of the Thirteenth Ministerial Conference of the World Trade Organization, the process of Arab countries' accession to the organization, and how Iraq can benefit from these experiences in its path to joining. The importance of trade in services in supporting the economies of Arab countries and enhancing their growth was also reviewed.

Al-Hashemi stressed: “Iraq’s participation in these technical meetings enhances the experience of the Iraqi negotiating team and pushes it to move forward, and in an accelerated manner, towards achieving full accession to the World Trade Organization, as the knowledge exchange and experiences gained from these meetings will have a significant positive impact on improving Iraq’s negotiating capabilities and achieving its economic goals.”

The statement indicated: “This participation is part of the ongoing efforts made by the Ministry of Trade to strengthen Iraq’s international economic relations and take advantage of available opportunities to enhance economic and commercial development in the country.” https://ninanews.com/Website/News/Details?key=1142395

Iraqi Participation In UNCTAD Meetings On World Trade

Economy |  07/20/2024   Baghdad - Mawazine News  The Ministry of Trade announced today, Saturday, its participation in the technical meetings of the United Nations Conference on Trade and Development (UNCTAD) in Istanbul, regarding the accession of Arab countries to the World Trade Organization.

The ministry stated in a statement that it "participated today in the technical meetings organized by UNCTAD in Istanbul, which will last for two days, to discuss the experiences of Arab countries in joining the World Trade Organization."

The Director General of the Department of Foreign Economic Relations, Riyadh Fakher Al-Hashemi, who represented the Ministry of Trade in these meetings, said, according to the statement, that "the meetings discussed the outcomes of the thirteenth ministerial conference of the World Trade Organization, the process of Arab countries' accession to the organization, and how Iraq can benefit from these experiences in its process of joining.

The statement added, "The importance of trade in services in supporting the economies of Arab countries and enhancing their growth was also reviewed."

Al-Hashemi stressed, according to the statement: “Iraq’s participation in these technical meetings enhances the experience of the Iraqi negotiating team and pushes it to move forward, and in an accelerated manner, towards achieving full accession to the World Trade Organization, as the exchange of knowledge and experiences gained from these meetings will have a significant positive impact on improving Iraq’s negotiating capabilities and achieving its economic goals.”

The statement indicated: “This participation is part of the ongoing efforts made by the Ministry of Trade to strengthen Iraq’s international economic relations and take advantage of available opportunities to enhance economic and commercial development in the country.” https://www.mawazin.net/Details.aspx?jimare=251576

Iran Reveals How It Gets Dollars For Gas Exported To Iraq

Economy   2,424 views  Alsumaria News – Economy  The Iranian Agriculture and Natural Resources Committee revealed, today, Saturday, the mechanism by which Iran obtains dollars in exchange for gas exported to Iraq, despite the American sanctions.

Iranian parliamentary committee member Ali Akbar Alizadeh   told the newspaper "Ettelaat", followed by Sumaria News, that at the beginning of the 13th government (Raisi's government), gas exports to Iraq reached the lowest possible level, but with the redesign of energy trade, the relationship with Iraq developed, and a contract was signed to export gas to Iraq for 5 years.

He added, "In a settlement with Iraq, we also found a new way to clear with fuel oil, by replacing Iranian gas with Iraqi fuel oil," noting that "due to the activity of our private sector in selling fuel oil, we obtained a high income from foreign currencies, and in this way, we strengthened the clearing settlement system."  LINK

7 Biggest Ways You’re Wasting Money While Traveling

7 Biggest Ways You’re Wasting Money While Traveling

Andrew Lisa  Fri, July 19, 2024  GOBankingRates

Travel demand continues to soar, and naturally, prices have soared along with it.

If you have a vacation coming up, you should expect to spend more — but you should also strategize to spend less wherever you can. Knowing which purchases don’t deserve your dollars, pesos and euros is the best way to start.

Here are the most common budget-busting wastes of money to avoid when you travel.

Buying Pricey Gift Shop Trinkets

The easiest way to waste your money on any vacation is in the gift shop. Usually, the shot glass, coffee mug or indigenous mask you splurge on winds up collecting dust in a box soon after your return flight touches down.

 “Most tourist destinations have souvenir shops that charge significantly higher prices for their merchandise compared to the local markets that are outside the tourist hotspots,” said Kevin Mercier, founder of the travel blog Kevmrc.com. “Travelers often end up wasting their money by purchasing souvenirs like keychains, shirts, and magnets at these over-priced shops. I always compare prices at different shops before purchasing, which helps me make a more informed decision.”

Overspending on Hotels

As the COO of Exotic Voyages, a luxury travel company offering private and custom-made tours, James Thai knows it’s easy to save money on hotels and resorts no matter your budget or lifestyle. However, it’s also just as easy to overspend.

“One of the biggest money traps for travelers is splurging on accommodations,” said Thai. “While a comfortable stay is important, it doesn’t mean you have to break the bank. Avoid overpaying for hotels in prime locations or choosing luxury options when budget-friendly alternatives are available. Consider staying in guesthouses, hostels or vacation rentals, which often offer excellent value for money without compromising quality. Additionally, booking your accommodation well in advance or taking advantage of last-minute deals can help you secure affordable rates.”

Dining at Tourist Traps

When you eat at the crowded and trendy restaurants you see in hotel and train station brochures, overspending is always on the menu.

“Another common mistake is falling into the tourist trap of expensive and mediocre restaurants,” said Thai. “Instead of dining at heavily advertised tourist hotspots, explore local eateries and street food stalls where you can savor authentic cuisine at a fraction of the cost. Engage with locals or consult online resources to discover hidden gems that offer delicious food and an immersive cultural experience. Not only will you save money, but you’ll also embark on culinary adventures that create lasting memories.”

Paying Foreign Transaction Fees

Although overpriced souvenirs and tourist-trap restaurants are ill-advised purchases for tourists on a budget, at least they give you something to show for your dollars. But when you pay for the privilege of spending money, you might as well just throw your cash in the trash.

“One of the things people spend the most amount of money on unnecessarily are foreign transaction fees,” said Nicole Cueto, a certified travel advisor with Fora Travel who’s visited 41 countries and all seven continents. “When paying for something abroad with your credit card and prompted with the choice of whether to pay in the local currency or your home currency, always choose the local currency. You’ll get the best conversion rate. It might not seem like a big difference, but it adds up.”

T0 READ MORE:  https://www.yahoo.com/finance/news/7-biggest-ways-wasting-money-133021858.html

Does It Seem That Every American Has More Money Than You?

Does It Seem That Every American Has More Money Than You?

Here’s why everyone in America seems to have more money than you. It may not be what you think

Vawn Himmelsbach  Updated Thu, July 18, 2024  Moneywise

If your friends, family, and coworkers always seem to be dining out, going to parties, taking exotic vacations — and maybe even paying $2,000 each for Taylor Swift tickets — while you clip coupons for groceries, you might feel like everyone you know has more money than you.

This could be especially painful if you’re feeling the pinch of inflation, right down to your grocery bill.

But Americans have a lot of debt. In fact, U.S. household debt reached $17.69 trillion in the first quarter of this year, according to data from the Federal Reserve Bank of New York (FRBNY). Although inflation has been mostly declining over the past two years — after pandemic highs — the Consumer Price Index increased 3.3% during the 12 months ending May 2024.

As if the debt weren’t enough, almost half of Americans (48.6%) consider themselves “broke,” according to a MarketWatch Guides survey, with about two-thirds (66.2%) “living paycheck to paycheck.”

Considering the financial instability of everyday Americans, why does it appear like everyone is living the high life — except you?

Racking up credit card debt

Americans have an enormous amount of credit card debt. Outstanding balances on credit cards reached a grand total of $1.12 trillion in Q1 — up 13.1% from the same period last year — according to data from FRBNY.

This is a grim milestone, as 2023 was the first time outstanding credit card balances surpassed the $1 trillion mark.

Another Bankrate survey found that 49% of credit card holders were carrying a balance from month to month in 2023. In some cases, Americans may be relying more on their credit cards as their finances are stretched thin, thanks to the higher cost of everyday expenses and higher interest rates on credit and loans.

But with credit card interest rates around the 21% mark — and in some cases as high as 30% — using a credit card to foot bills or bridge monthly shortfalls can be a losing game. If you buy groceries with a credit card and only make the minimum monthly payments, it could take years to pay off that bill, since you’ll be paying back the interest rather than the principal.

In other cases, people might be living the high life by charging everything to their credit cards (or even taking out loans), while ignoring the consequences. So, while it might look like they have a lot of disposable income, they’re racking up more and more debt, which eventually will catch up with them.

Making lifestyle sacrifices or trade-offs

Maybe one of your friends always seems to be traveling to yet another exotic locale. It’s possible they’re living beyond their means, but they could also be making sacrifices in other areas to prioritize travel. For example, maybe they’ve chosen not to buy a car and use public transit instead, so they can funnel more of their budget toward travel.

A LendingTree study of census data found that 18.3 million homeowners in the U.S. spend more than 30% of their monthly income on housing. So if someone you know has a beautiful home, they may have chosen to make sacrifices in other areas — such as entertainment expenses or vacations — so they can afford their home.

Some people you know may be working long hours and missing time with family and friends in order to fund their lifestyle. They also might be working side hustles to bump up their disposable income.

TO READ MORE:

https://news.yahoo.com/news/finance/news/why-everyone-america-seems-more-105500103.html

7 Questions You Should Never Answer When Buying a Car

7 Questions You Should Never Answer When Buying a Car

Andrew Lisa  Thu, July 18, 2024  GOBankingRates

Unless you live for the wheel and deal, car dealerships can be an intimidating place for potential buyers. Not only are you entering an unfamiliar territory inhabited by experts, but there’s a lot of pressure to make the right choice.

Expensive to buy and maintain, worth less and less with each mile driven, car ownership can be both a burden and a necessity. According to Kelley Blue Book, the average new car price was a record high $48,644 in June 2024 — just $266 more than the month before and $307 lower than in June 2023.

It’s might not always be possible to enjoy the car buying experience, but you can certainly reduce anxiety by knowing what you want and keeping certain information close to your chest. Read on for seven questions you should never answer when buying a car.

“How Much Do You Know About Cars?”

When it comes to a major purchase, never put yourself at a disadvantage. If you’re planning on spending thousands on a new vehicle, you have to do your research.

That said, even if you know less than nothing about cars, don’t let a salesperson know. Dealers are trying to sell cars as eagerly as you want to buy one.

Get a good idea of what you want, check reputable website rankings and don’t buy any car you’re unsure of — it’ll remind you every day of the mistake you’ve made.

A salesperson wants to make the biggest commission possible. To do that they want to take the reins and guide you through the process on their terms, not yours.

 “Why Do You Need a New Car?”

There’s no reason to be insolent, but the reason you’re buying a new car is irrelevant to a salesperson/stranger. Divulging personal, professional or financial information — or even a motive — while buying a new-to-you vehicle is unnecessary during the negotiating of a sale.

When you drive your clunker into a dealership hoping that you’ll be landing the car of your dreams, you’re the one in charge, regardless of how poor that clunker looks and rides. Even if you’re desperate, knowing exactly what you want will have the salesperson following your lead.

“How Much Are You Willing To Pay Monthly?”

To Read More:   https://www.yahoo.com/news/finance/news/7-questions-never-answer-buying-130031537.html

7 Ways To Start Building Wealth Like the Rich

7 Ways To Start Building Wealth Like the Rich

Jordan Rosenfeld  Wed, July 17, 2024   GOBankingRates

The wealthy may seem to have some financial magic or luck that the average person does not. However, most of their strategies are not all that complicated.

While the rich may have more money to work with than you, with the power of compound interest and other strategies, building wealth is something anyone can learn how to do. Read on to explore the seven steps to start building wealth like the rich.

Diversify Investments

Investing wisely and diversifying one’s portfolio was a hallmark of wealth-building strategies in the previous year, according to Khwan Hathai, CFP and certified financial therapist at Epiphany Financial Therapy. “This approach, rooted in the principle of not putting all one’s eggs in one basket, involves spreading investments across various asset classes to mitigate risk while capitalizing on growth opportunities.”

For someone looking to emulate this, Hathai suggested starting to invest in a mix of financial products such as stocks, bonds, real estate or even exploring newer areas like cryptocurrencies or ESG (environmental, social and governance) investing, depending on one’s risk tolerance and financial goals.

Focus on Growth over Gains

A focus on long-term growth over short-term gains has always been a distinguishing factor of affluent investors as well, Hathai said. “[The rich] look beyond the volatility of markets, concentrating on assets and ventures that promise sustainable growth.”

She encouraged a patient and focused approach to investing, where the emphasis is on the interest appreciation over years or decades, rather than quick wins.

Utilize Tax Advantaged Accounts

To Read More:  https://www.yahoo.com/news/finance/news/7-ways-start-building-wealth-123008400.html

5 Moves Every Woman Should Consider Before Retirement

5 Moves Every Woman Should Consider Before Retirement

May 23, 2024  by  Jennifer Taylor

Retirement should be relaxing. However, it’s hard to relax if you’re weighed down with financial woes.

As a woman, you probably spend much of your life taking care of others. However, you also need to take care of yourself, which includes ensuring your finances are ready for retirement.

Whether you’re planning to retire in the next few years or the next few decades, you’ll need to do a lot of planning. The more prepared you are, the better your chances of being in a good financial place to enjoy your golden years.

Wherever you are in your journey, here’s a look at five moves every woman should consider before stepping away from the workforce.

1. Estimate How Much You’ll Spend in Retirement

You can’t know if you have enough saved for retirement without estimating the amount you’ll spend each year.

Generally speaking, people tend to spend 55% to 80% of their current income each year in retirement, according to Fidelity®. Of that, approximately 15% of expenditures are healthcare related2.

Therefore, if your ending salary was $100,000 per year, you’ll likely need $55,000 to $80,000 per year in retirement — including approximately $15,000 in healthcare-related expenses.

It’s also important to think of the lifestyle you desire in retirement, as this will largely drive your cost of living. For example, you might save money by no longer having to commute to work and downsizing to a smaller home, but you could also spend more with frequent travel or buying a vacation home.

There’s no one-size-fits-all approach to retirement spending, so take the time to customize your plan to fit your lifestyle.

2. Devise an Income Plan

Right now, you pay for your expenses with your weekly, bi-weekly or monthly paycheck. However, this steady paycheck will come to an end when you retire.

Chances are, you’ll have a variety of income streams in retirement — Social Security, perhaps a pension, an annuity, a 401(k), etc. This is great, but you’ll need to figure out which accounts you’ll be tapping to pay your monthly bills.

It can be wise to work with a financial planner on this, as they can help you create a plan that minimizes taxes, while maximizing future earnings. This will ensure you’re truly getting the most from your money.

To Read More:

https://www.gobankingrates.com/retirement/planning/moves-every-woman-needs-to-make-before-retirement/?utm_term=morefrom_link_3&utm_campaign=1278041&utm_source=yahoo.com&utm_content=8&utm_medium=rss

The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy

The ‘Hermit’ Savings Rules: 8 Frugal Tips for Today’s Economy

Cindy Lamothe   Tue, July 16, 2024  GOBankingRates

Consumer habits across the world have been altered significantly over the past few years — for obvious reasons and otherwise — in what economists have dubbed “the age of the hermit consumer.”

 “For ‘hermit’ consumers, it can be really easy to make impulse purchases and overspend because of how easy and convenient shopping online is,” said Carter Seuthe, CEO of Credit Summit Consolidation. “Something that can be helpful to maintain a more frugal budget is just to define your expectations and priorities when it comes to the amenities you have.”

Below are some expert rules for living more frugally in today’s economy.

Embrace a DIY Mentality

“DIY is my new favorite hobby,” said Andrei Vasilescu, co-founder and CEO of DontPayFull. “It’s cost effective, and YouTube is a great teacher. About 50% more people are getting into DIY now.”

Syed Lateef, business coach and CEO of SyedBNB, agrees.

“We can all see it,” Lateef said. “The focus has shifted towards a more home-oriented lifestyle, and I can personally say that more people are embracing do-it-yourself (DIY) activities.”

He said this is a good thing because mastering basic skills for home and car repairs can lead to considerable savings.

“Nowadays, the hundreds of online tutorials and resources makes it easier than ever to learn and perform these tasks ourselves,” he said, “reducing the need to hire professionals.”

Save Money by Cooking at Home

“The driving force behind the hermit economy isn’t entirely clear,” Lateef said.

He said it could be due to the lingering hesitation for close-contact services, the increase in remote work or a shift in social values.

“What’s obvious, though,” he said, “is that consumers are now more inclined to spend on home-centric activities.”

As a result, he said, many followers of the FIRE (financial independence, retire early) movement have come to realize that frequent dining out can be quite costly. So, frugal individuals are embracing the art of cooking at home, experimenting with budget-friendly and nutritious meals.

He added, “Hermit consumers save money but also encourage healthier eating habits.”

Focus on Secondhand Finds

In the current economic climate, looking at secondhand alternatives before buying new is a wise strategy, Lateef suggested.

“I believe that the ‘hermit’ consumers are now placing more emphasis on sustainability because of the pandemic, so shops like thrift stores and online marketplaces are trending because of the treasure troves of affordable, yet quality items.”

In terms of frugality, he said, this not only helps save money but also aligns with sustainable practices by repurposing and recycling items.

In the current economic climate, looking at secondhand alternatives before buying new is a wise strategy, Lateef suggested.

“I believe that the ‘hermit’ consumers are now placing more emphasis on sustainability because of the pandemic, so shops like thrift stores and online marketplaces are trending because of the treasure troves of affordable, yet quality items.”

In terms of frugality, he said, this not only helps save money but also aligns with sustainable practices by repurposing and recycling items.

To Read More: https://www.yahoo.com/finance/news/hermit-savings-rules-8-frugal-140043078.html

2 Options You Have When Your Bank Starts Charging You for a Checking Account

2 Options You Have When Your Bank Starts Charging You for a Checking Account

Gina Hagler  Sun, July 14, 2024  GoBankingRates

Most of us are used to our checking accounts being free to own and operate; we expect to pay fees only for specific transactions like late payments to credit cards or for overdrafts.

These fees can add up, with charges piling on top of charges for a single transaction. Should new banking rules become the standard going forward, however, there would be an upper limit on how much banks can charge for certain fees. Specifically, the Consumer Financial Protection Bureau (CFPB) seeks to prevent banks from being able to charge more than $8 for late credit card payments and $3 for overdrafts, as explained by Payments Dive.

According to Wall Street Journal, JPMorgan Chase — the largest consumer bank in the country — plans are underway to circumvent the regulation by instituting more consumer charges for owning a checking account or using wealth-management tools. Currently, most bank maintenance fees are avoided by having a balance above a threshold. But this could turn into a fee regardless of your balance.

 It won’t necessarily end there: reportedly, they are also considering increasing their interest rates and enacting a stricter policy on credit card loans. With this news in mind, here are your options should your bank start charging for a checking account.

Switch Your Account Type

You may have luck getting in contact with your bank supervisors and requesting to switch your account to avoid such fees. Certain individuals, like senior citizens or students, are often able to have monthly service fees waived— some banks will even offer various paid services for free, as explained by Forbes.

There are checking accounts specifically designed for seniors that are unavailable to others. If you don’t want to switch your account entirely, you may be able to qualify for a waiver within your existing account after passing the age threshold.

 Forbes also notes that the banks may introduce other fees in exchange for those waived. One possibility is overdraft fees which, if the CFPB is successful and the bank remains user-friendly, would be minimal.

To Read More:  https://www.yahoo.com/news/finance/news/2-options-bank-starts-charging-130112635.html

4 Reasons Retired Women Need More Money Than Men

4 Reasons Retired Women Need More Money Than Men — And What To Do About it

June 6, 2024  by  Jennifer Taylor

Like many things, retirement isn’t the same for men and women. Specifically, retired women tend to need more money than men.

There’s a variety of reasons for this, which can be frustrating for women. Retirement is often thought of as time to enjoy your golden years, but it’s hard to do so without sufficient funding.

Walking away from a steady paycheck can be hard — or even impossible — for women who don’t have the savings to do so. You’re not alone if you feel like you’re behind on your retirement savings, but you can catch up.

Here’s a look at some reasons why retired women need more money than men, and more on how an annuity could help solve this problem.

1. Career Interruptions

Women are statistically more likely than men to take time away from the workforce to care for others, like children or aging parents. For example, only about one in five stay-at-home parents in the U.S. are dads, according to the Pew Research Center1.

In 2023, 66% of women identified as caregivers, compared with just 34% of men, according to an AARP New York Survey. Of current and former women caregivers, 35% said they didn’t work while providing care2.

Taking time away from the workforce can have a profound effect on women’s retirement savings. While they’re not working, they’re of course not earning a paycheck, but they’re also not able to take advantage of any employer-matched retirement savings benefits or pay into Social Security.

Even when they return to the workforce, being away may impact long-term career growth. This can cause them to have a lower earning potential, which may limit their retirement savings.

2. The Gender Pay Gap

In 2022, women earned 82% as much as men on average, according to the Pew Research Center3. This isn’t anything new, as women earned 80% as much as men in 2002.

Not earning as much as men can impact women’s finances in both the present and future — like in retirement. For example, Fidelity® recommends putting 15% of your pretax income aside for retirement each year4.

However, working women might not be able to afford to save that much for retirement. Even if they can manage to do so, it won’t total as much as male co-workers earning more than them.

Social Security benefits are also based on average career earnings. In 2021, the average annual Social Security income received by women ages 65 years and up was $14,204, compared with $18,108 for men, according to the Social Security Administration5.

To Read More:  https://www.gobankingrates.com/retirement/planning/reasons-retired-women-need-more-money-than-men/?utm_term=morefrom_link_4&utm_campaign=1277605&utm_source=yahoo.com&utm_content=10&utm_medium=rss