You Can Now Withdraw $1K From Your 401(k) Penalty-Free — but You Still Shouldn’t

You Can Now Withdraw $1K From Your 401(k) Penalty-Free — but You Still Shouldn’t

Gabrielle Olya  Tue, July 30, 2024  GOBankingRates

As of the beginning of this year, the Secure Act 2.0 allows Americans to withdraw up to $1,000 from tax-advantaged retirement accounts to pay for “unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses” without having to worry about an early withdrawal penalty.

While this can serve as a financial lifeline, some financial experts caution against tapping into your retirement savings to cover emergencies. Here’s why you may want to think twice before making a withdrawal from your long-term savings.

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.

The Downsides to Making an Emergency Withdrawal From Your Retirement Fund

If you need money ASAP, making an emergency withdrawal from your retirement savings might seem like a no-brainer.

“A hardship withdrawal can give you immediate access to the money you need without having to worry about paying it back,” said Mindy Yu, director of investing at Betterment. “This can be a lifesaver if you’re facing urgent, dreadful financial challenges, like unexpected medical bills or the threat of foreclosure on your home. However, an emergency withdrawal from your retirement savings can have several downsides and long-term impacts.”

It’s important to keep these downsides in mind before taking out any funds.

Reduced Retirement Funds

“The most immediate impact is a decrease in your retirement nest egg, reducing the amount of money available when you retire,” Yu said.

Delayed Retirement

If you rely on these withdrawals too often, you may not be able to retire when you want to.

“Reduced funds may result in having to work longer to compensate for the shortfall,” Yu said.

Missed Earnings Potential

Money in your retirement savings account compounds over time, so when you withdraw funds, you also miss out on that money’s future earnings.

“Emergency withdrawals can disrupt the time your money is invested in the market, affecting long-term savings goals,” Yu said.

“Because of these reasons, careful consideration and exploring other financial avenues are crucial ahead of deciding to withdraw from your retirement savings,” she noted.

Alternatives to Tapping Into Your Retirement Savings

https://www.yahoo.com/finance/news/now-withdraw-1k-401-k-150125060.html

These Are the 6 Most Common Money Questions

I’m a Financial Influencer: These Are the 6 Most Common Money Questions I’m Asked

Nicole Spector  Tue, July 30, 2024   GOBankingRates

With general financial literacy and better financial planning exploding on social media, millions of folks are turning to financial influencers to get their money questions answered without breaking the bank.

What are people the most curious or confused about? What are they reaching out to financial influencers to find out about? And how do financial influencers answer their queries or point them in the right direction?

GOBankingRates spoke with Jeff Sekinger, a financial innovator and entrepreneur, and the CEO and founder of Nurp LLC. Sekinger courts a following of 1.1 million on Instagram.

These are the six most common money questions he’s asked — along with how he answers them.

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.

‘How Might a Trump Presidency Impact the Economy?’

Sekinger is constantly spammed with burning questions about money. A common one recently revolves around Trump. Specifically, if Trump is re-elected, how would his presidency impact the economy? More specifically, which markets, sectors and companies could benefit?

“A Trump presidency could have significant implications for the economy and markets,” Sekinger said. “Some investors are optimistic that Trump’s policies, like tax cuts and deregulation, could boost the economy and markets. Others are more cautious, citing concerns about Trump’s trade policies and potential geopolitical instability.”

According to Sekinger, companies that could benefit from a Trump presidency are the energy, financial and defense sectors.

“On the other hand, companies in sectors like healthcare and technology might face headwinds,” Sekinger said.

‘What Do I Need To Know To Be A Successful Young Investor?’

Everyone on the path to financial freedom needs to be investing. Investing can be complex, and naturally, people have questions. Commonly Sekinger is asked what you need to know to become a successful young investor.

“As a young investor, time is on your side,” Sekinger said. “Take advantage of compound interest by investing as early as possible, even if it’s just a small amount each month. Consider contributing to a Roth IRA or your employer’s 401(k) plan. Also, educate yourself about investing and avoid getting caught up in get-rich-quick schemes.”

‘How Can I Build Wealth While Managing Student Loan Debt?’

To Read More:  https://news.yahoo.com/news/finance/news/m-financial-influencer-6-most-140125604.html    

Their Worst Financial Blunders That Still Haunt Them To This Day

People Are Sharing Their Worst Financial Blunders That Still Haunt Them To This Day, And I Really, Really, Reeaaaally Feel Their Pain

BuzzFeed   Mon, July 29, 2024

Reddit user Dira_Jo asked the community, "What do you consider the worst financial decision of your life?" People swiftly took to the comments to share the money mistakes that still haunt them years later. Here's what people revealed:

1."Not contributing the max amount into my 401k. I worked at that company for 27 years and could’ve retired long ago."—u/parrothead_69

2."Being a tobacco user. I've told all my friends younger than me, as well as my kids, never to start using tobacco or Nicotine products. I started at 18 and am almost 45 now. I've quit a few times for a while, but a ton of stress at work and other things brought me back.

I've spent too much time and money both using, trying to quit, and dealing with ridiculous price increases and taxes that are supposed to help deter but really just squeeze more from us addicts."

"I have lived the rest of my life very responsibly, living within my means. I bought a home and then sold it once my family grew to purchase a bigger house while the market was still decent here and interest rates were low. I've invested the max in my 401k. I buy used vehicles and pay them off as soon as possible. The wasted money comes from something I know is bad for my health in the long term.

I have to admit, I have little control over it, although I keep trying. It sucks. So, any of you younger folks here, take it from me. It may seem fun, cool, or relaxing as a teen or young adult, but do yourself a favor for both your wallet and health and stay away from dipping, smoking, vaping, etc."—u/BigSarge79

3."Loaning money to friends. Or anything of financial value, for that matter. To this day, I will not loan so much as a penny without some kind of leverage against the person to pay me back. That saying about loaning people money is true. If you're going to loan money to somebody, you should do it assuming you won't get paid back. That has happened to me every single time. I will never loan money or things of monetary value ever again."—u/Busy_Ad2627

4."Letting my dental insurance lapse. I had the same plan for years, plan options changed, and I forgot to update to the new plan. I got my first cavities and root canals a few months later, and it cost thousands rather than hundreds."—u/AurelianoTampa

5."I was short on rent by $500 in 2013, so I sold 16 Bitcoins to cover the difference. Those coins are worth over a million dollars today."—u/Discokruse

6."My first trip to college. I racked up $56k in debt, and I dropped out. The cost of campus housing was more than the tuition, and the program was garbage. The school later lost its accreditation and went out of business. Students with federal loans had their balances discharged, but mine were private. I wish I had done some serious soul-searching at the time and thought longer about my goals and career path, but live and learn."—u/dackdeegan

7."My children. They're the best emotional decision ever, but the tiny accountant in my head reminds me every time I book a hotel or buy plane tickets for a holiday how much nicer of a holiday I could afford if we'd stopped at one. Don't even get me started on how much it costs to eat at a restaurant for a family of six, especially now my oldest thinks she's too grown up for the kids' menu."—u/Due-Criticism9

https://www.yahoo.com/finance/news/people-sharing-worst-financial-blunders-031602188.html

Do I Have to Worry About Gift Tax?

If I Give My Child $30,000 Towards Their Wedding, Do I Have to Worry About Gift Tax?

Mark Henricks  Sat, July 27, 2024   SmartAsset

Imagine your child is getting married and you want to help pay for their wedding. You’ve been saving for years and now have $30,000 set aside for their big day, which you plan to hand over in the form of a check.

However, before you pass along that much cash, it’s important to understand the potential tax implications of making a $30,000 gift. A gift that size could require you to pay the federal gift tax, which can reach up to 40%. The good news is you may avoid paying gift taxes altogether, but there are reporting requirements and other limitations to keep in mind. Consult a financial advisor to minimize your gift tax obligations.

Federal Gift Tax at a Glance

The federal gift tax applies when you transfer money or property to someone else without receiving something of equal value in return. Gift tax rates range from 18% to 40% based on the size of the gift.

However, not all gifts trigger this federal tax. The IRS allows you to give away up to $17,000 ($34,000 for married couples) per year to each individual without owing any taxes on the gift. This is called the annual exclusion, and in 2024 it will increase to $18,000 per person.

However, gifts that exceed this annual exclusion aren’t necessarily taxed either. Instead, they reduce the amount of money or property you can give away tax-free over the course of your lifetime. This lifetime limit is known as the basic exclusion amount or lifetime exemption and it’s adjusted each year for inflation.

The gift tax only applies when you exhaust your lifetime exemption. In 2023, a person can give away up to $12.92 million over the course of their lifetime without triggering the gift tax (this will increase to $13.61 million in 2024). For example, if someone were to give away $13 million, they would pay gift taxes on only $80,000. And if you need additional help planning for major gifts, consider matching with a financial advisor.

How the Gift Tax Could Affect a $30,000 Wedding Gift

If you want to give a child $30,000 to help pay for a wedding, there are a few different ways it could be structured.

As a gift solely from you to your child, a $30,000 wedding gift would avoid most tax liability on its own. The gift only exceeds the $17,000 annual exclusion for 2023 by $13,000, so that’s all that could potentially be taxable if you’re single.

If this is your first time exceeding the annual exclusion, there’s more good news. In that case, the $13,000 excess would simply reduce your $12.92 million lifetime exclusion by that amount. You would not actually have to pay any gift tax unless you exceed your remaining lifetime exclusion, though you still have to fill out Form 709.

Alternatively, you could gift both your child and their future spouse $15,000 each and avoid the annual exclusion threshold (remember, you can gift up to the annual exclusion amount per year per person).

To make sure you structure your gifts in your best interest, talk it over with a financial advisor.

How to Avoid Gift Tax on a $30,000 Wedding Gift

TO READ MORE:

https://www.yahoo.com/finance/news/worry-gift-tax-pay-30-122213443.html

7 Biggest Cash Withdrawal Mistakes

I’m a Bank Teller: 7 Biggest Cash Withdrawal Mistakes I See People Make Every Day

Madeline Duley  Fri, July 26, 2024  GOBankingRates

If you have a bank account, you’re likely familiar with the process of withdrawing cash, depositing checks and handling bills. While these might seem like basic tasks, there are a few common mistakes that are easy to make when carrying out these seemingly simple financial transactions.

Find out from a bank teller if you’re making these seven common cash withdrawal mistakes — and learn how to avoid them.

Getting Bills Too Large

Although efficient and compact, large bills aren’t as versatile as you might think.

“One mistake I often see is taking out large bills to spend at local businesses, because most won’t accept them because businesses are worried about fraudulent bills,” said Haley West, head teller at Kohler Credit Union.

The usability and convenience of smaller bills are well worth the annoyance of carrying around a thicker stack of cash.

Requesting Brand New Bills

There’s nothing more appealing than fresh, crisp bills, especially when you’re giving cash as a gift. However, requesting brand-new bills might have frustrating consequences.

“A mistake members make is requesting brand new bills as they are sticky and members tend to come back thinking that we shorted them or they gave too much when they purchased because the bills were stuck together,” West said.

Neglecting To Balance Accounts

Life gets busy and it can be hard to stay on top of account balances. An easy mistake to make is withdrawing cash from an account with inadequate funds.

“A staggering 19% of all payments in 2020 were cash transactions,” said Oliver Brifman, business insurance and financial services expert at eMerchant Authority. “Yet, many customers withdraw without checking their balance, leading to overdraft fees. Always check your balance before a withdrawal to avoid the plunge into overdraft territory.”

Rushing

When you are in a rush or distracted, it’s easy to make mistakes.

“Based on my time as a bank teller, I learned firsthand how easily little mistakes can happen with cash transactions if you’re not careful,” said Steven Kibbel, former bank teller and now a Certified Financial Planner and financial advisor at Prop Firm App. “When people are rushed or distracted, they often make the mistake of miscounting bills, mixing up denominations or neglecting to double-check important details on checks.”

Save yourself the headache later by double-checking your accounts, counting your cash and remembering to breathe.

Forgetting ID

Surprisingly, the most common mistake people make when withdrawing cash is a very simple one: forgetting their ID.

https://www.yahoo.com/finance/news/m-bank-teller-7-biggest-160040491.html

Take The Cash Or Lifetime Annuity?

Take The Cash Or Lifetime Annuity?

If You Win The Lottery, Here's What Suze Orman Suggests You Do: Take The Cash Or Lifetime Annuity?

Ivy Grace  Wed, July 24, 2024  Benzinga

Unfortunately, winning the lottery is just a dream for most people. While the odds may not technically be in your favor, it's fun to fantasize about what you'd do if you found yourself winning millions – or, in some cases, hundreds of millions.

Podcast host and finance expert Suze Orman has offered some advice for lottery winners over the years, emphasizing the importance of making informed decisions about managing sudden wealth. One of the most commonly debated and hardest decisions is choosing between a lump sum or a structured settlement.

In 2022, Speaking at the National Structured Settlements Trade Association’s annual conference, Orman covered the benefits of structured settlements for lottery winners. She explained, “If you win a lottery, it’s no different from getting a large inheritance. All that money’s gone within a few years. Why is that? Because they don’t know how to structure their finances to last forever."

Orman understands that not everyone’s a financial whiz. While her advice changes depending on your money know-how, she suggests a structured settlement or annuity for those new to managing large amounts of money. This approach doles out your windfall in steady chunks, stopping winners from blowing it all in a blink – a common lottery winner woe.

Lottery winners don't have the best track record, statistically speaking. According to the Certified Financial Planner Board of Standards, nearly one-third of lottery winners eventually go bankrupt within three to five years.

For financial matters, Orman suggests taking a lump sum. In a 2019 CNBC article, she advised, “If you feel capable of investing it, if you feel capable of managing it, and you want to do that, take the lump sum.” That way, you’re in control of your own money.

If you're fortunate enough to win an exceptionally large jackpot in the hundreds of millions, Orman leans toward recommending an annuity in this case, too. This strategy aims to prevent the risk of spending the entire amount too quickly. Annuities often get a lot of backlash but can be the right choice in some situations.

TO READ MORE:  https://www.yahoo.com/news/finance/news/win-lottery-heres-suze-orman-190013691.html

Here’s How Much Cash You Need Stashed If a National Emergency Happens

Here’s How Much Cash You Need Stashed If a National Emergency Happens

Jaime Catmull  Wed, July 24, 2024   GOBankingRates

You’ve probably heard countless times that it’s important to have a rainy-day fund set up “just in case” something unexpected were to happen. But we’re now at a time when having an emergency fund is more vital than ever.

The coronavirus pandemic was a prime example of how something unexpected can have devastating effects on the economy at large and on an individual level, too. While we all hope the worst of it is over, here’s how to be prepared in case it’s not — plus how to set up a fund for unexpected future national emergencies.

Why You Need a National Emergency Fund

Part of being prepared for any contingency, big or small, is having a reserve of emergency cash at your disposal at all times. When you can’t rely on accessing your funds electronically, you’ll need some legal tender to buy food, gas or other necessities.

“Whether it’s Mother Nature or some other disaster out of your control, you always want to be prepared by having some emergency cash on hand,” said Annalee Leonard, an investment advisor representative and president of Mainstay Financial Group. “Banks and ATMs may not be up and running for days after a strong storm. I recommend my clients have three to five days’ worth of spending money, just in case.”

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.

How To Decide How Much To Save

To decide how much to save for an emergency fund, you’ll need to ask yourself a couple of questions:

How much will I need for an extreme catastrophic event?

How much can I afford to save?

“It’s wise to have a small amount of physical cash at home for the truest of emergencies when banks are not operating,” said financial tech writer and expert, Priyanka Prakash.

Aim To Save $2,000

“Individuals should be prepared to pay for essential or non-discretionary expenses out-of-pocket,” said Brett Tharp, CFP and advisory live training specialist at eMoney Advisor. “Temporary lodging or shelter, fuel, food, water and necessary medications fall into this category. This will differ for each person depending on their level of preparedness or perception of how likely a catastrophic event might be.”

To cover those costs, $2,000 is a good figure.

“The rule of thumb I advise my clients is to keep $1,000 to $2,000 in cash in case banking operations are shut down due to a national emergency or catastrophe,” said Gregory Brinkman, president of Brinkman Financial in Tulsa, Oklahoma.

There’s No ‘Magic Number’ for How Much To Save in Your Emergency Fund

Despite these suggestions and what some other experts might advise, though, there’s no magic amount you should have nestled away in your emergency fund. The answer for how much you should save for an emergency situation is that you should do what feels right to you. No matter the amount, an emergency fund is absolutely necessary — so make it a priority to build one.

So if you can only afford to set aside $1,000 for an emergency fund, that’s better than not saving at all.

The Cost of Covering Necessities

Take into account that in a national emergency, inflation will rise, demand for necessities will increase and price gouging will likely ensue. With all that in mind, in addition to your regular emergency savings, you should prepare to have enough to cover the following costs in a national emergency situation (dollar amounts are estimates):

TO READ MORE:  https://www.yahoo.com/news/finance/news/much-cash-stashed-national-emergency-130023345.html

Wealthy Beginnings: How the Rich Raise Their Babies Differently

Wealthy Beginnings: How the Rich Raise Their Babies Differently

July 7, 2024 5 by  Cindy Lamothe  Edited by  Ashleigh Ray

Raising babies takes a lot out of you — emotionally, physically and financially. Rich parents are often better equipped to handle the toll because of one simple thing: resources.

“Wealthy families do not automatically make better parents, but they do have access to more support and therefore more time than most,” said Christine Landis, a former CEO of a global fintech company, a parent of two children and the founder of Peacock Parent.

Having this additional time and support allows both parents to be less resentful, and more present with their kids (and each other). Keep reading to see just how the wealthy raise their babies differently

They Count on a Full Staff of Helpers

“Ask any parent, and they will tell you that time is the ultimate luxury in parenthood,” explained Landis. “And this is exactly what wealthy parents can buy more of — time — in the form of delegation and outsourcing in parenthood.”

For example, wealthy families typically have multiple nannies, family assistants and private chefs to help with the duties typically expected of parents.

According to Landis, “The nannies work early morning shifts on weekends to allow the parents to sleep in together — a true luxury in parenthood — help with school drop off and pick up schedules and help keep the kids away from screens with good old fashion entertainment — like reading the same book over and over again.”

Family assistants also help maintain the household supplies, make doctors’ appointments and complete school paperwork — all the things that have to get done, but not necessarily by the parent.

“The private chef comes 3 times per week and handles the entire meal planning for the family — not just the kids — and saves both parents time and energy from grocery shopping, unloading, prepping, cooking and cleaning up meals for everyone.”

They Hire a Night Nanny

One of the most distinctive practices among wealthy parents is hiring a night nanny. This practice allows parents to ensure that they get adequate rest while their newborn is cared for by a professional during the night.

Head of growth at GoSummer, Dennis Shirshikov called this benefit multifaceted because “… parents are able to maintain their productivity and mental health which is crucial for those managing businesses or high-stress careers.”

TO READ MORE:  https://www.gobankingrates.com/money/wealth/how-the-rich-raise-babies-differently/?utm_term=incontent_link_3&utm_campaign=1278834&utm_source=yahoo.com&utm_content=9&utm_medium=rss

7 Major Differences Between Rich and Poor People

7 Major Differences Between Rich and Poor People, According To Money Expert Humphrey Yang

Adam Palasciano  Tue, July 23, 2024  GOBankingRates

Of course, everyone wants to be rich. The idea of not having to worry about money seems like a dream for most. But, becoming rich takes lots of discipline and determination. The reality is that it’s easier to be poor.

In a recent YouTube video from financial guru Humphrey Yang, he outlined the seven major differences between rich and poor people that are important to understand.

If you want to become rich, you’ll need to understand the key differences between the rich and the poor.

The Rich Are Subtle About Their Wealth

The rich are more focused on “stealth wealth”: they’re not trying to impress people with fancy cars, designer clothes and handbags, or expensive vacations. They’re modest and they’ve developed financial freedom and autonomy, rather than spending money on discretionary purchases.

When poor people come into money for the first time, they’re tempted to go out and spend money on things that they believe will give them some sort of status. This is exactly how not to become rich

The Rich Know It Takes Money To Make Money

The rich save and invest their money rather than spend it right away. They understand the idea of leveraging capital to scale their well. Poor people frequently tend to spend money rather than save money.

The reality is that the more you save, the easier it is for your money to work for you. Reaching a 6 figure portfolio is key to accelerating your financial growth.

The Rich Understand Delayed Gratification

The rich know that resisting impulsive purchases will lead to a big payoff later in life. Poor people tend to spend money on the things that bring them gratification now rather than save and invest that money for the future. Delayed gratification and stretching out your time horizon are both key to long-term wealth accumulation.

The Rich Invest in Assets

Rich people love to invest in assets. Poor people tend to just leave their money in a savings account rather than invest it. An asset is defined as a resource with an economic value that will provide a benefit to you at a later point in time. Assets can include real estate, stocks, index funds, retirement funds, etc. Typically, assets go up in value and some pay you just for owning the asset.

TO READ MORE:

https://www.yahoo.com/news/finance/news/7-major-differences-between-rich-195149153.html

When’s The Right Time To Turn Off The Tap?

Nearly half of young Americans rely on the bank of Mom and Dad to get by — When’s The Right Time To Turn Off The Tap?

Chris Clark  Mon, July 22, 2024   Moneywise

A new report from Bank of America suggests Gen Zers are relying on financial help from Mom and Dad — a “parent trap” that raises big questions about financial independence and the long-term impacts on their parents’ financial health, particularly their retirement savings.

The study found that 46% of adult Gen Z-ers rely on financial help from their parents, ranging from covering everyday expenses to helping with significant financial commitments such as rent, mortgage payments and other debt repayments.

About one in four respondents to BoA’s study said housing expenses were a chief barrier to financial independence, and over half said they do not pay for their housing.

Rising costs of living, inflation, student loan debt and economic instability have made it increasingly difficult for young adults to achieve financial independence. The COVID-19 pandemic exacerbated these issues, leading to job losses and reduced income that disproportionately affected younger workers.

The Bank of America study highlights a significant trend of young adults relying on their parents, but it’s essential for parents to recognize the long-term risks. By setting clear boundaries, providing financial education and gradually reducing support, parents can help their children become financially independent while safeguarding their own futures.

Risks to parents

While providing financial assistance to adult children can be a way for parents to show support and ensure their children’s well-being, it comes with significant risks, chiefly the impact on the parents’ own financial security and leaving their children unprepared to handle their own finances.

Financial expert Suze Orman warns that continuing to support adult children can severely compromise parents’ ability to retire comfortably. Orman argues parents often underestimate the long-term financial implications of this support, which can reduce their own savings when they need it the most.

Impact on retirement savings

Parents who use their retirement savings to support their adult children may find themselves in a precarious financial situation. Some parents are still supporting their children well into their 40s, delaying their own retirement and putting their financial future at risk. This prolonged financial support can lead to parents working longer than planned or significantly adjusting their retirement lifestyle to accommodate the shortfall in savings.

TO READ MORE:  https://www.yahoo.com/news/finance/news/nearly-half-young-americans-rely-142500016.html

I’m Comfortably Middle Class: The Best Money Advice I Ever Took

I’m Comfortably Middle Class: The Best Money Advice I Ever Took

Andrew Lisa  Sun, July 21, 2024  GOBankingRates

Financial publications love interviewing billionaires to learn about the money advice that propelled people like Bill Gates, Beyonce, Jeff Bezos and Warren Buffett to 10-, 11- and 12-figure success.

But how many people do you really know on the Forbes Richest list?

It might be more practical to learn about the advice that helped people with typical backgrounds and average salaries achieve stability and security in America’s ever-shrinking middle class.

GOBankingRates spoke with a business owner who went from financially faltering to fiscally fabulous in just a few years after building her money mindset around a simple yet transformative quartet of financial wisdom that she received when times were tough.

Times are not tough anymore.

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.

There Isn’t a Secret To Achieving Financial Security. There Are 4 Secrets.

Lisa Rehurek is the CEO and founder of The RFP Success Company, which specializes in consulting, training, and support services for medium-sized service-based companies bidding on state, local and education (SLED) requests for proposals (RFPs).

She is, by any reasonable standard, comfortably in the middle class — and she credits her financial security to a four-part piece of money guidance that she had the good sense to follow.

“The best financial advice I ever received as a middle-class person was to always live below my means, automate savings by putting 15% of every paycheck straight into investments and savings, understand needs from wants and cut back on frivolous spending to make money for bigger, more meaningful goals,” Rehurek told GOBankingRates.

When she received these pointers, she was in the best possible place to put them to good use — the bottom.

Sound Advice Turns a Halting Start Into a Trot. Then a Gallop.

TO READ MORE: https://www.yahoo.com/news/finance/news/m-comfortably-middle-class-best-200200410.html