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10 Surprising Things That Might Be Costing You Money Unnecessarily

Unknown expenses, money, personal finance, personal finance shopping, saving money

Many individuals shell out cash on items they believe fall outside their budget.


 Perhaps it's a coffee purchased on your commute to work that you could easily prepare at home, or maybe a fresh pair of shoes you did not actually require, acquired simply because they were discounted.


 Here are 10 items that specialists indicate might be an unnecessary expense.


 
 Regular tech upgrades:
 
 A marketing specialist named Bodo Lang from Massey University mentioned that many individuals squander funds by frequently “updating” their cellphones every one or two years. He explained, "Generally, the distinctions between older and newer versions are slight, so unless your current mobile device malfunctions or becomes inadequate, it’s advisable to keep using it for an extended duration—around three to five years."


 
 Subscriptions:
 
 If you find yourself with many unused subscriptions, it could swiftly turn into an unnecessary expense. These may include apps long since forgotten, several streaming services gathering dust, or recurring vitamin shipments you never needed. Recently, ASB introduced a novel “card tracker” tool designed to help individuals monitor and assess these subscriptions. According to the bank, one-third of ASB’s clientele spends over $100 monthly on such subscription-based costs.


 People find online subscriptions quite appealing due to the low upfront costs," Lang stated. "Nonetheless, these expenses add up significantly over one or even five years. Streaming services for music and movies illustrate this point well. The urge to stay informed, get fit, or be entertained through these specific means isn’t an essential requirement; rather, it’s a preference.


 
 Extended warranties:
 
 If you purchase a new device, you might be offered the option to buy an extended warranty.


 Rebecca Styles, who leads the investigation team at Consumer NZ, stated that individuals frequently spend large sums of money—hundreds of dollars—for coverage they already possess through consumer legislation.


 According to the Consumer Guarantees Act (CGA), both manufacturers and sellers must ensure that the items they provide meet a standard of reasonable quality and are suitable for their intended use. Generally, most devices, particularly those that are expensive, should function effectively for several years beyond what’s typically covered under the maker's warranty,” she explained.


 If your item develops an issue within a reasonable timeframe after purchase, you're entitled to get it fixed or, should repairs not be feasible, exchanged — this applies regardless of whether the maker’s guarantee period has lapsed.


 
 A few treatments for colds and flus:
 
 Belinda Castles, a research writer for Consumer NZ, stated that certain claims made by cold and flu treatments were not supported by evidence.


 "Many over-the-counter medications provide little benefit beyond a placebo effect. Instead, the most effective action is to consult with your physician for a medical certificate advising you to take some time away from work. This minimizes the risk of spreading the illness," she stated.


 Castle stated that paracetamol and ibuprofen were the optimal choice for those not feeling well, adding that these options are more economical compared to medications formulated specifically for colds.


 Nasal sprays might assist with stuffiness, however, relying on them beyond a few days can lead to adverse reactions.


 
 Some "green" products:
 
 It’s important to verify the certifications when you’re spending extra money on something claiming to be eco-friendly. According to Abby Damen from Consumer NZ, numerous consumers are willing to pay more for “sustainable” goods. "However, our evaluation of items at supermarkets and cosmetic products revealed many unsupported ‘eco’ assertions that companies failed to substantiate. Avoid being charged extra due to unfounded environmental promises.”


 
 Wasting money on power:
 
 Keeping your electric towel warmer running continuously may rack up about $3 per week. Although this might not significantly impact your expenses, exploring ways to reduce your electricity costs likely would—make sure to review periodically for potential savings opportunities.


 Based on your energy usage patterns, you might benefit from a time-of-use plan, which provides lower rates during off-peak hours. If you haven’t changed plans in the past couple of years, you may be paying an extra $300 to $500 annually. Try using Powerswitch or MoneyHub; they make it surprisingly simple to compare options,” advised investment consultant Jeremy Sullivan.


 
 Card surcharges:
 
 If you tap or wave your card for purchases, you might be losing up to 2% per transaction. Whenever possible, opting to insert or swipe may prove more financially savvy.


 
 Lotto tickets:
 
 Sullivan mentioned that individuals are squandering their cash on purchasing Lotto tickets. He stated, "The likelihood of hitting the jackpot? It’s one in 38 million. Actually, the real risk lies in considering it as part of your strategy rather than seeing it purely for fun."


 
 Travel insurance you possess currently:
 
 When traveling, if you've made your reservations using your credit card, you might discover that you already possess travel insurance and won’t require an additional one. According to Sullivan, individuals ought to verify their coverage details. “Credit cards such as ANZ Platinum or Westpac Mastercard come with built-in travel insurance—yet numerous folks end up spending over $150 for a standalone policy anyway. A prime example of overlooking the small print.”


 
 Avoiding negotiations on your mortgage rate:
 
 Sullivan advised individuals to advocate for themselves and seek improved interest rates from their banks when they were due to refix their home loans. "New Zealanders tend to be unusually courteous towards banks. Simply requesting a better offer from your bank could decrease your mortgage rate by 0.25 percent to 0.5 percent—saving you significant sums over the years. There’s no need for intense negotiation; simply make the request."


 Lang stated that what an individual required or lacked was personal and distinctive to each person.


 Essential items are generally considered necessities. Items that fulfill these requirements usually emphasize functionality more so than emotion or symbolism. These essentials often remain consistent over periods of time and among different cultural groups. Additionally, they're mostly not optional; lacking them can lead to significant repercussions. Consider things like sustenance, housing, medical care, learning opportunities, and fundamental attire.


 Desires, conversely, are typically influenced by cultural elements, societal fads, marketing strategies, and personal identity. These desires are usually subjective and can vary greatly; they frequently mirror one’s way of life, social standing, or emotional aspirations... Often these desires are driven by ambition, symbolism, or routine.


 The way people perceive their desires and requirements may be influenced by companies. Numerous costly buys like automobiles or kitchen gadgets, which offer no clear additional functionality compared to alternatives, often reflect consumer preferences more than actual necessities.


 However, even within budget-friendly product ranges, customers frequently purchase items driven more by desires rather than necessities. Consider anti-aging skincare lotions. According to research conducted by Consumer NZ, sunscreens perform much better at maintaining youthful and healthy-looking skin when contrasted with costly beauty creams. Nevertheless, shoppers are swayed by high prices, alluring marketing, and appealing packaging.


 Register for Ngā Pitopito Kōrero
 ,
 
 A daily newsletter handpicked by our editorial team, sent directly to your inbox each weekday.
 

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10 Surprising Things That Might Be Costing You Money Unnecessarily

Unknown expenses, money, personal finance, personal finance shopping, saving money

Many individuals shell out cash on items they believe fall outside their budget. Perhaps it's a coffee purchased on your commute to work that you could easily prepare at home, or maybe a fresh pair…

まさか、夢だと言ってくれ…「年金月18万円」75歳男性、「コツコツと貯めた 2,000万円」が老後10年で底をつく大誤算。きっかけは48年間連れ添った愛妻の死

Unknown money, personal finance, personal finance retirement, retirement planning, wealth

<img data-document-id="cms/api/amp/image/AA1Cbcd4" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cbcd4.jpg"/>


 老後資金2,000万円不足問題のインパクトから、「老後のために2,000万円は貯める！」と目標を定めている人は多いようです。しかし、2,000万円の貯金があるからといって、老後の安心は絶対かといえば、そのようなことはありません。

<h2>
 妻と過ごすはずだった、安泰の老後
</h2>

 年金不安から資産運用が当たり前になりつつあるなか、最終的な目標額はいくらなのでしょうか。金融広報中央委員会『家計の金融行動に関する世論調査（二人以上世帯）』によると、金融資産目標額は平均で3,014万円。中央値は1,500万円でした。年齢別にみていくと、60代で平均3,397万円、中央値は2,000万円。70代では平均2,723万円で、中央値は2,000万円。一時、老後資金2,000万円不足と騒がれていました。その余波でしょうか、老後を見据えて「2,000万円」をひとつの目標にしていると推測されます。


 75歳の原和夫さん（仮名）もそのひとり。長年会社員として働き、退職金とコツコツ貯めた預貯金を合わせ、65歳の時点で老後資金は約2,000万円を確保していました。


 「ひとり1,000万円、夫婦であれば2,000万円あれば、老後は安心だと思っていたんです」


 65歳から受け取り始めた年金は月18万円ほど。その3年後には妻も年金を受け取り始め、派手な暮らしではないものの、妻とふたり、穏やかな老後を送っていました。


 しかし、結婚48年を迎えて、妻が68歳で急逝。そこから、原さんの生活は大きく狂い始めます。最初に家計を大きく圧迫したのは、自宅の修繕費でした。


 
 「持ち家だったので、住居費の心配はないと思っていました。でも、築35年ともなると、あちこちガタがくるんですよ」
 


 特に深刻だったのは、水回りと屋根の劣化。そこに追い打ちをかけるように大型台風の襲来。それによりキッチンや浴室の配管から水漏れが発生し、屋根瓦の一部も剥がれました。修理を後回しにするわけにもいかず、見積もりを取ると、なんと約500万円。痛い出費でしたが、長年妻と過ごしたマイホーム。いつまでもここで住み続けたい……そう考えると仕方のない出費でした。

<h2>
 妻に先立たれ、崩れ始めた老後プラン
</h2>

 さらに、妻に先立たれひとり暮らしになったことで、日常の生活費もじわじわと増えていきました。家事はすべて妻に任せきりだった原さんは家事力ゼロ。次第に家のなかは散らかり放題。洗濯はもちろん、食事も自分で作ることはできません。乱れていくばかりの日常をどうにかしようと、家事代行サービスを利用するようになりました。さらに外食の回数も増え、妻とふたり暮らしのときよりもかさむようになったのです。そのような生活により、毎月10万～15万円程度を貯金から取り崩し。


 そこへ追い打ちをかけたのが、健康の問題でした。「加齢とともに、病院に行く機会が増えました。持病の薬代に加え、歯の治療や白内障の手術など、思った以上にお金がかかるんです」。こうした想定外の出費が続き、原さんの貯蓄は右肩下がり。


 焦った原さんは、ある決断をします。世間では「資産運用」ブーム。この流れに乗れば、資産を増やすことができるかもしれない……何とも安直な理由で投資をスタートさせます。


 当初は、銀行の勧めで投資信託を購入。しかし値動きが思った以上に激しく、不安になった原さんは、途中で売却。結果的に、数十万円の損失を出してしまいました。それでも諦めきれず、今度は個別株に手を出します。「高配当株なら年金の足しになる」との触れ込みを信じましたが、株価の変動に一喜一憂する日々が続き、また途中で売却。結局、利益を出すどころか損失ばかりが積み重なり、10年前に2,000万円あった貯蓄は、ほぼ底をついてしまったのです。


 
 「まさか、夢だと言ってくれ……」
 


 70代半ばにして、生活レベルを大幅に下げざるを得ない状況に直面している原さん。


 
 「年金18万円だけで、この先の生活を賄わないといけません。でも家の維持費もかかるだろうし、医療費のことも考えないといけない。不安しかないですね」
 


 原さんのケースは決して特殊なものではありません。老後の想定外の出費は、誰にでも起こりうること。特に、自宅の修繕費や医療費は、思った以上にかかることが多いといいます。さらに原さんの場合、未経験ながら投資に手を出し、損失をさらに拡大させました。「まさか、こんなはずでは……」と後悔しないために。老後資金の準備は、想定以上の余裕をもって考えておくことが大切なのかもしれません。


 ［参考資料］


 金融広報中央委員会『令和5年 家計の金融行動に関する世論調査（二人以上世帯）』

まさか、夢だと言ってくれ…「年金月18万円」75歳男性、「コツコツと貯めた 2,000万円」が老後10年で底をつく大誤算。きっかけは48年間連れ添った愛妻の死

Unknown money, personal finance, personal finance retirement, retirement planning, wealth

老後資金2,000万円不足問題のインパクトから、「老後のために2,000万円は貯める！」と目標を定めている人は多いようです。しかし、2,000万円の貯金があるからといって、老後の安心は絶対かといえば、そのようなことはありません。妻と過ごすはずだった、安泰の老後年金不安から資産運用が当たり前になりつつあるなか、最終的な目標額はいくらなのでしょうか。金融広報中央委員会『家計の金融行動に…

5 Clever Moves to Slash Your Tax Bill Before Saturday

Unknown money, personal finance, personal finance saving spending, personal finance taxes, saving money

<img data-document-id="cms/api/amp/image/AA1C9yYD" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1C9yYD.jpg"/>

 With the tax year coming to an end soon, this presents a crucial period to potentially reduce your payment.


 In numerous instances, if it remains unused,
 you'll forfeit this year's allowances,
 So it’s worthwhile going through the tax-saving checklist to see if there are any smart methods you can use to reduce your taxes beforehand.
 The deadline is by midnight on 5 April.


 Below, experts reveal how
 you might be able to reduce your tax liability
 –and the most effective approach to planning for the coming year.

<ul class="wp-block-list">
 <li>
 
 Maximise your free money
 
 </li>
</ul>

 There are numerous methods to obtain free money from the government, including tax incentives, benefit programs, or special account offers.


 Laura Suter, who leads personal finance at AJ Bell, stated: "Pension schemes present a significant opportunity; for instance, basic-rate taxpayers get 20 percent tax relief, whereas those paying higher or additional rates can claim back an extra 20 or 25 percent via self-assessment."


 This implies that for someone paying the higher rate of tax, each £1 contributed to their pension effectively costs them 60p.

<ul class="wp-block-list">
 <li>
 
 Use your ISA allowances
 
 </li>
</ul>

 Furthermore, individuals can gain advantages from Individual Savings Accounts (ISAs). At present, the Lifetime ISA may be utilized either to purchase your first residence or to save for retirement. You have the option to deposit up to £4,000 annually, with the government adding a 25% bonus to your savings, capped at an annual limit of £1,000.


 Nevertheless, withdrawing funds before reaching the age of 60 incurs a 25 per cent penalty, unless it's for purchasing your first home. Thus, careful planning is crucial when considering this option.


 On top of that, a standard ISA will give you a tax break on your investment growth and interest earned, as well as any withdrawals being tax-free. Everyone can pay in up to £20,000 a year into the accounts, but use it or lose it, as once the new tax year hits that allowance is reset.


 Read Next:
 How your pension pot could be used to help you build a house deposit

<ul class="wp-block-list">
 <li>
 
 Beat the capital gains tax cut
 
 </li>
</ul>

 Capital gains tax (CGT) allowances have been cut in recent years, dropping from £12,300 in April 2023 to £3,000 now.


 This makes it more important to consider how you realise gains to avoid triggering an unnecessary tax bill.


 Ms Suter said: “Selling investments up to the current CGT allowance before the tax year end could help reduce future tax bills for those holding assets outside an ISA or pension.


 “Investors can also use a strategy known as ‘Bed and ISA’ to sell investments, which means transferring the proceeds into an ISA and repurchasing them, meaning that future gains are protected from tax.”

<ul class="wp-block-list">
 <li>
 
 Avoiding high tax on your savings
 
 </li>
</ul>

 There are times in life when you have more savings than others – like when you’re retired, if you’ve inherited money or when you are saving up for something big – like a house move. If you’re not used to paying tax on your savings, you might overlook it.


 Basic rate taxpayers can make £1,000 a year in interest before paying tax, and higher rate taxpayers can make £500 a year – and after that, there could be a tax bill to worry about.


 Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “If you’re a basic rate taxpayer with £20,600 or more in a savings account paying 4.75 per cent, you’ll bust your allowance and face a tax bill.


 “If you move £20,000 into a cash ISA this tax year, you can move the rest after midnight on 5 April and protect it all from the taxman.”

<ul class="wp-block-list">
 <li>
 
 Make gifts
 
 </li>
</ul>

 If you’re concerned about inheritance tax (IHT), you have your IHT gift allowances to use any time during the year. However, other rules are worth exploiting as early as possible.


 Ms Coles said: “If you want to give larger gifts, you expect to drop out of your estate after seven years, so starting now will mean you can get the clock ticking now.”


 This is significant because no tax is owed on presents you bestow if you survive for seven years following the gifting — with the exception being when the gift is within a trust arrangement.


 Ms Coles remarked: "Should you decide to present gifts to minors under 18 years old, remember that these children will possess their complete junior ISA yearly allowance from the beginning of the next fiscal year—thus, although you may bestow the gift now, it remains inaccessible until they reach an age where they can manage adult financial decisions."


 Parents and guardians have the option to save or invest up to £9,000 each year in a Junior ISA for a child who is younger than 18 years old.


 Should you wish to donate periodic gifts using only additional earnings, starting early will allow you to contribute a larger sum overall.

5 Clever Moves to Slash Your Tax Bill Before Saturday

Unknown money, personal finance, personal finance saving spending, personal finance taxes, saving money

With the tax year coming to an end soon, this presents a crucial period to potentially reduce your payment. In numerous instances, if it remains unused, you'll forfeit this year's allowances, So …

What's the Ideal Superannuation Balance for Your Age in Australia?

Unknown investing, money, personal finance, personal finance retirement, personal finance saving spending

<img data-document-id="cms/api/amp/image/AA19bW4N" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA19bW4N.jpg"/>

 To address this query about our system
 superannuation
 Balance, I believe it's most effective to approach it from the opposite direction.


 Firstly, let's look at how much we need to set aside for a comfortable lifestyle.
 retirement
 . After that, we can determine if our retirement funds are adequately on target.


 As per the latest updates to
 AFSA Retirement Standard
 Single Australians require $595,000 in their superannuation fund by the time they reach 67 years old for a comfortable retirement. For couples, this amount is $690,000.


 These figures presuppose that we own our house, get a portion of the pension, and that our superannuation savings are depleted and reinvested at an annual growth rate of 6%.


 According to AFSA, a comfortable retirement involves covering basic needs along with expenses such as private health insurance, fitness activities, free time pursuits, dining out occasionally, taking at least one domestic vacation annually, and enjoying an international trip every seven years.


 AFSA estimates that all of this amounts to $51,814 annually for individuals and $73,031 for couples.

<h2 class="wp-block-heading" id="h-are-your-superannuation-savings-on-track-for-your-age">
 Is your superannuation saving aligned with your age group expectations?
</h2>

 The age pension along with superannuation are the
 The two most prevalent types of income sources for those retired.
 As stated by the Australian Bureau of Statistics. This highlights their significance for you in your later years.


 Let's address superannuation first.


 The instrument we will employ to determine if your superannuation balance is appropriate for your age is the
 Super Balance Detective Calculator
 On the Super Guru website.


 If you're among those born from 1958 to 2003, you can utilize this tool to determine whether your current superannuation balance aligns with the AFSA benchmark for a comfy retirement.


 Here are some examples.

<ul class="wp-block-list">
 <li>
 For individuals who turned 30 years old in 1994, their superannuation balance ought to amount to $66,500.
 </li>
 <li>
 For individuals who turned 40 years old this year (born in 1984), their superannuation balance ought to amount to $168,000.
 </li>
 <li>
 For individuals who turned 50 years old this year (born in 1974), their superannuation savings ought to amount to $296,000.
 </li>
 <li>
 For individuals who turned 60 this year (born in 1963), their superannuation balance ought to amount to $469,000.
 </li>
</ul>

 Should your superannuation balance match the figures provided by the Super Guru calculator, you will be well-positioned to reach the necessary $595,000 milestone by the time you turn 67 as a single individual aiming for a comfortable retirement supplemented by a partial government pension.


 Let's now discuss the requirements for qualifying for a partial or full-aged pension.

<h2 class="wp-block-heading" id="h-do-you-qualify-for-the-age-pension">
 Are you eligible for the age pension?
</h2>

 Australians qualify for the age pension once they reach their '
 retirement age
 For individuals born on or after 1 January 1957, the retirement age stands at 67 years old.


 You're only eligible for the pension if you meet the criteria provided.
 assets
 and
 income
 tests outlined by the government.


 For the assets test, to be eligible for the complete age pension, single homeowners cannot have over $314,000 worth of assets excluding their home. Conversely, single individuals without a home must not possess more than $566,000 in total assets.


 The threshold for receiving a part-pension for singles who own homes stands at assets worth $695,500, whereas for those who do not own homes, the limit is set at $947,500.


 For the complete age pension eligibility, homeowner couples cannot have more than $470,000 worth of assets excluding their residence. Non-homeowning couples must keep their additional assets below $722,000.


 For a partial pension, the limit for homeowner couples is assets totaling $1,045,500, whereas for those who do not own a home, it is set at $1,297,500.


 Regarding earnings, single pensioners may receive up to $212 every two weeks, while couples can collectively earn $372 biweekly without affecting their full entitlement to the pension.


 The threshold for receiving a part pension is an income of $2,500.80 every two weeks for singles, and $3,822.40 every two weeks for couples.


 The post
 What constitutes an adequate superannuation balance for someone at your age?
 appeared first on
 The Motley Fool Australia
 .

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 disclosure policy
 This article includes solely general investment guidance (covered under AFSL 400691). Authorized by Scott Phillips.

What's the Ideal Superannuation Balance for Your Age in Australia?

Unknown investing, money, personal finance, personal finance retirement, personal finance saving spending

To address this query about our system superannuation Balance, I believe it's most effective to approach it from the opposite direction. Firstly, let's look at how much we need to set aside for a…

お金が貯まる人はブレない！自分軸を持つ人の特徴とは

Unknown money, personal finance, personal finance education, personal finance saving spending, saving money

<img data-document-id="cms/api/amp/image/AA1BrnhZ" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1BrnhZ.jpg"/>
 
 「お金を貯めたい！」と思っているのに、なぜか貯まらない……そんな経験はありませんか？ 貯金ができる人とできない人の違いは、「自分軸」があるかどうかにあります。


 自分軸がある人は「自分にとって最適なお金の使い方」を知っています。流行や他人の価値観に左右されず、自分の基準でお金を使える人は、自然と貯金もできるのです。


 今回は、お金が貯まる自分軸のある人の特徴2つをご紹介します。


 <h2>
 自分軸のある人の特徴1：時間の使い方が上手
 </h2>
 お金が貯まる人は、時間を大切にします。なぜなら、時間もお金と同じくらい貴重な資源だからです。自分軸がある人はデジタル機器や他人に振り回されません。


 例えば、スマホをなんとなく見ていたら、気づけば1時間たっていたり、ネットショッピングでつい余計な買い物をしてしまったりしたことはありませんか？ また、他人に誘われたからと気乗りしないレジャーに参加することに時間を使ってしまうことも。


 こうした何気ない時間の使い方が積み重なると、知らず知らずのうちにムダな出費が増えてしまいます。自分軸を意識して時間を使うことは、お金を大切にすることにもつながるのです。


 <h3>
 ▼ムダな時間を作らないためには？
 </h3>
 ムダな時間を作らないためには以下の点を心掛けましょう。


 ・買い物は目的を決めて行う


 「とりあえず見て回る」ウィンドウショッピングを減らしてみましょう。人にすすめられたから買う、という余計な買い物を防げます。


 ・買い物の情報収集はほどほどに


 「安く買うために調べ過ぎて時間がかかる」のも考えもの。デジタル機器に振り回されてしまうかもしれません。値段や品質をチェックしつつ、時間をかけ過ぎないバランスが大切です。


 ・リラックスする時間をつくる


 ストレスがたまると衝動買いが増えがちです。気乗りのしないお誘いを断れなくなってしまうことも。ヨガや瞑想（めいそう）、入浴、自然の中の散歩などで気持ちを落ち着けましょう。あえて時間を忘れてリラックスすると気持ちが穏やかになり、「なんとなく買う」クセが減ります。心が整うと、本当に必要なものだけを選べるようになります。


 <h2>
 自分軸のある人の特徴2：「見栄」でお金を使わない
 </h2>
 お金の使い方は、自分軸を持っているかどうかで大きく変わります。ブランド品や高級レストランに価値を感じる人もいれば、旅行や趣味にお金をかける人もいます。大切なのは、「周りに流されるのではなく、自分にとって本当に価値があるか？」を基準に判断することです。


 一方で、自分軸がないと、「みんなが持っているから買おう」「高いもの＝いいもの」といった思い込みでムダな買い物をしてしまいがち。また、「安いから」と必要のないものまで買い、結果的にムダ遣いが増えてしまうこともあります。自分にとって大切なものを見極め、本当に必要なものだけにお金を使うことが、貯まる習慣につながります。


 <h3>
 ▼「見栄」ではなく、自分にとって価値のあるものにお金を使うには？
 </h3>
 お金を貯めるためには、見栄ではなく、自分にとって本当に価値のあるものにお金を使うことが大切です。


 ・「これは買わない」と決める


 なぜそれを買うのか？本当に必要なのか？と自分に問い掛けてみましょう。「流行っているから」「安いから」といった理由で買ったものの、結局使わずに終わることは少なくありません。


 ・「これがあれば幸せ！」を意識し、大事にする


 「旅行が大好きだから、そのために貯金する」と決めれば、不要な買い物を自然と減らせます。自分が本当に大切にしたいものを知ることで、お金の使い方にも自分軸が生まれます。


 ・気になることに「トライ」する予算を持つ


 貯金ばかりを優先するとストレスが溜まり、逆にムダ遣いにつながることもあります。特に、「やりたいことがあるのに、挑戦できない……」という状態は避けたいもの。そこで、気になることに少しずつトライするための予算を持つのもおすすめです。


 例えば、「カフェ巡りをしてお気に入りの場所を見つける」「気になる本を1冊買って読んでみる」「新しいレシピに挑戦してみる」など。日常の中で楽しみながらお金を使う習慣をつけることで、満足度の高い支出がどんなものかわかるようになるでしょう。


 お金を使う基準を「人と比べる」のではなく、「自分にとっての価値」で決めることが、ムダ遣いを減らし、貯金につながるポイントです。本当に必要なものにお金を使い、ムダな支出を減らすことに意識を向けていきましょう。


 文：舟本 美子（ファイナンシャルプランナー）


 会計事務所、保険代理店や外資系の保険会社で営業職として勤務後、FPとして独立。人と比較しない自分に合ったお金との付き合い方を発信。3匹の保護猫と暮らす。All About おひとりさまのお金・ペットのお金ガイド。

お金が貯まる人はブレない！自分軸を持つ人の特徴とは

Unknown money, personal finance, personal finance education, personal finance saving spending, saving money

「お金を貯めたい！」と思っているのに、なぜか貯まらない……そんな経験はありませんか？貯金ができる人とできない人の違いは、「自分軸」があるかどうかにあります。自分軸がある人は「自分にとって最適なお金の使い方」を知っています。流行や他人の価値観に左右されず、自分の基準でお金を使える人は、自然と貯金もできるのです。今回は、お金が貯まる自分軸のある人の特徴2つをご紹介します。 …

Self-Made Millionaire Reveals: Here’s Where Most Americans Fritter Away Their Money

Unknown expenses, personal finance, personal finance saving spending, personal finance shopping, saving money

<img data-document-id="cms/api/amp/image/BB1igT3l" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1igT3l.jpg"/>

 If there's one thing I've learned on my journey from being $300,000 in debt to becoming
 a self-made millionaire
 , it's this: I wasn't broke because I didn't make enough money at the time — I
 
 felt
 
 broke because I overspent on things that weren't aligned with my health and
 wealth goals
 .


 Yes, I spend money on things I like. I love a good K-pop concert and a well-deserved vacation. But I also know that swapping unnecessary spending in some areas frees up money for things that truly matter, like
 investing
 ,
 financial security
 and experiences that
 bring real joy
 .


 Here are six points I believe Americans might consider
 spend far too much money on
 —that I also used to overindulge in! Instead, this is how I handle things nowadays.


 
 
 DON'T MISS:
 
 
 
 
 Ways to Begin a Side Business for Additional Income
 
 

<h4>
 1. Bulk grocery shopping (that ends up in the trash)
</h4>

 Buying in bulk can save you money, but only if you actually eat everything you buy. Let's be real. How many times have you bought the mega pack of spinach only to throw half of it away a week later?


 You're not getting a deal if you toss half of what you paid for in the garbage.


 I now buy produce weekly because I found myself not being able to finish the bag of avocados or kiwis, even though they were cheaper per item at the bulk price.


 When purchasing additional supplies for my pantry, I only get things that I will consume within the coming month, and I pay close attention to use-by dates.

<h4>
 2. Seasonal decorative home accessories
</h4>

 I get the urge to head to TJ Maxx and purchase a new wreath and some festive throw pillows for each holiday. However, rather than splurging on decor items that might quickly fall out of style, consider putting your money into classic, top-notch home basics. Then, refresh your space with minor, budget-friendly touches such as candles or fresh blooms.


 I switch out photos and keepsakes from concerts in the picture frames periodically.
 various sections of my house
 To keep it feeling new, without needing to change with the seasons, I've received numerous praises for my revolving collection of Broadway playbills.

<h4>
 3. Children's toys
</h4>

 Many children get more entertainment from the box than from the actual toy. It’s not uncommon for parents to shell out hundreds, even thousands of dollars, on toys that end up being discarded by their kids after just a few weeks.


 Simple is better. Switch out toys periodically rather than acquiring new ones, and value activities more than possessions.


 If the children require toys, consider having family members contribute. Since I am an aunt with no children of my own, I'm glad to occasionally purchase toys for my nieces and nephews, allowing their parents to use that money for other necessities instead.

<h4>
 4. Footwear that adversely affects your foot health
</h4>

 I'm guilty of having bought multiple pairs of shoes that look amazing but felt like medieval torture devices. I stopped buying shoes that don't fit, don't support my feet or that I'll only wear once.


 A few high-quality pairs of comfortable, well-made shoes will take you further, than a closet full of painful ones.


 Shoes are a great item to apply the $1 rule: If a high-quality pair of shoes costs $100 and you can wear them 100 times, then I think it's a worthy splurge — more so than a pair of discount shoes you'll only wear a few times

<h4>
 5. High-end skincare products
</h4>

 The beauty industry convinces people they need a 12-step routine with $80 serums, when most of it is marketing hype.


 I learned this the hard way when I got sucked into the K-beauty trend of buying all sorts of serums and masks, only to go back to my slightly less glamorous routine of pharmacy brand face wash and moisturizer.


 Stick to simple, dermatologist-approved products that actually work. Your skin (and your wallet) will thank you.

<h4>
 6. Overpriced athleisure
</h4>

 My $15 warehouse leggings and free t-shirts are just as good as the $100 Lululemon ones. People love to justify expensive activewear by saying it motivates them to work out, but wearing a fancy outfit doesn't do push-ups for you.


 Ironically, I've found that I have better workouts when I wear less expensive clothing because they tend to breathe better, since they're often looser and made of natural fiber than shiny material. When I wear the stuff I don't care that much about, I am more focused on the exercise itself, than how I look.


 Buy workout gear for function, not fashion. Focus on quality and comfort over brand names.

<h4>
 Save more money by reprioritizing
</h4>

 Ultimately, I'm not saying it makes sense to give up everything fun or live like a monk. But if you want to build wealth, start questioning if these short-term dopamine hits are really saving you money in the long run.


 Every dollar you don't waste is a dollar that you don't have to work for, whether that's growing your investments, paying off debt or funding a life that brings you a sense of peace.


 
 
 Bernadette Joy
 
 
 
 is the author of "
 
 
 CRUSH Your Money Goals
 
 
 " and a personal finance expert and investor dedicated to helping you beat burnout and reach financial independence.
 
 
 You can find her on
 
 
 Instagram
 
 
 ,
 
 
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 and
 
 
 LinkedIn
 
 
 .
 


 
 
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<img data-document-id="cms/api/amp/video/BB1p9JfN" data-reference="video"/>

Self-Made Millionaire Reveals: Here’s Where Most Americans Fritter Away Their Money

Unknown expenses, personal finance, personal finance saving spending, personal finance shopping, saving money

If there's one thing I've learned on my journey from being $300,000 in debt to becoming a self-made millionaire , it's this: I wasn't broke because I didn't make enough money at the time — I f…

Discover 9 Clever Ways to Withdraw Retirement Funds

Unknown 401 retirement plans, personal finance, personal finance retirement, retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA1zeGkW" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zeGkW.jpg"/>

 If you find saving for retirement complex, imagine the challenge of withdrawing those funds efficiently to keep your tax bill as low as possible.


 As high as 70 percent of your hard-won retirement savings could vanish due to income, estate, and state taxes," asserts IRA expert Ed Slott, who authored "Fund Your Future: A Tax-Efficient Saving Strategy for Your Twenties and Thirties" and "The Retirement Savings Time Bomb Tick-Tocks Loudly.


 That’s cash that many individuals would rather hold onto personally. Yet, what steps can actually make this possible? Below are nine effective withdrawal methods designed to assist you in sidestepping expensive tax pitfalls and retaining greater portions of your retirement savings.

<h2>
 1. Adhere to the guidelines for Required Minimum Distributions (RMDs)
</h2>

 RMD stands for
 required minimum distribution
 , and once you reach the age of 73, you'll be required to begin withdrawing a minimum sum from various retirement accounts like a traditional IRA or
 401(k) plans
 .


 You are required to make Required Minimum Distributions (RMDs) every year by April 1 from the year following when you reach age 73, and by December 31 for each year thereafter. To put it another way, if you become 73 in 2024, you must withdraw your initial RMD by April 1, 2025.


 As the legislation was enacted,
 SECURE Act 2.0
 In late 2022, the required minimum distribution (RMD) starting age was raised from 72 to 73 in 2023. On January 1, 2033, this age will increase once more to 75.


 The consequence of not adhering to the guidelines is significant. Missing the deadline for Required Minimum Distributions (RMDs) incurs a substantial 25 percent excise tax. Should you fail to withdraw your RMD from an account,
 IRA
 Correct the error swiftly and resubmit your tax forms—the penalty might be decreased to 10 percent.


 If you come up short with your required minimum distribution (RMD), penalties can still be applied. For instance, if your RMD for the year should have been $20,000 but due to an error you only withdrew $5,000, the Internal Revenue Service (IRS) would impose a 25% penalty. This means they could charge you $3,750, which represents one-fourth of the missing $15,000 withdrawal amount.


 When calculating your Required Minimum Distribution (RMD), keep in mind that it can vary each year. This fluctuation depends on factors such as your current age, estimated lifespan (a longer expected lifetime means a smaller withdrawal amount), and the total account balance, which should reflect the fair market value of the assets held within your accounts as of December 31st of the previous year prior to taking the distribution.


 Take a look at the "Uniform Life Table" in
 IRS Publication 590-B
 To assist in determining how much you need to withdraw from your account.
 financial advisor
 Can also assist you in making optimal choices when it comes to taking withdrawals from your retirement accounts.

<h2>
 2. Remove funds from accounts in the proper sequence
</h2>

 If your retirement savings are necessary for getting by and you're considering withdrawing funds from an IRA, 401(k), or another account, here’s what you should know.
 Roth account
 , resist the urge for immediate satisfaction. While withdrawing from a Roth IRA is tax-free, you could end up losing out due to missed opportunities.


 Rather than doing otherwise, opt to withdrawal funds initially from your taxable retirement accounts and proceed accordingly.
 Roth IRAs
 by oneself for as much time as feasible.


 Doubtful? Think about this scenario: A 73-year-old individual decides to withdraw $18,000 from a conventional IRA and finds themselves in the 24% tax bracket. This means they will end up paying $4,320 in taxes. However, withdrawing the identical sum from a Roth IRA wouldn’t result in any tax payment at all. Now imagine further—should this person avoid Required Minimum Distributions (RMDs) from their Roth IRA and achieve a yearly return of 7%, after ten more years, the total value could reach approximately $35,409. Importantly, these gains remain untaxed upon withdrawal either by them directly or through inheritance by beneficiaries.

<h2>
 3. Understand the process of taking distributions
</h2>

 If you've accumulated multiple retirement accounts due to changing jobs frequently and you're nearing retirement, you'll need to determine how to access these funds. You might not necessarily have to draw from all of them.


 Do you have to check all of your accounts? Likely not.


 If you have several conventional IRAs, you're able to make withdrawals from each individually. However, a potentially smarter strategy might involve consolidating the assets across all your accounts into a single IRA before making just one withdrawal.


 Combining IRAs into one account might streamline documentation, facilitate the calculation of upcoming distributions, and provide more control over your finances.
 asset allocation
 , Slott says.


 However, you cannot use IRA withdrawals to fulfill your required minimum distribution (RMD) obligations for a 403(b), 401(k), or any other similar plan.


 It's important to remember that 401(k) plans cannot be combined to calculate one single required minimum distribution, according to George Jones, a senior tax analyst and managing editor at Wolters Kluwer Tax & Accounting. Consolidating these plans into an IRA can simplify this process.

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 Need an advisor?
 
 
 
 Looking for professional advice on handling your investments or preparing for retirement?
 
 
 DIWIDA’s AdvisorMatch
 I can link you with a Certified Financial Planner who will assist you in reaching your monetary objectives.
 
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<h2>
 4. Grasp the regulations concerning Required Minimum Distributions for spouses
</h2>

 Should you find yourself with a much younger partner likely to inherit your IRA, you might be able to decrease your mandatory withdrawals. This could lead to lower tax liabilities and ensure your retirement savings stretch further over time.


 Keep in mind that Required Minimum Distributions (RMDs) are figured out with elements such as your expected lifespan according to the Internal Revenue Service (IRS). However, should you have designated an individual spouse as the exclusive recipient of your Individual Retirement Account (IRA), and this spouse is more than ten years your junior, the calculation for your RMD would be based on a joint-life expectancy chart instead. This adjustment can lessen the sum you must withdraw each year.


 For instance, consider an individual retiring at age 73 this year, who must begin taking required minimum distributions (RMDs) by April 1st of the subsequent year. According to the Internal Revenue Service (IRS), such a person has a projected lifespan of 26.5 years from now. If their Individual Retirement Account (IRA) holds $200,000, then their initial RMD for that period would amount to $7,547.17—calculated as $200,000 divided by 26.5.


 However, suppose this individual appoints their 56-year-old spouse as the exclusive beneficiary for the retirement account. Then, their combined life expectancy would amount to 31.7 years. Consequently, the initial Required Minimum Distribution (RMD) would be reduced to $6,309. The Internal Revenue Service (IRS) outlines this procedure.
 A table for this scenario can be found in Publication 590-B.
 .

<h2>
 5. Donate to charity
</h2>

 Do you have a meaningful cause you wish to contribute to? If one of your long-term financial goals involves supporting a charitable organization, consider utilizing your retirement resources to create an impact.


 This legislation permits people who are 70 years old and six months or older to make tax-free contributions, referred to as
 qualified charitable distributions
 Up to $100,000 per year can be donated directly from an IRA to a charitable organization as part of the required minimum distribution. This donation does not get counted as taxable income, thus lowering the donor’s potential income tax burden. Additionally, if you submit a joint tax return with your spouse, they too may contribute up to $100,000 yearly under this provision.


 However, keep in mind that those making tax-free charitable distributions from their IRAs will not be eligible to claim these contributions as a deductible itemization.


 “Either one of these options applies,” explains Slott. “Those who adopt this approach will incur lower tax liabilities; therefore, for those with charitable inclinations, it represents the optimal method for making contributions.”

<h2>
 6. Take "in-kind" withdrawals that count as required minimum distributions (RMDs)
</h2>

 If selling your assets isn't appealing, opting for cash withdrawals might seem simpler, yet it's not mandatory—or necessarily advisable. Instead, consider what are known as in-kind distributions, which involve withdrawing stocks or bonds directly. This approach could be preferable for those aiming to retain their holdings for different purposes. Essentially, these assets would shift from your IRA to a taxable account. On the day of transfer, these in-kind withdrawals will be evaluated based on their current fair market value.


 Withdrawing assets directly might be simpler and more cost-effective compared to selling the investments within your IRA and then repurchasing them in another investment account, which could incur additional penalties or charges.

<h2>
 7. Consider delaying RMDs
</h2>

 Delaying your retirement? If you're still employed at 73 and contributing to a 401(k) or 403(b), you might be exempt from Required Minimum Distributions (RMDs)—provided you don't hold more than 5% of the business and your retirement plan allows this exception. Under such circumstances, you can postpone RMDs until April 1 following the year you retire. At that point, you will begin withdrawing funds.


 This holds true as long as you're employed at any point during the year. Therefore, if you're 73½ years old and considering retirement before the end of the year, think again unless you wish to take an early distribution. Should you continue working past January 1st—even for just a single day—it will delay your requirement to withdraw the initial RMD by another year.


 Remember that the delay applies only to your current employer’s 401(k) plan. However, if you have 401(k) accounts from former employers and you're 73 years old or more, you will be required to withdraw funds from those accounts.

<h2>
 8. Think about doing a Roth conversion
</h2>

 Tax experts and retirement consultants frequently encourage their clients to transfer retirement accounts into Roth IRAs.
 Roth conversion
 — where time and tax-free growth can work their magic. However, it isn’t a cure-all solution, and this step might not be beneficial for every worker.


 Converting a conventional 401(k) or traditional IRA into a Roth IRA usually leads to a taxable event. Nonetheless, after completing this transfer, any growth within these accounts occurs without taxes, and they won’t be touched again as long as certain conditions are met.


 Suppose a 43-year-old individual secures a new position and opts to transfer $150,000 from their 401(k) to a Roth IRA. Given that this person falls within the 35% federal income tax bracket, they will face a tax liability of $52,500, ideally settled using external funds rather than those inside the IRA. Assuming the full sum in the Roth account experiences steady growth at an annual rate of 7%, after three decades, it could amass to approximately $1.14 million.


 For individuals nearing retirement or those required to take Required Minimum Distributions (RMDs), if you intend to use these retirement funds personally rather than leaving them to beneficiaries, it might be prudent to keep them invested as they are.


 “However, if your aim is to safeguard that retirement asset for beneficiaries,” Slott explains, “this is an excellent strategy as it eliminates the doubt around future tax rates. Switching to a Roth IRA is highly beneficial for the coming generations.”

<h2>
 9. Perform a Roth conversion when you're in your "semi-retirement" phase.
</h2>

 When your career is coming to an end and you're making less money, it might become essential to withdraw funds from your retirement account. Provided you are at least 59½ years of age, you can make withdrawals from your retirement plans without facing penalties.
 A 10% penalty for withdrawing funds prematurely
 .


 This could also be a good opportunity to transfer part of your traditional IRA to a Roth IRA—particularly if you anticipate your tax bracket will increase once you reach age 73 and must start withdrawing minimum distributions. Adopting this approach might allow you to delay claiming Social Security benefits until a future date when doing so would be more advantageous.
 benefits will be bigger
 .


 Go over it with your financial advisor to determine if this is suitable for your circumstances.

<h2>
 Bottom line
</h2>

 Using some skilled maneuvers and understanding how to withdraw funds from your retirement accounts can help reduce the impact of taxes. However, this is a complicated issue.
 finding a financial advisor
 Who will act in your best interests to assist you through this process may prove invaluable many times over.
 Here’s how you can locate an exceptional advisor.


 Editorial Disclaimer: It is recommended that all investors perform their own thorough research into investment strategies prior to making an investment choice. Additionally, it should be noted that previous performance of investment products does not ensure future growth in value.

Discover 9 Clever Ways to Withdraw Retirement Funds

Unknown 401 retirement plans, personal finance, personal finance retirement, retirement, retirement planning

If you find saving for retirement complex, imagine the challenge of withdrawing those funds efficiently to keep your tax bill as low as possible. As high as 70 percent of your hard-won retirement s…

Financial Experts Stress: Know Your Net Worth, No Matter the Size

Unknown financial literacy, money, net worth, personal finance, wealth

<img data-document-id="cms/api/amp/image/AA1zLcNb" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zLcNb.jpg"/>

 For individuals with limited possessions, understanding their net worth could appear insignificant; however, specialists assert that it remains a crucial measure of one's fiscal well-being, irrespective of whether the figure is large or modest.


 "At the end of the day, what matters isn’t the number of zeroes in your account; it’s more about whether your net worth indicates that you're moving towards achieving your financial objectives," explained Brenda Hiscock, a certified financial planner with Objective Financial Partners.


 Your net worth is determined by summing the total value of all your possessions and then deducting any debts you owe. This calculation provides an overview of your current financial status.


 Assets may consist of funds held in your banking accounts, various investment holdings, the worth of your residence along with other real estate, the cash surrender value associated with a life insurance policy, the potential resell amount for your automobile, as well as different retirement schemes.


 Liabilities are essentially what you owe and can include the mortgage on your home, lines of credit, credit card debt, student debt and auto loans.


 Hiscock says when it comes to your liabilities, it’s important to distinguish between good debt and bad debt.


 "There’s good debt, sort of, a mortgage, student loans because a student loan can increase your future earnings potential. But what we really want to look at on a net worth statement is whether there’s credit card debt ... that tends to be bad debt," she said.


 "The net worth statement helps us to really look at each piece and determine what the best way forward with them is."


 She says a typical timeline to review a net worth statement is once a year.


 For a young person starting out who may have few assets, or even a negative net worth, Hiscock said there are still benefits to tracking your financial health.


 "I work with quite a few young people and I do find they love seeing their net worth year-over-year. It’s motivating to them," she said.


 Tony Salgado, president of AMS Wealth, said a net worth statement can also be a wake-up call that your financial well-being is not moving in the right direction.


 He gives the example of someone who gets a raise or a promotion at work, but ends up spending the extra income on dining out and other discretionary expenses instead of building up their assets.


 “So even though in this situation you have someone that has more cash flow coming in, they’re spending more," he said.


 "In that case, their net worth is not going to be growing. They’re going to be decreasing their net worth. It’s important for that young person to see if they’re going in the right direction."


 For someone that wants to build their net worth, it comes down to putting more money into the assets side rather than the liabilities.


 "Step by step, if we manage our discretionary spending, we improve our cash flow, we take the cash flow and invest it in either a TFSA, RRSP or an alternative investment — you’re slowly now moving your net worth in the positive direction," Salgado said.


 In addition to being a key indicator for your own use, knowing your net worth can also be crucial information for other professionals, such as a lawyer working on your will or gauging how much life insurance you may need, Hiscock said.


 "For example, young people out there buying homes, and if they have a young child, life insurance is so, so important. The net worth statement can say, 'OK well we have this much debt and if we pass away, we want to have that protected and we also want to protect our future income,'" she said.


 This report by The Canadian Press was first published Feb. 25, 2025.


 Michelle Zadikian and Ritika Dubey from The Canadian Press

Financial Experts Stress: Know Your Net Worth, No Matter the Size

Unknown financial literacy, money, net worth, personal finance, wealth

For individuals with limited possessions, understanding their net worth could appear insignificant; however, specialists assert that it remains a crucial measure of one's fiscal well-being, irrespec…

After 6 Years in Switzerland, These 3 Money Habits Made My Return Home Worth It

Unknown money, personal finance, personal finance careers, saving money, switzerland

Locate a Competent Financial Adviser
 


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<ul class="summary-list">
 <li>
 I resided in Switzerland for six years with my deceased spouse.
 </li>
 <li>
 After returning to Canada, I kept using my credit card as if it were a debit card.
 </li>
 <li>
 I similarly appreciate transparency regarding finances and hold respect for those who opt to rent rather than buy a house.
 </li>
</ul>

 
 When I was in my early 20s, my now-deceased spouse, Remi, and I relocated to Switzerland.
 


 
 Over the course of our six years overseas, my North American perspective was broadened to include an understanding of the customs and financial systems in this affluent country, along with how the Swiss handle their finances.
 


 
 These are three significant distinctions in cultural finances that I encountered during my experience of residing and working overseas, along with how these disparities influenced my approach to handling money.
 

<h2 data-toc-id="6da089a1-adb0-42b7-a356-63e0a0052669" id="6da089a1-adb0-42b7-a356-63e0a0052669">
 
 1. My Swiss credit card operated more akin to a debit card.
 
</h2>

 
 Remi and I had a joint credit card attached to it.
 
 
 joint bank account
 
 
 Paying off your credit card balance completely each month is financially prudent. In Switzerland, this practice is nearly mandatory.
 


 
 Culturally, debt carries a negative connotation in Switzerland and should be avoided whenever possible. The emphasis within Swiss banking practices is to settle credit card debts completely each month, reducing them to zero dollars. When we resided there, numerous Swiss credit cards supported this approach rigorously.
 


 
 The Swiss credit card named Remi and I agreed that if we failed to bring the balance down to zero by the due date each month, the bank would automatically deduct the outstanding amount from our account. Essentially, our credit card operated somewhat similarly to a debit card but with a slight delay.
 


 
 I tend to use my credit card more frequently in Canada, partly due to this.
 
 
 good credit
 
 
 , you need to use credit. But, I still prioritize paying off my debt on time every month.
 

<h2 data-toc-id="f28086c6-2cf3-4e81-96a2-95e63796b740" id="f28086c6-2cf3-4e81-96a2-95e63796b740">
 
 2. Discussing finances is not considered taboo in Switzerland.
 
</h2>

 
 In North America, discussing finances is considered a sensitive topic. It often involves concealment, embarrassment, and sometimes genuine dread when talking about money.
 


 
 However, money is an integral part of our lives. It’s essential for our basic needs. Generally speaking, the Swiss approach financial matters with pragmatism. As such, most shop windows display their prices openly; thus, if you find something appealing, you can assess your ability to purchase it without entering the establishment.
 


 
 Tipping doesn’t play a significant role in the local customs, and taxation operates somewhat distinctively, hence reducing the amount of estimation needed; thus, you won't have to open the calculator app on your smartphone for these purposes.
 


 
 It was quite invigorating for me to see that job listings in Switzerland openly disclosed their salary ranges and pay scales. After all, why should one hide remuneration details? Just like we share our professional history and qualifications without reservation on our resumes (or CVs), transparency about payment seems only fair. This openness has resonated with me deeply and I view it as a vital component of understanding finances and gaining control over them.
 

<h2 data-toc-id="eb978b94-0433-4a8f-be41-6916dcc8067c" id="eb978b94-0433-4a8f-be41-6916dcc8067c">
 
 3. The majority of Swiss residents prefer renting over purchasing houses.
 
</h2>

 
 I was raised in Toronto with the belief that someday I would manage to purchase my own property. However, nowadays, Toronto frequently grabs global attention due to its rapidly escalating real estate market, and home values have spiraled beyond reach.
 


 
 The affordable housing crisis continues unabated in urban areas throughout North America and
 
 Many of my peers from Generation Y currently view owning a home as unattainable.
 
 In 2020, I moved from the city to a smaller town in Ontario, largely for this reason.
 
 
 buy a house
 
 
 .
 


 
 In Switzerland, housing comes with high costs, yet owning property is not as culturally significant as it is in this country.
 


 I was astonished to discover that just
 A tiny fraction of Swiss people own their homes or apartments.
 Over sixty percent of residents in Switzerland opt for renting homes, which significantly differs from trends observed in the US, Canada, and other parts of Europe. Cities like Zurich and Geneva frequently appear among the priciest locations globally; however, they share this distinction with cities such as New York City and Toronto.


 
 I attended a holiday gathering at my friend’s partner's apartment in Zurich. The man she was dating, who worked as a legal practitioner, shared the space with two others: one being a medical doctor and another an experienced poker player. It puzzled me how those three individuals, all in their thirties, decided to cohabitate rather than living separately.
 


 
 But when I laid eyes on their apartment.
 


 
 It was astounding. The entire top level of a structure situated in an excellent area belonged to them. Each individual possessed their private sleeping quarters along with attached bathrooms, plus they enjoyed shared use of a terrace that encircled the apartment completely, offering unobstructed vistas of both the lake and the Alps. These up-and-coming working individuals chose to share living expenses as a means to manage affording this spectacular residence within one of the costliest urban centers globally.
 


 
 Not sure how to begin? Think about consulting a financial advisor.
 


 Finding a financial advisor
 It doesn’t have to be complicated. Utilize SmartAsset’s free resource to connect with up to three fee-only financial advisors in your vicinity within minutes. These advisors are screened and adhere to a fiduciary standard, ensuring they always put your best interests first.
 Start your search now.

<div class="read-original">
 Read the initial article on
 Business Insider
</div>

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After 6 Years in Switzerland, These 3 Money Habits Made My Return Home Worth It

Unknown money, personal finance, personal finance careers, saving money, switzerland

Locate a Competent Financial Adviser Finding a financial advisor It doesn’t have to be complicated. With SmartAsset’s free tool, you can quickly get matched with up to three fiduciary financi…

What's Next for a 70-Year-Old With No Emergency or Retirement Savings?

Unknown financial advice, financial advisors, financial planning, financial services, personal finance

<img data-document-id="cms/api/amp/image/BB1m9srW" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1m9srW.jpg"/>

 
 Question:
 
 I'm 70 years old and have not set aside any funds for emergencies or retirement. Who should someone in my situation seek guidance from? Are there steps I can take?


 
 Answer:
 
 Many certified financial planners and other experts in finance typically assist individuals who possess significant wealth, which might make it challenging for others seeking guidance. However, there’s an upside: numerous options allow folks to obtain high-quality, free (you heard correctly) or highly affordable financial counsel.


 
 Encountering problems with your current financial advisor or searching for a new one? Send your queries or issues via email.
 picks@
 .
 

<div class="paywall">
 <ol class="articleList">
 <li>
 
 Think of a financial advisor who volunteers their services for free.
 
 Certain advisors provide their services free of charge to individuals possessing minimal resources. If you're looking for a financial advisor who operates under a pro bono arrangement, consider visiting the XY Planning Network’s Find an Advisor platform where you can look up "pro bono." Additional avenues consist of checking out The Financial Planning Association, exploring the Foundation for Financial Planning’s Pro Bono Planner Match website, as well as examining initiatives offered through the CFP Board’s Pro Bono Program.
 </li>
 <li>
 
 Consult with a certified financial advisor.
 
 You can locate listings for AFCs on the website.
 AFCPE website
 According to certified financial planner Andrea Clark from The Table Financial Planning, AFCs possess both counseling and coaching certifications. These qualifications enable them to help clients make intricate financial choices by providing essential education, information, tools, and resources—regardless of an individual's past financial situation or present monetary standing. Additionally, these professionals act as fiduciaries, ensuring they prioritize your welfare over their own interests. Fees for services provided by AFCs may vary; they often charge anywhere from $25 to $250 per hour based on an hourly rate model.
 </li>
 <li>
 
 Look locally.
 
 "You may want to contact your nearby community action agency—nonprofits focused on promoting self-reliance, often serving those with lower incomes—as they frequently offer free financial advisory services. Additionally, you could explore educational sessions provided at your local library that discuss managing cash flow and accessing resources during retirement," according to Clark.
 Financial Empowerment Centers
 (FECs) can be found in multiple urban areas as well. "The FECs provide individualized financial advice free of charge and assist with planning budgets, managing debts, and establishing financial objectives," explains Mark Struthers, a certified financial planner from Sona Wealth Advisors.
 </li>
 <li>
 
 Check these other places.
 
 Consumers have additional avenues available to them, as detailed below.
 this
 as outlined in the guide, along with this
 one
 .
 </li>
 </ol>
 
 Be aware that there are steps you can take on your own to address your circumstances. "It's important to avoid accumulating credit card debt and establish an emergency fund, even if it covers just one month of necessary expenditures. As much as possible, seek employment, whether full-time or part-time, to boost your Social Security benefits. Additionally, ask the advisor handling your finances to clarify whether extra earnings could lead to partial taxation of your Social Security payments, ensuring you understand how this impacts your overall figures," advises certified financial planner Alonso Rodriguez Segarra at Advise Financial.
 
 
 If part-time positions appeal to you, websites such as FlexJobs, Indeed, ZipRecruiter, and the AARP’s Job Board offer numerous job listings with various openings. These platforms let you narrow down options based on particular interests or locations within your ZIP code, plus many roles allow for fully remote working, so you have the flexibility to operate from virtually anywhere.
 
 
 Given your current stage of life without any savings or retirement accounts, it's crucial to look into every possible avenue. As certified financial planner Ryan Haiss from Flynn Zito Capital Management points out, "Engaging with a professional advisor might assist you in assessing various income streams, like optimizing your Social Security earnings and investigating choices should you have equity tied up in your main home."
 
 
 
 Encountering problems with your current financial advisor or searching for a new one? Send your queries or issues via email.
 picks@
 .
 
 
 
 
 By sending your questions via email to The Advisor, you consent to having them published anonymously on this platform; they might also be featured anonymously across various other media and channels.
 
 
</div>

What's Next for a 70-Year-Old With No Emergency or Retirement Savings?

Unknown financial advice, financial advisors, financial planning, financial services, personal finance

Question: I'm 70 years old and have not set aside any funds for emergencies or retirement. Who should someone in my situation seek guidance from? Are there steps I can take? Answer: Man…

56歳、貯金8000万円。子どもの老後も面倒を見なければと考えると、どれだけ稼いでも足りない気がします

Unknown business, money, money management, personal finance, personal finance real estate

<img data-document-id="cms/api/amp/image/AA1B5yi2" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1B5yi2.jpg"/>
 
 <h2>
 子どもの老後のことを考えると、どれだけ稼いでも足りない気がします
 </h2>
 皆さんから寄せられた家計の悩みにお答えする、その名も「マネープランクリニック」。


 今回のご相談者は、56歳の会社経営者の方。元夫から会社の経営を引き継ぎ、赤字から立て直したとのこと。お子さんの将来のお金と老後について悩んでいます。ファイナンシャル・プランナーの深野康彦さんがアドバイスします。


 <h3>
 ▼相談者
 </h3>
 たまさぶろうさん


 女性／会社経営／56歳


 関東／持ち家（一戸建て）


 <h3>
 ▼家族構成
 </h3>
 子ども2人（大学生）


 <h3>
 ▼相談内容
 </h3>
 数年前にDV夫と離婚しました。元夫が放漫経営で借りた1億円近い借金の肩代わりをすることが離婚の条件でした。


 気に入らないことがあれば、どなりちらし家のものを壊す元夫と、離婚さえできればお金のことは後から考え自分で自己破産手続きをすればいいと思い、債務超過の会社を引き継いで借金を背負いました。


 当初は毎月の赤字と多額の借金に思い悩み鬱病を発症し、死ぬことばかり考えていました。子どものために生きなければと踏ん張り、新規事業を立ち上げたことが功を奏して、会社は大きく黒字転換しました。借金もほぼ完済し、ある程度の資産もできましたが、子どもたちの将来が気がかりで心が休まることがありません。


 子どもは2人とも発達障害があり、社会人として適応していけるのか、適応できない場合、子どもの老後まで含めて私が面倒を見なければと考えると、どれだけ稼いでも足りない気がしてくるのです。


 子ども名義の預金はNISAで長期運用を考えており、投資先は全世界株式型の投信と、かなり長期の投資ができるため新興国の投資信託なども10％程度組み込もうと考えていますが、正解がわかりません。


 小さな会社なのでいつ業績が悪化するかも予測はできないため、好調な今のうちに事業売却することも検討しており、売却した場合に税金などを引いて手元に残るお金は1億3000万円ほどと、現在役員社宅としている会社所有の家を現物支給（資産価値8000万円ほど）されることになると思います。


 老後は75歳くらいで高齢者向けマンションなどに移り、マンションのコミュニティーで参加できるサークル活動などをして気楽に過ごしたいです。入居時のまとまったお金とは別に、毎月30万円程度の利用料含む生活費を、年金＋個人年金＋株や投資信託の配当金で賄えるようにしたいです。所有しているマンションの家賃収入はアテにしていません。築年数が古く、駅から遠く立地が良くないため、ころ合いを見計らって売ってしまったほうが良いと考えていますが、そのあたりもアドバイスいただきたいです。


 あまり一般的なケースではなく、どなたかの参考になるような話ではないかもしれませんが、どうか深野先生に相談させていただきたく、よろしくお願い申し上げます。


 <h3>
 ▼家計収支データ
 </h3>
 たまさぶろうさんの家計収支データは図表のとおりです。


 <img data-document-id="cms/api/amp/image/AA1B5APr" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1B5APr.jpg"/>


 <h3>
 ▼家計収支データ補足
 </h3>
 （1）ボーナスの使い道


 ・保険の年払い10万円


 ・家電等の大きな買い物や予備費として50万円


 ・旅行・レジャー費50万円


 ・固定資産税45万円


 ・株や投資信託を購入し、残れば貯蓄


 （2）貯蓄・投資について


 データ以外に子ども名義貯蓄が1130万円、子ども名義の株・投信が550万円などがある。


 （3）家計収支について


 ・毎月の収支は、家計簿なども付けておらず、必要な分だけ使い、残った分は普通預金に貯まっていきます。特に特別な支出はありませんが、衝動的に30万～40万円程度の服やカバンを購入してしまいます。


 ・通信費は会社負担です。また、車も2台所有しておりますが、維持費やガソリン代などすべて会社負担です。


 ・4月から第1子が家を離れますので、食費を5万円、家族の小遣いから3万円削減できます。教育費は13万円、通院費用などが削減可能です。電気・ガス・水道料金も5000円ほど削減できます。


 （4）住居費について


 会社にて購入した一戸建てを役員社宅として利用しており、月5万円を家賃として会社に支払っています。


 ・購入価格／1億円


 ・ローン借入額／1億円


 ・借入金利／0.7％


 ・返済期間／20年


 ・毎月返済額／45万円


 ・ローン残債／9500万円


 ・社宅固定資産税は32万円、火災保険不明。いずれも会社負担


 ○個人保有の不動産


 ・区分所有マンション2室／家賃9万円×2


 売却した場合、1室1500万円程度


 所有マンションの固定資産税は2室で21万円。自己負担


 （5）加入保険について


 保険料は合計で平均月20万円ほど（ドル建て保険は保険料が変動するため、現在の為替レートでの保険料。ボーナスからの年払い分と会社から払っている保険料を除く）。


 ◇相談者


 ①終身保険（死亡保障1000万円、50歳で払込終了、現在の解約返戻金330万円）


 ②外貨建て養老保険（65歳まで払込、満期保険金月額250ドル終身）＝保険料361.25ドル


 ※この保険に4本加入しており、65歳から月1000ドル受け取る予定ですが、2本は払い済みにして、ドル建て債券を購入しようかと検討しております。現時点で2本を払い済みにした場合、受け取れる年金額は月額680ドルほどになります。


 ③終身保険（保険金額173万円）＝払済


 ④終身医療保険（60歳まで払込、入院日額5000円、手術特約10万円、先進医療特約1000万円）＝保険料5400円


 ⑤共済＝保険料2000円


 ※以下の子どもの保険は、私が死亡した場合に、子どもに3000万円程度の保険金を残したいと思い加入しています。


 ◇第1子


 ①外貨建て保険＝払済


 現時点での解約返戻金額1万5053ドル（第1子45歳時点で2万5000ドルくらいまで増えます）


 ②外貨建て終身保険（払込期間33年、満期保険金月額200ドル、50歳で払込満了、50歳から年金開始）＝保険料114.33ドル


 ③積立利率変動型終身保険／外貨建て（主契約保険料払込期間10年間）＝保険料6142.7ドル年払い


 ④共済＝保険料2000円


 ◇第2子


 ①外貨建て保険＝払済


 現時点での解約返戻金額1万8280ドル（第2子40歳時点で2万9000ドルくらいまで増えます）


 ②外貨建て終身保険（払込期間35年、満期保険金月額200ドル、50歳で払込満了、50歳から年金開始）＝保険料119.78ドル


 ③積立利率変動型終身保険／外貨建て（主契約保険料払込期間10年間）＝保険料6142.7ドル年払い


 ④共済＝保険料1000円


 （6）子どもについて


 毎月の教育費は大学の学費です。1年分まとめて支払いますが、それを月割りした金額です。第1子は今春卒業となり、その後の教育費は月額11万円になります。


 （7）働き方について


 事業売却後、雇われ社長として60歳まで手取り40万円程度、その後パートなどで月5万円程度で65歳まで働こうと思います。また売却の際に、手取り25万円程度での65歳までの雇用を条件とすることも可能かと思います。仕事を辞めたら、英語を学んで、海外への一人旅に年に1～2回程度行きたいです。ヨーロッパの建築物や美術館を回り、75歳くらいまでは毎年行きたいと思います。


 （8）公的年金について


 現時点で132万6000円ほどです。事業売却した後も60歳までは厚生年金を支払います。年金は70歳からもらうつもりです。


 <h3>
 ▼FP深野康彦の3つのアドバイス
 </h3>
 アドバイス1：事業売却しても固定収入があれば、金融資産の目減りはない


 アドバイス2：払込み終了の保険以外は不要。その分を預貯金でキープする


 アドバイス3：所有不動産は早めに売却し、子どもへの財産信託という選択も


 <h2>
 アドバイス1：事業売却しても固定収入があれば、金融資産の目減りはない
 </h2>
 複雑なご事情を抱えながらも、よく頑張ってこられました。いただいた情報は多岐にわたりますが、今後、子ども2人の生活とご相談者のリタイア後の生活が問題ないか試算していきます。税務、会計処理の具体策は顧問税理士、会計士にご相談なさるようにお願いします。


 事業売却がいつなのか不明ですが、1年以内に売却するとして、手元に残るのが1億3000万円とのこと。これに現在の金融資産7962万円を合計すると2億962万円です。社宅としている住居を譲り受けた場合、家賃の5万円はなくなりますが、固定資産税の支払いが新たに発生しますので、住居費は年間60万円のままとします。住居については、課税対象になる可能性もありますので、税務の専門家に確認するようにしてください。


 事業売却後、雇われ社長として60歳まで働く場合の収支を整理します。


 手取り月収40万円、年間480万円。役員報酬、ボーナスの記載がありませんので、ないものとします。これに自己所有マンションの賃料収入216万円を加算して、年間696万円となります。


 支出は現在87万2000円ですが、4月から子ども1人分の生活費、教育関連費20万円が削減できます。さらに保険は毎月20万円の支払いがありますが、払い済みもしくは全納して毎月の支払いはゼロとします。都合、毎月の支出は45万2000円となります。年間で542万円、これに年間でかかる費用145万円（保険料の年払いはゼロに）を加算すると年間支出は687万円です。


 年間の収支としては、ほぼプラスマイナスゼロとなります。保険を払い済みとすれば60歳まで金融資産の2億1000万円はキープしたままということです。


 <h2>
 アドバイス2：払込み終了の保険以外は不要。その分を預貯金でキープする
 </h2>
 保険についても整理します。ご相談者の保険のうち、すでに払込みが終了しているものはそのままで問題ありませんが、それ以外の保険については、見直しが必要です。事業売却した後は、保険料の払込みが難しくなります。金融資産から取り崩して払込みを続けるという考え方もあるでしょうが、その分はキャッシュで持っていたほうが、いざというときに動かしやすいとも考えられます。


 もしも継続するのであれば、残りの保険料を全納してしまったほうが、資産管理としてはすっきりします。4本分でおそらく2000万円ほどだと思われますが、家計から出すのではなく、現在の金融資産の振替と考えたらいかがでしょうか。医療保険と共済は不要です。預貯金で賄うことができるからです。


 子ども2人の保険に関しては、解約もしくは払い済みにして、今後の保険料の支払いをなくすことです。これまでも子どもへの役員報酬から保険料を支払っていたとのことですから、事業売却後は保険料の支払いができません。加入している保険は外貨建てであり、為替の影響を受けます。


 さらに申し上げると、保険で3000万円程度のお金を残したいというご希望ですが、お子さんのご事情を考慮すると、保険の手続きなど複雑なものよりも現預金で残されるほうがいいのではありませんか？ それだけの金融資産があります。そこまで外貨建ての保険や外貨建ての金融資産にこだわらなくても、確実に残せる方法を検討してみてください。


 <h2>
 アドバイス3：所有不動産は早めに売却し、子どもへの財産信託という選択も
 </h2>
 60歳以降は毎月5万円程度の収入を得るとしたら年間60万円。一方支出は、子どもの教育費などのコストがなくなっていますので、年間600万円ほどとします。不足分の540万円は70歳まで金融資産で対応すると10年で5400万円の取り崩しですが、それでも1億5600万円が残ります。


 70歳まで公的年金の受給を繰り下げると、42％増となります。現在の見込み額が132万円。65歳で140万円程度になっているとすると、70歳まで繰り上げた場合、198万円になります。手取りで165万円程度でしょうか。年間の生活コストに変化がなければ不足額は440万円ほど。75歳までの5年間で2200万円を使い、金融資産は1億3400万円です。この先は、高齢者施設に入居して、趣味を楽しみたいということですので、資産の範囲でご希望の施設を選ばれるといいでしょう。


 自宅、所有マンションは、できれば早めに売却することをおすすめします。マンションは子どもが使う予定を考慮したとしても、経年すればするほど評価額は下がっていく可能性もあります。現在自宅の評価は8000万円、所有マンションは2戸で3000万円、合計1億1000万円を見込めるということですから、早めにキャッシュアウトして子どものために財産信託をされておかれてもいいのではないでしょうか？ ご相談者になにかあっても財産を子どもたちに残せる方法を検討してみてください。お子さんの状態によっては成年後見制度の利用も必要になるのかもしれません。


 最終的にはご相談者がお決めになることですが、お子さんの状況を考えると、外貨建ての保険や外貨建ての金融商品、不動産を残しておられると、将来的に相続が発生した場合の手続きが心配になります。あまり複雑なことは考えず、保険で資産を残すのであれば相続税の非課税範囲内に留め可能な限り、現金化しやすいもの、または現預金で資産を残しておかれるといいでしょう。


 <h2>
 相談者「たまさぶろう」さんから寄せられた感想
 </h2>
 今回深野先生に診断をいただき、外貨建て金融商品や保険、不動産などを整理していき、シンプルな形で子どもに引き継ぐことが大切であると気づきました。また財産信託についても調べてみて検討していくようにいたします。共済や医療保険など惰性で続けていた保険も含め、しっかりと整理していきます。そうすることで、自分の際限のない悩みもひとつずつ解消されていくように思います。


 深野先生をはじめ、マネープランクリニックのスタッフの方々にも私の相談に親身に対応していただいたことを感謝いたします。ありがとうございました。


 教えてくれたのは……深野 康彦さん


 マネープランクリニックでもおなじみのベテランFPの1人。さまざまなメディアを通じて、家計管理の方法や投資の啓蒙などお金周り全般に関する情報を発信しています。All About貯蓄・投資信託ガイドとしても活躍中。


 取材・文／伊藤加奈子

56歳、貯金8000万円。子どもの老後も面倒を見なければと考えると、どれだけ稼いでも足りない気がします

Unknown business, money, money management, personal finance, personal finance real estate

子どもの老後のことを考えると、どれだけ稼いでも足りない気がします皆さんから寄せられた家計の悩みにお答えする、その名も「マネープランクリニック」。今回のご相談者は、56歳の会社経営者の方。元夫から会社の経営を引き継ぎ、赤字から立て直したとのこと。お子さんの将来のお金と老後について悩んでいます。ファイナンシャル・プランナーの深野康彦さんがアドバイスします。 …

5 Signs You’re Wasting Money by Keeping Too Much in Your Checking Account

Unknown money, money management, personal finance, saving money, savings accounts

Locate a Competent Financial Adviser
 


 Finding a financial advisor
 It doesn’t have to be complicated. With SmartAsset’s free tool, you can quickly connect with up to three fee-only financial advisors who service your locality. All of these advisors undergo rigorous evaluation.
 SmartAsset
 and must adhere to a fiduciary duty to prioritize your best interests.
 Start your search now.


 The information and specifics on this page might have been modified or altered after the publishing date. Please check out our article for updates.
 Business Insider
 for current information.


 Affiliate links for the items featured on this page are provided by partner companies that offer compensation. Please be aware that certain conditions apply to these offers as detailed (see our
 advertising disclosure: here is our list of partners
 For additional information, please refer to this link). Nevertheless, our viewpoints are independent. See
 How do we evaluate banking products?
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<ul class="summary-list">
 <li>
 Holding excessive funds in your checking account might result in losing potential interest and growth opportunities.
 </li>
 <li>
 Around two months' worth of living costs is the maximum amount to hold in a checking account.
 </li>
 <li>
 High-return savings accounts, certificates of deposit (CDs), and investment accounts are more advantageous for your money over the long term.
 </li>
</ul>

 Everybody enjoys spotting a substantial amount in their checking account — yet at what point does that sum become excessively large?


 Holding onto excessive things in your
 checking account
 Isn't optimal for these two reasons: Firstly, readily available funds may tempt you into spending them. Secondly, since checking accounts typically do not generate significant interest—or none at all—your cash won’t increase over time. Storing excessive amounts in your checking account might result in missing out on potential earnings, however small they may be.


 Financial advisor Marci Bair from
 Bair Financial Planning
 In San Diego suggests that for individuals with a consistent salary, she advises maintaining "roughly two months' worth of living costs" in their checking account at all times.


 If your checking account holds one or two months' worth of living costs and you think this amount may be excessive, consider these indicators. Should they resonate with your situation, it’s likely advisable to begin transferring funds elsewhere.


 
 Enjoy Special Discounts with Raisin
 
 : Open a no-fee
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 open an account within minutes and distribute your funds among an elite network comprising more than 30 FDIC-insured banks and NCUA-insured credit unions. Achieve higher interest rates on your savings and control everything through one safe login process.
 
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<h2>
 1. There isn't a strategy in place for your savings.
</h2>

 If you lack a financial strategy, you might find yourself with cash idle in your checking account, ready for unforeseen expenses. This approach won’t help you accumulate wealth effectively.


 Rather than doing nothing, choose the amount you want to allocate towards each of your financial objectives, and establish automated transfers from your checking account to your savings, retirement, and investment accounts every month.


 A strategy can assist in turning your aspirations into real achievements, enabling you to set aside the necessary funds while allocating the remainder towards various objectives and substantial expansion possibilities.

<h2>
 2. You've already filled your emergency fund.
</h2>

 A clear indication that you have more than enough wealth begins with something positive: You've successfully assembled a complete set of assets.
 emergency fund
 , and you still have some funds remaining. An emergency reserve should consist of roughly six months’ worth of living costs kept in a secure yet accessible place, such as a
 high-yield savings account
 .


 Once this account is established, it might be tempting to keep any extra funds in your checking account. However, Bair suggests alternative approaches for utilizing the money. He recommends transferring the remainder into
 CDs
 "And then to a well-balanced investment portfolio," she explains.

<h2>
 3. You have overlooked other monetary objectives, such as planning for your retirement.
</h2>

 It’s one matter to overlook financial objectives when funds are scarce. However, it becomes quite different when you ignore those same goals even though you possess the means to work towards achieving them. If your savings and
 retirement accounts
 If they aren’t increasing, yet your checking account balance is going up, you might be facing an issue.


 If your checking account balance is increasing while your IRA,
 401(k)
 , or your savings account isn’t growing, you might be keeping an excessive amount of funds in your checking account. Thanks to
 compound interest
 Time is crucial when it comes to saving for retirement (and, indeed, any type of savings). If you possess funds available for saving, you should place them in an account where they can start benefiting you at the earliest opportunity.


 Think about arranging for automated transfers from your checking account or having money directly withdrawn from your salary to work towards your financial objectives.

<h2>
 4. You're letting chances slip away.
</h2>

 If you maintain a substantial balance in your checking account yet fail to utilize benefits such as your employer’s 401(k) matching contribution, you may be keeping excess funds idle. The match, which involves your company contributing an equal amount up to a specific percent, essentially amounts to free money. Redirecting those additional funds from your checking account into your retirement account could prove more beneficial for your future finances.


 Perhaps you haven't looked into another type of savings or investment account such as a Health Savings Account (HSA). This is a tax-advantaged account designed for qualifying health-related expenditures; funds can be carried forward annually and utilized later for additional retirement savings. If you have a high-deductible healthcare plan, you qualify for this option. Having extra cash in an HSA could contribute more effectively towards accumulating wealth compared to leaving it in your checking account.

<h2>
 5. You're concerned about losing potential earnings.
</h2>

 According to the FDIC, the typical checking account boasts an interest rate of 0.07%. This figure is significantly below what you'd usually find with a high-yield savings account.


 Moreover, this pale in significance when compared to the typical 10% yearly gain from the stock market, which implies that funds held in a retirement account or similar long-term investment vehicle might expand further. Opting to keep your money in a checking account may result in missed opportunities for greater accumulation. Should this situation make you uneasy, then it’s advisable to consider relocating those funds.


 Bair mentions, “I have customers who believe their balance in their checking account isn’t excessive,” but adds, “once these same individuals realize the minimal interest rates being offered versus potential earnings from higher-interest options, we typically encourage them to transfer funds accordingly.”


 
 The article was initially released in March 2020.
 

<div class="read-original">
 Read the initial article on
 Business Insider
</div>

 If you liked this tale, make sure to follow
 Business Insider
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5 Signs You’re Wasting Money by Keeping Too Much in Your Checking Account

Unknown money, money management, personal finance, saving money, savings accounts

Locate a Competent Financial Adviser Finding a financial advisor It doesn’t have to be complicated. With SmartAsset’s free tool, you can quickly connect with up to three fee-only financial ad…

This Money Bias Is the Biggest Hurdle to Building Wealth, Says Financial Psychologist

Unknown investing, money management, personal finance, personal finance retirement, wealth

<img data-document-id="cms/api/amp/image/AA1wZzJs" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1wZzJs.jpg"/>

 It's officially the season when people finally tackle tasks they've been postponing. For countless Americans, this involves addressing their financial situations.


 If you've been avoiding
 funding your 401(k)
 When starting a brokerage account, remember that many people face similar situations. About 48% of American adults—almost half—are reported as having no investment assets at all, according to recent data.
 2024 survey from Janus Henderson
 .


 For many, the rationale for postponing investment seems straightforward: It appears overly complicated.


 It's a pattern of thinking that, if not overcome, could cripple many young people financially, says Amos Nadler, founder of
 Prof of Wall Street
 and holds a Ph.D. in behavioral finance along with neuroeconomics.


 He explains this phenomenon as 'complexity aversion,' which represents the primary obstacle to accumulating wealth for individuals not involved in financial markets or those who haven't invested previously.


 This cognitive bias might be causing you to lose cash.

<h4>
 The significance of conquering reluctance towards complex issues
</h4>

 At its core, individuals who delay tackling crucial financial responsibilities share similar concerns with those reluctant to begin an exercise regimen—they fear making errors or feeling silly.


 As someone might admit their lack of knowledge about complex gym machinery with "I have no clue how this stuff operates," a financially avoidant individual could express similar feelings by saying, “This is way beyond me,” according to Nadler. They might add, “Math and finances aren’t really my strong suit.”


 Experiencing such feelings about money is strongly linked to another prevalent cognitive bias called
 risk aversion
 Basically, you're not just worried about making mistakes, but also concerned about potentially losing the resources you've worked hard to build up. Since the fear of loss often overshadows the satisfaction derived from growing your wealth, this keeps you stationary.


 The urge is, “I’ve put in the effort to earn this money, and I prefer playing safe. It’s better for me to simply receive the cash,” explains Nadler. “Even though I’m aware that inflation is eroding my savings, the markets are too unpredictable right now, which makes me cautious.”


 However, the necessity of beginning investments—particularly for younger individuals—goes further than just keeping pace with inflation. Delaying this specific financial task means missing out on something numerous experts refer to as your
 most valuable asset
 : time.


 The longer you remain in the investment market, the more opportunity your funds have to increase through compound interest. Each year you put off entering the market could mean losing out on thousands of dollars in potential wealth accumulation for your future.


 Play around with an
 online compounding interest calculator
 , and you might find that staying out of the game for just a couple of years could significantly impact your earnings over time.


 Imagine a scenario where someone begins investing $200 monthly into their retirement fund at the age of 20, assuming they achieve an average yearly return of 8%. When this individual reaches 67 years old for retirement, they will accumulate approximately $1.25 million. However, if they start contributing at 25 under identical circumstances, their savings would amount to roughly $830,000 upon retiring. Should they delay starting until turning 30, then at retirement age, they’d only amass around $547,000.

<h4>
 How to overcome reluctance towards complex tasks
</h4>

 Therefore, how does one begin? You might consider opening a brokerage account or funding your own retirement account, like an IRA.
 Accomplishing this involves only a handful of simple steps.
 .


 However, if your employer provides a workplace retirement plan like a 401(k), joining might be an equally straightforward approach to begin saving. You can set aside a portion of your earnings automatically from every pay stub towards this account and choose one or multiple mutual funds for your investment mix.


 These plans typically include affordable, broadly diversified choices like index and target-date funds, providing investors with access to substantial portions of the market.


 
 Looking to earn additional income beyond your regular employment?
 
 Register for DIWIDA's web-based class
 Ways to Generate Passive Income On the Internet
 To discover popular methods for generating passive income, advice on beginning your journey, and true accounts of people who have succeeded.


 Plus,
 subscribe to DIWIDAMake It's mailing list
 To acquire advice and strategies for achieving success at your job, managing finances, and navigating everyday life.

<img data-document-id="cms/api/amp/video/AA1vRlb5" data-reference="video"/>

This Money Bias Is the Biggest Hurdle to Building Wealth, Says Financial Psychologist

Unknown investing, money management, personal finance, personal finance retirement, wealth

It's officially the season when people finally tackle tasks they've been postponing. For countless Americans, this involves addressing their financial situations. If you've been avoiding funding y…

Boomers Beware: Top 4 Debts to Tackle Before Retirement

Unknown debt, personal finance, personal finance credit, personal finance retirement, retirement planning

<div class="image">
 <img data-document-id="cms/api/amp/image/AATkrND" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AATkrND.jpg"/>
</div>

 As a baby boomer myself (although one not looking to retire soon), I -- and my wife -- have been working to steadily reduce and retire some old debts. My exorbitant law school debt is long gone, and our
 home mortgage rate
 It’s at its lowest point and nearly paid off. Credit card debt has become virtually nonexistent.


 
 Claim a bonus of $250 and halt interest payments until 2026 – this credit card is the ideal mix!
 
 Learn more here.
 
 


 The reason being, people usually reach their highest earnings in their 50s, and as this period of life moves further away, it’s wise and sensible to reduce expenses whenever feasible. Doing so allows us to allocate more discretionary funds towards our chosen activities or goals.


 Let’s delve into which debts hold the highest priority for elimination before retiring, and examine how reducing these debts as much as feasible can safeguard your savings and secure your financial future.

<h2 id="1.-high-interest-credit-card-debt">
 1. Credit card debt with high interest rates
</h2>

 Credit card debt ranks among the costliest financial burdens owing to exorbitant interest rates. By 2024, the typical U.S. annual percentage rate (APR) for credit cards stood at approximately 23.37%. Sustaining such substantial costs could swiftly erode your savings intended for retirement, transforming your hard-earned nest egg into nothing more than an empty shell.


 Eliminating revolving credit card debt should top the list as Public Enemy No. 1 in your strategy for reducing debt.
 
 At a minimum,
 
 
 move your credit card debt to one of these top-ranked balance transfer cards that we recommend
 
 
 .
 
 You might manage to clear your debt earlier without facing extra interest fees.

<h2 id="">
 2. Mortgage balance
</h2>

 Taking on a mortgage during retirement can be feasible, provided you've planned accordingly. Numerous advisors recommend fully settling your mortgage prior to retiring, particularly if the interest rate is steep.
 
 or
 
 If you plan to live on a fixed income, redirecting your retirement savings towards your mortgage payments could restrict your financial adaptability.


 Now, if paying it all off entirely is not an option, think about at least
 refinancing your home loan
 Or downsize to a more budget-friendly home to maintain control over monthly expenses.

<h2 id="3.-car-loans">
 3. Car loans
</h2>

 Car loan payments can be quite burdensome, especially since the typical interest rates range from as low as 5.25% all the way up to an impressive 21.55%, depending on your credit score. Additionally, upkeep expenses tend to go up for more aged cars. The best strategy might just be to get rid of these debts entirely! It’s highly advisable to settle any automobile loans prior to retirement in order to minimize the number of bills you'll have to manage each month.


 Alternatively, think about selling one of your additional cars. You might prefer choosing a more fuel-efficient vehicle to lessen this economic strain.

<h2 id="4.-medical-debt">
 4. Medical debt
</h2>

 Although Medicare and supplementary insurance significantly alleviate healthcare expenses (thanks, FDR!), unforeseen medical bills can still occur, particularly during retirement. Consider this: Experts estimate that a retiree might require approximately $165,000 to cover healthcare costs throughout their retirement years.


 A key point regarding medical debt is that it often has room for negotiation. You can contact the healthcare provider and discuss the possibility of paying a reduced sum compared to what’s listed on your bill. Use the advantage of being a senior; this strategy tends to be effective.


 Here’s the key point: Getting rid of or cutting down on debt prior to retiring is crucial for ensuring a safer and less stressful post-work life. By addressing these financial obligations directly, you pave the way for greater monetary stability (not to mention an infinitely simpler) and more satisfying retirement years.


 <h2>
 Warning: The credit card with the most significant cashback benefits currently offers a 0% introductory APR through 2026.
 </h2>
 
 
 This credit card
 is not merely good – it's exceptionally impressive, with even our experts choosing to use it themselves.
 
 
 includes a 0% introductory APR for 15 months, a cashback rate of up to 5%, and all this with no annual fee whatsoever!
 
 
 
 
 
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 for free and complete your application in merely 2 minutes.
 
 
 
 
 
 We strongly adhere to the Golden Rule, hence our editorial opinions belong solely to us and haven’t undergone prior review, approval, or endorsement by featured advertisers. Motley Fool Money doesn’t encompass every offer available in the marketplace. The editorial material from Motley Fool Money stands apart from The Motley Fool’s editorial content and is produced by an independent group of analysts. The Motley Fool has a
 disclosure policy
 .

Boomers Beware: Top 4 Debts to Tackle Before Retirement

Unknown debt, personal finance, personal finance credit, personal finance retirement, retirement planning

As a baby boomer myself (although one not looking to retire soon), I -- and my wife -- have been working to steadily reduce and retire some old debts. My exorbitant law school debt is long gone, a…

When My Dad Gave Me These 3 Credit Card Tips, I Listened. Today, They Still Guide Me.

Unknown credit, credit advice, credit cards, personal finance, personal finance credit

Locate a Competent Financial Adviser
 


 Finding a financial advisor
 It doesn’t have to be complicated. With SmartAsset’s free tool, you can quickly match with up to three fiduciary financial advisors who serve your region. All of these advisors undergo careful review.
 SmartAsset
 and must adhere to a fiduciary duty to prioritize your best interests.
 Start your search now.


 The information and offers on this page might have been modified or altered after the initial publishing date. Please check out our article for updates.
 Business Insider
 for current information.


 Affiliate links for the items featured on this page are provided by partner companies that offer compensation. Please be aware that certain conditions apply to these offers as detailed (see our)
 advertiser disclosure with our partner listing
 For additional information, please refer to this link). Nevertheless, our viewpoints are solely ours.).
 How do we evaluate credit score services?
 to help you make smart decisions with your money.

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<ul class="summary-list">
 <li>
 My dad taught me a credit card is not an extension of your income — it's credit the issuer expects to be repaid.
 </li>
 <li>
 Once I received my first credit card, he advised me to make small, affordable purchases and to avoid carrying a balance whenever possible.
 </li>
 <li>
 He likewise cautioned me against making late payments and advised using my credit card wisely.
 </li>
</ul>

 After graduating from college, starting my career, and purchasing my first home, I concluded it was the right moment to get my
 first credit card
 Once I possessed the card – along with its substantial credit limit – I imagined using it to complete decorating my new apartment, purchasing plane tickets, or paying for weekend breakfasts.


 During an easygoing chat with my father, I brought up the fact that I had acquired a credit card. He didn’t seem too pleased about it. “A credit card? It’s the fastest way into debt! Make sure you use your credit card wisely,” he cautioned me.


 The amount of credit card debt hit a record peak.
 over $1 trillion
 According to a report from the New York Federal Reserve, his statement holds true: Americans currently bear the greatest amount of credit card debt in history and are also facing substantial interest charge rates as a result.


 Following my discussion with my father about using a credit card wisely, these are three tips I've continued to follow up until now, two decades later:

<h2>
 1. Begin with small, achievable fees
</h2>

 Rather than instantly putting that $2,000 dining room table on your credit card, opt for more manageable expenses that you can clear swiftly without sinking yourself deeper into debt. Using a credit card for something unaffordable leaves you with lingering balances that accumulate over time because of accruing interest.


 Recognize that a credit card does not increase your earnings. Instead, it provides borrowed funds from the credit card company that they anticipate will be repaid.


 When purchasing my new couch, rather than using a credit card and paying for it over several months, I waited until it was discounted (40 percent off during Black Friday) and then bought it with cash.


 
 Cash Back Credit Cards
 
 The
 top rewards credit cards for cashback offers
 assist in maximizing your rewards from daily spending and add extra money to your pocket. Well-liked options encompass the
 Chase Freedom Unlimited
 and the
 Explore the Discover It Cash Back Card
 .

<h2>
 2. Settle the full amount each month
</h2>

 The best approach for using a credit card is to clear your balance each month to avoid accumulating debt. Given that many credit cards have interest rates in the double-digits, maintaining a monthly balance can lead to significant additional expenses.


 Additionally, whenever you settle the full credit card balance each month, your
 credit utilization ratio
 stays low, which has a positive impact on your credit. If your utilization is over 30% it can have a negative impact on your
 credit score
 .

<h2>
 3. Never pay late
</h2>

 Once those credit card bills start coming in every month, there's one thing you must do: pay
 at least
 The smallest payment required by the deadline. My father takes his credit seriously, and so do I.


 If you fail to make a timely payment, you might incur both a late fee and additional interest charges on what remains owed. Additionally, such delays can negatively impact your credit score.


 Once you establish your online account, you have the option to configure complimentary text or email reminders that will alert you several days prior to your billing deadline. Alternatively, if you're confident with managing your expenses, go a step ahead by enrolling in automatic payments to ensure you never miss a due date.


 Have you ever had trouble paying your credit card bills leading to delinquency or default? If so, share your experiences and stories about credit score challenges and successes with this journalist at jstreaks@DIWIDA.


 The initial publication of this article took place in November 2023.

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 Read the initial article on
 Business Insider
</div>

 If you liked this tale, make sure to follow
 Business Insider
 on Microsoft Start.

When My Dad Gave Me These 3 Credit Card Tips, I Listened. Today, They Still Guide Me.

Unknown credit, credit advice, credit cards, personal finance, personal finance credit

Locate a Competent Financial Adviser Finding a financial advisor It doesn’t have to be complicated. With SmartAsset’s free tool, you can quickly match with up to three fiduciary financial adv…