News.Life

10 Surprising Things That Might Be Costing You Money Unnecessarily

DIWIDA.NEWS 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.
 

<h3>
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10 Surprising Things That Might Be Costing You Money Unnecessarily

Many individuals shell out cash on items they believe fall outside their budget. Perhaps it's a coffee purchased on your commute to...

Should You Top Up Your Super Now or Later? Timing Matters for Your Retirement Nest Egg

DIWIDA.NEWS investing, money, personal finance retirement, personal finance saving spending, saving money

<img data-document-id="cms/api/amp/image/AA1ylJah" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1ylJah.jpg"/>
<div>
 
 Increasing your superannuation contributions can enhance your nest egg for retirement, yet with numerous pressing expenses vying for attention, it may not always be clear when it’s best to make additional payments into your fund.
 
 
 Based on ASIC's Moneysmart, someone who starts at age 30 by adding an additional $20 each week might end up with $50,000 more when they retire. Additionally, there are potential tax benefits associated with making extra superannuation contributions.
 
 
 However, securing funds to save can be challenging, particularly within today’s financial climate, and boosting contributions to your superannuation might not always be the best strategy.
 
 
 We consulted with two specialists to delve into when this approach is advantageous and assist you in grasping the possible advantages and disadvantages.
 
 <h4>
 First, cover the basics
 </h4>
 
 Kate McCallum serves as a financial advisor and is also one of the co-authors of The Joy of Money.
 
 
 According to Ms McCallum, if you find yourself in your 20s, 30s, or 40s, you may encounter significant financial pressures. These could involve paying rent, setting aside money for a home purchase, managing mortgage obligations, covering educational fees, and handling everyday living costs.
 
 
 If you're carrying consumer debts like credit card balances or personal loans, it makes more sense to focus on reducing those before increasing your superannuation contributions.
 
 
 This is due to the fact that the interest rates on these items are quite high, and clearing them off offers a guaranteed return.
 
 
 It's equally advisable to possess an
 emergency fund
 — preferably enough to cover at least 90 days of living costs.
 
 
 In addition to providing mental tranquility, this can also prevent the necessity of taking on debt for unforeseen costs.
 
 <h4>
 Why young individuals ought to ponder thoroughly before contributing additional funds to their superannuation.
 </h4>
 
 Ms McCallum emphasizes the importance of assessing your entire financial position and objectives prior to thinking about increasing your superannuation contributions.
 
 
 Significantly, the majority of individuals cannot withdraw their superannuation until they attain their preservation age, ranging from 55 to 60 years old, based on their birth date.
 
 
 Therefore, if you're 30 years old and decide to make a voluntary contribution to your superannuation, you might be tying up those funds for over three decades.
 
 
 Ms McCallum indicates that voluntary superannuation contributions tend to be more feasible for individuals above 45 years old, as they won't have to await fund access for too long.
 
 
 Rather than doing so, she recommends that young individuals concentrate on other important areas and depend on their employer's obligatory superannuation payments.
 
 
 "If you’re in your 20s, 30s, or possibly even into your early 40s, it’s sensible to let the super guarantee function as intended and allocate any extra cash flow to other areas, providing greater financial leeway," she explains.
 
 
 If you're looking to invest but also keep your funds accessible, consider doing so outside of your superannuation. You could choose to put the money into a managed fund instead.
 exchange-traded fund (ETF)
 instead.
 
 
 Alternatively, if you own a home with a mortgage, you might consider placing the funds into an offset or redraw account.
 
 <h4>
 How making voluntary superannuation contributions might assist you in reducing your tax burden
 </h4>
 
 You have the option to contribute "concessionally" to your super account by arranging a salary sacrifice with your employer or by directly transferring funds into your super account and then claiming a tax deduction.
 
 
 This approach may seem appealing since these contributions face a tax rate of just 15%, significantly lower compared to the 30% paid by individuals earning a typical salary in Australia.
 
 
 Therefore, as your earnings increase, contributing extra to your super becomes more appealing due to the increased tax advantage.
 
 <h4>
 Is it advisable to contribute to your superannuation when you're stepping back from work for a period?
 </h4>
 
 If you're stepping away from work due to having a child or providing care for another person, you may have concerns about your superannuation balance and whether you should make additional contributions.
 
 
 Even though you can continue adding to your super during these times, the lower income might lessen the possible tax advantages of making concessional contributions.
 
 
 If your income is less than $40,000 and you have a partner, this may apply to them as well.
 contribute to your superannuation on your behalf
 and apply for a tax refund of up to $540.
 
 
 Another approach some partners adopt is referred to as
 contribution splitting
 This includes transferring a portion of one partner’s superannuation contributions to their spouse.
 
 <h4>
 How contributing more to your superannuation can assist you in saving up for your first house.
 </h4>
 
 Although many individuals aren't able to access their superannuation until reaching their 60s, several exemptions do apply.
 
 
 The FHSS scheme enables first-time homebuyers to withdraw up to $50,000 in voluntary contributions along with their associated earnings, which can be used for a down payment.
 
 
 The scheme has
 complex rules
 Including aspects related to withdrawals, which is why it hasn’t gained much popularity. However, independent financial advisor Jacie Taylor suggests that this approach can be beneficial for individuals aiming to save for a deposit.
 
 
 "What a fantastic initiative this is, but unfortunately, it hasn’t gained enough awareness," Ms Taylor states.
 
 
 Remember that failing to buy a property after withdrawing funds from the scheme may result in tax penalties.
 
 <h4>
 You might have the option to increase your superannuation without making additional payments.
 </h4>
 
 If you can't make additional contributions, there are still various methods to ensure your superannuation is performing well for you.
 
 
 Ms. Taylor emphasizes the significance of examining how your superannuation is invested and the fees you're charged.
 
 
 Ms Taylor suggests that if you're younger, you might consider opting for higher growth investment options with your super, as these usually offer greater returns over an extended period.
 
 
 "This really matters for younger individuals," she states.
 
 
 If you're uncertain whether a voluntary super contribution strategy suits your needs, it may be beneficial to consult with a financial advisor or planner.
 
 
 The content of this article provides only general details. It would be wise to seek individualized professional guidance tailored to your specific situation.
 
</div>

Should You Top Up Your Super Now or Later? Timing Matters for Your Retirement Nest Egg

Increasing your superannuation contributions can enhance your nest egg for retirement, yet with numerous pressing expenses vying for a...

5 Clever Moves to Slash Your Tax Bill Before Saturday

DIWIDA.NEWS 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

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

お金が貯まる人はブレない！自分軸を持つ人の特徴とは

DIWIDA.NEWS 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

「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...

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

DIWIDA.NEWS 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
 
 
 ,
 
 
 YouTube
 
 
 and
 
 
 LinkedIn
 
 
 .
 


 
 
 Want to earn some extra money on the side?
 
 Take 's new online course
 
 
 How to Start a Side Hustle
 
 
 To acquire valuable insights and tactics for initiating your journey and achieving prosperity from leading side hustle professionals, sign up now. Apply the promo code EARLYBIRD to receive a 30% discount off the $97 fee (+ taxes and fees) until April 1, 2025.
 

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

5 Tax Deductions You Can Claim Without Itemizing

DIWIDA.NEWS expenses, income taxes, personal finance taxes, saving money, tax cuts

<img data-document-id="cms/api/amp/image/AA1ATJ8y" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1ATJ8y.jpg"/>

 Filing taxes can be quite challenging, and the phrase "tax deduction" often evokes images of stacks of receipts and complex computations merely for saving a small amount of money. However, here’s some positive information: you do not have to go through the process of itemizing deductions to benefit from significant tax savings and decrease your taxable income.


 Each year when handling taxes, you must decide whether to opt for the standard deduction or not.
 itemizing your deductions
 . Many of us overlook the
 standard deduction
 since it’s more convenient—and for many individuals, it currently offers a superior option.


 However, many people aren't aware that even if you don't itemize deductions, the IRS still allows you to reduce your tax liability with certain credits or adjustments.
 taxable income
 With specific "above-the-line" deductions. These act as guaranteed victories if you meet the qualifications.


 Below are five tax deductions you can still claim even if you opt for the standard deduction as do many U.S. taxpayers.

<h2>
 5 Tax Breaks Available Without Itemizing Deductions
</h2>

 These deductions, listed on Schedule 1 of IRS Form 1040, decrease your
 adjusted gross income
 , known as AGI, could result in a reduced tax liability for you.

<div class="my-8">
 <div class="SupplementaryLink">
 Learn more:
 Seeking additional tax savings? Consider these common tax credits that you shouldn't miss out on.
 </div>
</div>
<h3 id="traditional-ira">
 1. Traditional IRA contributions
</h3>

 Setting aside funds for your retirement is a wise decision that pays off both later and sooner. The growth of your IRA contributions isn't taxed until withdrawal, allowing you to postpone tax payments. Additionally, putting money into a traditional IRA might make your contribution deductible this year (in contrast, contributions to a Roth IRA use post-tax dollars, so they aren’t eligible for deduction).


 Anyone who invests funds into a
 traditional IRA
 It might be eligible for this above-the-line deduction. However, the sole limitation on claiming IRA contribution deductions happens when either you or your spouse has a retirement plan through your workplace, like a 401(k). Under those circumstances, certain income thresholds could restrict your capability to deduct these IRA contributions.

<div class="editorial-insight-box">
 
 
 Tax tip
 
 
 
 You have up to the tax filing deadline on April 15, 2025, to make contributions to a traditional IRA for the year 2024. This can be one of the limited methods available to decrease your tax liability once the year has ended.
 
</div>

 To express it differently, if you
 
 don’t
 
 If you have a retirement plan through your employer (and your spouse does not), there are no income restrictions for deducting your IRA contributions.


 In 2024 and 2025, you're permitted to contribute up to $7,000 annually ($8,000 if you're aged 50 or above). If your earnings fall under the phaseout threshold, you will likely receive a tax deduction equivalent to the total contribution amount.


 The following are the income caps for claiming deductions on contributions to a traditional IRA when you (or your spouse) participate in an employer-sponsored retirement plan, applicable for the years 2024 and 2025. (Refer to the IRS guidelines for computing these amounts.)
 adjusted gross income (AGI) modified for traditional IRAs (MAGI)
 .)

<h4>
 Income limits for deducting contributions to a Traditional IRA when you're also covered by a workplace retirement plan.
</h4>
<table class="Table Table--text Table--stripedOdd Table--spacing0 align-middle">
 <tr>
 <th>
 Filing status
 </th>
 <th>
 Adjusted gross income for 2024 taxes (modified version)
 </th>
 <th class="has-text-align-left">
 Adjusted gross income for 2025 after modifications
 </th>
 <th class="has-text-align-left">
 Deduction amount
 </th>
 </tr>
 <tr>
 <td>
 Unmarried, as the head of a household, or married but filing separately (did not reside with your spouse throughout the year)
 </td>
 <td>
 Up to $77,000
 </td>
 <td class="has-text-align-left">
 Up to $79,000
 </td>
 <td class="has-text-align-left">
 Full deduction
 </td>
 </tr>
 <tr>
 <td>
 $77,000 to $87,000
 </td>
 <td class="has-text-align-left">
 $79,000 to $89,000
 </td>
 <td class="has-text-align-left">
 Partial deduction
 </td>
 </tr>
 <tr>
 <td>
 $87,000+
 </td>
 <td class="has-text-align-left">
 $89,000+
 </td>
 <td class="has-text-align-left">
 No deduction
 </td>
 </tr>
 <tr>
 <td>
 Filing as married couples where both are covered under a workplace retirement plan
 </td>
 <td>
 Up to $123,000
 </td>
 <td class="has-text-align-left">
 Up to $126,000
 </td>
 <td class="has-text-align-left">
 Full deduction
 </td>
 </tr>
 <tr>
 <td>
 $123,000 to $143,000
 </td>
 <td class="has-text-align-left">
 $126,000 to $146,000
 </td>
 <td class="has-text-align-left">
 Partial deduction
 </td>
 </tr>
 <tr>
 <td>
 $143,000+
 </td>
 <td class="has-text-align-left">
 $146,000+
 </td>
 <td class="has-text-align-left">
 No deduction
 </td>
 </tr>
 <tr>
 <td>
 Filing as married couples where both partners are part of an employment benefit plan
 </td>
 <td>
 Up to $230,000
 </td>
 <td class="has-text-align-left">
 Up to $236,000
 </td>
 <td class="has-text-align-left">
 Full deduction
 </td>
 </tr>
 <tr>
 <td>
 $230,000 to $240,000
 </td>
 <td class="has-text-align-left">
 $236,000 to $246,000
 </td>
 <td class="has-text-align-left">
 Partial deduction
 </td>
 </tr>
 <tr>
 <td>
 $240,000+
 </td>
 <td class="has-text-align-left">
 $246,000+
 </td>
 <td class="has-text-align-left">
 No deduction
 </td>
 </tr>
 <tr>
 <td>
 Filing as married but living apart from one’s spouse for some part of the year
 </td>
 <td>
 Up to $10,000
 </td>
 <td class="has-text-align-left">
 Up to $10,000
 </td>
 <td class="has-text-align-left">
 Partial deduction
 </td>
 </tr>
 <tr>
 <td>
 $10,000+
 </td>
 <td class="has-text-align-left">
 $10,000+
 </td>
 <td class="has-text-align-left">
 No deduction
 </td>
 </tr>
 <tr>
 <td>
 Source: IRS
 </td>
 </tr>
</table>

 Keep in mind that, should you (along with your spouse if married) be
 
 not
 
 If you're covered by an employer retirement plan, your contributions remain fully tax-deductible irrespective of how much you earn.

<div class="my-8">
 <div class="SupplementaryLink">
 Learn more:
 In both 2024 and 2025, we can review the respective tax brackets along with the prevailing federal income tax rates.
 </div>
</div>
<h3>
 2. HSA contributions
</h3>

 If you have a high-deductible health plan (HDHP), contributing to a health savings account can help you save both immediately and down the road. Contributions to an HSA are tax-deducatable, your funds grow without being taxed until withdrawn, and when used for eligible medical costs, these withdrawals remain untaxed.


 The allowable deductions for Health Savings Account (HSA) contributions in 2024 (which would apply to tax filings made in 2025) are as follows:

<ul>
 <li>
 Up to $4,150 for individual recipients
 </li>
 <li>
 As much as $8,300 for family units
 </li>
 <li>
 Individuals aged 55 and above can contribute an additional $1,000.
 </li>
</ul>
<div class="editorial-insight-box">
 
 
 Tax tip
 
 
 
 You have until the April 15, 2025, tax filing deadline to make contributions to your Health Savings Account (HSA) for the 2024 tax year. This is among the rare methods available to decrease your taxes even after the year has concluded.
 
</div>

 The allowable deductions for Health Savings Account (HSA) contributions in 2025 (applicable to tax filings made in 2026) are as follows:

<ul>
 <li>
 Up to $4,300 for individual recipients
 </li>
 <li>
 Up to $8,550 for family units
 </li>
 <li>
 Individuals aged 55 and above can contribute an additional $1,000.
 </li>
</ul>

 In order to make HSA contributions, you need to be part of a qualifying HDHP and should not have coverage from another group plan.

<div class="editorial-insight-box">
 
 
 Tax tip
 
 
 
 Should your employer make contributions to your Health Savings Account, those funds will count towards your yearly contribution cap.
 
</div>
<h3 id="student-loan-interest">
 3. Tax deduction for student loan interest
</h3>

 While student loan repayments might hurt, there's a bright side: you can claim a deduction for up to $2,500 in interest paid annually on both federal and private student loans.


 In order to be eligible for this complete deduction, you have to:

<ul>
 <li>
 have covered interest payments on a student loan for you, your spouse, or a dependant.
 </li>
 <li>
 have removed the loan to cover eligible educational costs.
 </li>
 <li>
 have a modified adjusted gross income (or MAGI) below the limits (see below).
 </li>
 <li>
 Should not be considered as another person's dependent.
 </li>
</ul>

 Below are the income thresholds for claiming the student loan interest deduction when filing your 2024 taxes in 2025 (refer to the IRS guidelines for more details).
 determining Modified Adjusted Gross Income for the student loan interest deduction
 ):

<h4>
 Income thresholds for deducting student loan interest in 2024
</h4>
<table class="Table Table--stripedOdd Table--spacing1 align-middle">
 <tr>
 <th>
 Filing status
 </th>
 <th>
 Adjusted gross income for 2024 after modifications
 </th>
 <th>
 Deduction amount
 </th>
 </tr>
 <tr>
 <td>
 
 Unmarried, individual filer, head of household, or eligible widow(er)
 
 </td>
 <td>
 
 $0 to $80,000
 
 </td>
 <td>
 
 Full deduction
 
 </td>
 </tr>
 <tr>
 <td>
 
 $80,000 to $95,000
 
 </td>
 <td>
 
 Partial deduction
 
 </td>
 </tr>
 <tr>
 <td>
 
 $95,000+
 
 </td>
 <td>
 
 No deduction
 
 </td>
 </tr>
 <tr>
 <td>
 
 Married filing jointly
 
 </td>
 <td>
 
 $0 to $165,000
 
 </td>
 <td>
 
 Full deduction
 
 </td>
 </tr>
 <tr>
 <td>
 
 $165,000 to $195,000
 
 </td>
 <td>
 
 Partial deduction
 
 </td>
 </tr>
 <tr>
 <td>
 
 $195,000 or more
 
 </td>
 <td>
 
 No deduction
 
 </td>
 </tr>
 <tr>
 <td>
 
 Married filing separately
 
 </td>
 <td>
 
 N/A
 
 </td>
 <td>
 
 No deduction
 
 </td>
 </tr>
 <tr>
 <td>
 Source:
 IRS
 .
 </td>
 </tr>
</table>
<h3 id="educator-expense">
 4. Educator expense deduction
</h3>

 It's quite typical for teachers to spend their own funds on classroom materials. Luckily, qualifying educators may claim a deduction for at least part of these expenses.


 Teachers, instructors, guidance counselors, and school principals who work at least 900 hours annually are eligible for this tax reduction, which can be as high as $300 per person (or $600 for married couples where both partners are involved in education).


 This
 educator expense deduction
 covers job-associated costs like educational tech, textbooks, supplies, training programs, and other essential items.

<div class="editorial-insight-box">
 
 
 Need an advisor?
 
 
 
 Looking for professional advice on handling your finances?
 
 
 ’s AdvisorMatch
 I can link you with a Certified Financial Planner™ who will assist you in reaching your financial objectives.
 
</div>
<h3 id="self-employment">
 5. Self-employment deductions
</h3>

 What about freelancers, gig workers, and entrepreneurs? If you're self-employed, there are multiple
 business tax deductions
 To assist in reducing your taxable income on Schedule C.


 However, when you're completing your tax return and you input your net business earnings from Schedule C into it,
 Form 1040
 , you might also be eligible for certain above-the-line deductions (which should be entered on Form 1040’s Schedule 1).


 The three key points are:

<ul>
 <li>
 The self-employment tax deduction works as follows: If you're self-employed, you must cover both the employer and employee shares of Social Security and Medicare taxes. However, half of this tax amount can be deducted.
 </li>
 <li>
 Contributions to your SEP IRA, SIMPLE IRA, or solo 401(k) plans typically offer tax deductions.
 </li>
 <li>
 If you pay for health insurance but do not qualify for coverage through your employer, you have the option to deduct 100% of the premium costs for yourself, your spouse, or your dependents.
 </li>
</ul>
<h2 id="bottom-line">
 Bottom line
</h2>

 Paying taxes isn't enjoyable, yet reducing expenses can be rewarding. You don't require complex itemized deductions to lower your tax liability.Above-the-line deductions are accessible regardless of whether you choose the standard deduction or opt for itemizing your deductions, simplifying the process of retaining more of your well-deserved income.


 These deductions can accumulate rapidly, be it for repaying student loans, saving for retirement, or handling healthcare costs. Spending a short time verifying your eligibility might result in savings of hundreds or even thousands of dollars in taxes.

5 Tax Deductions You Can Claim Without Itemizing

Filing taxes can be quite challenging, and the phrase "tax deduction" often evokes images of stacks of receipts and complex com...

Should You Top Up Your Super Now or Later? Timing Matters for Your Retirement Nest Egg

DIWIDA.NEWS investing, money, personal finance retirement, personal finance saving spending, saving money

<img data-document-id="cms/api/amp/image/AA1ylJah" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1ylJah.jpg"/>
<div>
 
 Increasing your superannuation contributions can enhance your nest egg for retirement, yet with numerous pressing financial obligations, how can you determine the optimal moment to make additional payments?
 
 
 Based on ASIC's Moneysmart, someone who starts at age 30 and contributes an additional $20 each week might find themselves $50,000 richer upon retiring. Additionally, they may benefit from tax reductions due to extra superannuation payments.
 
 
 However, coming up with funds to save can be challenging, particularly within today’s financial climate, and boosting contributions to your superannuation may not always be the best strategy.
 
 
 We consulted with two specialists to delve into when this approach proves beneficial and assist you in grasping both the advantages and disadvantages involved.
 
 <h4>
 First, cover the basics
 </h4>
 
 Kate McCallum is a financial advisor and co-writer of The Joy of Money.
 
 
 According to Ms McCallum, if you find yourself in your 20s, 30s, or 40s, you may encounter significant financial pressures. These could involve paying rent, accumulating savings for homeownership, managing mortgage debts, covering educational fees, and handling everyday living costs.
 
 
 If you carry consumer debts like credit card balances or personal loans, it’s more important to pay these off before increasing your Superannuation contributions.
 
 
 This is due to the fact that the interest rates on these items are elevated, and clearing them offers a surefire way to earn returns.
 
 
 It's equally advisable to possess an
 emergency fund
 — preferably sufficient to cover a minimum of three months' worth of living costs.
 
 
 Aside from providing mental tranquility, this can also prevent the necessity of taking on debt for unforeseen costs.
 
 <h4>
 Why young individuals ought to consider the implications of making additional contributions to their superannuation.
 </h4>
 
 Ms McCallum emphasizes the importance of assessing your complete financial circumstances and objectives prior to thinking about increasing your superannuation contributions.
 
 
 Significantly, the majority of individuals cannot withdraw their superannuation until they attain their preservation age, typically ranging from 55 to 60 years old, based on their birth date.
 
 
 Therefore, if you're 30 years old and decide to make a voluntary contribution to your superannuation, you might be tying up those funds for over three decades.
 
 
 Ms McCallum indicates that voluntary superannuation contributions tend to be more feasible for individuals above 45 years old, since they won't have to wait as long before accessing these funds.
 
 
 Rather than doing so, she recommends that young individuals concentrate on different priorities and depend on the compulsory superannuation guarantee payments made by their employers.
 
 
 "If you're in your 20s, 30s, or possibly even early 40s, it’s wise to let the super guarantee function as intended and allocate extra funds to other areas for greater financial adaptability," she explains.
 
 
 If you want to invest, while still having access to your money, you can always do it outside of your superannuation. For example, you might decide to use the money to invest in a managed fund or
 exchange-traded fund (ETF)
 instead.
 
 
 Alternatively, if you possess a mortgage, you might opt to retain the funds within an offset or redraw account instead.
 
 <h4>
 How making voluntary superannuation contributions might assist you in reducing your tax liability
 </h4>
 
 You have the option to contribute "concessionally" to your super account by arranging a salary sacrifice with your employer or directly transferring funds into your super account and then claiming a tax deduction.
 
 
 This approach may seem appealing since these contributions are taxed at just 15%, significantly lower than the 30% paid by individuals earning an average salary in Australia.
 
 
 Therefore, as your earnings increase, contributing extra to your super becomes more appealing because the tax advantage will be greater.
 
 <h4>
 Is it advisable to contribute to your superannuation fund when you're temporarily stepping back from work?
 </h4>
 
 If you're stepping back from work due to having a child or providing care for another person, you may be concerned about your superannuation balance and considering whether you should make additional contributions.
 
 
 Even though you can continue adding to your superannuation during these times, you might be earning less money, potentially decreasing the possible tax advantages of making concessional contributions.
 
 
 If your income is below $40,000 and you have a partner, the following may apply:
 contribute to your superannuation on your behalf
 and apply for a tax refund of up to $540.
 
 
 Another approach some partners adopt is referred to as
 contribution splitting
 This includes transferring part of one partner’s superannuation contributions to their spouse.
 
 <h4>
 How contributing more to your superannuation can assist you in saving up for your first house.
 </h4>
 
 Although many individuals aren't able to access their superannuation until they reach their 60s, several exemptions do apply.
 
 
 Under the First Home Super Saver (FHSS) program, first-time homebuyers can withdraw up to $50,000 in voluntary contributions along with their associated earnings to use toward saving for a down payment.
 
 
 The scheme has
 complex rules
 Including aspects related to withdrawals, which is why it hasn’t gained much popularity. However, independent financial advisor Jacie Taylor suggests that this approach can be beneficial for individuals aiming to save for a home deposit.
 
 
 "What a fantastic initiative this is, but unfortunately, it hasn’t gained enough awareness among the public," Ms Taylor remarks.
 
 
 Remember that failing to buy a property after withdrawing funds from the scheme may result in tax penalties.
 
 <h4>
 You might have the option to increase your superannuation without making additional payments.
 </h4>
 
 If you can't make additional contributions, there are still various methods to ensure your superannuation is working efficiently for you.
 
 
 Ms Taylor emphasizes the significance of examining how your superannuation is invested and the fees you're charged.
 
 
 Ms Taylor suggests that if you're younger, you might consider opting for higher growth investment options with your super, since these generally offer better returns over an extended period.
 
 
 "This really matters for younger individuals," she states.
 
 
 If you're uncertain whether a voluntary super contribution strategy suits your needs, it may be beneficial to consult with a financial advisor or planner.
 
 
 
 The content of this article provides only general details. It would be wise to seek specialized professional guidance tailored to your specific situation.
 
 
</div>

Should You Top Up Your Super Now or Later? Timing Matters for Your Retirement Nest Egg

Increasing your superannuation contributions can enhance your nest egg for retirement, yet with numerous pressing financial obligation...

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

DIWIDA.NEWS 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 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 specifics on this page might have been modified or altered after the initial publishing date. Please check out our article for more details.
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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.

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

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

DIWIDA.NEWS money, money management, personal finance, saving money, savings accounts

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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.


 
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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.
 

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

Locate a Competent Financial Adviser Finding a financial advisor It doesn’t have to be complicated. With SmartAsset’s free tool, ...

From Zero to Millionaire by 35: My Journey to Financial Freedom on a Shoestring Budget

DIWIDA.NEWS money, money management, personal finance retirement, saving money, wealth

<img data-document-id="cms/api/amp/image/BB1lIcoR" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1lIcoR.jpg"/>

 What level of income would you need to achieve financial security?


 DIWIDA's Global Financial Security Survey: Your Money
 conducted by SurveyMonkey
 Recently posed this very question globally, and here's what was shared:
 disclosed insights into how individuals across various nations view their financial situations
 .


 Ask the same to
 Steve Adcock
 , and he might dispute the assumption.


 "The concept of financial security isn’t tied to how much you earn,” explains the 42-year-old to DIWIDAMake It. “For me, financial security means having enough time.”


 Adcock states that he achieved financial stability in 2016 at the age of 35 after retiring from his corporate position with approximately $900,000. Subsequent growth in the stock market increased this amount to more than $1 million.


 He explains that security wasn’t derived from how much money was saved, but rather from the liberty it provided—being able to lead his life as desired without depending on a regular income. After his spouse retired the next year, they embarked on an adventure, spending three years traversing the nation in their Airstream trailer.


 I definitely experienced a more modest lifestyle back then. Our expenses were significantly lower compared to what they are today," explains Adcock. "It was actually the initial period during which I felt truly economically stable, implying that we didn’t need to continue working indefinitely.

<h4>
 Securing your building by saving and investing
</h4>

 To be precise, a better salary certainly aids in attaining financial stability—but it isn’t everything, according to Adcock.


 He states, 'Even with an annual income of $200,000, if your expenses amount to $180,000 per year, financial security remains elusive.'


 Back in 2014, when Adcock along with his spouse was earning an aggregate yearly salary of $220,000, he mentions that they managed to save approximately 70% of their total earnings. They then channeled these savings into robust investment strategies for both retirement funds and brokerage accounts.


 He remarks, “I’d say our savings rate bordered on being extremely high.” Nevertheless, he adds, “I despised what I was doing. I just wanted to get out of there as quickly as I could.”


 If your goal is to achieve financial security, you don’t necessarily have to reach such an elevated savings target. At the very least, begin by
 building an emergency fund
 A significant portion of Americans —
 44%, according to Bankrate
 —they mentioned they were unable to cover a $1,000 emergency using their savings.


 As Adcock points out, this is exactly what financial insecurity looks like.


 Money experts typically suggest setting aside funds enough to cover three to six months of living costs for unexpected situations. After achieving this, consider increasing the duration for which your savings could support you.


 "As you reach the point where you can envision living for one year, then five years, and eventually ten years — that’s when the real excitement begins," according to Adcock.


 Viewing financial stability in this manner enables you to see money not merely as something to amass, but rather as a resource for supporting the aspects of your life that matter most to you. An individual who has saved up funds equivalent to one year’s living costs might choose to embark on a break from their regular routine to work on a personal endeavor they're passionate about. Conversely, someone who has amassed savings covering ten years’ expenditures may feel empowered to venture into launching the entrepreneurial venture they have long envisioned.


 For individuals aiming for early retirement, the main objective is to create an investment portfolio substantial enough to sustain withdrawals indefinitely.


 Even for someone like Adcock, who continues to earn an income from ventures such as
 his website
 , newsletter and latest book suggest that attaining the highest tier of financial stability typically involves having the option to choose when and how one works, instead of ceasing work altogether.


 At present, I’d apply the term 'retired' somewhat flexibly. While we may not fully align with traditional retirement, we undeniably enjoy financial independence. Our finances are completely secured," he explains. "There’s no pressure for us to engage in specific activities. However, it feels great to pursue ventures that appear intriguing and observe where they lead.


 Correction: An earlier iteration of this story incorrectly stated the name of Adcock's Airstream trailer.


 
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 DIWIDA's latest online course titled "How to Generate Passive Income Online"
 To discover popular methods for generating passive income, along with advice to begin your journey and true accounts of achievements. Sign up now and receive a 50% reduction using the promo code EARLYBIRD.


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<img data-document-id="cms/api/amp/video/BB1lsM8m" data-reference="video"/>

From Zero to Millionaire by 35: My Journey to Financial Freedom on a Shoestring Budget

What level of income would you need to achieve financial security? DIWIDA's Global Financial Security Survey: Your Money conducte...