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Yahoo
5 days ago
- Business
- Yahoo
5 Things the Middle Class Won't Be Able To Afford After 4 Years of Tariffs
The Trump administration is implementing tariffs on virtually every country from which the United States imports items. This shift means consumers will be spending a lot more money on everyday goods. By the end of Trump's term, many things could become unaffordable to the middle class. Be Aware: Find Out: It will be helpful for the middle class to understand what's coming, so they can better prepare and adjust for it. To that end, GOBankingRates interviewed a few experts for insight. There's a reason this one might not kick in immediately. Appliances aren't items people need to buy every day, every month or even every year. By the time Trump's term ends, the middle class may realize that appliances have simply become unaffordable. 'Appliances like refrigerators, washers and dryers could jump in price,' said Chris Heerlein, CEO of REAP Financial. 'Many parts are imported, so even if the final product is assembled in the U.S., tariffs on components raise the total cost.' So, while the middle class may not feel the immediate impact, and indeed they may still be able to buy their next washer, dryer or refrigerator in just a few years, they will no longer be 'affordable' items. The middle class will now have to save up, pull money out of investments, or buy used. That's not something they're used to, and we may see a backlash as a result. Read Next: Electronics are a lot like appliances. Again, they're often not an absolute necessity. They're not daily items. Most people can function with their smartphones or laptops for several years. And because most electronics come from outside the U.S., the financial hit will be a big one on these already high-priced items. 'Electronics like smartphones and laptops are also at risk. These aren't luxury items anymore; they're tools for work and school,' Heerlein said. 'I've worked with families who had to delay school tech upgrades because the cost pushed them outside of what they could pay upfront. If tariffs continue, these kinds of purchases will move from essential to unaffordable for many middle-class households.' If they're already unaffordable, tariffs on these items may affect the middle class a few years from now in a big way. Inflation has already seen a steep incline in the price of vehicles, even used ones. What once was $20,000 is now $30,000, and what once was $30,000 is now $50,000. It's getting to the point where younger people are moving into cities and avoiding purchasing a vehicle altogether. And that was before the tariffs. Now, tariffs on imported cars are going to become pricier than ever. Even domestic cars will see price hikes because commodities like steel and aluminum, the materials used to make the cars, are going to become more expensive to import. 'The combination of steel and aluminum tariffs, as well as the supply chains that rely heavily on outsourcing, will potentially make the purchase of new automobiles cost-prohibitive for many Americans. It is likely that many Americans will hold onto their vehicles longer or purchase used cars as an alternative,' explained Dr. Brandon Parsons, an economist at Pepperdine Graziadio Business School. As a result of this enormous shift, the American automobile industry may falter significantly with fewer domestic consumers and foreign markets uninterested in buying American. Much like automobiles, new homes are going to become much more expensive to build. Wood, metal and other materials will be cost-prohibitive, which means housing prices are going to skyrocket once again. 'The cost of buying a new home will go up since many of the products that go into new homes, such as metal and wood, are exposed to tariffs,' Parsons noted. The housing market is already ridiculously overpriced and unaffordable to even the wealthiest middle-class families. The American Dream that imagines homeownership as essential is likely going to be dead within a decade if things don't turn around. Seann Malloy, founder and managing partner at Malloy Law Offices, reminds us there are smaller, everyday items that will quickly become unaffordable to the middle class, as well. The middle class has gotten to the point in life where they can enjoy the finer things in life, like good wine, coffee, seafood, and even the finest olive oil. Yes, those items may be a bit more expensive, but now they're within reach for the middle class. But Malloy said that won't last. 'Taxing imports of things like seafood and coffee could mean significantly higher grocery bills. According to the Center for American Progress, middle-income households are set to lose between $2,500 to $3,900 a year,' he explained. 'Stock up on non-perishables and explore local farmers' markets to mitigate costs.' Is there a way out? Yes, of course there is. Middle-class families could start living well below their means and prepare for an economy that won't allow for the usual items to be affordable anymore. You may need to buy a less expensive, smaller home. Perhaps you'll need to cut corners in luxury items, and you may even have to buy a used appliance or a refurbished computer. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on 5 Things the Middle Class Won't Be Able To Afford After 4 Years of Tariffs
Yahoo
12-06-2025
- Business
- Yahoo
3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary)
Retirement isn't always the final chapter — sometimes it's just a pause. One survey conducted by T. Rowe Price, found that millions of retirees have returned to work in search of financial and emotional benefits. Whether you miss the structure, the sense of purpose, or want to boost your bank account, more people are choosing to 'unretire' and reenter the workforce. And it turns out, the financial upsides go far beyond a steady paycheck. Explore More: Read Next: 'I've seen so many compelling benefits from unretiring in my work with clients — and experienced them myself,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. 'The money aspect goes way deeper than just getting a paycheck.' Here are some other surprising benefits of unretiring that might make you rethink staying on the sidelines. Plus discover several signs you should unretire this year. Chris Heerlein, CEO of REAP Financial, said working part-time or consulting can often provide access to employer-sponsored health insurance, reducing the need to purchase expensive private plans or rely on Medicare. Additionally, staying physically and mentally active is linked to lower healthcare expenses, as retirees who remain engaged in work tend to experience fewer health problems, keeping their overall costs lower. 'Let me tell you about my client Sarah. She went back to consulting work after two years of retirement and saw her healthcare costs drop by [over] $400 per month,' said Lokenauth. Just by staying mentally engaged and physically active at work, he said she needed fewer medications and doctor visits. And she's not alone. He's consistently noticed that working retirees tend to have lower medical expenses. Check Out: The tax benefits are pretty significant, too. When Lokenauth unretired, he was able to keep contributing to his Roth IRA since he had earned income again. 'Plus, delaying Social Security meant my monthly benefits grew about 8% each year,' he added. The compound effect really adds up. Working just a few extra years can open up more tax-efficient strategies that aren't available once you're fully retired — and those perks can stretch your savings a lot further down the line. By earning income, retirees can reduce the amount they need to withdraw from their savings, allowing those funds to last longer. This extended longevity of retirement assets, according to Heerlein, can make a huge difference over time, especially as longer lifespans and unexpected medical expenses increase the financial burden on retirees. 'The ability to contribute even a small amount to savings while still working part-time can help balance finances and provide peace of mind,' he said. Beyond the financial benefits, Heerlein noted that staying engaged in work can have emotional and social advantages that reduce potential future costs. Remaining active in a work environment helps reduce isolation and contributes to a better overall mental health, which can lead to fewer medical issues and reduced spending on healthcare. 'Staying engaged in work is not only financially beneficial but also supports a healthier, more fulfilling retirement,' Heerlein added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Hybrid Vehicles To Stay Away From in Retirement Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on 3 Surprising Financial Benefits of Unretiring (It's More Than Just a Salary) Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
11-06-2025
- Business
- Yahoo
4 Non-Emergencies Where a Personal Loan Makes Sense
Not every financial need is a full-blown emergency. Sometimes, life just throws you a curveball — or an opportunity — and you need a little extra cash to handle it smoothly. Read More: Find Out: That's where a personal loan can come in handy. From covering big life moments to tidying up your finances — here are some non-emergencies where taking out a personal loan might actually make a lot of sense. According to Lending Tree, Americans have an absolute mountain of credit card debt — $1.18 trillion, to be exact. Chris Heerlein, CEO of REAP Financial, noted that a personal loan can make sense when used to consolidate high-interest credit card debt. He worked with a client carrying multiple cards with rates above 20%. 'We used a personal loan with a lower fixed rate to wipe that out,' said Heerlien. It immediately reduced their monthly interest burden and simplified their payments into one. It wasn't an emergency, but it gave them breathing room and helped improve their credit score over time. Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, similarly agreed. He said that among the most common overlooked examples is taking out a personal loan to pay off higher-interest credit card debt. What's frequently overlooked is that the psychological effect of going from multiple high-interest revolving uses of debt to a single fixed monthly payment can be transformative. 'It's not just a loan, you're not just refinancing — you're resetting your theoretical money model,' said Shirshikov. Discover Next: According to Shirshikov, most traditional banks will not issue a business loan for a $5,000 idea, but a personal loan can be a bridge within reach. He's personally seen new entrepreneurs borrow small sums to purchase equipment or inventory for their Amazon FBA (Fulfillment by Amazon), mobile detailing business or Etsy storefront. 'The trick is to see the loan as a short-term shot in the arm, not a crutch,' he said. Another example? Medical procedures that are not emergencies but are life-altering. Think dental implants or fertility services. These aren't luxuries; they're delayed necessities that don't easily come under insurance coverage. Personal loans, Shirshikov explained, especially those with clearly defined repayment terms, can give people the chance to take charge of their health without capsizing their financial lives. Even spending money on professional development — like an executive master of business administration (M.B.A.) class, a coding boot camp, or a specialized certificate — may be reasonable. 'You're borrowing against your future earning potential, essentially, and when the return on investment (ROI) is clear, the math usually adds up,' said Shirshikov. More From GOBankingRates 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 4 Non-Emergencies Where a Personal Loan Makes Sense Sign in to access your portfolio
Yahoo
09-06-2025
- Business
- Yahoo
Waiting To Budget Until You're Debt-Free? That's Not a Strategy — It's Denial
If you've ever told yourself, 'I'll start budgeting once I'm out of debt,' you're not alone — and you're definitely not off the hook. Here's the thing: Business Insider reports that the average debt in America is over $105,000 across mortgages, auto loans, student loans, and credit cards. Waiting to get your financial life in order after paying off debt might sound reasonable, but it's kind of like saying you'll start eating healthy after you lose weight. See the problem? Consider This: Discover More: 'I made this exact mistake in my early 20s,' said Andrew Lokenauth, money expert and owner of BeFluentInFinance. He kept telling himself there was no point in budgeting when all his money was going to debt payments anyway. 'Looking back, it was pure avoidance behavior — I didn't want to face the reality of my financial situation,' he said. Budgeting isn't just for people with extra cash — it's a tool that can actually help you get out of debt faster. Here's why avoiding it is less of a plan and more of a trap. Also learn about some ways you can tackle your budget and manage your debt. Delaying budgeting until you're debt-free means missing out on essential financial habits, said Chris Heerlein, CEO of REAP Financial. Budgeting helps you gain control over your money, track your expenses and save for the future, even while you're paying off debt. By budgeting now, you can develop the discipline needed to prioritize debt repayment while also making room for savings and emergencies. 'Without a budget, it's easy to overspend and lose focus on financial goals,' Heerlein remarked. Lokenauth similarly agreed, adding, 'Without a budget, these money leaks just keep draining your accounts.' Find Out: According to Heerlein, by organizing your finances and allocating a portion of your income specifically for debt, you'll pay it off faster. Without a budget, you might end up putting off debt payments or making only minimal progress, leading to more stress and delayed financial freedom. By budgeting from the start, you ensure that every dollar works toward your goal of becoming debt-free, rather than just covering immediate expenses. 'An emergency fund is crucial to avoid setbacks like unexpected medical bills or car repairs, which can derail your financial progress,' said Heerlein. Starting a budget now ensures that once your debt is paid off, you're financially prepared for whatever comes next, giving you stability and confidence in your future financial decisions. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 6 Big Shakeups Coming to Social Security in 2025 Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Waiting To Budget Until You're Debt-Free? That's Not a Strategy — It's Denial Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
9 Travel Items Retirees Should Always Pack on Vacation To Save Money
When it comes to travel, retirees have a major advantage: Time. But even with flexible schedules and senior discounts, vacation costs can still add up fast. Business Insider is reporting that travel is mainly for the rich now, but the good news? A little smart packing can go a long way in keeping more money in your pocket. Explore More: For You: 'Travel costs often creep up in small, predictable places,' said Andrew Gosselin, certified public accountant (CPA), personal finance expert and senior contributor at Save My Cent. 'Packing a few money-saving essentials keeps those costs under control and lets retirees focus on the experience rather than the bill.' Whether you're jetting off to Europe or road-tripping through the U.S., these must-pack items can help you save on everything from snacks to ATM fees — without sacrificing any fun. According to Gosselin, a printed copy of a photo ID or a Medicare card turns into lower fares at ticket counters, smaller hotel bills at check-in and reduced entry fees at museums. You can slip the copy inside your passport cover so it is ready every time a clerk asks for verification. Trending Now: Chris Heerlein, CEO of REAP Financial, noted that one important item retirees should bring when traveling is a high-quality, reusable water bottle. Bottled water in tourist spots, airports or hotels is often overpriced, and staying hydrated while avoiding these additional costs can make a significant difference over time. This is especially vital for retirees who may need to stay on top of medications. Gosselin agreed that airport kiosks sell water at several times the supermarket price. Filling a fold-flat bottle after security and topping it up at cafés or public fountains during the day can keep your budget intact. Nuts, granola bars and a sleeve of instant oatmeal weigh almost nothing yet replace overpriced pastries and minibar treats that are often unhealthy choices for retirees. Gosselin recommended a handful of resealable bags can handle leftovers from restaurant meals and turn them into tomorrow's lunch. 'Prescription refills abroad can be difficult and expensive,' said Gosselin. For this reason, you should pack the full course plus a small kit that includes pain relievers, antacids and allergy tablets. As a retiree, it's likely you'll have scheduled medications, so keep in mind that a familiar remedy on hand prevents a costly hunt for a tourist pharmacy. Older hotels often provide a single outlet, said Gosselin. An adapter matched with a short power bar can charge your phone, camera and e-reader at the same time. It's especially helpful for retirees who may travel with medical devices, hearing aid chargers or other essentials that need daily power. Buying the same gear in a tourist district can cost three or four times more than packing it from home. Gosselin observed that a printed policy summary can sit in a slim folder alongside photocopies of credit cards and emergency contact numbers, while digital versions live in an encrypted app. Quick access to both formats saves time and money if a flight cancels or a wallet goes missing. Having physical copies offers retirees peace of mind in case of tech issues or limited phone access while traveling. This is a big one, according to Gosselin. Downloading maps and a currency converter before departure removes the need for expensive data roaming. A banking app lets you watch balances in real time and spot any unexpected charges. For retirees on a fixed income, these tools help avoid surprise fees and make it easier to stick to a travel budget. This is a vital pack for retirees looking to travel. Gosselin explained that standard cards often add a fee of 2 or 3% to every international purchase. A fee-free card eliminates that extra cost. For this reason, carry a spare debit card for ATM withdrawals from reputable banks and skip the poor rates at airport exchange booths. These small savings can add up over the course of a trip, helping retirees stretch a fixed retirement budget further. Weather can change quickly, so a breathable rain jacket, a light sweater and trousers that convert to shorts adapt to most climates and reduce the chance of buying expensive emergency clothing. 'A travel-size packet of laundry soap allows quick sink washes and lowers hotel laundry bills,' said Gosselin. Packing smart and light means less strain on the body for retirees and fewer unexpected expenses during long trips. A suitcase that includes these nine items does more than protect a travel budget; it adds a sense of readiness that lets each day unfold with fewer surprises. Small preparations create room in the itinerary and the wallet for unplanned highlights, which Gosselin said is ultimately the reason to travel in the first place. For retirees, that peace of mind makes it easier to focus on enjoying the journey–not troubleshooting it. More From GOBankingRates Warren Buffett: 10 Things Poor People Waste Money On I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on 9 Travel Items Retirees Should Always Pack on Vacation To Save Money
