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Yahoo
a day ago
- Business
- Yahoo
4 Secrets of the Truly Wealthy, According to Dave Ramsey
One of Dave Ramsey's most consistent pieces of financial advice is that wealth-building isn't necessarily tied to how much money you make, but rather how you manage what you have. Many people assume that earning a higher income automatically leads to wealth, but Ramsey points out that a disciplined approach to spending and saving is far more important. Find Out: Read Next: Truly wealthy people live below their means and when they do spend money, they don't advertise it. Essentially, saving consistently is more important than the size of your paycheck or what you splurge on. Known for his no-nonsense approach to personal finance, Ramsey has helped millions of people get out of debt and take control of their financial futures. But what separates those who simply earn a good living from the truly wealthy? According to Ramsey, 'When you quit worrying about what people think and you're actually living life for you and your family — that causes you to make completely different purchases and live a completely different lifestyle.' Here are key principles that truly wealthy people understand and practice consistently. The wealthy don't leave their financial futures to chance. They create a plan, stick to it and regularly review it, which doesn't leave a lot of wiggle room for extravagant purchases like designer clothing. Think about some of the billionaires you see in the news — many aren't dressing like a million bucks even though they have more than a billion bucks. Ramsey would recommend taking baby steps toward building an emergency fund, paying off debt or investing for retirement well before you spend thousands of dollars on pants or shoes. The truly wealthy know where their money is going each month and it's not hanging in their closet. For You: Ramsey is a strong advocate for long-term investing and wealth-building strategies. However, once someone has grown their wealth to be in a place where they are considered rich, they tend not to advertise how much they have or are spending. Some of the most lavish and luxurious expenses can include trips the wealthy take, but the truly wealthy don't let you know about those. Ramsey said, 'They enjoy nice vacations but they seldom post them for you to see on Instagram because they didn't take you on vacation. They wanted to go on vacation.' Generosity is a hallmark of the truly wealthy, and giving often brings even more fulfillment than financial success. However, that doesn't mean they spend everything they can afford to during the holiday season. Ramsey noted, ' The Christmas presents around the tree are very reasonable,' when referring to what the truly wealthy spend on presents. Showing people you care or being generous doesn't necessarily come with an expensive price tag. When it comes to giving to your children, generational wealth may be more the goal than how many presents are under the tree. True wealth comes from a long-term perspective and avoiding debt, which means big expenses such as luxury cars should be avoided when possible. 'The car that they drive is understated and the valet is seldom impressed until he gets the tip. It's usually a used Camry, a nice used Honda or a nice old pickup truck of some kind,' Ramsey said. This long-term perspective includes avoiding debt as much as possible, because, as Ramsey has said, 'Debt is a thief.' The wealthy understand that having a reliable car they don't have to make payments on goes much further down the financial road than other flashier options. The bottom line is that the truly wealthy aren't simply people with high incomes or luxurious lifestyles. They are individuals who consistently practice discipline, intentionality and long-term thinking in their financial lives. They understand that true wealth comes from wise decisions, which means anyone can build lasting wealth and live a financially peaceful life if they put their mind to it. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 How Much Money Is Needed To Be Considered Middle Class in Your State? 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 4 Secrets of the Truly Wealthy, According to Dave Ramsey Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Your Daily FinanceScope for June 21, 2025
The best things in life are free, but we could all use some extra cash. Let us lead you to the land of green with our daily finance horoscope! Earning ability, oddly enough, is not reflected in your ability to earn right now. That's just another indication of the topsy-turvy world you find yourself in. But don't fret. You'll earn it all back when things are no longer in disarray. Does it surprise you that some people don't think of decadence as the ultimate indulgence? If excess doesn't motivate them, then what does? This is your question of the day. Your accounts and your bills are at odds again. Something has to either line up or give. Or is it you who has to cry uncle? Be prepared to do whatever the situation calls for. Don't pour on the charm just yet. It will only be off-putting. Start by putting out some feelers and finding out exactly who's receptive to your ideas, then go from there. What would you do if you were pulled over for speeding? Would you act arrogant and above the law? If you think that just might double your fines, then use the same logic to figure out the right response to the situation you're in today. Need guidance? Your Numerology Reading is a mystic cheat-sheet to living your full potential. There are debts you can live with, and then there are toxic debts. Something is slowly poisoning your future. You can find out which is which without much soul searching. When it comes to something like eating, you have the rules of etiquette down pat. But there are other arenas where you can come off as a bit of a bore. Be especially careful whom you talk to about money. You're preparing for ambushes, but you really don't have to think in such calamitous terms. Imagine you're in a sport and not a war. The attitude adjustment alone could affect your bottom line. If you've ever been on a diet, you know that extra calories can be hidden in the details. That's where you have to look if you want to cut the fat out of your current budget. Don't be taken in by the larger picture. Being conscientious is becoming less and less appealing. If you need some incentive, conjure up the image of children. Their future is not only now, it's in your hands. Slog on. Learning changes everything. You don't have to stay stuck in the rut you're in, but the way out isn't through the usual channels. You need to change your tactics, your direction, your attitude -- what doesn't need adjusting? Make room for romance in your life. Set the atmosphere, make a good dinner, and ignore any mail that's not a love letter, and that goes for bills, too. In fact, it's especially true for bills. Find your cosmic purpose. Receive personalized astrological guidance with Astrology+.
The Independent
2 days ago
- Business
- The Independent
Everything you need to know about your credit score and how to improve it
We live in an era dominated by instant financial transactions, from contactless payments to 'Buy Now, Pay Later' schemes and rapid online loan approvals. In light of this, maintaining a robust credit score has become an increasingly complex challenge for many. Yet, this metric plays a quiet but integral role in countless aspects of modern life, from securing a mortgage or switching utility providers to simply signing up for a new mobile phone contract. The ease and affordability of accessing these essential services are often directly tied to one's credit standing. Despite its pervasive influence, a significant number of individuals remain unaware of how their credit score is calculated, let alone how to effectively improve it. To demystify this crucial aspect of personal finance, consumer finance experts are now offering essential insights into understanding and boosting your credit standing. A credit score explained and why it matters Many of us wouldn't dream of applying for a job without knowing what our CV says – yet when it comes to borrowing money, we often forget to check the financial CV that is our credit score. This three-digit number, used by lenders to judge our trustworthiness, can affect everything from mortgages to mobile phone contracts. 'A credit score is a personalised number that lenders use to assess how trustworthy you are when it comes to borrowing money,' explains TV's consumer finance expert and founder of Nous, Greg Marsh. 'A higher score means you're more likely to get approved for a loan, and offered better rates.' These scores are based on information held by three main credit reference agencies – Experian, Equifax and TransUnion – and each can possess slightly different records. Marsh says it's worth checking all three periodically. What affects your score Your score isn't arbitrary – it reflects your financial past. It includes whether you've paid bills or loans on time, how much of your credit limit you're using and the age of your accounts.' Avoid going over your credit limit or using too much credit, as this will incur additional fees and charges and potentially damage your credit score,' says Tesco Bank' s director of Help Me Borrow, Mamta Shanbhag. Opening too many credit cards in a short space of time, or maxing them out, can count against you. 'Making multiple credit applications at once – such as several credit cards in a week – can negatively affect your score, as it signals to lenders that you may be in financial difficulty,' says Equifax UK' s chief strategy and innovation officer, Craig Tebbutt. How to improve it Improving your score is less about tricks and more about habits. 'It's crucial to pay your bills and loan repayments on time to show lenders you've been reliable in the past,' says Marsh, 'setting up Direct Debits is useful as you don't need to remember to make a payment.' Other positive steps include keeping credit card balances low, staying within any arranged overdraft and registering to vote at your current address – a surprisingly important detail for verifying identity. 'Being on the electoral register and having a positive track record with different types of credit can also boost your score,' says Tebbutt. 'The best way to improve your score is to always pay your bills on time, keep credit card balances low, and avoid applying for too much new credit in a short period of time.' Shanbhag recommends using 'eligibility calculators' before applying for credit. These tools show how likely you are to be accepted without affecting your score. 'If you apply for a credit card or loan in full and get rejected, or complete multiple applications, it could affect your credit score,' she warns. What tools to use It's important to remember that you don't have to pay to check your credit score. There are several free and paid-for tools to monitor and improve your score. ' ClearScore gives free access to your Equifax report, while Credit Karma offers your TransUnion file,' says Marsh. 'Experian Boost also lets you add regular payments – like council tax or Netflix – to your score to demonstrate reliability.' He also points to paid-for sites like Loqbox, which reports your savings habits to credit agencies, and specialist credit cards for those with low scores – although these can carry high interest rates if not paid off in full. Credit scores don't change overnight. 'Generally, you'll start to see improvements within three to six months after making positive changes,' says Marsh. But rebuilding after defaults or missed payments will take longer. The key is consistency and patience. 'Check where you stand, build good habits and monitor your progress,' says Shanbhag. 'It's not about perfection – it's about showing that you're responsible with money.'
Japan Times
7 days ago
- Business
- Japan Times
Planning for the future in a time of inflation
With decades of stagnant prices and deflation seemingly in the past for Japan, inflation is the new normal. Prices in April rose at the fastest pace in two years. Faced with sticky inflation (where prices remain elevated regardless of consumption trends and government efforts) and maybe even a return to the dreaded stagflation (stagnant economic growth combined with high inflation), how can residents of Japan go about managing their personal finances? 'If prices are going up, you have three choices,' says Ben Tanaka, founder of RetireJapan, a financial advice website focused on expats in Japan. 'One: You can buy less with the same money. Two: You can increase your income (by getting a promotion, changing jobs or taking on side work), which will allow you to keep buying the same amount of things. Three: You can invest so that money grows over time (hopefully more than inflation) so you can spend a bit more in the future.' Tanaka stresses that, above all, it is absolutely vital to keep your spending under control. Having more income than expenses allows you to put money away in an emergency fund, with three to six months of essential living expenses as a good rule of thumb. After that is secure, he advises that any remaining disposable income must be put to work. Invest you must Japan happens to have two excellent investment vehicles accessible to all residents (except U.S. citizens, who will need to pursue different routes due to their country's specific regulations). The first one is a Nippon Individual Savings Account (NISA), a mechanism recently revamped by the government in an effort to shift considerable Japanese household assets away from cash. 'NISA is a wonderful option to invest for the future in general,' explains Tanaka. 'It's very flexible, so you can invest as little as ¥100 a month up to a maximum of ¥3.6 million a year. You can get your money back tax-free anytime, but ideally you should invest for the long term.' Although lifetime contributions are capped at a total of ¥18 million, reasonable investment returns should help you get around the infamous '¥20 Million Problem,' the amount the Financial Services Agency says the average retired couple will need on top of their pension to cover 30 years of retirement. NISA consists of two tiers: a tsumitate (reserve) quota for monthly contributions to designated mutual funds, and a growth quota allowing on-the-spot investment in riskier assets like individual stocks. Updates to the system are under consideration, including a Kodomo NISA account where minors would gain access to the tsumitate portion, and a Platinum NISA account to allow those over 65 to continue investing beyond current limits. The second mechanism is iDeCo (Individual Defined Contribution), more akin to a private pension plan where you choose your own investments but your money is tied up until you retire. 'IDeCo is a great way to invest for retirement,' says Tanaka. 'You put in a monthly sum, from ¥5,000 up to between ¥12,000 and ¥68,000 depending on eligibility. You cannot access your money until you are 60.' IDeCo reduces your income tax since contributions are tax-deductible, but you must claim it via a tax return. Tanaka agrees with legendary American investor John C. Bogle in that the best investment is a low-cost all-market index fund. In Japan, all-country global funds top popularity rankings, closely followed by funds tracking U.S. stock indexes. 'They have low fees (best-in-class funds charge 0.05% per year); you can automate your investments by setting up a monthly contribution; dividends can be reinvested automatically back into the fund so your investments grow faster over time; and you can buy them in both sections of NISA and in iDeCo,' he says. The government currently plans to increase iDeCo contribution limits in the near future, with salaried workers able to almost triple their monthly investment. Hike, baby, hike Another challenge is rising interest rates, with the Bank of Japan set to keep hiking due to inflationary pressures — uncharted territory for borrowers used to negative rates. Tanaka recommends having a comfortable margin of safety with mortgages or loans so that you'll be able to afford the monthly payments even if rates go up. This is another reason why having emergency savings is so important. 'If worried, you might consider a fixed-rate loan, although this is likely to be more expensive over the life of the loan,' he says. 'The key factor when taking out a loan is making sure that you can pay it back comfortably, i.e. you don't borrow as much as possible.' Mortgage or not, that's always good advice.
CNET
11-06-2025
- Business
- CNET
Here's the Secret I Learned About Opening a CD at Just the Right Time
APYs are just one thing to consider when deciding if you should open a CD now.I used to be clueless about certificates of deposit before I became a personal finance editor. Then I learned how interest rates work, and I realized that timing is everything. The Fed held rates steady at its last three meetings, and it's likely to keep interest rates the same during its upcoming meeting next week. Experts say the central bank might start cutting rates later this year, possibly in fall or winter. Now, instead of leaving money on the table, I let interest rates guide my savings strategy. Here's when you should lock in a CD and when you're better off waiting. Read more: Best CD Rates for June 2025: Lock in an APY up to 4.50% While You Still Can Open a CD when rates are high When you open a CD, your annual percentage yield is locked in for the entire term, whether it's five months or five years. Opening a CD when rates are competitive can help you maximize your earnings. If you wait too long and rates drop, you won't be able to secure a high APY. For example, in 2023, APYs for the top CDs we track at CNET soared to 5.65%. Now, the top rate is 4.50%. That's still more than three times the national average for some terms, but it means you won't earn as much as you would if you'd opened a CD when rates were at their highest. In the last decade, CDs have sometimes offered as little as 0.5% APY or lower. So, how do you know if rates are headed up or down? Keep an eye on the current interest rate news. The Federal Reserve, the country's central bank, adjusts interest rates in an effort to stabilize prices, boost economic growth or maximize employment. If the Fed's monetary policy meeting is around the corner (the next one is June 17-18), check to see if the Fed plans to increase, reduce or maintain its benchmark interest rate. Other banks and financial institutions typically set savings account and CD rates based on the Fed's actions. "When the Fed hikes rates, banks offer more interest to get people to save," said Taylor Kovar, certified financial planner and CEO of 11 Financial. The Fed held rates steady at its last three meetings, and it's likely to keep interest rates the same during its meeting next week. Experts say the central bank might start cutting rates later this year. "When the Fed holds or starts cutting, banks don't have to work as hard to attract deposits, so they pull those rates back. Even before the Fed makes a move, banks start adjusting based on what they think is coming," Kovar said. We're already seeing some banks quietly lower their APYs on deposit accounts. If you're looking for a low-risk investment tool now, locking in a CD at today's top rates could help you maximize your earning potential. Open a CD when you have a specific savings goal in mind CDs come in a variety of terms, ranging from a few months to several years, so you can choose a timeframe that aligns with your savings goal. If you're putting aside money for an expense with a specific date, like a wedding or vacation, a CD can be a great tool. Your funds will grow reliably until you need them, and early withdrawal penalties can discourage you from dipping into your cash prematurely. "If you invest in a CD, plan to not touch the money until the end of the term," said Noah Damsky, CFA, Principal of Marina Wealth Advisors. "Withdrawing funds early from a CD could result in penalties or foregoing earned interest." Open a CD when you want to protect your retirement funds Low-risk assets like CDs don't have the high earning potential that some stocks do, but they're also not as volatile. You won't see your savings plunge, for example. That's why experts recommend a mix of assets in your investment portfolio. If retirement is decades away, keeping a larger percentage of your money in high-risk, high-reward assets like stocks can help you grow your nest egg faster. You'll just have to ride out temporary market dips. If you're approaching retirement, however, it's time to focus less on growth and more on protecting the funds you've accumulated. Shifting a larger portion of your money into a CD can give you more stability once you stop working. If you're unsure, build a CD ladder If you know you want to open a CD now, but you also want the flexibility to take advantage of higher APYs if they emerge, a CD ladder can help. With a CD ladder, you spread your money across multiple CDs with different maturity dates. For example, if you have $10,000 to invest, you could divide it up this way: $2,000 in a one-year CD $2,000 in a two-year CD $2,000 in a three-year CD $2,000 in a four-year CD $2,000 in a five-year CD When one CD's term is up, you can withdraw the money and reevaluate how you want to use or invest it. Maybe you'll decide to roll those funds over into a new CD at an equal or better APY. Or you may open a different account somewhere else. A CD ladder allows you to keep some money available at regular intervals and jump on higher rates if they become available. Pro tip: CD rates can vary significantly from term to term and bank to bank. Always compare multiple banks and accounts to make sure you're getting the best APY for your savings timeline.
