Latest news with #personalfinance
Yahoo
a day ago
- Business
- Yahoo
Should I use a HELOC to pay off credit card debt?
A HELOC (home equity line of credit) can be a useful tool for paying off credit card debt, as it often has a lower interest rate and a long repayment period. Using a HELOC to pay off debt comes with risks, such as the potential to accrue more debt or even lose your home if you can't make payments. You should explore other avenues like home equity loans, cash-out refis and personal loans — and their associated interest rates — before choosing a HELOC. You have a lot of credit card debt, and you'd love to pay it off all at once. A home equity line of credit (HELOC) could be the answer. It's basically borrowing money from a new source to settle the sums you owe the old source — exchanging one debt for another. But this new debt can be easier to deal with. Not that it doesn't carry its own concerns. Here's what you need to know about using a HELOC for paying off your credit cards: the pros and the cons. The strategy is simple: You apply for a HELOC — a line of credit based on your home equity, the percentage of your home you own outright (not mortgaged). Once the credit line is established, you draw against it, and use these funds to pay off your credit card balances. Keep in mind: Tip: Some HELOCs come with their own checks or debit cards. Or, you can simply transfer the funds to a bank account and pay off the plastic from there, via a check or online at the card issuer's website. You'll have to repay the money you borrowed from your HELOC, of course, but you'll generally have a long period in which to make the payments: a decade or two. And your HELOC will likely have a much lower interest rate than your credit cards or a personal loan. There are several benefits to using a home equity line of credit to pay off credit cards. Nearly one-third (30 percent) of homeowners cite debt consolidation as a good reason to tap their home equity, according to Bankrate's Home Equity Insights Survey. It was the second most popular rationale, in fact. Instead of paying off credit card debt bit by bit (with either the snowball method or the avalanche method, for example), a HELOC lets you eliminate it immediately or within a few months. If you are currently feeling overwhelmed by the outstanding balances, using a HELOC can provide significant mental relief. The average credit card interest rate is more than 20 percent. In contrast, the average HELOC interest rate is hovering just above 8 percent as of mid-June 2025. Keep in mind that these are variable interest rates, which means they can go up or down depending on the prime rate. Even if your HELOC interest rate rises, though, it's still likely to be much lower than your credit card's APR (which will also fluctuate with the prime rate, remember). By paying off those high-interest balances, you'll have a lot more discretionary income, of course. Your FICO credit score should also increase with the absence of debt on your record. Because a HELOC is secured by your home, its balance doesn't count in computing your credit utilization ratio, one of the factors determining your score. (The HELOC itself will appear on your credit report, though.) Using a HELOC to consolidate debt isn't without its risks. HELOC debt is secured debt, which means that if you don't pay it off in full, the lender has the right to claim whatever you put down as collateral. With a HELOC, that's your home. When you take out a HELOC, you run the risk of foreclosure if you miss payments or can't pay back the principal within the designated time period. Credit card debt, by contrast, is unsecured — meaning, the card issuer can make scary noises, but can't seize anything of yours in payment.) Nobody pays off their credit cards with the intention of immediately digging a new debt hole. But if you don't practice healthy financial habits, you could find yourself right back where you started, sooner rather than later. If you use a HELOC to pay off your credit cards and then start building up unpaid balances again, you'll have both the credit card debt and the HELOC debt to pay back. Plus, during the HELOC's draw period, you might be tempted to use any leftover credit, accruing even more debt. It can be easy to lose track of how much you're spending, too. Many HELOCs allow you to repay just interest during their draw periods. If you surrender to that temptation, your monthly payments will abruptly zoom when you enter the repayment period, because they'll now include both principal and interest. And if interest rates have risen as well, you might find your monthly obligation double or triple its previous amount — which can be a big blow to the budget if you didn't prepare for the increase. Both HELOCs and home equity loans (HELoans) can be effective ways to pay off debt. In the case of credit card debt, though, the HELoan may have a slight edge. Presumably, you know (or can calculate) the exact outstanding amount on your cards. And presumably, you'd want to clear it as soon as possible because those high APRs multiply balances at a rapid clip. This situation is well-suited for a home equity loan, which disburses a single lump sum that gets repaid in fixed-rate monthly installments. In contrast, with their fluctuating interest rates and long draw periods, HELOCs work well when you're not sure of the exact sum you'll need, or for expenses that get incurred over a long period (like college tuition or a contractor's bill on a long-term construction project). Home equity loans' interest rates are comparable to HELOCs. (As of this writing, they are averaging 8.45 percent.) Of course, you are locked into paying that rate for the loan's lifetime. While you can use either in most situations, HELOCs are more advantageous for some expenses, while home equity loans work better for others. Expense Preferable tool Why it makes sense Emergency HELoan This is probably a fixed sum that would be better to repay ASAP Business start-up HELOC Expenses are indefinite and will run over an extended period Credit card balances HELoan You can add up exactly how much you'll need to pay off all your plastic, which you'd presumably do all at once College tuition HELOC You can withdraw funds as needed just to pay for a semester, quarter or half-year Months-long, multi-faceted home renovation project HELOC Periodic draws ideal for paying contractor in installments; you have reserves if project has cost overruns Medical bill HELoan Better to pay this bill in total, sooner rather than later HELOCs aren't the only debt-settling tool in town. Most of these alternatives mean you won't have to put your home up as collateral, but they do have drawbacks. Debt consolidation loan: Roll all your credit bills together and pay them with a single debt consolidation loan, one with a lower interest rate. A reputable debt counseling service can help you do this, in addition to providing guidance on how to manage your finances and pay off your balances over time. This move can have negative consequences for your credit score, though. Personal loan: Unsecured personal loans can be easier and quicker to obtain than home equity products. On the downside, their interest rates are higher, even if you have a strong credit score (720 or above). Also, their terms are usually shorter. Balance transfer credit card: Moving outstanding debt from one credit card to a new one can help you take advantage of low promotional interest rates: You might even find a card with a 0 percent APR. Just make sure you'll be able to pay off the balance before that introductory rate period expires, usually within a year or two. Cash-out refinance: With a cash-out refinance, you're tapping your home equity, swapping out your old mortgage for a new, larger one and taking the difference in cash. Cash-out refis carry lower interest rates than HELOCs – but there's also the hassle of having to apply and go through underwriting all over again, plus paying closing costs. Learn more: Home Equity Loan Or HELOC Vs. Cash-Out Refinance While a HELOC can be a smart way to tackle credit card debt, it's not the best move for everyone. Using a HELOC to settle credit card balances can make good fiscal sense if you own a substantial stake in your home outright — giving you a lot of money to borrow — and the interest rates on your outstanding card debt are in the high double digits. That said, this strategy comes with its risks, including the risk of losing your home. Also, bear in mind that HELOCs can be tough to get: They demand at least a 'very good' credit score — which, if you've got a mountain of debt, you may not have. If you've got a good amount of home equity to tap, and can score a low interest rate, it could be the best choice. But be sure to compare the APRs and understand the repayment terms and fees. You don't want to get blindsided — not when it's your home on the line. Can I use a HELOC for other expenses besides credit card debt? Yes, lenders typically don't have any restrictions on what you can use HELOCs for. Homeowners use HELOCs for a variety of expenses, including home renovations, education expenses and to start or grow a business. Do I have to pay off my credit card debt all at once with a HELOC? No, you don't have to pay off of your credit card debt all at once with a HELOC. It's a revolving line of credit: You can choose how much of it to use and when and to use it (in line with any rules the lender has about withdrawals, of course). But the sooner you settle those high-APR credit card balances, with their ever-multiplying amounts, the better. How can I avoid the temptation to re-borrow after using a HELOC to pay credit cards? Treat your HELOC like a loan rather than a line of credit and set up a structured plan to pay it back, even before the repayment period begins. Reduce your reliance on credit by creating a realistic budget. Limit yourself to using just one or two credit cards (to better keep track of your spending) and shifting to using cash or debit cards for everyday expenses.
Forbes
2 days ago
- Business
- Forbes
7 Effective Personal Finance Best Practices You Need To Start Today
Personal finance best practices getty Mastering personal finance is an essential life skill. Beyond managing money, it's about optimizing what you already have to build wealth and achieve financial freedom. Whether you are just beginning your career or want to enhance your habits, this article discusses seven best practices that can anchor your financial life on stable and productive ground. Before addressing any other expense, prioritize yourself by treating savings as a non-negotiable. Rather than waiting to save what's left over after expenses, set aside funds immediately upon receiving your paycheck. A simple strategy is to set up automatic transfers to dedicated accounts, such as a high-yield savings account, a retirement vehicle, or a brokerage account. This ensures consistency and removes the burden of decision-making every payday. Begin with a target savings amount (usually 10% to 20% of income, though any amount is better than none) and set it up through your online banking platform. Choose the appropriate destination based on your financial goals. For example, high-yield savings accounts are best for emergency funds and short-term savings. For long-term growth, consider contributing to a Roth IRA, 401(k), or a taxable brokerage account, depending on your eligibility and objectives. Many investment platforms also offer automatic contributions that allow scheduled investments to mutual funds or ETFs. Over time, you will be more disciplined since you only live within the margin of what's left after savings, ensuring your long-term financial goals are met. Emergencies can derail your financial plans if you do not have contingencies for them. Your first line of defense is to have a well-established emergency fund in an account separate from your savings or checking accounts. Save at least six months' worth of living expenses in an easily accessible account. Remember to use this fund only for emergencies, such as a job loss, car accident, natural disaster, or sudden family obligations, and replace the amount as soon as you can. Having an emergency fund provides peace of mind and helps you stay on track with your other financial goals and avoid costly credit card debts or high-interest loans when times are tough. You may also explore various insurance products as an added protection. For example, if you have dependents, a comprehensive life insurance ensures your family is provided for in case of your death. Auto insurance covers not only accidents but also potential liabilities, while disability insurance replaces income if illness or injury prevents you from working. Similarly, health insurance helps cover medical costs, and renters or homeowners insurance protects your possessions and property. Get adequate insurance coverage based on your specific situation and needs. It's better to have insurance and not need it, than the other way around. Only spend what you have because you go into debt otherwise. It's quite straightforward, but it's easier said than done, especially with a bombardment of invitations to consume in social media, TV, billboards, etc. In a culture saturated with advertising, quick credit, and instant gratification, it is easy to confuse wants as needs and to normalize a lifestyle that exceeds your actual income. To live within your means, you first need to distinguish between essential (food, utilities, rent, savings) and discretionary expenses (subscriptions, dining out, vacation, gadget upgrades) and knowing which to prioritize. Of course, this doesn't mean depriving yourself. Instead, it's about being more intentional with your spending habits and thinking well about each expense before making it. You should also avoid lifestyle inflation and impulse buying which are some of the most common causes of debt accumulation. For example, say you get salary raise at work, it doesn't necessarily mean you have to upgrade your car, rent a more expensive apartment, or buy the latest iPhone. More often than not, you don't need those impulse buys. Why not increase your savings rate, or open an IRA, or maybe payoff credit card debt? If you feel you really need (or want) an expense, delay for a few days to allow more time to decide. Be mindful about your spending habits. Focus on the long-term and not immediate indulgences. Saving is essential, but it doesn't really create lasting wealth. To truly grow your resources and outpace inflation, you must invest. You must put your money to work in assets that generate returns over time, whether through capital accumulation, interest, dividends, or passive income streams. The earlier you start, the better, as you have more time for compounding to grow your returns. To illustrate, a $200 monthly investment that you make from age 25 to 65 will earn approximately $495,000 at 7% interest compounded. If you delay investing and start at age 40, you will need to invest around $690 a month to reach $495,000 at age 65 (assuming same interest rates). That's more than $110,000 more in total investments for the same returns. Remember, time, not timing, is your greatest financial tool when investing. Consider your time horizon and risk tolerance when selecting investments. You should also diversify your portfolio to manage risk. Have a mix of asset classes, such as stocks, bonds, or real estate, and spread them across different geographies and sectors so that your portfolio is protected against market volatility. People assume that you need a restrictive budget to manage your money effectively, but often, just a clear understanding of where your money goes is enough. When you track your spending, you are able to see patterns and discover areas where you can cut back, such as a daily coffee run or forgotten subscriptions. Such seemingly minor expenses can then be used to boost your savings, invest, or pay off debts. The key here is consistency. You may use a spreadsheet, an app, or a simple notebook to jot down all your expenses. You can do it at the end of each day or even during the actual instance of spending itself. Expense tracking may seem inconvenient at first, but the rewards are worth it, especially if you develop the habit to become second nature. Doing so not only protects you from late fess, penalty interest rates, and service disruptions, but it is crucial for building and maintaining your credit score. Payment history is an influential factor in credit scoring models, and even one missed payment can negatively impact your creditworthiness, making it harder to secure favorable terms on loans, credit cards, or rental applications. Pay every bill on or before the due date to demonstrate to lenders that you are reliable. You can set up reminders on your phone, email alerts from service providers, or automatic payments through your bank or creditor's platform. Just remember to regularly review your automated payments to ensure you have sufficient funds in your account and that no billing errors have occurred. While much of personal finance can be managed independently with the right knowledge and discipline, you need not do things alone. Especially as your finances become more complex, professional guidance can save you from costly mistakes and uncover strategies you might otherwise overlook. Depending on your situation and goals, you may benefit from a range of experts. For example, a certified financial planner can help you build a comprehensive plan that includes budgeting, retirement savings, insurance, and other considerations. An investment advisor can assist in selecting and balancing your portfolio, while enrolled agents or CPAs can help you reduce your tax liability through legal means. For estate planning concerns, an attorney can help you prepare a will, set up a trust, or manage your assets so they are distributed according to your wishes. Whatever your need, financial advisors can provide valuable expertise and experience. Do your due diligence when selecting an advisor. Ensure they are fiduciaries acting on your best interests. Ask about their fees and how often you will meet. You may also verify their credentials and check their history using tools like FINRA's BrokerCheck or the SEC's Investment Adviser Public Disclosure website. Personal referrals and client interviews can also help you gauge whether a professional is trustworthy and aligns with your values and goals. Financial success is a product of consistent, discipline habits. Follow these personal finance best practices to achieve greater stability, financial freedom, and peace of mind. Continuously improve your financial knowledge by reading books and articles or attending webinars so that you can adapt to changing circumstances in the market, government policies, and your own life.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
Do You Know More About Personal Finance Than This High Schooler? - Your Money Briefing
More than 120 high-schoolers put their personal finance knowledge to the test in the Council for Economic Education's National Personal Finance Challenge. Host Oyin Adedoyin is joined by personal finance reporter Ashlea Ebeling, who helped turn the questions from the challenge into a quiz for Wall Street Journal readers, some of whom didn't score as well as the teenagers who competed. Full Transcript This transcript was prepared by a transcription service. This version may not be in its final form and may be updated. Speaker 1: Okay, here we go. It's time for the final round of the 16th annual National Personal Finance Challenge. Caleb Lee: The only point where we really felt confident, "Oh, right. Oh, we got this. We're going to win," was at the last two questions on the final quiz ball. It was very intense, very stressful, but I think we all really enjoyed that intensity. Oyin Adedoyin: That's Caleb Lee. He's 17 years old and he was part of a four-person team of students from Scripps Ranch High School in San Diego who recently won the Council of Economic Education's National Personal Finance Challenge. That means that he knows more about personal finance than a lot of adults. Here's Your Money Briefing for Wednesday, June 18th. I am Oyin Adedoyin for the Wall Street Journal. How much do you think you know about personal finance? We recently published two quizzes that put our readers' understanding of things like retirement accounts and investing terms to the test. The questions came from a challenge posed to high school students like Caleb Lee. Caleb, what sparked your initial interest in personal finance? And when did you decide to take that extra step and actually compete? Caleb Lee: So I would definitely say my initial interest in finance came from my dad. My first savings, he helped me invest that into stocks like ETFs, index funds, and he also just overall talks about his experience with retirement accounts, mortgages, insurance, and taxes. I've also been to a few camps when I was younger in middle school. That have taught me a few of the basics and just got that interest going. And then what really led me to compete was my friend who was in the competition with me. His name is Ryan. He's the one who asked me, and he knew that I'd be willing to do this with him. Oyin Adedoyin: Wow. So how did you go about, I guess, studying or practicing for this big challenge? Caleb Lee: For the initial preliminary test, we actually were able to pass that with our pre-existing financial knowledge. But then once we passed that and qualified for the initial case study, we created the studying methods around the practice case studies that we did, and we basically decided, oh, we would split up this financial planning into sections. So there would be things like budgets, retirement planning, insurance, debt and loans, and different groups like that. And then each person would take one to two of these groups. And then we also studied a bit of general finance knowledge, like some gift taxes, trust, 529 to IRA rollovers, things like Medicaid qualifications. Oyin Adedoyin: What would you say was your section of expertise? Caleb Lee: For the quiz bowl, I actually studied a lot about bonds and financial ratios. I did a lot of research on my own using websites online or videos that I found. And there's this one specific website like Investopedia, but it has a lot of this more niche or advanced terms that I found on there, and I felt like it explained them pretty well. We also reached out to a few people that we knew were very well versed in their financial literacy skills. For example, Ryan knew some financial planner who was able to give us feedback, and there was definitely some helpful information from that as well. Oyin Adedoyin: It sounds like you guys went through great lengths to really prepare for this and make sure you knew your stuff. And do you know more about personal finance than some Wall Street Journal readers? From those who took the quiz online, we know that only seven out of 10, for instance, knew what a limit order is when buying stocks. How does it feel to know more about personal finance than many adults? Caleb Lee: Some of the adults in my life did take the test and they actually didn't end up getting all the questions right, and I was kind of surprised by that. I thought it was common knowledge for adults, but I just feel like financial literacy is really important because there's a lot of relevance no matter what field someone's going into because they're always going to have to deal with these topics. And even the case study shows how adequate financial literacy applies to any situation. Oyin Adedoyin: In a few years, you'll be an adult. I'm curious what your goals are for the future. Caleb Lee: I want to go to a good college and then I want to be able to get a job related to finance or related to engineering, actually, or a mix of both. Oyin Adedoyin: Do you feel like more people should get into personal finance? What do you think might be stopping the younger generation from learning about it? Caleb Lee: I definitely feel like it's a really important life skill. So I guess the biggest thing stopping people from learning is that it's not taught as a class in school. There are some schools with financial programs and economics classes, but at least in my area and the people that I know don't really have that available to them. So it would be a huge help if we could, I guess as a community, as a society, try to advocate for more financial literacy to the younger generation by implementing those classes or programs, like some of the camps that I went to were really helpful in getting me started. Oyin Adedoyin: So how well did Wall Street Journal readers do on the quiz, and what does it tell us about financial literacy? We'll hear from reporter Ashlea Ebeling who helped turn some of those questions that Caleb was asked into an online quiz. That's after the break. The Wall Street Journal published two quizzes based off of the questions high schoolers were asked in the Council for Economic Education's Personal Finance Challenge. My colleagues Ashlea Ebeling and Ben Eisen worked on the quiz, and Ashlea joins me to discuss how our readers did. Ashlea, do you remember what you knew about personal finance? I know you're a tax whiz, but what did you know about personal finance in your teens? Ashlea Ebeling: Oh, it was like my dad helped me. He had all the papers on a big desk literally every night. He was either doing medical bills or some other kind of paperwork and walked me and my brother through it. And my mom was the one who took me to the local bank to open up my first account. Oyin Adedoyin: Yeah, I was the same way. I didn't take a personal finance class in high school. And my dad was an accountant, so he always... I mean, he still does my taxes to this day. Ashlea Ebeling: Lucky you. Oyin Adedoyin: Yeah. When I was younger, he'd always... I'd just take all the tax forms and all the complicated forms to him and he'd crunch the numbers. I felt like I didn't need to know as much about personal finances until maybe in college or something. So I took the personal finance quizzes, I took one and two. Some of these questions are hardcore. Ashlea Ebeling: And the kids had it even harder than you had it because in the competition, it's an open-ended question. Oyin Adedoyin: Oh, there aren't multiple choice. Ashlea Ebeling: Right. So they have to come up with it off the top of their head. Oyin Adedoyin: A lot of people engaged with these quizzes. I'm curious about how many Wall Street Journal readers completed the quiz and how they did. Ashlea Ebeling: The first one, it was 50,000 people took it. And then they were saying, "Where are the rest of the questions?" So that's what led us to do the second quiz. People did really well. Nine out of 10 aced this question about certificates of deposit. That might also mean our readers are skewing older. It's not totally clear. But then only seven of 10 knew what a limit order is when buying stocks. So one thing I'd say is for young people taking the quizzes, if you see certain areas that you get wrong or if you're getting your first credit card, make sure you know what a cash advance is, what the difference between putting something on your credit card versus your debit card. When you're opening your first brokerage account, understand when you're checking the boxes, if you're putting a power of attorney on account. Just really ask questions. Oyin Adedoyin: So according to the National Endowment for Financial Education, 28 states have passed financial literacy graduation requirement laws, which means that in those states, high schools need to have some kind of personal finance class or test for the students to graduate. What are you hearing from maybe teachers who are teaching personal finance now? Ashlea Ebeling: Well, I think it's a huge thing. And in most cases, people really do learn from their family, and then that puts them either at an advantage or a disadvantage depending on what their parents or their older relatives know. Young people need to know even if their parents aren't financial whizzes, they could look into broader networks. And then having the broader network of teachers and coaches who are involved is super important. In this personal finance quiz, these kids, the ones who won, they did not have a personal finance class at their school, but it was one of the teachers who decided he wanted to work with these kids to take them through this competition. So that there, again, it's great. It's having the one adult who really cares about it. Oyin Adedoyin: So Ashlea, you told me the other day that you took the personal finance quiz with your daughters who are college age, right? How'd they do? Ashlea Ebeling: They follow me, which I'm lucky as a parent to say that. So when they saw the article pop up, they said, "Oh, we should take the quiz." And they did really well. They took economics at their high school, so they said that helped. I have to say the one daughter said the FSA HSA question, she said she thinks she got the answer to that one right because of watching YouTube videos. Some people say, "Oh, don't look at anything online," but there's good content if you look in the right place. Oyin Adedoyin: For many people like us who didn't have financial literacy or maybe rigorous econ classes in high school, what are some of the resources out there that can help you get up to speed on complex personal finance topics that are actually reliable? Ashlea Ebeling: So we hope, obviously, that you're all reading the Wall Street Journal and our coverage. But beyond that, a lot of just the brokerage houses, whether it's Schwab or Vanguard, they have really good explainers on their websites. And there's Investopedia. Don't forget your employer. So not like you're going to your HR department necessarily, but whoever the 401k retirement plan is with, which maybe it's Fidelity or Empower, they often have free advice that you can call up. They'll talk you through things when you have questions. Oyin Adedoyin: That's Wall Street Journal reporter, Ashlea Ebeling. We're off tomorrow for the Juneteenth holiday, but we'll be back on Friday with a new show. And that's it for Your Money Briefing. We had additional production help from Coleman Standifer. This episode was produced by Ariana Aspuru and supervising producer Melony Roy. I'm Oyin Adedoyin for the Wall Street Journal. Thanks for listening.
Yahoo
3 days ago
- Business
- Yahoo
Suze Orman Urges Americans To Take A Break This Summer — Even If They Can't Afford To Travel
As inflation continues to pinch household budgets, many Americans are putting summer vacations on hold. But personal finance expert Suze Orman is urging people to take a different approach — one that prioritizes rest and rejuvenation, even if traditional travel isn't in the cards. According to a Bankrate survey, just 46% of Americans plan to travel this summer, down from previous years. Among those who aren't traveling, the vast majority — 65% — say they simply can't afford it. The rising cost of everyday expenses like groceries, gas, and housing is taking precedence over optional spending, like vacations. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Another 24% of Americans say they don't plan to take a vacation at all this summer — not even a staycation. And nearly 1 in 4 survey respondents said they were still undecided, a noticeable increase from last year. Orman recognizes the financial reality many families are facing. "I applaud you for not booking a getaway if you are worried about the financial cost," she writes in a recent blog post. But she also warns against skipping vacation altogether. "It's important to relax and recharge a bit," she adds, noting that failing to take time off can lead to long-term burnout. Americans are known for underutilizing their paid time off. Orman points to research showing that about half of U.S. workers don't use all their vacation days — a missed opportunity, she says, for much-needed rest and family connection. Trending: Invest where it hurts — and help millions heal:. You don't need to board a plane or book a hotel to enjoy a break. Orman encourages Americans to rethink what vacation looks like and consider a staycation instead. "I was surprised to see in the same survey that just 10% of respondents are planning time off that they will spend at home," she notes. A staycation, she says, can be just as fulfilling as a traditional vacation — especially if it's thoughtfully planned. She recommends unplugging from work, indulging in small luxuries, tackling a fun home project, or exploring nearby attractions you've never visited. Even assigning each family member a day to plan can turn a week off into a shared adventure. "The one non-negotiable," Orman writes, "is that everyone has to buy into the person's vision for that day."Skipping a pricey vacation doesn't mean skipping self-care. "Making the decision not to overspend on a vacation right now is such a strong stand-in-your-truth act of financial responsibility," Orman says. But she's equally adamant that "you deserve to take time off and enjoy yourself." Whether you spend your summer break in your backyard or exploring a nearby park, the point is to step away from the daily grind. Orman's primary message to Americans this summer? Don't let financial concerns stop you from giving yourself the rest you've earned. Read Next: The average American couple has saved this much money for retirement —? Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Suze Orman Urges Americans To Take A Break This Summer — Even If They Can't Afford To Travel originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
3 days ago
- Business
- Yahoo
9 Income Streams You Can Build as an Employee, According to Codie Sanchez
From Wall Street to Main Street, Codie Sanchez is leading a revolution in personal finance and wealth. The author of 'Main Street Millionaire' is on a self-proclaimed mission 'to create 1 million financially free humans through business ownership.' Learn More: Up Next: Using her experience from nearly two decades of working on Wall Street, Sanchez has a YouTube channel that offers advice, tips and insights for ways to find fiscal independence without a degree in business or finance. For those who are looking to increase earnings while still working a regular job, Sanchez has a video that breaks down the nine income streams you can build while an employee, which comes from her own personal experience. This is a hard truth, admitted Sanchez, but the first $100,000 you'll make will most likely come from your earned wages with a corporation or company. Sanchez broke it down that, for her, it was 20% salary, 30% of carry (or what she owned in the company), 35% to 40% in bonuses and 10% to 15% in commission. Sanchez pointed out that it is a great way to start earning money, but your salary should not be your sole source of income because it may dry up at some point. Trending Now: Sanchez noted that there are many things that you can leverage to up your earnings, with a top one being time. 'Anytime you can trade your time for somebody else's money, that's going to be your superpower,' Sanchez said. She did this herself, starting a service business that helped people in Latin America do what she was doing in the United States, essentially creating introductions and paths toward business in the region. It was done with a then-colleague of Sanchez's and a few late hours after work. Another mechanism of leverage that Sanchez brought to attention was expertise, which comes only with time and experience. However, it can lead to a great source of income. You can consult in fields in which you are the top of your game and have the resume to back it up. You can start by offering some consulting calls for free — just don't do it forever. 'Take the thing that someone pays you for in your salary or other high area of performance, and do it one-off by the hour,' she explained. And this can be pretty lucrative. As reported by Foundr, consultants can make an average of over $8,000 per month, though that number varies based on the number of hours worked, the type of consulting done and more. There are lots of ways that you can utilize your expertise, but sitting on the board of a company that is in your industry is another excellent method for adding to your income streams, according to Sanchez. A huge hack that Sanchez passed along for those wanting to sit on a board is this: Find their 'who' to solve their 'how' or 'what.' Basically, if you can connect business leaders to solutions via your network, that can be your biggest asset to sitting on a board. You can use your background and expertise to host speaking engagements, where lots of people get your advice, wisdom and answers to their questions in a group setting. 'If you can find a specific niche,' Sanchez explained, 'especially in a niche where other people make money or they bring in attendance, then you too can get paid a lot for speaking at events.' Should you find yourself in the position of getting asked for your expertise on multiple subjects, Sanchez suggested that an info product site could be another fruitful source of income. Here you can create a guide and post frequently asked questions, which could help you generate some passive revenue. It might not be much annually, but it's not exactly nothing either. All you need to start this, in Sanchez's professional experience, is cash, curiosity and crowd. Take a little bit of money to create your info product, tap into a burning need and see how large of an audience is asking for this kind of expertise. The next tool of leverage that Sanchez highlighted was brand awareness, which she used to turn what people knew about her and her personality into an income stream involving newsletter affiliate sales. Start by asking these questions. Where do people ask for your opinion? What would you be doing even if you weren't getting paid for it? What are the hobbies you'd like to get into? What are you really, really uniquely skilled at? Find these answers, and then offer them via your newsletter. Just make sure you like writing and you can commit to writing a newsletter a week for a whole year, according to Sanchez. Sponsorships are another option. But this works at scale only if you have defined your brand, have cultivated a massive audience, and are willing to commit to pushing a product or service from a specific sponsor on your public-facing channels or social media networks. Sanchez warned there is no set amount of pay and you might have to start with payment in the form of free products. However, if you are willing to put in the time, start small and don't mind sharing the profits with a sponsor, there is money to be made without quitting your day job. The last leverage that Sanchez encouraged viewers to take stock of is money — advocating that when you make money, it is important for you to continue growing your money. If you can be the backer of buying a home to turn into an Airbnb or invest in a laundromat business, for example, there is money to be made without lifting too much of a finger. As reported by Airbnb, it's estimated that hosts in the U.S. made an average of $14,000 in supplemental income from Airbnb last year. Just make sure you have a partner who is willing to manage the businesses if you are putting up the cash to start these kinds of money-generating enterprises. More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on 9 Income Streams You Can Build as an Employee, According to Codie Sanchez 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
