Search Results

How to Build Your Emergency Fund with Automated $5 Deposits In the face of unexpected expenses, having a solid emergency fund is crucial for financial stability. Saving $400 may seem daunting, but with the right approach, it's completely achievable with little work or stress. In this guide, we'll explore a simple yet effective method to build your emergency fund by automating $5 daily deposits into a high-yield savings account over the course of three months. Why $400 to start off an emergency fund? According to a Federal Reserve survey, almost 40% of adults that are unable to cover a $400 emergency expense. $400 is a reasonable starting point for an emergency fund, covering many common unexpected expenses such as car repairs, medical bills, or appliance replacements. It serves as a financial safety net, preventing you from relying on credit cards or loans during challenging times. Step 1: Set Up a High-Yield Savings Account Before you start saving, choose a high-yield savings account to maximize your returns. Look for accounts with competitive interest rates and minimal fees. Online banks often offer higher interest rates than traditional brick-and-mortar institutions. Below are a few places to open a high-yield savings account: SoFi Bank Citizens Bank CIT Bank Platinum Savings Discover Bank Online Savings American Express® High Yield Savings Step 2: Create a Dedicated Savings Goal Most banks allow you to set up specific savings goals within your account. Create a dedicated goal for your account, naming it something like "Emergency Fund" to keep you focused on your objective. Step 3: Calculate Daily Savings To reach your $400 goal in three months, you'll need to save approximately $4.44 per day. Round it up to $5 to make the process simpler. By automating daily deposits, you're creating a consistent savings habit without feeling a significant impact on your daily budget. Step 4: Set Up Automated Transfers Log into your online banking portal and set up an automatic transfer of $5 from your checking account to your dedicated emergency fund goal every day. Automation ensures consistency and removes the need for manual intervention, making the savings process seamless. Step 5: Track Your Progress: Regularly monitor your savings progress to stay motivated. Many high-yield savings accounts provide visual trackers, allowing you to see how close you are to reaching your goal. Celebrate milestones along the way to maintain your enthusiasm. Step 6: Adjust if Necessary Life is unpredictable, and circumstances may change. If you encounter unexpected expenses or income fluctuations, be flexible in adjusting your daily savings amount. The key is to stay committed to the overall goal of building a $400 emergency fund. Conclusion Building a $400 emergency fund over three months with automated $5 daily deposits is a practical and manageable approach. By setting up a high-yield savings account and leveraging automation, you're not only safeguarding your financial well-being but also cultivating a habit of consistent saving. Remember, the key is persistence, and this small daily commitment can lead to significant financial security in the long run.

Important terms that every U.S. consumer needs to know and learn An increasing number of consumers have been making delinquent credit card payments 30 days late or more, according to the Federal Reserve Bank of New York’s latest Quarterly Report on Household Debt and Credit. Given the pressure of inflation and rising interest rates over the past few months, it's unfortunately no surprise that there's been a rising rate of late credit card payments. A recent Clever Real Estate survey found that 3 in 5 Americans are in credit card debt, owing an average of $5,875. In addition, 23% say they go deeper into credit card debt every month and 14% say they’ve missed a payment in 2023. With credit card debt developing into a serious financial problem for many U.S. consumers, it's important to know key terms when it comes to your Visa and Mastercard. Here are three terms to learn: Annual percentage rate (APR) The APR is the interest rate or cost you pay yearly to borrow money for purchases. The average APR on a credit card is more than 21%, according to Bankrate, and nearly 30% for retail store credit cards. A LendingTree survey of 100 cards found some retail cards can have interest rates as high as 35%. 0% APR card 0% APR cards means you’ll pay no interest for a certain period of time for the ability to borrow money to make purchases. The best 0% APR cards will allow you to pay no interest for up to 21 months. Pay close attention to when that 0% interest period will end, because when it does, the rate will spike up to the national average — or higher — and as rates continue to rise. It's also important to understand if there are any penalties for late credit card payments. Late payments are normally a violation of the introductory offer terms for 0% APR cards; and you may end up with a penalty APR that’s higher than the card’s standard variable APR. "Buy now, pay later" (BNPL) plans "Buy now, pay later" plans, or BNPL plans, are another popular way to finance consumer purchases. The most popular BNPL apps include Affirm, Apple Pay Later and Klarna. Here’s how BNPL plans work: You purchase an item and pay for that item over time after an upfront initial payment. BNPL plans generally don’t charge interest, which makes them an attractive alternative to credit cards. But they may charge a fee, especially if you miss a payment. Although BNPL plans typically don't charge interest, you only have that short window of time to pay it off as an installment loan. Credit cards, on the other hand, provide more flexibility on balance payments.

The Eras Tour: A "Swift" Boost to the US Economy Taylor Swift is a force to be reckoned with. However, her impact extends far beyond Billboard charts and the entertainment industry. With her groundbreaking Eras Tour, Swift has not only captivated millions of fans, but has also orchestrated a significant economic boost for the U.S. Let's delve into the ways Taylor Swift's Eras Tour has contributed to the U.S. economy this summer. Eras Tour Revenue and Job Creation The U.S. leg of the Eras Tour has grossed $2.2 billion in ticket sales alone. On top of that, the tour has sparked an additional $5 billion in consumer spending, with Swifties spending an average of $1,300 in travel, hotel, food & beverage, and merchandise. That level of spending is on par with the Super Bowl, but multiple that Super Bowl effect over 53 different nights in 20 different locations across the U.S. Here’s a snapshot at the local economics impact on some of the cities in the tour: Pittsburgh generated $46 million in direct spending. Hotel occupancy averaged at 95% and pushed average daily room rates (ADR) to $309, a 106% increase. Los Angeles benefited from a massive economic impact of $320 million, including $20 million in sales and local sales tax and another $9 million in hotel room taxes. Denver’s two concerts resulted in visitor spending that contributed an estimated $140 million to the state’s GDP. Cincinnati’s impact was estimated at $48 million, of which $20 million was from visitors. Moreover, the Eras tour has created employment opportunities on a massive scale. From event staff and security personnel to local vendors supplying goods and services at concert venues, the Eras Tour has been an engine for employment. Taylor's six-night stint in Los Angeles alone created 3,300 jobs alone. But there's more: Taylor has also paid an estimated $55 million in bonuses to her entire tour staff. Putting on a "once in a lifetime" concert is complex; it requires significant logistics, stage production, and operations. As a reward for that work ethic, each of her 50 truck drivers received a $100,000 bonus, for ferrying her enormous production across the U.S. Dan Egan, VP of behavioural finance and investing at Betterment, notes these windfalls, which often outstrip their recipients' yearly salaries, can be hugely influential. In some cases, he expects much of this money to pay down high-interest debt and increase people's spending power--all which funnel more money into the U.S. economy. Egan also notes that these bonuses can "take the weight off both financially and psychologically...[which] really, really improves lives". Eras Tour Film Sales The Eras Tour hasn't just been a series of concerts; it's been a cinematic phenomenon at theaters. Shortly after wrapping the U.S. leg of her tour, Taylor released a concert film across 8,500 theaters. Before the film was even released, AMC Theatres announced worldwide ticket pre-sales had already exceeded $100 million. First-day sales alone topped $26m, breaking box office records. However, since Swift cut a deal with AMC Entertainment to release "The Eras Tour" film instead of a traditional studio, the box office numbers are an even bigger win for Taylor, AMC Entertainment, and local AMC theaters. According to Matthew Belloni, who first reported the terms of Swift’s theatrical deal in his Puck newsletter, 43 percent of the movie’s gross profits will go to theaters, and the remaining 57 percent will be shared by Swift and AMC. Look What You Made Me Do...for the U.S. Economy From boosting local economies and creating jobs to influencing tourism and theater revenue, the Eras Tour has left an indelible mark on the U.S. economy. Taylor underscores the high potential of the entertainment industry--that concerts, travel, and experiences can be an economic catalyst.

As the year winds down, it's time to start thinking about one inevitable task – preparing your federal income taxes. While the process may seem daunting or too far ahead in advance to start, proper and early, tax prep can maximize your returns. Below are a couple of tips to best prepare for your federal income taxes. Gather Your Documents Early The key to a stress-free tax season is organization. Start by collecting all the necessary documents, including W-2s, 1099s, receipts for deductible expenses, and any other relevant paperwork. Create a designated folder for these documents to avoid last-minute scrambling. Stay Informed About Tax Law Changes Tax laws are subject to change, and staying informed about the latest updates is crucial. Regularly check the IRS website or consult with a tax professional to ensure you are aware of any changes that may affect your tax situation. Being informed will help you make strategic decisions and take advantage of available deductions. Explore Deductions and Credits Take the time to understand the deductions and credits available to you. Common deductions include mortgage interest, student loan interest, and charitable contributions. Additionally, look into tax credits, such as the Child Tax Credit or the Earned Income Tax Credit, that can significantly reduce your tax liability. Organize Your Financial Information Organize your financial information in a way that makes sense to you. Consider using accounting software or apps to track income, expenses, and receipts throughout the year. Having a clear overview of your financial situation will streamline the tax preparation process. Consider Hiring a Tax Professional If your financial situation is complex or if you find the tax code overwhelming, consider seeking professional help. A certified tax professional can provide valuable advice, ensure accurate filings, and help you identify opportunities to minimize your tax liability. Plan for Retirement Contributions Contributing to retirement accounts not only secures your financial future but can also provide immediate tax benefits. Explore options like 401(k)s and IRAs and contribute the maximum amount allowed. These contributions may be tax-deductible, reducing your taxable income for the year. Review Your Filing Status Your filing status can impact your tax liability. Whether you're single, married, or a head of household, make sure you choose the filing status that aligns with your situation. Some statuses may offer more favorable tax rates or additional credits. File Electronically for Faster Processing Filing your taxes electronically is not only convenient but can also result in faster processing and quicker receipt of any refund. The IRS offers various e-filing options, and many tax preparation software tools simplify the process, guiding you through each step. Conclusion Preparing for your federal income taxes doesn't have to be a scary or mundane task. By staying organized, informed, and proactive, you can navigate tax season with ease. Whether you choose to tackle the process yourself or seek professional assistance, the key is to start early and be thorough. With the right preparation, you can ensure a smooth tax filing experience and potentially maximize your refund. Happy filing!

You might think celebrities never worry about money. But don't forget that many actors, musicians, models, and athletes came from humble beginnings. Below are 10 thoughtful quotes from celebrities on their perspective from money, investments, careers, and more. "If you stop at general math, you're only going to make general math money." - Snoop Dog "I always thought money was something just to make me happy. But I've learned that I feel better being able to help my folks. We never had nothing. Just to see them excited about my career is more of a blessing than me actually having it for myself." - Kendrick Lamar "I'm scared to death of being poor. It's like a fat girl who loses 500 pounds but is always fat inside. I grew up poor and will always feel poor inside. It's my paranoia." - Cher "What's money? A man is a success if he gets up in the morning and goes to bed at night and in between does what he wants to do." - Bob Dylan "Some people want to be models and they want the parties and the recognition. Then there are people like me. I come from a simple family. For me getting into modeling was a chance to make money and create a business." - Gisele Bundchen "Every once in a while I treat myself with a special purchase. The most extravagant I've been is when I bought a Tesla not too long ago. I like the way it drives, and I really like the idea of reducing my carbon footprint. But often, I've found, the least expensive things can be the most personally rewarding. Take my wedding, for example. The whole event cost a total of $500." - Woody Harrelson "Part of the reason I don't worry about what other people think about me is because I know that even if I lose all my money and my job and my opportunities tomorrow, I’m very capable of creating meaning without all of the stuff around." - Constance Wu "I don't like spending money on anything that goes away. I live in a big, expensive house, because I know that will appreciate in value. But I like to fly coach and I like to drive a Toyota." - Mark Duplass "It doesn't matter how much money I make, unfairness in prices really fires me up. Like shopping in L.A and a T-shirt costs $150." - Jennifer Lawrence "For the most part, I'm careful to save money, because I get a little nervous that the success I've been finding just won't keep going. I also work hard all the time to ensure it won't all go away. But lately, because I work so much, I've been feeling a bit like a workaholic...now the thought crosses my mind: What am I working for if I'm not going to get to enjoy things? So I've actually started to splurge on myself in ways I never have before." - Abbi Jacobson

Intuit Inc. announced this week that it will shut down Mint on Jan. 1, 2024. The company’s decision to discontinue the budgeting app could leave millions of users scrambling to find a replacement. Here’s what the news means for consumers and what to consider when choosing a new budgeting tool. What is the Mint budgeting app? Mint, acquired by Intuit in 2009, is a free personal finance app. Mint has been one of the top online budgeting tools for years. According to Bloombergy, the app had 3.6 million active users in 2021. Mint links to nearly all types of users’ financial accounts, such as credit cards, investments and loans; and was known for its comprehensive features, including the ability to review spending, track net worth and personalize goals and budgeting categories. What’s happening to Mint? Intuit said on Tuesday that it was “reimagining” Mint as part of Credit Karma and encouraged Mint users to switch to Credit Karma, its money management and credit score service. Credit Karma will absorb Mint by Jan. 1, Intuit said in a statement on Friday. While several Mint features will live on in the Credit Karma app (such as spending and net worth tracking), setting monthly budgets and customized categories won't be migrated over. It’s unclear whether these capabilities might move over eventually to the Credit Karma app. What should Mint users do next? First and foremost, save any stored information you don’t want to lose. You can download your existing Mint transaction data as an Excel spreadsheet by following the instructions on Mint’s help center page. Taking screenshots of helpful charts or insights is another great option. Then, make a list of the Mint features you used most often or that were most helpful to you. Refer to this list when exploring what replacements for Mint. What other budgeting tools & apps should Mint users consider? For Mint users looking for a new budgeting app, here are some other suggestions: Simplifi: Simplifi users can sync their bank accounts, credit cards, investment accounts and loans in one comprehensive dashboard. The interface is especially useful in tracking net worth, especially across multiple cash and investment accounts. Pricing: After a free trial, $5.99 per month or $35.88 annually. PocketGuard: PocketGuard allows users to create monthly spending limits in the app and utilizes a simple pie-chart visual reveal spending habits, which can be helpful in highlighting areas for expense reduction. Another popular feature: PocketGuard can help users negotiate their recurring monthly bills, such as cellphone bills. The service carries no additional charge unless a bill is lowered. Pricing: Four options — free version; $7.99 per month; $34.99 annually; $79.99 for a lifetime. You Need a Budget (YNAB): YNAB is a zero-based budgeting app, which has you make a plan for every dollar you earn. As soon as users get paid, they assign their income toward various categories, including spending, savings and debt. The app then prevents users from budgeting dollars they don’t yet have (when waiting for payday, for example). Account balances, monthly bills, and debt are then displayed on one dashboard for easy and simple tracking. Pricing: After a free trial, $14.99 per month or $99 annually. Goodbudget: Users who leverage an envelope budgeting might gravitate toward Goodbudget. The app uses the “envelope system,” in which users portion out their monthly income into spending categories. Every expense must be taken out of its designated envelope--no double-dipping allowed! The app is rated highly by couples and households that share a budget, since users can sync with others. But it does not sync with with bank accounts, so account balances must be added manually. Pricing: Three options — free version; $8 per month; $70 annually.

Every year, the IRS updates its contribution limits on retirement accounts to adjust for inflation and changes in costs of living. For 2024, those limits are rising. Below are the new 2024 investor contribution limits for 401(k) plans, individual retirement accounts and other retirement accounts: The IRS has increased the 401(k) plan contribution limits for 2024, allowing employees to defer up to $23,000 into workplace plans, up from $22,500 in 2023. The new amounts also apply to 403(b) plans, most 457 plans and Thrift Savings Plans. Contributions for individual retirement accounts are now $7,000 for 2024, up from $6,500 The Roth IRA contribution phaseout for married couples filing together will rise to between $230,000 and $240,000 in 2024, up from between $218,000 and $228,000 Catch-up contributions for savers age 50 and older will remain unchanged at $7,500. The IRS also increased income ranges to qualify for the retirement savings contributions credit and the ability to deduct pretax IRA deposits with a workplace plan. What does that mean for you and your retirement savings? Only about 1 in 7 retirement savers manage to max out their 401(k), according to a recent Vanguard study. If you aren’t sure whether you are saving enough for retirement, there are plenty of rules of thumb. Many financial planners recommend saving 10-15% of your salary, but only you can determine what percentage is best based on your situation.

Investing can be a daunting task, especially when aiming for long-term financial goals like retirement. Among the myriad investment options, index funds have gained significant popularity for their simplicity and effectiveness. Here we'll explore what an index fund is, discuss the pros and cons, and delve into how index funds can be a valuable asset in your retirement investment strategy. What is an Index Fund? An index fund is a type of mutual fund or exchange-traded fund (ETF) that aims to replicate the performance of a specific market index, such as the S&P 500. Instead of relying on fund managers to actively select stocks, index funds passively track a predetermined set of stocks or bonds that make up the chosen index. Pros of Investing in Index Funds: 1. Diversification: Index funds provide instant diversification by including a broad range of stocks or bonds. This diversification helps mitigate the impact of poor-performing individual assets on the overall portfolio. 2. Low Costs: One of the most significant advantages of index funds is their low expense ratios. Since they passively track an index, they require minimal management, resulting in lower fees compared to actively managed funds. 3. Consistent Performance: Over the long term, many actively managed funds struggle to outperform their benchmark indices. Index funds, by design, aim to match the performance of the index, providing investors with a reliable and consistent investment strategy. 4. Accessibility: Index funds are accessible to both novice and experienced investors. Their straightforward approach makes them an excellent option for those looking to enter the world of investing without a deep understanding of the market. Cons of Investing in Index Funds: 1. Limited Upside Potential: While index funds offer stability, they may not deliver the same potential for high returns as some actively managed funds. This is because they are designed to replicate the market's overall performance rather than seeking out top-performing assets. 2. No Active Management: The absence of active management means that index funds won't react to market changes or individual stock performances. If a stock within the index is underperforming, the fund will still hold it until the next rebalancing. Using Index Funds for Retirement Investing: 1. Long-Term Growth: The buy-and-hold strategy associated with index funds aligns well with the long-term nature of retirement investing. Over time, the compounding returns can contribute significantly to the growth of your retirement portfolio. 2. Risk Mitigation: Index funds, with their diversified approach, help reduce the risk associated with individual stock or sector volatility. This is particularly beneficial for retirement investors looking for a stable and predictable income stream. 3. Cost-Efficient: The low fees associated with index funds ensure that a significant portion of your investment capital remains untouched, contributing to your retirement savings. Conclusion: When it comes to retirement investing, index funds are a straightforward yet effective strategy. By mirroring the performance of broad market indices, index funds offer diversification, low costs, and consistent returns—all elements crucial for achieving long-term financial goals. Whether you're an avid investor or just starting out, incorporating index funds into your retirement portfolio could be a prudent step towards financial security in your golden years.

When it comes to building wealth, one of the most crucial tools at your disposal is budgeting. Budgeting is not just about restricting your spending; it's a strategic approach to managing your money and achieving your financial goals. Understanding Budgeting: Budgeting is essentially a plan that helps you allocate and track your finances, such as income and expenses, in an organized and intentional manner. It provides a roadmap for your finances, ensuring that you're aware of where your money is coming from, where it's going, and how you can make it work most effectively for you. Types of Budgeting Methods: 1. Traditional Budgeting: This method involves creating a detailed plan for income and expenses over a specific period. Most people track their income and expenses on a monthly basis. It helps people track their spending, identify areas where adjustments can be made, and set up goals to save for 2. Zero-Based Budgeting: In zero-based budgeting, every dollar is assigned a purpose. The goal is to "spend" every dollar on paper, whether it's for bills, savings, or investments. This method encourages a proactive approach to money management, leaving no room for unaccounted expenses. 3. Envelope Budgeting: This method involves allocating cash into envelopes for different spending categories. It's a tangible way to control spending, as once the envelope is empty, there's no more money to spend in that category for the month. It removes the temptation to spend frivolously on debit and credit cards, especially credit cards with high interest 4. 50/30/20 Budgeting: A highly popular way to manage finances, 50/30/20 budgeting suggests allocating 50% of income to needs, 30% to wants, and 20% to savings and debt repayment. This method provides a simple guideline for balancing essential expenses, discretionary spending, and financial goals. Five Reasons Why Budgeting Matters: 1. Financial Awareness: Budgeting increases your awareness of your financial situation, helping you make informed decisions about spending and saving. 2. Goal Achievement: Whether it's buying a house, going on a dream vacation, or saving for retirement, budgeting is instrumental in realizing your financial goals. 3. Debt Management: By tracking your expenses, you can identify areas to cut back and allocate more funds toward paying off debts. 4. Emergency Preparedness: Budgeting allows you to build an emergency fund, providing a financial cushion for unexpected expenses. 5. Stress Reduction: Knowing where your money is going reduces financial stress. According to a survey by Bankrate, 56% of women and 47% of women said that financial anxiety and stress adversely affected their well-being When it comes to managing money, budgeting stands out as a fundamental tool. It's not about limiting yourself but rather about providing yourself with the resources to build wealth and save for retirement. Choose a budgeting method that aligns with your lifestyle, and keep yourself accountable in reaching both your short- and long-term financial goals. Remember, budgeting is not a one-size-fits-all solution; it's a personalized roadmap to financial independence.