Latest news with #2025ModernWealthSurvey
Yahoo
2 days ago
- Business
- Yahoo
Jaspreet Singh: Don't Do These 5 Dumb Things With Your Money
The Charles Schwab 2025 Modern Wealth Survey found that 27% of Americans didn't think they could become financially comfortable within their lifetimes, while another 25% felt it was only possible with some changes. Read Next: Learn More: If you're wondering why you're not in a good financial situation, it might not simply be your income or too many impulse purchases. In a recent video, attorney and finance expert Jaspreet Singh explained five less obvious money mistakes you might be making and provided tips to make wiser choices. Lacking Priority for Your Money Singh said that some people are focusing on the wrong things given their financial situation. He used the stages of crawling, walking and running to illustrate changing money priorities. If you owe high-interest debt, you would fall into the crawling category, and your focus should be on paying off the debt that's costing you money rather than investing. Singh explained that your credit card rate might be from 15% to 28%, which is far higher than the 10% average return on stocks. After that debt is gone, you'd enter the walking stage, where you need to have a $2,000 emergency fund for your financial security. You can then move on to the running stage and start investing in assets that help you build wealth. Another YouTube video from Singh included recommendations like dividend stocks, real estate and exchange-traded funds. Check Out: Thinking Your Credit Score Means Wealth As of March 2025, Experian reported that 23% of Americans had at least an 800 FICO score, which put them in the top 'excellent' category. While many people strive for this score, Singh explained that it doesn't make you rich or reflect your assets, education or career success. 'Here's the reality: Your credit score really does not matter,' Singh said. 'All it is is an indication of how good you are in paying your bills, and it doesn't even do the best job at that.' He did note that good credit can make it easier to get loans, buy a house or score a better interest rate, but the associated debt can also make it harder to build wealth. That's especially true when you're financing things that depreciate, like cars. Living Fake Rich Singh said many people buy things that will continually cost them money rather than help them build wealth. For example, you might have a high salary and buy an expensive home to show off. But even if that house appreciates and you pay off the loan, you'll still have to cover ongoing costs for property taxes, insurance, utilities, maintenance and more. To avoid falling into this trap, carefully consider affordability for your home purchase and follow Singh's suggested 75-15-10 rule for your income. The 75% represents your maximum spending rate for all expenses, while you'd invest at least 15% and save 10% of your earnings. Singh also advised against seeing your house as an investment and explained that more of your payments will go toward interest than principal payoff for many years. He recommended looking into additional assets, like businesses and rental properties, that can grow your wealth. Not Investing in Yourself Singh said a common mistake is not using any of the money you have to invest in yourself, which can cause you to lose time or miss the chance to make more money. One option is to hire people to do certain tasks, like driving you to work, mowing your lawn or cleaning your house. Even if you gain only a few extra hours, outsourcing these tasks might be what allows you to start a side hustle or simply enjoy time with your family. Another is investing in books, classes and other forms of education, which Singh said might significantly pay off if you can boost your earnings. He added that a growth versus scarcity mindset is important for this decision. 'You have to be willing to actually spend that money and know when it's okay to let go of that money if it's going to bring you more value in return,' Singh explained. Plus, you can invest in yourself by spending money on actual investments. Singh said some people keep their money in bank accounts out of fear of the risks of investing, but they lose given the low return, income taxes due and inflation. He recommended having a long-term mindset for investing and carefully researching your options, such as index funds. Warren Buffett is also a proponent of investing in low-cost index funds and holding on to them, which he said makes the most sense when investing, CNBC reported. Investing Like You're in Vegas Impatience with investing can also get people in trouble. For example, new investors may turn to riskier picks like crypto and options in hopes of a fast return rather than invest in more traditional assets over a few decades. Singh explained that this mistake can lead to losing everything. 'So, you got to decide: Do you want to have that rush and excitement and never build wealth, or do you want to have the long-term sustainable wealth, not have the rush and the excitement, but actually have the potential to build real wealth with much less risk?' he said. If you've made this mistake, Singh suggested trying the safer route. Being consistent and patient with investing is the key. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The 5 Car Brands Named the Least Reliable of 2025 Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on Jaspreet Singh: Don't Do These 5 Dumb Things With Your Money
Yahoo
11-07-2025
- Business
- Yahoo
Feeling flush with wealth these days? Neither is anyone else.
How much money do you need to feel financially comfortable? More. That's the headline from Charles Schwab's 2025 Modern Wealth Survey out this week. Nearly two-thirds of survey respondents say it feels like it takes more money — quite a bit more — to be wealthy today when compared with last year. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy The magic number to feel financially comfortable is $839,000 — a big jump from $778,000 in 2024. To be considered 'wealthy' people think it takes $2.3 million, up from $1.9 million in 2021. Why the long faces? The rising cost of living, a sense that the economy is worsening, and high interest rates are to blame. 'People feel like the bar to achieving wealth has gone up as they think about the effects of forces like inflation,' Rob Williams, managing director of financial planning at Charles Schwab, told Yahoo Finance. 'People are focused on the challenges of the here and now, while their financial futures are harder to grasp.' Read more: What is inflation, and how does it affect you? Despite that gloomy outlook, a third of Americans think they are either on track or already wealthy, especially younger people, according to the research. More than 4 in 10 Gen Zers are feeling that vibe. As for boomers, not so much — only 2 in 10 baby boomers are feeling survey has findings on the factors that contribute to Americans' personal definitions of wealth. Spoiler alert: It isn't all about money. 'Happiness, health, and relationships are also very important when it comes to feeling wealthy,' Williams said. 'Many people don't just want more money — they want more meaning, and that's something to keep in mind when you're planning out long-term goals and how to invest. Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including the forthcoming "Retirement Bites: A Gen X Guide to Securing Your Financial Future," "In Control at 50+: How to Succeed in the New World of Work," and "Never Too Old to Get Rich." Follow her on Bluesky. Sign up for the Mind Your Money newsletter 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
