Latest news with #BobbiRebell
Yahoo
7 days ago
- Business
- Yahoo
Audit & adjust your spending to reach your 2025 savings goals
2025 is almost halfway over, which means it's a perfect time for people to reevaluate their annual savings goals, spending habits, and income. CFP® and personal finance expert Bobbi Rebell sits down with Wealth's Brad Smith for a conversation to share her strategies on acclimating to a new budget and unnecessary spending. To watch more expert insights and analysis on the latest market action, check out more Wealth here. All week long on wealth, we're conducting your mid-year financial checkup. If you're one of the Americans who wanted to save more or spend less in 2025, you set this at the outset of the year as one of your goals. Well, guess what? This is your opportunity for a progress report. I'm joined in studio by Bobby Ribell, who is the CFP and personal finance expert. Bobby, good to have you here in studio with us. So, let's talk about these mid-year check-ins. How can a mid-year check-in and audit, how can this help with some of your spending habits? Okay. Well, the first thing you want to do is you want to look back at your history because we learn so much from history, we know. So you want to look at not your New Year's resolutions, Brad. You want to look at your New Year's expectations. And think about how you did relative to that. So look at how you did in terms of your income. What were you expecting? Did you expect to get a raise? Maybe you got it, maybe you didn't. Did you expect to earn money in overtime? How did your actual earning come in based on your expectations? And then you want to think about how your spending went. What were your expenses? Were they higher than expected? Did you have some surprises? And of course, think about where you are in terms of your debt. Did you make the kind of progress that you would hope to make? And finally, savings and investments. So, take a holistic point of view. So once you take that in, what do you do with that information? You need to analyze it. You need to actually take the time. I know we talk about being mindful with our money these days, and I talk about financial wellness a lot. But the truth is that really matters, taking the time to assess how you did. And the interesting thing is, there are some things we can control and some things we can't control. So think about what you could control in terms of your income, right? How much, how did you do? Did you take the time to ask for that raise? Did you offer to work the overtime? Did you really get going on that side hustle? How did that income come, and what did you have control of? And the same thing with the spending. Did you get pulled into spending things that you, spending on things that maybe you regret a little bit? But also, I think people should give themselves a little bit of a break. This year has been tough. There's a lot of things that hit us that were not in our control. So we need to give ourselves a little love and remember things like inflation, things costing more, we couldn't control that. Think about though what you could do differently. That's why I needed to go to that Beyoncé concert. It just had to happen, even though it would have been overspending by normal years. But how do you adjust and pull back from overspending and course correct? Yeah, so you want to really think about how you're spending. Think about why you're spending. So you had to go to the Beyoncé concert. You had to. And, and you know, we can talk about how you manage your summer spending, how you might think about your priorities, but really think through what you can do to take better control and spend more deliberately. So that might mean little, you know, tricks and tips. So write down your budget, put it somewhere where you can see it, but then take it a step further. I like to think about renewing your budget vows. So you put, maybe on your refrigerator, whatever it is, your spending plan, your budget, what you have, and then you get used to it. So you don't really see it anymore, take it down once a week, once every two weeks, put it in your calendar as a reminder, rewrite it, adjust it, constantly rework it, because life happens and it may not be realistic anymore. So constantly checking in with that. Had to. You also might want to do some little tip, little tips and tricks like putting when you're shopping online, put your stuff in your wish list, not your cart. It's one extra step. Remove that credit card from inside your, you know, that remember, when your computer remembers it, you know how that is. You want to remove that. Wait to make those peer, those purchases, and of course, unsubscribe to those retailers who love to remind you that every day is the best sale ever. Every day is your last chance to get that deal that you know you want to get. And I also say, shop your closet and your home. Not just clothing. We tend to buy things that we already have in our home just because we can't find it. It makes sense to get organized. And then, you know, we talked about the work in, that Walmart work in. It's not, it's not a bad thing to buy a dupe. Own it. Right. Yeah. Yeah. That's facts. You've got a lot of good vendors or vendors on Canal Street who could sell you a dupe, for sure here. Yeah, well those are forgeries. We're talking legit dupes. We're keeping it above board, legal, inspired by, inspired by. How do you leave room in your budget for those summer vacations and other fun activities? Generalizing the two versus inspired by. Like Beyoncé concerts, right? Like Beyoncé concerts. Right. So you want to think about your priorities and really write them down, and think about where do you get the best bang for your buck. And it might be one giant splurge event like, you know, a Taylor Swift or Beyoncé concert, and that may be it. And then, you know, you can just say, you know what's the best value for the money in the summer? Being lazy. Just chill with your friends. It's okay to spend less and really make sure that you find a way to get the things that matter the most to you. Absolutely. Like Beyoncé. It's all about Beyoncé today. Exactly. The, the, the she economy powered by Beyoncé. Thank you so much for joining us. Thanks for having me.
Business Insider
29-05-2025
- Business
- Business Insider
7 things smart people do now to get out of debt soon
If you're not earning a lot, getting out of debt may seem out of reach — but it's not impossible. From automating payment to deciding on a debt payoff strategy to avoiding extreme budgets, smart money moves can help you get out of debt soon, regardless of how much you earn. 1. Automate your debt payments Setting up automatic debt payments is a great first step to paying off debt. "Set up regular payments from your checking account right when you get paid to pay down your debt," says Bobbi Rebell, CFP and personal finance expert with "If the money goes to the debt first, you won't be able to spend it elsewhere." Next, work on increasing how much you can put toward debt. "Focus on freeing up more of your money so you can increase your debt payments," she continues. "Small modifications add up and can make a huge difference in not only paying down debt but preventing future debt that has a nasty habit of creeping up the minute we let our guard down." 2. Decide on a debt payoff strategy And you can't just decide to pay off debt. You need a strategy, experts say. "There are a few common approaches to paying off debt regardless of income: avalanche, snowball, and consolidation," says Sabino Vargas, CFP, Senior Financial Advisor at Vanguard. The avalanche method focuses on paying off debt with the highest interest rate first while making minimum payments on other debt, he explains. For the snowball method, you pay the debt with the smallest balance first while making minimum payments on the other debts. Once that debt is paid off, you reallocate payments to the next lowest balance, and so on. Debt consolidation might be an option for people with a significant amount of debt, and it could save on interest. "In this method, you combine multiple debts into a single loan, often with a lower interest rate, leaving you with one monthly payment to manage," Vargos says. 3. Be lazy. Yes, really! "One of the most powerful things you can do is to be lazy and do less," Rebell says. "What I mean by this is just don't motivate yourself to go out for coffee. Instead, make it at home or just skip it. Spot something you want on Instagram? Before you buy, tell yourself you will come back to it later, and you may. Or you may not." Another "lazy" tip that can help eliminate debt? Don't store your credit card numbers on your devices. "[This] will force you to make the effort to put in the numbers each time. And hopefully you will … take the lazy way out and just not bother!" Rebell says. 4. Avoid extreme budgeting Sure, sticking to a budget is one way to properly allocate money to paying down debt, but it won't work if that budget is too restrictive or extreme, which Rebell says could backfire. And that cliché about millennials not being able to afford to buy a house because of their penchant for avocado toast or fancy coffees? Not accurate, says Alex Moore, Vice President and Financial Advisor at Wealth Enhancement. "Skipping lattes or avocado toast alone isn't going to pay off your student loans," he says. "The average American spends $2,091 a year on eating out and $2,050 a year on entertainment. The math doesn't work out. "What will have an impact is tracking and being intentional with each dollar you spend. I prefer cash because it forces you to think about each purchase and decide if the spend is worth it," he says. "Sometimes you really do need a latte to get through the day, and that's OK." 5. Don't ignore the rest of your finances Even if your main focus is paying off debt, don't ignore the rest of your financial picture. First, pad your emergency fund so that next time an unexpected expense pops up, you won't be forced to put it on a credit card. "Three months of expenses is the typical number," Moore says. "Without that cushion, you'll end up accruing new debt as you pay off old debt. The emergency fund gives you some margin for error if an unexpected expense pops up, even if it's not mathematically the most effective use of the dollars. Reduce your spending and get your emergency fund set up first before you begin aggressively paying off the debt." It's also wise to balance debt payment with saving and investing. Vargos warns against forgetting about your employer-matched 401(k). "When it comes to saving and investing, continue to save toward your retirement plan so you can take advantage of your employer's match program and not leave money on the table," he notes. 6. Know your debt Assess the type of debt you have. If it's high-interest debt from credit cards or personal loans, focus on paying that off before investing or saving, since those high interest rates cause your debt balances to grow more quickly. "Take the time to understand the math of your debt. That means knowing how much you owe and the interest rate, aka the cost associated with that debt," Rebell says. And think about your debt's interest rate versus the rate of return on your investments. "If the projected rate of return is higher than the interest rate, consider allocating more money toward investments or saving in higher-yielding accounts," Vargos says. And when it comes to getting serious about paying off debt, high earners aren't immune. "When I encounter debt, it's typically with high-income, high-debt folks," Moore says. "For them, the challenge is accepting that they need to reduce their lifestyle. It's a bitter pill to swallow when your friends are going on expensive vacations and you're not. The process of paying off debt is as much psychological as it is numerical." 7. Know when it's time for professional help If you have more than $7,500 in unsecured debt (such as credit card debt, personal loans, and medical bills) and are feeling completely overwhelmed, you might consider a debt relief company. Debt relief companies provide a service called debt settlement, where they negotiate with your creditors to settle your debts for less than the amount you originally owed. Once enrolled in a debt relief program, you make one monthly deposit into a dedicated savings account where you build up funds for settlements. Each time the debt relief company negotiates a settlement with a creditor (and you've approved the terms), both the settlement amount and the debt relief company's fees are paid from your dedicated account. This process continues until all your enrolled debts are resolved, usually 24-48 months. Note that even though the debt relief company is negotiating with your creditors, it can't guarantee results. You don't pay the debt relief company fees for their services until they've negotiated a settlement and you've approved it. The process may damage your credit score — but not as much as bankruptcy.
Newsweek
23-05-2025
- Business
- Newsweek
Americans Have a 'Magic Number' They Need for Retirement
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Americans believe they need a "magic number" to retire comfortably, far beyond what many have been able to save. According to a study from Northwestern Mutual that polled more than 4,600 adults in January, Americans think they need $1.26 million to comfortably retire. For those aiming to retire in 30 years, the financial math to reach this goal is sobering. To attain the $1.26 million retirement goal based on a 7 percent annual return in investments, a person would need to put away approximately $1,035 each month, which amounts to $12,420 annually. If they're saving 15 percent of their income—a commonly recommended target for retirement savings—this would require an annual salary of around $82,800, more than $20,000 more than the national median salary of $61,984. However, the study reveals that 25 percent of Americans have saved only one year or less of their current annual income for retirement, and over half fear they will outlive their savings. Gen Xers, who are next in line to retire after baby boomers, are particularly concerned, with 54 percent believing they will not be financially prepared when the time comes. Why Is Retiring Getting Harder? While commonly touted as the "golden years" of life, a comfortable retirement is becoming out of reach for plenty of Americans. In an era where the cost of living continues to outpace wages and traditional retirement structures have all but vanished, saving for retirement has transformed from a long-term financial goal into a daily struggle for many Americans. Bobbi Rebell, CFP and personal finance expert at frames the situation starkly. "The recent market downturn, despite its recovery, was a big reminder that retirement funding is fragile," she told Newsweek. "It has never been easy but it has been something that Americans did not have to think about as directly in the past because many had pensions as well as family support systems in place to help control the variables." That foundation has steadily eroded. Gone are the days when defined benefit pensions formed a safety net for retirees. Today, most workers rely on self-directed savings plans—if they're lucky enough to have access to them at all, Rebell explained. "Not only have defined benefit plans like pensions become rare," Rebell notes, "but self-directed defined contribution plans, like 401(k)s, are not available for many people who work in the gig economy. It is no wonder people feel vulnerable and are lowering their expectations when it comes to their retirement nest egg." Composite image created by Newsweek. Composite image created by Newsweek. Newsweek Illustration / Canva Ashley Morgan, a debt and bankruptcy lawyer and owner at Ashley F Morgan Law, echoes the difficulty facing workers, especially in a volatile housing market. "Cost of living has been steadily on the rise. Saving for retirement is difficult for many with living costs rising and retirement costs being stagnant," she told Newsweek. She adds that one of the most common retirement strategies—building home equity over time—is increasingly out of reach. "Now, since younger generations are not buying properties or house prices are so high that mortgage payments are substantial, saving for retirement is not possible when you have a mortgage." Renters, in particular, are at a disadvantage, often facing rising housing expenses that eat into any potential savings. "With increasing rent," Morgan explains, "it means increases in income are automatically offset, at least to a certain degree." Another significant challenge is the shift in employment patterns. "Many people work for smaller companies or perform contracting jobs like gig work," says Morgan. These jobs typically don't offer retirement benefits, and the lack of employer matching makes it less appealing to contribute independently. Frequently changing your job also makes it difficult to accumulate long-term savings. Then there are student loans—a burden that can linger well into what should be peak retirement savings years. While some of these borrowers have recently been protected by pandemic-era rules that stopped the collection of unpaid education debts, the Trump administration has now ordered the Department of Education to begin resuming forced collections, which can result in wage and Social Security garnishment. "I unfortunately see people in their 60s still paying student loans, some for their own educations and some for their children," Morgan said. "These student loans often are paid at the expense of saving for retirement." These compounding factors, which have made saving more difficult, also mean many are working later in life than previous generations. A 2023 report from the Pew Research Center revealed that about one in five Americans aged 65 and older were still working, almost double the proportion from 35 years ago. According to the Bureau of Labor Statistics, 8.2 million people over 65 were employed in February 2015. By February 2025, that number had grown to 11.1 million, marking a 35 percent increase. A recent study by Transamerica Center for Retirement Studies found that more than half of current workers—52 percent—plan to work at least part-time in retirement. While acknowledging these challenges, Rebell does see a silver lining in the growing trend of older workers. "The growing trend of older workers is not necessarily a bad thing. Working gives purpose and can provide an extra layer of financial security," she said. "As people live healthier for longer lives, staying in the workforce longer makes a lot of sense." But for millions of Americans, working longer may not be a choice, but a necessity. With financial pressures mounting and support systems weakened, the modern retirement landscape is less a peaceful reward for years of work and more a shifting target that is becoming harder and harder to attain.
Yahoo
12-05-2025
- Business
- Yahoo
Advanced savings strategies for when you've mastered the basics
Just less than half of Americans have enough money saved up to cover three months of expenses, according to a Pew Research survey. CFP® and personal finance expert Bobbi Rebell explains her various approaches to tracking savings, such as setting new goals and avoiding "lifestyle creep" that pushes people to spend more for higher costs of living. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Sign in to access your portfolio
Yahoo
12-04-2025
- Business
- Yahoo
Most Americans Making $75K or Less Have Overdue Bills: 2 Ways This Wrecks Your Finances
Keeping up with bills is challenging, and many Americans are falling behind. A recent Talker Research and EarnIn survey of Americans who earn $75,000 or less a year found that 55% have between one and four overdue bills during any given month. Find Out: Read Next: While having overdue bills may be the norm, this behavior has both short- and long-term consequences. Before skipping a payment, here's what you need to know about how this can affect your finances. Missing a bill payment can add to the amount of money that you owe in the form of added fees and additional interest. 'In the short term, you are going to be wasting money that you could be saving by paying late fees and potentially interest on those overdue bills,' said Bobbi Rebell, CFP and personal finance expert at 'In fact, some credit card companies increase your interest rate with a late bill.' It can also impact your mental health. 'Having constant overdue bills and feeling like you are playing catch-up takes a huge toll on mental health and may literally keep you up at night,' Rebell said. 'That's a terrible way to live.' Check Out: Having consistent overdue bills can negatively impact your credit score. 'Over the long term, not only can it severely impact your credit score, it can also drag down your ability to accomplish your financial goals,' Rebell said. 'Once a bill is more than 30 days overdue it can be reported to the credit agencies. That lower score will hurt your ability to get loans — including mortgages — and if you do get approved, it can mean you are getting less favorable terms.' When you have overdue bills, it can feel impossible to catch up, but with proper planning it's possible to get back on track. The first step is determining which bills to pay first. 'Understand that not all bills are of equal importance,' Rebell said. 'Take the time to go through them and understand the consequences of paying each of them late. For example, some bills do not have any financial consequences for 30, 60 and even 90 days. 'Some, like credit cards, have serious financial consequences in that if you don't pay on time, you not only get hit with late fees, you also will pay interest on the overdue amount, and usually on any current charges as well,' she continued. 'That's an expensive delay!' You also need to consider the impact of each unpaid bill. 'For example, paying a utility late could result in a loss of service at some point,' Rebell said. 'Use this information to prioritize which bills to pay if you have to make that decision.' Next, call your lender or providers and see if there is any room for negotiation. 'In some cases, for example with some medical bills, you can negotiate a lower balance or a deferred payment schedule,' Rebell said. 'Credit card companies will sometimes let you adjust the payment date, so be sure to ask. Also with some bills, such as mortgages, the due date may be the first of the month, but there is no penalty as long as you pay it by the 15th.' If you are consistently struggling with overdue bills, you may need to reassess your overall budget. 'That might mean cutting back on anything you can, even if it is just until you clear your bills,' Rebell said. 'It also might mean asking for a raise, if that is possible, or taking on some side hustle work to boost your income. At the end of the day, you have to make the math work by changing the numbers rather than just trying to keep up in an exhausting effort to pay unaffordable bills.' More From GOBankingRates 6 Used Luxury SUVs That Are a Good Investment for RetireesHow Far $750K Plus Social Security Goes in Retirement in Every US Region7 Overpriced Grocery Items Frugal People Should Quit Buying in 202525 Places To Buy a Home If You Want It To Gain Value This article originally appeared on Most Americans Making $75K or Less Have Overdue Bills: 2 Ways This Wrecks Your Finances
