Latest news with #DennisShirshikov
Yahoo
2 days ago
- Business
- Yahoo
9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
There's only so much you can control about your financial situation. You can't snap your fingers and magically increase your salary. The reality is that if you're in the middle class, one of the biggest changes you can make is downsizing to save money on monthly expenses. Find Out: For You: But that doesn't mean you have to give up everything you enjoy in your daily life. There are some pretty common expenses and purchasing habits the middle class can easily cut back on that can seriously improve their finances — especially for people with debt. One of the easiest areas for middle-class families to save money, according to finance expert, Dennis Shirshikov, is by evaluating and downsizing their subscription services. 'Many households subscribe to multiple streaming services, digital magazines and monthly delivery boxes, often spending more than $100 per month,' he said. 'While individually these services seem affordable, collectively they can add up significantly.' A practical approach he recommended is to review all subscriptions and eliminate those that are rarely used or overlap in content. 'For example, choosing one or two favorite streaming platforms instead of subscribing to five can save around $30 to $50 monthly,' Shirshikov said. Read Next: If you're in the middle class and carry debt, you know how much of your monthly budget it can eat up. Your balance keeps growing, and you can struggle to even make the minimum payments on top of all your other bills. With debt settlement, their experts will negotiate directly with your lenders to agree on a reduced balance, meaning you could pay less than what you owe. With debt consolidation, all your debt is combined into one new loan, ideally with a lower interest rate. This helps you pay off your balance faster and saves money on interest payments. Another significant expense for many middle-class families is dining out and takeout, Shirshikov said. 'While convenient, frequently eating out can quickly become a financial drain,' he said. 'According to the Bureau of Labor Statistics, the average household spends about $3,000 annually on food away from home. Reducing the frequency of dining out by planning meals and cooking at home can result in substantial savings.' According to Shirshikov, downsizing vehicle-related expenses is another effective way to save money. 'Many middle-class families own multiple cars, which can be costly when considering insurance, maintenance, fuel, and loan payments,' he said. Shirshikov said evaluating the necessity of each vehicle and considering alternatives like carpooling, public transportation or even biking can lead to significant savings. 'For example, selling a second car that is rarely used can save on insurance and maintenance costs, potentially freeing up $200 to $400 monthly.' 'The rise of streaming services and online content has made traditional cable packages less essential,' Shirshikov said. 'Middle-class families can often find more cost-effective options by downgrading their cable packages or switching to internet-only plans combined with streaming services. According to a report by the average cable bill in the U.S. is about $217 per month.' He said by cutting the cord and opting for a high-speed internet plan paired with a few streaming subscriptions, families can save upwards of $100 per month. Justin Godur, finance advisor and founder of Capital Max, agreed. 'Often, we subscribe to expensive cable packages thinking we need numerous channels or premium content,' he said. However, he noted that most people don't utilize half of what they pay for. 'Opting for selective streaming services or a basic cable package can save a substantial amount each month.' 'While the allure of the latest smartphone model is strong, these devices can be incredibly expensive,' Godur said. 'Opting for a model that's one or two generations older can still provide excellent functionality at a fraction of the cost.' Shopping for groceries — or medications — can quickly become expensive when opting for brand-name products. 'Many store-brand items are nearly identical in quality but are significantly cheaper,' Godur said. This simple switch can save a noticeable amount each month without sacrificing quality. 'Gym memberships are beneficial, but often underutilized,' Godur said. 'Considering the cost, it's practical to switch to cost-effective or free alternatives like outdoor exercises, community sports groups or even online workout classes that are much cheaper or free.' Shirshikov shared a similar view, saying many people pay for memberships they rarely use. But he also advised that when the weather permits outdoor activities like running, biking or hiking, those in the middle class should explore home workout routines or local community centers with lower fees. 'This can be an effective way to stay fit without the high costs,' he said. This last tip is arguably a bit tired, but it doesn't make it any less true. 'A daily coffee purchase at high-end cafes can quietly drain your wallet,' Godur said. 'Investing in a good coffee maker at home can dramatically cut down your monthly expenses and you might find you enjoy the taste of your home brew just as much.' At the very least, just try to cut down on your Starbucks trips, and you could find yourself with an extra $100 in our savings account every month. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard The New Retirement Problem Boomers Are Facing 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 9 Downsizing Tips for the Middle Class To Save on Monthly Expenses
Yahoo
7 days ago
- Business
- Yahoo
I'm a Financial Expert: 5 Common Budgeting Tips You Shouldn't Follow
When it comes to budgeting, advice is everywhere: Your favorite money blog, that one TikTok finance guru, even your well-meaning cousin who swears by cash-stuffing envelopes. But not all budgeting tips are created equal. In fact, some of the most common ones can actually hold you back, stress you out or just plain not work for your lifestyle. For You: Discover More: GOBankingRates spoke with Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit, to take a look at a few popular budgeting 'rules' that might be worth rethinking. 'Budgeting is a key component of financial management and all advice is not created equal. Through the years, there have been a couple misguided 'tips' that people really ought to ignore,' Shirshikov remarked. Below are the top ones he recommends avoiding. And while reining in things like dining out or entertainment might sound like a quick fix, it can actually do more harm than good. 'Extreme frugality can cause people to burn out or, worse, leave their budgets all together,' said Shirshikov. A more measured response would be to appraise discretionary spending and strike a balance — cutting out non-essentials, but still allowing for things that bring happiness and value. After all, budgeting is not only about denying yourself pleasures; it's about focusing your spending on your long-term goals. Check Out: It's well-intentioned advice that has been shared widely, but according to Shirshikov, it can be unrealistic for a lot of people, especially when you are just starting out. Trying to save six months' worth of living expenses might sound like a worthy ambition, but the reality is, it can take a long time to achieve. In fact, CBS reports that most Americans can't afford a$1,000 emergency expense. 'Instead of worrying about a certain number, I'd suggest creating a small emergency fund first, the kind that can get you through a month or two of must-haves.' With that in hand, he said you can progress to building up your savings cushion little by little. Progress, not perfection is the key. While it's important to keep track of where your money is going, obsessing over every little purchase can be counterproductive and overwhelming. 'Most people feel smothered and defeated if they have to keep track of everything — including the coffee and the parking meter,' Shirshikov noted. A better approach may be to use budgeting software or apps with fancy algorithms that automatically do the categorizing for you, saving you the hassle of tracking every penny. The aim should not be micromanagement, but insight. 'The notion that you've got to have a ton of money to invest with is both an outdated one, and also a harmful one,' said Shirshikov. The sooner you start investing, the more time your money has to grow. Even small, regularly occurring investments in low-cost index funds can amount to big returns over time, thanks to compound interest. This myth often prevents people from creating wealth as it makes them think they have to have a big amount of money to begin with — and that's just not the case. While debt elimination is unquestionably essential, it isn't always the most intelligent long-term play to throw extra funds at high-interest debt while ignoring the need to save and invest. 'So many people only end up paying off their credit card in a cycle and never actually growing their wealth,' Shirshikov explained. He said a better balance would involve splitting your efforts between saving up for emergencies and paying down your higher-interest debts so you don't fall behind in other important areas of your financial life. Remember: Budgeting should empower you financially, not limit you. It's all about designing a system that services your needs best, and leaving enough space to alter it as your life changes. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The New Retirement Problem Boomers Are Facing This article originally appeared on I'm a Financial Expert: 5 Common Budgeting Tips You Shouldn't Follow 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
25-05-2025
- Business
- Yahoo
Single and Worried About Retiring? You're Not Alone
If you're single and stressing about retirement, you're definitely not the only one lying awake at night doing mental math. In fact, a new survey from Allianz found that Americans are literally more worried about running out of money than death. That's kind of a big deal to be losing sleep over. Whether you're flying solo by choice, circumstance or somewhere in between, figuring out how to retire comfortably on one income can feel daunting. According to Chris Heerlein, CEO of REAP Financial, saving for retirement is more challenging for single individuals because they lack the dual-income advantage that married couples or partners typically have. Find Out: Read Next: 'Without this financial support, single individuals need to shoulder all saving and investing responsibilities on their own, which can feel overwhelming, especially when faced with higher living costs.' The good news? Plenty of people are in the same boat — and there are smart, doable ways to navigate it. Here's what you need to do to prepare. Contributing to retirement accounts like 401(k)s and IRAs is crucial, said Heerlein, and if an employer offers a match, taking full advantage of it should be a priority. Building an emergency fund of three to six months' worth of living expenses is also essential to avoid dipping into retirement savings during unexpected financial setbacks. Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, agreed that single people should make an effort to maximize their personal savings vehicles, like a 401(k) or an IRA. 'The beauty of compounding means even if the amounts are small and consistent, it can grow big over time,' he said. This is because automating how funds are invested in retirement accounts via payroll deductions can help guarantee a more constant stream of contributions to your future retirement. Be Aware: According to experts, you need to come up with a plan for long-term healthcare costs and consider investing in long-term care insurance. By staying disciplined with savings and working with a financial planner to develop a strategy, it's possible for you to overcome challenges and secure a financially stable retirement. Shirshikov noted that another thing to keep in mind is establishing achievable goals according to your own specific situation. For example, figuring out a reasonable retirement goal should account for your lifestyle aspirations, potential medical expenses and other factors. Financial planners often recommend that singles should be saving a bare minimum of 15% of their pay or more, depending on their income and goals for retirement. As a single person, you will have to come up with a customized plan for saving for retirement that takes into account your current financial situation and long-term plans. As Shirshikov wisely noted: 'Through discipline, consistency and being strategic, any person, whether they are married or not, can lay a solid financial groundwork for the retirement golden years.' More From GOBankingRates 4 Affordable Car Brands You Won't Regret Buying in 2025 These 10 Used Cars Will Last Longer Than an Average New Vehicle This article originally appeared on Single and Worried About Retiring? You're Not Alone 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
07-05-2025
- Business
- Yahoo
5 Bad Money Habits That Are Harder on Your Wallet Than Paying Bills
Paying bills feels like the most painful part of adulting — but believe it or not, some of your everyday money habits could be draining your wallet even more. Try This: I'm a Financial Advisor: 10 Most Awesome Things You Can Do for Your Finances For You: The New Retirement Problem Boomers Are Facing 'I have seen firsthand how certain financial habits can compound problems for individuals who feel trapped by high bills and mounting expenses,' said Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit. While managing bills is a necessity, he explained there are underlying money habits that tend to exacerbate financial struggles, often without folks realizing the long-term consequences. These habits, left unchecked, can erode wealth and prevent people from improving their overall financial standing, even when they are already overwhelmed by their 'needs' bills. From sneaky spending patterns to financial blind spots everyone falls into, here are a few habits that might be costing you more than your rent or electricity combined. Overlooking Small, Regular Expenses 'One of the most destructive behaviors that people develop is that of discounting the small, regular costs that seem as though they don't matter on a day-to-day basis,' Shirshikov said. Things like subscriptions, convenience services and regular, seemingly harmless purchases can add up unchallenged — you won't miss spending $10 or $20 on a daily basis, perhaps, but in the long run, those little bits add up to hundreds of dollars that could easily be saved or channeled into other, more lifestyle-defining, financial aims. Consider This: 9 Things the Middle Class Should Consider Downsizing To Save on Monthly Expenses Not Saving for Emergencies One of the most common mistakes, according to Kevin Shahnazari, founder and CEO of FinlyWealth, is being paycheck to paycheck and not saving or setting aside funds for unexpected events. In fact, one U.S. News survey found that two in five Americans (42%) don't have an emergency savings fund. 'When individuals are not saving even a fraction of their income for the future, they put themselves in a situation where they are constantly scrambling to cover unexpected expenses,' Shahnazari explained. This can result in a stack of high-interest debt, which only makes the problem worse in the long term. Relying Too Heavily on Credit for Daily Needs Many, particularly those with high costs, use credit cards as a way to balance income and expenses. That may provide breathing space, but tapping credit to pay for staples — in particular, not paying off the credit card in full every month — adds to the financial pressure.
Yahoo
01-05-2025
- Business
- Yahoo
This Is the Best $1,000 You Can Spend in Your 60s
Turning 60 doesn't mean slowing down. If anything, it means getting smarter about how you spend your money. Whether you're already retired or still grinding through your workdays, there's one way to spend $1,000 in your 60s that delivers way more value than a fancy gadget or a spur-of-the-moment trip. Read Next: Learn More: Here's how to make your future self (and maybe your wallet) a whole lot happier. The smartest $1,000 to spend in your 60s, according to Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, is what he referred to as a 'Retirement Clarity Package.' This combines three items into one: a long session with a fee-only financial advisor, a visit with a fiduciary estate planner and a budgeting retreat. 'I've witnessed this mix alter not only financial plans but lives,' he said. Check Out: Shirshikov observed that the majority of people in their 60s are either retired or engaged in retirement planning. But few have a truly coordinated strategy across investments, taxes, Social Security timing, insurance coverage and estate planning. He said paying a fee-only Certified Financial Planner (CFP) for a one-time session — perhaps $400 to $500 — can reveal thousands of dollars in future savings, from finding the best way to take tax withdrawals to delaying Social Security to maximize payouts. Rules change, and so do your assets, even if you already have a will, according to Shirshikov. One client he worked with hadn't reviewed their will in 14 years. They had married again and didn't know that their brokerage account beneficiaries hadn't updated to reflect this change in their wishes. He noted that one adjustment, casual and over coffee with an advisor, spared what might have been a giant family headache. Shirshikov recommended booking a weekend just for yourself (or with your spouse) at a local Airbnb or a quiet retreat to write what you really want in retirement. 'No technology; just a notebook and an agenda,' he said. Here are some questions to ask: Can I walk through a typical day in my life? What fears still linger? Shirshikov said clarity like this is the North Star when your advisor starts impacting your distributions, investments and even housing decisions. 'In this stage of life we think about money all too often in defensive terms — cutting expenses, eliminating risk, ensuring the future. But clarity is a provocation. So you stop reacting and you start designing,' he said. More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early 4 Affordable Car Brands You Won't Regret Buying in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth Source Dennis Shirshikov, Growth Limit This article originally appeared on This Is the Best $1,000 You Can Spend in Your 60s Sign in to access your portfolio
