Latest news with #DennisShirshikov
Yahoo
10-07-2025
- Business
- Yahoo
4 Worst Money Habits Of Gen Z — And What To Do Instead
Gen Z gets a lot of heat for everything, from cancel culture to iced coffee obsessions. But when it comes to money? The truth is a little more complicated. Learn More: Try This: While this generation is breaking taboos around talking openly about finances, there are still a few habits that might be quietly draining your bank account. No shame here — we've all been there. Here, we break down some of the worst money moves Gen Z is making — and more importantly, what to do instead. According to Martin Lynch, president of Financial Counseling Association of America (FCAA), Gen Zers' biggest mistake is living from paycheck to paycheck, which he said is the case for roughly 60% of Gen Z –higher than for other age groups. 'Everyone wants to be paid more, but with the nation's economy in a state of flux, it's time to make adjustments and live within your means,' Lynch advised. That means creating a detailed, accurate budget and making reductions to live within it. If you're unsure how to create a budget, Lynch recommended contacting an FCAA credit counselor. They'll show you how to do it for free. (And a good counselor won't judge your budget or dictate what reductions are in order. You have to learn to make those decisions for yourself.) For You: Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit, noted that one of the most toxic issues he sees in Gen Z is uncontrolled subscription creep. 'Younger consumers with the tap of a finger are piling on streaming services and food-delivery apps and niche wellness platforms, and they don't know what their next renewal date is until that next bank alert,' according to Shirshikov. He said all of that comes to a head when you add in that occasional expense, since over a year, those $5 to $10 monthly fees can turn into a wallop of $200 to 400, yet those amounts never hit the budget. So, what's the antidote? In addition to the typical budget template, Shirshikov suggested a quarterly 'subscription sprint audit.' Basically, you set 30 minutes aside each quarter to list every recurring charge — cancel if it doesn't serve you and renegotiate when you can. Then add in there a digital-envelope system in a micro-banking app — where you allocate set dollar amounts to spending categories such as 'fun,' 'food' and 'subscriptions.' 'When there's no more money in each envelope, the app just says no more spend,' Shirshikov added. Another mistake Lynch has observed is that many Gen Z borrowers avoid managing their student loans. According to Nasdaq, Gen Z has an average payment that's $100 higher than millennials. 'We speak to lots of young people who have not buckled down and learned how to manage their loans in a way that makes sense for both their current circumstances and their long-term goals,' Lynch said. He noted that the Trump administration's 'Big Beautiful Bill' will change student loan repayment for new borrowers starting next year, but people who've already taken out student loans, especially those on the SAVE plan, need to learn about the options still available to them now. According to Lynch, Gen Zers need to start saving today. The gig economy has made income less predictable, for sure, but that actually makes creating an appropriate emergency fund even more important, not less. And it doesn't stop there. Young consumers need to start contributing to savings plans, such as Roth or regular IRAs, or 401(k) plans if their employer offers one. 'The sooner you start, the easier retirement will be,' Lynch said. 'And fear not, Gen Z. If you start saving today, you will be able to retire someday.' More From GOBankingRates 6 Hybrid Vehicles To Stay Away From in Retirement This article originally appeared on 4 Worst Money Habits Of Gen Z — And What To Do Instead
Yahoo
21-06-2025
- Business
- Yahoo
How To Use Your Paycheck To Get Rich — Budgeting, Saving and Investing Your Income Wisely
Let's be real: Getting rich off a single paycheck sounds like a stretch — but using your paycheck wisely to build wealth over time? Totally doable. Remember This: Find More: Whether you're just starting out or finally earning more than you spend, how you handle your income matters way more than how much you make. According to Jason Pack, chief revenue officer at Freedom Debt Relief, most people fail to build wealth because they're struggling to set a solid foundation for living within their means. 'If you can't find ways to make a budget work consistently, you won't have enough cash left over to save, let alone invest,' he said. Here's a breakdown of how to budget, save, and invest like someone who knows what they're doing — even if you're figuring it out as you go. While most Americans have a monthly budget, experts say many still overspend. 'Automated clarity, not controlling your spending power, is in knowing where every dollar goes, and not having to monitor your spending,' said Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit. The best budgets are not Excel spreadsheets that make you feel guilty — they're systems that allow you to live your life without having to think about money constantly. Shirshikov suggested trying reverse budgeting. Rather than minutely recording where every dollar goes, you commit upfront to your biggest priorities — investing, saving and paying down debt — and then spend what you have left. 'For as long as you invest 20% of each paycheck into wealth-building instead, you'll never have to wonder if saving is something you can afford,' he said. See Next: Think in 'buckets,' not just balances. According to Shirshikov, one of the most potent (yet underused) parts of a new system is the ability to bucket interest rates and allocate the balance accordingly. 'The average savings account is a number that is a flat, plain number that sits there.' Smart savers employ a few psychological tricks to keep you from raiding it. He recommended creating distinct savings buckets for short-term needs (3-6 months of expenses), mid-term goals (a car, a house, a sabbatical), and long-term plans (retirement or financial independence). His out-of-the-box tip? Personalize your savings accounts with nicknames such as 'Quit My Job Fund' and 'Freedom Fund.' You are far less likely to steal from a goal you've emotionally tagged. 'Language shapes behavior,' he said. When it comes to investing, set it and forget it is your best bet. 'It's been said that the most effective wealth-building tool is consistent investing,' said Shirshikov. For newbies, a Roth IRA or 401(k) with broad market index funds (such as VTI or SPY) is plenty. But don't just contribute — automate and escalate. Each time you get a raise, nudge your contributions up 1-2%. For people who want to venture on less traditional wealth paths, Shirshikov said income-generating investments such as REITs, dividend-paying stocks or fractional real estate platforms are worth considering. 'You don't have to buy a house to profit from flippers,' he added. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard Here's the Minimum Salary Required To Be Considered Upper Class in 2025 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on How To Use Your Paycheck To Get Rich — Budgeting, Saving and Investing Your Income Wisely 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
20-06-2025
- Business
- Yahoo
I'm a Financial Expert: Here's Why You Should Take Out a Personal Loan To Further Your Education
Thinking about going back to school or picking up a new skill? Whether it's a degree, a certification or a specialized course that could level up your career, one thing's for sure: Education isn't cheap. The Pew Research Center reported that Americans owed about $1.6 trillion in student loans as of June 2024. But before you let finances hold you back, there's one option you might not have considered — taking out a personal loan. It might sound intimidating at first, but it could be a smart move to invest in your future. Read Next: Find Out: GOBankingRates spoke with Dennis Shirshikov, professor of finance at the City University of New York and head of growth and engineering at Growth Limit, to discuss the benefits of taking out a personal loan to further your education. Also see 10 key questions to ask before taking out a personal loan. Done correctly, Shirshikov said a personal loan (structured for the purpose of financing school, of course) can be one of the most underutilized but strategic moves for professional growth. That can be particularly so for workers looking to upskill in the short term or pivot their career paths. According to Indeed, many industries have some types of certifications, which can help employees earn more money. Check Out: Unlike many student loans, which are often limited to accredited institutions and traditional degree paths, personal loans offer flexibility. They can be used for coding bootcamps, certificate programs, executive education or even specialized one-on-one training that will enable you to command a higher salary or start a business. 'Consider, for example, a client of ours, a marketing analyst who was stuck on her salary who used a personal loan of $12,000 to make a UX design boot camp happen for her,' Shirshikov said. In under 10 months, the client made the leap to product design and boosted her salary by over $30,000 annually. 'And from a financial point of view, that's a return on investment that would leave any investor green with envy,' Shirshikov said. 'When you consider that the interest on the loan was under 10%, the math adds up.' This type of nontraditional education financing is particularly compelling, according to Shirshikov, because it's not bogged down by the bureaucracy and restrictions of federal education financing. Yet it still can have predictable, structured repayment terms. It's also worth noting that when you take out a personal loan for education, it doesn't typically come with a risk of collateral-backed loans, a psychological load that many borrowers can feel far more than for home equity lines or business loans. More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on I'm a Financial Expert: Here's Why You Should Take Out a Personal Loan To Further Your Education Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-06-2025
- 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
02-06-2025
- 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
