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Yahoo
30-07-2025
- Business
- Yahoo
7 Paycheck Hacks To Build Wealth Faster, According to Jaspreet Singh
A Talker Research survey done for EarnIn found that the typical American spends 64% of each paycheck on basic needs and 16% on their wants. Unfortunately, that doesn't leave much cash to save for emergencies or invest and makes it hard to escape the paycheck-to-paycheck cycle. See Next: Check Out: According to personal finance expert Jaspreet Singh, you can optimize how you use your paycheck so you grow wealth more quickly and not only have your regular payday to look forward to. In a YouTube video, he outlined top paycheck hacks you can start using today. Make Biweekly Mortgage Payments While you're probably used to making one monthly mortgage payment, you won't save on interest or get free of your mortgage debt faster that way. Singh said it's wiser to use your income to make half your usual mortgage payment every two weeks. So, if your payment is currently $2,500, you'd pay $1,250 every two weeks, adding up to 26 half payments or 13 full payments per year. For You: 'You're slowly chipping away at the principal balance even faster, which can save you six figures over the course of your mortgage without too much work,' Singh explained. Automate Your Money Keeping all your money in one account keeps things simple, but you'll likely find it easier to overspend and harder to successfully save and invest. That's why Singh said you need separate spending, saving and investment accounts where parts of each paycheck will automatically go. This practice lets you avoid relying solely on your willpower or memory, which can fail you. Set Up a Money System When automating your money, you'll also need to decide how much of your paycheck to use for each purpose. Singh recommended the simple 75-15-10 plan, where you use no more than 75% of your pay for expenses, at least 15% for investments and at least 10% for savings. Since Singh's suggested spending limit is a maximum, it's smart to lower expenses so you can put more money toward investing. A compound interest calculator by shows that even contributing an extra $300 each month at a modest 6% return would add up to over $132,000 in 20 years. Spend on Education 'What every investor and every wealthy person wants to do is they want to invest in their mind because your mind can be the best investment that you can make,' Singh said. He advised using part of each paycheck for one education-related purchase. While you could pay for a course, seminar or mentor, Singh explained that you can learn the essentials of business and finance for less money through books. He recommended getting five books in each of these areas: leadership, business, investing or money management, personal development and sales. He also suggested biographies as a bonus. Reinvest Your Raises Many people think that a bigger paycheck means they'll become richer, but a Bank of America Institute survey found that even around 20% of those earning $150,000 or more per year were in the paycheck-to-paycheck trap. Lifestyle inflation is a common problem, and your raise might tempt you to add new expenses or upgrade things like your car or home. Singh suggested investing your income boost instead of increasing your spending. That will set you up for a bigger account balance at retirement from your contributions, investment earnings and potential employer matches. Plus, it should reduce your financial stress. Wisely Use Credit Cards Unlike Dave Ramsey, Singh thinks that credit cards can be a helpful tool if you're not already in debt with them, you don't tend to overspend, and you don't plan to carry a balance with interest. 'If you use a credit card smartly just to make the purchases you would normally make, well, now those same credit cards could add some cash back or free perks for really doing nothing except using a credit card instead of cash,' he explained. To accelerate building wealth, you could cash out your rewards and put the money toward investments. You could also redeem rewards for statement credits that help cover your balance. Know Your Goal Singh recommended having specific investing, saving and spending goals beyond the paycheck allocations he brought up earlier. The targets will depend on your situation and needs. First, he said you should save up three months to one year of expenses for your emergency savings. The lower end can make more sense if you're single and young, while the high end is smart if you're someone with dependents and many expenses. When setting your investing goal, you could use a retirement calculator to see what you'd need to cover your expenses alongside other available income sources. Singh said you'll also need to decide whether to focus on making money through cash flow (his preference) or appreciation, as well as whether passive or active investing is right for you. He said your spending goal will closely connect with your investing goal since you'll need enough money to live your desired lifestyle. If you're happy living simply on $2,500 per month, your target investment amount will look different than if you want to travel in luxury. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 3 Reasons Retired Boomers Shouldn't Give Their Kids a Living Inheritance (And 2 Reasons They Should) How Far $750K Plus Social Security Goes in Retirement in Every US Region This article originally appeared on 7 Paycheck Hacks To Build Wealth Faster, According to Jaspreet Singh
Yahoo
15-07-2025
- Business
- Yahoo
Connecticut enacts controversial EWA law
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Connecticut Gov. Edward 'Ned' Lamont last week signed a bill into law that imposes earned wage access regulations that providers of those services have opposed. Lamont, a Democrat, enacted the new law on Tuesday and it takes effect Oct. 1. The two houses of the legislature, which is controlled by the same party, passed the legislation over the past two months. States have increasingly sought to oversee expanding EWA services and their providers. Connecticut now becomes the 11th state to have passed a law in recent years specifically related to earned wage access, following Louisiana earlier this month and Maryland in May. A 12th state, California, imposed oversight under a different law. Earned wage access has become a popular way for employees to access their pay before a regularly scheduled payday, but the practice has also triggered controversy because of fees associated with some services, like accelerated payment. Dozens of EWA service providers, which include DailyPay, EarnIn, Flexwage Solutions and Chime, have voiced varying views about legislative proposals cropping up across the country. The Connecticut law caps fees that can be charged at $4 per advance, and $30 in total per month. It also limits the accrual of interest after the maturity date to 12% on a daily basis for the unpaid balance. In addition, the law caps late fees at 5% 'of the outstanding installment payment, excluding any previously assessed late fees, or a total of twenty-five dollars per month, whichever is less.' It also bars providers from asking for repayment prior to the user's next scheduled paycheck. The Chamber of Progress, which represents a number of fintechs including DailyPay and EarnIn, issued a Thursday press release criticizing what it called 'the nation's strictest monthly fee cap on EWA providers.' It also argued that the law will force Connecticut families living paycheck to paycheck to use more expensive alternatives and disadvantage smaller EWA service providers. EWA firms use an array of methods for providing the services, with some offering the payments through employers and others reaching out directly to consumers. They also have different revenue-generating models, with some exacting fees from users and others providing payment cards to workers and then reaping interchange fees from merchants when the users spend. States that have passed new laws chiefly calling for licensing of EWA providers have received support from the industry. But some legislative proposals, including Connecticut's, have drawn opposition. The American Fintech Council as well as the CEOs of DailyPay and EarnIn sent a June 25 letter to Lamont opposing the Connecticut bill. The letter writers, including AFC CEO Phil Goldfeder; DailyPay CEO Stacy Greiner; and EarnIn CEO Ram Palaniappan, also dinged the bill's requirement that EWA providers offer at least 75% of a worker's earned and unpaid wages for a pay period, saying it will unfairly preference the largest EWA companies. Despite the letter, DailyPay issued a Thursday press release and statement contending the law offers 'certainty' and means that EWA providers are 'exempted from Connecticut's Small Loan Act's annual percentage rate and other requirements of traditional loans and credit products.' When asked whether DailyPay had had a change of heart about the law, a spokesperson for the provider said the company adjusted its services to comply with the state's department of banking guidance. The spokesperson also offered a statement from the company's chief legal and strategy officer, Jared DeMatteis, saying DailyPay welcomed the 'full return' of its services to the state. Still, the statement also suggested DailyPay might contend the law's caps are not legitimate if they're not implemented correctly. A spokesperson for the company didn't immediately respond to a question seeking to clarify that point. We 'look forward to collaborating with lawmakers to ensure that any proposed regulatory changes, such as fee caps, are evidence-based and consider consumer impact,' DeMatteis said in the statement. Recommended Reading Louisiana, Connecticut advance EWA bills 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
24-03-2025
- Business
- Yahoo
Most Americans mentally spend their paycheck before they get it: How to avoid paycheck stress
It's not so uncommon for Americans to live paycheck to paycheck — meaning, to not have savings to fall back on between pay periods. But a new survey conducted by Talker Research on behalf of EarnIn found that the average American has already mentally spent more than half of their paycheck before it lands in their bank account. The survey polled 2,000 employed Americans who make less than $75,000 per year and found that the typical American spends about 43% of their paycheck within the first three days after receiving it, in addition to the roughly 51% that's pre-spent mentally. Overdue bills are a big driver of this trend — this resonated with 38% of respondents. But large bills, like rent or mortgage payments, necessities like food and medication, and smaller utility bills are likely to be among the first expenses paid after receiving a paycheck. Of course, that approach makes sense, since essential bills should be covered first. The problem, though, is that only 20% of Americans don't run out of money or otherwise have to live on a tight budget in the days leading up to their next check. Worse yet, 56% of respondents said that less than 10% of their pay goes into savings. If you're not saving as much as you should or managing your paychecks as well as you feel you could be, it may be time for some changes. Here are a few to consider. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Americans with upside-down car loans owe more money than ever before — and drivers can't keep up. Here are 3 ways to cut your monthly costs ASAP A recent survey found that 74% of Americans have a monthly budget. That's good news. But, of those with a monthly budget, 84% tend to exceed it. That's not so good. This is why it's not enough to just have a budget. Rather, you need a realistic budget. If your budget leaves you relying on credit or with zero room to spend money on leisure and activities, it's probably not working and you need to assess if you're living within your means. To guide you, consider the 50/30/20 budget rule, which recommends that no more than 50% of your pay goes to needs (like housing, utilities, taxes), 30% goes to wants, and 20% goes to your savings. Another rule is the 30% rule and that suggests that no more than 30% of your gross income should go to housing expenses such as rent or mortgage payments, utilities, taxes, and insurance (though some experts suggest that 40% is more realistic these days). To start, start tracking each cent. There are helpful apps to help you do that. If you're diligent about tracking your spending, you may be able to spot areas where you consistently overspend. This indicates your budget isn't realistic. That's why instead of cutting out all non-essential spending in your plan, you should prioritize what you spend on based on how much wiggle room you realistically have. If you don't have $600 a month to blow on restaurant meals, concerts, and social events, but rather, are limited to $200, decide which few things are most important to you based on your values. Next month, you can prioritize something else. Or, if needed, pick up a side hustle to boost your income so there's more room to spend more. The Federal Reserve reports that 37% of Americans do not have the savings to cover a surprise $400 expense. Similarly, in early 2025, a survey by U.S. News & World Report found that 42% of Americans don't have an emergency fund at all, and that 40% couldn't cover a $1,000 unexpected expense. Without emergency savings, you risk falling behind on essential bills and having to resort to debt (possibly high interest debt) when unplanned expenses arise. So it's important to make room in your monthly budget for emergency fund contributions. Read more: Gold just hit a historic high of $3,000/ounce on Trump's tariff moves — while US stocks got slaughtered. Here's 1 simple way to prevent more pain within minutes Ideally, you should aim for enough savings to cover three months of essential bills at a bare minimum (though, if you can, try to stretch this to six months). That way, if you find yourself unemployed, you'll have funds to tap to cover your expenses instead of having to reach for a credit card. Not only should you make room in your budget for savings, but you should also aim to pay yourself first. Given that so many Americans mentally spend their paychecks before they arrive, to stay on track, you may want to establish a monthly savings goal and then set up an automatic transfer from your checking account to your savings account. That way, the amount you want to save will leave your checking account before you get a chance to touch it. You may even want to consider a micro-investing app, such as Acorns. In recent years, inflation has been a challenge for American workers and has monopolized more of their paychecks. But while you can't help the fact that living costs have been rising even as pay hasn't kept up pace, you can avoid spending more by pledging to steer clear of lifestyle creep (or lifestyle inflation as it's sometimes called). Many people increase their spending as their income rises. And that's okay to some degree. But if you do so at a pace where there's no money left over for savings, you're going to end up in the same position you're in now, where you're dependent on each paycheck that arrives to cover your essential expenses. Rather than take on new expenses every time you get a raise, evaluate your savings and see if you can increase your contributions, whether it's to your emergency fund or your 401(k). And if you're getting your first raise in a long time and want to treat yourself, rather than spend the extra money on expenses you have to commit to on a recurring basis, spend it on one-off expenses here and there. For example, with a $3,000 raise, you may be inclined to rent an apartment that costs $250 more per month. But once you sign that lease, you're locked into it so that if other bills get more expensive, you'll again have no wiggle room in your budget. A better bet, if you really want to treat yourself after getting a raise, would be to buy a $250 pair of tickets to a concert or something similar as a one-time purchase. But from there, don't commit to other bills right away. In fact, if you send more of your money into savings automatically as your paycheck increases, you won't miss the extra money, because you won't be used to having it to spend. So that could be the easiest way to meet major goals you have and get to a place where you're more financially secure. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
