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Yahoo
16-06-2025
- Business
- Yahoo
6 Subtly Genius Ways Wealthy People Save Tons of Money
Ever wonder how the rich are able to maintain their lavish lifestyle without depleting their bank accounts? As it turns out, they're exceptionally good at saving. In fact, many of their financial decisions are genius strategies for creating lasting wealth. Trending Now: Explore More: Below experts outline some of the ways they're able to save tons of money. 'From what I've observed working with affluent clients, one of the most effective ways wealthy people save money is by focusing on strategic investments,' said Shirley Mueller, finance expert and founder of VA Loans Texas. 'They understand the power of compounding and often prioritize tax-advantaged accounts like IRAs, 401(k) plans and health savings accounts (HSAs) to maximize their returns while minimizing tax liabilities.' She also noted that many also leverage tools like trusts and charitable giving strategies to reduce tax exposure, creating long-term savings while supporting causes they care about. 'This level of planning reflects their focus on building sustainable wealth rather than chasing short-term gains,' Mueller added. Consider This: According to Mueller, wealthy individuals rarely pay full price for anything, even when they can afford to. 'They are skilled negotiators, whether they're buying property, financing a home, or making high-ticket purchases,' she said. The expert noted many also take full advantage of rewards programs tied to credit cards or memberships. 'I've seen clients use travel rewards or cashback bonuses in ways that significantly offset their expenses,' Mueller explained. 'For them, it's about maximizing value on every dollar spent, an approach that helps them save thousands without cutting corners on their lifestyle.' 'Another subtle habit I've noticed among wealthy clients is their commitment to maintenance,' Mueller said. 'They understand that taking care of what they already own — whether it's a home, car, or investment property — saves money over time by avoiding costly repairs or replacements.' For example, routine home maintenance can prevent expensive structural issues down the road. Similarly, she said they approach personal finances with this mindset, regularly reviewing their budgets, portfolios, and insurance coverage to ensure everything is optimized and aligned with their goals. 'These small, consistent actions create a strong foundation for long-term financial success,' Mueller noted. One subtle yet powerful way the wealthy save money is through strategic tax planning, said Kevin Shahnazari, founder and CEO of FinlyWealth. 'Wealthy individuals often collaborate with financial advisors to optimize their tax liabilities by utilizing tax-deferred accounts and maximizing deductions and credits,' he explained. By carefully structuring their investments and income streams, he said affluent individuals can significantly reduce their taxable income, allowing them to retain more of their hard-earned wealth. Another genius approach, according to Shahnazari, is automating savings and investments. 'Many wealthy individuals set up automatic transfers to savings or investment accounts, ensuring that a portion of their income is consistently saved before they have a chance to spend it.' He said this method not only fosters disciplined saving habits but also leverages dollar-cost averaging, which can enhance long-term investment growth. Additionally, Shahnazari observed that the wealthy often engage in lifestyle optimization, making conscious spending choices that yield greater value. 'For instance, they may invest in high-quality items that last longer or prioritize experiences over material possessions,' according to the expert. By focusing on quality over quantity, he said affluent individuals can enjoy a more fulfilling lifestyle while ultimately saving money in the long run. 'These strategies exemplify how the wealthy approach saving with intention and foresight,' Shahnazari explained. 'Smart financial habits are not just about saving; they involve making intentional choices that lead to lasting wealth.' 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 The 10 Most Reliable SUVs of 2025 This article originally appeared on 6 Subtly Genius Ways Wealthy People Save Tons of Money 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
29-05-2025
- Business
- Yahoo
6 Money Hacks the Super Rich Use That You Can Too
Just because you don't have access to millions of dollars doesn't mean you can't take advantage of the same money hacks the super rich implement. There are plenty of strategies out there that can work for you, even if you earn an average salary. Read More: Trending Now: Below, learn which money hacks of the wealthy can help you out, as well. Abid Salahi, finance expert and co-founder of FinlyWealth, said working with clients across different wealth brackets has revealed accessible financial strategies. 'Bank bonus harvesting mirrors how wealthy individuals maximize idle cash,' he explained. 'Moving $5,000 between banks offering new account bonuses can earn $1,000 to 2,000 annually. Major banks like Chase and Citi regularly offer $200 to 500 bonuses for new accounts with minimal holding periods.' Consider This: According to Salahi, credit card reward stacking copies wealthy families' points maximization. 'Combining a 2% cash-back card for regular spending with targeted 5% category cards can generate $1,200 or more yearly on $30,000 spend,' Salahi said. 'Strategic sign-up bonus timing adds another $1,000 to 1,500 annually.' 'As a certified public accountant, I've helped numerous high-net-worth individuals streamline their financial strategies,' said Nischay Rawal, certified public accountant (CPA) and founder of NR Tax & Consulting. 'One notable hack is tax-loss harvesting.' He said this involves selling underperforming investments at a loss to offset capital gains taxes. 'It's a technique often used by the affluent, but anyone with a diversified portfolio can benefit from it, especially during volatile market periods.' Tax-loss harvesting isn't just for the rich, Salahi agreed. 'When index funds drop, selling and buying similar funds (like switching from S&P 500 to Total Market) locks in tax losses while maintaining market exposure,' Salahi said. 'This strategy can offset $3,000 in ordinary income yearly.' 'Property tax appeals work at all price points,' Salahi explained. 'Filing an appeal with comparable sales data can reduce assessments by 5-15%. On a $300,000 home with 2% tax rate, this saves $300-900 annually — the same technique wealthy homeowners use on luxury properties.' Another strategy, according to Rawal, is utilizing retirement accounts for tax efficiency. 'High earners often max out contributions to 401(k) plans and IRAs, taking advantage of any employer matching to build wealth while reducing taxable income,' he said. He advises clients, regardless of their wealth level, to fully leverage their retirement accounts. 'As this not only secures their future but also provides immediate tax benefits,' Rawal added. Zero-based budgeting helps maximize savings like wealthy families do, Salahi added. 'Assigning every dollar a job and reviewing subscriptions monthly typically finds $200-400 in monthly savings,' he said. Salahi said this mirrors family office expense auditing at a smaller scale. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on 6 Money Hacks the Super Rich Use That You Can Too 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
27-05-2025
- Business
- Yahoo
6 Financial Traps Middle Class People Fall Into in Their 20s
Your 20s are a wild ride. You're figuring out how to adult, maybe landing your first 'real' job, juggling student loans and trying to fit the occasional impulse Amazon buy into your budget. Learn More: Try This: You might feel like you're making progress, especially if you're not living paycheck to paycheck. But even middle-class folks with steady incomes can fall into some sneaky financial traps when they're young that don't show up on their bank statements until years later. Here's a look at the ones to watch out for — before they quietly drain your future wealth. According to Chris Heerlein, CEO of REAP Financial, one prevalent financial trap for 20-somethings is living beyond their means. It's easy to get caught up in a lifestyle of consumerism, especially with the influence of social media, which often shows a curated version of success. Many individuals in their 20s may even rely on credit cards or loans to fund unnecessary purchases, like expensive dining out, luxury clothing or gadgets. Heerlein noted the immediate gratification of buying what you want can quickly spiral into debt that becomes harder to manage as time goes on. 'My advice here is to live within your means by creating a budget, tracking your spending and prioritizing saving over consumption.' Remember: It's important to build a cushion with an emergency fund and focus on paying down high-interest debts, like credit card balances, before spending on non-essentials. For You: 'Too many young adults neglect to save for a rainy day, thinking they will not have any unexpected expenses,' said Kevin Shahnazari, founder and CEO of FinlyWealth. A January U.S. News survey found that 42% of Americans don't have an emergency fund, with nearly as many (40%), saying they couldn't cover a $1,000 emergency expense with cash or savings. Even modest financial shocks can lead to debt accumulation or delayed payments without a cash cushion. Ideally, a three- to six-month cushion of living costs should be saved before investing or purchasing big-ticket items. Shahnazari said being uninformed about credit, which can lead to maxing out credit cards or paying only minimum payments, can result in negative credit scores and interest payments. To use credit wisely, he said one must keep credit balances low, pay them in full when feasible and check credit reports to catch errors or fraud before they become big problems. You can access your credit report for free weekly at or annually through the major credit bureaus — Experian, Equifax and TransUnion. This is a major misstep. Saving for retirement may feel abstract in your 20s, but compounding growth over the long term is incredibly potent, said Shahnazari. Delaying 401(k) or IRA contributions will cost you thousands in the long term. Saving small, consistent contributions can make you a millionaire in the long term. Student loan debt is a fact of life for many, but Shahnazari said sliding into minimum payments without a payoff strategy can lengthen debt terms unnecessarily. Keep in mind that refinancing, income-driven repayment or accelerated payoff plans can be money- and stress-saving. Many 20-somethings lack the financial literacy they need to make smart choices about loans, investing and taxes. Taking the time to learn about finance — through classes, books or planners — empowers you to make smarter money decisions. The solution to evading these traps, Shahnazari explained, is careful money management, planning and continued money education. 'The earlier adults get established in these practices, the better positioned they will be to handle their finances,' he said. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 6 Financial Traps Middle Class People Fall Into in Their 20s 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
27-05-2025
- Business
- Yahoo
6 Financial Traps Middle Class People Fall Into in Their 20s
Your 20s are a wild ride. You're figuring out how to adult, maybe landing your first 'real' job, juggling student loans and trying to fit the occasional impulse Amazon buy into your budget. Learn More: Try This: You might feel like you're making progress, especially if you're not living paycheck to paycheck. But even middle-class folks with steady incomes can fall into some sneaky financial traps when they're young that don't show up on their bank statements until years later. Here's a look at the ones to watch out for — before they quietly drain your future wealth. According to Chris Heerlein, CEO of REAP Financial, one prevalent financial trap for 20-somethings is living beyond their means. It's easy to get caught up in a lifestyle of consumerism, especially with the influence of social media, which often shows a curated version of success. Many individuals in their 20s may even rely on credit cards or loans to fund unnecessary purchases, like expensive dining out, luxury clothing or gadgets. Heerlein noted the immediate gratification of buying what you want can quickly spiral into debt that becomes harder to manage as time goes on. 'My advice here is to live within your means by creating a budget, tracking your spending and prioritizing saving over consumption.' Remember: It's important to build a cushion with an emergency fund and focus on paying down high-interest debts, like credit card balances, before spending on non-essentials. For You: 'Too many young adults neglect to save for a rainy day, thinking they will not have any unexpected expenses,' said Kevin Shahnazari, founder and CEO of FinlyWealth. A January U.S. News survey found that 42% of Americans don't have an emergency fund, with nearly as many (40%), saying they couldn't cover a $1,000 emergency expense with cash or savings. Even modest financial shocks can lead to debt accumulation or delayed payments without a cash cushion. Ideally, a three- to six-month cushion of living costs should be saved before investing or purchasing big-ticket items. Shahnazari said being uninformed about credit, which can lead to maxing out credit cards or paying only minimum payments, can result in negative credit scores and interest payments. To use credit wisely, he said one must keep credit balances low, pay them in full when feasible and check credit reports to catch errors or fraud before they become big problems. You can access your credit report for free weekly at or annually through the major credit bureaus — Experian, Equifax and TransUnion. This is a major misstep. Saving for retirement may feel abstract in your 20s, but compounding growth over the long term is incredibly potent, said Shahnazari. Delaying 401(k) or IRA contributions will cost you thousands in the long term. Saving small, consistent contributions can make you a millionaire in the long term. Student loan debt is a fact of life for many, but Shahnazari said sliding into minimum payments without a payoff strategy can lengthen debt terms unnecessarily. Keep in mind that refinancing, income-driven repayment or accelerated payoff plans can be money- and stress-saving. Many 20-somethings lack the financial literacy they need to make smart choices about loans, investing and taxes. Taking the time to learn about finance — through classes, books or planners — empowers you to make smarter money decisions. The solution to evading these traps, Shahnazari explained, is careful money management, planning and continued money education. 'The earlier adults get established in these practices, the better positioned they will be to handle their finances,' he said. More From GOBankingRates These Cars May Seem Expensive, but They Rarely Need Repairs This article originally appeared on 6 Financial Traps Middle Class People Fall Into in Their 20s
Yahoo
19-05-2025
- Business
- Yahoo
2 Ways Billionaires Budget Differently Than You — and What You Can Learn
Ever wonder how billionaires manage their money? Spoiler: it's not with coupon books or by skipping lattes. While most of us are focused on trimming expenses, the ultra-wealthy approach budgeting from a totally different angle — one that prioritizes growth, strategy and long-term vision. Trending Now: Explore More: 'While most people stress about saving $5 on coffee, billionaires are looking at ways to turn $1 million into $10 million,' said Andrew Lokenauth, money expert and owner of 'A billionaire client at a previous bank I worked at spends exactly $0 time tracking small expenses,' he noted. 'Instead, he's laser-focused on major wealth-building moves. And that's the first big difference I see — they're playing an entirely different game.' According to NPR, the U.S. has the most billionaires with 902, followed by China and Hong Kong at 516. But you don't need a private jet to borrow a few of their best habits. Here's what billionaires do differently with their budgets — and how you can apply those lessons to your own financial life. According to Kevin Shahnazari, founder and CEO of FinlyWealth, they focus on a long-term strategy with wealth accumulation and protection as their top priorities instead of covering immediate costs. Unlike most folks who focus on covering day-to-day expenses first, billionaires tend to think way ahead. Their budgets are all about growing their wealth over time. They pour money into things that gain value — like real estate, stocks and businesses — and aren't shy about hiring professionals to help them make the most of their money. Be Aware: One big thing that sets billionaire budgets apart? They zoom out and see the big picture. Instead of stressing over monthly bills, they focus on growing their wealth through smart moves like diversifying their investments and taking advantage of tax-friendly strategies. The takeaway for the rest of us? Budgeting isn't just about cutting costs — it's also about making intentional choices that support your long-term goals. That could mean putting money into things with higher returns, like the stock market or real estate, or even investing in yourself to boost your earning potential. Billionaires also lean on a whole team of money experts like financial planners, accountants and advisors to help them make solid decisions. While most of us don't have a squad on speed dial, working with a trusted advisor can be a great way to get tailored advice and plan smarter. The bottom line: When you adopt a long-term mindset and think like a wealth-builder, your money starts working for you — not the other way around. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? The Most Expensive Disney Merchandise Ever Sold -- and Who's Buying It I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money Andrew Lokenauth, BeFluentInFinance. NPR, 'More billionaires than ever ranked in Forbes' annual list. Here are the top 10' Kevin Shahnazari, FinlyWealth This article originally appeared on 2 Ways Billionaires Budget Differently Than You — and What You Can Learn
