Latest news with #HannaKaufman
Yahoo
22-07-2025
- Business
- Yahoo
The 'No Buy' trend is catching on — and leading to big savings
Sometimes, getting your budget on track starts with a detox to wipe the slate clean and build new habits. Many consumers have taken on no-spend challenges to put themselves to the test and see if they can go a day, week, or month without spending money. Others have taken it a step further and adopted a 'no buy' year to cut out unnecessary spending and focus on what matters. Here's what you need to know about No Buy 2025 and how to incorporate it into your life. What is No Buy 2025? No Buy 2025 is a personal finance trend in which individuals commit to avoiding non-essential (AKA discretionary) purchases for a set period this year, which could range from a few weeks to the full year. One example of this trend in practice is 'No Buy July,' where participants challenge themselves to avoid spending money for the full month. 'No Buy July is like a financial detox,' said Hanna Kaufman, CFP® at Betterment. 'For one month, you hit pause on all non-essential spending — think: takeout, impulse Amazon buys, new clothes — and focus only on what you really need.' She explained that it's a challenge that helps people reset their spending habits, get clarity on their financial priorities, and boost their savings without having to make huge sacrifices. But some people are taking it a step further and adopting the trend for the entirety of 2025. For example, a Reddit group dedicated to the no-buy challenge boasts more than 70,000 members who share their personal experiences and tips. Many of those who take on the challenge start by creating a list of rules for themselves that align with their lifestyles. This could include hard rules such as 'no new clothes whatsoever' or 'no new technology,' as well as rules that limit the frequency of certain purchases, such as 'yes to takeout once per month' or 'yes to one nail appointment every two weeks.' Others have posted online about having a 'low buy' year, which means they're limiting the amount of purchases they're making, rather than cutting out non-essential spending altogether. The ultimate goal: Spend less and save more in order to reach larger financial goals, from paying off debt to buying a home. Read more: How the 30-day savings rule can help you stop impulse spending and save more money Why it works You may wonder why creating a simple budget isn't enough. While it certainly can be for many, some people need the extra motivation that comes from a challenge. 'Challenges work because they give you structure with a finish line,' Kaufman said. 'You're not saying 'no' forever, just 'not now.'' Kaufman added that joining a no-buy challenge also helps you break longstanding habits, like reaching for your phone to shop when you're bored, because you have the time to ask yourself whether you truly need or want an item. 'Plus, there's a little psychology at play — our brains love a good goal, especially when there's a sense of community and accountability behind it,' she said. Read more: 5 psychological money hacks to cut spending and increase savings There's also the added bonus of having built-in accountability partners, be it through close friends, family, or global online communities that are all working toward the same goal and experiencing similar pain points and victories. If your budget has been off track and you're struggling to get your spending under control, embarking on a no-buy challenge can be a good way to reset and remind yourself of what's important. Up Next Up Next How to participate in No Buy 2025 If you're thinking of getting on board and joining in on No Buy 2025, there are a few steps you can take to set yourself up for success. Create your no-buy rules The spending parameters you set should be unique to your situation. After all, no one knows your spending habits and pitfalls better than you. What are your nonnegotiables? What can you afford to cut out? Be honest with yourself about what you absolutely need, versus what is simply nice to have. It's also important to be flexible. For example, cutting out all non-essential purchases completely may be demotivating after a while, whereas limiting your 'fun' purchases to once per week or month will make you feel less deprived and motivated to stick to your plan. Set a savings goal Having an end goal in mind can make it easier to stick to the challenge. Imagine what you hope to accomplish. Perhaps your goal is to pay off your car loan, save for a down payment on a home, or set aside enough money to start a business. Knowing your 'why' can help you avoid veering off track when things get difficult. Find free joy Just because you're avoiding spending money doesn't mean you have to deprive yourself of the things that bring you joy. 'Replace shopping habits with low-cost (or no-cost) fun: picnics, hikes, library runs, or finally watching that streaming series you've ignored,' Kaufman suggested. Keep track of your progress Watching your savings increase over time can be a constant reminder that your no-buy challenge isn't limiting you; it's helping you get closer to reaching your financial goals. Consider using a budgeting app or spreadsheet to track your progress over time, and whenever you're feeling deflated, you can remind yourself how far you've come. Forgive the slip-ups You're aiming for progress, not perfection. If you have a moment of weakness and end up splurging, use it as an opportunity to learn. Then get back on track. 'If you cave and buy a latte or a concert ticket, don't quit the challenge,' Kaufman said. 'Reflect, reset, and keep going.'
Yahoo
13-07-2025
- Business
- Yahoo
Warren Buffett Is Retiring at 94: Will Working at Age 90-Plus Become the Norm?
Warren Buffett recently announced that he plans to retire as CEO of Berkshire Hathaway at the end of this year. He'll be 95. The average retirement age in America is 62, according to a 2024 MassMutual survey. So, for the average person, waiting to retire until they're in their 90s might seem extreme. But for founders and CEOs, delaying retirement for years or even decades beyond the norm isn't so unusual. The standard retirement age may also be on the rise. The U.S. Bureau of Labor Statistics predicts that the number of people 75 and older in the workforce will increase by 96.5% through 2030. Read Next: Find Out: So will working to 90-plus eventually become the norm? What are the financial benefits of working this long? What are the drawbacks? Here's what the experts say. Also see four ways debt is forcing older Americans to delay retirement. For those who are impassioned about their work, retirement might not be in the cards. It's not because they can't afford it, but because they simply choose not to stop. 'Warren Buffett may be the exception, not the example — but his longevity in leadership sets a tone we shouldn't ignore,' said Hanna Kaufman, a CFP at Betterment. 'Warren Buffett isn't working until 94 because he has to, he's doing it because he wants to.' Other high-profile individuals who are still working in their later years include Ellen Gordon (CEO of Tootsie Roll Industries) and Bernard Francis Saul II (CEO of Saul Centers). Both are in their 90s. Kaufman said it's not likely that working until 90 will become the norm. But for some CEOs, founders and investors, it certainly might be. This is due to a combination of purpose, sense of identity and intellectual challenge. However, not everyone can keep working until they're 90 years old, even if they want to. Emotional and physical well-being play a major role in determining whether it's even possible to keep active in the workforce. Check Out: Buffett has an estimated net worth of almost $143 billion. But for many Americans, the cost of living necessitates working longer than ever before. Even if you retire before your 90s, delaying retirement can be highly financially beneficial. For example, waiting to collect Social Security until you're 70 will increase your monthly benefit amount by 32%. As an added benefit, working longer means higher potential retirement savings. 'Earning for longer, for example, $80,000 a year, can make quite a difference in the size of savings, particularly with compound interest in a 401(k) account,' said Seann Malloy, founder and managing partner at Malloy Law Offices. If you have an employer-sponsored retirement account — like a 401(k) — you can also hold off on taking required minimum distributions (RMDs) while your money grows tax-deferred. The exception is if you own 5% of the company. Notably, you'll need to withdraw a certain minimum amount from other retirement accounts when you turn 73. This includes traditional IRAs, SIMPLE IRAs and SEP IRAs. Roth IRA owners can keep contributing while they're working without taking those RMDs. Plus, the longer you work, the longer you can hold off on using those retirement funds. This can ease any financial burden when you retire. Last but not least, there are healthcare costs to consider. Continuing to work can help combat these costs. 'Continued employment may also allow you to keep access to employer sponsored health coverage, which can significantly reduce out of pocket medical costs,' Kaufman said. 'These assumptions hinge on the assumption that you're healthy enough to work and have a job that allows for that kind of longevity.' Even with the retirement age on the rise, it's unlikely that people will soon be forced to work until they're in their 90s. But that doesn't mean early — or even on-time — retirement is always a possibility. 'For some, working longer may be a choice — but for many, it's quickly becoming a necessity. Between rising healthcare costs, inflation, and the decline of traditional pensions, the financial pressure to delay retirement is real,' Kaufman said. 'While some work longer for purpose or passion, others are doing it simply to stay afloat.' Don't wait to start planning. The sooner you start saving and investing, the better your chances of retiring when you want to. More From GOBankingRates I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Warren Buffett Is Retiring at 94: Will Working at Age 90-Plus Become the Norm? 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
