Latest news with #Kovar
Yahoo
27-04-2025
- Business
- Yahoo
Why the Key to Wealth Isn't About Cutting Costs
For most people, in order to build wealth, you need to start by cutting back on some expenses to free up more money for saving and investing. However, cutting costs is not the true key to building wealth, which requires more strategy, thought and time than simply rearranging your budget. Experts explain some of the real ways to build wealth. Check Out: Read Next: Financial experts may urge paring back on your dining out and looking for discounts as a first step to wealth-building, but that's only skimming the surface, according to Taylor Kovar, CFP, founder and CEO at 11 Financial. 'A lot of people think the path to wealth is paved with extreme couponing and skipping the morning latte, but in my experience, focusing only on cutting costs can actually keep people small,' he said. If your focus is on 'every dime,' he said it's hard to 'dream big or take strategic risks.' Thinking only about cutting puts people on the defensive about money rather than thinking about how to grow it. Learn More: While frugality is a good trait to have, because it's tied to discipline, frugality only focuses on reducing expenses. 'That is only half the equation,' according to Robert R. Johnson, PhD, CFA and professor of finance in the Heider College of Business at Creighton University. 'A true wealth-building mindset pays attention to expenses, but focuses on building revenues and revenue sources that work for you instead of the other way around,' he said. He quoted billionaire Warren Buffett, who once said, 'If you don't find a way to make money while you sleep, you will work until you die.' Building true wealth comes from investing your income over the long term and 'taking prudent risk,' Johnson said. 'One doesn't build true wealth by investing conservatively. The difference in investing aggressively versus conservatively is large.' He shared a statistic from Ibbotson Associates: Since 1926 the average annual return on a large-capitalization stock index (such as the S&P 500) is 10.3%, whereas investments in long-term government and long-term corporate bonds have on average grown annually by 5.7% and 6.2%, respectively. Kovar added that wealth builders 'take calculated risks,' and that he's seen more success 'from people who started side businesses, developed new skills or negotiated better salaries than from those who just focused on spending less.' What investing in the stock market does is allow for 'compounding interest' — where the interest you earn is reinvested, Johnson explained. 'Because of compounding, time is the greatest advantage in investing.' The earlier you invest, the sooner you let that compounding process 'work its patient magic over decades,' Johnson said. As important as it is to free up funds to save or invest, 'You simply can't cut costs to create long-term wealth,' Johnson said. Kovar agreed, adding, 'Income growth matters more than people think. You can only cut so much, but there's almost unlimited upside to increasing your income through entrepreneurship, investing or leveling up in your career.' Kovar finds that when people start viewing money 'as a tool instead of a limitation,' their whole outlook changes. 'It's not about how little you can spend, it's about how wisely you can use what you have to multiply it. That's the shift. Strategic money growth beats extreme sacrifice every time,' he said. While cutting may not be enough to build wealth, budgeting is incredibly important in the process, Johnson said. 'For those who are afraid they aren't saving enough, they should budget for savings and invest those savings. Specifically, one should not simply budget and track expenses, but one should budget for savings.' If individuals truly want to make savings a priority, you can't just rely on what is left over after your expenses — it should be a line item on your budget, Johnson urged. 'You don't successfully build wealth by simply taking what you have left after all your expenses. We accomplish what we prioritize. Prioritize savings and invest those savings.' Additionally, Johnson finds making extreme sacrifices to build wealth 'unrealistic and frankly unhealthy.' It's better to balance current needs versus future needs and not neglect either, he said. Similarly, extreme money resolutions or goals can also work against you. 'Eliminating all discretionary spending is simply unrealistic and is a goal that cannot be met. We are all unique and what provides each of us with the most happiness is very different,' he said. Thus, if you enjoy your daily cup of coffee out at the local cafe, or the occasional avocado toast, cutting that out isn't necessarily going to make you much wealthier, and it might make you unhappier in the process. The problem that people get into is that they spend money on everything and don't prioritize, Johnson said. 'Prioritize what makes you happy and direct your resources there. Minimize spending on items that don't really matter to you.' More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth How To Get the Most Value From Your Costco Membership in 2025 How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Taylor Kovar, 11 Financial Robert R. Johnson, Heider College of Business at Creighton University This article originally appeared on Why the Key to Wealth Isn't About Cutting Costs Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
Why the Key to Wealth Isn't About Cutting Costs
For most people, in order to build wealth, you need to start by cutting back on some expenses to free up more money for saving and investing. However, cutting costs is not the true key to building wealth, which requires more strategy, thought and time than simply rearranging your budget. Experts explain some of the real ways to build wealth. Check Out: Read Next: Financial experts may urge paring back on your dining out and looking for discounts as a first step to wealth-building, but that's only skimming the surface, according to Taylor Kovar, CFP, founder and CEO at 11 Financial. 'A lot of people think the path to wealth is paved with extreme couponing and skipping the morning latte, but in my experience, focusing only on cutting costs can actually keep people small,' he said. If your focus is on 'every dime,' he said it's hard to 'dream big or take strategic risks.' Thinking only about cutting puts people on the defensive about money rather than thinking about how to grow it. Learn More: While frugality is a good trait to have, because it's tied to discipline, frugality only focuses on reducing expenses. 'That is only half the equation,' according to Robert R. Johnson, PhD, CFA and professor of finance in the Heider College of Business at Creighton University. 'A true wealth-building mindset pays attention to expenses, but focuses on building revenues and revenue sources that work for you instead of the other way around,' he said. He quoted billionaire Warren Buffett, who once said, 'If you don't find a way to make money while you sleep, you will work until you die.' Building true wealth comes from investing your income over the long term and 'taking prudent risk,' Johnson said. 'One doesn't build true wealth by investing conservatively. The difference in investing aggressively versus conservatively is large.' He shared a statistic from Ibbotson Associates: Since 1926 the average annual return on a large-capitalization stock index (such as the S&P 500) is 10.3%, whereas investments in long-term government and long-term corporate bonds have on average grown annually by 5.7% and 6.2%, respectively. Kovar added that wealth builders 'take calculated risks,' and that he's seen more success 'from people who started side businesses, developed new skills or negotiated better salaries than from those who just focused on spending less.' What investing in the stock market does is allow for 'compounding interest' — where the interest you earn is reinvested, Johnson explained. 'Because of compounding, time is the greatest advantage in investing.' The earlier you invest, the sooner you let that compounding process 'work its patient magic over decades,' Johnson said. As important as it is to free up funds to save or invest, 'You simply can't cut costs to create long-term wealth,' Johnson said. Kovar agreed, adding, 'Income growth matters more than people think. You can only cut so much, but there's almost unlimited upside to increasing your income through entrepreneurship, investing or leveling up in your career.' Kovar finds that when people start viewing money 'as a tool instead of a limitation,' their whole outlook changes. 'It's not about how little you can spend, it's about how wisely you can use what you have to multiply it. That's the shift. Strategic money growth beats extreme sacrifice every time,' he said. While cutting may not be enough to build wealth, budgeting is incredibly important in the process, Johnson said. 'For those who are afraid they aren't saving enough, they should budget for savings and invest those savings. Specifically, one should not simply budget and track expenses, but one should budget for savings.' If individuals truly want to make savings a priority, you can't just rely on what is left over after your expenses — it should be a line item on your budget, Johnson urged. 'You don't successfully build wealth by simply taking what you have left after all your expenses. We accomplish what we prioritize. Prioritize savings and invest those savings.' Additionally, Johnson finds making extreme sacrifices to build wealth 'unrealistic and frankly unhealthy.' It's better to balance current needs versus future needs and not neglect either, he said. Similarly, extreme money resolutions or goals can also work against you. 'Eliminating all discretionary spending is simply unrealistic and is a goal that cannot be met. We are all unique and what provides each of us with the most happiness is very different,' he said. Thus, if you enjoy your daily cup of coffee out at the local cafe, or the occasional avocado toast, cutting that out isn't necessarily going to make you much wealthier, and it might make you unhappier in the process. The problem that people get into is that they spend money on everything and don't prioritize, Johnson said. 'Prioritize what makes you happy and direct your resources there. Minimize spending on items that don't really matter to you.' More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth How To Get the Most Value From Your Costco Membership in 2025 How Much Money Is Needed To Be Considered Middle Class in Every State? Sources Taylor Kovar, 11 Financial Robert R. Johnson, Heider College of Business at Creighton University This article originally appeared on Why the Key to Wealth Isn't About Cutting Costs Sign in to access your portfolio
Yahoo
15-04-2025
- Business
- Yahoo
77% of Americans Plan To Use Tax Refunds for Essential Expenses: 5 Tips for Using Yours
For Americans who usually receive a tax refund, that spring windfall sometimes helps cover a treat, like a family vacation, a pool or new patio furniture. But for a majority of people this year, their tax refund is going toward necessities, according to a study from Talker Research, commissioned by TaxSlayer. The study found that 77% of Americans will spend their tax refund on necessities this year. What's on the top of their list? More than half (52%) of those polled said the money will go toward rent or utility bills. Meanwhile, 44% will put the money toward groceries and essential goods. Thirty-seven percent are using the cash to pay down credit card debt, with 56% of that group still paying off holiday bills. This is common — and nothing to be ashamed of — in today's financial environment. Check Out: Learn More: 'If your refund is going straight to keeping the lights on and food in the fridge, that probably says more about the cost of living than your decision-making,' said Taylor Kovar, CFP, founder and CEO of 11 Financial. 'That kind of pressure is real.' However, there are ways to plan ahead to remove some of that financial sting throughout the rest of 2025. Try spending what you can of your tax refund strategically to try to get ahead. If you're consistently running behind on fixed expenses, like your car loan, rent or utility bills, you should 'zoom out and look at the patterns,' Kovar advised. 'It's worth seeing if there's a monthly expense that's quietly draining your budget.' See if you can change due dates on bills so everything doesn't hit your bank account at the same time too. If you have good credit, consider consolidating some of your credit card debt to a 0% interest credit card that you can aim to pay off within 12 to 18 months. Sometimes, small tweaks like changing due dates and reducing interest payments can provide the breathing room you need. Be Aware: If you can, deposit part of your refund into a high-yield savings account to provide a buffer for months when emergency expenses crop up or cash gets tight. 'The goal isn't perfection,' Kovar said. 'It's just trying to make the months ahead feel a little less like a juggling act.' If you're still paying off last year's holiday celebrations, take heart. 'You're not the only one,' Kovar said. 'A lot of people spend January through April trying to clean up December.' But it's still early enough to avoid the situation this holiday season. 'Start thinking now about what you want to spend and what kind of holiday feels good for your budget and your sanity,' Kovar advised. 'A little planning goes a long way, so you're not scrambling at the last minute.' Many online and traditional banks offer special holiday savings accounts or savings buckets that allow you to set aside money for specific goals. If you can tuck away $100 a month at a 4% monthly interest rate from April to November, you'll have more than $900 in the bank to take advantage of holiday deals come Black Friday. Once you've paid off last year's holiday debt, you can even use your tax refund to jump-start your holiday savings fund. If your emergency savings is in decent shape, consider a Roth IRA to help build your retirement fund. With the stock market in a downswing, it might be tempting to invest in some of your favorite brands. But keep finance expert Suze Orman's advice in mind: 'Money you have in the market should have been money you did not need for at least five years,' she wrote in a recent Facebook post. Investments don't always have to be related to building your portfolio, either. An investment might pay for itself through tangible improvements to your life, such as greater productivity or opportunities for passive income down the line. Kovar recommended investing any extra tax refund money in something that matters, such as a business, a side gig, or even a much-needed vacation that can help you avoid burnout and leave you feeling more refreshed and creative when you return.'It's … about putting the money somewhere that helps you sleep better at night. If it's doing something useful for your future or reducing stress, it's probably a solid call,' he said. A hefty tax refund doesn't always indicate smart financial choices. You're essentially giving the IRS an interest-free loan of your hard-earned money. If you're getting a large refund in April but scrambling to make ends meet throughout the year, 'look at adjusting your withholdings to keep more of that money in your paycheck,' Kovar for people who aren't disciplined savers, that tax refund can help you get ahead, splurge on something fun or bolster your savings account. Make sure to keep good records of your expenses and potential deductions, especially if you run a business or have a side gig, Kovar advised. 'The smoother your records, the less of a headache tax time becomes,' he said. More From GoBankingRates6 Reasons Your Tax Refund Will Be Higher in 2025 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 5 Cities You Need To Consider If You're Retiring in 2025 This article originally appeared on 77% of Americans Plan To Use Tax Refunds for Essential Expenses: 5 Tips for Using Yours Sign in to access your portfolio
Yahoo
24-03-2025
- Sport
- Yahoo
Kovar's Leverkusen future uncertain as replacements are lined up
Bayer Leverkusen's second-choice goalkeeper Matej Kovar can leave the club in summer, Kölner Stadt Anzeiger reports. Since his arrival from Manchester United in 2023, Kovar has failed to oust first-choice Lukas Hradecky from the goal. The Czechia international did enjoy spells between the sticks in last year's Europa League run and this season's Champions League campaign. However, the 24-year-old does not seem to be part of Leverkusen's long-term plans. A host of potential replacements have been listed including Man City's backup Stefan Ortega, SC Freiburg's Noah Atubolu and Alex Meret of Napoli. Several rumours have also linked Die Werkself to promising Spanish shot-stopper Joan Garcia who is currently at RCD Espanyol.
Yahoo
23-03-2025
- Sport
- Yahoo
Report: Leverkusen looking for new keeper as Kovar can leave
Bundesliga champions Bayer Leverkusen are reportedly set to let goalkeeper Matej Kovar go in summer and have started looking for a new man alongside Lukas Hradecky. Daily Kölner Stadt-Anzeiger said that Kovar can leave two years after arriving from Manchester United despite a contract until 2027. Kovar played 30 matches, mainly in cup competitions including the Champions League, but never fully managed to be on par with Hradecky. "It is part of our job and especially that of the scouting department to be prepared for all scenarios in all positions. That also applies to the goalkeeper position," Leverkusen managing director for sport Simon Rolfes said. Candidates are said to include Manchester City's Stefan Ortega, Noah Atubolu of Freiburg and Napoli's Alex Meret.
