Latest news with #Shirshikov
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
11-06-2025
- Business
- Yahoo
4 Non-Emergencies Where a Personal Loan Makes Sense
Not every financial need is a full-blown emergency. Sometimes, life just throws you a curveball — or an opportunity — and you need a little extra cash to handle it smoothly. Read More: Find Out: That's where a personal loan can come in handy. From covering big life moments to tidying up your finances — here are some non-emergencies where taking out a personal loan might actually make a lot of sense. According to Lending Tree, Americans have an absolute mountain of credit card debt — $1.18 trillion, to be exact. Chris Heerlein, CEO of REAP Financial, noted that a personal loan can make sense when used to consolidate high-interest credit card debt. He worked with a client carrying multiple cards with rates above 20%. 'We used a personal loan with a lower fixed rate to wipe that out,' said Heerlien. It immediately reduced their monthly interest burden and simplified their payments into one. It wasn't an emergency, but it gave them breathing room and helped improve their credit score over time. Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, similarly agreed. He said that among the most common overlooked examples is taking out a personal loan to pay off higher-interest credit card debt. What's frequently overlooked is that the psychological effect of going from multiple high-interest revolving uses of debt to a single fixed monthly payment can be transformative. 'It's not just a loan, you're not just refinancing — you're resetting your theoretical money model,' said Shirshikov. Discover Next: According to Shirshikov, most traditional banks will not issue a business loan for a $5,000 idea, but a personal loan can be a bridge within reach. He's personally seen new entrepreneurs borrow small sums to purchase equipment or inventory for their Amazon FBA (Fulfillment by Amazon), mobile detailing business or Etsy storefront. 'The trick is to see the loan as a short-term shot in the arm, not a crutch,' he said. Another example? Medical procedures that are not emergencies but are life-altering. Think dental implants or fertility services. These aren't luxuries; they're delayed necessities that don't easily come under insurance coverage. Personal loans, Shirshikov explained, especially those with clearly defined repayment terms, can give people the chance to take charge of their health without capsizing their financial lives. Even spending money on professional development — like an executive master of business administration (M.B.A.) class, a coding boot camp, or a specialized certificate — may be reasonable. 'You're borrowing against your future earning potential, essentially, and when the return on investment (ROI) is clear, the math usually adds up,' said Shirshikov. More From GOBankingRates 7 Luxury SUVs That Will Become Affordable in 2025 This article originally appeared on 4 Non-Emergencies Where a Personal Loan Makes Sense Sign in to access your portfolio
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
Yahoo
01-06-2025
- Business
- Yahoo
Think Lower Inflation Means Cheaper Prices? Think Again
If you've seen headlines celebrating lower inflation and assumed that meant your grocery bill or rent would magically shrink — sorry to burst your bubble. While lower inflation sounds like good news (and it is, sort of), it doesn't mean prices are going down. Andrew Lokenauth, money expert and owner of Fluent in Finance, has noticed this misconception all the time when talking to his clients about financial planning. 'The thing is, most people mix up 'disinflation' (slower price increases) with 'deflation' (actual price drops). And I get it — the terminology is confusing as hell. When headlines scream 'Inflation falling to 3%!' it sounds like prices must be dropping too.' Here's what's really going on. Find Out: Read Next: According to Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at Growth Limit, the false idea that lower inflation means lower prices comes from a fundamental misunderstanding of what inflation actually measures. 'Inflation is the general price level, not the absolute prices.' This is what's happening: When the inflation rate decreases, all that is happening is that prices are still increasing, but at a slower rate. This can be misleading to a lot of people, Shirshikov explained, because most people would expect that less inflation means that prices would be going down rather than going up at a slower rate. See More: 'Picture the cost of a gallon of milk. Milk costs 5% more this year than it did last year when inflation [was] 5%. Even if inflation drops to 2%, the cost of milk would still go up, but at a much slower pace — only 2%, not 5%,' said Shirshikov. So basically, although that may be a welcome development in the sense that it will take pressure off household budgets, it's important to recognize that the prices are not actually falling, they are simply rising less rapidly. If you were relying on prices to act as a sort of after-inflation cut in the price of money itself, it's time to reset your expectations. The best thing is to concentrate on how to manage and control other parts of your budget and investment strategy. As the price of goods goes up in the coming months, you may want to see if there are opportunities to reduce expenses, diversify investments and lock in fixed prices for necessary services now to avoid paying more later. 'Let's face it, being proactive with your financial planning is important for managing inflation — even when it's not as aggressive as before,' Shirshikov said. More From GOBankingRates 10 Cars That Outlast the Average Vehicle Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why This article originally appeared on Think Lower Inflation Means Cheaper Prices? Think Again
Yahoo
07-05-2025
- Business
- Yahoo
5 Bad Money Habits That Are Harder on Your Wallet Than Paying Bills
Paying bills feels like the most painful part of adulting — but believe it or not, some of your everyday money habits could be draining your wallet even more. Try This: I'm a Financial Advisor: 10 Most Awesome Things You Can Do for Your Finances For You: The New Retirement Problem Boomers Are Facing 'I have seen firsthand how certain financial habits can compound problems for individuals who feel trapped by high bills and mounting expenses,' said Dennis Shirshikov, professor of finance at City University of New York and head of growth and engineering at GrowthLimit. While managing bills is a necessity, he explained there are underlying money habits that tend to exacerbate financial struggles, often without folks realizing the long-term consequences. These habits, left unchecked, can erode wealth and prevent people from improving their overall financial standing, even when they are already overwhelmed by their 'needs' bills. From sneaky spending patterns to financial blind spots everyone falls into, here are a few habits that might be costing you more than your rent or electricity combined. Overlooking Small, Regular Expenses 'One of the most destructive behaviors that people develop is that of discounting the small, regular costs that seem as though they don't matter on a day-to-day basis,' Shirshikov said. Things like subscriptions, convenience services and regular, seemingly harmless purchases can add up unchallenged — you won't miss spending $10 or $20 on a daily basis, perhaps, but in the long run, those little bits add up to hundreds of dollars that could easily be saved or channeled into other, more lifestyle-defining, financial aims. Consider This: 9 Things the Middle Class Should Consider Downsizing To Save on Monthly Expenses Not Saving for Emergencies One of the most common mistakes, according to Kevin Shahnazari, founder and CEO of FinlyWealth, is being paycheck to paycheck and not saving or setting aside funds for unexpected events. In fact, one U.S. News survey found that two in five Americans (42%) don't have an emergency savings fund. 'When individuals are not saving even a fraction of their income for the future, they put themselves in a situation where they are constantly scrambling to cover unexpected expenses,' Shahnazari explained. This can result in a stack of high-interest debt, which only makes the problem worse in the long term. Relying Too Heavily on Credit for Daily Needs Many, particularly those with high costs, use credit cards as a way to balance income and expenses. That may provide breathing space, but tapping credit to pay for staples — in particular, not paying off the credit card in full every month — adds to the financial pressure.
