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Yahoo
a day ago
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Grant Cardone Says 'Consumer Debt Makes Slaves.' It Stops You From Investing, Costs You More, And Chains You To Stress
Real estate mogul Grant Cardone has made his stance on consumer debt crystal clear. In a recent post on X, the real estate mogul and motivational speaker warned that debt doesn't just slow people down financially—it traps them. 'Consumer debt makes slaves!' Cardone wrote. He broke it down into five main consequences: 'Can't invest, can't keep up, pay extra for everything, can't build net worth, never live stress free.' Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Peter Thiel turned $1,700 into $5 billion—now accredited investors are eyeing this software company with similar breakout potential. Learn how you can Cardone's post reflects a growing concern in the U.S. as consumer debt keeps climbing. According to LendingTree (NASDAQ:TREE), Americans owed a record $251 billion in personal loan debt as of the fourth quarter of 2024. That's a $6 billion jump from the year before. And it's not just the total amount. TransUnion (NYSE:TRU) data shows that the number of Americans with personal loans hit 24.5 million, up from 23.5 million a year earlier. While personal loan debt still makes up just 1.4% of all consumer debt, it accounts for 5% of non-mortgage debt. For comparison, credit card debt is much higher, sitting at $1.211 trillion, or 6.7% of total outstanding debt. According to TransUnion, the average personal loan balance per borrower is $11,607. Nearly half of borrowers take out loans just to consolidate or refinance other debt. Another 10% use the money to pay everyday bills. Trending: Invest where it hurts — and help millions heal:. As Cardone wrote, 'You pay extra for everything' when you're stuck in debt. High interest rates only make it worse. Borrowers with excellent credit scores — over 720 — can expect personal loan APRs around 17.71%. But for those with poor credit — below 560 — rates skyrocket to over 200%, according to LendingTree data. Despite high costs, personal loan use is expected to grow. People turn to them as credit card debt rises. LendingTree notes that many borrowers aren't necessarily in crisis—they might be remodeling a home or covering a big expense. Still, as Cardone puts it, for those already stretched thin, more borrowing can result in serious stress and financial strain. Delinquency rates also tell a cautionary tale. TransUnion reported that as of Q4 2024, 3.57% of personal loan accounts were 60 or more days past due. That's an improvement from the year before but still higher than rates for mortgages — 1.29% — or credit cards — 2.56%. Cardone's message is harsh but timely. With debt balances climbing and millions relying on personal loans to stay afloat, his warning resonates: consumer debt doesn't just drain your wallet—it can drain your peace of mind. Read Next: Maximize saving for your retirement and cut down on taxes: . The average American couple has saved this much money for retirement —?UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? LENDINGTREE (TREE): Free Stock Analysis Report TRANSUNION (TRU): Free Stock Analysis Report This article Grant Cardone Says 'Consumer Debt Makes Slaves.' It Stops You From Investing, Costs You More, And Chains You To Stress originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
2 days ago
- Business
- Yahoo
The Best $100 Gen Z Can Spend on Retirement Planning
Gen Z may be decades away from retirement, but the steps they take today can significantly impact their future financial freedom. Learn More: Read Next: With time on their side, small, smart investments can now compound into significant returns later. Whether it's spending $100 on a one-time financial consult, a subscription to a savvy budgeting app or even investing in a starter index fund, the key is starting early and wisely. Here's the best $100 Gen Z can spend on retirement planning. Budgeting apps and robo-advisors can turn passive habits into active wealth-building strategies. For Gen Z, investing a small fee in the right tool can lead to consistent savings, long-term growth and financial stability. 'Paid tools can be worthwhile when they nudge you into better habits or automate tasks you'd otherwise skip,' said Lily Vittayarukskul, CEO and co-founder of Waterlily. Vittayarukskul said budgeting apps like YNAB come with a small subscription cost, but can help users become more deliberate with their spending. Meanwhile, robo-advisors like Betterment and Wealthfront offer automated investing services for a low annual fee. This approach appeals to around 40% of Gen Z investors who prefer a hands-off approach. 'The price tag is usually minor compared to the value of disciplined saving and diversified investing they facilitate,' Vittayarukskul said. 'I personally use Copilot, and I like that the finally added savings goals last month, but I think that most of the options out there have become very comprehensive and user friendly.' She added, 'Just make sure any app you pay for truly gets you to invest and track your spending in a way that is compounding your wealth and taking care of any high interest debts.' I'm a Financial Expert: Gen Z can skip the hype and spend $100 opening an account with a reputable brokerage that offers diversified, long-term investment options. 'The biggest mistakes I see younger adults making when trying to get ahead financially are listening to the wrong people and chasing outsized returns,' said Tyler End, a certified financial planner and CEO of Retirable. Starting with a solid, low-cost platform keeps new investors focused on sustainable growth without the distractions of viral trends or high-risk bets. Some examples include: Fidelity: No minimum investment for many accounts, zero-commission trades and strong educational tools. Offers Roth IRAs and index funds with no expense ratio. Vanguard: Known for low-cost index funds and long-term investing. Best suited for those who prefer a simple, set-it-and-forget-it approach. Charles Schwab: $0 account minimums, a wide range of low-fee ETFs and mutual funds, and solid customer support. Gen Z doesn't need thousands to start investing for retirement. With just $100, they can open a Roth IRA, one of the most tax-efficient accounts available, and begin compounding gains over decades. 'A Roth IRA is a great place to build and, given their time horizon, they can afford to take on more strategic risk in the market which can make for higher returns,' said Lukendric Washington, founder of Manifest Wealth Management. Washington said by splitting the money between a high-yield savings account for emergencies and a Roth IRA for the long term, Gen Z can build short-term security and long-term returns, laying the foundation for more confident investing down the line. Spending $100 on digital estate planning services can help Gen Z start organizing their assets, even if retirement is decades away. 'Digital estate planning tools can be a smart investment not just for older generations, but for Gen Z because they simplify you and your loved ones' lives and help you make more informed decisions,' said Howard Enders, the COO at the Estate Registry. 'These easy-to-use tools allow tech-savvy Gen Z to stay organized and prepared in ways that traditional methods often fall short,' Enders explained. 'By having all your important documents and assets all in one secure digital location, designated individuals can easily access anything they may need should anything happen.' In addition, it's a low-cost way to ensure the money and accounts they're building now are protected, and it helps form good habits around long-term financial responsibility. 'The real value lies in bringing long-term clarity and peace of mind, no matter your age or stage of life,' Enders said. More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on The Best $100 Gen Z Can Spend on Retirement Planning Sign in to access your portfolio
Yahoo
07-06-2025
- Business
- Yahoo
Want To Be In The Top 5% Of Households? Here's Exactly How Much You Need—And It's Much Lower Than You'd Guess
How do you know if you're actually rich — like, rich rich? If you've ever wondered whether your savings, investments, or home equity stack up to the country's wealthiest, there's a number that draws the line. And while it might sound like an elite bracket reserved for finance bros and inheritance babies, the top 5% isn't as far out of reach as some might think. You'll hear people toss around figures like "I want to retire with $5 million," or "You're not rich until you never check your balance." Fair. But in the background, many are just quietly checking to see if their net worth is even close to making the cut. You'll spot them in Reddit threads, in comment sections, or sitting across from you at brunch, casually mentioning their Roth IRA. So—how rich do you need to be to join the top 5% of households? Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Maximize saving for your retirement and cut down on taxes: . According to the Federal Reserve's Survey of Consumer Finances, you'd need a net worth of about $3.8 million to break into the top 5% of U.S. households. That includes everything you own—retirement accounts, investments, your home—minus any debts you owe. Seems steep? Compared to the median net worth in America, which is around $192,700, it is. But if you've been aggressively saving, investing wisely, or just got lucky with some real estate timing, you might be closer than you think. The average net worth of households in the U.S. is about $1.06 million, but don't let that fool you. Averages get warped by the ultra-wealthy. The median is a better measure for the "typical" household—and that's why $192,000 matters. If you're above it, you're ahead of most. If you're below it, you're not alone. Trending: Invest where it hurts — and help millions heal:. This number includes: Retirement savings (401(k), IRA) Brokerage and investment accounts Real estate equity Business ownership or equity Cash and bank holdings Minus credit card debt, student loans, mortgages, etc. It doesn't count income—this is strictly net worth, not how much you make. Whether you're halfway there or just getting started, here are a few things that actually move the needle: Automate your investing. Consistency beats timing. Pay down high-interest debt. It eats your momentum. Own appreciating assets. Think equities or property, not depreciating toys. Reinvest wisely. Compound interest rewards the yourself to others isn't the recipe for happiness—but it is human nature. Benchmarks like this help give context, not judgment. Some people live well below their means and still feel broke. Others drive a 15-year-old car and feel free. Your version of "rich" might mean peace of mind, flexibility, or just not sweating the small stuff. These numbers are guideposts, not gospel. But if you're aiming for top 5% status? Now you know the number. The rest is strategy. Read Next: Here's what Americans think you need to be considered wealthy. Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Want To Be In The Top 5% Of Households? Here's Exactly How Much You Need—And It's Much Lower Than You'd Guess originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. 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
