Latest news with #financialGoals
Entrepreneur
6 days ago
- Business
- Entrepreneur
Before You Invest, Take These Steps to Build a Strategy That Works
Learn how to determine where to place your investments with these insightful tips from an experienced business owner and entrepreneur. Opinions expressed by Entrepreneur contributors are their own. Investing doesn't start with your first transaction — it begins much earlier. From defining the types of investments you're interested in to setting clear financial goals, the early stages are critical. Investing can be complex and time-intensive, especially when deciding where to place your capital. That's why having a thoughtful, informed strategy from the outset is so important: it ensures your investments are purposeful and aligned with your longterm vision. Before you commit any resources, take the time to craft a strategy that reflects your goals, values and risk tolerance. A structured approach not only reduces unnecessary risk but also clarifies why you're investing and how each decision supports the bigger picture. This clarity transforms your investment approach from reactive to intentional. As an entrepreneur, I've refined my own investment strategy over time. It's diverse by design, built to support both my financial goals and my broader mission. If you're wondering how to figure out where your own investments should go, here are four actionable steps to help guide your placement strategy: 1. Define your investment goals Start by asking yourself: What do I want my investments to achieve? Are you aiming for longterm wealth, social impact, business expansion or a mix of these? Knowing what success looks like will shape how much you invest, when and where. Consider the types of investments that resonate most—whether that's equity, partnerships, philanthropic initiatives, or ventures tied to innovation. Aligning your goals with your core values will not only give you direction but also help you stay committed when markets shift. Related: How to Diversify Your Business Interests 2. Choose your asset allocation strategy Asset allocation — how you distribute your investments across asset classes — is central to managing risk and return. The main categories include equities, fixed income and cash or cash equivalents. Each has different risk profiles and growth potential. There's no one-size-fits-all approach. My own strategy, for example, spans three buckets: equity and business investments, partnerships and strategic collaborations and philanthropic efforts. This setup works for me because I prioritize both financial returns and impact. A significant portion of my portfolio supports global health, education, and sustainability initiatives. A thoughtful allocation plan helps you stay balanced, even when the markets aren't. 3. Diversify strategically Diversification is a time-tested way to reduce risk. If one sector dips, others can help offset the loss. But meaningful diversification goes beyond spreading your investments — it requires research and intention. Dig into each opportunity. Understand the potential returns, risks, and how each fits into your broader strategy. For me, diversification also means staying engaged with sectors I care deeply about, like innovation, wellness and climate-conscious enterprises. This keeps my portfolio resilient and aligned with my values. Related: The Importance of Portfolio Diversification for Your Investments 4. Stay adaptable Your investment strategy should evolve with you. As your goals, interests and the economic landscape shift, so should your allocations. I regularly revisit my portfolio with a few key questions: How are my current investments performing? Do they still reflect my vision? Are there new opportunities I should explore? Lately, I've been diving deeper into wellness and sustainable living, especially in high-quality nutraceuticals and biohacking. Those shifts came from staying curious and being willing to pivot when the time felt right. Deciding where to place your investments is one of the most important steps in your investing journey. Laying a solid foundation early on helps you navigate growth, risk, and market shifts with confidence. And remember, your strategy isn't permanent—it's a living framework that should adapt as you and the world around you evolve. Stay informed, stay connected, and above all, stay intentional. Your future self will thank you.
Yahoo
28-05-2025
- Business
- Yahoo
Trump Wants To Eliminate Income Taxes: 5 Ways This Could Impact Your Investments
Did you know that individual income taxes accounted for 49.3% of total government revenue in fiscal year 2024? How about that corporate income taxes accounted for another 7.6% of total revenue? One of President Donald Trump's primary campaign stances was the plan to eliminate income taxes. Learn More: Check Out: However, with income taxes accounting for half of total federal revenue, there may be repercussions in other areas, including your investments. Here are five ways that income tax elimination could impact your investments. The taxability of investment income depends on the account type, but some could see higher returns without the income tax. For example, brokerage account income is taxable in the year received, while traditional IRAs and 401(k) plans defer taxes until withdrawals occur. The elimination of income taxes could create higher after-tax returns, if investment income were to be classified as a type of income that would no longer be taxed. Read Next: Eliminating income taxes would mean your hard-earned income would no longer go to the federal government. Instead, you would have more money to contribute to investment accounts. For example, if you make $50,000 annually and pay 15% in taxes, you could have an extra $7,500 to contribute to investment accounts. With more money to contribute, you could make more headway toward your financial goals. Trump's main idea for replacing income tax revenue is imposing tariffs on other countries. Tariffs established so far have already wreaked havoc on the stock market. When tariffs are announced, stocks fall. And when Trump has paused certain tariffs, stocks soar. This volatility is already making investors uneasy. While domestic investments may stabilize in the long run, international investments could become more volatile. For example, if you invest in a Canadian company, what will the impact be from a new tariff? The investment return of the company might drop as they conserve cash to pay tariffs, or the stock price might decline. Some people are hesitant to invest because of the tax implications. Paying income tax on interest, dividends and capital gains can seem like a waste of money. With the income tax barrier removed — again, if it includes investment income — more people may make investments in the market, which stimulates growth. One of the main factors of a thriving market is consumer sentiment: If more people view market investments as safe, the market may produce excellent returns. A potential drawback of eliminating income taxes is the removal of investment tax credits and deductions. For example, the federal government lets people contribute to traditional IRAs and 401(k) plans pre-tax, meaning the contribution is made before tax is taken out and reduces your taxable income for the year. With no income tax, these deductions go away. Employers would likely need to find alternative ways to offer benefits. For example, one of the main benefits of being an employee is a pre-tax employer match to your 401(k). With income taxes removed, benefit packages may need to be reworked. The elimination of income taxes could create both advantages and disadvantages for your investments. Remember, both the Senate and the House need to agree to eliminate the income tax. Only time will tell how this component of Trump's tax plan will take shape. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why Here's the Minimum Salary Required To Be Considered Upper Class in 2025 This article originally appeared on Trump Wants To Eliminate Income Taxes: 5 Ways This Could Impact Your Investments
Forbes
22-05-2025
- Business
- Forbes
6 Easy And Effective Ways To Build A Savings Habit
Build your savings habit It's very easy to say that you want to save money, build wealth, or manage your finances better. But actually doing it and being consistent is one of the hardest things to do. As people always say about exercise, you have to build a habit and make it part of your routine to be effective. Below are discussed six simple ways you can use to help develop your savings habit and achieve your financial goals: You've probably heard the phrase 'pay yourself first' —that you must set aside money before budgeting for expenses because it's hard to save what you don't already have. Simple enough, but easier said than done. When you have bills, groceries, and debts to consider, plus that one restaurant you have been craving to go to or those new shoes you've been salivating about, the urge to save and pay yourself first vanishes. Then you're left with too little or nothing at all for your savings. Nonetheless with automation, it can actually be easy. Just set up automatic transfers from your checking account to a separate savings account so that you don't have to make the decision to save. If you think about it, automating transfers is not even technically a part of your savings habit since it's the app or the bank that's doing it for you. You can have a fixed amount or percentage from each paycheck, say 20%, automatically deducted and transferred to your preferred savings account. You can even route your savings to multiple accounts for different purposes. Take advantage of technology to make savings easier. Whether you are using automated or manual transfers, when you save is equally important. Practice adding to your savings whenever you receive money, such as wages, dividend income, commissions, tax refunds, pensions, government benefits, or bonuses. This helps you avoid the illusion of having more money to spend, especially from unexpected windfalls. Of course, this does not mean depriving yourself or being overly frugal. It's about having the mindset of saving as soon as possible to reduce the chances of spending it all. You should also avoid end-of-month transfers. Never schedule your savings toward the end of a pay period because by then, your checking account has probably absorbed multiple expenses, and your perceived available balance may be lower than what you expected. It will create an internal resistance and increase the temptation to defer savings to a later period. While you may want to prioritize savings, the amount should be realistic so that your savings rate can be sustained over time. Assess your income and financial obligations to determine the optimal amount. Most experts suggest allocating between 10% to 20% of your gross income to savings. This percentage includes your emergency fund, retirement contributions, and other savings goals. You can adjust the amount later as your situation improves or your goals change. If you think you can't afford to save a definite percentage yet, you can also just set a fixed amount each month, say $500. Then you can aim to increase this amount by $50 or so each month as you improve your habits or see areas where you can cut back. What's most important is starting your savings habit. Remember, this is a marathon and not a sprint. Categorize your savings goals and open a different account for each. This helps you save intentionally and reduces the risk of misallocating funds. When you assign different accounts to individual savings goals, you can enhance financial discipline and align short-term behavior with long-term goals. This practice can also help you visualize and track your progress, which serves as a continuous motivation. For example, seeing an account labeled 'Paris 2026' grow from $0 to $3,000 reinforces a narrative of progress and possibility. This way, abstract goals become measurable. Additionally, having your funds in separate accounts creates a kind of barrier that may cause you to think twice about impulse buying. The extra step of transferring from one account to another may just be the hurdle that prevents you from dipping into funds that are earmarked for something else. Some banks even allow you to limit withdrawals or hide account balances which serve as another layer for restraint. Sometimes, you might not even need to have a structured budget to save. The simple act of diligent expense tracking is a big eye-opener. Build the habit of listing and monitoring every expense. You can do this at the end of each day or better yet, take note of each expense every time you make one, no matter the amount. At the end of the week, review your notes. You will be surprised to see how much your daily spending on seemingly inexpensive items add up to a lot. With this information, you can identify areas where you can cut back on spending and allocate those to your savings. Over time, your tracking data will reveal behavioral patterns —such as emotional spending, seasonal fluctuations, or recurring charges you've forgotten to cancel. Recognizing these patterns helps you to make targeted changes, such as setting spending limits, unsubscribing from services, or planning for peak spending periods. It's one thing to discipline yourself, but it's another to have someone else encourage you to save. Involve a friend, family member, or professional advisor in your savings journey to increase accountability. For example, you can work with your spouse to review savings goals and monitor household spending together. Or you can hire a professional financial advisor and conduct regular check-ins to discuss your progress and address challenges. It's also a good idea to involve children in this process. Not only are you improving your savings habits, you are also helping them to develop good financial behavior early. Having external reinforcement can increase your motivation to follow through with your savings goals. Building a savings habit is achievable. Start small, stay consistent, and celebrate your progress along the way. Remember, each dollar you save is a step closer to achieving your financial goals and building a more secure future.
The Sun
22-05-2025
- Business
- The Sun
Big money app with 600,000 customers issues warning ahead of introducing new fee in DAYS
A BIG money app with 600,000 customers has issued a warning ahead of introducing a new fee in days. Hyperjar is a free money management app and prepaid debit Mastercard designed for both adults and children aged six and above. 1 But the firm will soon begin charging a £3 monthly fee to customers who have not used their account for more than 12 months. Customers were informed in an email which read: "It costs money to maintain a HyperJar account and so it doesn't make sense for either us or our customers if it's not being used and enjoyed. "We want to encourage everyone to use HyperJar regularly for budgeting, reaching their financial goals, and making their money go further." This fee will be automatically deducted from your HyperJar balance if your account remains inactive for 12 months or longer. It added that it would begin charging inactive customers from June 3. For example, if there has been no activity since June 2 2024, Hyperjar will take a £3 fee from the account balance on June 3 2025. Customers have just under two weeks to prevent being charged, and there are steps to avoid being caught out. Just using your account will prevent you from being charged. You can send or receive money from another bank or HyperJar account. Transferring money between your HyperJar "jars" will also prevent the fee. Scottish firm goes bust after plunging into administration Making a purchase with your HyperJar card or buying a voucher through the app are other ways to avoid the charge. Remember, to avoid being charged, you need to use your HyperJar account at least once every 12 months. However, if customers prefer to close their account rather than keep it, this can be done by tapping the Profile tab and then heading to profile security to close the account. What does HyperJar offer? HyperJar is a free money management app and prepaid debit Mastercard designed for both adults and children aged six and above. It functions as a digital "jam jar" budgeting system, allowing users to divide their money into separate "jars" for specific spending categories like groceries, holidays, or bills. Users can pay directly from these jars using the linked HyperJar card. The app also offers features such as shared expenses, bill splitting with other HyperJar users, and cashback rewards of up to 20% with selected retailers through "Cashback Vouchers". Kids' Cards are available, offering parents control over children's spending with features like spending limits and instant notifications. HyperJar boasts no fees for overseas spending, using Mastercard's exchange rate. The app also provides budgeting tools, spending controls, and bank-grade security. If you are on the hunt for alternatives, Tesco Clubcard Pay+ is a fee-free option earning Clubcard points. Ode offers cashback at various retailers for those in charity, education, or healthcare, with a £2.99 annual fee after the first year. What are the most popular budgeting apps? THERE are plenty of other money management apps available to help you budget and save effectively. While most apps are free to use, some may offer optional subscription upgrades for additional features. Here, we have outlined several money-saving apps on offer: Emma The Emma app is a free financial management tool available on iOS and Android. It allows you to view all your accounts, including current accounts, savings, credit cards, loans, investments, and even pensions, in one place. Emma automatically categorises your spending, and you can also set your own budgets to track progress and identify potential savings. The app provides regular updates on your bills and spending, giving you a comprehensive overview of your finances. Alternatively, the app's Plus plan, priced at £4.99 per month or £41.99 annually, provides customers with greater flexibility. This includes the ability to link more than two bank or credit card accounts, alongside the option to set regular bill reminders. Monzo Monzo's app provides real-time spending updates, automatically categorises transactions, and allows custom categories. The 'Trends' feature helps visualise spending habits and track progress against monthly targets. 'Pots' are sub-accounts for specific savings goals, with options for scheduled transfers and interest. Monzo Plus and Premium accounts also offer personalised spending targets and additional features The app also allows for transaction round-ups to boost savings. Snoop Snoop allows you to link your bank accounts and credit cards, providing you with a personalised digital assistant to help you manage your budget more effectively. The app highlights potential savings opportunities, such as switching to a cheaper utility provider, and offers tailored insights to optimise your spending. You can also set up alerts to help you stay on track and avoid overspending. Snoop is free to download on smartphones via the Apple App Store or Google Play Store. For those seeking enhanced functionality, Snoop Plus offers additional features through a subscription priced at £4.99 per month or £39.99 a year.
Forbes
10-05-2025
- Business
- Forbes
Here Are 6 College Savings Account Types You Should Know
College savings jar full of coins getty Funding college education is one of the most important financial goals you can have. While reports differ as to whether costs are rising or falling in recent years, college tuition is still a significant expense, even with financial aid and scholarships. Whether you are a parent, guardian, or student, understanding and comparing different savings options can help you plan better. This article explores six common college savings accounts in the United States. Named after Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions. A 529 plan is an investment account that features tax advantages and potentially other incentives that make it easier to save for college or other educational expenses. Most 529 plans have access to a range of investment portfolios, including age-based options that automatically adjust risk as the beneficiary approaches college age. While states offer different perks and benefits for contributing to 529 plans, a common feature is that your earnings grow tax-free at the federal level. Withdrawals used for qualified education expenses, such as tuition, room and board, books, and other mandatory expenses, are also tax-free. There is no federal contribution limit for 529 college savings plans, but each state sets their own, ranging from $235,000 to more than $500,000 per beneficiary. For example, you can contribute up to $529,000 in California, $350,000 in Kentucky, and $269,000 in North Dakota. Incidentally, Wyoming is the only state that does not offer a 529 plan. Funds can be also transferred between beneficiaries if one child doesn't use all the money. The Tax Cuts and Jobs Act of 2017 has also expanded the use of 529 funds to include up to $10,000 per year for K–12 tuition and a lifetime limit of $10,000 for student loan repayment. As such, 529 plans are ideal if you are seeking a long-term, tax-efficient vehicle for college savings. Their high contribution limits and broad eligibility make them accessible to most households. This is another type of 529 plan administered by state governments. It allows you to purchase future college tuition at current prices, helping you lock in costs and better plan your finances. Unlike 529 college savings, prepaid tuition plans are considered conservative since they do not typically have an investment component. Nonetheless, they are reliable vehicles that can shield you from rising college costs. You must note that prepaid plans cover only tuition and mandatory fees, not room and board or other expenses. They are also limited to public in-state colleges and universities, meaning if a beneficiary chooses to attend a private or out-of-state institution, the plan may pay only a portion of the tuition equivalent, which could significantly reduce its value. Lastly, many prepaid plans have residency requirements. Hence, these plans are best suited if you are confident you or your child will attend an in-state public institution. This is a special savings account that can be used for both K–12 and higher education expenses. These accounts are not state-sponsored but are instead established through financial institutions. A Coverdell ESA allows tax-free growth and tax-free withdrawals for education expenses. However, unlike 529 plans, the range of qualified expenses is broader and includes other items like tutoring, school supplies, and uniforms. A major drawback of the ESA is its relatively low annual contribution limit, just up to $2,000 per beneficiary. There are also income limits for contributors, adjusted periodically. This year, eligibility phases out for modified adjusted gross incomes between $95,000 and $110,000 for single filers, and $190,000 to $220,000 for joint filers. The funds must also be used by the time a beneficiary turns 30. If not, the remaining balance must be transferred to another eligible family member or will face taxes and penalties. Coverdell ESAs are ideal if you want to be able to use the funds for a wide range of education expenses, especially during your child's K–12 years. Custodial accounts, established under the Uniform Gifts to Minors Act (UGMA) or Uniform Transfers to Minors Act (UTMA), allow adults to transfer assets to a minor without establishing a trust. These accounts are not specifically designed for education but can be used for any purpose that benefits a child. These accounts do not offer the same tax advantages as 529 or Coverdell accounts. A portion of the earnings is subject to the kiddie tax, where the unearned income may be taxed at a parent's marginal rate. Importantly, the assets in a custodial account become the child's legal property when they reach the age of majority (18 or 21, depending on the state). Custodial accounts are best suited for families who want to make financial gifts to a child without restricting its use solely for education. They are also useful when larger gifts are planned that exceed annual gift tax exclusions. A Roth IRA is typically a retirement savings vehicle, but it can also be used for education expenses. Contributions to a Roth IRA are made with after-tax dollars, and earnings grow tax-free, like 529 savings plans and Coverdell accounts. While early withdrawals of earnings usually incur penalties, Roth IRAs allow for penalty-free (but not necessarily tax-free) withdrawals if used for qualified higher education expenses. Your contributions can always be withdrawn tax- and penalty-free. The annual contribution limit for Roth IRAs in 2025 is $7,000, with an additional $1,000 catch-up contribution for those age 50 or older. Eligibility phases out between $146,000 and $161,000 for single filers and $230,000 to $240,000 for married couples filing jointly. Remember that using a Roth IRA for education depletes your retirement savings so you must weigh the opportunity cost of sacrificing long-term growth for near-term expenses. Roth IRAs work well for families seeking a multi-purpose account with flexibility. Of course, you can also use a traditional savings account. You can open a separate savings account in a bank or credit union, and earmark it for future educational expenses. They are accessible and easy to open, have no age restrictions, and are FDIC-insured up to $250,000. However, interest rates on these accounts are relatively lower, compared to the other options, so your savings may not earn enough to keep pace with inflation. They also do not offer tax benefits for education expenses, which means your earnings may be subject to federal or state taxes. You can use traditional savings accounts as a supplement to your other college savings. You may also use it as a kind of college emergency fund. Before you choose which college savings account to use, consider your household income, target educational institution, future financial aid eligibility, tax implications, and your long-term goals. You may also layer strategies to maximize flexibility and tax efficiency. As each family situation is unique, consider seeking professional advice. These experts can provide you with tailored guidance based on your specific needs and circumstances.
