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Forbes
12 hours ago
- Business
- Forbes
Four Overlooked But Vital Ways To Strengthen Cyber Incident Responses
Phillimon Zongo, CEO and cofounder of Cyber Leadership Institute, and a bestselling author of 3 books, including The Gift of Obstacles. Over 40 years after the breach of TRW Information Services' (now known as Experian) computers, which had the "credit histories of 90 million people" (registration required), many organizations are still struggling with effectively handling cyber crises, which can lead to the risk of brand damage, regulatory fines and even bankruptcy. In my experience leading cyber incident response teams and facilitating dozens of executive cyber crisis simulations, I have identified five essential, but often overlooked, strategies that can help leaders enhance cyber incident responses at their companies. 1. Manage Team Burnout And Stress Sophisticated cyber incursions force response teams to work for prolonged, stressful periods as they quarantine corrupted devices, close backdoors and clean up messes. Consider this: Toll Group, an Australian logistics giant, was reported to be still cleaning up its systems nine months after a ransomware attack in 2020. When response measures get extended, physical and mental fatigue can kick in, eroding decision-making capacity. Some data breaches also compromise the safety of employees. A chilling reminder came in June 2025, when sophisticated attackers breached some of the email accounts of Washington Post journalists. A Reuters article noted that per the initial report of the breach published by The Wall Street Journal, the journalists "whose emails were targeted included members of the national security and economic policy teams, including some who write about China." This breach demonstrates that hostile players can target individuals within organizations, not just organizations themselves. To mitigate these two often-overlooked matters, management must provide flexible breaks that allow staff to temporarily step away to decompress. Line managers must also be adequately trained to spot burnout signs, distribute workloads, rotate teams (which can be accomplished by tapping into consulting budgets and engaging external consultants) and direct staff toward confidential counseling services. Furthermore, executives should provide contextualized and clear security briefings for front-line staff, equipping them to manage hostile interactions with potentially outraged entities and understand their rights. 2. Secure Legal Privilege Early Also known as attorney-client privilege, legal professional privilege in certain jurisdictions allows organizations to investigate cyber incidents and develop effective response measures without compromising confidentiality. Legal privilege enables candid discussions between organizations and their attorneys about control gaps, potential liability and mitigations without fear that these sensitive communications will be discoverable in subsequent litigations. A cautionary tale emerged from the Optus 2023 data breach ruling, when Australian Federal Court struck down Optus's "claim of legal professional privilege over an expert forensic investigation report prepared by Deloitte related to a 2022 cyber-attack suffered by Optus"—the Federal Court found that that "the report did not meet the necessary 'dominant purpose' criteria" for privilege and therefore couldn't be withheld. Management should appoint qualified legal counsel from the outset to ensure clear intent, well-documented scope and a demonstrable legal purpose, all of which lay the foundation for valid and defensible legal privilege. 3. Seek Legal Injunctions Against Threat Actors Hacked companies can also seek injunction orders—court rulings that prohibit the further use, disclosure or dissemination of stolen information. While legal injunctions may not restrain threat actors, they can, in certain jurisdictions, be enforced to prevent third parties that have been made aware of the injunction (such as media outlets or online platforms) from sharing compromised information, minimizing reputational impact and harm to clients. In a February 2024 ruling on HWL Ebsworth Lawyers v. Persons Unknown, the Supreme Court of New South Wales in Australia made a decision that "establishes that Australian courts may order injunctive relief to restrain unknown hackers and other third parties from dealing with stolen data." 4. Draft Holding Statements Attempting to craft high-stakes communications during a cyber crisis can lead to delayed communications, blame games, inconsistent messaging and legal blunders. To avoid this misstep, management must prepare pre-drafted statements to quickly acknowledge a given incident and reiterate the organization's commitment to minimizing impact. Here are four groups to consider addressing in statements: 1. Media: The company should underscore the urgency of the matter, its swift response and ongoing investigations to assess the scope and steps to contain the bleed. 2. Regulators: The company should be transparent with what it already knows and commit to actively collaborating with regulators and meeting reporting obligations. 3. High-Value Clients: The company should immediately acknowledge the incident, assure them of their priority status, provide immediate support measures and assign a specific executive as their primary point of contact. 4. Customers: The company should empathetically and sincerely acknowledge the security incident, be transparent about exposed data and explain immediate steps to secure systems. It should also highlight available support options (such as signing up for identity protection and credit monitoring). Additionally, the company should commit to providing frequent updates through easy-to-access channels and reassurance to close any loopholes and prevent recurrence. Media holding statements must be pre-approved by legal and senior management, with placeholder sections ready in order to facilitate prompt updates as new information emerges. 5. Make A Ransomware Payment Decision Matrix According to a 2025 report by cybersecurity firm Sophos, 49% of surveyed ransomware "victims paid the ransom to get their data back." Deciding to pay a ransomware demand during a crisis, however, often leads to boardroom squabbles and legal blunders. To avoid career-derailing mistakes, executives should create a board-approved ransomware decision matrix by asking these critical questions: • Can we recover key business operations and assure customer safety without paying a ransomware demand? Has the crisis management team carefully assessed whether the situation poses serious harm to customers? • Have we engaged suitably qualified lawyers to assess the legality of the payment, alignment with directors' duties, insurance clauses and applicable defenses? In short, is payment legally and ethically defensible given all obligations? • Have we engaged experts to negotiate with threat actors, verify the attacker's credibility and reduce the payable amount? • Has the threat actor been diligently screened against sanctions watchlists (e.g., OFAC, DFAT), and have money laundering risks been fully considered? If a decision is made to pay, management must present a concise brief to the board covering assessment of significant harm, expert advice, ransom payment logistics and why alternatives have been ruled out. When Hacked, Some Organizations Bounce Back More Easily Than Others Effective cyber crisis response strategies have many facets. In my experience, however, the above five strategies often explain why some organizations that are hacked are able to bounce back more easily than others. The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Scottish Sun
16 hours ago
- Business
- Scottish Sun
The death of the joint bank account – how under 35s are ditching them and how to manage money with your loved one
Scroll to see how you manage your finances in a coulple SHARING IS CARING The death of the joint bank account – how under 35s are ditching them and how to manage money with your loved one Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SETTING up home with a loved one is exciting but as well as picking out a new sofa, you'll need to manage bills and a household budget together. Young couples are turning their back on shared bank accounts and instead finding new ways to divvy up joint costs. Sign up for Scottish Sun newsletter Sign up 1 Sharing finances comes with moving in with a partner Credit: Getty In the past, couples often set up a shared bank account which can then be used to pay for any joint expenses from food shopping to council tax. Both will have a debit card for the account and can pay in as well as withdraw cash. But over the last six years, the proportion of joint current accounts held by under-35s has steadily dropped from 18% to 14%, while the number of joint accounts grew overall from 12.4million to 13.9million, according to exclusive figures from credit agency Experian for The Sun. Joint bank accounts can be a convenient way to pay household bills, but they also financially link both partners in the eyes of lenders – meaning one person's bad money habits can damage the other's chances of getting credit. The other downside are potential issues over control. Dr Nisha Prakash, a lecturer in financial management from the University of East London, says: 'The younger generation values financial independence and autonomy. 'Typically, a joint account holder can withdraw the entire amount from a joint account without the other person's consent." Here's how you can fairly share household finances without a shared bank account. Make a budget Communication is key - talk about how much each person has to contribute towards bills and other expenses. Draw up a rough budget of how much total costs are expected to come in at each month. You will need to think about whether to include food shopping and other items in the costs. Consider if you are going to split bills equally or whether one person earning more is going to pay a higher proportion of costs. For example, if one person is earning 70% of the combined household income, decide whether they also cover 70% of costs. It's a good idea to agree these things at the outset to avoid disagreements. Divvy up bills One way of managing budgets is to share out the responsibility of bills between you. Vicky Reynal, author of Money on Your Mind: the Psychology behind your Financial Habits, says: 'With more dual-income households, couples are finding ways to coordinate finances as equals in ways that do not necessarily require a joint account. "For example, one pays the internet and the other the electricity.' This way you could take ownership of the service. For example, making sure you're on the best tariff as well as being the one to sort out any provider issues that may arise. You can try to split so that you'd both pay a similar amount each month in respective bills or have one transfer cash where there is a shortfall. Split fairly Apps such as Splitwise allow you to keep track of shared expenses. Each person can add an expense. For example a food shop or a bill they have paid. The app then keeps a running total and works out who owes what. You could do that at the start or end of each month, week or even daily depending on what suits your circumstances. Decide on savings goals Consider whether you want to set up a pot for savings for joint events such as holidays or Christmas. You should also consider getting an emergency fund together to cover joint and unexpected costs such as a broken boiler. This should be three to six months of your total outgoings, then it can act as a financial buffer in case either of you are suddenly out of a job. You can create 'jars' to save and spend from together through app-based savings provider HyperJar. It's easier to set up and not as formal as a joint bank account. You can also set up a joint savings account through most financial providers, and means you don't have to link all your income and outgoings to the account. Just look for the best interest rate so that your money works as hard as possible. If you have a one year savings goal, Cahoot Simple Saver pays 4.55% for a year and can be opened as a joint account. And remember to do with someone you trust, as one person can usually withdraw the entire amount. Joint account If you do decide to get a joint account together, make sure you pick the right bank and account type. Look for low fees, a high interest rate on cash kept in the account and easy access via an app and online. Remember to find out if both account holders are equally responsible for any overdraft. A three-account system can work well for couples. This is a joint account for shared expenses while each person keeps their own personal account. It's a good idea to review account statements together and use alerts so both parties know when the money leaves the account or when it gets credited. Remember that either party can withdraw the amount without consent, unless you specifically request dual approval.
Yahoo
a day ago
- Automotive
- Yahoo
Why more Americans are leasing EVs in 2025
Why more Americans are leasing EVs in 2025 Leasing has taken the lead in how Americans are choosing to drive electric. According to Experian's Q4 2024 State of the Automotive Finance Market Report, more than half of new electric vehicle transactions in early 2024 were leases, a big shift from past years, when most buyers either paid in cash or financed their vehicles with traditional loans. So what's behind this trend? The General digs into the key drivers: tax incentives, upfront cost differences, and policy uncertainty. These factors are reshaping how consumers approach EV ownership and could continue to do so well into 2025. Rethinking ownership: How EVs are shifting the car financing equation For decades, most Americans bought cars the traditional way—through loans. This offered long-term value: Drivers built equity, avoided mileage caps, and eventually owned the car outright. It was ideal for those planning to keep a vehicle for years. Leasing offered lower payments and newer models but came with trade-offs: mileage limits, wear-and-tear fees, and no ownership. It rarely made sense for long-term use. Electric vehicles are flipping that script. With fast-evolving tech and uncertain battery repair costs, owning an EV long-term feels riskier. Leasing offers a flexible way to try EVs, especially now that tax credits and lease-specific perks make it more appealing. The electric vehicle market transformation: Why leasing is surging Electric vehicles have surged in popularity. In Q3 2024, Experian reports EVs made up 10.06% of all new vehicle financing, marking a 30% year-over-year jump. As EV options grow and charging infrastructure expands, more buyers are choosing electric, but they're also rethinking how they pay. For years, most new EVs were bought outright or financed with loans. That changed in 2024. For the first time, leasing surpassed loans, with 46.6% of EVs leased versus 36.8% financed. By early 2025, leasing hit 50.1%, while loans lagged at 38.9%. The shift toward leasing is apparent in the chart. From 2019 to 2022, loan financing ruled. Leasing fell to a low of 14.1% in 2022, but then it surged more than 36 percentage points in just two years. Loan usage, on the other hand, peaked at 62.8% in 2022 before falling sharply. Cash and unknown purchase methods held steady, bouncing between 16% and 27%. Switch Auto Insurance and Save Today! The Insurance Savings You Expect Affordable Auto Insurance, Customized for You Great Rates and Award-Winning Service This reversal highlights a bigger trend. As battery costs, resale uncertainty, and fast-changing tech raise questions about long-term EV ownership, more Americans are choosing the flexibility and lower upfront costs of leasing. Tax credits sweeten the deal even further, making leasing not just an alternative, but the preferred way to go electric. Financial benefits fueling the EV leasing boom Leasing is gaining ground not just because it's flexible, but because it saves people money. From lower monthly payments to reduced risk and maintenance costs, leasing offers a cost-effective way to enter the EV market without the financial weight of ownership. Lower monthly payments The monthly cost gap between leasing and financing is wide and growing. In Q3 2024, Experian reported the average EV lease payment was $198 less per month than the average EV loan. For nonluxury EVs, that difference jumped to $205 in Q4 2024, with average lease payments at $504 versus $709 for loans. In a high-interest-rate market, that kind of monthly relief matters. Less risk, lower upfront cost EVs still come with a higher price tag. The average EV in 2024 cost $56,328, nearly $8,000 more than the average price of all vehicles. Leasing reduces the sting; it often requires a smaller down payment, skips the risk of long-term depreciation, and gives drivers the option to walk away at the end of the term if prices or technology shift. Reduced maintenance costs EV maintenance is cheaper than gas-powered vehicles, and lessees benefit the most. Consumer Reports found that EVs cost about half as much to service, averaging just $0.031 per mile versus $0.061. The National Automotive Dealers Association estimates $300 in savings over five years, even for drivers who don't keep the vehicle long-term. Overall, leasing offers a cheaper, lower-risk entry into EVs; it is ideal for first-time or cost-conscious drivers. The tax credit advantage: How leasing unlocks EV incentives Tax incentives have always played a big role in driving EV adoption, but in 2024, whether you leased or bought can determine whether you actually get those savings. For many drivers, leasing is the key to unlocking benefits that might otherwise be out of reach. Fewer EVs qualify for the full credit when purchased Strict eligibility rules under the Inflation Reduction Act have narrowed the list of vehicles that qualify for the $7,500 federal tax credit. As of mid-2024, only 15 EVs make the cut. Battery sourcing, final assembly, and vehicle price all factor in, leaving many popular models excluded from the incentive. Leasing loophole widens access Leasing gets around these restrictions. Because leased EVs are classified as 'commercial vehicles' under federal rules, they qualify for the full $7,500 credit regardless of battery origin or where the car was assembled. This loophole reopens eligibility for high-demand and imported models that wouldn't qualify if purchased outright. Dealers pass savings to consumers The dealership claims the credit and often passes some or all of that value to the customer. Dealers often apply these savings as reduced lease payments, lower down payments, or added incentives, boosting affordability without the buyer ever filing a tax form. State and local incentives sweeten the deal On top of federal perks, many states offer their own EV incentives; like rebates, tax exemptions, or utility bill credits. Kelley Blue Book highlights that these programs can knock thousands more off the cost, especially when combined with federal leasing benefits. For buyers who want access to incentives but don't meet purchase requirements, leasing offers a smarter — and often more rewarding — path to going electric. Why leasing is winning in today's EV market Tax credits may be boosting EV leases, but they're not the only driver. Broader market forces — from high prices to tech turnover — are nudging more consumers toward leasing. In an uncertain economy, the flexibility of a lease feels less risky than long-term ownership. EV sticker shock and limited supply EVs cost more than gas models, and supply chain issues have kept inventory tight. To stay competitive, automakers use lease offers to ease the upfront burden, without requiring a long-term financial commitment. Tariffs threaten more price hikes Vehicle costs could climb further. Tariffs on imported autos could add 4%-7% to vehicle prices, roughly $2,000 to $3,500 more per car. Added steel and aluminum tariffs may also push production costs even higher. With these unknowns on the horizon, leasing helps buyers avoid being locked into a depreciating asset that's getting more expensive to build. Fast-changing tech and resale risks EV tech evolves fast. Better batteries and software roll out constantly, making it risky to commit long-term. Leasing also lets consumers upgrade regularly without stressing over resale value. With prices rising and tech changing fast, leasing gives drivers financial flexibility and a way to keep up without getting stuck. Consumer trends and the rise of EV leasing Leasing's growth isn't just a response to financial incentives or supply chain issues; it's about how buyers want to experience EVs. They're choosing leases to try new tech, stick with trusted brands, and keep their options open in a fast-changing market. Top leased EVs Experian data shows a clear pattern: Consumers lean into familiar brands and models when leasing. The Tesla Model 3 is the top leased EV, making up 12.2% of EV leases, followed by the Tesla Model Y at 9.3%, and the new Honda Prologue at 8.84%. These cars are ideal for drivers who want the EV experience without a full commitment, offering a strong mix of performance, price, and prestige. Financing still in the mix Leasing may be trending up, but it's not the only option. Credit unions and nontraditional lenders are stepping up to attract EV buyers with competitive loan rates, especially as big banks pull back or raise interest rates. These institutions are trying to undercut leasing deals with flexible loan packages, pushing financing back into the spotlight for well-qualified borrowers. Leasing as a trial run Most importantly, consumers see leasing as a way to ease into EVs. Battery performance, resale value, and charging availability still raise concerns. Leasing a car for three years gives drivers time to test the tech, understand range and maintenance needs, and evaluate lifestyle fit without worrying about long-term depreciation or being stuck with outdated hardware. Buyers aren't just following the money; they're making calculated decisions in a space that's still evolving. Leasing gives them room to adjust, upgrade, or walk away. What's next for EV leasing? Policy, pricing, and the shifting market Leasing has fueled the EV boom, but its future depends on decisions far beyond the dealership. As policymakers weigh changes and the used EV market gains steam, the next phase of growth might look very different. Federal tax credits face uncertainty The leasing boom stems largely from a loophole: Leased EVs count as commercial vehicles and qualify for the full $7,500 tax credit. But if Congress tightens the rules, demand could drop fast. The EV market reacts quickly to policy shifts, and 2025 may bring change. Dealers and automakers adjust To sustain demand, automakers stack federal, state, and local incentives. States like Kansas show how these deals slash monthly lease costs and keep EVs accessible despite high sticker prices. Used EVs could shake things up Early leases are ending, flooding the market with used EVs. This could lower new car prices and give buyers a cheaper alternative to leasing, especially as battery tech improves and resale values stabilize. Leasing may stay relevant, but its dominance isn't guaranteed. What comes next — be it more used sales, better loans, or new incentives — will define the next EV phase. Should you lease your next EV? What to know before deciding Leasing makes it easier to dip a toe into the EV world, but it's not the right move for everyone. Understanding how leasing fits your budget, driving habits, and long-term goals can save money and hassle down the road. Who benefits most from leasing? Leasing an EV tends to work well for people who: Want lower monthly payments. Drive fewer than 15,000 miles per year. Prefer new tech and updated models every few years. Don't want to deal with battery repairs, depreciation, or resale. High-income drivers, urban commuters, and those with consistent driving routines often get the most value from leasing, especially when dealers pass through the federal tax credit. Questions to ask before you sign Before locking into a lease, it's smart to ask: Does the lease reflect the $7,500 federal tax credit in the pricing? What's the mileage limit, and what are the penalties for going over? What's the car's residual value, and are early termination fees reasonable? How does the total cost compare to a loan over the same period? Use a cost comparison calculator that includes fees, down payments, and interest, not just monthly payments. Choosing what fits your needs Leasing offers predictability, convenience, and tech upgrades, but limits flexibility. Buying gives you ownership, customization, and long-term value, but requires more upfront commitment. There's no universal answer. The best choice depends on your lifestyle and how you want to experience your EV. The road ahead for EV leasing and ownership Leasing EVs has gone from fringe to mainstream, driven by high prices, tax breaks, and the appeal of trying before buying. Leases now outpace loans for new EVs, marking a clear shift in consumer behavior. This trend is reshaping more than sales. Automakers are rethinking inventory, dealers are adjusting incentives, and policymakers are weighing credit changes. Buyers have more options and more decisions. Whether you lease or finance, choose what fits your needs. Think about how you drive, what you can afford, and how long you'll keep the car. The EV market is moving fast; make a choice that fits now and flexes for later. This story was produced by The General and reviewed and distributed by Stacker. 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
3 days ago
- Yahoo
5 Biggest Financial Challenges Each Generation Faces When Planning Group Vacations
Traveling with friends, regardless of age, can be an unforgettable experience. Whether you're a millennial heading with your besties to an exotic paradise or a retiree returning to the lake house you've visited for years with fellow empty nesters, going with a group can make the trip even more memorable. While there are plenty of perks to traveling with friends, there can also be pitfalls. Read More: Find Out: According to a recent survey by Experian, vacationing with peers can lead to conflict, whether due to mismatched spending habits or unexpected expenses. Here are the five biggest challenges each generation faces when planning group vacations. Unexpected Costs For every generation, the top financial stress point when planning group travel was unexpected costs during the trip. Millennials were most concerned, with 58% saying it was an issue. Gen Z followed closely at 55%, while baby boomers were the least anxious, with only 40% citing it as a stressor. A separate survey by McKinsey found that only 17% of respondents used a travel agent in the past year. That means most travelers plan trips themselves, and while many enjoy the process, it can also lead to more surprises along the way. Discover Next: Different Spending Habits Nearly every generation has also been concerned about different spending habits among friend groups. Hopeful travelers worried about whether their budget would be too low or too high compared to their peers. Over half of those surveyed in younger generations, primarily Gen Zers and millennials, admitted to having had a financial disagreement with friends they were traveling with. More troubling, one in five said they had ended a friendship over a money-related dispute. Splitting Costs Fairly Along with different spending habits, people traveling with friends often worry about splitting costs fairly, particularly when vacationing with peers who have different spending priorities. According to the Experian survey, 48% of millennials and 43% of Gen Xers were concerned with splitting costs fairly. Again, Baby boomers were the least anxious about splitting costs, with only 39% listing it as a financial stress point. Spending Peer Pressure Many people reported feeling pressured to spend more than planned when traveling with a group. Gen Z and millennials were the most likely to exceed their budget by 50% or more, while just 1% of Gen Xers and baby boomers said they had more than doubled their planned spending. Baby boomers were also the most likely not to set a budget at all, with 17% saying they never establish one. Not Being Able To Discuss Money Openly Conversations about money can be uncomfortable, even with close friends and family. Millennials were the most concerned about openly discussing finances while traveling with friends — 21% said it was a challenge they had faced. Gen Xers were less worried, with only 15% citing awkward money talks as a concern. More From GOBankingRates 5 Ways Trump Signing the GENIUS Act Could Impact Retirees9 Downsizing Tips for the Middle Class To Save on Monthly Expenses This article originally appeared on 5 Biggest Financial Challenges Each Generation Faces When Planning Group Vacations Solve the daily Crossword
Yahoo
4 days ago
- Business
- Yahoo
Jaspreet Singh: Don't Do These 5 Dumb Things With Your Money
The Charles Schwab 2025 Modern Wealth Survey found that 27% of Americans didn't think they could become financially comfortable within their lifetimes, while another 25% felt it was only possible with some changes. Read Next: Learn More: If you're wondering why you're not in a good financial situation, it might not simply be your income or too many impulse purchases. In a recent video, attorney and finance expert Jaspreet Singh explained five less obvious money mistakes you might be making and provided tips to make wiser choices. Lacking Priority for Your Money Singh said that some people are focusing on the wrong things given their financial situation. He used the stages of crawling, walking and running to illustrate changing money priorities. If you owe high-interest debt, you would fall into the crawling category, and your focus should be on paying off the debt that's costing you money rather than investing. Singh explained that your credit card rate might be from 15% to 28%, which is far higher than the 10% average return on stocks. After that debt is gone, you'd enter the walking stage, where you need to have a $2,000 emergency fund for your financial security. You can then move on to the running stage and start investing in assets that help you build wealth. Another YouTube video from Singh included recommendations like dividend stocks, real estate and exchange-traded funds. Check Out: Thinking Your Credit Score Means Wealth As of March 2025, Experian reported that 23% of Americans had at least an 800 FICO score, which put them in the top 'excellent' category. While many people strive for this score, Singh explained that it doesn't make you rich or reflect your assets, education or career success. 'Here's the reality: Your credit score really does not matter,' Singh said. 'All it is is an indication of how good you are in paying your bills, and it doesn't even do the best job at that.' He did note that good credit can make it easier to get loans, buy a house or score a better interest rate, but the associated debt can also make it harder to build wealth. That's especially true when you're financing things that depreciate, like cars. Living Fake Rich Singh said many people buy things that will continually cost them money rather than help them build wealth. For example, you might have a high salary and buy an expensive home to show off. But even if that house appreciates and you pay off the loan, you'll still have to cover ongoing costs for property taxes, insurance, utilities, maintenance and more. To avoid falling into this trap, carefully consider affordability for your home purchase and follow Singh's suggested 75-15-10 rule for your income. The 75% represents your maximum spending rate for all expenses, while you'd invest at least 15% and save 10% of your earnings. Singh also advised against seeing your house as an investment and explained that more of your payments will go toward interest than principal payoff for many years. He recommended looking into additional assets, like businesses and rental properties, that can grow your wealth. Not Investing in Yourself Singh said a common mistake is not using any of the money you have to invest in yourself, which can cause you to lose time or miss the chance to make more money. One option is to hire people to do certain tasks, like driving you to work, mowing your lawn or cleaning your house. Even if you gain only a few extra hours, outsourcing these tasks might be what allows you to start a side hustle or simply enjoy time with your family. Another is investing in books, classes and other forms of education, which Singh said might significantly pay off if you can boost your earnings. He added that a growth versus scarcity mindset is important for this decision. 'You have to be willing to actually spend that money and know when it's okay to let go of that money if it's going to bring you more value in return,' Singh explained. Plus, you can invest in yourself by spending money on actual investments. Singh said some people keep their money in bank accounts out of fear of the risks of investing, but they lose given the low return, income taxes due and inflation. He recommended having a long-term mindset for investing and carefully researching your options, such as index funds. Warren Buffett is also a proponent of investing in low-cost index funds and holding on to them, which he said makes the most sense when investing, CNBC reported. Investing Like You're in Vegas Impatience with investing can also get people in trouble. For example, new investors may turn to riskier picks like crypto and options in hopes of a fast return rather than invest in more traditional assets over a few decades. Singh explained that this mistake can lead to losing everything. 'So, you got to decide: Do you want to have that rush and excitement and never build wealth, or do you want to have the long-term sustainable wealth, not have the rush and the excitement, but actually have the potential to build real wealth with much less risk?' he said. If you've made this mistake, Singh suggested trying the safer route. Being consistent and patient with investing is the key. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 The 5 Car Brands Named the Least Reliable of 2025 Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on Jaspreet Singh: Don't Do These 5 Dumb Things With Your Money
