Author: Jing Pan

Virtually every investor has heard of the firm Nvidia (NVDA) — a technology company that started by designing powerful graphics processing units (GPUs) before becoming a leader in AI hardware and software. However, the story of Nvidia’s founder and CEO, Jensen Huang, is not as well known but just as compelling.

Huang came from humble beginnings, working as a dishwasher at Denny’s, where he often had to clean the toilets.

Today, his company boasts a market capitalization of US$3.29 trillion, and, at the beginning of 2025, Huang ranked as the 15th richest person in the world with a net worth of US$115 billion, according to the Bloomberg Billionaires Index.

Rise and fall of Nvidia (NVDA)

As a leader in AI, Nvidia benefitted greatly when ChatGPT debuted in late 2022. It was a pivotal moment in the tech-sector with AI, capturing the world’s attention. Nvidia, a key player in powering AI advancements, quickly became a market darling as investors flocked to AI-driven opportunities.

By 2023, Nvidia (NVDA) shares skyrocketed by 239% — momentum that continued into 2024, with the stock valuation increasing another 171.25%, year-to-date. This meteoric rise reflects the market’s insatiable appetite for AI technology and Nvidia’s pivotal role in its development.

However, the stock’s trajectory has not been without fluctuations. Nvidia reached an all-time high of US$149.42 on January 6, 2025, but has since retraced some of its gains.

Rise and fall of Huang’s Nvidia (NVDA) fortune

Huang’s wealth is largely tied to his holdings in Nvidia shares. According to a March 2024 filing cited by Bloomberg, Huang owns more than 3.5% of the company. That means as Nvidia’s share price fluctuates, so does Huang’s fortune. At the end of 2022, Huang’s net worth hovered around US$13.8 billion. By the close of 2023, his wealth had surged to US$44.0 billion, marking a staggering 219% increase in just one year.

As the upward trajectory of Nvidia shares continued into 2024, Huang’s fortune received a further boost. On June 18, 2024, Huang’s net worth reached an all-time high of US$119 billion, coinciding with Nvidia shares hitting their peak.

Since the peak share price, last year, Nvidia’s stock price has fallen. As a result, Huang’s net worth has declined — sometimes at a remarkable rate. For instance, in September 2024, Huang’s net worth fell to US$95 billion, reflecting a loss of approximately US$24 billion in just two months. While his networth has rebounded since then — back iup to US$115 billion, these fluctuations highlight how investors should be mindful of the volatility of the tech sector and the need to diversify in order to safeguard their finances against economic headwinds.

Diversification strategies

For tech magnates like Huang, their wealth is often intrinsically linked to the companies they helped create. For the average investor diversifying their portfolio can help mitigate risks and protect their assets from the wild swings of a single stock.

Keep mind what the investing Warren Buffett once said, “I do not think the average person can pick stocks.” To combat this disadvantage, Buffett suggests investing in low-cost index funds, particularly those that track the S&P 500 Index.

(Buffett is so bullish on this strategy that he’s even revealed that after he dies, 90% of his wife’s inheritance will go into “a very low-cost S&P 500 index fund.”)

By investing in an S&P 500 index fund, an investor gains exposure to a broad range of large-cap companies, providing diversified holdings across various sectors of the economy. This means that if one stock tumbles, the impact on the overall portfolio will be limited.

There are quite a few options available, including exchange traded funds (ETFs) such as the Vanguard S&P 500 ETF (VOO) and the iShares Core S&P 500 ETF (IVV). Investors can also consider sector-specific ETFs for targeted exposure to particular sectors.

Additionally, it’s important to remember that diversification isn’t limited to stocks. You can also spread investments across other asset classes like bonds, real estate and commodities.

Given that each individual has unique investment goals and risk tolerance, it might be beneficial to consult with a financial professional to help tailor your investment approach to your specific circumstances and goals.

Sources

1. Bloomberg: Bloomberg Billionaires Index

2. Finance Charts: NVDA Stock

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

When it comes to collisions, not all vehicles are created equal.

A new report from Insurify reveals the top car models with the highest accident rates in the U.S.

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Topping the list is the Kia Soul EV, with an accident rate of 15.14% in 2024.

Coming in next are the Mazda Mazdaspeed 3 (12.57%), Chevrolet Bolt EUV (11.75%), Jeep Wrangler Unlimited (11.74%) and Volkswagen ID.4 (11.68%).

Rounding out the top 10 are the Jeep Wrangler/YJ (11.64%), Hyundai Ioniq Hybrid (11.44%), Chevrolet Bolt EV (11.40%), RAM 2500 (11.21%) and Chrysler Voyager (11.21%).

At first glance, it might be tempting to conclude that certain manufacturers produce more accident-prone vehicles. After all, four of the top 10 models — two Jeeps, one RAM and one Chrysler — are made by Stellantis North America (formerly Chrysler).

But that pattern doesn’t tell the whole story.

Another Stellantis brand, Dodge, had the second-lowest average accident rate among all manufacturers in 2024, at just 6.82% — suggesting that brand alone isn’t a clear predictor of crash risk.

Why some cars get into more accidents than others

The Insurify report doesn’t offer specific reasons why certain vehicles have higher accident rates, but there are several well-known factors that could contribute.

For example, the type of vehicle matters. According to National Highway Traffic Safety Administration data cited in the report, light trucks — a category that includes vans, SUVs and pickups — accounted for 43.2% of crashes in 2022, while passenger cars were involved in 38.1%.

Other contributing factors could include vehicle design and size, the presence of modern safety features and driver demographics and habits.

Some newer vehicles come equipped with advanced safety systems — like automatic emergency braking and lane departure warning — which can help avoid collisions. But at the same time, the abundance of high-tech features, such as large infotainment screens, might also increase distraction behind the wheel.

Electric vehicles (EVs) made a strong showing near the top of the accident-rate rankings. In addition to the Kia Soul EV, both the Chevrolet Bolt EUV and Bolt EV, as well as the Volkswagen ID.4, made the top 10.

Marcus Lu at Visual Capitalist suggests one possible explanation: instant torque.

“A likely reason for [the high number of EVs on the accident-prone list] could be the way electric motors deliver instant torque, which may surprise drivers who are used to the more gradual power curve of gasoline engines,” he wrote in an analysis of Insurify’s report.

Lu also cited a 2024 study from the University of Limerick showing that EVs are 4% more likely to be involved in an at-fault insurance claim compared to internal combustion engine vehicles.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Why accident data matters for your insurance rate

Cars with higher accident rates often cost more to insure — not necessarily because the car itself is more dangerous, but because insurers look at risk data when setting premiums.

But the make and model are just part of the equation. Your location, age and driving history all factor into your car insurance cost.

According to Insurify, Massachusetts had the highest accident rate of any U.S. state in 2024, at 6.07%, while Michigan had the lowest, at 1.68%.

Age also plays a major role. Generation Z drivers had the highest accident rate in 2024, at 6.84%, while baby boomers had the lowest, at 3.12% — which helps explain why younger drivers face steeper insurance premiums.

How to lower your insurance bill

Car insurance rates have been on the rise, and many people overpay without realizing it. According to Forbes, the average cost of full-coverage car insurance is $2,149 per year (or $179 per month).

However, rates vary widely based on a range of factors — including many mentioned above — and you could be paying more than necessary.

By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.

In just two minutes, you could find rates as low as $29 per month.

And it’s not just your car that might be costing you more than it should. Home insurance is another major expense where smart shoppers can save big.

With OfficialHomeInsurance, comparing home insurance rates is fast and hassle-free. Just enter a few basic details and the platform will instantly sort through over 200 insurers to find you the best deals available in your area.

You’ll be able to review all your offers in one place, and quickly find the coverage you need for the lowest possible cost, saving an average of $482 a year.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

In a stunning reversal of policy, President Donald Trump slashed “Liberation day” tariffs on China from 145% to 30% for 90 days as of May 14.

The landmark agreement between the world’s two largest economies has gained traction — erasing the stock market’s losses in the wake of “Liberation day” tariffs in early April.

While negotiations are still ongoing, U.S. Treasury Secretary Scott Bessent said that the goal is to drive strategic decoupling between the two superpowers.

“We do not want a generalized decoupling from China,” Bessent said during an interview with CNBC.

“But what we do want is a decoupling for strategic necessities, which we were unable to obtain during Covid and we realized that efficient supply chains were not resilient supply chains.”

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However, industry-specific tariffs remain in place. This is part of Trump’s greater push to revive the country’s manufacturing sector.

“We are going to create our own steel. [Tariffs] protect our steel industry. They work on critical medicines, on semiconductors,” Bessent said “We are doing that, and the reciprocal tariffs have nothing to do with the specific-industry tariffs.”

But affordability remains one of the biggest concerns for Americans. The average tariff rate on imports stands at 17.8% — the highest since 1934. This is expected to cost median households in the U.S. approximately $2,800, according to a recent Yale Budget Lab report.

However, Bessent argues that affordability isn’t just about cheap imports — it’s about ensuring Americans can build real financial security.

“What I’m saying is the American dream is not ‘let them eat flat screens,’” Bessent noted during an appearance on NBC’s Meet the Press.

“If American families aren’t able to afford a home, don’t believe that their children will do better than they are [doing], the American dream is not contingent on cheap baubles from China, it is more than that. And we are focused on affordability, but it’s mortgages, it’s cars, it’s real wage gains.”

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Housing affordability remains a pressing issue

Bessent’s remarks highlight one of the most pressing financial issues for Americans today: the soaring cost of homeownership.

Over the last decade, U.S. home prices have surged, with the S&P CoreLogic Case-Shiller U.S. National Home Price Index nearly doubling. Federal Reserve Chair Jerome Powell has acknowledged the severity of the problem, pointing to supply constraints as a key driver.

“The real issue with housing is that we have had, and are on track to continue to have, not enough housing,” Powell said at a press conference in September. He explained that “all aspects of housing” face challenges, including the zoning of land in desirable locations.

“Where are we going to get the supply?” he asked.

The gap between supply and demand is significant. An analysis by Zillow in June estimated the U.S. housing shortage at 4.5 million homes as of 2022.

There’s also the issue of high mortgage rates, which stand at around 6.67%, meaning borrowing money to buy a home remains expensive.

If you’re in the market for a home, Freddie Mac recommends shopping around by obtaining quotes from three to five lenders to secure the best mortgage rate possible. Even a small rate reduction can translate into significant savings over the life of a loan.

To make this process easier, platforms like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders. By entering basic details — such as your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.

Rising cost of car ownership

Bessent also pointed to cars as part of America’s affordability issue. Even though pandemic-induced supply chain disruptions and chip shortages have eased, the cost of owning a car remains high.

According to the American Automobile Association (AAA), the total cost of owning and operating a new vehicle in 2024 has climbed to around $12,297 per year — or $1,024.71 per month.

One major recurring expense is car insurance, and many people overpay without realizing it. According to Forbes, the national average cost for full-coverage car insurance in 2024 was $2,149 per year (or $179 per month). However, rates can vary widely depending on your state, driving history and vehicle type.

By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to ensure you’re getting the best deal.

In just two minutes, you could find rates as low as $29 per month.

Find additional sources of capital

With home values higher than ever, you can make your home work harder for you by making the most of your equity. The average homeowner sits on roughly $311,000 in equity as of the third quarter of 2024, according to CoreLogic.

Having access to your home equity could help to cover unexpected expenses, pay substantial debt, fund a major purchase like a home renovation or supplement income from your retirement nest egg.

Rates on HELOCs and home equity loans are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.

Unlock great low rates in minutes by shopping around. You can compare real loan rates offered by different lenders side-by-side through LendingTree.

Just answer a few simple questions, and LendingTree will match you with up to 5 lenders ¹ with low rates today.

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Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

Paul Krugman isn’t one to mince words. The Nobel Prize-winning economist says President Donald Trump’s policies are doing serious damage to the U.S. economy — calling them “crippling” in some cases and a direct threat to what once made America exceptional.

In an interview with Bloomberg Talks on April 8, Krugman blasted the Trump administration’s sweeping layoffs at federal health agencies.

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“The CDC is laying off medical scientists so fast that samples are being left in research with nobody to look after them,” he said. “And since ultimately U.S. technological progress relies a lot on the spillovers from government research, we’re actually crippling — [making] America not great again.”

Krugman also criticized Trump’s constantly shifting tariffs, arguing that they’ve created a climate of deep uncertainty — and that alone is enough to hurt the economy.

“[We’ve] never had a situation where you have no idea where the average tariff rate is going to be a few months from now,” Krugman said. “This creates an impossible environment for business. It’s hard to imagine a worse trade policy than what we’re getting.”

Echoing other economists, Krugman believes that tariffs could drive up inflation and drag down growth — but given the unpredictability of Trump’s policy changes, he says the short-term impact could be even worse.

“We may very well now think better than even odds that we are going to have a recession this year,” he warned.

While Trump insists that “tariffs are about making America rich again and making America great again,” Krugman argues his implementation of them is having the opposite effect.

“If you wanted to kill U.S. exceptionalism, this is kind of what you would do,” he said.

The U.S. hasn’t entered a recession, but with markets reacting to trade policy shifts, investors may want to prepare. If you’re concerned about what’s next, here are three easy ways to protect your nest egg now.

Consider this ‘very effective diversifier’ for tough times

While stocks have fluctuated in the wake of sweeping tariffs, one asset has emerged as a bright spot: gold.

Often seen as the ultimate safe haven, gold isn’t tied to any one country, currency or economy. It can’t be printed out of thin air like fiat money, and in times of economic turmoil or geopolitical uncertainty, investors tend to pile in — driving up its value.

Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, recently highlighted gold’s role in a resilient portfolio.

“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC in February. “When bad times come, gold is a very effective diversifier.”

Over the past 12 months, gold prices have surged by around 35%.

Those looking to incorporate precious metals into their retirement strategy can benefit from modern investment solutions, like those offered by companies like American Hartford Gold.

American Hartford Gold is a leading precious metals dealer – allowing you to invest directly in gold or silver.

With secure storage, expert guidance, and customizable investment plans, American Hartford Gold helps investors diversify their portfolios while protecting against inflation. Gold IRAs provide a tangible safeguard for retirement savings, combining financial security with significant tax advantages, making them an appealing choice for long-term wealth preservation.

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Collect passive income — even when markets fall

Like stocks, real estate has its cycles, but it doesn’t rely on a booming market to generate returns.

Even during a recession, high-quality, essential real estate can continue to produce passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.

It’s also a time-tested hedge against inflation. As the cost of materials, labor and land rises, property values often increase as well. At the same time, rental income tends to climb, giving landlords a revenue stream that adjusts with inflation.

That said, owning a rental property isn’t exactly as passive as it sounds. Between finding tenants, collecting rent, covering repairs and saving for a down payment, being a landlord takes time — and money.

The good news? These days, you don’t need to buy a property outright to benefit from real estate investing.

For accredited investors, Homeshares gives access to the $36 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.

Talk to an expert

When markets turn volatile and uncertainty looms, it can be difficult to know what moves to make — or whether to make any at all. That’s where a trusted financial advisor can make a big difference.

A good advisor doesn’t just help you pick stocks. They take the time to understand your unique goals, time horizon and risk tolerance — then help you build a diversified portfolio that fits your life, not just the market cycle.

With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.

Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.

All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan, and stick to it.

Once you’re set, you can sit back as Vanguard’s advisors manage your portfolio. Because they’re fiduciaries, they don’t earn commissions, so you can trust that the advice you’re getting is unbiased.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

To combat America’s declining birth rate, the Trump administration is reportedly considering a $5,000 “baby bonus” for new mothers.

According to The New York Times, a chorus of proposals have been floated at the White House to encourage Americans to get married and have more children. One idea gaining attention: a $5,000 cash bonus for every new mother after delivery.

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

When asked Tuesday at the White House whether his administration was considering such a bonus, Trump didn’t hesitate. “Sounds like a good idea to me,” told reporters.

America’s total fertility rate (TFR) has been declining for decades. In 1960, it stood at 3.65 births per woman. By 1990, it had fallen to about 2.1 — roughly the replacement level needed for a population to replace itself from one generation to the next — and by 2023, it had dropped further to just 1.62, according to a March 2025 report from the CDC.

But while $5,000 is nothing to sneeze at, some experts and parents say it’s unlikely to move the needle — especially given the soaring cost of raising a child in America today.

According to SmartAsset, the median annual cost for two working parents to raise one child in the U.S. is $22,850.

And although Trump appears to like the idea of a $5,000 baby bonus, there’s no guarantee it will move forward. A White House official told CBS MoneyWatch that no final decision has been made.

In the meantime, soaring living costs — from housing to groceries to healthcare — are putting pressure on Americans across the board, whether they have children or not. In an environment where every dollar counts, finding ways to build additional income streams can make a real difference.

Here’s a look at three simple ways to start earning passive income — sources of money that keep flowing with little day-to-day effort.

Real estate

Real estate is a popular way to generate recurring income. When you own a rental property and tenants pay rent, you earn a steady monthly cash flow.

It’s also a time-tested hedge against inflation, as property values and rental income tend to rise alongside the cost of living.

Of course, purchasing a property requires significant capital — and finding the right tenant takes time and effort. But thanks to new investment platforms like Arrived, you don’t need to own a property outright to gain exposure to real estate.

With Arrived, you can invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and start generating potential regular income — all while Arrived handles the responsibilities of property management.

Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Dividend stocks

Investing in dividend stocks — shares of companies that regularly distribute a portion of their profits to shareholders — is another time-tested way to generate passive income.

Dividends are payments made to investors, typically on a quarterly basis, providing a steady income stream without requiring the sale of shares. While stock prices fluctuate, companies with a strong dividend track record allow investors to earn consistent payouts, and some even increase their dividends over time, further boosting returns.

Of course, not all dividend stocks are created equal. For those looking to diversify easily, dividend-focused exchange-traded funds (ETFs) offer an attractive option. These funds pool together dozens or even hundreds of dividend-paying companies, reducing the risk tied to any single stock. Dividend ETFs can provide broad exposure across industries and often focus on companies with strong histories of paying — and growing — their dividends.

The beauty of ETF investing is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in a dividend ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

High yield savings accounts

High-yield savings accounts offer a low-risk way to generate passive income while keeping your funds accessible. These accounts typically offer much higher interest rates than traditional savings accounts, allowing your money to grow without needing to lock it away in long-term investments. This option is ideal for those who want a secure, liquid source of passive income with minimal effort or risk.

These days, some banks and financial institutions are offering high-yield savings accounts that pay up to 4.5%.

In the U.S., most savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank. This insurance provides protection to depositors in the event that the bank fails, ensuring that their funds are safe and accessible.

If you’re unsure which path to take amid today’s market uncertainty, it might be a good time to connect with a financial advisor through Advisor.com.

This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.

Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Two of the world’s richest men are clashing — again.

Microsoft co-founder Bill Gates recently called out Tesla CEO Elon Musk over spending cuts enacted by Musk’s Department of Government Efficiency (DOGE), specifically its decision to shut down the U.S. Agency for International Development (USAID).

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• Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

“The picture of the world’s richest man killing the world’s poorest children is not a pretty one,” Gates stated bluntly to the Financial Times.

Musk, whose net worth currently stands at $359 billion according to the Bloomberg Billionaires Index, is the world’s richest person. Gates, who once held that title, is now ranked fifth, with a net worth of $169 billion.

Gates argued that DOGE’s abrupt cuts have left life-saving food and medicine expiring in warehouses and could lead to a resurgence of diseases like measles, HIV and polio. He also criticized Musk for canceling grants to a hospital in Gaza Province, Mozambique, which helps prevent mother-to-child HIV transmission — a move Gates said was based on the mistaken belief that the U.S. was supplying condoms to Hamas in Gaza on the Mediterranean coast.

“I’d love for him to go in and meet the children that have now been infected with HIV because he cut that money,” Gates said.

He also announced plans to give away “virtually” all of his wealth over the next 20 years, pledging that his foundation will spend more than $200 billion on charitable causes during that time.

To be fair, Gates acknowledged in a CNN interview that Musk is a “genius” in some domains — but noted that global health “hasn’t been a focus.” According to Gates, the consequences of Musk’s actions are dire.

“If it was a modest cut and a challenge to be more efficient … I’m fine with that,” he said. “But 80%, that’s going to be millions of deaths, and it’s a mistake.”

Gates is especially alarmed about the impact on children, warning that without strong government support, child mortality rates could climb significantly.

"So we should be going from five million children dying a year over the next five years to four million,” Gates told CBS Mornings. “And now with these cuts, if they’re not reversed, we will go to over six million dying. So, instead of going down, we will go back up."

His remarks came as UNICEF reported that an estimated 4.8 million children under the age of five died in 2023, according to data released in March. The report emphasized that these deaths “are not inevitable,” but rather the result of “unequal access to health care, nutrition, and protection, especially in the most fragile and underserved settings.” If Gates’s projection holds, the shift from four million to six million annual deaths would mean two million additional children dying each year — a reversal of decades of progress.

Gates also cast doubt on Musk’s goal of saving $2 trillion from the federal budget.

“I think if you show up and say, in two months, you can cut $2 trillion out of a $7 trillion budget, you’re not going to succeed,” he said.

As of May 11, DOGE claims total estimated savings of $170 billion, according to its website. However, a BBC analysis published on April 23 found that of the $160 billion in savings DOGE claimed just days earlier, only $61.5 billion had been itemized.

Meanwhile, Musk appears to be stepping back from his involvement with DOGE. During Tesla’s April earnings call, he told investors that starting in May, he would devote “far more” of his time to Tesla, while his time allocation to DOGE would drop significantly.

Some of Gates’s criticism has reached Musk. Responding to a video clip posted on X where Gates warned about rising child mortality due to the budget cuts, Musk fired back: “Gates is a huge liar.”

Musk has previously criticized Gates for taking a short position against Tesla — a trading strategy in which an investor bets a stock will fall by borrowing shares, selling them and repurchasing them later at a lower price. In a fiery post on X in 2023, Musk called out the “hypocrisy” of Gates for asking him to donate to what he described as “mostly window-dressing environmental causes,” while at the same time trying to profit from Tesla’s downfall.

“Taking out a short position against Tesla, as Gates did, results in the highest return only if a company goes bankrupt!” Musk wrote. “Gates placed a massive bet on Tesla dying when our company was at one of its weakest moments several years ago. Such a big short position also drives the stock down for everyday investors.”

Whichever side you’re on, the feud underscores a broader point: while cutting waste is important, doing so without understanding where the money goes — or what’s at stake — can have serious consequences.

Tracking where $7 trillion in government spending goes and deciding what truly counts as “waste” is a complex task. But when it comes to your own finances, spotting waste is a lot easier. Here are three simple ways to cut financial fat in 2025 — and beyond.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

1. Stop overpaying for car insurance

Car insurance is a major recurring expense, and many people overpay without realizing it. According to Forbes, the average cost of full-coverage car insurance is $2,149 per year, or about $179 per month.

But rates can vary widely depending on your state, driving history and vehicle type. You could be paying more than necessary.

Instead of sticking with the same provider, you can try taking a few minutes to compare quotes from multiple insurers to ensure you’re getting the best deal.

2. Stop wasting money on bank fees

Bank fees can quietly drain your finances over time. Even comedian Bill Burr once complained to Joe Rogan about his bank taking $28 out of his account every month “for no reason.”

In reality, many traditional banks charge anywhere from $5 to $35 per month in maintenance fees, overdraft fees and other hidden charges.

Online banks, on the other hand, typically offer lower fees (or none at all) since they don’t have the same overhead costs as brick-and-mortar institutions.

Many online banks also offer high-interest checking and savings accounts, allowing you to earn more on your idle cash while avoiding costly fees.

3. Slash utility bills without sacrificing comfort

Monthly utility bills — electricity, water and heating — can add up fast, but small changes can lead to big savings over time.

You can switch to LED light bulbs, unplug devices when they’re not in use and use smart thermostats to cut heating and cooling costs. According to the U.S. Department of Energy, simply switching to LED lighting can save the average household about $225 per year in energy costs.

You might also want to consider air sealing your home and adding insulation. The U.S. Environmental Protection Agency estimates that by doing so, homeowners can save about 15% on heating and cooling costs, or an average of 11% on their total energy costs.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

From classic muscle cars to high-end European rides, Grammy-winning rapper 2 Chainz is no stranger to big splurges.

But beyond the flashy impulse purchases, he’s also been making some smart money moves behind the scenes.

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In a recent episode of the Club Shay Shay podcast, host and Super Bowl champion Shannon Sharpe asked 2 Chainz to name some of his wildest purchases.

“I think I bought a [Rolls Royce] Phantom and a Maybach,” 2 Chainz told Sharpe.

“Damn, that is $800,000!” replied Sharpe, stunned by the sheer size of the purchase.

But 2 Chainz insists there’s a method to the madness: “Every time I do something stupid, I try to balance it out,” he said.

What does he use to balance it out? Real estate.

“As soon as I go buy a couple of chains, I would hit the girl that’s handling my real estate business and tell her, ‘Can you send me some properties to look at?’” he explained.

The veteran rapper noted that artists who suddenly come into wealth often spend freely on “stupid stuff” — from cars to jewelry. But eventually, the conversation would shift to passive income and investments.

For 2 Chainz, real estate is a no-brainer — having spent hours in the studio just scrolling through property listings.

“I’m a property hoarder,” he told Sharpe. “I be getting penalized, but it’s my dirt and I know they don’t make no more dirt.”

‘They don’t make no more dirt’

As 2 Chainz points out, one of the core truths about real estate is just how scarce it can be.

You can’t create land out of thin air — and buildable land is even harder to come by.

Even Federal Reserve Chair Jerome Powell acknowledged at a press conference last year that the real problem behind America’s housing crisis is simple: “We have had, and are on track to continue to have, not enough housing.”

An analysis by Zillow published in June 2024 estimated the U.S. housing shortage to be 4.5 million homes.

That supply-demand imbalance may help explain why home prices continue to climb. Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has surged by more than 50%.

But, these days, you don’t need to be as wealthy as 2 Chainz to start investing in real estate. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving rental income deposits from your investment.

Another way to go is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market, according to Federal Reserve data — a space that’s historically been the exclusive playground of institutional investors.

With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headache of buying, owning or managing property.

With risk-adjusted target returns ranging from 14% to 17%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

A finer alternative

Beyond real estate, the ultra-wealthy are also known to hoard fine art — and it’s easy to see why.

The supply of truly great works is limited, and many famous pieces have already been snatched up by museums and collectors. Art also has a low correlation with stocks and bonds, which helps with diversification, according to a recent Deloitte blog post.

In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history.

Investing in art was traditionally a privilege reserved for the ultra-wealthy.

Now, that’s changed with Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It’s easy to use, and with 23 successful exits to date, every one of them has been profitable thus far.

Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.

Masterworks has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here.

See important Regulation A disclosures at Masterworks.com/cd

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.

President Donald Trump has unveiled an ambitious vision for America’s financial future — the creation of a sovereign wealth fund that mirrors the strategies of resource-rich and oil-producing nations.

On Feb. 3, Trump signed an executive order directing the creation of a U.S. sovereign wealth fund. The order mandates that the Secretary of the Treasury and the Secretary of Commerce develop a plan within 90 days, detailing funding mechanisms, investment strategies, fund structure and governance models.

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• Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now

“We’re going to create a lot of wealth for the fund,” Trump told reporters that day.

While Trump has floated the idea of using “tariffs and other intelligent things” for funding, no concrete financial source has been confirmed.

The proposal has sparked both interest and criticism. Economist Peter Schiff, once a Trump supporter, slammed the idea as “preposterous” and “unconstitutional” — warning against government interference in the market.

Colin Graham of Robeco echoed these concerns, noting that sovereign wealth funds typically rely on national savings — something the U.S. lacks due to its $36.22 trillion national debt.

Skeptics argue that launching a wealth fund doesn’t make sense given the country’s high debt, seeing it as a sign of misplaced financial priorities.

While political leaders debate policy, savvy investors should stay focused on what they can control — building and safeguarding their wealth regardless of who’s in the White House.

Here are three simple ways to get started on building your wealth.

Others have also raised concerns about the economic feasibility of such a fund.

“The economic rules of thumb don’t add up,” said Colin Graham, head of multiasset strategies at Robeco in London. “Creating a sovereign wealth fund suggests that a country has savings that will go up and can be allocated to this.”

The U.S. government doesn’t have much in the way of savings — it has debt. As of this writing, the U.S. national debt stands at $36.22 trillion, raising concerns about whether a sovereign wealth fund is financially viable.

Whether Trump’s sovereign wealth fund becomes a game-changing wealth-generating force or faces insurmountable challenges, the responsibility falls to all Americans to take control of their own financial future. While governments debate policy, savvy investors have always prioritized building and protecting wealth — regardless of political shifts or who occupies the White House. Here’s a look at three easy ways to get started.

Warren Buffett’s No. 1 strategy for everyday investors

When it comes to building wealth, few investors have a track record as impressive as Warren Buffett.

From 1964 to 2023, his company, Berkshire Hathaway, grew in value by 4,384,748%. In 2024, Berkshire became the first U.S. company outside of the tech sector to surpass $1 trillion in market value.

Despite his legendary success in picking winning companies, Buffett doesn’t believe that’s the right approach for most investors. Instead, he champions a much simpler strategy.

“In my view, for most people, the best thing to do is own the S&P 500 index fund,” he once famously stated.

This gives investors exposure to 500 of America’s largest companies across various industries, providing diversified exposure without the constant monitoring or active trading.

Buffett believes so strongly in this strategy that he has instructed 90% of his wife’s inheritance to be invested in “a very low-cost S&P 500 index fund” after he dies.

The beauty of this approach is its accessibility. It also imparts an important lesson: Small, consistent investments can make a big difference over time.

Investment tools like Acorns take advantage of this approach by automatically investing your spare change at checkout.

How Acorns works is simple: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference into a diversified portfolio.

With Acorns, you can invest in Buffett’s top pick for most investors, an S&P 500 ETF, with as little as $5. Even better, Acorns will add a $20 bonus to help you begin your investment journey.

Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

Trump’s towering fortune: real estate as an investment tool

Real estate has been another powerful vehicle for long-term financial growth, and it’s a strategy that Trump himself knows well.

Long before he entered politics, Trump built his fortune through high-profile real estate ventures, from luxury developments to commercial properties. Trump is estimated to be worth $7.5 billion, including cash and assets, according to Nasdaq.

Investors gravitate toward real estate for good reason. Well-chosen properties can generate passive income through rent while potentially appreciating in value over time.

Additionally, real estate can serve as a hedge against inflation. When materials, labor and land costs rise, property values often follow suit. In turn, rent tends to increase, allowing landlords to offset the impact of inflation.

The best part? These days, you don’t need to be a real estate mogul like Trump to take advantage of this strategy.

Platforms like First National Realty Partners (FNRP) help accredited investors own part of institutional-quality, grocery-anchored properties without the hassle of finding and managing properties themselves.

FNRP leases to national brands like Whole Foods, CVS, Kroger and Walmart, which provide essential goods to their communities. Thanks to triple net leases, investors can collect grocery store-anchored income without worrying about tenant costs cutting into the bottom line.

Schiff’s safe haven: why gold still shines

For investors looking to add stability to their portfolios, gold remains a time-tested option.

The price of gold has surged more than 40% since the start of January 2024, according to Goldman Sachs. In April 2025, gold passed a record-breaking $3,000 per ounce.

During periods of uncertainty — tariff-driven or otherwise — investors often turn to gold. The precious metal is seen as a store of value against market volatility.

Schiff, a long-time advocate for the yellow metal, believes this is just the beginning.

“If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing — it’s the value of the dollar that’s decreasing,” he predicted on “The Lead-Lag Report” in November 2024.

If you’re bullish on gold, you can opt for a gold IRA to hedge against market volatility by investing directly in precious metals rather than stocks and bonds.

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

Opening a gold IRA with the help of industry leader Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.

Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

What to read next

• JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
• This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?

Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.