Author: Moneywise

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.

Katherine Graff moved into a newly built home in Morganton, North Carolina in May 2023. In less than two years, her brand-new home has already cost her $40,000 for structural repairs.

And based on recent engineering inspections, she believes it could cost her up to $300,000 more — despite a home inspection before she moved in.

“I’m never gonna get my money back from this house. All my retirement, everything. I mean, this is your biggest investment of one’s lifetime and it’s gone,” Graff shared with WCNC Charlotte reporters.

Within a month of moving in, Graff says she noticed carpenter ants coming through significant gaps in her home’s siding. When she went into the home’s crawl space, she noticed even more issues with the foundation and structure of the home, including large gaps and misaligned pillars.

Complaints to the builder and government agencies went nowhere

Graff has experience in building. She’s worked in brand new buildings, including schools and hospitals, “pulling wire,” a term often used to refer to the work electricians do to pull wire through walls when running electricity.

Graff reached out to builder Timothy Truitt of CMTT Properties and Belmont Builders, but he responded with resistance. “He pretty much said, ‘Nope,’ and sent me a letter from his lawyer telling me not to contact him anymore,” she said. Graff then filed a complaint with the North Carolina Licensing Board, which is currently investigating.

Graff also contacted Burke County officials for help but felt ignored, as they took no meaningful action or updated their procedures.

The situation worsened when Graff discovered Truitt might not have had a valid license when construction began. While county inspection sheets showed work started in September 2022, state records revealed the builder’s license wasn’t valid then, and the county didn’t conduct a license search until a month later. This raised serious concerns about the legitimacy of the builder’s actions.

Buying property can sometimes be a risk, but there are ways to get into the real estate market without too many headaches. With First National Realty Partners (FNRP), for instance, you can diversify your portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, accredited 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.

How to protect yourself from similar struggles

WCNC Charlotte contacted Burke County Manager Brian Epley, who explained that construction projects are contracts between homeowners and builders, with the county ensuring code compliance with North Carolina and Burke County standards. He confirmed the county investigated the property and forwarded their findings to the NC License General Contracting Board, but they have not yet received any results.

To protect yourself when purchasing or building a home, consider these tips:

• Verify the builder’s credentials
• Hire a reputable inspector
• Report builder issues to local authorities and licensing board

If all else fails, be prepared to take legal action. Filing a civil case may force the builder or the builder’s insurance company to pay for updates and repairs for structural issues. Currently, Graff is urging county officials to improve their processes and prioritize citizens over builders.

Hassle-free property ownership

If you aren’t ready to jump into home ownership, there are platforms like Arrived that let you buy stakes in rental properties, earn dividends and skip the responsibilities of property management.

Backed by world class investors like Jeff Bezos, Arrived’s easy-to-use platform offers SEC-qualified investments such as rental homes and vacation rentals for as little as $100.

Their flexible investment options allow both accredited and non-accredited investors to benefit from this inflation-hedging asset class with ease.

You start by browsing vetted properties, then you simply select a property and choose the number of shares to buy.

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.

It’s not always easy to save for retirement. After all, 60% of Americans live paycheck to paycheck per LendingClub, which means little extra is available for building a nest egg. But any extra you can set aside will pay off in retirement — and could possibly change your life before you retire.

Even more surprising, an extra $1,000 a month in savings may be right in front of you. Here are five ways you can save more money:

1. It all starts with a budget

The first step in saving an extra $1,000 a month is to examine your spending and then make a budget. By itemizing all your expenses, you can get a better idea of where you can comfortably cut back. Setting up a sustainable budget can keep you on track and help reduce unnecessary or impulse purchases.

With Monarch Money, you can track all your accounts in one place. This way, you can view a snapshot of your spending and finances — helping you stick to your budget.

You can set up notifications for recurring bills and subscription renewals, ensuring you never miss a payment. What’s more, you can link your investment and real estate portfolios on Monarch Money as well, which can help you track your net worth easily.

Monarch Money also lets you set up custom financial goals — such as buying a house or saving for retirement — and then tracks your progress towards them.

Sign up now and get a seven-day free trial and 50% off your subscription for the first year.

2. Take a bite out of your food expenses

Food is the third-largest expense for U.S. households, after housing and transportation, according to the latest consumer expenditure data from the Bureau of Labor Statistics. It’s also an area where you may be able to find some big savings.

The average amount American households spend on “food away from home" is more than $3,500 a year. Most of us know the cost of that morning coffee we grab on the way to work adds up, but it’s also likely a small luxury we’d like to keep. One way to save is to grab the coffee, but skip the pastry you’re grabbing with it ― and try to pack a lunch for work.

Plan and prep your meals for the week if you can. Make it a habit to go grocery shopping ahead of time so you’re less tempted to grab takeout on the way home. Don’t neglect to check flyers for your local grocery store to take advantage of what’s on sale, and consider adhering to the old-fashioned but effective practice of using coupons whenever you can.

You can also turn this everyday spending into an investment opportunity with Acorns.

When you make a purchase with your debit or credit card, Acorns automatically rounds it up to the nearest dollar and invests the spare change into a diversified portfolio of ETFs.

For instance, when you purchase a latte for $4.25, Acorns will round up the transaction to $5, and invest the 75-cent difference into a smart investment portfolio. Just $3 worth of daily round ups can add up to over $1,000 in a year — and that’s before it compounds and makes money in the market.

You can get a $20 bonus investment when you sign up with Acorns today.

3. Put the brakes on your transportation expenses

While food is a major cost, transportation takes second place as the largest expense for American households. Some people might be paying too much for a vehicle — or paying for a fancier vehicle than they really need.

While it may not be realistic to get rid of your car at this point, you can cut back on costs by walking more, taking public transportation when possible, or even carpooling to work more often.

This can save on gas and parking, and may help to reduce wear and tear on your vehicle. It may even reduce your insurance costs, as they’re often affected by the number of miles you drive.

It’s also a smart idea to shop around for car insurance.

OfficialCarInsurance lets you compare auto insurance rates from leading providers near you for free, including trusted brands such as GEICO, Allstate, Progressive, and more.

All you need to do is enter some basic information about yourself, the vehicle you drive, and your driving history, and OfficialCarInsurance will comb through its database and display the lowest available quotes.

Get started and find auto insurance rates starting at just $29 per month.

4. Get big gains by cutting small expenses

When you look at your expenses, look for small things that add up. If you’re spending a lot on books, consider getting a library card. If you buy a lot of bottled water, start using a refillable water bottle instead. Can you get by with fewer manicures? Cutting back on regular small expenses that won’t change your quality of life much can really add up.

You can save about $482 per year on average by comparing home insurance rates from leading insurers near you, and selecting the lowest available rate through OfficialHomeInsurance.

Using OfficialHomeInsurance is 100% free. All you have to do is enter some information yourself and about the home you’d like to insure. Within two minutes, the platform will sort through its database of over 200 insurers and display the lowest rates offered.

From there, you can compare the coverage offered by providers near you and read reviews before making a decision.

Getting pet insurance if you have a furry friend can also save you thousands down the road. According to Rover, pet owners spend approximately $34,550 on average over the lifetime of a dog with a 10-year life expectancy. The average lifetime care for a 16-year-old cat costs roughly $32,170.

Getting comprehensive pet insurance can help you significantly reduce your bill at the vet.

BestMoney — an online marketplace — lets you compare different pet insurance policies and their rates from leading providers like Embrace Pet Insurance, ASPCA, Spot Pet Insurance and Pet Best.

A side-by-side comparison of the policies as well as reviews of the various providers can help you make the best decision for both your pet and your wallet.

Get started with BestMoney and find pet insurance offers starting at just $10 per month here.

5. How saving $1,000 extra a month can change your life

If you’re able to start saving an extra $1,000 a month, you could start making big changes in your nest egg. For starters, you’re likely to have more peace of mind. Having more savings means you’re more likely to be able to pay for unexpected emergencies without incurring more debt.

You’ll also go a long way toward building your retirement fund by taking advantage of compound interest. If you start by contributing $1,000 a month to a retirement account at age 30 or younger, your savings could be worth more than $1 million by the time you retire.

If you save $1,000 at the end of every month and put it in a high-yield savings account that pays 5% interest (compounded daily), you’ll have nearly $70,000 in savings in five years. Do this for 10 years and you’ll have over $157,000.

Finding an extra $1,000 a month might also mean you can worry less about your prescriptions or medical expenses, treat yourself to a vacation every few years, or cut out that second job that’s taking you away from spending time with your family.

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.

A 401(k), an employer-sponsored retirement plan with tax benefits, is one of the most popular ways Americans save for their golden years.

Collectively, they hold almost $9 trillion in assets for 70 million participants (active and retired), according to the latest figures from the Investment Company Institute.

The average balance in these accounts is $132,300, according to a recent Fidelity report. The highest average balance is seen among Americans ages 65-69 at $252,800.

It may not surprise you to learn, therefore, that few Americans have a balance topping $1 million in their 401(k) workplace retirement plans. But those who have reached that milestone no doubt worked hard to get there. And with proper planning, you can, too.

A small percentage of savers

According to Fidelity, only 544,000 individuals are 401(k) millionaires, making up less than 3% of the 24.4 million 401(k) participants they surveyed.

But there’s a reason this number is so small. Building wealth for retirement takes effort and time. And if you don’t start early, you might really struggle to catch up.

Seeking professional help from a qualified financial advisor can be a game-changer when it comes to managing your money, offering guidance on investing, budgeting, tax strategy and more.

Advisor.com is an online platform that matches you with a vetted financial advisor suited to your needs.

Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.

What it really takes to build wealth

People who retire with $1 million or more tend to start working toward that milestone early on in their careers. If this is your retirement goal, then one of the most important things you can do is start funding an IRA, 401(k), or another dedicated investment accountat a young age.

Even small, consistent contributions can grow significantly, thanks to compound interest. On the contrary, waiting too long could mean missing out on valuable years of growth.

For example, if you start saving at 25 with a $420 monthly contribution and a 7% return, you’ll have over $1 million by age 65. But watch what happens when you wait until age 35 to start saving that money. Assuming the same monthly contribution and return, you’re looking at roughly $476,000 — losing over $500,000 in potential retirement wealth.

One of the easiest ways to start this habit is by automatically investing your spare change with Acorns.

The app rounds up the price of your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.

Sign up now with a recurring contribution and you can get a $20 bonus investment.

Live below your means

Living below your means is one of the most powerful financial habits you can adopt, helping you to save, invest and prepare for life’s unexpected challenges. One often overlooked way to cut costs is by revisiting your insurance policies — whether it’s auto, home, or pet insurance.

OfficialHomeInsurance.com takes the hassle out of insurance shopping. In just under 2 minutes, you can explore competitive rates from top insurance providers and save an average of $482 per year on your plan.

Home insurance premiums aren’t the only thing coming out of homeowners’ pockets. Car insurance rates rose an average of 16.5% in 2024, according to ValuePenguin.

OfficialCarInsurance.com lets you compare quotes from trusted brands, including Progressive, Allstate and GEICO, to make sure you’re getting the best deal.

You can find deals starting at just $29 per month.

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.

A new building safety law that was passed in the wake of the Surfside tragedy in Florida has resulted in a tremendous amount of financial pressure on condo owners. Now, one state lawmaker warns it could prompt the "next wave of homeless people," with elderly residents living on fixed incomes at the forefront.

The law requires associations for condos three stories or higher to fully fund their maintenance reserves. Previously, they could waive filling these reserves, which potentially allowed damage to build up over decades. It’s also mandatory for buildings at least 30 years old to undergo structural assessments and address any critical issues. Many owners have blamed these rules for adding upwards of tens of thousands of dollars in new fees.

Rep. Mike Caruso rang the alarm after the issue was dropped from a special session in January.

"It’s sad, and we’re not going to address it here in the Florida House," Caruso told the Miami Herald. "I’m shocked by it."

Here’s what has Caruso concerned about elderly condo owners.

New building safety law

In 2021, 98 people died when Champlain Towers South, a 12-story condominium in the Miami suburb of Surfside, partially collapsed. Legislators rushed to pass safety reforms and a new bill was signed into law.

But there was a problem. Many condo associations were short on reserve funds. This means that the costs for now-mandatory inspections and repairs were passed on to unit owners. These extra fees, or special assessments under Chapter 718 of the Florida Statutes, are typically levied in addition to existing fees.

Seniors on a fixed income are especially vulnerable to sudden maintenance fee increases. This is even more true for seniors still paying off a mortgage on their condo. What’s more, Florida has one of the highest proportions of Americans over 65 in the country at 21.7% of the population, according to the U.S. Census Bureau.

Taken together, this can put seniors on a fixed income in dire straits.

Downsizing to a smaller place or refinancing the mortgage rate on your current home could be challenging in this economy — with 30-year fixed-rate mortgages hovering at 6.67% as of March, 2025.

Shopping around for mortgage rates can help you find the lowest rate possible or negotiate better terms with lenders. Those who received two or more quotes from lenders saved, on average, up to $76,410 over the lifetime of a 30-year fixed-rate mortgage, according to a 2024 study from LendingTree.

If you bought your home when mortgage rates were hovering around 23-year highs of 8% or have built up better credit, refinancing your loan could potentially result in lower payments.

You canfind the lowest refinancing rates near you or shop around for a mortgagethrough Mortgage Research Center.

The process is simple: answer a few questions about yourself and the type of property you wish to refinance or buy, and Mortgage Research Center will match you with vetted lenders best suited to your needs.

Another source of financial stress

Florida, which is prone to natural disasters, is also facing an insurance crisis. Prominent home insurance providers like Farmers, AAA, and Progressive have been steadily reducing or permanently shutting down operations.

Home insurance prices in Florida are among the highest in the nation. The average annual premium for a $300,000 dwelling in the state was $5,340 as of March 24, nearly two-and-a-half times the national average of $2,242, according to Bankrate.

But this doesn’t mean you can’t get affordable insurance coverage for your home.

OfficialHomeInsurance.com is an online marketplace that lets you compare rates offered by leading aggregators near you for free. A side-by-side comparison of insurance premiums and other features can help you save up to $482 a year on average.

After entering basic details about yourself and your home, OfficialHomeInsurance will sort through its database of over 200 insurance companies and display the best deals for you.

From here, you can find the lowest home insurance rates available in only minutes.

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.

It’s natural to be curious about how well off — or not — our friends, neighbors and peers are. And for better or worse, social media makes it easy to satisfy this curiosity. You may be inclined to assume that the folks you interact with on a regular basis are doing quite well financially. However, social posts focus on the positive, which can make it appear as though they have more money than they actually do.

With this in mind, here are a few signs that may indicate the people you know are actually broke — or that you’re headed down a similar path.

1. They don’t have an actual financial plan

When you head out on a road trip without directions, you risk getting lost along the way. Similarly, if you go through life without a financial plan, you risk winding up broke — or if not broke, at the very least, shy of your financial goals.

A 2024 Northwestern Mutual survey found that 55% of Americans don’t have a broad financial plan that allows them to balance their near-term and long-term goals. If that’s the case for you, it’s a good idea to talk to a financial advisor and get on a better path.

Finding a financial advisor that suits your specific needs and goals is simple with Vanguard.

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

With a minimum portfolio size of $50,000, this service is best for clients who already have a nest egg built and would like to try to grow their wealth with a variety of different investments. All you have to do is set up a consultation with a Vanguard advisor, and they will help you set a tailored plan and stick to it.

2. They spend a lot on brand names

It’s okay to splurge on a quality item from time to time, especially if it’s something that helps you earn money, like a laptop you use for your job. But if you feel compelled to only buy brand names — and the fanciest ones at that — you’re more likely to end up in a bad place financially.

This may be why total U.S. household debt has jumped by $93 billion to reach $18.04 trillion, according to the Federal Reserve.

If you want to avoid becoming broke, don’t buy things — whether it’s a car, a house, or clothing — with the goal of showing off. Instead, buy things with the goal of addressing your needs as economically as possible.

When you do spend, you can also be smarter with your money by automatically investing your spare change with Acorns.

The app rounds up each of your everyday purchases to the nearest dollar and invests the difference in a diversified portfolio. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.

For example, when you spend $3.60 on coffee, Acorns will automatically invest the 40-cent difference. Plus, with an Acorns Silver plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.

3. They confuse income with wealth

One mistake people make all the time is figuring that because they earn a lot, they can afford to spend a lot. In reality, if you don’t keep any of your income, you’re going to end up broke.

A 2024 PYMNTS survey found that 48% of people earning more than $100,000 a year live paycheck to paycheck with no money in savings to fall back on. And the same holds true for 36% of people earning more than $200,000 a year.

Another big mistake most Americans make is leaving their money in low-interest savings accounts. More than 82% of the population is missing out on high-yield savings accounts, which offer returns up to 10 times higher than traditional banks, according to CNBC.

A healthy savings account balance gives you the funds to handle unexpected expenses and save for retirement, all without going into debt. If you’re looking for the best bank for your savings, compare and select from the Moneywise list of the Best High-Yield Savings Accounts of 2025.

4. They lack financial discipline

People who are secretly broke tend to give in to impulse purchases rather than planning and budgeting. Worse yet, they tend to use credit cards to fund impulse purchases, driving themselves even deeper into debt.

While occasional impulse buys may not break the bank, making a habit of them can seriously harm your finances. Instead, focus on budgeting and being intentional with your spending.

Budgeting can be challenging, especially when trying to track multiple accounts, shopping and daily expenses simultaneously. However, Monarch Money’s expense tracking system can simplify the process.

The platform seamlessly connects all your accounts in one place, giving you a clear view of where you’re overspending. Whether you’re looking to save, invest, or simply control your expenses, Monarch Money offers the tools to help you succeed. Plus, for a limited time, you can get 50% off your first year with the code NEWYEAR2025.

5. They keep chasing get-rich-quick schemes

There are certain tried and true methods of growing wealth over time. These include buying a home and seeing its value increase, investing in stocks and holding them for decades, and putting money into bonds for slower but stable returns.

Chasing get-rich-quick schemes, on the other hand, is a good way to end up with less money rather than more.

Even short-term stock investments can be risky, as it often takes time for stocks to increase in value. So, instead of trying to make a quick buck, focus on ways to grow your net worth slowly but consistently, such as taking advantage of compound interest.

With Wealthfront’s automated investing platform, the power of compound interest works for you. Their sophisticated "set it and forget it" approach means your money is professionally managed and automatically rebalanced, allowing your wealth to grow steadily over time.

Start investing for the long term with globally diversified portfolios or go for a higher yield than a traditional savings account with an automated bond portfolio.

Open your account today and receive a $50 bonus to jumpstart your investment journey. Whether you’re saving for retirement, a home, or building generational wealth, Wealthfront’s low-cost, automated investment strategy can help you achieve your financial goals.

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.

Former NBA star Charles Barkley shared in a recent interview with Shannon Sharpe on the Club Shay Shay podcast that it took a reality check from his mentor, Dr. J, to help him learn some financial wisdom.

“I first was an idiot when I got my money,” the 61-year-old said. “I had like three or four cars…Dr.J says, ‘How many of those cars can you drive at the same time?’” Barkley recalls. “‘Why you got four? This money got to last you the rest of your life.’”

This shifted his perspective on money and cars forever. Here’s why abandoning the car obsession could change the lives of ordinary Americans, too.

National obsession with cars

It’s not just celebrities and professional athletes splurging on automobiles. The average American family owns more cars, spends more on them, and drives further than their counterparts in the rest of the developed world.

In 2022, there were 860 cars for every 1,000 people in the US. By comparison, there were 677 in Canada and 627 in Germany. Most US households (91.7%) had at least one vehicle, and 22.1% of households had three or more vehicles, according to the Department of Transportation. The average American commutes 41 miles a day, much more than the average of 18 miles in the EU.

Additionally, American drivers spend 93 billion hours behind the wheel each year. It’s no surprise that, along with the cars themselves, gasoline is one of the biggest recurring household expenses in the US.

One way you can earn more at the pumps is by using the free Upside app, which allows you to earn up to 25¢ per gallon with your credit or debit card every time you fill up.

It’s a simple way to make your money go further, especially as gas prices fluctuate. Use promo code AFF25 to get an extra 25¢ per gallon bonus on your first transaction.

In addition to this, our car obsession is costlier than you may think. In the second quarter of 2024, the average auto loan for a new car was $40,927, with a 6.84% interest rate and monthly payments of $734.

Simply put, families can save a lot of money by opting for cheaper cars, using public transport, or sharing.

That was Dr. J’s recommendation to Barkley as well. He said, “Son, don’t waste your money on cars. Everyone knows who you are. If you bought a car for $70,000 or $80,000, instead of $300,000, you would’ve had $200,000 more in the bank, and it would have been growing and growing.”

Lower auto costs

Downgrading and trading in your car for something cheaper is usually the quickest way to lower your auto costs. Ideally, buying a used car for less than market price in cash allows you to avoid the auto loan and associated expenses.

However, if this option doesn’t appeal to you, there are other ways to reduce vehicle expenses. Switching to an electric vehicle (EV) can save you about $1,100 annually in fuel and maintenance costs, according to nonprofit Coltura. Switching to a pay-per-mile policy and keeping an eye on auto loan rates and refinancing when they drop can also help. For example, the average rate on new auto loans dropped from 6.98% in December 2023 to 6.11% in September 2024, according to the Federal Reserve.

LendingTree Auto Finance offers a simple and efficient way to lower your car costs by letting you compare loan offers side-by-side from various lenders.

By refinancing your existing car loan through LendingTree, you can secure a lower interest rate, which can lead to significant savings over the life of your loan.

This means more money stays in your pocket while you pay off your vehicle faster. You can get auto loan offers from up to five lenders in minutes.

Perhaps the most effective way to save money is by comparing auto insurance rates for a better deal, especially as a recent LendingTree report found that insurance rates jumped 16.5% in 2024.

Thanks to OfficialCarInsurance.com, comparing multiple insurance companies is easier than ever.

Just enter your basic info, and you’ll instantly get a selection of offers to choose from, including trusted brands such as Progressive, Allstate, and GEICO.

In under 2 minutes, you could save hundreds of dollars a year on your auto insurance costs

Save more at the gas pump

According to the Bureau of Labor Statistics, American households spent about $204 on gas per month in 2023 — adding up to $2,449 annually.

Experts predict gas prices will rise by 25 to 75 cents per gallon if President Trump imposes 25% tariffs on imports from Canada. This move could put a strain on your pockets.

You can ease this burden by signing up for a gas credit card, which allows you to earn points or cash back every time you fill up your tank.

You can compare the best gas credit cards available for free through CompareCards.com.

CompareCards.com makes the process of choosing a credit card quicker and easier. You can view and compare the rewards structure and other features, like annual fees and sign-up bonuses, helping you make an informed decision.

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.

Raising self-reliant children can be challenging, especially for wealthy families. Kids who grow up in households with vast resources may struggle to see the value of personal achievement.

"I went to school with some of those kids at Duke University, and I vowed to myself that if I ever had resources at my disposal, those were not the kind of children I wanted to raise," Melinda Gates said in a New York Times interview, referring to kids whose parents had their names on the side of buildings.

While most families don’t share that level of wealth, all parents can benefit from teaching their children the importance of earning, saving, and managing money wisely.

Provide an allowance to learn good money management

The Gates children, despite their parents’ wealth, had limited financial resources and learned to use them wisely.

"They had an allowance," Melinda Gates explained, adding that their kids had to wishlist desired items, which they might receive on special occasions.

Allowances, used by 79% of parents according to a T. Rowe Price survey, help kids understand the value of money and make smarter financial decisions.

While the Gates children may have learned their money lessons young, not all Americans reach adulthood with financial literacy. If managing a budget feels overwhelming to you, apps like Rocket Money can simplify the process.

Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.

For a small fee, the app can also negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.

If you want to focus on saving and investing in 2025, but don’t know how you can find the room in your budget, tools like Acorns can make the process effortless.

When you link your credit cards and bank accounts to the app, Acorns will automatically round up each of your purchases to the nearest dollar and invest the spare change in a diversified portfolio. It’s a simple way to turn everyday spending into an opportunity to grow your savings.

Plus, when you sign up now, you’ll receive a $20 bonus investment to get started.

Help them understand their privilege

If your children are lucky enough to enjoy experiences that many cannot afford, it’s important to help them understand that this is a privilege, not everyone has and that being mindful of this matters.

"We said to them from a very early age, you know you really are not allowed to tell other people how we flew on this trip back and forth, otherwise it will separate you from other children," Gates said.

As you work to raise privileged kids with empathy, it’s equally as important to make sure they are financially savvy — especially for a distant future when you aren’t around. It may be worth laying out succession plans with platforms that make it easy and stress-free.

LegalZoom is an innovative online service that streamlines estate planning, offering tools to create wills, living trusts, and prenuptial agreements. You can start building an estate plan for as little as $99 by answering a few straightforward questions.

With customizable templates, step-by-step guidance, and the option to consult licensed attorneys, LegalZoom helps you protect your family’s future without the hefty fees associated with traditional law firms.

By following these tips, you can raise kids with good financial sense so they can build their own success.

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.

Retirement is supposed to be the reward after decades of hard work. Morning alarms, office politics and exhausting commutes … gone. The idea of finally having full control of your time is appealing, and for many, it feels like the finish line after a long race.

But while you may gain freedom, you’ll also lose more than you think. Some losses, like a steady paycheck, are obvious. Others, like a sense of purpose, sneak up on you.

Without a plan — or a big enough nest egg — they can leave you feeling unprepared for what comes next.

Here are five things that tend to disappear in retirement — and what you can do now to make sure they don’t take you by surprise.

1. The financial safety of your paycheck

The most immediate and undeniable change in retirement is the disappearance of a steady paycheck.

For decades, your income arrived like clockwork. In its place are managed withdrawals from retirement accounts, Social Security and any other income sources you’ve set up along the way.

Over 80% of older adults face financial struggles or risk economic insecurity in retirement, according to the National Council on Aging. Inflation worsens this by eroding fixed incomes.

A solid withdrawal strategy, like the safe withdrawal rate (now 3.7%), helps balance spending and preservation. Diversifying income with annuities, rental income, or part-time work, moreover, can reduce financial stress, and help to delay Social Security until age 70, maximizing benefits.

A Home Equity Line of Credit (HELOC) can also offer an extra source of liquidity and financial flexibility at this time. With home values higher than ever, you can make your home work harder for you by leveraging its equity.

The average homeowner sits on roughly $315,000 in equity as of the third quarter of 2024, according to CoreLogic. Year over year, homeowner equity is also up by 8%, for a national aggregate of $17.6 trillion.

With a HELOC loan, you can turn all that equity into tax-free cash, which can be used to pay off high-interest loans. Rates on a home equity loan are typically lower than APRs on credit cards and personal loans, making it an appealing option for homeowners with substantial equity.

Unlock the lowest possible rates in minutes by shopping around with LendingTree. You can compare real loan rates offered by different lenders using their side-by-side comparison tool.

2. Your risk tolerance

When you’re working, taking risks with your investments doesn’t feel as scary. If the stock market dips, you know you’ll keep contributing to your 401(k) or IRA, and there’s time to recover.

But retirement changes the stakes. Market downturns impact your portfolio and how much you can safely withdraw each year.

Market volatility can feel scary, especially when it threatens your retirement income. You’ll need the guidance of a professional financial advisor to navigate through it and help you stay calm.

With Vanguard, you can connect with a personal advisor who will evaluate your progress and ensure your portfolio mix meets your goals and risk tolerance.

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 finances, and Vanguard’s advisors will help you set a tailored plan and stick to it.

Once you’re all set, 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.

3. Your frivolous spending habits

Many retirees ramp up travel, dining out and hobbies, leading to what financial planners call the “retirement honeymoon” phase.

While this initial surge in spending may feel like well-earned freedom, tracking expenses and adjusting for different phases of retirement can help ensure financial stability throughout the decades.

However, budgeting like this can be challenging, especially in retirement, when you’re managing multiple accounts and tracking daily expenses at the same time. Monarch Money’s expense tracking system simplifies the process.

The platform seamlessly connects all your accounts in one place, giving you a clear view of your overspending. It also helps you monitor your expenses and payments in real time.

Whether you’re looking to save or simply control frivolous spending, Monarch Money offers the tools to help you succeed. And for a limited time, you can get 50% off your first year with the code NEWYEAR2025.

Even in retirement, you still want your money to keep growing. Make the most of these extra working years by automatically investing your spare change with Acorns.

The app automatically rounds up your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that while you’re still earning an income, every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.

Plus, with an Acorns Silver plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.

4. Your employer-sponsored benefits

Losing a paycheck is tough, but losing employer-sponsored benefits, especially health insurance, can be an even bigger shock. If you retire before 65, you’ll be without coverage until Medicare starts, and even then, gaps in coverage can lead to unexpected expenses.

Having a reliable, affordable insurance policy in place helps protect your retirement nest egg from being depleted by extended medical care expenses, such as in-home care, assisted living facilities, or nursing home care, providing an extra layer of financial security when you need it most.

5. Your perceived sense of purpose

Work isn’t just about earning money — it provides routine, social interaction, and a sense of accomplishment. A study from the National Library of Medicine has linked a lack of purpose in retirement to increased health risks, including depression, cognitive decline, and even verbal memory function.

The best way to avoid this emotional downturn is to plan beyond just your finances. Volunteering, pursuing passion projects or even taking on part-time work can help fill the void.

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.

Jamal Robinson didn’t come from money. He started at the bottom, working as a church janitor at 14 before landing a minimum-wage job at Taco Bell, working long shifts while also going to school.

Today, at 40, he’s an American expat living among the glittering skyscrapers of Dubai.  He has a $3.5 million nest egg and is pulling in $185,000 a year using the 4% retirement income rule. His secret? Relentless saving, aggressive investing, and a laser focus on financial freedom.

“I didn’t see a lot of people that were happy with work,” Robinson told CNBC. “In my mind, I always thought that it made the most sense to compress that amount of time in my life. So at 17, I set the goal to retire early at 45, which I wound up hitting six years earlier than expected.”

Robinson’s journey from minimum-wage worker to multimillionaire retiree is an extraordinary anecdote of the FIRE movement (Financial Independence, Retire Early). Advocates of this approach make a ruthless commitment to saving and investing so that they can retire as young as possible.

How Jamal did it

After high school, Robinson hustled through college, earning a computer engineering degree at Tennessee Tech on a full-ride scholarship while working at the same time. Over time, with an MBA, nine certifications, and expertise in generative AI, he eventually reached an income of $1.1 million per year.

But instead of chasing the next promotion, he chose financial freedom. Old habits die hard: As he progressed in the tech industry, Robinson banked huge sums — at one point socking away nearly 90% of his income. Then, in 2024, at just 39 years of age, he retired with $3.5 million in savings and investments. He now produces music and DJs in his spare time. He’s also writing a book and producing a podcast.

Strategies to make anyone financially free

Robinson’s hard-earned success may be an outlier, but it’s also a blueprint anyone can follow: finding a way to save small amounts while spending can also help boost your retirement portfolio. For instance, with Acorns, you can automatically invest spare change from everyday purchases into a smart investment portfolio of ETFs.

While saving a few cents might not seem like much, thanks to the powers of compounding, you could save a sizable amount over time. For instance, investing just $3 each day can result in over $1,000 in a year — and that’s investment earnings.

Get started with a $20 bonus investment when you sign up with Acorns today.

If you want to diversify your portfolio further and invest in individual stocks, jargon-free expert advice from Moby might be beneficial.

Run by a team of former hedge fund analysts, Moby’s stock picks have outperformed the benchmark S&P 500 index by an average of 11.95% per year in the last four years. Plus, more than 75 stock recommendations from Moby have generated returns of over 100%.

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Jamal Robinson proved that directing extra income into investments can shave decades off your working years. The more you save now, the faster your money can work for you.

Another crucial tip followed by most financial gurus is to not keep all your eggs in one basket. Especially in a volatile market, allocating a portion of your portfolio to tried-and-true assets that have withstood the test of time could help you secure your financial future.

Gold has historically been one of the most popular safe-haven assets. Amid rising market volatility due to both recession concerns and escalating geopolitical tensions, gold prices hit a record high of $3,000 on March 13. The US stock market, on the other hand, has entered correction territory, losing $5 trillion in value in the last three weeks.

So, adding gold to your portfolio can not only keep you safe but also add value.

With a gold IRA, you can directly invest in physical gold without having to worry about authenticity or storage.

If you’d like to convert an existing IRA into a gold IRA, companies typically offer a 100% free rollover. Others might offer free gold, silver or other metals up to a certain amount when you make a qualifying purchase.

You can check out the Moneywise top picks for industry-leading companies offering gold IRAs.

Real estate investments could also be a lucrative way to diversify your portfolio. With Homeshares, accredited investors can tap into the $36 trillion U.S. home equity market — without the headaches of buying or managing investment properties.

Homeshares’ U.S. Home Equity Fund offers accredited investors an effective, hand-off way to own a stake in high-quality owner-occupied homes across top American cities.

The fund’s risk-adjusted internal returns range from 12%-18%, allowing investors to potentially generate high yields, with a minimum investment of $50,000.

Alternative assets like art could also be valuable additions to your portfolio. Art has historically been negatively correlated with stocks — meaning they go up in value during a market downturn.

For decades, blue chip art was only accessible to the ultra-wealthy. In 2024, elite investors allocated as much as 25% of their total portfolios to art collections. But Masterworks is changing that. You can invest in fractional shares of works from artists like Banksy, Picasso, and Basquiat.

From their 23 exits so far, Masterworks investors have realized representative annualized net returns like +17.6%, +17.8%, and +21.5% among assets held longer than a year.

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