Author: Vawn Himmelsbach

Credit cards are popular with Americans — and so are the points, rewards and perks that come with them. That’s why some Americans devote time and energy (and spending) to optimize multiple rewards programs and claim rewards they wouldn’t otherwise be able to afford, such as flying business class.

The number of credit card accounts in the U.S. has increased steadily over the past 15 years; in 2023, 82% of adults had a credit card.

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About half of cardholders carry a balance and, in the first quarter of 2025, Americans were carrying a near-record total of $1.18 trillion in credit card balances.

But economic uncertainty and pending legislation are about to change the rewards landscape — and not for the better.

Consumers can’t get enough of credit card rewards

Rewards have played a part in the growth of credit cards (and debt) by helping credit card providers attract and retain customers.

“The reward point functions as an alternative currency with real economic value, yet it continues to carry aspirational and emotional significance,” So Yeon Chun, an associate professor of technology and operations management at INSEAD, recently told Business Insider.

“In other words,” he said, “rewards have become a dual-purpose behavioral currency: A tool for economic relief and a channel for emotional and symbolic value.”

Redeeming rewards “can have an outsize effect on satisfaction” on cash-strapped consumers, according to Bain & Company.

A few years ago, rewards redemption was a “routine episode, or interaction that fulfills a need, unlikely to faze customers,” according to the global management consulting firm. “But it has since become a ‘moment of truth’ — an episode with a high likelihood to delight or annoy, depending on how well the credit card provider executes the end-to-end process.”

At the same time, rewards have economic value that consumers are using to make day-to-day purchases and cover necessities.

“Most consumers, including middle-income earners, now use rewards not just to manage spending, inflation or debt, but also to preserve lifestyle,” Chun told Business Insider.

Consumers had amassed reward balances of more than $33 billion by the end of 2022, according to the Consumer Financial Protection Bureau (CFPB).

And those rewards are “incredibly popular,” according to the Ipsos Consumer Tracker, summing up the results of a 2024 poll. Seventy-one percent of Americans have a rewards or cashback credit card, and about one in five younger Americans (ages 18-34) use the rewards for experiences they “couldn’t afford otherwise.”

But it also found that over a third of respondents said they wouldn’t spend as much on their credit cards if rewards weren’t offered.

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Dark clouds on the rewards horizon

Despite their popularity, economic headwinds may cause a reduction or restructuring of rewards programs similar to what happened during the Great Recession, when 0% balance transfer programs were cut back dramatically.

While economic prognosticators disagree as to how likely we are to enter a recession in the near term, continued near-record levels of economic policy uncertainty are having much the same effect on business decisions as a recession.

For instance, airline reward programs have already started to lose value — and other perks may soon follow.

“In the more typical downturn, we are likely to see a different kind of shift. Issuers will preserve the appearance of program stability while quietly reducing average value,” Chun told Business Insider. “Redemption thresholds may rise, expiration timelines may tighten, bonus categories may rotate more frequently, and access to high-value redemptions will become more conditional.”

Even more concerning to consumers who’ve racked up rewards, those programs may disappear altogether in the U.S. — despite their popularity.

Senator Dick Durbin, a Democrat from Illinois, and Sen. Roger Marshall, a Republican from Kansas, are driving efforts to move the Credit Card Competition Act through Congress.

The bill would reduce interchange fees, which are the fees charged to merchants that allow them to accept credit cards. These fees are a source of revenue for credit card companies and help to fund rewards programs. Some major airlines have already warned that if the legislation passes, frequent flyer programs could disappear.

At the same time, credit card providers can devalue your rewards at any time (which can also happen naturally with inflation) — so accumulating and hoarding points may not be in your best interest.

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

Think retiring early is out of reach because you don’t make a six-figure salary? It takes careful planning and discipline, but it is still possible.

About 60% of American retirees entered their golden years before they turned 65, with a median retirement age of 62, according to the 2025 EBRI/Greenwald Research Retirement Confidence Survey.

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Still, only one in 10 American retirees retired before they were 55 and about a quarter before they were 60. If you want to join that cohort but don’t have a high income, you’ll need to make some smart money moves (and a few sacrifices).

In general, retiring early means spending less, saving more, investing wisely and finding ways to reduce your living expenses in retirement. We all know this, but what are some practical steps you can take today to get on the road to retiring early?

1. Work with a financial advisor

Industry studies have shown that professional financial advice can add up to 5.1% to portfolio returns. But advisors can also help you navigate complex topics such as tax efficiency, retirement withdrawal timing and choosing suitable investments for your goals and risk tolerance. And they can help you stay on track and adjust your plan if necessary.

2. Make two budgets

Budgeting may seem too boring to be ‘savvy,’ but it’s a key financial tool. A budget can help you understand your current finances, rein in your spending and shape your financial plan. Tracking your expenditures against your budget can even reveal new possibilities for saving.

But you’ll need two budgets. After tracking your current budget for a few months, you can use it to estimate your retirement budget (what you’ll need to live off once you’re retired). This will help determine how much you’ll need to save to retire early. You’ll want to review this retirement budget periodically and make adjustments as needed.

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3. Automate your savings

To retire early, you may need to save more than the 15% that’s often suggested. If you want to join the Financial Independence and Retire Early (FIRE) movement and retire in your 30s or 40s, you may need to save up to 75% of your income.

Whichever retirement age you’re aiming for, you’ll need discipline to reach your savings goals — and one way to maintain that discipline is to automate your savings. An easy way to do this is to make 401(k) contributions directly from your paycheck, but you can also set up direct deposit into a high interest savings or investment account.

There are several apps that can help you automate your savings, including some that will round up your purchases and put the difference in a savings or investment account. Remember to increase your automated amount if you get a raise.

And if you cut out a regular expense such as a subscription or membership to save money, add this amount to your automated payments.

4. Manage your debt

It will be difficult to retire early if you’re carrying a large balance on a credit card or other high-interest debt. The savviest move is to not carry a balance — but life happens, so if you do have a balance, paying it down should be your No. 1 financial priority (along with building an emergency fund).

Paying down a credit card with a 20% interest rate delivers an immediate 20% return, so it might make it easier to do if you think of it as investing.

While you want to pay off high-interest debt as quickly as possible, you might want to consult with your advisor before accelerating your mortgage payments. If your mortgage rate is lower than your expected investment return, you may want to invest the money instead, but this decision will depend on your circumstances and preferences.

5. Maximize your biggest asset

Your biggest asset is likely your stream of future earnings, so to retire early you’ll want to maximize this asset.

While you could consider a side hustle or second job, look first at your current job and evaluate whether your time and energy might be better spent on developing your career to increase your future income stream. Consider whether you could make more from extra sales, a raise or a promotion — or if it makes more sense to take on a side gig.

Retiring early takes planning and dedication — but not necessarily a six-figure income.

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

When Jim’s grandmother passed away, he didn’t just inherit her favorite teacups or photo albums — he inherited $100,000, and with it, a dream she always had for him: building a future, buying a home and starting a family.

Not long ago, Jim proposed to his girlfriend of three years. They’d been planning a small, intimate wedding with a budget of around $20,000 — part of which would come from their parents. They hadn’t saved much of their own money and didn’t want to go into debt for just one day.

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But since Jim received news of his inheritance, his fiancée has seemingly switched gears. Now she wants a glitzy destination wedding, a designer dress and a much longer guest list. Jim wants to stick to their original plan, but now she’s calling him “stingy” for refusing to spend “our inheritance” on her “dream” wedding.

Now Jim’s questioning how well he really knows his fiancée and whether they share the same life goals — or if he really is stingy for saying no.

Understanding the cost of big weddings

Maybe you can’t put a price on love, but you can definitely put a price on a wedding — and that price is getting even more expensive. According to Zola’s First Look Report on wedding trends for 2025, the average cost for a wedding is projected to hit a high of $36,000, up from $33,000 in 2024.

Of course, the price tag depends on location. New York City was the most expensive place in the U.S. to get hitched, averaging $65,000. Destination weddings aren’t cheap either, averaging $41,312.

Zola also followed up with couples who got married in 2024. About 20% said they went over budget by $10,000.

If Jim and his fiancée stuck with their original plan, they could use that $100,000 to get on solid financial footing as they start their life together. That could mean an emergency fund, paying off high-interest debt or boosting retirement contributions.

If they want to buy a home, the money could cover a 20% down payment on a $500,000 property. If they plan to have kids, it could help start a college fund. Or they could invest it for long-term goals — for example, if Jim invested the money with 6% annual returns, it could grow to more than $300,000 in 20 years.

In the meantime, Jim could park the money in a federally insured high-yield savings account while he decides. He should also check whether any inheritance tax applies. As of 2025, only five states have inheritance tax, which is paid by the beneficiary. Those include Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania and Iowa.

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Financial planning needs joint communication

The bigger concern here is that Jim and his fiancée may not be on the same page about their financial goals.

While she could just be having a bridezilla moment, this shift might also reflect deeper differences in financial values — ones that could cause bigger problems if they’re not addressed.

Financial transparency means talking openly about shared goals — short-term (like a wedding), mid-term goals (like buying a home) and long-term goals (like saving for kids’ education or retirement).

Once they’re married, their tax and legal status will change. They’ll be sharing a household budget and likely filing taxes together, so it’s important to discuss what their financial future looks like before walking down an aisle.

Nearly one in four couples say money is their biggest relationship challenge, according to Fidelity’s 2024 Couples & Money study. But those who make financial decisions together are more likely to say they communicate well or very well with their partner.

If Jim and his fiancée can’t find common ground on managing the inheritance, it may be time to consider premarital financial counseling or working with a financial advisor.

There may be room for compromise. They already had a $20,000 wedding budget. Many financial experts agree it’s okay to spend a small portion — say, 5% to 10% — of a large windfall on something memorable. In Jim’s case, that could mean putting 10% toward the wedding, bringing the total to to $30,000.

That extra cash could cover a larger venue, a designer dress or a bigger guest list — but there would still need to be compromises. Maybe a destination wedding is still on the table, but somewhere more affordable in the Caribbean instead of Tuscany or Fiji.

Disagreements about how to spend an inheritance aren’t uncommon. It’s not necessarily a dealbreaker, but if Jim’s fiancée is focused solely on what she wants from his inheritance, it could be a yellow flag worth paying attention to.

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Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

Retirees usually have bucket lists and dream vacations they want to go on while they’re still healthy and fit.

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But after trips and possibly many dinners out over the past four years, it sounds like you’re suffering buyer’s remorse. The good news is you realized you’re jeopardizing your ability to fund the rest of your retirement, and you can take steps to protect your financial well-being before it’s too late.

Many retirees are spending more than they planned

About a third of retirees say they’re spending more than they expected on travel, entertainment and leisure and over half say their overall expenses are higher than they expected, according to the 2024 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI).

Despite this, “74% of retirees are confident they will have enough money to live comfortably throughout retirement.”

However, their confidence may be misplaced.

The first years of retirement tend to be the most expensive on average, according to a Consumer Financial Protection Bureau (CFPB) report. But this is not, as commonly believed, because retirees no longer want to spend on travel and entertainment. Rather, it’s due to an inability of many to maintain that level of spending.

Those who had to rein in their spending “reduced their expenses 28% from the first year in retirement to the sixth year in retirement.”

Still, this isn’t necessarily a bad thing. Because our health will inevitably decline as we age, we may have more energy, mobility and strength to pursue leisure activities and travel in our early years of retirement.

Doing so, however, will require careful planning to ensure you remain comfortable throughout retirement and are able to fund a potential increase in medical expenses in later years.

Getting back on track

To ensure you have income throughout your retirement, determine a sustainable rate at which you can withdraw from your retirement savings.

A common rule of thumb is the 4% rule. It says if you withdraw 4% of your investment portfolio in the first year and then this same amount plus an adjustment for inflation in each subsequent year you have a low probability of running out of money for 30 years.

In your case, you could determine today how much of your retirement savings remain and begin employing the 4% rule from this point forward. This will likely mean you have to cut back on spending, but it could help ensure you remain comfortable throughout your retirement.

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This rule can be a useful starting point — and 61% of financial advisors use it, according to research from PGIM DC Solutions. Still, it isn’t perfect, and each person’s situation is different, so you may find that a different withdrawal strategy works better for you.

For instance, you might want to use the percentage of portfolio strategy, where you withdraw a fixed percentage of your portfolio’s value each year. This means your income will fluctuate each year with the market value of your portfolio.

If you follow a fixed-dollar withdrawal strategy you’d withdraw a fixed dollar amount every year for a set time and then re-evaluate.

Optimizing your financial strategy

You want to make sure your portfolio asset allocation reflects your investing horizon and risk tolerance. You may want to consider speaking with a financial advisor about your situation. Many advisors today have modeling tools at their disposal that allow them to run personalized economic and life scenarios to help determine the best withdrawal strategy.

An advisor can also help with other retirement income withdrawal considerations, such as the amount of income you’ll be receiving from Social Security, your required minimum distributions from 401(k)s and IRAs, and how much to take — and when — from each type of account and asset class to be as tax-efficient as possible.

As you get serious about spending responsibly, you may want to reevaluate your lifestyle and earn some additional income. Creating a budget and tracking expenses can be valuable tools in determining where expenses could be cut back.

To earn additional income, you could take on a side hustle or part-time job. If major changes are needed, you may want to consider renting out a room, sharing a place with a friend or even moving to a less expensive area. Other options you might consider are accessing your home equity and borrowing against the cash value of a life insurance policy or even selling it.

There’s nothing wrong with taking advantage of your good health early in retirement to live a little. But if you get off track financially, acknowledging the issue and tackling it right away can help to ensure a comfortable retirement in your later years, too.

What to read next

• Financial aid only funds about 27% of US college expenses — but savvy parents are using this 3-minute move to cover 100% of those costs
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• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• 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

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

Many hard-working Americans dream of a retirement with no stress, no daily commute and no demanding boss. Life will surely be better with the freedom to do what you want, when you want… right?

Even if you have a decent nest egg of $1 million, there are potential downsides to retirement that you’ll want to consider before heading into your golden years. Here are three of them:

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1. The IRS doesn’t retire when you do

Most retirees believe their tax rate will drop substantially in retirement, but that’s not always the case. After all, if you aim to live off 80% of your current income and your retirement income is entirely taxable, you may end up paying close to what you did in your working years. Thankfully, there are ways to avoid this.

The key to paying less tax in retirement is to incorporate tax planning into your pre- and post-retirement planning. Unfortunately, most Americans don’t do this. A 2024 survey by Northwestern Mutual found that only 30% of Americans have a plan to minimize their taxes in retirement.

Prior to retiring, work with a financial advisor to invest in a mix of traditional and Roth 401(k)s and IRAs. The right mix will depend on your current and expected tax rates, among other factors.

Withdrawals from Roth accounts are generally tax-free in retirement. If you have a high deductible health plan (HDHP), consider contributing to a healthcare savings account (HSA), which will also have tax-advantaged withdrawals.

Also talk to an advisor about permanent life insurance policies such as universal, whole or variable life. These policies build a cash value that you may be able to borrow against to provide a source of tax-free income. Annuities are another insurance product that could be part of your tax planning.

Once retired, it’s important to have a clear, tax-conscious plan for when you’ll withdraw from your various accounts. Considerations include any employment income you’ll receive in your first year of retirement, when you decide to start collecting Social Security, which accounts have required minimum distributions, which income streams are tax advantaged and which are fully taxable.

Strategies that can be used once retired include making qualified charitable distributions (QCDs) or investing in a qualified longevity annuity contract (QLAC).

With multiple sources of income and different tax treatments, some retirees find their taxes are more complex to calculate than they were during their working years.

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2. Your health may not be what you hoped

Many of us have a vision of an active retirement — spending our days playing golf, gardening, volunteering or traveling.

However, most of us will experience declines in cardiovascular health, muscle mass, bone density and cognition as we age. About 44% of people 65 and older report having a disability and about one-third of those 85+ have some form of dementia.

Deteriorating health might force us to rethink how we’ll spend our retirement days, but it could also influence how we spend some of our retirement dollars. In all, a 65-year-old may need $165,000 in after-tax savings to cover healthcare expenses — and as you age these costs will make up an increasing portion of your total expenses.

Between ages 55 and 64, healthcare costs will make up about 7% of your expenses, but this rises to 12% between ages 65 and 74 and 16% when you’re 75 or older.

A person turning 65 today has about a 70% chance of needing long-term care during their remaining years and about 20% will require care for more than five years. The costs for this can range from an annual national median cost of $26,000 for adult day care to a median of $75,504 for homemaker services — and a whopping $127,750 per year for a private room in a nursing home.

Preparing for these costs starts before you retire and may even influence when you retire. For instance, if you retire before you qualify for Medicare, you’ll need to plan for bridging the gap in healthcare coverage. A financial planner can help you estimate your expected medical costs, including premiums for Medicare and other insurance and out-of-pocket expenses. Incorporate these costs into your planning and saving.

3. You might find retirement boring

A 2019 survey of British retirees found that the “average retiree grows bored after just one year.” This is partially why 20% of retirees surveyed by T. Rowe Price in 2022 were working either full- or part-time and another 7% were looking for work. While almost half (48%) of respondents were working for financial reasons, almost as many (43%) were working “for social and emotional benefits.”

It turns out that for some people retirement can be boring and lonely. It’s a big adjustment to move from the purpose, structure and social interaction that comes with working every day. Like much else around retirement, this can be eased with some prior planning.

Before retiring, take time to think about what’s important to you and how you could incorporate this into your golden years.

For example, that might mean working part-time in a similar field or volunteering for a cause you believe in, or maybe even going back to school and studying something you’re passionate about.

It may take some trial and error, but retiring well involves more than just planning your finances — it involves planning your new life.

What to read next

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• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• 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

Money doesn’t have to be complicated — sign up for the free Moneywise newsletter for actionable finance tips and news you can use. Join now.

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

It seems like a plotline out of a Hollywood blockbuster: thieves cutting through a concrete wall in the middle of the night to break into a neighboring jewelry store and steal more than $2 million in cash and jewels.

But that’s what happened in a brazen heist to family-owned 5 Star Jewelry and Watch Repair in Simi Valley, California, according to ABC7 Eyewitness News.

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“I feel bad because this was my life, my retirement … they got everything we had,” Jacob Youssef told KTLA5. At 71 years old, he was about to retire and had already left the business to his son Jonathan in 2015. “I cannot rebuild what I did in my lifetime.”

Since the store was priced out of insurance, they’ve now lost everything.

Why a family’s financial future is now at stake

A security camera shows one of the thieves crawling on his stomach through the neighboring store to avoid motion sensors and then spray-painting the camera lens.

“This wasn’t random,” Ted Mackrel, owner of Dr. Conkey’s Candy and Coffee told KABC. “They sawed a hole in our roof Sunday evening of Memorial Day weekend and managed to dodge all security systems.”

From there, the thieves dropped into the shop’s bathroom, shimmied along the floor and spent at least three hours cutting through a concrete wall and then a heavy safe.

Mackrel says the break-in was discovered on Monday morning when staff reported “a big hole in the wall leading to the jewelry store.”

According to Jacob and Jonathan, the thieves stole all of the gold and jewelry in the safe, as well as customers’ heirloom pieces — including a Rolex watch — that they were repairing at the time of the break-in.

But that wasn’t all they lost.

“It’s a hit,” Jonathan, who now runs the family business, told KTLA5. “It’s [my dad’s] retirement, my future. I have a young family and three daughters. It’s a lot to have to rebuild from, especially because my dad is 71. He can’t work forever.”

Since the incident, the local community has started a fundraiser to help the family get back on their feet.

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A risky strategy for retirement

This event reveals a critical vulnerability that many small business owners face: relying entirely on their business as their retirement plan.

Recent Gallup research found that most small business owners don’t have a succession plan, yet 74% of employer-business owners have plans to sell or transfer the ownership of their business for retirement.

An earlier 2025 survey by SCORE found that 34% of entrepreneurs have no retirement savings plan for themselves, with 18% planning to sell their business and use the money to fund their retirement. Another 21% have already used their retirement savings to invest in their business.

But this strategy comes with risks, including a lack of diversification, liquidity challenges and even the myth of the eventual sale.

“Of the approximately 77 million baby boomers in the U.S., an estimated 12 million have ownership in privately held businesses,” according to a whitepaper by Butcher Joseph & Co. and ITR Economics.

At the same time, about 10,000 baby boomers reach retirement age every day. But many are facing a similar problem, since “their would-be heirs would rather have the proceeds of a sale than take over the family business.”

Another problem, however, is that with an influx of baby boomers looking to sell, “we’re entering an environment where buyers have the upper hand,” according to Entrepreneur.

That may be good news for young entrepreneurs looking to buy an established business, but perhaps less so for small business owners dependent on the sale for their retirement.

How to save for retirement

If you’re self-employed or run a business, you may want to avoid putting all your retirement eggs in one basket.

If you’re self-employed and don’t have any employees, consider a solo 401(k) to beef up your own retirement savings. If you have employees, a Simplified Employee Pension (SEP) IRA can help both owners and their employees contribute toward their retirement.

You may also want to consider contributing to personal investment accounts separate from the business. The more diversified you are, the better.

And don’t forget about liquidity. If you can’t sell the business right away, what would that mean for your retirement goals?

It’s well worth consulting with a financial advisor as well as experts in succession planning to make sure you have an exit strategy that leaves you with options.

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

An Australian nurse had her life upended when scammers hijacked her phone number, drained her bank accounts and opened loans in her name — all within 24 hours.

“They were able to change my email, passwords,” Lee-Anne McLean told 9News. “They broke into my social media and they opened bank loans.”

And she doesn’t know how they did it. “I have security on my phone and my computer, so I’m not sure how they got all my personal information but I would really like to know.”

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How phone porting scams work

Phone porting is a legitimate process that lets you keep your phone number when switching carriers, and it’s typically protected by verification safeguards. But scammers have learned how to exploit it.

“To work around these protections, scammers will gather personal information about their target online, combing through social media posts, or purchasing information from cyber thieves or hackers,” according to the Federal Communications Commission (FCC).

If fraudsters have the right combination of personal information — which could include your address, birth date, Social Security number, PINs and passwords — they “may be able to con the victim’s phone company into believing the request to port out the number is from the authorized account holder,” says the FCC.

Once the fraudster convinces your phone company to transfer your number, your phone goes offline — and theirs lights up with your messages and calls, often allowing them to bypass safety measures like two-factor authentication.

“Once the scammer has access, they attempt to drain the victim’s bank accounts,” says the FCC. “In another variation, the scammers may attempt to sell or ransom back to the victim access to their social media accounts.”

This happened to Associated Press reporter Fatima Hussein in 2024, who woke up one morning to discover she didn’t have cell service. “Using my home Wi-Fi connection, I checked my email and discovered a notification that $20,000 was being transferred from my credit card to an unfamiliar Discover Bank account,” she explained in an article for the Financial Post.

Hussein said it took 10 days to get her number back from Cricket Wireless. “And that wasn’t until I told company representatives that I was writing a story about my experience,” she wrote in the Financial Post. During that time, fraudsters had accessed her account three times and transferred $19,000 from her credit card to the same unfamiliar account, even after freezing her credit and changing all her passwords. Bank of America was working to reverse the $19,000 transfer.

Neither McLean nor Hussein know how fraudsters got their information.

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How to protect yourself from phone porting scams

In 2024 alone, SIM swapping scams led to nearly $26 million in reported losses, according to the FBI — and the real figure may be even higher, since many victims don’t report.

• To minimize the risk, start by asking your wireless provider about port-out authorization. “Every major wireless has some sort of additional security for accounts or for port-out authorization that customers can set up, like a unique pin, or add verification questions, which will make it more difficult for someone to port out your phone,” according to the Better Business Bureau (BBB).
• Be on the lookout for phishing scams, which can lead to phone porting scams. A phishing scam takes place when fraudsters try to trick you into giving away personal information, typically by posing as a legitimate individual or business (such as an HR manager or your bank). They may contact you via text, email or phone.
• Never give away any personal information to a call or email from an unknown contact. Hang up (or ignore the email) and contact the individual or business with a trusted phone number or even an in-person visit.

“Typically, loss of service on your device — your phone going dark or only allowing 911 calls — is the first sign this has happened,” according to the FCC.

If this has happened to you, time is of the essence. Contact your phone company and bank, and place a fraud alert on your credit reports. Aside from filing a police report, you can also file a complaint with the FCC.

But for victims like McLean or Hussein, recovery can be a long, difficult process.

“My days are basically taken up by trying to prove who I am again,” McLean told 9News, “and piece by piece trying to put my life back together.”

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• 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

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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

Texas is facing a major water shortage. The state’s population is projected to grow 73% by 2070, while its water supply is expected to shrink by 18%. Already, aging infrastructure is leaking over 570,000 acre-feet of water each year, and officials warn that by 2030, Texas could face a severe shortage.

The state’s two main sources of water — groundwater in aquifers and surface water such as lakes, rivers and reservoirs — are susceptible to depletion from climate change.

To combat the state’s looming water shortage, Texas passed House Bill 49, a law that allows treated fracking wastewater to be used for agricultural and industrial purposes. But some farmers and environmental advocates are concerned that the law shields oil companies and landowners from liability if the treated wastewater causes contamination.

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Fracking wastewater may become Texas’ next water source

The water Texas wants to repurpose (known as “produced water”) comes from fracking, the process of injecting a high-pressure mix of water, chemicals and “proppants” like sand into underground rock to release oil and gas. For every barrel of oil extracted, wells can generate up to five barrels of this wastewater.

Once brought to the surface, produced water contains a complex mix of toxic chemicals, salts and other contaminants. Some companies say they now have the technology to treat it to a usable standard, but until recently, legal uncertainty kept them from investing in large-scale reuse.

Michael Lozano, who leads government affairs at the Permian Basin Petroleum Association, told The Texas Tribune that this new process could decrease reliance on fresh water, and that “without developing this field with legal certainty, Texas will miss out on millions of barrels a day of treated produced water.”

House Bill 49 aims to change that. Signed by Governor Greg Abbott and set to take effect September 1, 2025, the law allows treated produced water to be used for crops and industrial purposes. Supporters say the treated water could help stabilize supply without harming crops — if it’s properly cleaned.

“We need water,” Texas Agriculture Commissioner Sid Miller told WFAA 8 “We don’t really care what the source is as long as it’s good, clean water that we can grow crops with.”

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Some fear a repeat of a past disaster

Miller says “some farmers are open to the idea if the water is thoroughly cleaned and held to strict standards,” reports WFAA 8, but other farmers are worried they’ll face a similar experience as they’ve had with biosolids — sewage sludge that’s been treated to meet EPA regulations and then used as fertilizer.

Earlier this year, Johnson County declared a state of disaster after dangerous levels of “forever chemicals” were found in agricultural land and groundwater, leading to the deaths of fish and cattle.

According to county officials, these chemicals came from biosolids used as fertilizer in the area. Farmers are worried they may face a similar situation with fracking water, which can contain carcinogens.

Critics point to a controversial provision in House Bill 49: it limits liability for oil companies, haulers and landowners if contamination occurs, except in cases of gross negligence or violations of treatment laws. Some question how the state plans to regulate the chemicals in fracking water when it failed to do so in biosolids.

“We don’t even know all the chemicals that are used in oil and gas fracking because they’re proprietary,” said Dana Ames, a Johnson County landowner and advocate, in an interview with WFAA 8.

Some estimates have detected hundreds of chemicals in produced water, making it “complicated to treat,” and permits may not account for every contaminant, Nichole Saunders, senior attorney at the Environmental Defense Fund, told The Texas Tribune.

Dan Mueller, an engineer and produced water expert, told The Texas Tribune he doesn’t believe the treatment technologies have been tested thoroughly enough yet — and that without assurances, companies will need to be financially responsible for environmental issues.

“The responsibility to clean up any contamination that might occur is going to fall to the state, and ultimately that falls to the taxpayer, who will have to foot the bill,” he said. “That’s just not right.”

What to read next

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• Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
• How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
• 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

Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.

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