And it happens more often than you might think. A survey by the National Endowment for Financial Education found that about two in five Americans who have ever shared finances admit to some form of financial deception. And 85% of those respondents said it affected their relationship (2).But if one side begins making unilateral decisions, fissures can develop that leave the wronged partner feeling vulnerable.Research underscores the importance of transparency in managing joint finances. For example, a 2023 s ...

Core Insights - The article emphasizes the importance of having a retirement savings target that exceeds the average expectation of $1.26 million, particularly for individuals with annual expenses of $50,000, suggesting an additional $150,000 to $250,000 for flexibility in retirement timing [1][5]. Retirement Planning - Suze Orman advises against relying solely on 401(k) or IRA accounts due to their market dependency, recommending that individuals maintain three to five years' worth of living expenses in a liquid, low-risk account [2][7][8]. - The average American's perceived retirement savings need is $1.26 million, but many are not on track to meet this goal, highlighting the risks of market fluctuations when planning for retirement [5][23]. Emergency Fund and Cash Management - Building an emergency fund of three to six months' worth of expenses is recommended, with Orman suggesting a minimum of three to five years for added security [11][12]. - High-yield savings accounts are highlighted as effective tools for growing emergency funds, offering better interest rates than traditional accounts [12][14]. Investment Strategies - Diversification is crucial to mitigate risks associated with market volatility, with alternative assets like precious metals and real estate suggested as potential options [19][20]. - The article discusses the importance of starting retirement savings early, with specific monthly investment targets outlined for different age groups to reach the $1.26 million goal [23][24]. Financial Tools and Services - Automatic investment services, such as Acorns, are presented as convenient methods for consistent saving and investing, allowing users to round up purchases and set up recurring deposits [25][26].

First, calculate your monthly expenses and determine how much you can realistically save each month. Consider automatically transferring a percentage of each paycheck — such as 10% or 20% — rather than a fixed dollar amount. This approach scales your savings as your income fluctuates and helps build the habit of living below your means.Setting up automatic transfers from your checking to your savings account each payday removes the temptation to spend money before saving it. This “pay yourself first” approa ...

If you have your retirement savings in a traditional account, as opposed to a Roth, you should know that you can't leave your money sitting there forever. At either age 73 or 75, depending on your year of birth, the IRS is going to start mandating that you take yearly withdrawals known as required minimum distributions, or RMDs. RMDs can be a pain if you don't have an obvious use for the money, since they count as taxable income. But rather than let your 2026 RMD be a source of aggravation, it pays to fi ...

For workers who are used to receiving their paycheck every other week, the calendar is aligned in January to give some biweekly wage earners “bonus” third paychecks during the year. For 2026, the bonus months are either January and July (if the first paycheck was paid on Jan. 2), or May and October (if the first paycheck was paid on Jan. 9). Having an extra paycheck in a month can help you reach your financial goals more quickly. You can use the money to: Or you can apply this extra paycheck towards mu ...

Core Insights - The article emphasizes the importance of financial preparedness before making a career transition, particularly for those considering entrepreneurship or freelancing [1][2]. Financial Non-Negotiables - Individuals should establish "non-negotiables" in personal finance before quitting their jobs, which includes having a clear plan for income generation [3][4]. - Proof of concept is essential; income should already be coming in, even if it is inconsistent, rather than relying on uncertain future funding [4]. Runway and Revenue - Two critical components for a successful transition are runway and revenue. Runway refers to cash savings or alternative income sources that provide time, while revenue indicates validated income streams [5]. - An emergency fund of at least six months of living expenses is recommended to cushion against unpredictable income [5]. - It is crucial to clear high-interest consumer debt, as it can hinder financial stability during a career change [5]. - A thorough understanding of monthly expenses is necessary, distinguishing between fixed and optional costs [5].

Core Insights - The article emphasizes the importance of wisely using a year-end bonus, suggesting that it should not be solely spent on luxury items but rather allocated towards financial priorities for long-term benefits [2][4][6]. Financial Priorities - A recommended approach is to allocate 10-25% of the bonus for personal splurges while directing the remainder towards financial goals [5]. - For example, with a $2,000 bonus, suggested allocations include $200 for a holiday meal, $500 for an emergency fund, $900 for credit card debt, and $400 for retirement savings [7][10]. Long-term Growth - The article advocates for investing the bonus in ways that promote long-term financial growth, rather than simply depositing it without consideration of interest rates [9]. - Building momentum towards financial goals, even if not fully achieved with the bonus, is highlighted as beneficial [6].

Core Insights - The article emphasizes the importance of saving money as a top financial priority for Americans in 2026, with various strategies suggested to achieve this goal [6][7]. Savings Strategies - High-yield savings accounts are recommended for building a general savings nest egg, particularly online-only accounts that offer higher interest rates and limit access to funds, encouraging accumulation [2][4]. - Different savings accounts are suitable for specific goals, such as health savings accounts (HSAs) for healthcare expenses or individual retirement accounts (IRAs) for retirement [3]. Financial Resolutions - A survey by Vanguard indicates that 84% of Americans prioritize saving money and building an emergency fund for the upcoming year, despite 75% not achieving their 2025 financial resolutions [5]. - The article suggests that writing down savings goals and tracking them can enhance focus and motivation [7]. Emergency Fund - Establishing an easily accessible emergency fund is crucial, with recommendations to save enough to cover 3 to 6 months of living expenses, using accounts that allow quick transfers [8][9]. Budgeting - Creating and adhering to a budget is essential for supporting savings and financial goals, with methods like the 50/30/20 rule proposed for structuring spending [10][11]. Debt Management - Various strategies exist for debt repayment, including the snowball and avalanche methods, as well as the SMART strategy for setting specific, measurable goals [13][14]. Financial Organization - Streamlining finances by eliminating unused subscriptions, consolidating accounts, and organizing charitable giving can simplify financial management [16][17]. Future Financial Goals - The article encourages individuals to envision long-term financial dreams, such as buying a house or starting a business, and to take incremental steps towards these goals [18][19].

CocoSan / Getty Images There are several strategies you can use to recession-proof your finances, from budgeting to diversifying your portfolio. Key Takeaways Stay in control of your finances by creating a budget and adjusting it as needed. Build a healthy emergency fund, which is crucial to avoiding high-interest debt in the event of an unexpected expense. Diversify your investments across stocks, bonds, and other assets to mitigate risk in the event of an economic downturn. Develop multiple incom ...

Core Insights - The article emphasizes the importance of financial management strategies proposed by Dave Ramsey, particularly focusing on debt elimination and the establishment of an emergency fund [1][4][18] Debt Management - Ramsey advocates for paying off all debts except for the mortgage, suggesting that once debt-free, individuals should avoid borrowing again [1][6] - The article highlights the negative impact of debt on financial flexibility and the necessity of making sacrifices to pay it off [6][8] - There is a disagreement regarding the early payoff of low-interest mortgage debt, which Ramsey suggests, as it may not be financially beneficial [5][7] Emergency Fund - Establishing an emergency fund is prioritized, with Ramsey recommending a starter fund of $1,000 and a full fund of three to six months of living expenses once debt-free [4][3] - The emergency fund serves as a financial safety net, preventing individuals from falling back into debt during unforeseen circumstances [2][3] Budgeting - Ramsey promotes living on a budget, specifically a $0-based budget where every dollar is allocated to spending or saving [14][17] - The article acknowledges that while the $0-based budget may not suit everyone, the importance of conscious spending and budgeting is crucial for financial success [15][17] Car Financing - Leasing cars is discouraged, with the article agreeing that it is an expensive way to acquire a vehicle [9][10] - The recommendation is to purchase affordable used cars and save for future purchases rather than taking on new debt [11][12]