From Yahoo Finance: 2025-03-29 19:01:00

Financial stress can weigh on your mind and affect every aspect of your life. Avoid making money moves you’ll regret, like carrying high-interest debt. Instead, focus on reducing consumer debt and investing in appreciating assets like retirement accounts and real estate to build wealth over time.

To increase savings, consider opening multiple retirement accounts like a traditional or Roth IRA. Saving in a Roth IRA offers tax benefits, with a contribution limit of $7,000 in 2025. Balancing spending on enjoying life and planning for the future is key to building wealth without sacrificing quality of life.

Be mindful of social media’s influence on spending habits, as impulse purchases can add up over time. Lack of a safety net for unexpected expenses can lead to debt. Aim to have two to three months worth of expenses saved in a separate account for emergencies like medical bills or home repairs.

Having an emergency fund in a high-yield savings account can protect you from financial curveballs and prevent you from dipping into retirement savings early. Avoid relying on credit cards or personal loans for emergencies, as they can cost you extra in penalties and taxes. Stay on track with building wealth by being prepared for unexpected expenses.



Read more at Yahoo Finance: 5 Money Moves You’ll Regret If You Want To Build Wealth in 2025