By Bernadette Joy, Bankrate.com

“Renting is throwing money away.” Has anyone ever told you this? Well, I’m here to say: It’s bad financial advice.

My husband and I have owned four different homes in three cities since 2010. If I wanted to, I could buy a house in cash today. But for the last three years, I’ve chosen to rent instead — and my net worth has grown by leaps and bounds because of that choice, not in spite of it.

This is always a hot topic, especially because renting challenges the traditional rhetoric that homeownership is the ultimate path to wealth. And I get it — owning a home is part of the “American Dream.” But if it doesn’t lead to financial freedom, homeownership may be more like a nightmare.

Let me show you how renting, when done intentionally, can actually make you richer.

Renting avoids the hidden costs of homeownership

When you own a home, you’re not just paying the mortgage — you’re also responsible for home maintenance, property taxes and insurance. In fact, Bankrate’s 2025 Hidden Costs of Homeownership Study found that the average annual cost of owning and maintaining a single-family home is more than $21,000.

Now, you’ll incur some of these costs when renting, too. Unless your rental unit includes utilities and internet, you’re probably going to have to pay out of pocket. You’ll probably pay less in electricity than you would in a large, single-family home, but for the sake of argument, let’s take these average costs at face value.

Omitting the expenses you’ll still have when renting, homeownership costs an average of $15,391 — that’s almost $1,300 you could free up each month.

While there aren’t any states that require renters insurance, most landlords have a provision in their rental contracts requiring this form of coverage. While typically less expensive than homeowners insurance, renters insurance is another cost to factor into your calculations.

And don’t forget about mortgage interest

My clients are always shocked when I have them review the amortization table for their 30-year mortgage. In the early years of your mortgage, a large percentage of your monthly payment goes toward interest. You’re not really building equity in the first few years of a mortgage — you’re mostly paying interest.

Let’s say you borrowed a $420,000 mortgage. You qualified for a 6.75 percent mortgage rate on a 30-year term. Your monthly payment is $2,724.

Of your first mortgage payment, only $362 pays down the principal balance — a whopping $2,363 goes toward interest. The balance does shift over time, and by the end of your 30-year term, the bulk of your payment goes toward the principal. But how likely is it that you’ll see the mortgage through to the bitter end, without selling or refinancing (and starting the clock all over again)?

I’ve helped five clients make the decision to sell their homes in 2025, and none of them lived there longer than a decade. So much of their money has gone to interest, and they won’t get much equity in return.

After five years of dutifully paying $2,724 every month, you’ve only gained about $25,000 in home equity. Meanwhile, your mortgage servicer will have made nearly $138,000 from your loan interest. Your five years’ worth of mortgage payments cost you $163,440, and in return, you got $25,000 in equity. Hardly seems worth it.

Rather than paying $15,000 per year in homeownership costs and vast sums of mortgage interest, I pay my rent. Sure, I won’t get a return on that money, but more cash stays in my pocket — cash I can put toward investments. Use a mortgage calculator to take a look at your amortization table and crunch the numbers for yourself.

Renting frees up capital for wealth-building

“Real estate always appreciates in value.” This one’s a myth — just ask anyone who sold a home during the 2008 financial crisis. My husband and I paid $10,000 out of pocket to sell his home at the time.

Yes, real estate can appreciate, but it’s also highly market- and location-dependent. In the past three years, the investments I’ve made in the stock market and my financial education business have significantly outpaced the return I would’ve made on a home in my local market — and with much less headache.

Unfortunately, several of my clients bought their homes at the height of the pandemic boom and are now seeing their home values decline from their peaks.

In today’s economy, renting is increasingly the more affordable option.

According to those numbers, you could save more than $9,000 per year by renting. That money could go a long way for many Americans, and even further if you reallocate that money into wealth-building assets.

After selling my home and returning to renting, I took the proceeds of the sale and invested in growing my business — that cash injection allowed me to surpass my first $1 million in revenue. In the time since, my husband and I have also contributed the maximum amount to our 401(k)s and individual retirement accounts (IRAs), allowing us to pursue early retirement.

When I transitioned from homeownership to renting, I used the proceeds from my home sale and invested in low-risk, interest-bearing accounts, like high-yield savings accounts, money market accounts and certificates of deposit (CDs). This passive income has covered my rent and other living expenses.

I have more money working for me as a renter than I did as a homeowner.

Renting can offer new social networks and income opportunities

Some of my older coaching clients tend to wrongly believe that renting equates to a decrease in quality of life. I’ve been happy to dispel that myth when they comment on the dance, improv and travel that my renting lifestyle accommodates.

I live in a one-bedroom rental in a walkable neighborhood filled with restaurants, music, theater and fitness. Post-COVID apartment buildings often feature co-working spaces, gyms and even social events that allow me to meet people from all walks of life. I felt a lot more isolated in the suburb where I used to live, which was more homogeneous, less active, and farther away from cultural events.

I’ve also been able to find more side hustles than when I lived on the outskirts, like teaching financial literacy classes or dog walking and babysitting for neighbors in my building.

The combination of downsizing and renting has also allowed me to pick up and move quickly to capitalize on potential business or job opportunities in other cities. I can afford global travel with business partners using the money I previously spent on lawn care and home DIY projects. I’ve expanded my social and professional networks and spend more time doing things that bring me joy.

Why renting can be strategic

According to Bankrate’s 2025 Emergency Savings Report, fewer than half of U.S. adults have enough emergency savings to cover three months of expenses, and about a quarter have no emergency savings at all. When you don’t have money set aside for a rainy day, it’s especially important to have tight control over your monthly spending — predictable monthly payments are key.

A fixed-rate mortgage may seem stable, but property taxes can always go up. Insurance premiums can rise, and maintenance is always more expensive than you think. Avoiding surprise repairs to water heaters, HVAC systems or roofing can also decrease the anxiety of not having enough cash savings on hand, especially when those repairs cost thousands of dollars.

Your next steps

• What expenses will actually help me build the life I want?
• Do I want a house in the suburbs because I believe it’s what’s expected of me?
• Could my money be better spent elsewhere?
• If I already own a home, have I considered the real-world costs associated with my mortgage, maintenance and other housing costs?
• How do my homeownership costs compare to rentals in my area?

Final thoughts: Owning a home can be great — if it fits your financial plan

As a first-generation American, I felt the weight of my family’s expectation to live out the American Dream — after all, they emigrated here so I could realize it. But I’m living proof that renting isn’t a step back, nor should you feel any shame for choosing to rent.

It’s been a strategic move that’s made me richer — financially, mentally, and emotionally.

Think of rent the same way you think of a gym membership or software subscription — it’s a monthly cost that may support the lifestyle you want. It’s not “throwing money away.” It’s buying peace of mind, freedom of movement and time to grow wealth in other ways.

For me, real wealth isn’t found in square footage. It’s in the daily opportunity to move and live freely according to what aligns with my own version of the American Dream.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

By Brian Baker, CFA, Bankrate.com

Bitcoin mining is the process of creating new bitcoins by solving extremely complicated math problems that verify transactions in the currency. When a bitcoin is successfully mined, the miner receives a predetermined amount of Bitcoin.

Bitcoin is one of the most popular types of cryptocurrencies, which are digital mediums of exchange that exist solely online. Bitcoin runs on a decentralized computer network, or distributed ledger, that tracks transactions in the cryptocurrency. When computers on the network verify and process transactions, new bitcoins are created, or mined. These networked computers, or miners, process the transaction in exchange for a payment in Bitcoin.

As the prices of cryptocurrencies and Bitcoin in particular have skyrocketed in recent years, it’s understandable that interest in mining has picked up as well. A miner currently earns 3.125 Bitcoin (about $334,375 as of mid-June 2025) for successfully validating a new block on the Bitcoin blockchain. But for most people, the prospects for Bitcoin mining are not good due to its complex nature and high costs.

Here are the basics of how Bitcoin mining works and some key risks to be aware of.

How Bitcoin mining works

Bitcoin is powered by blockchain, which is the technology behind many cryptocurrencies. A blockchain is a decentralized ledger of all the transactions across a network. Groups of approved transactions together form a block and are joined by computers within the network (called miners) to create a chain. Think of it as a long public record that functions almost like a long-running receipt. Bitcoin mining is the process of adding a block to the chain.

Bitcoin miners pick transactions from a group of unconfirmed transactions, called a mempool, to form a block on the blockchain. Before they can add the block securely to the blockchain, miners must solve what’s called a proof-of-work puzzle by guessing a number (also called a nonce). This number is combined with the block’s data and processed through a function called SHA-256.

The ultimate goal: create a block hash, which is a code with enough leading zeros to be less than, or equal to, the network’s target hash. The target hash is what determines how difficult the puzzle is to solve.

Target hash example: 0000000000000000ffff00000000000000000000000000000000000000000000

Block hash example: 0000000000000000057e29f1b57c1a9d5b90a6b7f1b4f0c9e2b0a1d3e4f5c6d7

Remember the block hash must be less than or equal to the target hash. Think of it like a dice game where the only way to win is if you roll a number smaller than or equal to a some number you’re given at the beginning. That number is made mostly of zeros, so you’d need a really insane and rare roll — a hash with tons of zeros in front of it — to win. In this example, the target hash’s “ffff” represents numbers that are non-zero and the block hash is less than the target hash, therefore solving the puzzle.

If you’re wondering whether this process requires a ton of computational power, you’re right. Miners use extremely powerful computers, called ASICs, to make billions — or trillions — of guesses about which nonces could work. One computer can cost up to $10,000. ASICs also consume huge amounts of electricity, which has drawn criticism from environmental groups and limits the profitability of miners. Technically, though, you could mine Bitcoin with, say, a MacBook Pro, but unfortunately you won’t get very far because there’s not enough computing power.

If a miner is able to successfully add a block to the blockchain, they will receive 3.125 bitcoins. The reward amount is cut in half roughly every four years, or every 210,000 blocks. As of mid-June 2025, Bitcoin traded at around $107,000, making 3.125 bitcoins worth $334,375.

Risks of Bitcoin mining

• Regulation: Very few governments have embraced cryptocurrencies such as Bitcoin, and many are more likely to view them skeptically because the currencies operate outside government control. There is always the risk that governments could outlaw the mining of Bitcoin or cryptocurrencies altogether as China did in 2021, citing financial risks and increased speculative trading.
• Price volatility: Bitcoin’s price has fluctuated widely since it was introduced in 2009. Since just January 2023, Bitcoin has at times traded for less than $18,000 and more than $110,000 recently. This kind of volatility makes it difficult for miners to know if their reward will outweigh the high costs of mining.

How to start Bitcoin mining

Here are the basic components you’ll need to start mining Bitcoin.

This is where any Bitcoin you earn as a result of your mining efforts will be stored. A wallet is an encrypted online account that allows you to store, transfer and accept Bitcoin or other cryptocurrencies. Companies such as Coinbase, Trezor and Exodus all offer wallet options for cryptocurrency.

There are a number of different providers of mining software, many of which are free to download and can run on Windows and Mac computers. Once the software is connected to the necessary hardware, you’ll be able to mine Bitcoin.

The most cost-prohibitive aspect of Bitcoin mining involves the hardware. You’ll need a powerful computer that uses an enormous amount of electricity in order to successfully mine Bitcoin. It’s not uncommon for the hardware costs to run around $10,000 or more.

Bitcoin mining statistics

• Creating Bitcoin consumes 184.4 terawatt-hours of electricity each year, more than is used by Poland or Egypt, according to the Cambridge Bitcoin Electricity Consumption Index.
• The price of Bitcoin has been extremely volatile over time. In 2020, it traded as low as $4,107 and reached an all-time high of $111,970 in May 2025. As of mid-June, it traded around $107,000.
• The United States (37.8%), Mainland China (21.1%) and Kazakhstan (13.2%) were the largest bitcoin miners as of December 2021, according to the Cambridge Electricity Consumption Index.

Taxes on Bitcoin mining

It’s important to remember the impact that taxes can have on Bitcoin mining. The IRS has been looking to crack down on owners and traders of cryptocurrencies as the asset prices have ballooned in recent years. Here are the key tax considerations to keep in mind for Bitcoin mining.

• Are you a business? If Bitcoin mining is your business, you may be able to deduct expenses you incur for tax purposes. Revenue would be the value of the bitcoins you earn. But if mining is a hobby for you, it’s not likely you’ll be able to deduct expenses.
• Mined bitcoin is income. If you’re successfully able to mine Bitcoin or other cryptocurrencies, the fair market value of the currencies at the time of receipt will be taxed at ordinary income rates.
• Capital gains. If you sell bitcoins at a price above where you received them, that qualifies as a capital gain, which would be taxed the same way it would for traditional assets such as stocks or bonds.

Check out Bankrate’s cryptocurrency tax guide to learn about basic tax rules for Bitcoin, Ethereum and more.

Is Bitcoin mining profitable?

It depends. Even if Bitcoin miners are successful, it’s not clear that their efforts will end up being profitable due to the high upfront costs of equipment and the ongoing electricity costs.

Worldwide, bitcoin mining uses more electricity than Poland, a nation of 36.7 million people, according to the University of Cambridge’s Bitcoin Electricity Consumption Index.

As the difficulty and complexity of Bitcoin mining has increased, the computing power required has also gone up. Bitcoin mining consumes about 184.4 terawatt-hours of electricity each year, more than most countries, according to the Cambridge index.

One way to share some of the high costs of mining is by joining a mining pool. Pools allow miners to share resources and add more capability, but shared resources mean shared rewards, so the potential payout is less when working through a pool. The volatility of Bitcoin’s price also makes it difficult to know exactly how much you’re working for.

Bottom line

While Bitcoin mining sounds appealing, the reality is that it’s difficult and expensive to actually do profitably. The extreme volatility of Bitcoin’s price adds more uncertainty to the equation.

Keep in mind that Bitcoin itself is a speculative asset with no intrinsic value, which means it won’t produce anything for its owner and isn’t pegged to something like gold. Your return is based on selling it to someone else for a higher price, and that price may not be high enough for you to turn a profit.

(Bankrate’s Logan Jacoby contributed to an update of this article.)

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

By CORA LEWIS

NEW YORK (AP) — Hundreds of millions of ‘Buy Now, Pay Later’ loans will soon affect credit scores for millions of Americans who use the loans to buy clothing, furniture, concert tickets, and takeout.

Scoring company FICO said Monday that it is rolling out a new model that factors the short-term loans into their consumer scores. A majority of lenders use FICO scores to determine a borrower’s credit worthiness. Previously, the loans had been excluded, though Buy Now, Pay Later company Affirm began voluntarily reporting pay-in-four loans to Experian, a separate credit bureau, in April.

The new FICO scores will be available beginning in the fall, as an option for lenders to increase visibility into consumers’ repayment behavior, the company said. Still, not all Buy Now, Pay Later companies share their data with the credit bureaus, and not all lenders will opt in to using the new models, so widespread adoption could take time, according to Adam Rust, director of financial services at the nonprofit Consumer Federation of America.

Here’s what to know.

Why haven’t the loans appeared in credit scores previously?

Typically, when using Buy Now, Pay Later loans, consumers pay for a given purchase in four installments over six weeks, in a model more similar to layaway than to a traditional credit card. The loans are marketed as zero-interest, and most require no credit check or only a soft credit check.

The main three credit reporting bureaus, Experian, TransUnion, and Equifax, haven’t yet incorporated a standard way of including these new financial products in their reports, since they don’t adhere to existing models of lending and repayment. FICO, the score of the Fair Isaac Corporation, uses data from the bureaus to calculate its own credit score, and is independently choosing to pilot a new score that takes the loans into account.

Why is this important?

BNPL providers promote the plans as safer alternatives to credit cards, while consumer advocates warn about “loan stacking,” in which consumers take on many loans at once across several companies. So far, there’s been little visibility into this practice in the industry, and the opacity has led to warnings of “phantom debt” that could mask the health of the consumer.

In a statement, FICO said that their new credit score model is accounting for the growing significance of the loans in the U.S. credit ecosystem.

“Buy Now, Pay Later loans are playing an increasingly important role in consumers’ financial lives,” said Julie May, vice president and general manager of business-to-business scores at FICO. “We’re enabling lenders to more accurately evaluate credit readiness, especially for consumers whose first credit experience is through BNPL products.”

What does FICO hope to achieve?

FICO said the new model will responsibly expand access to credit. Many users of BNPL loans are younger consumers and consumers who may not have good or lengthy credit histories. In a joint study with Affirm, FICO trained its new scores on a sample of more than 500,000 BNPL borrowers and found that consumers with five or more loans typically saw their scores increase or remain stable under the new model.

For consumers who pay back their BNPL loans in a timely way, the new credit scoring model could help them improve their credit scores, increasing access to mortgages, car loans, and apartment rentals. Currently, the loans don’t typically contribute directly to improved scores, though missed payments can hurt or ding a score.

Since March, credit scores have declined steeply for millions, as student loan payments resume and many student borrowers find themselves unable to make regular payments on their federal student loans.

What are the risks and concerns?

Nadine Chabrier, senior policy and litigation counsel at the Center for Responsible Lending, said her main concern is that the integration of the loans into a score could have unexpected negative effects on people who are already credit-restrained.

“There isn’t a lot of information out there about how integrating BNPL into credit scoring will work out,” Chabrier said. “FICO simulated the effect on credit scoring through a study. They saw that some users’ scores increased. But if you factor in something that, last week, didn’t affect your credit, and this week, it does, without having very much information about the modeling, it’s a little hard to tell what the consequences will be.”

Chabrier cited research that’s shown that many BNPL users have revolving credit card balances, lower credit scores, delinquencies, and existing debt. Women of color are also more likely to use the loans, she said.

“This is a credit vulnerable community,” said Chabrier.

Will consumers see immediate effects?

Rust, of the Consumer Federation of America, said he doesn’t expect this to be a game-changer for consumers who already have a credit profile.

“Are we at a point where using BNPL loans will dramatically alter your credit profile? Probably not,” he said. “I think it’s important that people have reasonable expectations.”

Rust said the average BNPL loan is for $135, and that repaying such small loans, even consistently, might not result in changes to a credit score that would significantly move the needle.

“It’s not about going from 620 to 624. It’s about going from 620 to 780,” he said, referring to the kind of credit score jumps that affect one’s credit card offers, interest rates on loans, and the like.

Still, Rust said that increased transparency around the loans could create a more accurate picture of a consumer’s debts, which could improve accurate underwriting and keep consumers from over-extending themselves.

“This addresses the problem of ‘phantom debt,’ and that’s a good thing,” he said. “Because it could be something that keeps people from getting too deeply into debt they can’t afford.”

The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

By Lauren Schwahn, NerdWallet

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

No, we’re not asking your name. And we promise we’re not trying to offend you.

HENRY isn’t an insult; it’s a nickname given to a certain demographic in the personal finance world. If you earn a decent income, but feel like you aren’t building enough wealth, you might be a HENRY.

What is a HENRY?

HENRY is an acronym that stands for “High Earner, Not Rich Yet.” But what does it mean to be high earning? The definition varies depending on who you ask.

We sifted through Reddit forums to get a pulse check on what users say about HENRYs. People post anonymously, so we cannot confirm their individual experiences or circumstances.

Over on Reddit in the r/HENRYfinance subreddit, HENRYs are defined as “people who earn high incomes, usually between $250,000 to $500,000, but have not saved or invested enough to be considered rich.”

Net worth is another key number to consider.

Trevor Ausen, a certified financial planner in Minneapolis, Minnesota, says that HENRYs often have “somewhere between negative net worth, thanks to student loans or early career costs, to around $1 million in assets.”

Having an income or net worth above these figures tips the scales toward “rich.”

Who is the typical HENRY?

HENRYs are often business professionals, doctors, lawyers or tech employees with equity compensation, Ausen says.

Many live in places like New York or the Bay Area, he adds, where it can be hard to accumulate wealth even with a high salary due to the high cost of living. They’re usually in their 20s, 30s or 40s.

In some cases, HENRYs are also the first in their families to earn a higher income. That can come with added pressure to provide financial support for relatives and create generational wealth.

How do you know if you’re a HENRY?

Now that you know what a HENRY is, let’s see if you fit the bill.

“If you’re earning well but still feel like you’re just getting by financially, you might be a HENRY,” Flavio Landivar, a CFP in Miami, Florida, said in an email interview.

You might be a HENRY if you:

• Earn an above-average income (typically in the low to mid six-figure range).
• Live in a high-cost area.
• Spend most of your income on costs such as housing, student loans, child care and discretionary expenses.
• Don’t feel financially secure.

But not all HENRYs are the same.

While many have trouble building wealth because student loans or living expenses eat up their income, others are saving aggressively, Ausen says.

“They’ve only been high earning for a short amount of time, and just have not had the time to really build up those assets and save enough where they can be considered rich,” he says.

Ausen says his HENRY clients generally have too much cash. After maxing out their 401(k)s or other retirement accounts, they aren’t putting their extra money to work in an investment account.

If you’re parking a lot of cash in a general savings or checking account, that’s a sign you might be a HENRY.

“While there certainly is an argument for how much emergency fund, essentially, someone should have, after a certain point, it starts to become not as efficient as it could be,” Ausen says.

What do HENRYs care about?

Like most people, HENRYs want more money and greater financial freedom. Online discussions in r/HENRYfinance and other forums often focus on lifestyle creep, career growth, investment options and strategies for minimizing tax burdens.

HENRYs are also looking for quick guidance and reassurance that they’re on the right track.

“These young professionals may be settling into their careers, gaining responsibilities and have less leisure time than they used to,” Yesenia Realejo, a CFP with Tobias Financial Advisors in Plantation, Florida, said in an email interview.

“They may be starting families, buying homes, saving for their children’s college. With so much on their plates, they may find that they’re saving, but have no planned financial direction.”

Is being a HENRY good or bad?

If you’re a HENRY, you may feel stuck. It might seem like you aren’t making enough progress toward your financial goals.

But it’s important to emphasize the “Y” in HENRY. You’re not rich yet — that doesn’t mean you’ll never be rich.

“With smart planning, managing expenses and focusing on long-term goals, HENRYs have a great opportunity to build real wealth down the road,” Landivar said.

“Without that focus, though, it’s easy to stay stuck living paycheck to paycheck despite a high income.”

Start by making, or revisiting, your financial plan. If you’re not sure where to begin, consider getting help from a financial advisor. Getting rich may happen sooner than you think.

More From NerdWallet

• Practical Ways to Tackle Overspending
• Where to Park Cash if You’re Worried about the Stock Market
• Here’s How I Made $360 Selling Stuff on Facebook Marketplace

Lauren Schwahn writes for NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn.

The article Are You a HENRY? originally appeared on NerdWallet.

Both my father and father-in-law were small business owners. Small businesses are the backbone of this nation. Not only do the owners have to be experts in their chosen field, they must also wear many other hats. They’re the HR department, the bookkeepers, the salespeople and PR department, all the while keeping a watchful eye on a multitude of regulations and red tape.

To this day I can hear my father pounding away at his adding machine, eventually tearing away a foot-long tape, then carefully reviewing the list. At the time I didn’t understand his occasional frustration, but I eventually realized it was because some days ended up in the red.

I was not as familiar with the inner workings of my father-in-law’s business, but I did observe that, as with my father, he seemed to have a multitude of duties and deadlines on his plate. Both were juggling a lot of balls on any given day and were extremely dedicated and hard working. Lessons learned.

No matter how busy, both men knew the importance of carving out time for their families. My dad rarely missed any little league games, or anything remotely important to a child. I’ve striven to carry their examples with me throughout my life, and I believe I’ve successfully passed their strengths and values on to my sons.

The days of those old adding machines spinning out small rolls of paper are long gone. Laptops, iPads and iPhones are far more powerful and efficient than our fathers could ever imagine. Being a small business owner today is much different than it was years ago. But even as technology explodes, the life lessons remain constant and valuable.

Many of the lessons I learned from my father and passed on have great financial relevance. Here are some of the lessons I’m confident my sons will pass on to their children.

Listen carefully. Whether it’s school or work, be attentive and respectful. Listening is a financial trait because far too many people have financial issues because they don’t listen to good advice.

Work hard. That doesn’t necessarily mean putting in more hours than everyone else. Just give it your very best effort when you’re assigned a task. Working smarter is more important than just putting in long hours. Take pride in your work.

Have a piggy bank. Sure, it’s a bit more difficult today because so many people use credit cards. I think the convenience of plastic instead of cash is one reason so many have financial issues. That being said, teach your children the value of regular saving. They need to understand the importance of paying themselves first.

Manage your debt. Financially, there’s nothing worse than carrying the burden of credit card debt. It’s not only a financial drain; it can also create serious mental strain. Money issues are the root of far too many divorces.

Be honest. The most important thing I learned from my father transcends finances. Honesty is important in every part of your life, but it’s front and center in financial transactions. Simply stated, do the right thing. Not only with your money, but in all aspects of your life.

Happy Father’s Day to all. Hopefully, you also have fond memories and have passed on some valuable lessons from your dad.

Email your questions to kenmorris@lifetimeplanning.com

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. https://kestrafinancial.com/disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.

A Reddit user recently asked for advice on ways to stop thinking about money nonstop.

It’s hard, the user explained, to avoid fixating on personal finances. Comparing yourself to others can be tempting, even though doing so doesn’t feel good or productive.

Other users jumped in to offer tips, such as talking to a therapist, finding a new hobby, scaling back on social media and saving enough for a sufficient safety net.

Financial experts say focusing on your own financial plan is the best way to avoid thinking too much about what other people might be doing.

Make a plan

“Something about having a plan in place takes a lot of the stress off,” says Dwayne Reinike, a certified financial planner and founder of Valiant Financial Planning in Kirkland, Washington.

Similar to how writing down everything on your to-do list can make it easier to sleep at night, he says creating a basic financial plan allows you to relax. That plan can include a budget, retirement goals and other savings targets.

You might hear that the markets are down or concerns about a coming recession, “but it’s OK, because you have a plan,” Reinike says.

Pick one goal to focus on

Picking one goal to focus on — such as saving up for a house or setting limits for spending — can give you a greater sense of control over your financial life, says Stephanie Loeffel, a CFP and founder of Ascend Financial in the Boston area.

If you don’t have a goal to guide you, she says, then it’s easy to bounce between different ideas based on the day’s news. If interest rates fall, you might wonder if you should buy a house. If the stock market fluctuates, you may question whether it’s time to shift your retirement investments.

She recommends zeroing in on what you can control: your own spending, saving and other financial habits.

“You take the emotion out of the equation and it’s easier to not obsess about the noise around you,” Loeffel says.

Designate a specific time to focus on money

Setting aside time at least once a year to map your financial plans can ease your mind the rest of the time.

Use that time to think about what you want to achieve with your money. You can also set short-term and long-term goals, says Reinike.

“If you have your emergency fund set up and on auto-deposit, then you can go a year or so without thinking about it,” he says. (You may want to conduct quick check-ins throughout the year to check for any errors.)

Similarly, a retirement savings account with automatic deposits from your paycheck doesn’t need to be constantly monitored.

If unexpected events pop up, such as a new baby or a job loss, then you can revisit those plans and adjust. Otherwise, you can maintain your current course.

“People tend to make changes when they’re really happy or really upset, and that’s not the time to make changes. It’s the time to stick with the plan you already established,” Reinike says.

Build up savings and pay off debt

Another way to gain more control over your finances is to double down on saving money and paying off debt, Loeffel says. Many of her clients are surprised about their expenses once they start tracking them.

Monitoring your cash flow for six months is a good place to start. Then, make adjustments to eventually achieve a goal of putting around 10% into savings. That can help build up an emergency fund.

“Once you have an emergency fund, you’re not as vulnerable,” Loeffel says.

That makes it easier to worry less about negative events that can hurt your finances.

“It takes away that emotional vulnerability because you have a cushion and you have control,” she says.

Similarly, paying off debt is something you can control. You can make a plan for paying off debt — perhaps using the avalanche or snowball method — then watch your progress as the weeks tick by, Loeffel says.

The avalanche method involves paying the debt with the highest interest rate first. The snowball method refers to building momentum by paying off the smallest debt balances first.

Avoid comparisons to others

“Compare yourself to the you of yesterday, not everyone else,” suggests Reinike.

Just as in sports, you should strive for a personal best — not necessarily doing better than others.

You really can’t compare your financial situation to others based on social media. Posts don’t tell the whole story or how people are funding their lifestyle, Reinikehe adds.

“Everyone’s journey is individualized.”

Reddit is an online forum where users share their thoughts in “threads” on various topics. The popular site includes plenty of discussion on financial subjects like saving and budgeting, so we sifted through Reddit forums to get a pulse check. People post anonymously, so we cannot confirm their individual experiences or circumstances.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article Asked on Reddit: How to Stop Obsessing About Money originally appeared on NerdWallet.

By Ariana Arghandewal, Bankrate.com

Credit cards are widely accepted in most parts of the world, which is great for those who want to maximize rewards on their trips abroad. Not only do many cards offer generous rewards on travel spending, but they also provide convenience and an added layer of protection in case your trip doesn’t go as planned.

Using a credit card is better than using cash in most cases. However, you may still encounter issues when attempting to use your credit card abroad, so make sure to plan accordingly.

Can I use my credit card abroad?

In most cases, yes! The country you’re visiting may have different banks, but many of the payment networks common in the U.S. are widely accepted around the globe. Some credit cards, most commonly travel credit cards, even have no foreign transaction fees and earn rewards on specific purchases worldwide, such as restaurants. This helps you save money and earn more in rewards when you travel.

However, it’s important to know that while your card can be used abroad, it doesn’t mean it will always work. If your card is worn down or tends to be a little faulty at home, it can be just as finicky outside the country. Or if your credit card issuer is unaware that you’re traveling, they may assume your identity is stolen and decline your purchases. Some payment networks are also less common abroad. Luckily, there are workarounds to a few of the most common issues you may come across.

Bankrate tip

See Bankrate’s Travel Toolkit for tips and insights to boost your savings and maximize your travel.

How to make sure your credit card works abroad

A handful of factors may prevent your credit card from working overseas. Most of them have simple solutions and require just a bit of advance planning.

—Use a widely accepted issuer. Visa and Mastercard are the most widely accepted credit card payment networks worldwide. While American Express and Discover can come in handy in many situations, you may want to bring a backup Visa or Mastercard while traveling abroad, just in case.

—Use chip and PIN cards or a digital wallet. In many countries around the world, chip and personal identification number (PIN) cards are the norm. These cards use a microchip and PIN to validate transactions, instead of a cardholder’s signature. Rather than swiping the magnetic stripe through the card reader, consumers insert the card into the machine and enter the PIN associated with the chip. If you have a card with a chip in your wallet, set a PIN so you don’t run into trouble using it abroad.

Digital wallets are also becoming the norm for storing credit cards, debit cards, and even boarding passes for your flight. They often lead to faster, more secured payments with a lower risk of being lost or stolen. So, it may be beneficial to set one up and add your card. This way, you can keep the physical card tucked away as a backup.

—Notify your bank of your travel plans. If you’ve booked any part of your trip on your credit card, notifying your bank isn’t usually required. If you did not use your credit card for any bookings, then providing advance notice of your travel plans reduces the odds of your bank declining your transactions abroad. Knowing that you’ll be in Paris for a week, your bank is less likely to reject your purchases at patisseries. They’ll know your credit card isn’t compromised — you’re just being a tourist.

Is it worthwhile to use a credit card abroad?

Yes, using your credit card abroad provides security and convenience that cash does not. You’ll potentially earn rewards on every purchase, which you can save and redeem toward future travel experiences. The items you buy may also be covered by purchase protection, giving you extra peace of mind. More importantly, you won’t have to carry large amounts of cash and worry about the security risk it poses.

While you should bring some cash for smaller purchases or in a city where it’s the main form of payment accepted, a credit card provides stronger protection and other added benefits.

Are there fees for using a credit card abroad?

You’ll encounter two types of fees when using a credit card abroad — foreign transaction fees and merchant fees. Foreign transaction fees are around 3% and can be avoided since many travel rewards cards waive them.

Merchant fees can include surcharges or convenience fees for using your card. These fees help to offset the merchant’s processing costs and can vary from 3% to 8%. These fees help offset the costs of the added protection you receive from a credit card.

Unfortunately, there isn’t much consumers can do about these fees. You can either pay the fee, use cash or shop somewhere else to get around them. Still, there is a small way to save some money when using your card.

If a merchant asks whether you want to pay in U.S. dollars or the local currency, always opt for the local currency. Your credit card issuer is likely to give you a much better conversion rate than the local business owner will.

Also, always opt out of dynamic currency conversion, which allows cardholders to handle transactions in their home currency when shopping or taking money from an ATM. While you may be able to know the actual price of your purchase, the additional fee often makes the purchase higher than it would be otherwise.

The bottom line

What you pack in your wallet matters as much as what you put in your carry-on when you travel abroad. You’ll want to bring one or more credit cards with a widely accepted payment network. Even better, bring one that offers purchase and travel protection, generous rewards and travel perks. You may encounter a few issues when using a credit card to pay for purchases, but there are workarounds. By following safe use practices, you won’t have to carry large sums of cash or worry about your transactions getting declined.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

The Trump administration recently announced a plan for steep port fees on Chinese-built vessels, which dominate global trade and are frequently in San Diego Bay.

The idea is to limit China’s dominance in the seas by making it more expensive to use their vessels and, in theory, push the nation’s importers into the arms of the comparatively small U.S. shipbuilding industry.

The new Chinese levies, which wouldn’t take effect until mid-October, could cost an importer roughly $150 a car, according to estimates from the Port of San Diego. There is concern from the shipping industry that the levies, on top of tariffs, could significantly impact global trade.

U.S. shipbuilding is practically nonexistent compared to China and others. Critics argue there is no way (at the moment) for the U.S. to catch up and the whole plan will just mean increased costs for consumers. President Donald Trump has argued it is vital for national security that America builds up its shipbuilding industry.

Question: Is the Chinese-built vessel levy proposal a good one?

Economists

Caroline Freund, UC San Diego School of Global Policy and Strategy

NO: It will act as yet another tax on the U.S. consumer without spurring investment in shipbuilding. Shipbuilding is a huge, complex endeavor and expanding capacity would take many years. Trump’s record of on-again, off-again tariffs means that this policy is unlikely to promote any new investment, since the levy could be gone tomorrow. Moreover, China would likely retaliate with a tax on U.S.-built aircraft, hurting the U.S. aerospace industry and its workers.

David Ely, San Diego State University

NO: The U.S. cannot quickly create the capacity to produce ships at a volume sufficient to replace Chinese-built vessels that are now docking at U.S. ports.  A levy imposed now would drive up transportation costs that will be passed onto consumers. Policies to incentivize capital investment in the U.S. shipbuilding industry, and grow the workforce, should be emphasized in the near term. The levies should be delayed until the restoration of the industry is underway.

Ray Major, economist

YES: The vessel levy is another tool in the tool box that the U.S. can use to encourage China and other countries to adopt a more fair trade policy. They can easily be removed when a trade deal is in place. The levy amounts to 0.00375% of the value of a $40,000 car.

Kelly Cunningham, San Diego Institute for Economic Research

NO: Attempts at micromanaging the economy are unproductive and detrimental. Top-down manipulation of shipping production will cause unintended consequences and dysfunction. Imposing complicated rules and tariffs for shipping goods and services makes trade more expensive and lessens productivity of all. Voluntary exchanges of “free trade” benefit all participants and facilitate the specialization and division of labor. Economic development is not zero-sum where one gains at the expense of others losing. Put “free” back into free trade.

Alan Gin, University of San Diego

NO: The economic infrastructure is not here for more shipbuilding in the U.S. One problem is that not enough steel is produced in this country. Another is that labor is more expensive here, and there is less desire to work in manufacturing. Those situations could improve in the future, but it would take a long time, and the U.S. is not likely to approach China’s shipbuilding capacity. In the meantime, consumers will be hurt as prices for products carried by Chinese ships will increase.

James Hamilton, UC San Diego

NO: It would be hard to find a business or consumer in America who would not be affected through the goods they try to produce, buy or sell by this policy. Any effects on U.S. shipbuilding would be years down the road. And the very long-term investments that are required to build more ships are difficult to influence with policies that come out of nowhere and may have changed by the time these words hit print.

Norm Miller, University of San Diego

YES: Nothing says “free market economy” like a special fee slapped on vessels built somewhere else. It’s a genius idea. Why compete by building better and bigger ships or planning ahead? Who needs cheaper shipping and global trade stability anyway? After all the tariffs, consumers and businesses will barely notice the extra costs. Of course, I’m sure China will just graciously accept the new levy with no retaliatory measures that could hurt the U.S. exporters. (Sarcasm noted).

Executives

Phil Blair, Manpower

NO: All tariffs and “port fees” will clearly increase the cost of goods for Americans. Both new expenses will be passed on directly to consumers. The U.S. shipbuilding industry is so expensive compared to the rest of the world due to very high wages compared to wages paid in other countries for equal skills. That spread in wages may be acceptable to Americans to encourage well paid jobs, but consumers need to know why certain industries in the U.S. cannot compete with other countries on price.

Gary London, London Moeder Advisors

NO: I am sympathetic to measures that are designed to reduce Chinese dominance across broad sectors. However, the more realistic approach would be policies that incentivize shipbuilding elsewhere across the globe. This is not different than the other tariff-led domestic manufacturing goals. The economics of manufacturing mostly don’t work here, primarily due to the cost (and shortage) of labor. Why don’t we spread more business to other nations rather than indiscriminately slap everyone with tariffs?

Austin Neudecker, Weave Growth

NO: A levy on Chinese-built vessels will raise costs for U.S. importers and consumers without offering any strategic benefit. China dominates shipbuilding due to infrastructure that our domestic producers abandoned decades ago. Rebuilding a competitive ship industry would take years, require major government subsidies and yield higher-cost products. Punitive fees will not change these fundamentals, they will further disrupt trade and shift demand to other low-cost countries, not revive U.S. shipbuilding.

Jamie Moraga, Franklin Revere

YES: If it’s being used as a negotiation tactic in the trade war. If not, while national security, stability, and local shipbuilding growth are important, adding levies to tariffs this year may not be wise. A measured approach is needed — too much too soon risks U.S. supply chain disruptions, higher costs, job losses, and higher prices. Rebuilding U.S. shipbuilding requires significant time and investment. Implemented too soon, new levies could do more harm than good without strong domestic infrastructure.

Chris Van Gorder, Scripps Health

NO: Like many of President Trump’s ideas, it could be very good as a long-term strategy, but not good as a short-term economic decision. It would take many years to build up our own ship construction capabilities and in the meantime, prices consumers pay now will be increased. Let’s develop a long-term strategic plan, not a short-term reaction that will not benefit the average person or business.

Bob Rauch, R.A. Rauch & Associates

YES: The levy aims to revive U.S. merchant shipbuilding, which has declined in recent decades. With China controlling more than 50% of global shipbuilding, the policy could encourage diversification and counter market abuses. While industry stakeholders worry about costs and trade disruptions, fees apply only to Chinese-linked or Chinese-built vessels. The long-term impact remains uncertain, but the policy signals a strategic shift toward reducing reliance on Chinese-built ships.

Have an idea for an Econometer question? Email me at phillip.molnar@sduniontribune.com. Follow me on Threads: @phillip020