Table of Contents

• Which Data Are Susceptible to Privacy Breaches?
• #1 Insufficient Data Privacy Plans
• #2 Data Trading
• #3 Location Tracking
• #4 Dangers of Additional Devices
• #5 Insufficient Standard Operating Procedures 
• #6 Data Hoarding
• Why Is Data Privacy Worth It?
• How Should You Protect Your Data?
• Solve Your Data Privacy Issues With DataGrail

Businesses today face growing challenges in protecting personal data due to evolving privacy regulations, increasing consumer expectations, and complex data ecosystems.

Key issues include:

• Regulatory compliance: Navigating and keeping up with laws like GDPR, CCPA, and others is increasingly complex.
• Third-party risk: Companies often lack visibility into how vendors handle personal data.
• Consumer trust: Failing to protect privacy can damage reputation and customer loyalty.
• Data minimization: Collecting more data than necessary increases exposure and risk.
• Data subject requests (DSRs): Managing and responding to access and deletion requests is time-consuming without automation.

Data privacy should be at the top of your list when it comes to leading your company toward expansion and innovation. An integral part of both of these is ensuring that third parties are unable to access, use, or distribute your private user data, can protect your employees, safeguard your business operations, and preserve your company’s reputation.

In all likelihood, your business faces a data privacy concern every day—if any of your employees use the internet, your company’s information could be at risk. Fortunately, in this article, we’ll break down which data are susceptible to attack, dissect six common issues in data privacy, and discuss how to solve data privacy issues to help bolster your data protection measures. 

Which Data Are Susceptible to Privacy Breaches?

Privacy breaches often involve a wide range of company information. While account credentials—usernames and passwords—are likely the first pieces of information that come to mind when considering data privacy issues, plenty of other details are susceptible to access, theft, and sale. 

Like what you see?

Get data privacy updates sent straight to your inbox.

These include:

• Products you’ve purchased online
• Search engine and browser histories
• Location information
• Financial data 
• Employee benefits service providers such as:
  • Insurance companies
  • Health Savings Account administrators
  • Retirement account platforms
• Preferred operational solutions for tasks like:
  • Employee messaging
  • Internal record storage
  • Project management
  • Banking and bookkeeping

Malicious third parties may infiltrate data and documents that you and your employees create, access, store, or share across your organization. When third parties gain access to your private information, you’re at risk of data loss, reputational damage, and regulatory fines. 

That being said, you can prevent or seriously mitigate data breaches by pinpointing possible vulnerabilities and data privacy concerns within your business operations. We’ve detailed six below. 

#1 Insufficient Data Privacy Plans

Nearly two megabytes of new data enter the digital sphere each second. If you conduct any aspect of your business digitally or online, you contribute to that figure any time business hours are open. 

But, have you considered whether or not your data protection policy and infrastructure are robust enough to handle your business’s data volume? The more data you produce, store, and share, the more likely it is that you’ll encounter data privacy issues. As such, you should consider each piece of new data as a potential weak spot in your privacy policies. 

Any preventative software or procedure should address specific privacy concerns at scale. To that end, every cybersecurity and privacy solution should account for the following, at the minimum:

• The number of users and their permission throughout your network
• The sheer volume of data that your business stores physically and in the cloud
• Each employee’s average technology needs and usage
• Your company’s most critical and sensitive data

Instead of preventing issues in data privacy as an afterthought, create a plan that’s both scalable and comprehensive enough to protect your business’s unique data volume and usage. To bolster your privacy, you may encrypt your data, back up personal information on a cloud server, and implement monitoring software to regularly analyze data access and protection. 

#2 Data Trading

To determine how to solve data privacy issues specific to your company, remember to account for one of the most insidious issues in the digital sphere—data trading. 

Data trading includes:

• Third-party access and theft of your confidential information
• Selling the information to other third parties
• The continued sale and resale of data until relevant leaks are addressed

Protecting your sensitive data from unauthorized access—and potential sale to third parties—should be one of the linchpins of your data privacy plan. Why? Once data traders have your company or customer data, they can accomplish a variety of potentially harmful undertakings, such as:

• Identity theft – With access to enough confidential customer data, hackers can impersonate your business or your customers online for their own gain. They may issue electronic transfers from your bank accounts, apply for loans using your federal tax ID number, or make unauthorized purchases.
• Data hostaging – In extreme cases, data traders will invite you to the negotiations table by holding your data hostage for a high price. While they await your response, they may take offers from other bidders. 
• Targeted advertising – Data traders can sell your data to advertising companies who can create ads personally tailored to your shopping habits, your digital shopping lists, and your search engine results. 

Although it’s one of numerous data privacy issues, data sales can inconvenience, set back, or decimate your and your customers’ daily operations. 

#3 Location Tracking

In the business sector, location tracking can be insidious. Hackers can infiltrate your employees’ location data to reveal or sell trade secrets, confidential consumer data, supply chain information, and business development efforts. 

Let’s explore an example scenario:

1. Data traders access an employee’s location data from his smartphone. The employee drives a company car to pick up orders from suppliers and deliver products to customers. 
2. By examining trends in his location data, third parties can uncover:
   1. Your primary material suppliers or consulting partners
   2. Your retail and individual clients
   3. Your company vehicle storage locations when business hours are closed
3. These third parties can sell your information to data traders or offer the data to your competitors, putting your operations in jeopardy.

Hackers can wreak havoc with access to even one employee’s location data. As such, businesses must protect location data as part of their privacy initiatives. 

#4 Dangers of Additional Devices

Even if on-site IT equipment is well-protected by data privacy infrastructure and procedures, consider the risks that other devices can present to your business. 

In addition to work-issued smartphones, tablets, and PCs, businesses should also include the following devices in their data privacy plan:

• Employee-provided equipment, such as:
  • Smartphones
  • Tablets
  • Laptops
• Hardware employees use to remotely access your server
• Portable hotspots for remote wifi access

The more data your company has, the more opportunities usurpers have to hijack your information—the same is true when considering the number of devices in circulation. Encourage your employees to only access company information from their work-issued devices, rather than a personal computer, phone, or tablet. 

#5 Insufficient Standard Operating Procedures 

Even with the best data privacy platform at their disposal, humans can still make mistakes. As such, businesses shouldn’t rely on software alone to protect their data. Companies must also develop and fine-tune standard operating procedures (SOPs) for data privacy. 

SOPs should include procedures like:

• New device setup and privacy protection
• Protocol concerning employee devices
• Document naming and filing conventions
• When, why, how, and by whom the SOP should be reviewed and updated

After creating—or overhauling—their data privacy SOP, companies should also strongly consider:

• Training new employees to access and follow SOPs
• Adjusting the SOP each time their data protection software changes or updates
• Offering incentives for employees to attend semi-regular data privacy trainings

#6 Data Hoarding

As we’ve explored in previous sections, more data means more opportunities for unauthorized access. If your company is unnecessarily saving digital documents, you should perform some spring cleaning to dispose of any redundant or outdated files on your server, in the cloud, or on individual devices to prevent any privacy issues from arising. 

When thinning out your data inventory, prioritize the following items for disposal:

• Duplicate files
• Program files that are outdated or no longer in use
• Non-financial documents over 10 years old

If you’re not ready to purge older materials, consider storing hard copies in a secure, safe location, like an offsite, locked storage unit. This strategy is particularly useful for old financial or HR documents—since you may need them in the future, you can reduce the risk of a data privacy issue from happening by opting for printed copies. 

Why Is Data Privacy Worth It?

If the potentially massive risks posed by the data privacy issues above didn’t sway you, consider how catastrophic a personal data breach could be for your or your family’s financial security, privacy, and physical safety. 

Company data should be treated with the same care, if not more—while a personal data breach could jeopardize your immediate family, a business data breach could endanger your company, your customers, and each employee. 

Simply put, data privacy is worth it because:

• A data breach may lead to a loss in revenue, customer distrust, and financial penalties.
• You must comply with data privacy regulation and laws. Failure to do so may result in steep fines.
• Securing the personal information of your customers and data regarding your business operations is vital to preventing fraud, identity theft, and competitor access.

Learn more: Data Privacy vs. Data Security: A Guide

How Should You Protect Your Data?

So, wondering how to improve data privacy? Data privacy issues can be addressed with various solutions, some of which we’ve already briefly explored. These include:

• Bolster data privacy plans – To protect your digital assets thoroughly, review your current procedures and software, identify coverage gaps, and build a system that can scale as you create more data.
• Monitor data trading – Prevent data trading by reducing the likelihood of third-party data access—consider software-based solutions and internal procedures.
• Disable location tracking – Disable location services on devices company-wide to prevent data leaks and competitor access.
• Reduce devices – Limit the number of devices that can access your data and restrict employee access to company assets via personal devices.
• Create sufficient SOPs – Determine the vulnerabilities in your internal procedures, create new SOPs, and train your employees to follow them. 
• Avoid data hoarding – Perform regular purges of outdated digital documents, opting for hard copies in secure storage when necessary. 

Renting vehicles creates numerous risks for businesses. Some are obvious, such as the chance of an injury accident or physical damage to the vehicle. Other risks, like a harsh indemnification clause in a rental contract, may be more obscure. To reduce their risks, business owners should consider the following issues before they rent any autos.

Business Liability Insurance

Most states require rental companies to provide customers with at least the minimum statutory limit of liability insurance. Businesses should not rely on this coverage as their main source of protection against liability claims. For one thing, the limit is generally low ($25,000/$50,000 is typical). In some states, moreover, the insurance afforded by the rental company is excess over any other coverage available to the renter.

While businesses can buy additional liability insurance from the rental agency, many already have insurance under a commercial auto policy. A key source of liability insurance for rental vehicles is hired auto liability coverage. This coverage is available under the standard business auto policy. It protects your company against claims for bodily injury or property damage caused by accidents resulting from the use of hired autos. Note that hired auto liability coverage applies on an excess basis. Your policy will pay claims arising out of a hired auto after other collectible insurance has been used up.

Name on the Rental Agreement

When a rental vehicle is used on behalf of the business, whose name should appear on the rental agreement? Ideally, the contract should list the business. There are two reasons for this. First, hired auto liability coverage applies to you, meaning the named insured business. The policy does not specifically cover employees while driving autos rented by them personally. Consequently, an insurer may refuse to pay a claim stemming from an accident involving a vehicle rented by an employee unless employee-hired autos are covered by an endorsement.

Secondly, an employee’s personal auto policy (or personal assets) may be used to pay claims if the employee has rented a vehicle in his own name and is subsequently involved in an accident. The employee’s policy and assets are at risk even if the worker rented the auto to use in his employer’s business.⁵

Personal Auto Coverage

While it’s preferable for vehicles used for business to be rented in the name of the business, this isn’t always possible. An employee may lack the authority or the means (like a company credit card) to rent an auto in his employer’s name. Thus, employees who rent autos should have personal auto coverage in place. A personal policy can provide backup coverage if no other insurance is available to cover a claim. Most personal policies cover rental cars for liability.

Note

Many personal auto policies don’t provide liability coverage for trucks or other commercial vehicles (other than vans or pickups) used in a business.

Liability Under the Rental Agreement

Most rental contracts contain an indemnity agreement that transfers liability from the rental agency to the customer. The agreement typically requires the customer to assume liability for any claims by third parties for injuries or damage caused by accidents resulting from the customer’s use of the rental vehicle. Agreements vary. Thus, customers need to read contracts carefully so they understand how much liability they are assuming.

Physical Damage Coverage

Rental car contracts typically make customers liable for any physical damage they cause to the rental vehicle. The contract may also hold customers responsible for various costs such as loss of use, diminution in value, and administrative expenses.

Many rental agencies offer to waive liability for physical damage and the other charges if the customer purchases a loss damage waiver (also called a collision damage waiver). Because an LDW is often pricey, customers should consider other potential sources of coverage. These may include hired auto physical damage coverage under a commercial auto policy or physical damage coverage under a personal auto policy.

Note

Besides insurance, many businesses also have collision and theft coverage afforded by a credit card company. This coverage is available only if the business uses the card to rent the vehicle.

Which Coverage Is Primary?

As mentioned previously, hired auto liability coverage applies on an excess basis under the standard business auto policy. Liability coverage afforded for rental vehicles under personal auto policies also applies on an excess basis. Liability coverage provided by the rental company may also be excess. If all coverage is excess, which will apply first? The answer may be determined by a state statute or a previous court ruling. Alternatively, the insurers may opt to share the loss. Ask your agent or attorney how such disputes are typically resolved in your state.

Wondering where to invest? Real estate agents break it down.

• Strategic kitchen updates like fresh countertops, new lighting, and painted cabinets can make a big impact on buyers without requiring a full remodel.
• Timeless and high-quality finishes—like real tile backsplashes and neutral color schemes—tend to appeal more than trendy or overly personalized choices.
• Even small staging details, such as decluttering counters and using subtle scents, help create a welcoming kitchen that stands out during showings.

Most people spend a lot of time in their kitchens, so when it comes time to buy a home, they often take a closer look at this room than others. And if you’re a seller, it pays to make sure your kitchen is feeling fresh, according to real estate agents.

“Kitchen remodels are pricey—and disruptive to everyday life,” explains Susan Thayer, founder of the Thayer Group and a market trends committee member at the Denver Metro Association of Realtors. “Many buyers will put an offer on a home that has an updated kitchen even if the rest of the home is not as updated, simply because they know the cost and disruption of having to do this update themselves.”

Pamela Bathen, a broker with Oak Realty in Ashland, Massachusetts, notes kitchen upgrades bring a strong visual impact to a home, making them smart investments for sellers. But what projects are most attractive to buyers? Here’s what home-selling experts say. 

New Countertops

It’s worth it to consider adding new countertops to your kitchen, especially if your current counters are dated. “If the kitchen has an island and acres of counter space, new countertops can become a highlight and make other deficits, if there are any, seem less urgent,” says Bathen. 

According to a recent Zillow analysis, soapstone countertops fetch a 3.5% sale premium. The dark and richly veined natural stone adds depth and drama to a kitchen, explains Amanda Pendleton, Zillow’s home trends expert. Quartz, meanwhile, can help a home sell for 2.6% more than expected.

“Porcelain is very popular right now and more budget-friendly than quartz, however buyers will not usually pay more just because the counters are a certain material,” Bathen adds. “In most cases new is new, and both are fabulous options.”

Updated Lighting

Kate Terrigno, a Realtor with Corcoran in Charlotte, North Carolina, says good lighting can completely transform how a kitchen feels, bringing it from dim to bright and inviting. “I recommend focusing on under-cabinet and statement fixtures,” she says. “Swapping in modern pendants immediately eludes warmth while adding a touch of luxury without the huge expense.”

According to Houzz’s 2025 kitchen trends study, 9 out of 10 renovating homeowners install new lighting over their kitchen islands, with pendant lights coming in as the top choice. 

A Real Backsplash

The finish that wows the most is typically the backsplash, explains Kristen Hunter, an agent with Keller Williams Hilton Head Island in South Carolina. “But it has to be timeless and real tile,” she says. Translation? Skip the peel-and-stick backsplashes, which are viewed as a project since the drywall underneath can get ruined. “It also can’t be specific to the decor of the seller or the paint on the wall because the buyer may not have the same taste,” she says. 

Refreshed Cabinets

“Sometimes, lipstick on a pig works,” says Andrew Abrams, a broker at Guide Real Estate and another market trends committee member for the Denver Metro Association of Realtors. In other words, painting outdated or dingy kitchen cabinets can go a long way, as can swapping in new hardware.

“If the kitchen is older and only one upgrade is realistic, painted cabinets usually have the biggest impact,” adds Bathen. “A light, modern color draws the eye up and gives a fresh, new feel to the room.”

Pendleton, however, suggests one specific paint color: olive green. Zillow’s latest paint color analysis found buyers will pay nearly $1,600 for an olive green kitchen. “Leave any major renovations to your home’s next owner,” she says.

Just Don’t Go Overboard

In most casts, huge renovation projects and over-personalized selections won’t do you any favors, explains Terrigno. “Less is more—keep it clean, neutral, and simple,” she says.

With that in mind, it’s important to sufficiently prep any kitchen for a showing, no matter how many upgrades you did or didn’t make. Taylor Lucyk, the team lead at Taylor Lucyk Group, suggests clearing off countertops, hiding garbage cans, and putting away pet bowls.

“Try not to cook right before a showing, and consider lighting a lightly scented candle to create a welcoming atmosphere,” he adds. “Small touches like these can make the kitchen feel more inviting and leave a strong impression on potential buyers.”

Turning 59½ might not be a milestone you throw a big party for—but in the world of retirement planning, it’s a big deal. Why? Because this is the age when the IRS finally gives you penalty-free access to the retirement savings you’ve been building for decades.

But just because you can tap into your funds doesn’t mean you should—at least not without a strategy. Understanding what happens when you turn 59½—and what opportunities it unlocks—can make a big difference in how prepared and confident you feel about your retirement future.

🔑 Key Takeaways

• At 59½, you can withdraw retirement funds without the 10% penalty.
• This milestone opens the door to tax strategies like Roth conversions and in-service rollovers.
• Different account types have different rules—know what applies to yours.
• Acting during this window can help reduce taxes, boost income, and prevent mistakes.
• A financial pro can help you make the most of this window before RMDs begin.

Why 59½ Matters More Than You Think

The 59½ retirement rule is more than just being able to access your retirement account penalty free.

While most people know this rule ends the 10% penalty on IRA and 401(k) withdrawals, few realize it also unlocks powerful planning strategies—like Roth conversions, in-service rollovers, and early income structuring.

So, how does the 59½ rule work in practice? In short: it opens the door to greater flexibility. You’re no longer penalized for taking withdrawals, giving you a unique window to manage taxes, shift assets, and start building your income strategy—on your terms.

This window of opportunity won’t last forever. Once Required Minimum Distributions (RMDs) kick in at age 73, your flexibility shrinks. That’s why 59½ is the ideal time to start optimizing your retirement plan.

What Changes at 59½

When thinking about retirement, at 59½, the rules—and your options—start to change in meaningful ways.

This is the age where the rules around your retirement savings start to loosen up, giving you more freedom and flexibility.

Here’s what happens when you turn 59½ retirement-wise:

✅ Penalty-Free Withdrawals Begin

You can now withdraw from IRAs, 401(k)s, and other qualified retirement accounts without the 10% early withdrawal penalty. While income taxes still apply to traditional accounts, this opens up flexibility for funding early retirement or managing income gaps.

🔄 In-Service Rollovers May Be Allowed

If you’re still working, some employer plans allow you to roll over funds from your 401(k) into an IRA without quitting your job. This gives you more control, broader investment options, and better alignment with your retirement goals.

🔁 Roth Conversion Opportunities Expand

59½ is a prime time to consider Roth IRA conversions. Strategic conversions—especially in lower-income years—can help reduce your future tax burden and create a pool of tax-free income for your golden years.

🔓 Income Strategy Becomes Real

Whether you’re gearing up to retire or just testing the waters, 59½ marks the moment you can start shaping your income strategy the way you want.

---

What You Can Do at 59½ (And Should Seriously Consider)

Now that the door is open, what you do with that new flexibility matters even more.

The 59½ retirement rule isn’t just about accessing your money penalty free—it’s about making smart, strategic decisions that can set the tone for the rest of your retirement.

Here are a few high-impact moves to consider:

• Create a Tax-Smart Withdrawal Plan – Just because you can take money out doesn’t mean you should do it all at once. Think about how withdrawals now might affect your tax bracket, Medicare premiums, and long-term income sustainability.
• Start Strategic Roth Conversions – Use this window—before RMDs begin at age 73—to convert funds from a traditional IRA to a Roth IRA. This can reduce future tax burdens and help you grow tax-free income.
• Consolidate or Reposition Retirement Accounts – With in-service rollovers or IRA transfers, now is a great time to consolidate accounts, reduce fees, and align your investments with your retirement timeline.
• Consider Guaranteed Income Options – If you’re worried about running out of money or market swings, this is the time to look at tools like annuities that can turn part of your savings into predictable monthly income.
• Plan for Healthcare – If you retire before age 65, make sure you factor in healthcare costs and how withdrawals may affect your eligibility for ACA subsidies.
• Work With a Financial Pro to Build Your Retirement Game Plan – The years between 59½ and 73 are a golden window for tax planning, income mapping, and legacy building. A professional can help you spot opportunities—like implementing a guardrail strategy to balance income needs and market risk—and avoid costly missteps.

Don’t Miss Your 59½ Window

You’ve unlocked new options—but knowing which moves are right for you takes a solid strategy.

Book Your Free Consultation With a Financial Pro

Key Considerations: Account-Specific Rules and Nuances

Not all retirement accounts follow the exact same playbook. Knowing the unique rules for each type of account can help you avoid mistakes and take full advantage of the 59½ retirement rule.

401(k) and 403(b) Plans

• Penalty-free withdrawals allowed after age 59½
• Still working? You may qualify for in-service rollovers to an IRA
• Retired at 55 or older? You might qualify for the Rule of 55
• Withdrawals are taxed as ordinary income

Traditional IRAs

• Withdrawals after 59½ are penalty-free
• Still taxed as ordinary income
• Ideal for Roth conversions during low-income years
• No employer restrictions—you already have full control

Roth IRAs

• Contributions can be withdrawn tax- and penalty-free anytime
• To withdraw earnings tax-free at 59½, the account must be open at least 5 years
• If the 5-year rule isn’t met, earnings may still be taxed—even after 59½

SEP-IRAs and SIMPLE IRAs

• Follow the same rules as traditional IRAs after age 59½
• SIMPLE IRA exception: If you withdraw within 2 years of opening, the penalty is 25%—even after 59½
• After that 2-year mark, standard rules apply

If you’re comparing your options, it’s worth exploring the distinctions between a SEP IRA vs. Traditional IRA to see which best aligns with your retirement strategy.

Common Mistakes to Avoid at 59½

Even with new flexibility, it’s easy to go off course. Here are common pitfalls to watch for:

• Withdrawing too much, too soon
• Neglecting long-term growth opportunities
• Failing to coordinate withdrawals with Social Security or Medicare planning
• Ignoring Roth conversion windows that could save thousands in future taxes
• Underestimating healthcare costs as you age
• Not consulting with a professional before taking action

Retirement planning after 59½ requires ongoing attention as your situation evolves. Review your withdrawal strategy annually, considering changes in tax laws, investment performance, health status, and personal goals.

Want to make the most of your options at 59½?

Schedule a free consultation and learn how to build a tax-efficient, income-secure retirement plan tailored to your goals.

Frequently Asked Questions

Do I have to start withdrawing money at 59½?

No. 59½ is simply the age when the 10% early withdrawal penalty goes away. You’re not required to take money out until Required Minimum Distributions (RMDs) begin at age 73 (for most people). This age just gives you more flexibility and planning opportunities.

Will I still pay taxes on withdrawals after 59½?

Yes, if you’re withdrawing from traditional accounts like a 401(k) or Traditional IRA, those funds are still taxed as ordinary income. However, withdrawals from a Roth IRA may be tax-free if the account has been open for at least five years.

What should I do first when I turn 59½?

Start by reviewing your current accounts, income needs, and long-term goals. From there, consider talking to a financial professional who can help you create a withdrawal plan, explore Roth conversions, and optimize your tax strategy.

Is $1 million enough to retire at 59½?

That depends on your lifestyle, expected longevity, healthcare costs, and income strategy. For a deeper dive, check out our guide on whether $1 million is enough to retire—and how to make it work for your unique goals.

Are there exceptions to the 59½ retirement rule?

Yes. While 59½ is the standard age to avoid the 10% early withdrawal penalty, there are several exceptions that may allow penalty-free withdrawals before that age. These include:

• Disability
• Substantially equal periodic payments (SEPP rule)
• Qualified education expenses
• First-time home purchase (up to $10,000 from an IRA)
• Unreimbursed medical expenses over 7.5% of AGI
• Health insurance premiums while unemployed
• The Rule of 55 (for workplace plans if you separate from your employer at 55 or older)

These exceptions often still require you to pay income tax, but waive the early withdrawal penalty. Always consult a tax advisor before proceeding.

A healthy routine might be the key to success; here’s how Marie Kondo, Oprah, and Barack Obama do mornings

How you spend the first few hours of your morning can set the tone for the rest of your day. Morning routines inevitably lead to efficiency, since they remove the decision-making step, saving you time and energy. Some of the world’s most admired, creative, and successful people rely on their own morning routines to ensure their days are as productive and fruitful as can be. If you resist your morning wake-up call and hit snooze, you might take a tip or two from the routines below to create a better habit.

10 morning routines highly successful people swear by

1. Commit to a ritual

Light a candle, hug your partner, wash your face—whatever you do in the morning, make it a ritual that marks the start of a new day and a fresh start. American dancer Twyla Tharp is a big believer in rituals for both creativity and accountability. In her book The Creative Habit, she writes about her morning routine, which consists of waking up at 5:30 a.m., dressing for her workout, and then hailing a cab to go to the gym.

“The ritual is not the stretching and weight training I put my body through each morning at the gym; the ritual is the cab. The moment I tell the driver where to go, I have completed the ritual,” Tharp writes. “It’s a simple act, but doing it the same way each morning habitualizes it—makes it repeatable, easy to do. It reduces the chance that I would skip it or do it differently. It is one more item in my arsenal of routines, and one less thing to think about.”

Marie Kondo, author of The Life-Changing Magic of Tidying Up, also has her own ritual. “When I get up, I open all the windows to let fresh air in and then burn incense,” she writes on her blog. “I strive to keep my home comfortable and filled with clear energy throughout the day, so starting my morning with these rituals keeps me on track.”

2. Clear your head

There are plenty of reasons successful people incorporate meditation into their morning routine: The practice can help control anxiety and stress, and it can also boost self-awareness and the ability to concentrate. It’s no wonder so many leaders have incorporated the art of mindfulness into their days. Jen Rubio, co-founder of Away, starts her day with meditation before she does a workout. Arianna Huffington, whose Thrive Global office is located in a headquarters by WeWork space in New York City, practices 20 to 30 minutes of mindfulness in the morning, and she does it deliberately before checking email or touching technology. And before his six-mile run, former Twitter CEO Jack Dorsey takes 30 minutes to meditate. 

3. Sweat

Vogue’s editor in chief Anna Wintour starts her morning with an hour-long tennis match, and it’s a very smart move. A study from the University of Bristol found that daily exercisers were more likely to have more energy and a more positive outlook compared to those who didn’t participate in a sweat session. Building exercise into your morning can earn you mental clarity that lasts throughout the day. “Exercise leads to the secretion of neurotransmitters that promote mental clarity and an improved attention span,” says exercise psychologist Jasmin Theard. “You’ll feel a sense of accomplishment as well as rejuvenated and recharged.”Former president Barack Obama made exercise part of his presidential schedule when he was in the White House, lifting weights and doing cardio before he made his way to the Oval Office.

Mellody Hobson, president of Ariel Investments, incorporates all kinds of movement into her mornings. Her exercise may include running, weight lifting, swimming, or cycling, which is always followed by a bath. “My bath time is essential personal time,” she tells CNBC. “I take a bath every morning, and use the time to decompress and relax. When I’m running outside on cold days in Chicago, I run faster on the return leg, thinking about my bath.”

4. Practice gratitude

This may come as a surprise, but after she burns incense in her home, Marie Kondo doesn’t get into a meticulous folding session. Instead, she practices gratitude. “I say a prayer of thanksgiving for my family and team members’ health, and I renew my resolve to do as much as I can that day,” she writes. Writing out her daily to-do’s only comes after this practice. 

Wealth is not measured by dollars and cents, but by the love we make, the laughter we enjoy, the meals we share, the dreams we experience, and the hopes we create.Oprah Winfrey

Oprah’s morning routine also involves appreciation. After brushing her teeth and walking her dogs, she reads five cards from her 365 Gathered Truths box, according to Harper’s Bazaar. An item on her 2014 “Favorite Things” list, this box shares pieces of wisdom meant to inspire. “It’s a beautiful way to start the day,” Oprah told Bazaar. An example of a message you might pluck from the box? “Wealth is not measured by dollars and cents, but by the love we make, the laughter we enjoy, the meals we share, the dreams we experience, and the hopes we create.”

5. Rise with the sun (or even before it)

A 2008 study published in The Journal of General Psychology found that early risers tend to procrastinate less than night owls with a later alarm clock. It makes sense then that many successful people throughout history have identified as early birds: Apple CEO Tim Cook, for example, emerges from underneath the covers at 3:45 a.m. to go through email before his five o’clock appointment with the gym. Virgin Group founder and chairperson Richard Branson rises at a bit less of an ungodly hour—around 5 a.m.—to exercise and spend some time with his family. 

“I have always been an early riser,” he writes on a Virgin blog. “Over my 50 years in business, I have learned that if I rise early, I can achieve so much more in a day, and therefore in life.” Branson adds, “I find the period of quiet, before most of the world logs on, to be a great time to catch up on news and reply to emails. These early hours give me the opportunity to start each day with a fresh and organized slate.”

6. Read a book

Many people know that reading before bed can help calm the mind and prepare the body for sleep. What you hear less about are the benefits of adding reading to your morning routine. Rather than scrolling through social media in the morning, consider reading a book or an article instead. You get all the benefits of reading first thing in the morning. One study from the University of Sussex found that just six minutes of reading can reduce stress by up to 68 percent. There’s also a wealth of evidence that reading can boost cognitive activity in the brain, which is a great way to prime yourself for the challenges of the day. It’s no surprise that people like Bill Gates and Barack Obama start their days by reading.

7. Journal

The act of writing has surprising power. A study conducted in New Zealand found that people who dedicated 20 minutes daily to expressive writing three days in a row after a medically necessary biopsy healed faster than a control group. Why not start your day with journaling? Other studies have shown that the practice helps reduce stress and anxiety, improve job performance, and helps people process troubling experiences. It’s easy to see why people such as Warren Buffett, Richard Branson, and Arianna Huffington swear by this practice. 

Mellody Hobson, president of Ariel Investments, incorporates all kinds of movement into her mornings. Her exercise may include running, weight lifting, swimming, or cycling, which is always followed by a bath. “My bath time is essential personal time,” she tells CNBC. “I take a bath every morning, and use the time to decompress and relax. When I’m running outside on cold days in Chicago, I run faster on the return leg, thinking about my bath.”

8. Drink water

It might sound trivial, but adding a simple glass of water to your morning routine can make a huge difference. Hydration is a critical aspect of health. Water removes waste from the body, regulates your body temperature, lubricates and cushions your joints, and protects sensitive tissues. Our bodies can become dehydrated overnight, so water in the morning helps rehydrate. A morning glass of water has also been shown to reduce calorie intake during the day, improve mental performance during the day, improve the look and health of your skin, and even jump-start your metabolism. 

It’s no wonder that celebrities from Kim Kardashian to Beyoncé have all touted the benefits of drinking water. In a 2014 interview with Marie Claire, Cameron Diaz spelled it out: “Every night, before I go to sleep, I fill up a big glass bottle with water and put it on my bathroom counter. First thing in the morning, right after I brush my teeth, I drink it, […] I feel it immediately. I go from being a wilted plant to one that has just been rejuvenated by the rain.” 

9. Eat a real breakfast

The right breakfast can help power you through the day. While the science behind the benefits of breakfast is less clear than the science behind the benefits of water, many successful people have made breakfast a key part of their morning routine. Kelly Ripa keeps it simple with coffee, yogurt, and granola, while Barack Obama prefers a fuller breakfast of eggs, potatoes, and wheat toast. 

If you’re short on time, a smoothie is a great option. In 2020 Reese Witherspoon shared her go-to green smoothie recipe that she has had every morning for the last nine years. John Mackey, the founder of Whole Foods, also has a favorite green smoothie for breakfast. Others, like Idris Elba, keep it simple with toast. Whether simple or elaborate, finding your preferred breakfast routine can be a great start to the day.

10. Make a to-do list

Planning out the day and making a list of what needs to be done can help prepare your mind for the day ahead. To-do lists may not be for everyone, but successful people like Michelle Obama and Richard Branson are big believers in taking the time to meticulously plan out what needs to get done each day. One key benefit of list-making that both these leaders cite is blocking out time to plan and take care of yourself. Branson once wrote, “Far too many people get weighed down in doing, and never take the time to think and feel.”

Related articles

Financial decisions can carry a scary amount of weight. The wrong financial choices can negatively impact your credit score, your interest rate when borrowing money, and even determine if you’ll get approved for a loan. Other financial mistakes can determine the size of your nest egg and when you’ll be able to retire. But, treating your finances with too much caution can also cause you to miss out on new financial opportunities. It’s a tricky conundrum that makes it hard to know which choice is the right one.

If you don’t feel secure in your own financial knowledge it can be tempting to just follow along with what someone else with a larger platform is confidently saying online. And we all know the internet is overflowing with people giving financial advice—but some of it is neither sound nor applicable. So, we asked finance experts to clear up some of the biggest misconceptions and falsehoods about money on the internet.

“You need a 20 percent down payment and great credit to purchase a house.”

The idea that you need a 20 percent down payment on a house has been passed on and on—but many experts say it’s time to retire that belief. “People are often shocked when I tell them that yes, they can buy a house with 3 percent down,” says Jennifer Beeston, SVP of mortgage lending at Guaranteed Rate in San Francisco, California. “You do not need 20 percent down; I repeat you do not need 20 percent down.” She recommends chatting with a mortgage expert to discover the various low down payment options that can help you purchase a home.

Candice Williams, realtor at Coldwell Banker in Houston, Texas, agrees, and adds, “People believe that they need to come up with 20 percent of the purchase price, and they think they need a high credit score to purchase a home.” And as a result, she says that many would-be homeowners are missing out on this experience due to incorrect information.

“There are a variety of loan options,” Williams says. For example, the FHA, Federal Housing Administration, will accept a 3.5 percent minimum down payment and a credit score in the 580 range. “There are also many homebuyer grants to help buyers on the national, state, and local level, and this money doesn’t have to be repaid,” she adds.

In addition, Beeston says she often hears from potential buyers who think they need a car loan to qualify for a mortgage. “Generally, these people have seen a credit ‘expert’ video in which that individual has said in order to buy a house you have to show multiple tradelines and an auto loan is one tradeline you need,” she says. But this is “100 percent incorrect,” Beeston says, and you don’t need to have an auto loan on your credit to qualify for a mortgage.

“You need to buy a house to get ahead.”

Homeownership may be the American Dream for some people, but according to Jay Zigmont, PhD, CFP, founder of Childfree Wealth in Water Valley, Mississippi, you shouldn’t let the internet make you feel like you’re losing out if you don’t own a home. “Buying a house is one way to get exposure to real estate, but it does not fit everyone,” he says.  In fact, if you tend to move around frequently, he says it’s more than okay to rent. “It is even okay to rent in the long term if you don’t enjoy homeownership or it isn’t right for you.”  So, instead of doing what everyone else recommends, Zigmont recommends thinking long and hard about the decision to own a house.

“You need to have X amount of money by the age of Y.”

While there are plenty of articles declaring that you need to have a certain amount of money by age 40, 50, etc., Zigmont warns these rules of thumb may not fit you.  “For example, most of these benchmarks or general rules assume you will have kids, but if you are living a childfree life, these benchmarks won’t fit.” Instead, he recommends measuring your own progress, financial plans and goals. “Make progress each year, and don’t worry about how you compare to others.”

“You need to be wealthy to start investing.”

A lot of investing advice on the internet is geared toward high income earners. But you don’t have to be wealthy to start investing, according to Dr. Kortney Ziegler, founder and CEO of Well-Money.com, and a Stanford University Humanities Fellow. “The truth is that anyone can start investing, regardless of their income level—and you don’t need a lot of money either.” Ziegler says you can start investing as little as $5 to $10 per week.  “From small acorns do mighty oaks grow, and regularly investing small fixed sums of money delivers impressive results over time.”

“Married couples should combine finances.”

You may have read articles advising couples to keep their financial accounts separate and other articles advising them to combine their money. According to Ziegler, there is no right or wrong answer.  “Some couples prefer to keep their finances separate, while others choose to combine everything into one joint account,” they say. “What works for one couple may not work for another couple.”

“Cutting expenses is the only way to save money and create a nest egg.”

The ability to save money is probably the most important tool you can have in your financial toolbox. However, it shouldn’t be the only one. Sometimes, the question is not solely what else can you cut out, but also how you can increase the amount of money coming in, explains Cicely Jones, CEO of MPA Financials in Pleasant Grove, AL. For example, she says it may be time to go to your employer and ask for a raise if you haven’t had one in a while, or if your job performance warrants it.

Or, it may be time to seek new employment if a salary increase isn’t possible at your current job. “Complacency can keep you from moving on, but needing an increase should be an incentive, so amp up your resume, add skills, get certified, etc., so you can stand out to employers.” Another alternative: Jones also recommends getting a side hustle or part-time job as a short-term way to boost income. “Dive into a talent or craft you might have, something that you are passionate about, and see how it can earn you some extra money.”

“You don’t need a bank account—just get a prepaid card.”

Those prepaid cards advertised on the internet may seem like a convenient way to handle your finances, but don’t be fooled by those free-living lifestyle videos, warns Birmingham, Alabama-based financial expert Tae Lee, who created “Game of Fortune: Win in Wealth or Lose in Debt,” a financial literacy game. “Everyone needs a bank account for many reasons such as storing money, saving money, securing money, and having a safe place to store it.” In addition, she says that prepaid cards tend to come with activation and reloading fees—and the cards don’t help you build credit.

“Your friend’s Medicare coverage is a good plan for you.”

It’s not uncommon to get advice from people in your social media circles. However, this may not be the best source for information as it relates to Medicare, warns Ari Parker, author of, It’s Not That Complicated: The Three Medicare Decisions to Protect Your Health and Money. He says there’s no single health insurance plan that’s best for everyone. “Do you see the same doctors and take the same prescriptions as your friends? Probably not, so you probably need different plans to meet each of your unique needs,” he says.

With countless Medicare insurance plans out there, Parker recommends the 3P method to finding a plan for you:

Providers: “Make sure you note the doctors, pharmacies, and hospitals you plan to access,” Parker says, adding that some plans have limited networks that restrict your choices.

Prescriptions: “Jot down the medicines you take to stay healthy,” he says. “Prescription drugs are often a considerable household expense, but you may be able to save upwards of $1,100 by matching your prescription needs to the right plan and nearby drug store.”

Priorities: “Your health care and lifestyle are probably different than your neighbor’s,” he says. “So make sure you’re making decisions based on your personal savings goals and lifestyle choices.”

One overarching theme from all of this: Your finances are personal. So, as helpful as it can be to get advice, just make sure you’re following the path that makes the most sense for you.

What is an emergency fund?

An emergency fund is a bank account with money set aside to pay for large, unexpected expenses, such as:

• Unforeseen medical expenses.
• Home-appliance repair or replacement.
• Major car fixes.
• Unemployment.

Compare top savings accounts

Find a high-yield savings account with a great rate. Compare rates side-by-side.

Why do I need an emergency fund?

Emergency funds create a financial buffer that can keep you afloat in a time of need without having to rely on credit cards or high-interest loans. It can be especially important to have an emergency fund if you have debt, because it can help you avoid borrowing more.

According to NerdWallet’s April 2026 savings report, an emergency fund was the most commonly cited active savings goal. Nearly half of Americans surveyed, 45%, said they are actively saving money in a bank account for this purpose.

How much should I save?

The short answer: If you’re starting out, try to set aside an amount that would cover an important bill, say $500. But keep working your way up. You’ll want to max out at about half a year’s worth of expenses.

The long answer: The right amount for you depends on your financial circumstances, but a good rule of thumb is to have enough to cover three to six months’ worth of living expenses. (You might need more if you freelance or work seasonally, for example, or if your job would be hard to replace.) If you do lose your job, you could use the money to pay for necessities while you find a new one, or the funds could supplement your unemployment benefits.

Having savings can get you out of many financial scrapes. Put something away now, and build your fund over time.

Where do I put my emergency fund?

Ideally, you’d put your emergency fund into a savings account with a high interest rate and easy access. Because an emergency can strike at any time, having quick access is crucial. So it shouldn’t be tied up in a long-term investment fund. But the account should be separate from the bank account you use daily, so you’re not tempted to dip into your reserves.

A high-yield savings account is a good place for your money. It is federally insured up to $250,000 per depositor, per ownership category, per financial institution so it’s safe. (Read more on how savings accounts are federally insured through the Federal Deposit Insurance Corp., or FDIC, and the National Credit Union Administration, or NCUA.) In addition, the money earns interest, and you can access your cash quickly when needed, whether through withdrawal or a funds transfer.

While a savings account is an excellent option, some people may not be able to open one immediately. If a bank closed a previous account of yours, for example, it may have reported the closure to a consumer reporting agency, such as ChexSystems. That can prevent a new bank from approving your account application. If that’s the case, you have options. You can work with the agency to resolve the outstanding issues. At the same time, consider opening a second chance checking account. After a few months building a positive banking history, you’re more likely to be able to open a solid interest-earning account.

How do I build an emergency fund?

1. Calculate the total that you want to save. Use the NerdWallet emergency savings calculator below if you need help figuring out your expenses for six months.
2. Set a monthly savings goal. Instead of focusing on one large savings goal, focus on smaller, attainable monthly goals. Reaching monthly milestones can give you positive momentum and encourage you to keep saving. This can help you keep the habit of saving regularly and make the overall task less daunting.
3. Move money into your savings account automatically. If your employer offers direct deposit, ask if they can divide your paycheck between checking and savings. That way your monthly savings goal can be taken care of without the funds touching your checking account.
4. Keep the change. Use mobile technology to save automatically each time you make a purchase. There are savings accounts and savings-focused apps that link with checking or other spending accounts to round up the purchase amounts on your transactions. The extra amount is automatically transferred to a savings account.
5. Save your tax refund. You get a shot at this once a year — and only if you expect a refund. Saving it can be an easy way to boost your emergency stash. When you file your taxes, consider having your refund deposited directly into your emergency account. Alternatively, you can consider adjusting your W-4 form so that you have less money withheld. If modifying your deductions is a good option for you, you can direct the extra cash into your emergency fund.
6. Assess and adjust contributions. Check in after a few months to see how much you’re saving, and adjust if needed. When you’ve saved up enough to cover six months of expenses, you might consider putting extra cash in investments.

When saving, draw a line between emergencies and everything else. In fact, once you’ve hit a reasonable threshold of emergency savings, it’s a good idea to begin another “rainy day” savings account for irregular but inevitable expenses, such as car maintenance and clothing. If you need help staying organized, consider opening separate savings accounts or subaccounts for different financial goals.

Everyone needs to save for the unexpected. Having something in reserve can mean the difference between weathering a short-term financial storm or going deep into debt.