Money Management

Hybrid car ownership can work to your advantage. Read on to see how. [[{“value”:”

These days, a lot of drivers are taking the plunge and buying electric vehicles. And the idea of doing so might appeal to you.

But there’s another option you may want to consider: a hybrid car. My husband and I owned a 2007 Toyota Prius (the world’s first mass-produced passenger hybrid vehicle) that we basically drove into the ground and only replaced last year after a 16-year run. And our experience was largely a good one. Here are some of the benefits you might reap if you decide to purchase a hybrid yourself.

1. You might spend a lot less compared to an EV

Edmunds says that a hybrid car can cost as much as 20% more than a car powered by a traditional gas engine. However, Kelley Blue Book research found that in December of 2023, EV buyers spent an average of $50,798 on fully electric models. When you compare that to the

2024 Toyota Prius hybrid, which starts at $28,745, it’s clear that with a hybrid, you have the potential to spend a lot less. That’s a good thing at a time when auto loan rates (and borrowing costs in general) are up.

2. Your insurance costs may be manageable

The more money you pay for a vehicle, the more you’re likely to be charged for auto insurance premiums. That’s because a more expensive car will cost your insurer more money to replace or repair in the event of an accident. While you might pay a bit more to insure a hybrid vehicle compared to one that has a gas engine, your car insurance costs might also pale in comparison to what you might spend to insure an EV.

3. You don’t need a special mechanic when your car needs maintenance

Back when my husband and I bought our Prius, we were pretty locked in to visiting our local Toyota dealership for maintenance and repairs. A lot of general mechanics back then didn’t have the tools or knowledge to work on hybrid vehicles.

These days, though, many standard auto shops are equipped to work on hybrids. That means you may find it more convenient to schedule a maintenance appointment when you need to, and you may not have to spend as much to address issues that arise.

By contrast, even though EVs are becoming increasingly popular, not every auto shop is able to service them. If you buy an EV instead of a hybrid, the cost of maintenance could be more than you bargained for.

4. You can enjoy the convenience of not having constantly fill up or charge your car

When life gets busy, it can be a burden to constantly have to run to the gas station. Similarly, when you’re heading to a destination, it’s not always convenient to stop and plug in your car to charge like you do with an EV.

With a hybrid, you generally get superior gas mileage so each fill-up lasts longer. And when you do start to run out of gas, you fuel up for 10 minutes at the pump, as opposed to having to wait potentially hours for your car to charge.

Another option to consider

There are many benefits to owning a hybrid car, so despite the higher cost, you may want to consider one over a gas engine-powered car. And you may also want to consider a hybrid car over an EV for the cost savings and convenience of being able to just fill up and go.

That said, there may be one other option to think about — a plug-in hybrid.

My husband and I have one of these now, and while we did pay up for it, we get about a 40-mile range where our car can run on its charge before we need to use gas. This means that we’re spending less on fuel. And at the same time, our car is suitable for long road trips because we don’t have to stop to charge it — it simply reverts to gas once there’s no charge left. So you may want to consider a plug-in hybrid if you’re tempted to go electric but aren’t sure it’s the right time to do so.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Wealth in the United States is on the rise. Discover how much money it takes to be considered wealthy and what you can do to build your net worth. [[{“value”:”

Loud budgeting may be trending lately, but for the most part, people keep their finances private. Some discuss their salaries and broad financial goals. There aren’t many who share the details of their banking and retirement accounts.

So it’s understandable to be curious about what it takes to be wealthy. You may want to know if you’re in that group and, if not, how much money you need to get there. While there’s no perfect definition of wealth, we do have enough recent data for a reasonable idea.

The average level of wealth in the United States

Americans had a median net worth of $192,700 in 2022, according to net worth data gathered by The Motley Fool. Net worth, to clarify, is the value of all your assets minus your liabilities (debts). If you’re above that number, then you’re above average in terms of wealth.

But most people see their net worth grow as they get older. Young adults have the lowest average net worth, because they’re starting out in their careers and haven’t had time to build wealth yet. If you’re 30, it wouldn’t make much sense to compare your net worth to that of people in their 40s and 50s.

Here’s the median net worth broken down by age group:

Younger than 35: $39,04035-44: $135,30045-54: $246,70055-64: $364,27065-74: $410,00075 or older: $334,700

Net worth isn’t everything. Even if you have an above-average net worth, it doesn’t necessarily mean you’ll feel wealthy. And if your net worth is below average, it’s not something to feel bad about. It’s one financial metric, and it can change quite a bit if much of your wealth is in stocks or your home.

What you can do to build wealth

While there’s no need to obsess about your net worth, building wealth is important. It’s how you can reach your financial goals and save enough money to retire when you want.

It all starts with spending less than you earn. If you’re able to save money every month, you’ll build wealth. Make sure your monthly expenses aren’t eating up too much of your income. Ideally, your regular bills should take up no more than about 60% of what you earn. If so, you’ll have plenty of money left over to save, invest, and spend on yourself.

When you have your spending dialed in, here are a few more steps you can take to build wealth faster:

Invest in stocks. The stock market has been one of the biggest wealth creators, with an average return of about 10% per year over the long run. You can buy individual stocks if you want to set up a portfolio yourself or index funds that invest in the stock market for you.Contribute to retirement accounts. While you can invest through a regular brokerage account, it’s better to start with retirement accounts, because they offer tax advantages. Individual retirement accounts (IRAs) are an option that just about anyone can use, and you can also contribute to a 401(k) if your employer offers one.Make saving and investing automatic. Decide how much you want to add to your savings account and investment accounts every month and automate it. You’ll save time, and there’s no risk of forgetting to do it.Avoid high-interest debt. Some types of debt can be a good decision, such as getting a mortgage to buy a home. But credit card debt and any other high-interest debt is going to hold you back for as long as you’re paying it off.

Improving your finances isn’t an especially complicated process, but it takes time. If you follow those steps and make them habits, you’ll be amazed at the results.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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There are a lot of reasons to open a new credit card. Take a look at one less conventional case. [[{“value”:”

There are a lot of good reasons to get a new credit card. A great welcome bonus is one of the most compelling ones, for me. And I’ve opened one or two for the intro APR offer.

But every now and then, the reason I apply for a new card is less monetarily driven. For example, last year I obtained a particular travel credit card not for its welcome bonus — though I made sure to earn that — but for one specific perk: early boarding.

I needed guaranteed overhead space

During my house hunt last year, I flew a lot. We were shopping for houses across the country, so every step of the process required a plane trip — a few of them very last-minute.

While we always fly carry-on only, we also prefer to fly first or business class (we think it’s worth the extra rewards points). This means we always have plenty of dedicated overhead space. But flying back and forth to buy a house, our budget — and timeline — meant we weren’t springing for the upgraded seats.

Unfortunately, when you’re in the second-to-last boarding group, the chances of finding overhead space go down with each person in line ahead of you. The solution? Early boarding that lets you jump up in the line.

Every flight we took with this airline, we were on the plane in the second boarding group. We always had plenty of overhead bin space.

Personal vs. business credit cards

For this particular airline, early boarding was a perk of the cobranded airline card. Even better, in my case, it was a perk of the business credit card, too.

Why was that better? Well, because I was in the process of getting a mortgage loan. Any major changes to my credit history during the loan process could have derailed things. And this includes opening a new personal credit card.

Most small business credit cards, on the other hand, don’t report to your personal credit. (Some issuers do, however, so be sure to check before you apply.) So the only impact to your personal credit from a new small business card is typically the initial credit check. As long as you keep hard credit pulls to a minimum, the credit score impact from that is small.

The costs of opening a new credit card

Even if you’re not in the middle of getting a mortgage, you should always think carefully before applying for a new credit card, especially for a silly reason. (I’m looking at you, pitiful store credit card bonuses.)

Opening a new card impacts your credit score in a few ways:

The hard credit pull: As mentioned above, the credit check when you apply appears on your credit history as a hard credit pull. These can ding your credit score for up to two years. One or two won’t hurt, but more can have a bigger impact on your score.The average account age: Credit scoring algorithms look at the overall age of your credit history, but they also take into account the average age of your accounts. Each new account brings your average age down, which can negatively impact your score.The new credit factor: Up to 10% of your score is based on “new credit,” which essentially looks at how many new accounts you’ve recently opened. A lot of new accounts in a short period of time is a red flag for creditors (and scoring models).

Is a new card worth it?

In general, I always ask myself two questions when deciding if a specific card is worth opening:

Does it offer a lot of monetary value?Does it offer a unique, useful perk?

If it doesn’t give me one (or, ideally, both), then I look for other cards that will better fit my needs.

Opening a new card isn’t dire, but it definitely has consequences. Make sure that what you’re getting from the card — even if it’s just peace of mind you’ll find overhead bin space — is worth the potential downsides.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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