Money Management

Need new clothes but want to avoid paying high prices? Buying secondhand can save you money. Find out which apps make it easy to buy clothes for less. [[{“value”:”

For many people, buying new clothes can be stressful. Since everyday costs are rising, upgrading a wardrobe while on a budget can be challenging. Buying secondhand can help.

Shopping secondhand is not a new concept, but apps like Vinted, Poshmark, Mercari, and Depop make it more convenient. These apps make it easy to make money on your old wardrobe and save money on your new one. Let me show you how.

1. Vinted

Vinted is a secondhand clothing platform for selling and buying clothes. The mobile app is available for iOS and Android devices. You can download the app for free and search the many items available. Users can search by item, size, brand, and more.

Many items are sold at a discount, given they are pre-loved. You can ask the seller any questions and check their reviews. Buyers pay shipping, and these fees are shown during the checkout process. You can add a small insurance fee to protect yourself, and if anything goes unexpected, Vinted will cover you.

As a seller, Vinted has no selling fees, so what you make is yours to stash in your checking account. After an item is sold, you will be given a prepaid shipping label to use when mailing your package. Once the buyer confirms “everything is ok,” you’ll receive your money.

2. Poshmark

You’ve likely heard of the following app, available for iOS and Android. Poshmark is a popular commerce platform with a community of people selling everything from clothes to home goods. Many users sell discounted pre-loved items as well as brand-new items.

To sell an item, take a photo, add a garment description, and upload it. The buyer pays the shipping cost, so consider this before making a purchase to decide if the overall cost is worth it. You’ll be protected as a buyer if an item doesn’t match the description once received or if it never ships.

3. Mercari

Mercari is another app that connects buyers and sellers worldwide. Mercari is dedicated to its users and encourages them to recycle their items via its platform. This mobile app is available to iOS and Android users.

You can buy items at the price a seller has listed or make an offer. Like other platforms, Mercari has buyer protection. If something is damaged, not as advertised, or missing, you won’t be charged. As the seller, you will receive payment once the buyer confirms everything is OK.

When buying items on Mercari, it’s essential to consider shipping costs. Sellers choose whether to pay shipping or have the buyer cover these costs. If the buyer is responsible for paying shipping costs, a shipping fee will be listed within the item description.

4. Depop

Depop, available for iOS and Android, is a growing marketplace platform for buying and selling clothes, accessories, and more. The company’s mission is to be kinder to the planet and people.

As a buyer, you can browse by item and discover seller shops. When you like something, you can make an offer for less or buy it immediately. Like other platforms, you can message the seller if you have questions. Buyers are protected if an item is damaged, lost, or not as described.

Users must have a Stripe or PayPal account to buy or sell items on the platform. This feature helps to protect buyers and sellers. Looking for ways to boost your income? You can also use Depop to sell your unwanted clothing to earn some extra cash.

You don’t have to buy new

Are you in a tough spot with your personal finances but need to overhaul your closet? Buying from apps like Vinted, Poshmark, Mercari, and Depop can save you money. Whether you need to revamp your wardrobe for a new job or are heading back into the office after working remotely for years, you can get the clothes you need without ignoring your budget.

If you like to thrift, these apps can save you time because you can shop whenever it’s convenient for you. Shopping this way is economically beneficial and good for our planet. Clothing resharing apps like these help limit the amount of waste. You may want to try these apps if you need more clothes while working with a limited budget.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal. The Motley Fool recommends the following options: short June 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy.

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It’s important to feel confident going into retirement. Read on for a strategy that can help you build up a solid nest egg over time. [[{“value”:”

People who don’t make an effort to save for retirement risk struggling financially later in life. Chances are, you don’t want to be one of those people.

That said, many people wonder whether they’ll really have enough money to retire comfortably when their careers wrap up. In a Fidelity 2024 financial resolutions survey, 34% of those feeling more stressed about their finances now than in recent years cite not having enough retirement savings as a major worry.

If you’re not feeling great about the state of your retirement savings, or you’re worried about building savings over time, here’s some good news. If you commit to saving for retirement consistently starting now and your senior years are still pretty far away, you have the potential to build up a lot of savings — without really breaking a sweat.

Small, consistent contributions can go a long way

You might assume that to retire comfortably, you’ll need to start socking away 20% of your paycheck or more in an IRA or 401(k). Of course, if you are able to save at that level, great. But rest assured that you can accumulate a lot of savings without giving up one-fifth of your income or more.

Let’s say you earn $60,000 a year. If you save 5% of your income for retirement, that’s $3,000 a year, or $250 a month.

Invest that sum at an average annual 10% return over the next 30 years, which is consistent with the stock market’s long-term average, and you’ll end up with a savings balance of over $439,000. If you can save and invest that $250 a month over 35 years, you’ll be looking at a balance of $813,000.

But don’t just trust yourself to write a check to your retirement savings at the end of each month. Instead, put the process on autopilot.

Make saving for retirement automatic

The nice thing about 401(k) plans is that they get funded automatically via payroll deductions. So once you sign up, you’ll have money going into your account without you having to do anything.

It pays to arrange something similar if you’ll be saving for retirement in an IRA. Have a portion of your paycheck go into your IRA at the start of each month via an automatic transfer from your checking account. That way, you’re more likely to stay on track.

In other words, let’s say you have $250 heading into your IRA off the bat at the start of each month. If you do that, and you’re tempted to spend $250 on concert tickets at the midpoint of the month, well, maybe you won’t, because that money will have been accounted for already. But that’s a good thing, because you need those consistent retirement plan contributions to end up with ample cash reserves for your senior self.

Take action rather than worry

It’s natural to worry about not having enough retirement savings. But rather than spend time fretting about that, do something about it. Set up that automatic transfer or sign up for your workplace 401(k). The sooner you do, the better.

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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.Maurie Backman 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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How do you plan to use your tax refund? Many Americans use tax refunds as a financial lifeline. See why Americans are hoping for big tax refunds. [[{“value”:”

Do you have big dreams for your tax refund? According to IRS data, as of March 29, 2024, the average tax refund for 2024 was $3,050. There are many financial goals that you could devote that money to — like emergency savings, paying off debt, or opening a CD. But many Americans don’t think of their tax refund as a “nice-to-have” — it’s “must-have” money.

According to a new survey from Trustpilot, conducted by Attest, lots of Americans are counting on getting a big tax refund so they can put that money toward a wide range of everyday expenses and essential needs. Tax refunds are a financial lifeline for many U.S. households. If you’re worried about not getting a big tax refund in 2024, you’re not alone.

Let’s see what Americans told Trustpilot about their hopes and dreams for how to use their 2024 tax refunds.

Most Americans’ finances are impacted by tax refunds

The Trustpilot survey (conducted March 28-29, 2024) found that tax refunds are a big reason for excitement and concern for Americans. Only 13% of Americans said that “nothing” would be impacted by the outcome of their tax filing or the size of their tax refund in 2024.

Most other people are already planning ahead for how to spend, save, and invest their tax refunds — and if they don’t get that money as expected, it’s going to hurt. Among Americans who haven’t filed taxes yet, a total of 19% said they were worried about owing money to the IRS, and 7% said that an extra tax bill could cause them to miss out on paying for household items.

Top personal finance impacts (good and bad) of tax refunds

The Trustpilot survey also asked Americans to share how their financial decisions would be impacted by their tax returns. Some people might be more likely to spend money on certain things, or less likely to afford certain bills, based on the size of their tax refund.

Here are the top eight personal finance impacts of tax refund sizes — the financial decisions that Americans are considering, based on how much money they get back at tax time:

Groceries and household items (35%)Travel/vacations (31%)Dining out (31%)Delaying other bill payments (credit cards, loans, etc.) (26%)Gas and transportation (25%)Streaming services & subscriptions (18%)Putting off medical/healthcare appointments (15%)Daycare/child care (7%)

It’s unfortunate to see that so many Americans are making decisions about whether to buy groceries or household items based on their tax refund amount. While some Americans hope to use their tax refund for fun expenditures like vacations or dining out, others are considering delaying healthcare for lack of a refund. Others are counting on their tax refunds to pay for gas or child care.

If you end up owing money to the IRS, keep in mind that you do not have to go without groceries. If you are experiencing financial hardship, you can ask the IRS to accept an “offer in compromise” — a special deal that lets you settle your tax debt by paying less than you owe. You have to apply for an offer in compromise, and you can qualify based on the amount of tax debt you have and other financial details.

Bottom line

Getting a big tax refund can feel like a windfall of “free money,” but many Americans rely on this one-time cash infusion to help pay for everyday expenses. If you have big plans for your tax refund and you don’t need that money for household items and groceries, you might want to put some of your tax refund cash into a savings account. And if you are struggling to pay your taxes, don’t go without essentials. Keep in mind that the IRS offers payment plans and will accept an “offer in compromise” if you qualify.

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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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Extreme couponing can help you save on certain products, but it’s not necessarily going to make a big difference in your grocery bill. Here’s what you need to know. [[{“value”:”

In the 12-month period ending in February 2024, the average price of food in the U.S. increased by 2.2%. Food price increases like this have been a sore spot for consumers recently. In August 2022, the rate of food inflation was the highest since 1979, with food prices up 11.4% year over year.

If you are struggling with expensive grocery costs, you may be interested in finding ways to slash your bills so you can keep more money in your bank account. Extreme couponing is a technique you might want to try to help you. But, is it actually an effective way to reduce your grocery spending?

As a former extreme couponer myself, here’s what you need to know about whether this technique can help keep you from giving your credit cards too much of a workout at the grocery store.

Extreme couponing can help you save a lot — on certain products

Extreme couponing is the art of combining different coupons to get really cheap prices — and sometimes to get stuff for free. For example, if a drug store is running a buy-one-get-one sale and has toothpaste marked down to $2 a tube and you have a $1 off manufacturer coupon for that brand, you could use two of those coupons on the BOGO toothpaste and end up paying nothing for them.

When you combine coupons strategically, it’s possible to get a ton of stuff for very little money. For example, some cosmetics could recently be had for free from CVS, once you factored in the Extrabucks (CVS money) you got back. The problem is, most of the items you can get for free aren’t really necessities that will help you feed your family.

See, manufacturers usually run sales and offer coupons to entice you to try out new novelty products or to get you to buy luxury items (like makeup). But, coupons are rarely available for the basic essentials most people buy at the grocery store. After all, when was the last time you saw Chiquita put out a coupon for bananas or King Arthur offer a coupon for flour?

So, while you can try out extreme couponing to get certain items at no cost, you can’t count on it to be a consistent, effective way to lower your grocery bill in 2024.

What are some better ways to reduce your spending on groceries?

So, what if you’re struggling with high food inflation and want to cut costs on groceries? What can you do instead?

One option is to join a warehouse club if you can make use of bulk purchases. Clubs like Costco sometimes offer cheap prices on staples, such as ground beef chubs for as low as $2.99 a pound. You’ll likely want to visit your warehouse club a few times, though, to make sure it has the items you usually buy at enough of a discount to justify the membership fees.

You should also consider meal planning, sitting down with the sales flyers and planning a week’s worth of meals around them. This can help you reduce waste and buy items at rock-bottom prices.

These techniques are likely to take less time than extreme couponing and be more effective, so give them a try if your food costs have become a budget burden.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Missing debt payments can hurt your credit big time. Read on for ways to avoid that unwanted scenario. [[{“value”:”

We’re all human. It’s conceivable that in the course of your life, you may end up missing a debt payment, whether it’s a check to your mortgage lender or your auto loan issuer. But being late with a debt payment has the potential to cause serious financial damage, so it’s a scenario worth avoiding when possible.

Missed payments aren’t all that uncommon

A December 2023 survey by Primerica reveals that nearly 18% of middle-income consumers missed a mortgage, rent, car, or other debt payment over the previous year. But that’s a mistake that could cause extensive damage to your credit score.

Any time you’re late with a bill that gets reported to the credit bureaus, like a credit card or installment loan payment, your credit score has the potential to take a hit. If you blow off a payment completely (as opposed to making one, say, 30 to 60 days late), the damage is apt to be even worse.

Once your credit score takes a dive, you may find it difficult to get approved for new loans or credit cards. You may also end up with borrowing rates that aren’t so favorable — meaning, they cost you a lot of money.

And speaking of costing yourself money, sometimes, missing a payment could result in a late fee or penalty that only adds to your costs. So imagine you’re late making a $500 car payment due to a lack of cash. By not making it on time, you risk having to pay more than $500, thereby worsening the situation.

Lower your risk of a missed payment

There are a few things you can do to minimize your risk of missing a debt payment. First, for fixed loan payments — for example, your mortgage — set up your bills to autopay out of your checking account. Also, track your spending and account balance during the month to make sure you have enough money in there to cover your bills.

As for your credit cards, because you’re not handing over cash each time you make a purchase, it can be difficult to keep track in your head of what you’re spending week after week. So a good bet is to log into your credit card accounts weekly and note your balances. If they start to climb, you’ll know to stop making charges so you don’t risk being unable to make your minimum payments.

If you do think you’ll have to miss a payment due to a lack of funds, don’t just skip it and hope no one notices. That’s not going to happen. Instead, get ahead of the problem.

Contact your credit card company or lender, explain the situation, and see what options you have. If it’s your first late or missed payment, you may get some leeway, such as a grace period to pay before financial consequences ensue.

All told, missed debt payments can cost you money in terms of fees and penalties. But they can cost you even more money due to credit score damage that results in more expensive borrowing. It’s best to do what you can to make your payments on time, all the time.

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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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Are you afraid to file taxes? See what Americans fear most about the IRS in 2024 — and how to get tax help, IRS payment plans, and more. [[{“value”:”

Tax season can be a time of great trepidation for Americans, especially if you owe money to the IRS. Filing taxes can sometimes feel intimidating. No one wants to get hit with an unexpected tax bill, especially if you had big plans for a tax refund.

A new survey from Trustpilot conducted by Attest asked Americans about their biggest fears when filing taxes in 2024. Let’s look at a few reasons why Americans are afraid to file taxes, and how you can overcome your tax stress.

1. Not knowing how to file taxes correctly

According to the Trustpilot/Attest tax season survey, the biggest reasons why many Americans have not filed taxes are related to not knowing how, or not having confidence in filing correctly:

13% of Americans said they’re “not confident” in filing taxes8% don’t know where to find the resources to file taxes accurately

Did you know: If you need help filing your taxes, the IRS can connect you to free volunteer tax help in your local area. There are two official IRS programs, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). You don’t have to go it alone. Free tax help is available through these programs for seniors, lower-income taxpayers, people with disabilities, and people who have limited English-speaking ability.

2. Owing money to the IRS that they can’t afford to pay

If you have to pay extra taxes on April 15, this can be an unpleasant surprise. Especially during times of high prices and expensive groceries, some Americans worry that an extra tax bill could make it hard for them to afford household necessities.

Among the Americans who have not yet filed taxes, the Trustpilot survey found:

12% worry that if they owe extra taxes, they won’t be able to afford it7% worry that if they owe extra taxes, they won’t be able to afford household items that they need

Did you know: In case you do end up owing taxes on April 15 and can’t afford to pay, the IRS offers payment plans. You can set up a short-term or long-term payment plan with the IRS to pay off your tax debt — but you will have to pay interest and fees based on the amount of tax you owe and the duration of your payment schedule.

Another option to pay off your tax debt is to ask the IRS for an “offer in compromise.” This lets you settle your tax debt for less than you owe. But you have to apply and be approved for an offer in compromise. The IRS will consider your application based on your income, amount of tax owed, and how much financial hardship you are experiencing from the tax debt.

3. Not getting a big enough tax refund

Even if you don’t owe extra taxes on April 15, many Americans have big plans for what they hope will be big tax refunds. The average 2024 tax refund (as of March 29) is $3,050; this can be a significant windfall for many people. A sudden influx of “free money” can help you pay off debt, make a big purchase, or invest for the future.

Unfortunately, some Americans are worried that their tax refund won’t be big enough. According to the Trustpilot survey, here are the biggest personal finance impacts that Americans said will happen to them if they don’t get a sizable tax refund:

There would be an impact on their other purchase decisions (45% of respondents)Won’t be able to afford household items such as groceries (21%)Would consider delaying bill payments toward cost-of-living expenses (20%)Putting off medical/healthcare appointments (15%)Would consider delaying loan payments (11%)

Did you know: In case you get a surprise tax bill in 2024, you can try to correct the situation for next time. The best tax software can help you understand why your tax bill is the amount that it is, and help you plan ahead for next year. You might need to adjust your W-4 withholdings at work, so that more tax gets withheld from your paycheck.

Bottom line

Tax season doesn’t have to be scary. If you qualify based on income, you can use free tax software or get professional tax help from IRS volunteer programs. Getting an unexpected tax bill can be discouraging, but you have options to set up a payment plan with the IRS, or even ask to settle your tax debt in case you’re having financial trouble. You shouldn’t have to go without medical care or groceries because of a tax bill. Apply for IRS Free File or other tax help if you qualify, and look for ways to plan ahead for next year.

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This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

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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