Money Management

Being able to work remotely has a lot of perks. Should you be willing to give them up? Read on to learn more. [[{“value”:”

Before the pandemic, remote work was something “those lucky people” got to do. Or, it was largely reserved for people who were self-employed.

Nowadays, though, a lot of people are doing their jobs remotely. And folks in that boat are no doubt enjoying the convenience, as well as the cost savings involved.

If you’re working remotely now, you may be loath to give it up. But what if you were forced to make a tough decision — return to the office or say goodbye to your job?

Data from Clarify Capital finds that 24% of workers would be willing to return to in-person work to avoid being laid off. But is that the right move for you?

The downside of giving up remote work

Some people prefer to work in an office than to work from home. The former setup might make it easier to collaborate with others and enjoy some social interaction that’s not limited to meetings on a computer. But if you’re someone who prefers remote work and you’re asked to return to an office, you should know that doing so could have negative financial consequences.

For one thing, commuting to work is apt to cost more than staying home. So you may find that your credit card bills are higher when you account for expenses like parking and gas.

Also, having to do your job from an office could mean having to pay for services that you’re not paying for now. You may, for example, need to hire a dog-walker if your office is too far away to stop at home during lunch to take care of your pup. Or, you might need to pay an after-school babysitter to meet your kids at the bus stop and look after them until you’re back home from your evening commute.

All told, these expenses can really add up. So if you’ve been working remotely since the start of the pandemic and are suddenly asked to return to an office, you may want to try to negotiate a pay raise to cover your added costs. And if that doesn’t work, you may want to consider finding a job that either lets you work remotely, or requires you to show up in person but pays you more.

Your quality of life might suffer, too

You may be willing to bear the financial consequences of returning to an office if it means getting to keep your job. But be mindful of the personal consequences that might ensue.

Commuting to work could mean spending more time on the road, leaving you with less time to do household tasks and chores. And all told, a return to the office could wreak havoc on your work-life balance and mental health.

As such, if you’re given an ultimatum, you may want to return to in-person work rather than risk being let go. But at the same time, you may also want to start job hunting so you can find a role that allows you to do your job from any location you please.

You can potentially cut back on different expenses if you’re suddenly spending $200 a month to commute after years of spending $0. Similarly, you can reduce your spending to hire a dog walker or babysitter as needed.

But you can’t as easily pay for the lost downtime you might experience if your work schedule changes for the worse. So if you have no choice but to return to in-person work, don’t resign yourself to that setup forever — not when there are plenty of companies out there who are still fans of remote employment.

Alert: our top-rated cash back card now has 0% intro APR until 2025

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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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Cash back credit cards can help you save money, but they’re not perfect. Make sure you know about their drawbacks before getting one. [[{“value”:”

Cash back credit cards are a popular choice. The most popular, in fact. Over half (56%) of Americans have at least one cash back card, according to a credit card study by The Motley Fool Ascent. That’s more than any other type of credit card.

It makes sense, because there’s a lot to like about cash back cards. You can save money with them, and they’re as easy to use as it gets. But they also have a few drawbacks that aren’t discussed often. If you’re thinking of opening a new credit card, it helps to know about these issues so you can make the right choice.

1. They often have limits on bonus categories

Many cash back cards have bonus categories where they earn more than their regular rate. Bonus rates usually range from 2% to 6%, depending on the card. Here are a few examples of bonus categories some cards offer:

Gas and groceriesDining and restaurantsOnline shopping

The problem is that there’s often a limit on bonus categories. For example, a card may earn bonus cash back on groceries, but only on up to $6,000 in spending per year. After that, it only earns its regular rate. Other common limits include $500 per month, or $1,500 to $2,500 per quarter.

If you’re interested in a card with bonus categories, check if it has any limits on the bonus cash back you can earn. Make sure the limits work for you. If they’re too low, you may want to go with a card that earns an unlimited 2% back on purchases instead.

2. They don’t have as many extra benefits as travel credit cards

Cash back cards are much cheaper than travel credit cards, on average. Many of them are no annual fee cards. And even cash back cards with an annual fee normally cost less than $100 per year.

That’s good if you don’t want to pay much, or anything, for a credit card. But it also means that cash back cards usually don’t have as many extra benefits, such as:

Access to airport loungesA spending credit for a Global Entry/TSA PreCheck membershipA free night certificate at a hotel chain (a popular perk on hotel credit cards)

Those are all features you can find with popular travel credit cards. If you don’t travel that much, then you won’t need them. On the other hand, if you like to travel, you’re probably better off getting a travel card instead of a cash back card.

3. Some of them have redemption minimums

Not every card issuer makes it as easy as it should be to use your cash back. Some of them only let you redeem cash back if you meet a redemption minimum. Minimums generally range from $5 to $25 on cards that have them. Other credit cards don’t have them and will let you redeem any amount, including as little as $0.01, at any time.

Redemption minimums are frustrating because you need to wait to use your cash back. If you ever stop using your card, and you haven’t earned enough to meet the minimum, your cash back could end up sitting around unused.

This doesn’t need to be a dealbreaker if you really like a card, but make sure to check if it has a redemption minimum so you know what to expect. And if you’re not sure which card to choose, seeing which one makes it easiest to redeem your cash back is a good way to break the tie.

Just about every credit card has its drawbacks, so none of these are reasons to rule out cash back cards entirely. Keep them in mind as you look for a new card, so they don’t catch you by surprise.

Alert: our top-rated cash back card now has 0% intro APR until 2025

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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Costco is known for offering low prices, but that’s not all. See why you should buy from Costco even if other retailers are cheaper. [[{“value”:”

Costco is known for offering great deals on everyday items like groceries and big-ticket purchases like furniture, appliances, and even cars. Saving money is always good, and I’m in favor of it. If you’re considering a Costco membership because you want to save money, you won’t be disappointed.

But from my experience, the best reason to shop at Costco is not saving money: it’s saving time. Costco has given me uncountable hours of my life back, instead of losing time and energy on frustrating, ineffective shopping trips.

Let’s look at why the most important reason to shop at Costco isn’t about dollars — it’s about more hours in the day, and happier days in your life.

Costco is my shopping “concierge” and curator

Time is money, and I don’t want to spend too much time shopping and comparing prices and fretting over customer reviews. I use Costco as my “concierge” and curator of shopping. Yes, it has low prices, but the really big reason why I love Costco is that Costco sells awesome stuff, and I know it’s going to be a good deal. I shop at Costco because I trust that it will curate high-quality brands and products for me; even the Costco private label Kirkland brand has become a mark of quality.

Do you feel time-starved and over-extended by your daily life responsibilities? Do you not have time to research every purchase? Costco saves you time and gives you life back (not just cash back). You can trust Costco to present you with good options for products.

Costco is like a cool friend that helps you get your life sorted out: “This pair of pants will look good on you, this leather sectional will be great in your living room, and have you tried this trail mix?” This relieves the burden of researching and comparing and deciding. Costco takes a load off of your mind.

And in case a Costco product turns out to not be the right size or the right fit for your life, you can take it back! Costco has an easy, generous return policy.

Costco: Great for price-sensitive shoppers and time-sensitive shoppers

There are a few types of bargain hunters in the world. Some people are price-sensitive bargain hunters: they love the process of looking for deals, finding lower prices, and doing price comparisons to get the right price. Other people are what I’d call “time-sensitive” bargain hunters — they want a good price, but they’ll settle for a slightly higher price if they can get the right product and save time.

At this point in my life, I’m a “time-sensitive” bargain hunter. My biggest problem is that I don’t have enough time. I work hard, I work long hours, I’m often thinking about work even when not working, and I’m at a stage of life where I’m busy with my kids and our family life and taking care of the house. I don’t have much time for hobbies, or volunteering in my community, or physical fitness, or basic self care, let alone comparing prices. (And this is all fine! I love my life and family, and this is the path I chose; but you see what I mean?)

A lot of American parents, and Americans in general, probably feel this same sense of tension about not having enough hours in the day. If you have a full-time job and a commute, if you’re caring for children or pets or older adult loved ones, if you have youth sports and home improvement projects gobbling up your weekends…how much time do you really have left to bargain hunt for your new refrigerator or get the lowest possible price on big-ticket purchases like a new set of tires?

This is how Costco helps millions of Americans: it takes the price shopping off your to-do list. You just have to trust Costco and have faith that Costco is giving you a good deal. And not every product that Costco sells will have the lowest price in town or get five-star reviews. Definitely do your research for a big purchase like a major appliance; sometimes a different store will offer a better-rated product or a slightly lower price.

But for so many everyday grocery items and higher-end affordable luxuries, Costco is not just a lower-priced shopping option — it’s a time-saving, life-simplifying option.

Bottom line

Yes, Costco has cheap hot dogs and rotisserie chickens. Yes, you can save money at Costco on everything from yogurt to eyeglasses, from pet insurance to cars. But the biggest value for me, and probably for a lot of time-starved, busy Americans, is that Costco helps you save time.

Instead of spending hours on research and price shopping and bargain hunting, Costco puts great deals right in front of you. Costco curates great deals on high-quality merchandise, so you can feel confident that everything you buy is going to fit your budget and make your life a little better.

Alert: our top-rated cash back card now has 0% intro APR until 2025

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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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[[{“value”:”Image source: Upsplash/The Motley Fool
Home prices continued to rise last year, with the average value increasing by 4.7%. But in some areas of the country, houses are actually losing value.Homes impacted by climate-related risks like flooding and fire are seeing their values fall. CNBC recently said that some Americans don’t get their homeowners insurance policies automatically renewed because of these risks. And their property values fall up to 12% when they don’t.Making matters worse, some insurance companies aren’t renewing homeowners insurance policies because of these risks. In California, State Farm and Allstate no longer issue new policies for homeowners insurance because of wildfires. And in Louisiana and Florida, some homeowners are having trouble getting new policies renewed because of flooding risks.Even if your homeowners insurance policy hasn’t been canceled, it’s likely increased in price. Homeowners insurance premiums jumped an average of 11% in 2023. If you need cheaper insurance, here are a few things you can do.Shop around and talk with an agentWhether your insurance policy was canceled or you’re just looking for a better deal, it pays to shop around. Consumer Reports says only 13% of homeowners shop around for insurance, but 39% of those who comparison shopped found a better price.
Read more: check out our picks for best homeowners insurance companies
It’s easier than ever to do this by shopping online and requesting rate quotes from insurance providers. It’s a good idea to get quotes from at least three companies so you can compare them effectively.If you don’t have the time to do this, you may want to work with an independent insurance agent. These agents can find policies from competing insurance companies, making it more likely that you’ll find the best deal.Assess your current coverageIf you’re at risk of having your policy canceled or you’re looking to save money on your insurance premiums, it’s a good idea to see what your policy covers. You may be able to drop coverage for something you don’t need, which can lower your premiums.Raising your deductible can also help. An analysis by Insurance.com found that increasing your deductible from $500 to $2,500 could lower your premium by about $500 annually.Bundle your insuranceMany companies offer discounts on insurance if you bundle your homeowners insurance policy (or renters) with your car insurance policy. While the percentage varies, many consumers often save 20% off their insurance premiums by bundling, and can save up to 25%.If you’re paying two separate providers for your home and auto policies, contact both companies, get quotes for their bundled policies, and choose the one with the most coverage for the best price.While you have them on the phone, ask what other discounts you may be eligible for. Many companies offer discounts if you’re a senior citizen, your home has a security system, and even if your neighborhood has an HOA.Buy your policy through CostcoAs if there weren’t enough reasons to love Costco already, the company offers home and auto insurance to its members — and it might be cheaper than what you’re currently paying.An analysis by This Old House found that Costco’s homeowners insurance, issued by American Family Insurance, costs just $73.50 per month on average. That’s about half the cost of the national average.As an added bonus, Costco also offers members some special perks if they sign up for homeowners insurance, including identity theft protection, glass repair and replacement, and home lockout assistance.Most homeowners won’t lose their insurance policies to climate-related events, but that doesn’t mean you shouldn’t try to find a better deal. Spending a little time comparison shopping, considering a higher deductible, and bundling your home and auto policies are all great ways to lower your homeowners insurance costs.Our picks for best homeowners insurance companiesThere are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.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.Chris Neiger 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.”}]] [[{“value”:”

Home prices continued to rise last year, with the average value increasing by 4.7%. But in some areas of the country, houses are actually losing value.

Homes impacted by climate-related risks like flooding and fire are seeing their values fall. CNBC recently said that some Americans don’t get their homeowners insurance policies automatically renewed because of these risks. And their property values fall up to 12% when they don’t.

Making matters worse, some insurance companies aren’t renewing homeowners insurance policies because of these risks. In California, State Farm and Allstate no longer issue new policies for homeowners insurance because of wildfires. And in Louisiana and Florida, some homeowners are having trouble getting new policies renewed because of flooding risks.

Even if your homeowners insurance policy hasn’t been canceled, it’s likely increased in price. Homeowners insurance premiums jumped an average of 11% in 2023. If you need cheaper insurance, here are a few things you can do.

Shop around and talk with an agent

Whether your insurance policy was canceled or you’re just looking for a better deal, it pays to shop around. Consumer Reports says only 13% of homeowners shop around for insurance, but 39% of those who comparison shopped found a better price.

It’s easier than ever to do this by shopping online and requesting rate quotes from insurance providers. It’s a good idea to get quotes from at least three companies so you can compare them effectively.

If you don’t have the time to do this, you may want to work with an independent insurance agent. These agents can find policies from competing insurance companies, making it more likely that you’ll find the best deal.

Assess your current coverage

If you’re at risk of having your policy canceled or you’re looking to save money on your insurance premiums, it’s a good idea to see what your policy covers. You may be able to drop coverage for something you don’t need, which can lower your premiums.

Raising your deductible can also help. An analysis by Insurance.com found that increasing your deductible from $500 to $2,500 could lower your premium by about $500 annually.

Bundle your insurance

Many companies offer discounts on insurance if you bundle your homeowners insurance policy (or renters) with your car insurance policy. While the percentage varies, many consumers often save 20% off their insurance premiums by bundling, and can save up to 25%.

If you’re paying two separate providers for your home and auto policies, contact both companies, get quotes for their bundled policies, and choose the one with the most coverage for the best price.

While you have them on the phone, ask what other discounts you may be eligible for. Many companies offer discounts if you’re a senior citizen, your home has a security system, and even if your neighborhood has an HOA.

Buy your policy through Costco

As if there weren’t enough reasons to love Costco already, the company offers home and auto insurance to its members — and it might be cheaper than what you’re currently paying.

An analysis by This Old House found that Costco’s homeowners insurance, issued by American Family Insurance, costs just $73.50 per month on average. That’s about half the cost of the national average.

As an added bonus, Costco also offers members some special perks if they sign up for homeowners insurance, including identity theft protection, glass repair and replacement, and home lockout assistance.

Most homeowners won’t lose their insurance policies to climate-related events, but that doesn’t mean you shouldn’t try to find a better deal. Spending a little time comparison shopping, considering a higher deductible, and bundling your home and auto policies are all great ways to lower your homeowners insurance costs.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

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.Chris Neiger 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.

“}]] Read More 

Some money mistakes are easier than others to overcome. These moves could set you up for real financial hardship. [[{“value”:”

Money mistakes are a part of life. No one is perfect when it comes to managing their personal finances, and you don’t have to be.

But, certain errors are harder than others to recover from. In particular, if you make any of these three money moves, you could be setting yourself up for real problems.

1. Paying your bills late

Paying your bills late consistently can cause you a host of issues. For one thing, you could seriously damage your credit, as a single payment on a credit card that’s more than 30 days late could cause your score to drop by over 100 points.

Paying late could also result in your lender charging added fees, which makes your debt more expensive. If you really fall behind, you could also face foreclosure or repossession, which could mean losing your home or vehicle.

You don’t want to pay late, so set up autopayments for at least your account minimums to ensure this doesn’t happen to you. If you can’t pay as a result of financial hardship, reach out to your creditors ASAP to find out what your options are. They might be willing to work with you on a payment plan or even put your loans into forbearance temporarily until you get back on your feet.

2. Always carrying a balance on your credit card

Carrying a balance on your credit card can get really expensive. The average credit card interest rate is 21.47%. That’s a high rate. If you are consistently carrying a balance, you’re going to waste a lot of money over time.

Let’s say you pretty much always have around a $5,000 balance on your card at any given time. If your card has a 21.47% rate, you’d pay around $91.98 in interest per month. If you do this for months on end, you can see why you would end up wasting far too much of your hard-earned cash.

Instead of paying your card issuer interest forever, try to repay any balances you currently owe ASAP by making payments that are larger than the minimum due. Moving forward, try to live within your means by making and sticking to a budget so you won’t charge more than you can afford to pay off in each billing cycle.

3. Skipping retirement investing

Finally, skipping retirement investing could be a real problem that you regret. Eventually, you’re going to get too old or sick or tired to work. And, at that point, you must have money to supplement Social Security. Your retirement benefits only replace about 40% of your pre-retirement income. It’s really hard to live on so little, especially if you have costly health issues as a senior.

To make sure you have the money you need to retire, start saving in a 401(k) or IRA you open at a brokerage account ASAP. Even if you can’t save a lot right now, small sums add up over time.

Fortunately, you now know how to avoid three major money mistakes that will almost certainly lead you down a dark financial path.

Alert: our top-rated cash back card now has 0% intro APR until 2025

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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