Money Management

The value of investments can fluctuate, but don’t panic. Find out how to tell when you actually have a problem. [[{“value”:”

You’ve probably heard that investing money is a good way to get rich. After all, if you open a brokerage account, buy stocks, and earn returns on them, you’ll end up with more money — and sometimes a lot more money — than you put in.

And indeed, it absolutely is the case that investing is one of the best ways to grow your net worth. It can be a whole lot smarter than just sticking all of your extra cash into a savings account, where your returns are limited. But the big question is, what happens if your investments don’t perform well? Should you worry if you’re losing money instead of making it?

Here’s what you need to know if you’re coping with a portfolio balance that’s smaller than you’d like it to be because of some poorly performing assets.

Even good investments can sometimes lose money

The harsh reality every investor needs to face is that sometimes they can have a great investment and do everything right, and still lose money — especially in the short term. This is because factors beyond their control can impact the performance of even the best investment.

For example, take a look at the chart below showing the performance of the S&P 500, which is a financial index of 500 of the largest U.S. companies. It’s objectively one of the safest investments out there, as it’s consistently produced 10% average annual returns over the long term and it basically involves betting on the American economy. You can invest in it by buying shares of an S&P 500 ETF (exchange-traded fund).

But look how it does in the short term. In some years, investors may have suffered close to a 20% loss.

If you had money in this investment during a bad year, this doesn’t mean you made a bad investment; it means that you had bad luck on timing. But as long as you held onto the asset, you’d almost certainly make back all you lost and more over time.

Consider how confident you are in your investment choice

While it’s natural to feel worried if you see your investment account balance falling, you absolutely should not be concerned as long as:

You made an informed investment choice and bought an asset with a solid performance record or with solid future potential, based on extensive research into the asset.You have a long investing timeline (around five or more years until you’ll need the money), so you have time to wait for a market recovery.Nothing fundamental has changed about your investment that would call its future performance into serious question (such as the company’s leader and visionary dying if you’re invested in an individual company).

If your investment is still a good one that’s performing badly because of natural market cycles or economic conditions unrelated to its fundamental traits, then you shouldn’t be worried.

You should stay the course, wait out the downturn, and feel confident that your investment will make money over time. This is the very reason why long-term investors tend to do better with investing in the end.

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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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Women may be lacking in emergency savings. Read on for ways to catch up. [[{“value”:”

It’s important to have money in a savings account at all times in case emergency expenses arise. But recent data from the Transamerica Center for Retirement Studies shows that many women are ill-equipped to handle a period of financial turbulence.

The median emergency fund total for women is $2,400. But that’s really only an adequate emergency fund for someone with extremely low monthly living costs — for example, someone living with their parents and not paying rent.

As a general rule, a solid emergency fund is one with enough money to cover a minimum of three months of essential expenses. The logic is that in the event of a layoff, it might take three months (at least) to find another job, so it’s important to have savings to fall back on.

Most people who pay rent on top of additional bills can’t cover them all with just $800 a month. As such, generally speaking, $2,400 is not an adequate amount of money to have on hand for unplanned expenses or a period of unemployment. So if your emergency fund needs serious work, here are a few tactics to employ.

1. Rethink your expenses

You may need to live a more pared-down lifestyle for a bit of time to give your emergency savings a lift. Do a thorough assessment of your bills and see which ones you can shed with the understanding that this isn’t forever.

The idea of not being able to dine out with friends three times a week like you do now may be upsetting. But you might only have to cut that expense out for the next few months to get your emergency fund to a better place.

You might also have options for shrinking your current essential expenses. If you rent an apartment, see if your landlord will allow you to share it with a roommate. And again, you don’t have to sign up to do so indefinitely. Perhaps three months of split rent could get your emergency fund to where it needs to be.

2. Fight for a raise

A big reason why women may be generally lacking in the emergency fund department is that they’re statistically paid less than men. A good way to boost your emergency fund is to snag a raise and put your extra pay in the bank.

RELATED: Best Checking Accounts

Start researching to see what the typical salary is for a job like yours. You can use sites like Glassdoor as a resource. If you can prove the average salary for your role is $75,000 and you’re only making $62,000, that gives you a pretty good leg to stand on.

3. Pick up a side hustle

You may, unfortunately, have to do your part to make up for the gender pay gap. If fighting for a raise doesn’t work out in your favor, you may want to seek out a better paying job. But while you do, also consider a side hustle.

Once again, this is something that can be temporary until you’re better set with cash reserves. But if you’re able to do something like care for pets in your spare time, babysit, tutor, or deliver food, you may find that your savings can grow to a much better place.

Plus, you never know what skills you might build when working a side hustle. And those could give you the confidence you need to go out and find a job that will pay you what you’re worth.

It’s not shocking to see that women don’t have a lot of emergency savings to fall back on. But it’s important to do your part to boost your cash reserves before your next financial crisis arrives.

Being ill-prepared for emergencies is a good way to land in debt. That has the potential to upend your finances for years on end, and you really do deserve 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.The Motley Fool has a disclosure policy.

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Travel is rarely cheap, and being a digital nomad doesn’t change that. Here are a few ways to keep those costs down. [[{“value”:”

If you’re ever booked a long vacation — or, heck, even a short one — you know the costs can get out of control in a hurry. Now imagine a vacation that lasts for months on end.

Being a digital nomad isn’t quite like living on vacation (despite what social media would have you believe). If anything, that makes it more expensive, not less. So it’s important to find ways to cut your costs on everything from travel to food to entertainment.

A lot of your cost of living will be set by your destination choices. But there are a few things you can do to help save money no matter where you travel.

1. Take your time between destinations

The only thing more expensive than regular travel is constant travel. Moving countries, or even cities, every few days is exhausting, for your mind, your body — and your bank account.

Slow nomads (aka slowmads) are digital nomads who move at a more reserved pace, often spending several weeks, up to several months, in one city or country at a time. This has a few benefits, such as allowing you to really immerse yourself in each destination.

It’s also often easier on your budget. Many hotels and rentals, for instance, offer discounts on longer-term stays. You’ll also spend less time traveling, so you can purchase larger toiletries, invest in groceries, and learn where to find affordable fun in your local area.

2. Get serious about travel rewards

One of the best things you can do as a full-time traveler is get some great travel rewards credit cards. Everything else aside, a lot of your money will go to travel, so maximizing your purchase rewards here will go a long way toward paying for future travel.

Pick up at least one card that’s a part of the major travel rewards programs:

American Express Membership RewardsCapital One Venture RewardsChase Ultimate RewardsCiti ThankYou Rewards

Cards in these programs earn transferable points that you can use to pay for flights, hotels, and even car rentals.

Even better, a lot of travel rewards cards have extra perks that can save you money and improve your experience. This includes benefits like airport lounge access, hotel status, and free checked bags on flights.

Pro tip: Avoid credit cards that charge foreign transaction fees while traveling. Some rewards cards that are great at home will be very expensive abroad, thanks to transaction fees on purchases in foreign currencies. Check your card’s terms and conditions to see if your card charges a foreign transaction fee.

3. Plan ahead as much as possible

I’d find it impossible to go on even a short trip without a spreadsheet (or two). But even if you’re not normally a planner, you’re going to need to start if you’re going to travel full time.

You can save a ton of money simply by planning ahead, even if it’s just from being able to properly compare your options. As fun as it may be to randomly choose your hotel when you land, it’s hard to do much in the way of price comparisons when you’re stumbling around an unfamiliar city fighting off jet lag.

This applies to more than just accommodations, too. Booking tickets online ahead of time can save you money on a variety of trip costs, from trains to museums. (In some cases, you may not even get access to popular attractions unless you book ahead.)

4. Leave room for flexibility

A big part of the nomadic adventure is enjoying a certain amount of spontaneity of place, the idea that you can go anywhere. And while it’s true that planning ahead is reliable money-saving advice, the opposite can actually work out sometimes, too.

A bit of seat-of-your-pants travel can actually be a good way to save money if you’re truly ambivalent about the when and how. (That’s the key — you have to really be flexible.)

For instance, undersold flights may become more affordable shortly before take-off. Similarly, you could catch last-minute deals on vacation packages through travel portals to less-popular destinations if you can pick up and leave within the deal’s travel window.

5. Embrace local cuisine — by cooking it

There are some parts of the world where it’s actually pretty affordable to dine out regularly (Southeast Asia comes to mind). But for the majority of nomads, a constant diet of takeout is not only bad for the body but also terrible for the budget.

Yes, one of the joys of nomading is trying out all the local cuisines. And you can definitely do that. But embrace it all the way — from the ingredients out. Visit local markets and grocers. Learn the local produce, cheeses, meats, and breads. Take cooking classes.

Then, put it all to good use by cooking your own food, including both local dishes and homey favorites with a local twist. You’ll probably save quite a bit of money, plus you’ll enjoy a level of cultural immersion you’d never get from simply patronizing restaurants.

Being a digital nomad comes with a lot of perks. But it can also be ridiculously expensive, especially if you travel in high-cost-of-living countries. Keep a good budget and stay mindful of your spending to ensure your travel stays manageable.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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There’s never a need to pay more taxes than necessary. Here are four tax traps that a retiree can easily fall into. [[{“value”:”

If you’re fortunate enough to make it to retirement, count yourself among the lucky. If you’re savvy enough to save and invest for retirement, count yourself among the wise. And if you plan for all retirement-related expenses — including taxes — count yourself among the brilliant. Every day, some retirees pay too much in taxes. Here are four ways they allow it to happen.

1. They believe that one investment is as good as another

If you were to pick five different retirement investments out of a hat, you would probably find that they’re not all taxed the same. For example, municipal bonds are never taxed at the federal level (which can save you big bucks in retirement).

While ordinary dividends are taxed at the ordinary capital gains rate, some qualified dividends are taxed at a lower capital gains rate. And if you made after-tax contributions to a Roth IRA, you’re not hit with taxes on that money in retirement.

It’s all about keeping enough money in your bank account to cover your monthly budget.

If you’re concerned about how your investments will be taxed, speak with a financial advisor about minimizing your tax exposure throughout your golden years.

2. They keep doing taxes the same old way

By the time you’ve retired, you’ve probably been filling out an annual tax return for decades and can do it in your sleep. Unless you’re working with a professional tax preparer or using tax software that walks you through the steps, it’s possible to overlook some pretty sweet tax breaks available to older taxpayers.

For example, did you know that once you turn 65, the IRS provides a larger standard deduction? For 2023, the standard deduction for a typical single taxpayer is $13,850. But if you’re 65 or older, you get to claim $15,700. That’s an increase of $1,850.

3. They want to take advantage of the higher tax deduction — a little too much

Even when you’re retired, you may still benefit by itemizing your deductions rather than taking the standard deduction. This is especially true if you’ve spent a lot on medical care. If your medical expenses exceed 7.5% of your adjusted gross income (AGI) and you choose to itemize, many of your expenses will be deductible. Deductions include (but are not limited to):

Medicare premiumsTransportation for essential medical careHospitalizationPrescription drugsFees paid to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitionersInpatient treatment for alcohol or drug addictionAmounts paid for false teeth, reading or prescription eyeglasses, contact lenses, hearing aids, a guide dog or other service animal to help a visually impaired or hearing disabled person, or a person with other physical disabilities, crutches, or wheelchairsWeight-loss programs for specific medical issues, including obesityLong-term care insurance premiumsNursing home care

As an example, if you have an AGI of $50,000, you would need a total of $3,750 or more in medical expenses to qualify for the deduction.

4. They automatically stop working

Unless you’re ready to retire, there’s no reason to stop doing something you enjoy, especially if you’re self-employed. Let’s say you groom dogs, create (and sell) artwork, or work as a consultant. Doing so may help ease you into your retirement years while also providing tax breaks. Here are two of those breaks:

If you’re still employed (which you are if you’re self-employed), you are eligible to contribute to a Solo 401(k). Contributions are made pre-tax, meaning you won’t have to pay taxes on the money you contribute until you begin withdrawing it from your retirement account. Depending on how much your small business earns, you can contribute up to $73,500 in pre-tax dollars (as long as you’re over 50).If you’re married but still working, your spouse can contribute to a spousal IRA in their own name. The IRS contribution limit for a spousal IRS this year is $6,500. In 2024, it will be $7,000.

Paying taxes may be required, but there’s no reason to pay more than absolutely necessary.

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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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Sam’s Club deals can help parents save on essentials and fun purchases for kids. Here’s how you can stretch your budget further by joining the warehouse club. [[{“value”:”

​​Raising kids in the U.S.? Yeah, it’s not cheap. By the time your little one goes from diapers to diplomas, you might’ve spent a cool $310,605. Ouch, right? Suddenly, all those trips to the doctor, school supplies, and endless grocery runs add up to a small fortune.

So, what’s a parent to do? Well, one trick is to become a deal hunter, and that’s where places like Sam’s Club come into the picture. Think of it as a treasure trove for parents looking to stretch those dollars a bit further and keep their personal finances in check. But let’s be real: Walking into Sam’s Club without a game plan can be overwhelming. Aisles upon aisles of deals, but which ones are truly worth your time (and money)?

Whether it’s snagging the best price on bulk diapers or finding that perfect, budget-friendly family meal, we’ve got you covered. Here are the best Sam’s Club deals for parents. (Note that prices may vary based on your location and if you’re shopping online.)

1. Inflatable backyard water slide

Got kids bouncing off the walls in the summer heat? Let me introduce you to the My First Waterslide Inflatable Splash and Slide. It’s like a mini water park in your backyard, blending climbing, sliding, and splashing into hours of fun. And guess what? It’s built tough with tear-resistant and UV-resistant materials, so it’s ready for summers to come.

Setting it up is a piece of cake. With the included air blower, it inflates in just two minutes. Hook up a hose, and you’ve got yourself a climbing wall with easy-to-use foot holds and padded grips, not to mention a curvy slide that ends in a big splash pool. It’s perfect for multiple kids but won’t eat up your whole backyard, and it’s a cinch to supervise.

The best part? It’ll only cost you a little over $200. Durable, easy to set up and take down, and a bargain to boot. If you want to keep the kids entertained (and cool) this summer without breaking the bank, the My First Waterslide is an easy call. Plus, setting it up gives you an excuse to join in on the fun — under the guise of “adult supervision,” of course.

2. Trampoline

Looking for a backyard hit that scores big with both parents and kids? The Skywalker Trampolines 16′ Deluxe Round Sports Arena Trampoline is where it’s at, especially now with a cool $100 off. This isn’t just a trampoline; it’s a whole sports arena that promises to keep the entire family jumping, dunking, and spiking for hours.

Parents, you’ll love this: safety is dialed up to the max. Thanks to its no-gap design and sturdy frame, you can chill out while the kids burn off energy. And let’s be real: seeing them out there and having a blast while staying safe? That’s peace of mind money can’t buy (though $100 off sure helps).

3. All-in-one car seat

Looking for a car seat that grows with your child and simplifies life on the road? Meet the EverFit All-In-One car seat. From a five-pound newborn to a 100-pound youngster, this seat covers all bases. Start in the rear-facing mode with a cozy body pillow for the tiniest passengers, then switch to the forward-facing position with a harness up to 65 pounds. And for the big kids? It effortlessly transitions into a belt-positioning booster.

The real game changer is the ease of use. Harness holders keep the straps out of the way, making it a breeze to get your child in and out. Adjusting the fit is just as easy, thanks to the QuickFit™ Harness, which allows you to adjust the headrest and harness height simultaneously; no rethreading is required. Designed to fit three across most back seats, it’s a carpooler’s dream.

Messy snacks and spills? No problem. The seat pad is removable, machine washable, and dryer safe. Cleanup is a snap, leaving you more time for what matters most.

And here’s the best part: it’s $15 off. For a car seat that offers longevity, convenience, and a stress-free cleanup, the EverFit All-In-One is a smart pick. So go ahead, make those car journeys a little easier on yourself and your wallet.

4. Laundry detergent pods

Kids and messes go hand in hand, so laundry detergent is always necessary. Thankfully, Sam’s Club has a pretty sweet deal on Tide Power PODS Ultra Oxi with Odor Eliminators. With $5 off, each pod costs just $0.28. And there’s no need for pre-treating or scrubbing; one pod does the job of two, ensuring your laundry comes out not just stain free, but smelling fantastic. It’s a straightforward solution that’s also kinder to the planet and your wallet.

5. Kids’ water bottles

Wanna keep those kiddo hydration levels up without turning your home (or car) into splash city? Check out the Ello Kids Bop 12 oz. Tritan Tumblers. Right now, a sweet $5 off deal makes it even cooler.

These tumblers aren’t just kid friendly with their fun designs and easy-to-carry loop, but they’re practically mess proof thanks to spill-resistant straws. And because we all know kids and spills are like peas in a pod, that sealing slider lid is a game changer. It’s leak proof when closed, making it a safe bet for lunch boxes or backpacks. Your car seats (and sanity) will thank you.

Made with durable Tritan plastic, these tumblers can take a tumble like a champ and keep on going, perfect for your little adventurers. Plus, the whole shebang is top-rack dishwasher safe and BPA free, because who has time to hand wash or worry about dangerous chemicals?

It’s clear that parenting, while one of the most rewarding experiences, also comes with its fair share of challenges — not the least of which is managing the financial aspect. From inflatable water slides that promise backyard fun without a trip to the water park to trampolines that turn your garden into a sports arena, Sam’s Club offers solutions that delight your children and support your 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.The Motley Fool has a disclosure policy.

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AT&T says data from over 70 million current and former customers is on the dark web. Find out how to guard against identity theft. [[{“value”:”

What happened

Personal data has been found on the dark web belonging to about 7.6 million AT&T customers as well as 65.4 million former ones. The leaked data, which appears to be from 2019, includes people’s names, contact information, Social Security numbers, and more. In a press release, AT&T said it has reset passwords on affected accounts and is sending emails or letters to those impacted by the breach.

So what

If criminals get a hold of your Social Security number and other information, they can use it to steal your identity. That might mean opening a credit card or borrowing money in your name. That can damage your credit rating and even leave you facing legal action for someone else’s debts.

Sadly, our personal information has never been more at risk. Writing for the World Economic Forum, Alex Yampolskiy, CEO of SecurityScorecard, predicted that 2024 could break records for the number of data breaches. Telecommunications companies are a particular focus for hackers, and AT&T is not the only one to have been targeted.

READ MORE: Best Cash Back Apps

Now what

AT&T says it will offer free identity theft and credit monitoring services to anyone whose data was leaked. If you’ve been the victim of a security breach, go to identitytheft.gov and follow the step-by-step instructions.

Here are some ways to protect yourself and your finances:

Monitor your credit: You can get free weekly credit reports from all three credit bureaus at AnnualCreditReport.com. Pay particular attention to any accounts you didn’t open or credit inquiries from unfamiliar companies.Use hard-to-guess passwords: Consider using a string of unconnected words, numbers, and symbols. It’s also important to use a different password for every account, even though it can be a hassle. If you struggle to remember all your passwords, a password manager may help.Consider setting up a credit freeze or fraud alert: A fraud alert means credit bureaus have to take extra steps before allowing a credit request in your name. A credit freeze stops anyone from accessing your credit report at all. If you know your identity has been compromised, these can stop the fraudsters from borrowing money in your name.Use two-factor authentication (2FA): This is an additional layer of security on top of your password, such as an SMS message or extra authentication code. It’s especially important for any financial activities such as online banking or budgeting apps.

Ultimately, awareness and vigilance are two of the strongest tools any of us have against identity theft. That means everything from being cautious about clicking on email links to shredding documents and keeping an eagle eye on your bank statement and credit report.

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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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