Money Management

Cruising can be expensive. Read on for a few smart money-saving strategies you can rely on. [[{“value”:”

I’m a frequent cruiser, and over the years I’ve learned some excellent strategies to make my trips as affordable as possible. My wife and I are getting ready to set sail on a short three-night cruise on Royal Caribbean’s Allure of the Seas, and here are some of the strategies we used to book this long weekend getaway without spending too much money.

1. I prepaid for as much as possible

There is a lot that is included in your cruise fare, but there are a lot of extras you might want to put on your travel credit card. Internet access, spa treatments, meals at specialty restaurants, drink packages, and shore excursions are just a few examples.

One of the most important things that I wish I knew before my first cruise is that all of these things can be significantly less expensive if you buy them ahead of time. For the cruise I’m about to take, both internet access and a specialty meal were 25% cheaper through Royal Caribbean’s app compared with the onboard price. And a quick look shows that the unlimited drink package costs 30% less if paid in advance.

Not only do you save money by booking things in advance, but it also can be a big help for budgeting, as you can pay for a little bit of your vacation at a time instead of getting one large bill on the ship.

2. I’m taking advantage of what’s included

Every cruise has plenty of complimentary food and free entertainment, so it’s important to take advantage of them. On some cruise ships, you’ll need to book certain shows and activities ahead of time. For example, I made sure to reserve the Aqua Theater show on our cruise, as well as a comedy show for the following night. Plus, we booked one specialty dinner, and are planning to take advantage of the numerous free options for the rest of the trip.

3. I’m planning to pack wisely

I’ll be the first to admit it. I’m not the most attentive packer when I travel, especially when it comes to making sure I have all the toiletries and accessories I need. I’m good about remembering the most important things, but I often forget items like toothpaste, shaving gel, and other small but essential items. And while it isn’t exactly a smart strategy, I know in the back of my mind that I can always find the nearest CVS or Walgreens and get what I need.

But on a cruise ship, it’s important not to forget these items. You’re stuck on a ship and can’t just go to the store to buy whatever you forgot. Some ships have a very limited selection of basic items, but in many cases your best option is to find a convenience store in the next port, where you’ll likely pay several times what the items would have cost at home.

Another big tip is to pack whatever drinks you’re allowed to bring. My wife and I are not planning to purchase a drink package, as we wouldn’t use it enough to make it worthwhile. But Royal Caribbean allows us to each carry one bottle of wine onto the ship, and this can save us a significant amount of money versus buying glasses of wine at the bars on the ship.

4. We chose the closest possible cruise port

Many of the best cruise itineraries on my radar would require me to sail out of Miami, Galveston, or even Seattle, but none of those are within a reasonable driving distance. Fortunately, I have an excellent cruise port (Port Canaveral, near Orlando) within a six-hour drive, so we decided to book a cruise that leaves from there to save money on airfare.

Of course, this isn’t practical for everyone. If you live in say, Colorado, there aren’t any cruise ports that are easily drivable. But if you live close enough to drive to a cruise port and avoid having to budget for airfare, it could be a big money-saver to take advantage.

How much can you save?

Obviously, how much you can save by using these strategies varies from trip to trip and depends on what your preferences are. But it’s fair to say that they can make your cruise much cheaper. Not having to pay for airfare alone can result in $1,000 or more of savings in many cases, and we saved well over $100 by simply paying for internet access and our specialty dining ahead of 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.Matt Frankel 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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Car insurance premiums depend on more than the driver’s vehicle and accident history. Here are three little-known factors that affect rates. [[{“value”:”

Car insurance rates are as unique as each driver. Insurers consider a variety of factors when setting premiums, including things like the driver’s history of accidents and speeding tickets and their vehicle make and model. Location matters too as it affects the risk of auto theft and storm damage.

It’s easy to understand the logic behind these things, but not all car insurance factors are this straightforward. The following three things can affect premiums too, depending on where the driver lives and the insurer they work with.

1. Marital status

Married couples typically pay lower auto insurance premiums than single adults. This might seem unfair, but insurance companies contend that married couples are usually more stable and have a reduced risk of accidents. Some believe that married drivers may also spend less time behind the wheel as each partner splits driving responsibilities.

There are other reasons married couples pay lower rates as well. They typically have several cars to insure and many are homeowners as well. Both of these things can lead to car insurance discounts that may be more difficult for single drivers to achieve.

2. Education level

Many auto insurance companies ask drivers about their highest level of education during the quote process. This might seem bizarre, but it comes back to risk again. Drivers with higher levels of education are generally perceived to drive more safely and get into fewer accidents.

Obviously, this isn’t the case for all drivers. But it’s still something many companies weigh when setting premiums. It won’t be enough to eclipse a poor driving record, though. Demonstrated risky behavior behind the wheel as evidenced by tickets, accidents, and DUIs will raise any driver’s rate, even if they have a Ph.D.

3. Credit score

Car insurance companies also contend that drivers with higher credit scores typically have a lower risk of accidents, so these drivers often pay lower rates. Companies assess an applicant’s credit score by requesting their Social Security number during the quote process and doing an inquiry on their credit report.

There are currently four states — California, Hawaii, Massachusetts, and Michigan — that prohibit insurers from using credit scores to calculate auto insurance premiums. Drivers who live in one of these states don’t have to worry about poor credit affecting their premiums, but if they demonstrate any risky behavior behind the wheel, insurers will be quick to charge them for it.

How to find the best deal on car insurance

Understanding the factors that insurance companies use to set auto insurance premiums is helpful in finding the best deal, but nothing beats comparison shopping. It’s best to get quotes from at least four to five insurers before selecting one to work with. Price is obviously an important factor, but it’s not the only one worth considering.

Coverage options vary by provider. All will offer at least the state minimum coverage required to drive legally, but most also have a variety of optional add-ons. Some of these, like ridesharing or gap insurance coverage, aren’t available with every company. Those seeking specific protections should first make a list of which companies even have what they’re looking for before getting quotes.

It doesn’t hurt to look over the insurer’s list of discounts, either. Some companies offer special savings for things like being in the military or owning a hybrid or EV. This could be enough to tip the scales in a driver’s favor if they qualify for them. But keep in mind that more discounts don’t always translate to a lower premium.

Finally, if premiums are still too high, drivers can try raising their deductible. However, this increases out-of-pocket costs in the event of an accident. So it’s often a good idea to save for this in an emergency fund before agreeing to a high deductible.

Drivers should also keep in mind that their risk profiles can change over time and so can the algorithms that insurers use to set their rates. So while there may not be anything affordable right now, that could change in a few months.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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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If you have minimal extra money left over after paying your bills, you may want to make some changes. Find out how you can save $1,000 or more each year. [[{“value”:”

With everything getting more costly, many people are looking for ways to save money. Canceling unnecessary services, negotiating bills, and switching service providers are some ways you can free up more money in your checking account. If you’re willing to make a few changes, you can save $1,000 or more annually. I’ll share a few money moves you may want to make if you’re looking for ways to cut your spending.

1. Ditch Netflix

Total annual savings: $185.88

Many households subscribe to multiple streaming services. These platforms are convenient, but the more streaming services you use and pay for, the more you’ll spend on entertainment costs. Netflix is one popular streaming platform that has continued to increase its fees.

Users with the ad-free Standard plan pay $15.49 a month to access movies and shows. If you’re willing to get rid of this subscription, you could save $185.88 annually. You may want to take a break from this streaming platform if you’re on a tight budget.

2. Negotiate your cable or internet bill

Total annual savings: $660

Many people assume their bills aren’t negotiable. But that isn’t always the case. Some billers may be willing to negotiate your rate to keep you as a customer. If you’re paying expensive rates for home internet, cable, or both, chat with your biller to see if it can offer you a better rate.

I’ve successfully negotiated the cost of my home internet every few years since 2018. I’ve remained a customer with the same home internet company. Every time my current pricing promotion is about to end, I chat with a customer service representative online to see if they can give me a deal.

I’ll use my home internet plan as an example. The standard rate for my service is $105 a month, which is the monthly price I will pay whenever my current promotion ends this summer. But I’m currently paying $50 a month. That means I’m saving $55 a month or $660 a year because I negotiated my current rate. I plan to negotiate my rate again this summer to keep saving money.

3. Change mobile carriers or downgrade your plan

Total annual savings: $600

You can get a better deal by downgrading your mobile phone plan or switching to a cheaper carrier. Many mobile service providers frequently change their phone plans and prices, so your current plan and pricing may be outdated. Do some research to see if you can save.

I did some research to show you the potential savings. Verizon Wireless is a popular mobile service provider. The Unlimited Welcome plan includes unlimited talk, text, and data, costing $65 for one line. This is the price after a $10 discount for enrolling in autopay billing. I estimate the taxes and fees to be an extra $10. So, you’d spend $85 a month or $900 annually.

You could save money if you switched to Visible by Verizon, a prepaid mobile phone service that operates on the Verizon network. The standard Visible plan includes unlimited data, talk, and text for $25 a month, including taxes and fees. A year of service would cost $300. Switching to this service provider would save you $50 a month or $600 a year.

Every dollar adds up

The above savings add up to nearly $1,450. As you can see, it’s beneficial to look for ways to reduce your spending. These are just a few examples of ways you can do that. If you want to free up money for your financial goals, consider making these money moves.

If you need help managing your money, you may benefit from budgeting. You can use one of the apps on our list of the best budgeting apps to monitor your spending and set spending goals.

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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 Netflix. The Motley Fool has a disclosure policy.

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It’s smart to take advantage of opportunities to save more for retirement. Discover one of the best options that many Americans overlook. [[{“value”:”

Retirement accounts, including 401(k)s and individual retirement accounts (IRAs), are a smart way to save for retirement. But only 51% of Americans use them, according to a recent investing study by The Motley Fool.

Some people don’t see the point of using retirement accounts. Or they don’t think they’re eligible for one because they don’t work for an employer that offers 401(k) plans. Below, we’ll cover why using retirement accounts is important and how anyone can open one.

The benefits of investing through retirement accounts

The most valuable benefit of retirement accounts is that they help you save on taxes as you invest your money. This is something you don’t get with a regular brokerage account. With that type of account, you’ve already paid income taxes on the money you deposit and will pay capital gains taxes when you sell your investments.

With a traditional 401(k) or IRA, you contribute pre-tax income. Your contributions are tax deductible. If you contribute $5,000, that’s $5,000 you can deduct from your taxable income. If that was going to be taxed at 24%, you’ve saved yourself $1,200.

With a Roth 401(k) or Roth IRA, you contribute post-tax income. You’re not able to deduct contributions on your taxes, but you can make tax-free withdrawals in retirement. If you have $100,000 in Roth accounts when you retire, that’s $100,000 in tax-free income.

The tax savings are the main reason why retirement accounts are so widely recommended. But there are a few other reasons to use them:

They make it easy to automate your retirement savings. Your 401(k) contributions will come directly out of your paycheck. Most IRA brokers give you the option of setting up automatic contributions on a schedule of your choosing.They incentivize you to keep your money invested. Because these are retirement accounts, there’s an early withdrawal penalty of 10% for withdrawals made before you are 59 1/2. Even though this makes them less flexible, it also gives you a reason not to take out your retirement savings early.

How to start using retirement accounts

If you don’t have a retirement account yet, start by seeing if your employer offers a 401(k). This type of plan is an excellent option because of the high contribution limit: $23,000 in 2024 ($30,500 for those 50 and older). Also, many companies will match 401(k) contributions up to a certain amount, which boosts your retirement savings.

Not everyone has that option, however. If you’re a freelancer, for example, you won’t have an employer to offer a 401(k) plan for you. The next option to consider is an IRA. Anyone who has earned income can open one, and the contribution limit is $7,000 in 2024 ($8,000 for those 50 and older). Most Americans can also open Roth IRAs, although those have income limits that exclude high earners. The limit depends on your filing status.

You can open an IRA or Roth IRA with an online stock broker. If you’re looking for a broker, here are The Ascent’s recommendations:

Best IRA brokersBest Roth IRA brokers

There are also retirement plan options for self-employed workers, including SEP IRAs, solo 401(k)s, and SIMPLE IRAs. If you’re self-employed, which includes owning your own business or doing gig work, you may want to open one of these accounts. They have much higher contribution limits than IRAs and Roth IRAs. For example, in 2024, SEP IRAs let you contribute up to either 25% of your net self-employment earnings or $69,000, whichever is less.

Because of the tax benefits, it makes sense to open and invest through retirement accounts first. It’s fine if you also want to invest through a regular brokerage account so you can access some of your earnings before you’re 59 1/2. But tax-deductible contributions and tax-free withdrawals in retirement are valuable. To maximize your retirement savings, make sure you’re in the 51% of Americans who use retirement accounts.

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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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Being a digital nomad sounds romantic, but it can quickly turn to horror if your budget is blown. Here are a few mistakes to avoid. [[{“value”:”

One of the most remarkable perks of remote work — whether for yourself or an understanding employer — is the ability to do it from anywhere. And some so-called digital nomads really stretch the idea of working from anywhere by traveling full-time.

While the idea of being on a year-round adventure sounds romantic, the reality for a lot of digital nomads ends up being a lot less Eat, Pray, Love — and a lot more 2 Broke Girls. As all nomads soon figure out, travel is expensive. And constant travel? You guessed it, constantly expensive.

That’s not to say you can’t make it work. Plenty of people do it every day. However, you really need to budget. More importantly, you need to budget wisely. That involves avoiding many of the common mistakes inexperienced nomads make. Here are just a few.

1. Not researching their destinations well

You can’t possibly plan a reasonable budget for your trip (or anything else) without first knowing what sorts of costs to expect. There is a massive difference in the cost of living for folks trying to “slowmad” around Western Europe versus those who are backpacking between hostels in Southeast Asia.

It’s imperative that you thoroughly research your destinations. Sure, this can include anecdotes from social media. But you should also use more data-driven resources to see actual prices of things. This could include third-party sources, like the various online cost-of-living calculators that have cropped up, as well as local sources.

For example, find the local food delivery app and check out restaurant prices. Peek at a local grocer’s website to see if they publish weekly ads. Find prices of the things you’re most likely to do for fun. And make sure you know what transportation will cost.

2. Forgetting to include everyday necessities

I’ve seen a lot of folks approach digital nomading like going on an extended vacation. This mindset leads to trouble in a lot of ways, but one of the more interesting ones — from a financial perspective — is that they often forget to budget for the costs of regular life.

Even though your daily life will be a bit different, it’s still life. You need to budget for the stuff you use every day. Those travel-sized toiletries won’t last too long into a typical nomad tour. And depending on your rental, you’ll probably need to restock your own toilet paper. Let’s not forget laundry soap, hair brushes, menstrual products, and other necessities.

Similarly, you’re still going to need to buy new clothes and shoes when your stuff wears out. (Merino isn’t cheap, friends.) And you’re still going to need to pay for that allergy medication, heart medication, and, yes, health insurance. (Free healthcare is generally for citizens of countries, not nomads.)

Oh, and don’t forget your cellphone bills. You’ll probably be paying way more for a plan that offers your international calling and/or data. (International roaming can be prohibitively expensive.) Plus, you’ll likely want to get a local SIM card for any country where you intend to stay for an extended period.

3. Discounting the cost of bureaucracy

One expense that can really sneak up on people who travel frequently is the cost of basic bureaucracy.

For instance, many countries require you to apply for a visa before you can visit, and visas typically come with application fees. If you’re going to multiple countries in one trip, even small fees can really add up.

You also need to consider logistics-related costs, like mail. Unless you’re straight up moving to another country, you’ll need to maintain some sort of mailing address in the U.S. This likely means having to pay for a mailbox somewhere. (And no, a P.O. box typically won’t cut it, you’ll want to rent a box with an actual street address. Yes, this often costs more.)

Moreover, you can’t simply ignore your mail for months on end. This means paying extra for a service that will forward important correspondence, such as business documents or government letters. (If you get summoned for jury duty, you’ll need to reply!)

4. Ignoring currency conversion costs

Every time you change money from one currency to another, you’re probably going to pay a fee. In many cases, you’re going to pay multiple fees.

If you withdraw money from your U.S. bank account at a foreign ATM, you will probably be charged a fee for converting your U.S. dollars into the local currency. Then, you’ll probably be charged an ATM transaction fee — or even two: one from the ATM itself, and one from your bank for an out-of-network ATM. In some cases, you may even get hit with a foreign transaction fee for using a non-U.S. ATM.

Some credit cards will get you with the foreign transaction fees, too. Choose a travel rewards card with no foreign transaction fee to avoid this. Also, if a foreign merchant gives you the option to pay in U.S. dollars instead of the local currency, decline; you’ll likely pay less favorable exchange rate than if you let your card issuer handle the exchange.

Many of the costs of life are the same whether you live a stationary life or a nomadic one. Then there are the things unique to a digital nomad’s path. All of it needs to be included in your budget to make your nomading adventure a successful one.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends U.S. Bancorp and Visa. The Motley Fool has a disclosure policy.

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Banks can adjust savings account rates at any time. The lower the rate, the less interest you earn. Here’s why a small rate change isn’t the end of the world. [[{“value”:”

A friend and I were recently talking about our savings goals. We both have the same savings account, so she alerted me that our rate had recently dropped. Life’s been busy, and I hadn’t looked at my account much in a couple of weeks, so I had no idea. Sure enough, the rate is now slightly lower than it’s been for the past few months. While it’s a bummer, I’m not too upset about this news. Despite the rate change, I plan to keep my savings in this account. I’ll explain why.

I’ve continued to learn more as I write about finances

Each of us continues to acquire new knowledge every day. Throughout my career as a travel and personal finance writer, I’ve picked up knowledge that I’ve been able to apply to my personal life and I’m continuously learning more each day that I write.

While I’ve spent years prioritizing earning rewards from rewards credit cards, I had more work to do regarding my savings. I hadn’t been paying close attention to my bank’s annual percentage yield (APY) or the rate of return I could earn by keeping my money in the bank for a year. This is an important rate to know. I knew I needed to make changes to reach my savings goals sooner.

So, in the summer of 2021, I opened a high-yield savings account with an online bank to earn more money from interest. My local brick-and-mortar bank offered a meager APY then, so I knew that transferring my savings to this type of bank account was the best move for my extra money.

The rate for my high-yield savings account has adjusted many times since I first opened it, but I’m happy that I’m earning extra cash while my money sits in the bank. Any additional income like this is a win because it can help me reach my personal finance goals.

Savings account rates can fluctuate

It’s important to remember that the APY your savings account offers today may differ from what it offers in a few months or next year. That’s because rates can change at any time.

Changes to the Federal Reserve’s interest rate — the rate at which banks and credit unions borrow and lend from and to each other — can cause banks to adjust the rates they extend to consumers. The Fed has hiked the rate several times over the last year to combat inflation.

The rate hikes have benefited people with high-yield savings accounts. Many banks have hiked their rates for these accounts. However, lending rates for mortgages and auto loans have also increased, so there have been some wins and losses for consumers.

I’m still earning extra money

Until recently, my savings account’s APY was 4.35% — but now it’s 4.25%. As a simple example, say I had $10,000 in my savings account earning an APY of 4.35%. At the end of one year, I’d have earned $435 in interest on my balance. The same $10,000 balance would earn $425 at the end of one year with an APY of 4.25%. A difference of $10 over a one-year period. That rate reduction isn’t a big deal in the grand scheme of things. Now that I’ve built an emergency fund, which I stash in this bank account, I’m earning a sizable amount of extra income from interest, despite the small rate decrease.

I’m also happy with my current bank and the features of my bank account. At this point, it’s not worth the extra effort to transfer my money elsewhere. If my bank continues to lower its rates while others maintain higher rates, I may reconsider and move my money. But for the time being, I’ll keep contributing to my savings fund and watch my balance grow.

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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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