Money Management

There are many benefits to sharing your life with someone. Find out how earning extra credit card rewards is one of them. [[{“value”:”

Batman and Robin, Han and Chewie, peanut butter and jelly — it’s nice to have a partner to team up with, isn’t it? You can often accomplish a lot more if you work in tandem with someone else toward the same goal. And if you have a partner in life, you can apply that same concept to earn double the credit card rewards you’d be able to earn alone.

Double the credit cards, double the fun

Many couples choose to combine their finances when they move in together or get married, whether that’s opening a joint savings account or a joint credit card. It’s a serious part of sharing your life with someone, and can be an important step in trusting the other person with your personal finances.

Plenty of couples choose to keep their finances separate, though, and it doesn’t necessarily mean they’re any less trusting of each other. In fact, you might be able to connect even more on your financial goals as a couple by keeping separate credit card accounts. If you work together and make a plan to open new credit cards, you’ll be able to take advantage of twice the benefits you’d have access to on your own.

Welcome offers, times two

Lots of credit cards have excellent sign-up bonuses that let you earn a generous number of points or miles if you meet a spending minimum within the first few months of opening the card. By teaming up with your partner, you can apply for two different cards and earn twice the bonus.

It’s important to note that you should only do this if you’re comfortable with the spending threshold and you’ll be able to meet it with your regular spending. You don’t want to take on credit card debt just to earn a welcome offer, so make sure you can pay off your credit card bill each month rather than carry a balance forward.

But if you and your partner need furniture for your new apartment or are planning your upcoming wedding, it can be a great opportunity to sign up for new cards and earn a bunch of points. Think of it as a housewarming gift from the credit card companies.

Cover all your bases

You and your partner can also compare credit cards to determine which would be the best match for you collectively. By applying for cards with complementary, rather than overlapping, benefits, you’ll be able to earn points and use benefits across a much wider range.

Let’s say you two love to travel, but aren’t dedicated to a particular airline when you fly. You could each sign up for an airline credit card with a different airline, meaning you have twice as much chance of getting priority boarding and free checked bags when you search for affordable flights.

Another way to make this idea work for you is to sign up for cards that cover different categories of spending. You could sign up for a gas and grocery card that earns three times the rewards on those purchases, while your partner signs up for a dining credit card that gets you extra cash back when you go out to restaurants. No matter where you spend, you’ll know you’re earning the most points possible.

Double double, earn rewards with no trouble

Some people prefer to only have one credit card in their wallet, while others collect them like trading cards. Make sure you do whatever works best for you, and be aware of any annual fees on the credit cards you apply for. Doubling your cards as a couple means doubling the fees you’ll pay, so don’t take on more than you can comfortably afford.

But remember that there are plenty of great no annual fee cards to choose from, too. So if you have a partner in life to team up with, go ahead and take advantage of all the extra perks available to you.

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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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Married couples have access to some specific money-saving deductions. Read on to find out how you and your spouse can save on taxes this year. [[{“value”:”

Filing your taxes can be stressful enough on your own, and filing with a spouse adds an extra layer of complexity to the process. Thankfully, there are many benefits to filing your taxes as a married couple, including deductions and credits that can be exclusive to married couples filing their taxes jointly.

If you’re filing your return with your spouse this year, here are a few tips that could save you money.

1. File jointly to lower your tax bracket

This one is important because many other tax benefits, some of which are on this list, come from filing your taxes jointly with your spouse. About 95% of married couples file jointly, and they do it because there are many benefits.

One of the most important benefits is that income for married couples filing jointly is placed in a lower tax bracket. For example, a single person making $200,000 has a marginal tax rate of 32%. But if a married couple with one income makes $200,000 for their household, the tax bracket is only 24%.

Having a lower tax bracket benefits almost all married couples, but there are a few times when it makes sense to file separately. People typically do this if they’re divorced, legally separated, or if the difference between spousal incomes is significant and one can claim many itemized deductions.

2. Contribute to your IRA

You can contribute money to an individual retirement account (IRA) if you earn an income. But there’s a special opportunity for married couples who file their taxes jointly, allowing an income-producing spouse to contribute to their non-working spouse’s IRA.

For example, if one spouse works and the other is a homemaker, the couple can contribute $6,500 to their IRA for tax year 2023 (or $7,500 if they’re over 50) for themselves and their spouse, for a total of $13,000.

For married couples with traditional IRAs, this means you can significantly lower your taxable income, even if one spouse isn’t earning an income. For example, if you contribute the total allowable $13,000 contribution in 2023, you could lower your adjusted gross income (AGI) by $13,000 and lower your tax bill.

3. Claim the earned income credit if you qualify

Married couples with low to moderate incomes may be able to save money on their taxes by claiming the Earned Income Tax Credit (EITC). The amount you receive depends on your income, marital status, and number of children you have.

For example, a married couple filing jointly, with a combined income of $55,000 and two children, could potentially receive an EITC of $938. If the same couple had three or more children, the credit would go up to $1,763.

You can determine whether you qualify for the EITC by answering questions on the IRS’s online EITC assistant. The Center on Budget and Policy Priorities website also has a helpful EITC calculator that estimates how much you might receive from the EITC based on your filing status, household income, and number of children.

You and your spouse can claim the credit even if you don’t have any children, as long as you qualify. The good news for those who qualify for the EITC is that if your credit is more than what you owe in taxes, you get the money as a refund.

4. Reduce your tax-filing costs

Married couples who file their taxes jointly don’t have to pay for separate filings, which could add up to significant savings during tax season.

The average cost to file taxes is between $300 and $600. If you file separately, that means you could pay $1,200 to file both your and your spouse’s returns. And if your specific tax situation is more complicated — if, for example, you’re self-employed or earned income in multiple states — you could pay much more to file.

If you hire a tax professional, the price of filing separate returns will likely be compounded because of the additional hours of work it will take.

5. Take the standard deduction

Married couples filing jointly can claim a standard deduction of $27,700 for the 2023 tax year. While some people think itemizing their deductions will save them more money on their taxes, most people benefit from taking the standard deduction.

Not only will you likely save money on your taxes by taking the standard deduction, but it’s also far less time-consuming than collecting all your itemized deduction paperwork. That’s probably why nearly 90% of filers take the standard deduction.

There are a few instances where itemizing pays off, including if you own a home and the total mortgage interest, insurance premiums, and real estate taxes are greater than the standard deduction. Or if you paid more than 7.5% of your AGI for out-of-pocket medical expenses, you may want to consider itemizing.

But for most married couples, you’ll save more money by taking the standard deduction.

One bonus money-saving tip

Tax software makes it easier than ever to maximize your deductions and receive available tax credits. The good news is that the IRS has partnered with some tax software companies, including TaxAct and TaxSlayer, to offer free filing for households that earn $79,000 or less in 2023.

You can find out more about the free filing option on the IRS’s website. Just be sure to have your tax return from last year available so you can enter your AGI from last year to see 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.Chris Neiger 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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A balance transfer could be your secret weapon to getting out of debt. See exactly how to do it in this step-by-step guide. [[{“value”:”

Paying off debt can be a lengthy process. It’s also expensive, especially if you’re dealing with high-interest debt, such as credit card debt. The average APR on credit cards being charged interest is a staggering 22.75%, according to the Federal Reserve.

The key to getting out of debt is paying as much as you can toward it every month. But you can also save on interest and speed up the process with a balance transfer.

This involves transferring your debt to a card with a 0% intro APR on balance transfers. During that intro period, your entire monthly payment will be going to your debt, and not interest charges. Here are the steps to follow to save on your debt this way.

Figure out how much time you need to pay off your debt

Start by seeing how many months you’ll need to pay off your debt. This will help you pick the right balance transfer card. Here’s how to calculate it:

Add up the balances you want to pay with a balance transfer. If you only have one card you’re paying off, then you can move on to the next step.Add 3% to 5% for a balance transfer fee. This is a standard fee that balance transfer cards charge. So if you plan to transfer over $5,000 in balances, expect to pay another $150 to $250 in fees. That means you’ll be paying off $5,150 to $5,250 total.Divide that by the amount you’ll pay per month. Let’s say you’ll be paying $5,250, and you can pay $300 per month. It will take you 17-and-a-half months to pay that off. Always round up to play it safe.

After you do that, you’ll know the number of months it will take to be debt-free with a balance transfer card.

RELATED: Balance Transfer Calculator

Look for a balance transfer card with a long-enough 0% intro APR

You can compare card options on The Ascent’s list of the best balance transfer credit cards. If possible, pick a card that has a 0% intro APR for as long as you need to become debt-free. After all, if you can pay off the balance within the intro period, you won’t get charged any interest.

So if it’s going to take you 17-and-a-half months to pay off your balance, make sure to pick a card with a 0% intro APR for at least 18 months. If you’ll need 15 months, get a card with a 0% intro APR for at least 15 months.

The longest balance transfer offer I’ve found that’s currently available is 21 months, which you can get with multiple credit cards. If you need more time, it makes sense to go with the longest offer, since that will save you the most money on interest. And you could always consider transferring your balance again later, if necessary.

Use balance transfer fees and other perks as a tiebreaker

There’s a good chance you’ll find multiple balance transfer cards that work. To decide between them, first check their balance transfer fees. If one card charges 3%, and the other charges 5%, then you could save more by going with the first card.

If they have the same balance transfer fee, you might want to compare their other perks. Some of these cards also have cash back programs, a perk that makes them useful after you finish paying off your debt.

Apply for the card and transfer over your balances

When you’ve found a card, fill out an application. Some card issuers also let you set up your balance transfers during the application process. If not, you can do so after you’re approved, either online or by calling the number on the back of your card.

The amount of time a balance transfer takes depends on the card issuer. Most card issuers process them within one to two weeks.

Continue making any required payments on the old cards until the balance transfers are complete. Otherwise, you could be charged late fees and interest. Also, check the old cards after the balance transfers go through. If there were any pending charges that went through after the transfer, there could still be a remaining balance you need to pay.

Last but not least, keep working hard on paying off your debt. Some people relax when they see their new card’s 0% APR and start making smaller payments. Remember that the 0% APR doesn’t last forever, and it will increase quite a bit after the intro period. Make the most of it by trying to get debt-free before it ends.

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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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Loud budgeting is all the rage, but I’m not comfortable with it. Read on to learn about my approach to managing my money and meeting my goals. [[{“value”:”

Loud budgeting has taken social media by storm. The concept goes like this: Rather than deal with your financial woes and objectives quietly, you go public with your challenges and strategies on platforms like TikTok to garner support from the masses, inspire others to follow your lead, and keep yourself accountable.

Let’s say your primary financial goal is to buy a house, and you need to save another $12,000 in the next year to do that. You may decide to put out a video announcing that goal with subsequent videos tracking your progress.

It’s a system that may work for some people, but not for me. I’ve always been a private person by nature, and for me, social media is more of an obligation than something I enjoy participating in. I have an account to keep up with my kids’ activity groups and school happenings more so than anything else.

As such, I’m not about to blast my financial worries and goals for all of the world to see. And I don’t have to, either, because I’ve come up with a system that works well for me.

Automating my savings helps me stay on track

If you’re someone who struggles to save money, then you may need support to meet your goals. And if loud budgeting is what you need to do to get that support, go for it.

But I’ve found that automating my savings helps me stay on track. And because of that, I don’t need other people’s support for the most part.

One thing I do every month is have money leave my checking account and go into a retirement plan off the bat, before I can spend that portion of my earnings. So even if I’m tempted to buy concert tickets or whatnot, if the money is already gone, I can’t. It’s that simple.

I turn to my spouse for support

My financial objectives aren’t goals I have to tackle completely alone. My husband and I partner with one another to meet joint goals. And when challenges arise, like costly home repairs, we work together to address them.

That’s another reason I don’t need loud budgeting. I have someone else in my corner who I can team up with to tackle financial matters.

Other options for you to consider

If you’ve taken up loud budgeting and feel that it’s helping you, then by all means, continue. But if that’s not in your comfort zone, there may be a better way to go about things. You could try to:

Put your savings on autopilot and see if that helps you meet your goals.Play around with different budgeting apps if you’re worried about your spending or expenses.Find a family member or friend to confide in when you’re struggling with financial decisions.Find a financial advisor and let an expert help you establish and work toward your goals.Keep a log of your financial wins and successes you can refer to when you need motivation.

Loud budgeting isn’t something you should feel compelled to do if it’s not your thing. There are other steps you can take to get to a great place without sharing details of your financial life with the world.

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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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Many Americans use rewards credit cards — but around 29% of consumers do not. See why they’re missing out and why you may want to get a rewards credit card. [[{“value”:”

Many people use credit cards to pay for everyday purchases, but only some consumers earn rewards when they swipe their credit cards. Using a rewards credit card is an easy way to earn points, miles, or cash back when you use your card for everyday essentials and expenses.

Find out how many Americans are not earning rewards with their cards and discover why you may want to start using rewards credit cards as part of your financial strategy.

74% of Americans have credit cards that earn rewards

A recent The Motley Fool Ascent study examined Americans’ generational credit card usage habits. How consumers use rewards credit cards and what features they look for vary by generation.

For example, a top feature that baby boomers look for is cards with no annual fee. In contrast, most millennials focus more on credit cards with low interest rates. However, reward credit card usage is prevalent across all generations.

According to the study findings, 74% of all respondents use rewards credit cards. Based on this statistic, 26% of Americans aren’t earning credit card rewards. Other studies show a similar trend regarding rewards credit card usage.

A 2022 Wells Fargo study found that 71% of Americans have a credit card that earns rewards. The study also found that nearly half (49%) of rewards cardholders are using credit card rewards to offset some of the costs of everyday purchases now that goods and services are more expensive.

Why more consumers should consider using rewards credit cards

Consumers who don’t have credit cards that provide rewards are missing out. It’s easy to earn rewards just by swiping your cards like usual. Many no annual fee credit cards offer rewards, and there are plenty of rewards cards with affordable annual fees of under $100.

No matter what kind of card you use, remember that carrying a balance is not recommended. The best strategy is to swipe your card for everyday purchases and pay your entire statement balance off monthly to avoid expensive credit card interest fees. Don’t risk accumulating credit card debt, which could negatively impact your finances.

Earning rewards for everyday purchases is a win for your personal finances because it requires little effort. Many of these cards also include valuable benefits like purchase protection and extended warranties, giving you another reason to add a rewards credit card to your wallet.

How to choose the right reward credit card for you

Are you considering a credit card that offers rewards? Make sure you get one that fits your needs. You should review your finances to decide if now is the right time to apply for a new credit card. You’ll also want to determine whether you can afford an annual fee. If not, you should explore no annual fee cards.

It’s also wise to consider your top spending categories. Choosing a card that rewards purchases that align with your typical spending habits can help you earn more rewards faster. If your spending habits vary, a flat-rate rewards card may be best.

Finally, research your rewards redemption options. Do you want to earn rewards you can redeem for travel, or are you looking for a simple cash back credit card? Some credit card issuers have more flexible rewards programs, so explore various programs before applying for a card.

Want to learn more? Check out our list of the best rewards credit cards.

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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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