Money Management

Interest rate cuts may not be so far off. Read on for some key moves to make before that happens. [[{“value”:”

Cooling inflation is setting the stage for the Federal Reserve to cut interest rates after a series of hikes that began in 2022 and lasted well into 2023. At its last few meetings, the Fed held interest rates steady. And while the central bank is not expected to cut interest rates at its upcoming March meeting, the Fed has signaled that interest rate cuts are likely in store for the latter part of 2024.

Interest rate cuts could be a great thing for consumers looking to borrow money. Right now, loans are expensive because rates are still elevated. But once they start to come down, signing a loan might be more financially feasible.

But while it could still be a few months until the Fed is ready to cut interest rates, that doesn’t mean that you, as a consumer, have to just sit on the sidelines and wait things out. Here are a few key moves to consider making now, while interest rates are still elevated.

1. Lock in a long-term CD

The Fed’s interest rate hikes haven’t only been negative news for consumers. Higher interest rates have made CDs more appealing.

But once the Fed starts to lower interest rates, CD rates could start to follow suit. So now’s actually a good time to not only lock in a CD in general, but to lock in a longer-term CD.

The CD rates that become available three, four, or five years down the line might pale in comparison to the rates savers can snag today. So if you’re saving for a far-off goal, a 36-, 48-, or 60-month CD might be a good bet.

2. Open a high-yield savings account

Just as CDs are paying more generously these days, so too are savings accounts. So if you haven’t yet made the move from a brick-and-mortar savings account to a high-yield one online, now’s a good time to take that leap. You might snag a much higher interest rate on your money in the process.

Of course, this doesn’t mean you need to completely cut ties with your current bank. There can be benefits to maintaining a checking account at a local bank, like access to different services and face-to-face interactions with bank employees. But you’ll often find the best savings account rates at online banks, so you might as well open an account while rates are still high.

3. Boost your credit score

Once the Fed lowers interest rates, you may want to jump on the opportunity to put a loan in place. Now’s a good time to boost your credit score. Doing so might make it so you’re not only able to qualify for a loan, but also, snag a competitive interest rate on one.

You can boost your credit score in a number of ways. Start by paying your bills on time and checking your credit report for errors. It’ll also help to pay off some existing credit card debt if you’re able to. And that’s actually an important thing to do at a time when interest rates are still high.

Interest rate cuts could be here before we know it. Make these moves before that happens so your personal finances will benefit.

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Struggling to rent a home? Read on for some options. [[{“value”:”

It’s hardly a secret that housing has gotten extremely expensive. In January, the median price for a rental unit was $1,964, according to Rent.com data. But in some cities, you may be looking at spending upward of $2,000 for a tiny apartment you can barely fit your belongings in.

The situation got so bad for one Hatfield, Pennsylvania resident that he decided to try to save money on rent by moving into a storage unit. Leland Brown Jr. was quoted by the New York Post as saying they live in a storage unit because “it’s cheap in comparison to an apartment.”

Unfortunately, living in a storage unit is also illegal. And Brown was ultimately ousted once a video documenting his money-saving tactics went viral.

The problem, though, is that affordable rentals are getting really hard to find, largely due to buyer demand. These days, it’s expensive to sign a mortgage. The record-low interest rates mortgage lenders were offering in 2020 and 2021 are long gone and have more than doubled. Because of this, a lot of people are continuing to rent rather than own, pushing rental costs to an unaffordable level for many.

If you’ve been struggling to find affordable housing, don’t assume that taking up residence in a storage unit is a good solution. Instead, try these tactics to eke out some savings on a rental.

1. Give up amenities and convenience for safety and space

You may want a rental that offers nice amenities and is conveniently located. But if you’re willing to live in a no-frills apartment in an area that’s safe but farther away from stores and transportation, you might save yourself a bundle.

Plus, some of the amenities you might pay for in a more expensive rental may not be worth the upcharge. Let’s say you can save $120 a month on rent by living in a building without a gym. Chances are, there’s a gym in town that costs far less than $120 a month.

2. Be open to roommates

There are definite benefits to living alone. You don’t have to deal with another person’s mess, noise, or complaints.

But when you live with a roommate, you don’t just get to split the rent. You also get to split costs like cable, internet, streaming services, and electricity. The savings there could be huge.

That said, if you’re going to be moving in with someone you don’t know and randomly find on the internet, get references. Ask to speak to friends, colleagues, and even former or current landlords to make sure you’re signing up to live with the right person.

Also, don’t hesitate to ask a potential roommate what their credit score is. A higher score indicates that they’re someone with a tendency to keep up with financial obligations rather than fall delinquent. That’s important when you and that person are jointly on the hook for rent.

3. Barter with your landlord

Being a landlord is hard work, and there are lots of tasks that need to be done. If you’re renting in a large building, chances are, your landlord has a property management team and/or a super to assist with upkeep. But if you’re renting a single-family home, you may have more wiggle room to barter with your landlord for lower rent.

Usually, it’s the responsibility of a landlord to do things like maintain a property’s lawn and remove snow. You may be able to negotiate lease terms where you take on those tasks in exchange for a lower monthly payment.

If housing is expensive where you live, you, too, may be tempted by the idea of living in a storage unit — perhaps in theory more so than practice. But since that’s not feasible, try using these tips instead. And if you’re a lower earner and truly can’t afford rent, don’t hesitate to explore your options for housing assistance. You can use this HUD tool to find your local public housing agency and speak to it about resources that may be 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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has positions in Citigroup. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Want to earn more money in 2024 without getting a side hustle? You can earn money from your savings. Discover how one writer earned nearly $1,250 in 2024. [[{“value”:”

Many people are seeking ways to earn more money to afford everyday expenses. Boosting your income can make it easier to manage rising living costs. Last year, I earned over $1,200 in additional income without getting a side hustle or doing part-time work. The extra funds helped me reach my savings goals sooner. Here’s how you can do the same.

I earned interest on my savings

I’ve been working hard to save money for various goals, including building my emergency savings. I want a solid stash in my emergency fund to be well-prepared if a costly, unexpected bill comes my way. Knowing that I can afford a surprise bill helps to ease my anxiety.

Because I’ve prioritized this personal finance goal, I now have a sizable stash in my high-yield savings account. Since I keep this cash in a high-yield savings account, I’ve been earning interest while my savings sit in the bank. In 2023, I earned just under $1,250 from interest.

I would have earned nothing if I had kept my emergency savings in my checking account. Keeping your savings in an interest-earning bank account is a great strategy to get rewarded with cash. It requires no extra work to earn money this way. It can be better than getting a side hustle if you have a busy schedule and many personal and professional responsibilities.

How much you earn depends on how much money you have saved and your bank account’s annual percentage yield (APY). The APY is the percentage you’ll earn in a year by keeping your money in a bank account. A higher APY will result in more money earned. It’s essential to review APYs when comparing savings account options so you know what to expect.

Here’s how to boost your earnings

If you have money saved for future expenses or goals, opening a high-yield savings account is wise. The longer your money sits in the bank, the more you can earn. But you may be wondering how to maximize the money you earn from savings account interest. The more you contribute to the account, the more interest you’ll earn. I boosted my annual earnings because I continued to stash more money in my savings account over the course of the year.

This strategy can help you consistently save money

Many people want to save money, but struggle to follow through. Life can get in the way, and some people forget to move money to their savings account, or spend the money they intend to save. One strategy that allows me to stay on top of my goals and remain consistent is automating the savings process.

You can set up automatic transfers through your online bank account. After doing this, cash will be regularly transferred from your checking account to your savings account. You can decide how often you contribute to your account — bi-weekly contributions work well for me.

When you no longer have to rely on making manual contributions, you can save time and stay on top of your goals. Try this strategy if you want to be a more consistent saver in 2024. Check out our list of the best high-yield savings accounts to review current rates — as of this writing, you can find APYs over 5%.

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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.
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There are some things in life you should approach methodically. Learn why one writer took her time becoming a full-time freelancer — and why you should, too. [[{“value”:”

I celebrated a year as a full-time freelance writer in January, and as I look ahead to the future, I can’t help looking back, especially because I know my journey can help others. Going freelance has gotten hot — Statista notes that by 2027, we’re projected to make up more than half of the U.S. workforce.

You might be considering throwing off the shackles of a W-2 job in hopes of forging your own freelance journey, but it’s not a decision to make lightly. What you’ll gain in flexibility and self-determination, you’ll lose in paid vacation time and subsidized health insurance.

So here’s how I approached becoming a full-time freelancer — and why it’s worth making these moves in particular on your journey.

1. I did it part-time first

Jumping into a new freelance career full-time can be a risk — will you have enough work? Will you be able to support yourself? Thankfully, by the time I even had the idea to quit my W-2 job and become a full-time freelancer, I already had a leg up.

I knew I liked the work (and could drum up enough to do it full-time). And I really loved getting to manage my own tasks and schedule for freelancing. This is because I started freelancing about six months before deciding I wanted to do more of it.

I’d recommend this move to anyone considering going freelance. Yes, you will impose on your already limited free time by taking on a freelance gig alongside your main job. Yes, it will be tiring. But there’s really no other way to assess how you’ll feel about a job if you don’t, you know, do it.

2. I paid off all my debt

I didn’t start out freelancing with the intention of making it my full-time gig. Originally, my mission was to increase my income so I could get out of debt and put money aside to become a homeowner. This worked out extremely well for me, and I managed to become debt-free more than three months earlier than I had originally predicted. With no monthly debt payments, I could breathe a bit easier knowing that if my income took a hit, I would have less to worry about.

Paying off all your debt might be unrealistic for you if you’re hoping to become a freelancer — and if you’ve got low-interest debt like a mortgage, it’s not necessary. But if you’ve got high-interest debt, there is really no scenario in which you shouldn’t try to pay that off. This is especially true before you make a change to your working circumstances. If your freelance work is slow to take off, knowing that you don’t owe creditors will definitely help you sleep better at night.

3. I saved beyond the recommended emergency fund

Before I pulled the trigger on quitting my full-time job, I was able to save enough money to cover nine months’ worth of expenses. I didn’t start saving until after I was out of debt, and ostensibly, this money was sitting in my high-yield savings account and intended to go toward the home purchase I was dreaming of.

However, the cool thing about money is that it’s fungible, and you can use it for anything. When I was leaving my W-2 job, I felt a lot better knowing I had so much put aside, and if freelancing went sideways, I had a safety net. In that situation, buying a house would move to the back burner anyway.

I highly recommend having at least six months’ worth of bills saved in an emergency fund before you cut the strings on W-2 employment. Remember, freelancers don’t get unemployment pay, and your workload may fluctuate, so having cash in reserve can help you get through the loss of a client or a particularly slow month.

4. I consulted with experts

Sometimes, you just need a neutral third party’s opinion — and this is why I love having a financial planner. He’s great at cutting through the noise and “what-ifs” of my own thoughts and pointing me in the right direction. He watched me pay off debt and build up my personal savings, and he was the one who recommended I consider becoming a full-time freelancer.

Similarly, I knew that my tax situation would become more complicated as a freelancer — technically, I’m a small business owner now. So rather than taking my chances on small business tax software (which is great, mind you — but my taxes made me nervous even when they were simple), I hired an accountant. Now I have someone calculating how much I need to pay to the IRS and my state every quarter, as well as filing my annual tax return for me.

You might want to consult with a few experts before you go freelance as well. And if taxes also raise your anxiety levels, I recommend hiring a professional.

As you can see, I did a lot of thinking and a lot of planning before I became a full-time freelancer. It wasn’t a decision I made lightly — and you shouldn’t either. Set yourself up for the best chance of success by making a plan.

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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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Not familiarizing yourself with Costco’s policies could cause you to lose money. Read on to learn more. [[{“value”:”

There are plenty of good reasons to shop at Costco regularly. For one thing, you might incur a smaller credit card tab if you can buy your groceries and household essentials in bulk.

Also, your Costco membership might save you a lot of money on big-ticket items like electronics, furniture, and even a vacation. So maintaining a membership could be a really smart personal finance decision.

But if you really want to maximize your savings at Costco, then it’s important to be familiar with the chain’s rules. And that means understanding how Costco’s return policy works.

There’s plenty of leeway, but you’ll need to know the details

One of the biggest mistakes you might make as a Costco shopper is losing out on the chance to get a refund on a purchase that doesn’t work out. You should know that for the most part, Costco will take back any item at any time if it doesn’t meet your expectations. This means you could conceivably buy a jacket for your child in January and return it in August if they never end up wearing it.

Of course, there are some exceptions to this rule. Costco may not take back certain items with a limited useful life expectancy, like batteries, if you wait too long to make a return. But seeing as how Costco just refunded a customer for a 2.5-year-old couch they decided they didn’t want, you have a pretty good chance of getting your money back if your return is reasonable.

That said, there are some rules you need to know about Costco returns. First, you only get 90 days to return electronics. These include:

TVsComputersCamerasMajor appliances

Secondly, if you’re returning larger diamonds, you won’t get an instant refund. Instead, you’ll get a temporary credit while a specialist inspects your returned item for authenticity. If it passes, you’ll then get your money back.

You should also know that Costco will not let you return cigarettes and alcohol. If you’re buying a lot of booze for a party, make sure you really need it, because otherwise, you might end up stuck with it. You also can’t return gold bars, silver coins, and Costco Shop Cards (the store’s version of a gift card).

Don’t lose money for no good reason

Reading up on Costco’s return policy could help you avoid a scenario where you don’t get your money back because you waited too long to bring a given item back to the store. It could also help you make a more informed decision as a consumer, such as in the case of buying something that can’t be returned at all.

But for the most part, Costco will take back purchases long after you’ve brought them home. So don’t be worried about bringing back a pair of pants you purchased five months earlier or a toy you bought your child for Christmas that’s still sitting unopened as of late February.

You may have heard rumors that making too many Costco returns will put you at risk of having your membership revoked. But you have to make a lot of returns for that to happen, and also, unreasonable ones, like bringing back rotting fruit 10 days after buying it and demanding a refund.

For the most part, if you’re reasonable with your returns, your membership won’t be taken away. So you shouldn’t hesitate to try to get your money back when a Costco purchase doesn’t work out.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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