Money Management

I recently replaced the roof on my home, which resulted in a reduced insurance bill. Here’s why that happened. [[{“value”:”

Homeowners insurance is expensive in the state where I live. Fortunately, though, I recently put a new roof on my house. And when I let my insurance company know that I had done that, I saw my monthly premiums drop.

Wondering just how much my home insurance costs fell after the roof install was completed? Here’s what you need to know about how much less I’m paying, thanks to the premium savings my new roof provides.

The amount I saved on insurance was surprising

After alerting my home insurance company that I had put a new roof on my home, I saw my insurance premiums decrease by a shocking 17%.

While I wasn’t necessarily expecting such a big price break, my experience is not unusual. In fact, when homeowners install a new roof, they can save anywhere from 5% to 35% on home insurance premiums depending on factors, such as:

Materials usedLocationInsurance company policy

In my case, the new roof replaced one that was close to 20 years old and that wasn’t in great condition. And I used good quality roofing material. All of this helped to maximize the premium reduction my insurer offered — despite that I’m in a state with very few insurers that offer coverage and rates here aren’t very competitive because of it.

Here’s why a new roof can result in a reduced insurance premium

My homeowners insurer did not lower the rates I was paying for coverage just because it was so impressed with how cool my new roof looks (although, the onyx black shingles really are pretty snazzy).

The insurance company reduced the costs because it now views my house as less risky to insure. The new shingles are in better condition than the old ones and are more likely to be able to withstand storms or other problems. They are more durable and less likely to be damaged in a storm and allow water to penetrate and damage the rest of my house. So the insurer is less likely to have to pay out a claim.

Since insurers price policies based on the likelihood they will have to pay for covered losses. Home improvement projects that make a house safer and sturdier tend to result in lower bills. This applies not just to replacing a roof, but to many other home upgrades as well, including:

Installing a security systemReplacing aging pipesReplacing old aluminum or knob and tube wiring with copper wiringAdding a new water heaterInstalling new HVAC equipmentInstalling leak detection systemsAdding freezing pipe sensorsInstalling smart locksPutting up storm shuttersInstalling impact-resistant windowsChoosing reinforced garage doorsPutting in a sump pumpAdding water shut-off valvesGetting LEED certification for a homeInstalling solar panels

These are just some of many possible changes to a home that could make a positive impact on home insurance premiums.

The key is to always let an insurer know about projects that are being done. This can help homeowners make certain they are getting the lowest possible premium prices while maintaining the protection for their assets that homeowners insurance is supposed to provide.

Our picks for best homeowners insurance companies

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

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Going to Costco can be a frustrating experience if you turn up empty. Here’s how to check your local warehouse club’s inventory before you make the trip. [[{“value”:”

If you’re a Costco member, it often makes sense to buy many of your household items at the warehouse club to take advantage of the discounted prices. But, you’ll want to be smart about how you shop.

One way you can do that is to avoid unnecessary trips to the store, as each time you visit a Costco, you’re at risk of making impulse buys that could drain your bank account. It also takes time and effort, and costs gas money, to visit a Costco.

To avoid wasting a trip — while also maximizing the value of your membership by scoring in-person deals — there’s one key thing you should always do before shopping at Costco.

Making this move before shopping at Costco can save you time and money

To ensure you aren’t wasting your time with a Costco visit, the one thing you should do before you head out to the warehouse is to make sure the crucial items you want are actually in stock and available.

See, the stock at each local club can vary at any given time, and the last thing that you want is to drive all the way to the store and not find the TV you want or the groceries you need.

By taking the important step of checking the stock before you go, you can avoid being forced to shop elsewhere (and potentially pay higher prices) if Costco doesn’t have the items you need. You can change your meal plan before you head out if a key ingredient is missing, or wait to go until the stock has been replenished.

This can save you from wasting time and gas money — and potentially setting yourself up to spend on your credit cards for either impulse buys or an inferior item you use as a substitute.

How to check if an Item is in stock at Costco

The good news is, it’s easy to make certain the things you need will be available. One of the best ways to do that, if you’re shopping for groceries or household items, is to use Instacart to check the stock before you head to the store. Instacart offers grocery delivery or pickup from Costco. So when you go on its website and search for items, you can see what’s available.

You don’t need to actually arrange for Instacart to deliver your stuff (and you probably shouldn’t, since there are added costs). But, you can still take advantage of the site’s inventory tracker to make certain the items you’re going to buy at Costco will be in the store aisles when you get there.

If you’re looking for Dave’s Organic Bread, for example, you could search for that item on Instacart after selecting your local warehouse club as the store you want pickup or delivery from. The site should show if Costco is running low or if there are several in stock waiting for you.

Costco also indicates that you can call customer service to ask if it has the desired item in stock, although you should be prepared with the item number or a description of it. While this can be more hassle than just using Instacart, it’s still worth doing for items not available through Instacart delivery.

Taking the step of making sure your items are in stock may seem annoying, but if it saves you one or two unnecessary visits to Costco, it’s well worth it.

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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.Christy Bieber 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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If your income was between $58,021 and $94,000, then you officially meet the definition of middle class. But how much does that matter? Find out here. [[{“value”:”

Most people have an idea of what a middle-class lifestyle looks like. Typically, most people think of the middle class household as people with good jobs, a decent house to live in, and enough money for vacations and small luxuries but not endless supplies of cash.

But how much income, exactly, would you need to be considered middle class in America? It’s pretty easy to find that out, since the U.S. Census publishes data on earnings and divides households into five quintiles.

Here’s what the Census data shows you’d need to make to be considered part of the official middle class based on your income.

If you earn this much, you’re in the middle class

According to the Census data, here’s how household income breaks down in the United States:

Households in the lowest quintile: $30,000 or lessHouseholds in the second quintile: $30,001 to $58,020Households in the third quintile: $58,021 to $94,000Households in the fourth quintile: $94,001 to $153,000Households in the highest quintile: $153,001 or higher

To be considered middle class — since you are literally in the middle quintile with an equal percentage of households above and below you — you would need to have a household income between $58,021 and $94,000.

If your earnings fall within this range, you’re officially in the middle class in the U.S. — but, depending on where you live and how you’re spending money, this may or may not mean you feel middle class.

There’s a lot more to money management than your income

While it’s easy to see what income makes you middle class, a lot more goes into whether you feel like you fall within this class category. While your income is important in determining how you manage your personal finances and whether you can build wealth, other factors also matter a lot in terms of how your financial life works.

One of the biggest issues that can shape how you feel about your financial situation is where you live. If you make a household income of $153,001, you’re technically in the upper class. And you might feel like it if you live in West Virginia where the median household income is $51,248. But if you live in Washington, D.C., where the median income is $90,088, you probably aren’t going to feel rich with a $153,001 income.

The financial decisions you’ve already made can also impact whether you feel middle class. If you bought a huge house and are spending 45% of your income on the mortgage and other housing expenses (well above the recommended 30%), then you may feel like you’re struggling financially even if you have a comfortable middle-class income.

The bottom line is, you want to try to maximize your earnings since the more money you make, the more you have to spend and save and accomplish financial goals. But feeling middle class — or even rich — and attaining the lifestyle you want is often going to require a lot more than just earning $58,021 to $94,000.

You’ll also want to take steps like:

Limiting your fixed expenses to no more than 50% of your incomeSaving 20% of your income for the future to provide financial security and peace of mindChoosing a place to live based on being to afford the essentials and a few life luxuries

If you can take these steps, you should be well on your way to setting yourself up for financial success — even if your income is above or below the range that puts you squarely in the middle class.

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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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Do you need health insurance in 2024? If you’ve lost your job or had other big life changes, see how HealthCare.gov or other insurance options can help. [[{“value”:”

The annual open enrollment period for health insurance ended as of Jan. 16, 2024. But open enrollment is not your only chance to get health insurance. If you’ve had a job change, or if you or someone in your family has had other big changes in their life or income, you can get health insurance outside of open enrollment.

If you don’t have health insurance, or if your company is going through layoffs and you’re worried about what happens next, rest assured that you still might have options to get health coverage for 2024. Let’s look at a few ways that you can get health insurance outside of open enrollment.

1. Use COBRA coverage (if you can afford it)

If you lose or quit your job in 2024, you might be able to keep using your employer-based health insurance by paying for COBRA coverage. However, COBRA premiums are often much more expensive than the amount you paid while employed full-time — you have to pay for your employer’s share of the premium as well as your own.

COBRA insurance is not the best long-term solution for everyone. But it can give you some short-term flexibility and peace of mind while you find your next job, next health insurance plan, or other options. For example, if you want to keep getting healthcare from a certain doctor or clinic that is in-network and covered by your old job’s health insurance, COBRA can be a good choice. It might be worth paying extra for COBRA premiums to keep getting the same coverage with the same provider network that you’re used to.

But if you don’t have special medical needs, don’t want to keep your old job’s health insurance plan, or can’t afford (or don’t want to pay) the high costs of COBRA premiums, you should try the next option on this list: a Special Enrollment Period.

2. Try to get a Special Enrollment Period on HealthCare.gov

Leaving a job is one of the most common reasons why people might need to find new health insurance. If you get laid off, quit your job to start a small business, become a full-time caregiver for children or other loved ones, or pursue early retirement, you might need to choose a new health insurance plan. Fortunately, you have options.

On HealthCare.gov, there is a special rule for health insurance sign-ups called a “Special Enrollment Period.” This gives you the right to choose a new health insurance plan any time of year — but only if you have a qualifying life event (QLE). QLEs are certain big life changes to your income, family, or household that cause you to lose your coverage or re-evaluate your insurance.

Here are a few qualifying life events that can enable you to get a Special Enrollment Period on HealthCare.gov:

Losing job-based health insurance coverageSignificant decrease in household incomeChanges in household (such as getting married, getting divorced and losing your coverage, or welcoming a new baby or adopted/foster child)Moving to a new home (in a new ZIP code or county)Loss of eligibility for some government insurance programs like Medicaid, state Children’s Health Insurance Program (CHIP) or premium-free Medicare Part A

Some of these changes can be retroactive to the past 60 days. So if you’ve recently had a big change in your family, your home, or your job, check with HealthCare.gov to see if you can get a Special Enrollment Period to enroll in a new health insurance plan (or change your current plan).

3. Consider short-term health insurance (but beware of the limitations)

If you somehow don’t qualify for a Special Enrollment Period, missed the deadline, or otherwise are in some special circumstances that prevent you from getting health insurance, you have one other option: short-term health insurance.

This is a type of insurance that does not cover all of the same care, or follow all of the same rules, as the plans on HealthCare.gov. Insurance premiums on HealthCare.gov are not always cheap (although you can get premium tax credits based on your income), but the plans are all required to meet the standards of the Affordable Care Act (ACA). Being an “ACA-compliant” plan means the insurance company is required to cover you for a wide range of conditions and treatments, with no exclusions for pre-existing conditions.

Short-term health insurance plans don’t work like that. The plans might be offered by some of the same insurance companies you’d see on HealthCare.gov, but short-term plans don’t have to comply with ACA standards. Your premium might be lower with a short-term plan, but the coverage is less.

For example, many short-term health insurance plans might not cover:

Pre-existing conditionsMaternity careMental health careHighly expensive treatments (there are “lifetime limits” on the amount of coverage you can get with a short-term plan)

If you’re young, generally in good health, and have no other options, short-term health insurance can be better than taking the risk of going uninsured. These plans do cover some types of care, and could be a decent choice to tide you over until you find your next job or can get covered by a HealthCare.gov plan.

Bottom line

If you don’t have health insurance, you still have options to get covered outside of annual open enrollment. Start by going to HealthCare.gov and seeing if you can get a Special Enrollment Period based on recent changes in your life. If you can’t get a HealthCare.gov plan, you might consider short-term health insurance as a last resort.

Our best car insurance companies for 2024

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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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Consumers are ramping up their hybrid purchases. Read on for a few reasons why consumers are choosing them over EVs. [[{“value”:”

Hybrid vehicles are increasingly popular with American drivers, and more than 1.2 million were sold last year. Their popularity is surging despite a general push by automakers to sell fully-electric vehicles (EVs).

While EV sales are growing, some consumers are weighing the benefits and drawbacks of hybrids, and many are choosing to go with hybrid options. To find out why, let’s look at five perks hybrids may have over EVs.

1. You don’t have to plug them in

This might seem obvious to some readers, but recent Consumer Reports research shows that 37% of Americans believe hybrid vehicles must be plugged in to run. But they don’t. Even plug-in electric hybrids can be used without having to plug them in.

A combination of power from the engine and regenerative braking recharges the hybrid battery. This is a significant perk, considering that charging stations are less prevalent than gas stations. Charging vehicles at home is also inconvenient for many apartment renters with limited access to charging stations or outdoor electrical outlets.

Those who choose an EV over a hybrid can use the government’s Alternative Fuel Vehicle Refueling Property Credit to receive up to $1,000 to help with the cost. See if you qualify and find more details about the program before signing on.

2. You can take it to a regular mechanic

While there are some aspects of a hybrid electric system that need specific training to work on, much of the vehicle can be serviced by most mechanics. Meanwhile, electric vehicles almost always need to be serviced by mechanics specifically trained to work on EVs.

While hybrids are more complex than traditional gas-powered vehicles, EVs take the complexity to another level. EVs often have specialty parts that may be more expensive and take longer to repair after an accident than other vehicles, making a trip to the repair shop costly.

3. They’re $17,000 cheaper

There’s no getting around the fact that EVs are expensive. The average cost of a new EV was $59,400 last year, compared to $42,381 for a hybrid — that’s a $17,019 difference!

The high vehicle prices mean some people take longer to pay them off. The average repayment length for a new car is nearly six years, and Experian says that eight-year loans are now available. The credit reporting agency notes that higher prices — including from EVs — are driving up the length of loans.

Some hybrid buyers may take out longer loans, too, but with the initial cost of their vehicles being much lower, they’ll likely end up paying less or paying off the vehicle sooner.

The good news for EV and hybrid buyers is that the government is giving up $7,500 in tax credits toward some vehicle purchases. Not all vehicles qualify, but you can find out more about the program and which cars are eligible on FuelEconomy.gov.

4. It may be cheaper to insure

Let’s start with the bad news: Hybrids and EVs will both cost more to insure than traditional gas-powered vehicles. But the good news is that car insurance for hybrids will likely cost you less than an EV.

Car insurance companies decide how much your premiums will be partially based on how expensive your vehicle is to repair or replace. Because EVs are more expensive and pricey to repair, many may cost more to insure than hybrids. For example, hybrid batteries cost under $3,000 to replace, while the average battery cost for an EV is between $7,000 to $30,000.

You can help lower your insurance costs by keeping your driving record clean and improving your credit score. Comparing different car insurance companies is also a good way to find cheaper insurance rates.

5. They require less raw battery materials

EVs don’t give off any tailpipe emissions, and that’s great for the environment. However, the downside is that they require significant raw materials to be mined to make their batteries. Some materials are located in countries with few environmental or safety regulations.

Hybrids need batteries, too, but they’re much smaller. Using the same amount of raw battery materials, you can make about 17 hybrid batteries for every one EV battery. That doesn’t necessarily mean EVs are less environmentally friendly than hybrids. But if you’re on the fence between a hybrid or an EV, it’s good to know some of the details that impact their overall environmental footprint.

An EV is a great choice for many buyers. But if you’re looking for the benefits of an environmentally-friendly vehicle that costs less, is likely cheaper to repair, and may save you money on car insurance, a hybrid is probably the better choice.

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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The Earned Income Tax Credit could give you a much larger refund this year. Read on to learn the requirements to claim it. [[{“value”:”

We’d all love to pay the government a little bit less at tax time, and fortunately, there are things we can do to reduce our bill. One of the most important is to claim every tax break you qualify for. Tax deductions reduce your tax liability — how much of your annual income the government taxes — while credits reduce your tax bill directly.

There are a lot of credits and deductions out there, but there’s one in particular that’s especially valuable. It saved the average family $2,541 last year. Here’s how to know if you can claim it on your 2023 tax return.

What is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is a tax credit aimed at low- to middle-income families. It is a refundable tax credit, which means that you can claim it as a refund even if you don’t owe any tax. For example, if you qualified for a $1,000 EITC and you didn’t owe any taxes last year, you could still claim that $1,000 refund just by sending in your 2023 tax return.

The value of the credit depends on your tax-filing status, income, and the number of qualifying children you have. Here’s the maximum EITC for the 2023 tax year:

No qualifying children: $6001 qualifying child: $3,9952 qualifying children: $6,6043 or more qualifying children: $7,430

However, some people may get less than this if their income is too high. And others won’t be eligible for the credit at all.

Who can claim the Earned Income Tax Credit?

To claim the EITC, you must meet the following criteria:

You and everyone you’re claiming on your taxes has a valid Social Security number.You’re a U.S. citizen or resident alien.Your income is less than the thresholds listed in the table below for your number of children and tax-filing status.You had investment income of less than $11,000 during 2023.You’re not filing Form 2555, Foreign Earned Income.

Income is the biggest factor here. The following table shows the maximum adjusted gross income (AGI) you can have in order to claim the EITC based on how many qualifying children you have and your tax-filing status.

For the purpose of the EITC, a qualifying child is one who meets all four of the following requirements:

AgeIs permanently disabled ORIs under 19 at the end of the year and younger than you ORIs under 24 at the end of the year, is a full-time student for at least five months, and is younger than youRelationshipIs a biological, step-, adopted, or foster child ORIs a full-, half-, or stepsibling ORIs a grandchild, niece, or nephewResidencyHas lived with you for more than half the tax yearJoint returnIs unable to file a joint tax return with another person

If you’re still not sure whether you or your child qualifies, the IRS has an EITC Assistant tool that can help.

How do you claim the Earned Income Tax Credit?

If you’re employing a tax professional to help you file your return, they should automatically check to see whether you’re eligible for the credit. If you are, they’ll fill out the necessary paperwork to get you your credit.

The process is not much different for DIY filers. Most tax software today is programmed to ask you simple questions to determine whether you qualify for the EITC. All you have to do is answer them, and if you’re eligible, the software will automatically apply the credit to your return.

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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. Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool recommends InterContinental Hotels Group Plc. The Motley Fool has a disclosure policy.

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