Money Management

Prescription drugs can be life-saving, but they can burn a hole in your wallet quickly. Here are five ways to keep your costs down this year. [[{“value”:”

Prescription drugs cost Americans an average of $1,432 per person in 2021, and good old inflation keeps driving that number higher. Yes, insurance covers some of the cost. But too many still wind up making tough choices between a prescription drug copay and other household necessities.

A lot depends on the kind of drugs you need and your insurance policy. But the following five moves could help you reduce how much you spend on your medications in 2024.

1. Consider generics

Generic drugs have the same active ingredients as their name-brand counterparts, but they’re often significantly cheaper. Whenever possible, talk to your doctor or pharmacist about the possibility of switching to a generic form of your regular medications.

2. Compare prices

Your go-to pharmacy may not have the cheapest rates all the time. Check with other pharmacies in the area or even mail-order pharmacies to see if they offer lower rates on your medications. If so, consider having your prescriptions transferred there instead.

3. See if the manufacturer can assist you

Several pharmaceutical companies have payment assistance programs for those who cannot afford the medicine’s regular price. There are usually eligibility requirements you must meet, and the benefits vary by company and drug. You could get discounts, copay assistance, or even free medications, though, so any hoops you have to jump through may be worth it.

4. Try other discount programs

You may have heard about programs like GoodRx or SingleCare that give you discounts just by scanning a card at your local pharmacy. It only takes a minute to check these sites, and the savings can be significant — up to 95% in some cases.

5. Investigate government assistance programs

The federal government and many state governments have assistance programs of their own to help low-income individuals get their medications without draining their bank accounts. Like pharmaceutical company programs, there are usually eligibility requirements you must meet to participate and benefits can vary. Contact your state’s health department or social services agency to learn what options are available to you.

If you have any questions about what your health insurance or any assistance programs cover, it’s best to contact the providers directly. And don’t forget to re-evaluate your payment strategy whenever your insurance, income, or health needs change.

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Cars are expensive these days. So are auto loans. Read on for ways to save. [[{“value”:”

It’s common to set financial goals at the end of one year that you’ll fulfill the next year. And in a 2023 survey by Edelman Financial Engines, 22% of respondents said they were aiming to buy a new car in 2024.

You may be in the market for a new car if your current car is giving out on you, or if you’ve moved to an area where public transportation isn’t so reliable. Unfortunately, it’s not the best time to be purchasing a new vehicle.

Kelley Blue Book reports that the average new car price in November 2023 was $48,247. And while that’s a 1.5% decline from a year prior, it’s hardly a small amount.

Compounding the problem is that borrowing rates are high right now following a string of interest rate hikes from the Federal Reserve. So whether it’s an auto loan you’re looking to sign, a personal loan, or a home equity loan, you’re looking at paying a bundle of interest — even if your credit is good.

However, if a car purchase isn’t something you want to put off, there are a few steps you can take to save money on a new vehicle. Here’s how.

1. Don’t go for the fancy features

The price you’ll see listed for most vehicles is usually the bare bones price — meaning, the absolute minimum you can expect to pay for a given car. It’s not unreasonable to want to upgrade your car with a few decent features. But that doesn’t mean you need every single feature that’s possible to add on, nor does it mean you need the highest-end features.

Let’s imagine you’re offered the option of cooled seats. That may be a nice thing to have on a summer day. But if you’ve never had a vehicle with cooled seats before, and you’ve made it thus far just fine, then you don’t need to pay for that feature if you’re trying to shave money off the cost of your new vehicle.

2. Boost your credit score before applying for a car loan

Since borrowing rates are high right now, you may end up paying more for an auto loan than you want to. But still, a boost to your credit score could leave you with a more competitive interest rate, relatively speaking. For example, if your credit score is currently 720, raising it to 780 or 790 could result in a lower loan rate.

There are different steps you can take to raise your credit score. If you have a little time until you think you’ll be buying your car, pay every single bill in a timely fashion and see if it helps your payment history. That’s the single most important factor when calculating your credit score.

You can also try paying off some credit card debt to whittle down your total balance. Using less of your available credit can help increase your credit score.

And finally, check your credit report for errors. If you spot a mistake that reflects poorly on your borrowing history, getting it corrected could lead to a nice jump in your score. You can access free copies of your credit reports at AnnualCreditReport.com.

3. Shop around with different lenders

Auto loan rates may be up right now. But that doesn’t mean all lenders are charging the same rate.

It pays to shop around with a few different lenders before signing a car loan. Don’t assume that the financing offer you get through your dealership is the best one out there, either. Spend a little time looking, since it’s a loan you may be paying back for years. You might want to check with your current bank for auto loan options, as there may be a relationship deal available to you.

While it’s currently not the best time to buy a car, financially speaking, there are ways you can lower your costs to some degree. Be mindful of these tips when you do your vehicle and loan shopping so you’re able to walk away with the best deal possible.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Rewards credit cards should help you save money, but that depends on how you use them. Learn about the rewards card mistakes that could cost you. [[{“value”:”

Rewards credit cards are popular, and for good reason. With a rewards card, you can turn your everyday spending into cash back or travel rewards. More than half of all consumers have at least one, according to credit card research by The Motley Fool Ascent.

Used correctly, rewards cards help you save money. But not everyone uses these cards correctly. There are a few costly mistakes that people often make with this type of credit card.

1. Carrying a balance

The only way to come out ahead with a rewards card is paying the balance in full every month. If you carry a balance, you’ll be charged interest. Credit card rewards will never outweigh the cost of interest charges.

To confirm this, compare your card’s rewards rate to its APR. With the best credit cards, you may earn 2% back on purchases. Or, you could get a base rate of 1% to 1.5%, with a higher rate of 3% to 6% in bonus categories.

The average interest rate on credit cards is 21.47%, according to the Federal Reserve. And rewards cards often have above-average interest rates to make up for those generous rewards programs. So when you carry a balance, you’re paying 20% or more per year to earn about 2%. That’s a losing proposition.

If you have credit card debt, focus on paying it off. You may want to look at balance transfer credit cards. These let you refinance your debt at a 0% intro APR. Wait until you’re out of debt to worry about credit card rewards.

2. Using rewards as an excuse to spend more money

One of the dangers of rewards is that they incentivize spending money. That can cause you to make purchases you normally wouldn’t.

For example, you see a $400 jacket that you like. You don’t need it, and if you spend that much, you won’t reach your savings goals for the month. To justify it, you tell yourself that your rewards card earns 3% at this store. That’s great, but it’s only $12 in rewards, so you’re still down $388.

Here’s another important rule to come out ahead with rewards cards: Stick to your usual spending habits. Use your rewards card to pay your regular bills. Don’t start spending more because of the rewards you’ll earn.

3. Choosing low-value redemptions

Once you’ve earned rewards, you need to redeem them. Many rewards cards give you a variety of redemption options. This is especially true with travel credit cards, which are known for offering lots of ways to redeem points. It can also be the case with cash back cards, though. Some of them let you redeem your cash back for gift cards or products in the card issuer’s shopping portal.

Check the value of your rewards with each redemption option before you use them. The value isn’t always the same across the board. For example, some travel cards let you redeem rewards for $0.01 per point or more toward travel purchases. If you use them for cash back, you may only get half that. On 100,000 points, that’s a difference of $500 in value.

Your rewards cards shouldn’t cost you money, so make sure you’re not paying interest or spending more than usual to earn rewards. While you can use your rewards however you’d like, it’s a good idea to pick a redemption option that gives you the most value for them.

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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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Is lingering debt stopping you from growing your wealth? Here’s what to do. [[{“value”:”

Many people are familiar with credit card debt — either because they’re carrying balances themselves or know folks who are. Credit card debt can be stressful because you’re on the hook for monthly payments that eat away at your income. But beyond that, it could also impede your ability to achieve some long-term financial goals.

In a recent survey by Edelman Financial Engines, 39% of respondents say that credit card debt is their biggest threat to building wealth. And 32% of wealthy respondents feel the same.

It’s easy to see why. When you owe money on a credit card and are paying interest on a balance, that’s money you can’t use for other purposes. You can’t use it to score a great rate on a CD, and you can’t invest it in stocks and other wealth-building assets.

If you’re currently in debt, it’s best to do what you can to bust out of that situation as quickly as possible. The sooner you stop spending your money on interest, the sooner you can put it to work. Here are a couple of steps you can take to rid yourself of lingering credit card debt.

1. Consolidate your debt

Consolidating credit card debt won’t always make it cheaper. But it might, depending on your situation.

If you’re carrying balances on multiple cards, a transfer to a single card with a 0% introductory APR could buy a reprieve on accruing interest for a period. That could make it possible to get ahead of your debt more efficiently.

Another consolidation option to consider is a personal loan. A personal loan lets you borrow money for any purpose you deem necessary. So you can take out a personal loan that’s large enough to pay off your credit cards and then work your way through paying off that single loan as you can.

The benefit is that you’ll not only get a fixed interest rate on your debt (whereas credit card interest can be variable), but you might snag a much lower interest rate than what your credit cards are charging you. All told, paying off a personal loan might be a lot more manageable.

2. Work a side job — at least for now

“Get a second job” is advice that tends to get thrown around a lot in the context of financial struggles. And while it’s legitimate advice, it’s not always so easy to follow.

It can be difficult to take on a second job when you’re already working full time and have other commitments. But if you’re specifically trying to pay off debt, your side hustle doesn’t have to be permanent. You can work that second gig until you’re debt-free, and from there, ditch your side hustle if you no longer want it eating up precious hours of your free time.

Of course, you could try cutting back on spending to pay down your credit card debt instead of taking on the hassle of a second job. But you’ll need to be honest with yourself here.

Can you really cut your expenses to a large enough degree to make a dent in your debt pile? And will giving up the things you love make you miserable day in, day out? You may actually find that working a side job is less painful, so to speak, than not being able to join your friends for dinners out or concerts.

Credit card debt can very much be a barrier to building wealth. If you’re currently grappling with it, take these steps to work your way out as quickly and efficiently as possible.

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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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TikTok is aflame with videos about saving money. Find out how this social media trend could help you meet your financial goals. [[{“value”:”

If you’ve ever felt like it’s easier to talk about sex, politics, religion, or pretty much anything that’s not money, you’re not alone. An Empower survey last year found that 62% of Americans don’t talk about money. Sadly, many of us didn’t learn about personal finances when we were young. Throw in money taboos, and it’s not surprising that a lot of people are suffering in silence.

Enter loud budgeting. Gone are the days when money gets shoved into a dark corner with the distant hope it might somehow flourish in a mushroom-like manner if we just ignore it hard enough. Money talk is shaking off the stigma. Whisper it, but it’s even becoming cool.

What is loud budgeting?

According to TikToker Lukas Battle, loud budgeting is the opposite of quiet luxury. “It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend,'” he said. Influencers on social media are telling their followers that it’s OK to talk about their finances. More than that, it’s OK to say that an expensive night out or luxury vacation isn’t how you want to spend your money.

Rising living costs have put pressure on many people’s bank accounts in recent years. Credit card debt levels are increasing. Savings account balances are falling. And the message that’s starting to go viral is that you don’t have to splurge to be trendy. You can budget your time and money according to the things that matter to you.

Getting started with loud budgeting

Budgeting loudly is not about announcing the details of your income, savings, and investments on social media. In fact, that’s one of the big no-nos when it comes to money talk. It’s one thing to set clear financial boundaries, it’s quite another to advertise your finances to potential scammers and online thieves.

If you’re interested in loud budgeting, here are some steps to take.

1. Get up close and personal with your money

It’s hard to set specific targets if you don’t have a clear financial picture. Go back through your recent bank statements or use a budgeting app to see where your money goes each month. How much are you spending in comparison to what you earn? Do you have any money in your savings account to tide you over if things go wrong? Are there spending areas that surprised you?

Once you’ve got an idea of what you’re doing with your cash, you can start to think about what changes you might make.

2. Set financial goals

The most powerful thing you can do when setting goals is to be clear on your ‘why.’ If you want to pay down debt, imagine how it will feel to be debt free. If you’re saving a down payment for a house, put a picture of your dream home somewhere you’ll see it every day. That visualization can help you stay motivated.

The more specific and achievable you can make your goals, the better. Saying, “I want to save more for retirement” is vague. Instead, you might say, “I will put $50 a week into my retirement account because I want to have the freedom to stop working when I am 65.” You could automate the transfer from your checking account and plan a small monthly celebration to reward yourself.

3. Share, support, and celebrate

Talking to your friends about money could mean you encourage one another or even celebrate when you hit specific milestones. It can be empowering. Let’s say you’ve allocated 15% of your income to entertainment. It’s OK to be upfront and say you can’t afford a big night out or fancy dinner if that’s not how you want to spend your fun money.

Speaking personally, some of my friends have been relieved when I’ve suggested low-cost or free alternative activities. They also have savings goals, debts to pay off, and financial plans they want to keep. Telling people I have other financial priorities has opened the door to conversations about budgeting, saving, and money worries.

It’s up to you how far you go. Just be aware that tone matters too. Money can be a sensitive topic, so it’s important not to sound judgemental, boastful, or critical of other people’s choices. This is about communicating your goals and boundaries in a way that invites the people close to you to support and even join in.

Loud budgeting is one way to cure money shame

A lot of people feel shame when they think about money. They might worry they don’t have enough of it. Or too much. Perhaps they don’t feel they have the skills they need to manage it. Or don’t want to tell people they are in debt. For others, money shame comes from experiences in childhood.

The consequences of money shame can be serious. In a recent survey from the American Psychological Association, 63% of people said money was a major stressor in their lives. It can lead to overspending, exacerbate debt issues, damage relationships, and be a contributing factor to depression and even suicide.

Taking the stigma out of money talk can be transformative. It’s the first step on a journey to understanding both your relationship with money and ways that you might change it. Loud budgeting is one way to do that, and for that reason alone, I hope it’s a trend that sticks with us.

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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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