Money Management

Budgeting is not a dirty word. If you want to improve your personal finances, just say no to these feelings about budgeting. [[{“value”:”

Want to know the No. 1 secret hack to feeling better about your personal finances? According to a new survey, from Wells Fargo and The Female Quotient (The FQ), people who are happy about their financial situation are much more likely to create a budget.

The survey found that 85% of people who are happy with their personal finances have created a budget, compared to only 75% of people who are unhappy with their financial lives. The survey also found that people who are unhappy about their finances are more likely to say that budgeting makes them feel:

Stressed outSad that they can’t buy thingsLike they’ll never have enough money

If you’re reluctant to set up a budget, these beliefs could be sabotaging your financial success. Let’s look at three bad excuses for not budgeting — and how to overcome them for a happier financial life.

1. “Budgeting stresses me out.”

The survey from Wells Fargo and The FQ found that, among people who are unhappy with their financial lives, 77% say that budgeting “stresses me out.” (Only 45% of people who are happy with their finances feel this way.)

If budgeting feels stressful, that’s understandable. Too often, people see it as a painful math problem that ruins all the fun in life. But budgeting doesn’t have to feel like a punishment or a restraint; it can be a source of clarity and calm. When you set a budget, you can have confidence that every dollar in your paycheck is going to be used for a specific purpose, and that you will have enough money for all of your important financial goals.

How to overcome this bad budgeting attitude: Sign up for a budgeting app. Today’s best budgeting apps make it easier than ever before to set a budget, track your spending, and automatically manage your money. Budgeting apps can help you see exactly where your money goes, get organized in how you spend and save, and even set money aside in digital “envelopes” for specific savings goals. No stress required!

2. “Budgeting makes me feel like I’ll never have enough money.”

Another misconception about budgeting is that it’s all about scarcity, austerity, and forcing yourself to make do with less. The Wells Fargo/The FQ survey found that 81% of people who are unhappy with their finances said that “budgeting makes me feel like I’ll never have enough money.” (Only 44% of people who are happy with their finances agreed with this statement.)

It’s true that some people love frugality and are good at figuring out how to squeeze a few extra dollars out of every occasion. But budgeting doesn’t have to involve a “scarcity mindset.” What if budgeting was about abundance? Budgeting can give you feelings of financial freedom.

When you have a good budget and you know where your money is going, it can give you confidence to spend more freely. If you already have saved for your vacation, you can enjoy spending that extra cash. If you already know that your retirement savings contributions are coming out of your paycheck (by “paying yourself first”), you can feel better about spending the rest.

How to overcome this bad budgeting attitude: Setting a budget doesn’t have to feel like a diet. Budgeting apps can give you a clearer picture of where your money is going — and help you cut back on the “empty calories” of your monthly spending. When you cancel some unwanted bills or cut back on unconscious spending, this frees up more money to spend on what you truly crave.

For example, you might save hundreds of dollars per year by making a few changes to your streaming subscriptions, cellphone service, and home internet. Credit monitoring services like Credit Karma can also give you free ideas for where you could get a better deal on monthly expenses like auto insurance.

3. “Budgeting makes me feel sad that I can’t buy certain things.”

The survey from Wells Fargo and The FQ found that 82% of people who are unhappy with their current financial situation said that the idea of budgeting makes them feel “sad I can’t buy certain things.” (Only 46% of financially happy people felt this way.)

This is another example of how too many people have a scarcity mindset about budgeting. In reality, using a budget the right way can give you more spending power to buy the things and experiences that are really important to you!

How to overcome this bad budgeting attitude: Use your budget to set up automatic savings for specific savings goals. Want to buy a plane ticket, a vacation, a new car, or a house? Create a budget. Get a detailed understanding of where your spending is happening — and see how to redirect money into savings.

Several banks and personal finance apps now offer automatic savings and specific savings goals. Ally Bank has savings “buckets” and SoFi Bank has “vaults” that work like digital banking envelopes to set money aside for goals of your choice. Both of these banks also allow you to sign up for automatic savings, where money transfers from checking to savings automatically based on your paydays and spending patterns — no effort required.

Bottom line

Don’t get dragged down by self-defeating attitudes about budgeting. Using a budget is not about scarcity, sadness, or self-denial; it’s about finding empowerment and using your money for its highest purpose. Creating a budget can make you feel better about your personal finances and help you get more of what you want in life.

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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.Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Ally is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Filing your taxes doesn’t have to be a challenge if you use online software programs or take advantage of free assistance. Learn more about your options here. [[{“value”:”

Filing your taxes as early as possible makes good sense for most people. You can get your tax refund back into your bank account ASAP and check this annoying task off your to-do list.

Of course, filing taxes is easier said than done since you’ll have to figure out how to fill out the paperwork the IRS requires. The good news is, there are cheap and simple ways to take care of that task. Just check out these three options to get the help and support you need.

1. Use free e-filing software

If you have an adjusted gross income (income after deductions) of $79,000 or less, you should qualify to file your taxes at no cost with guided tax software.

Guided tax software leads you through the process of filing taxes by asking you simple questions like whether you made any lifestyle changes during the year or whether you’re a homeowner. It makes it pretty simple to avoid mistakes since you don’t have to know a lot of technical details — you just need to follow the step-by-step instructions in the software.

The IRS works with eight “trusted partners” that offer these free e-file programs, including TaxSlayer and TaxAct, which were both on The Ascent’s picks for best tax software. TaxAct and TaxSlayer also provide free state tax returns in some states, while some of the other trusted partners, like 1040Now, charge for state tax returns no matter where you live.

As long as the program you choose lets you file for free in your state, you should be in pretty good shape using any of the IRS’s trusted partners to get your taxes done right.

2. Get free tax help

Two programs allow you to get free help preparing your taxes by trained professionals.

The Voluntary Income Tax Assistance (VITA) program is available for most taxpayers who make $64,000 or less, people with disabilities, and taxpayers who speak limited English.The Tax Counseling for the Elderly (TCE) program offers free taxpayer help to people age 60 and older.

If you qualify based on your income, age, disability status, or because your English is limited, the helpful volunteers taking part in these programs can walk you through the filing process and help you complete your forms correctly. This is an easy way to file your taxes since you’ll be getting professional support.

You can use the VITA/TCE Locator tool on the IRS website to find someone to help you.

3. Use MilTax

If you or someone in your family are in the military, MilTax is a free tax software program operated through Military OneSource. The program is specifically designed to deal with some of the complex tax issues raised by military life, including combat and training pay, deployments, and living OCONUS.

You can access the software online, and even get personalized help from military tax experts to help ensure you don’t make any mistakes.

Each of these options makes it cheap — and often free — to file your taxes, and they include safeguards that can help you ensure you’re getting everything right.

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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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Living near Costco makes shopping there more convenient. But read on to see why a membership might benefit you even if there’s no store close by. [[{“value”:”

There are 602 Costco locations across the U.S. and Puerto Rico. But that doesn’t guarantee that your home is conveniently located near a Costco warehouse club store.

You may be interested in signing up for a Costco membership. But if the closest store to your home is an hour away, you’re probably not going to visit very often. In that case, you may be worried that you won’t get the best use out of your membership. But here’s why joining Costco could end up being a sound financial decision even if there’s no store anywhere near you.

1. You can still shop online

The prices you’ll see on Costco.com are often higher than the prices you’ll see in stores. And part of the reason is that many Costco.com items ship for free, so Costco has to build that cost into its prices.

But even with prices being slightly higher online than in store, Costco’s website is still loaded with great deals. Also, you may find certain items on Costco.com that are exclusive to the website and aren’t available in stores.

Now, just so you know, it is possible to shop at Costco.com without a membership. But non-members pay a 5% surcharge on online purchases. Also, there are certain items on the website designated as members-only items, so if you don’t join, you won’t be able to buy those at all — even if you’re willing to pay a surcharge.

2. You can benefit from Costco Travel

Travel can be a big expense. If you’re planning a vacation, then a Costco membership might pay off with the savings it gives you on your next trip.

Costco Travel offers a range of exclusive vacation packages that include cruises, resorts, and theme park stays. With Costco Travel, you also get access to a team of professionals who can serve as your personal travel agent of sorts.

3. You can stock up on non-perishables once a year and save

Buying food in bulk can be a source of savings, but you may not get too many opportunities to do that if you don’t live near a Costco. But even if you only manage to make it out to Costco once a year, you might still end up coming out ahead financially with a membership if you do a major stock-up on things like toilet paper, household cleaners, and other such items you use regularly during the year.

A basic membership to Costco costs $60 for the year. But you might save more than $60 on a single trip if you’re doing a large haul.

Remember, too, that you may be able to time your Costco runs to other plans you have. Let’s say your closest Costco is 60 minutes away, but it’s only 10 minutes from your good friend’s house. You could always plan to stop in for food and supplies after visiting that friend.

Having a Costco store nearby can definitely help you make the most of a membership. But don’t assume that a membership makes zero sense if there’s no store in your vicinity. You may find that between online orders, travel packages, and the occasional in-person visit, your membership fee more than pays for itself.

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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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Credit card perks aren’t always as great as they sound. Learn about the worst perks that card issuers use to attract new customers. [[{“value”:”

When you’re looking for a new credit card, perks will probably be a big part of your decision. But not all benefits are that helpful. Some don’t offer much value, and some are a pain to use.

It helps to know about these dubious perks so they don’t convince you to get the wrong card. Below, you’ll find five that are fairly common and are more trouble than they’re worth. It doesn’t mean that every card that offers them is bad, but you should make sure the card has benefits of more value before you apply.

1. Monthly spending credits

Spending credits are popular, especially on cards with annual fees. A card may offer a credit for travel, dining, or ride-hailing services. For example, if a card has a $300 annual travel credit, then it covers your first $300 a year in travel purchases.

These are fine when they’re annual credits. Some cards offer monthly credits, and that’s where it gets annoying. They’re doled out in smaller increments, such as $10 a month. You need to remember to use them every month, or you miss out.

It’s better for the card issuer, but worse for the cardholder. I always look for perks that are easy to use. I’m not interested in remembering to spend a $10 credit for The Cheesecake Factory every month.

2. Sign-up bonuses on store credit cards

Store credit cards usually aren’t a great choice, with a few exceptions. One of the drawbacks is their sign-up bonuses, which tend to be much less than what you can get from other cards.

The bonus offer I see most often for store credit cards is an introductory discount. For example, get 20% off your first purchase made at that store. That’s a big discount, and it sounds like a fantastic deal. But let’s put that in perspective.

If you spend $200, and get a 20% discount, you’ve saved $40. Some cash back cards offer sign-up bonuses of $200 after you spend $500 in the first three months. You could just put your regular bills on one of those cards for an easy $200 in bonus cash. That’s a bigger bonus than I’ve seen from any store card.

3. Rotating bonus categories

Most rewards credit cards have fixed bonus categories. If you get a gas and groceries card, it always earns bonus cash back or points on gas and groceries.

There are also cards that offer rotating bonus categories. The bonus categories change every quarter. That could be Amazon.com purchases one quarter, gyms and movie theaters the next, and so on. They also typically require that you go into your account and activate the new bonus categories every quarter. If you don’t, you don’t earn bonus rewards.

I’ve always thought this was another frustrating, overly complicated perk. If you don’t spend much in a quarter’s bonus categories, you’re out of luck. And needing to activate your bonus categories makes no sense. It’s just a way to trip up people who don’t remember to do that.

4. Airline fee credits

One type of spending credit some travel cards offer is an airline fee credit. What does that cover? Good question!

That seems to vary based on the card issuer and the airline. It doesn’t cover tickets. Some cardholders have found ways to get around this by purchasing airline gift cards, but this doesn’t always work. It normally covers baggage fees, seat upgrades, in-flight purchases, and lounge passes, to give you a few examples.

You might like this perk if you regularly pay airline fees. I don’t, and there are plenty of other ways to avoid fees when you fly, so this perk can end up being a pain to use.

5. Extravagant designs

This one is a specialty of every fintech company launching its own credit card. They give it a gaudy design to make it seem more luxurious than it is. Here are a few horrifying examples I’ve seen online recently:

A metal black card with the words “BLACK CARD” on the front in giant lettersA metal card with a unicorn on itA card made with 24-karat gold (available for just $995 a year!)

It’s nice if your credit card has a design you like. But what’s really important are the financial benefits you get from it. Pick a card based on perks that could help you save money, such as cash back, travel rewards, or a 0% intro APR.

Depending on your lifestyle and spending habits, some of these perks could work for you. Just make sure you consider how much value you’ll get from them and how easy or difficult it will be to use them.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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My insurer has decided not to renew my policy. Here’s what to do if it happens to you. [[{“value”:”

I own a second home/investment property in the Orlando, Florida area. And as is the case with many investment properties, there have been several curveballs thrown my way in the three years since I bought it. For the latest curveball, I received a notice a few months ago from my homeowners insurance company that my policy will not be renewed upon its expiration in May.

Fortunately, as a financial planner, I have experience with helping people navigate situations like this. Here’s why my policy isn’t being renewed this year, what I’m doing about it, and how this actually turned out to be a blessing in disguise.

Why is my homeowners insurance not being renewed?

First, if this happens to you, don’t panic. Insurance companies decide not to renew policies for a variety of reasons, and while it can certainly be a pain to have to find new coverage, a non-renewal notice isn’t the end of the world.

While there are very specific reasons an insurer must abide by to cancel a policy during a term, the reality is that in most states an insurer can choose to non-renew your homeowners insurance policy for any reason, if it provides the proper notice and a reason in writing.

Here are a few common reasons for non-renewal (keep in mind insurance laws vary by state):

An excessive claim history (especially related to natural disasters)A significant decline in your credit scoreChange in use of the propertyFailure to maintain the propertyYou have a poor history of making on-time paymentsYou are convicted of a crimeThe insurer stops doing business in your area

The last one on the list is what happened in my case. Several home insurers have recently decided to exit the Florida homeowners market, and mine (Progressive) happens to be one of them. There are a few good reasons, including the abundance of costly natural disasters in the state. Plus, Florida is a highly litigious market — in fact, only 9% of all U.S. homeowners insurance claims come from Florida, but a staggering 79% of the homeowners lawsuits in the U.S. come from the state. While it’s certainly an inconvenience for me, I don’t necessarily blame any insurer for wanting to head for the exit with numbers like these.

What to do next

The next steps depend on whether you use an insurance agency or if you bought your policy directly. I used an agent, and they did the shopping on my behalf and provided me with a quote from another insurance company.

Having said that, it’s always a smart idea to get more than one quote when shopping for any type of insurance. Even if you used an insurance agent to buy your policy and they provide you with a new quote, I’d still suggest getting at least one other quote before committing. Not only do different companies offer different rates, but they also may offer unique discounts for features like alarm systems, fire monitoring, and for bundling your homeowners with other types of insurance.

It could also be a good time to check your coverage and deductibles to see if you could save money. If your homeowners premium has increased sharply in recent years, choosing a higher deductible could significantly reduce your cost.

A non-renewal could end up being a good thing

If you’re like most U.S. homeowners and simply allow your homeowners policy to renew year after year, getting a non-renewal notice could actually be a net positive. Sure, it creates uncertainty and can be time-consuming to deal with, but if it finally motivates you to shop around for insurance, it could help you save money.

In my case, I was pleasantly surprised when my agent sent me a quote from another insurer that came in about $900 cheaper per year for the exact same level of coverage (and this was significantly less than the other quotes I obtained). Of course, this won’t happen in every situation, but shopping around for a new insurer can end up being a better problem than you might think.

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

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