Money Management

Having to replace a credit card can be annoying. Read on to see how you can make the process less cumbersome. [[{“value”:”

Credit card companies know that they need to be on the lookout for fraud. In the past, I’ve had my credit card declined at a grocery store due to it being in a different state from the one I reside in. I’ve also had my credit card rejected when buying gift cards, since purchasing too many of those can raise a red flag.

I was therefore disappointed when a $600 video game charge appeared on my credit card from a site I’d never heard of or used, and the charge somehow wasn’t flagged as fraud. But thankfully, I caught it, disputed it, and avoided paying for it.

Once I reported that fraud, though, my credit card company immediately canceled my card and issued me a new one. It was kind enough to send it quickly, and it arrived a couple of days later in the mail. But from there, I had a big hassle on my hands.

When you need to redo all of your automatic payments

As a means of saving time and also helping to ensure that I don’t miss key payments, I have many of my bills set to autopay. Unfortunately, the credit card account that all of those bills are linked to is the account I recently needed a new card for.

Now, you’d think your credit card company would, in that situation, be able to update those billers accordingly. But nope. Rather, that task was on me. So I had to go through my credit card statements for the previous 12 months and figure out all of the bills that were being paid on that card. I then had to reach out to each biller with an updated card number.

In most cases, that meant logging into different websites and inputting the new number myself. But in one situation, I had to make a phone call, which took even longer.

Why did I have to go back through 12 months of statements? Some of my autopaid bills aren’t monthly ones. There’s a subscription service my kids use, for example, that’s billed once a year to my card. Had I not gone back several months, I would’ve missed it.

All told, it took me a couple of hours to update all of my autopay bills with my new credit card details. While I didn’t lose money in the course of falling victim to credit card fraud, I lost time. And because I’m self-employed, time is money.

A way to make things easier next time

While I certainly hope my credit card won’t get stolen again, the reality is that these things happen pretty often. So at the risk of sounding pessimistic, it’s likely that at some point in time, I’ll have my credit card canceled again, at which point I’ll have to go through the process of updating my autopay bills.

Only the next go-round will hopefully be easier, because after this last incident, I created a spreadsheet with a list of bills that are set to autopay on that card. If I’m forced to repeat the process, I won’t have to read through 12 months of credit card statements. Instead, I’ll be able to consult my spreadsheet. This isn’t to say that the process won’t be time-consuming — but perhaps less so than this past time.

If you have a lot of bills getting paid automatically through a credit card, you may want to compile a similar spreadsheet sooner rather than later — ideally, before your card is stolen and you’re forced to scramble to get everything updated. Plus, you may find the exercise helpful because there may be some expenses you’re paying for that you’ve forgotten about — and can cancel to save money.

Another takeaway here? Don’t just rely on your credit card company’s fraud algorithms to detect suspicious activity. Like I said, I once raised a red flag trying to buy milk and bread worth a total of $7 in another state. Yet somebody managed to charge hundreds of dollars of video games on my card without any reaction from my credit card company whatsoever.

So in addition to making a list of your autopaid bills, make a point to check your credit card statements thoroughly every month in case you, too, wind up with charges you didn’t authorize.

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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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This is a highly-privileged problem to have, but it happens: it is possible to save too much money. See how to adjust your perspective on investing. [[{“value”:”

It’s a rare and privileged problem to have, but it really is possible: sometimes, people save too much money. There’s no easy answer for what “too much savings” means, and most Americans might love to try it; after all, the typical American savings account only has $1,200.

But some people are so frugal, so hyper-committed to saving money and not spending it, that it holds them back from experiencing joy in life and feeling good about their personal finances. Even extremely wealthy people can still live in fear of not having enough money.

Let’s look at a few reasons why it’s possible to save too much money.

1. Saving for the future shouldn’t make you suffer today

One of the best pieces of advice I’ve ever heard about personal finance and investing was this: “Saving money is sending money to your future self, and borrowing money is taking money from your future self. Try to make sure that your present-day self and future self are both happy with the deal.”

Saving money requires you to sacrifice today. Yes, it’s healthy to feel like the future is worth planning for and saving for. But sometimes people go so far in saving money that they sacrifice too much of their present-day self’s happiness for the uncertain life of their future self.

When I was in my early 20s, I was frugal and responsible. I worked long hours, I drove a sensible Volvo station wagon and lived in a studio apartment, and I didn’t go out for dinner with friends as often as I could have, because I wanted to save money. But now that I’m in my 40s, I wish my younger self would’ve gone out for dinner more often. I have plenty of money now, compared to when I was 23 years old. My “future self” didn’t need that money as much as my younger self thought.

And it’s OK. I don’t have regrets; I suppose it’s better to be slightly too frugal than to blow all your money and have nothing saved for retirement. But the future is unwritten, no one is guaranteed to live to age 90, and we all need to have some fun along the way. Over the course of your working life, you’re probably going to be fine.

2. Do you really want to retire early, or do work that you enjoy?

In the past few years there’s been a big trend in personal finance and investing called FIRE (Financial Independence, Retire Early), where people achieve a super-high savings rate and live a low-cost lifestyle that lets them retire in their 30s. I don’t want to rain on anyone’s FIRE parade; if people want to be extreme savers and live off their nest egg for the next 50 years, good for them.

But I don’t see how FIRE investing can possibly work for most people. Most people don’t earn enough income to amass hundreds of thousands of dollars by the time they’re 30. I don’t even know how I could reduce my family’s monthly spending enough to retire. We own two vehicles so we can drive our kids to three different school facilities. I’m self-employed, so I have to pay a lot of money for healthcare. My family just got a $1,500 medical bill that we have to pay for out of pocket.

And I don’t mean to complain! I love my family and our expensive lifestyle, and I make a good living. I don’t want to retire anytime soon, because I’m doing work that I enjoy. I like the feeling of converting my time into money, and spending my money on a comfortable home, delicious restaurant meals, fun vacations, and happy memories.

I’d rather figure out how to make more money than how to live with less. I’d rather spend my time working on my own small business than retire early and putter around the house and live off my investments. Being retired at such a young age sounds kind of lonely, sad, and empty. I want to be active and connected to the world. I want to be “out there,” where the action is (even though I mostly work from home).

3. You can’t take it with you

Sometimes people die without a lot of close friends and family, and without a lot to show for their lives but a big number in their brokerage account. There’s a saying that “time is money,” but sometimes “money is time.” Money can buy you happier times, and help you make memories and build relationships with other people.

I was listening to a podcast by financial advisors who said that one of their biggest challenges is getting their wealthy clients to spend money. Their clients are in their 60s and 70s and have $10 million or more, but they’ve been so focused on investing for tomorrow that they never learned how to enjoy the money today.

A few years ago, I took my family to Europe, two summers in a row, for five weeks at a time. I was a digital nomad and the kids were in heaven. We rode trains and hiked and went to museums and ate gelato everywhere. I probably couldn’t “afford” those trips at the time, but they were the best money I’ve ever spent. The memories are priceless. And I’m still on track to retire.

Bottom line

Investing for the future requires you to spend less on your present-day self. Will “future you” be happy with that deal? Try to strike a balance between investing for retirement and having fun today, while you’re (hopefully) healthy, young at heart, and fully, brilliantly alive.

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Our experts carefully review the most popular offers and select those that are worthy of a spot in your wallet. These standout cards come with fantastic benefits like sign-up bonuses worth $200 or more, 0% intro APR for up to 21 months, and cash back rates up to 5%.

Click here to see our top credit cards

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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Don’t rush to pay tax-filing fees. Military members and their families qualify for free tax prep and filing. Find out what free resources are available. [[{“value”:”

February is almost over already, but there’s still plenty of time to complete your taxes before the April 15 filing deadline. Before spending money on tax software, check to see if you qualify for free or low-cost tax-filing resources.

Military members and their families can keep more money in their bank accounts by using free preparation and filing resources. Here’s an overview of a few tax-filing resources that are available at no cost to eligible military members and their families.

1. MilTax

For eligible taxpayers who are comfortable using tax software, MilTax is a free resource to explore. This tax preparation solution was made to handle the unique tax situations that service members have. This includes deployments, combat and training pay, and multistate filings.

This service is available to active duty military members and their immediate family members, reserve members, discharged and retired service members, surviving family members, and more. Eligible taxpayers can prepare and e-file their federal returns for free and get help from military tax professionals. If you still need to file your returns, don’t ignore this free resource.

2. The Volunteer Income Tax Assistance (VITA) program

Another resource available to military members is Volunteer Income Tax Assistance (VITA). This free program is available to taxpayers who make $64,000 or less, people with disabilities, the elderly, and taxpayers with limited English proficiency.

But that’s not all. Military members, including retirees, can receive free tax consultation and preparation at VITA locations. Interested taxpayers can use the online VITA location tool to find their nearest location to get in-person tax assistance this tax season.

3. IRS Free File

Another resource that may be available to some military members and their families is the IRS Free File program. The IRS partners with tax preparation companies to provide free federal tax-filing services to taxpayers who meet the eligibility requirements. To qualify for this service, you must have an adjusted household gross income (AGI) of $79,000 or less.

Eight tax software companies are IRS Free File partners. It’s worth noting that each partner solution can set its own age and income requirements. Verify the eligibility requirements before you begin the filing process. Some providers may set lower income limits. Military members who meet the income thresholds should consider using this solution.

4. Free File Fillable Forms

The IRS also provides Free File Fillable Forms for those who don’t meet the income requirements. This resource is available to taxpayers, regardless of their income level. You can fill out the tax forms you need online and file your federal return electronically. Whether you’re a military member or another taxpayer looking to avoid tax-filing fees, this resource can help.

Don’t overlook free resources like this

Still need to file your taxes? It’s not too late. Ensure you take advantage of any military discounts or freebies made available to you, like free tax prep and filing solutions.

Every dollar saved makes a difference and can be a win for your personal finances. Check out The Ascent’s complete guide to taxes for additional guidance about important tax topics.

Our picks for 2024’s best credit cards

Our experts carefully review the most popular offers and select those that are worthy of a spot in your wallet. These standout cards come with fantastic benefits like sign-up bonuses worth $200 or more, 0% intro APR for up to 21 months, and cash back rates up to 5%.

Click here to see our top credit cards

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

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Loud budgeting lets you navigate the social side of money when working toward financial goals. Read on to learn whether it’s worth the hype. [[{“value”:”

What began as a bit of a joke has become a bonafide method for dealing with the social side of managing money: It’s called loud budgeting, and it’s taken over the financial side of TikTok. But trends don’t always prove useful, and there are many forms this trend can take.

Here’s what you need to know about loud budgeting, whether it works, and tips for trying it out.

What is loud budgeting?

Loud budgeting is the practice of being vocal about your financial decisions and needs in the hopes that it will help you achieve your goals. That can look like telling friends that you’re on a budget and won’t be doing an expensive dinner right now. Or it can be as public as posting TikToks about how you’re paying off credit card debt, as has become something of a trend.

Does loud budgeting work?

The approach that loud budgeting takes toward personal finance can absolutely be a key to helping you reach your goals. But how comfortable you’ll be enacting this philosophy in your daily life, and how effective it will be, will depend on your personality. And if you’re like the 62% of Americans who don’t talk about money, it can prove difficult.

For example, if you start telling the people in your life about your budgetary goals, but they don’t support you, that probably isn’t going to be very useful. However, for those who have a good support system and are willing to potentially get out of their comfort zone to achieve their money goals, then loud budgeting can be a useful approach.

It’s also important to note that loud budgeting doesn’t have to be all-or-nothing to actually prove useful. For example, if you were to use loud budgeting four days a week to avoid spending money on coffee, but that only worked half the time, that still frees up $40 a month for your savings account simply by talking about your financial needs, assuming $5 per cup. That’s $480 per year, if you were to keep it up. (Of course, if buying that coffee makes you happy and fits into your budget, by all means, buy the coffee.)

Three ways to make loud budgeting work for you

Here are a few ways you can refine this method to make it work for your circumstances.

1. Create tailored boundaries

You don’t have to publicly broadcast your every purchase to all in order to get value out of loud budgeting. The key here is to find the level of transparency that makes sense for you, given your personality, support system, and goals. So you should carefully consider how you want to set up boundaries before starting loud budgeting. For instance, you may choose to only share generalities (like, “I’m not spending on X this month”) or only share with certain people.

2. Consider the avenue

Loud budgeting can be done in your everyday life, but it can also be accomplished via the internet. For example, you may choose to share your financial goals and progress on an online platform. It can help to have an online community of people who are going through the same thing to turn to when things get tough. But online platforms can also open you up to criticism (some warranted, some decidedly not). So be sure you understand the potential pitfalls of each option before committing to one.

3. Get a financial accountability partner

Loud budgeting doesn’t have to be reciprocal, but if you can find someone who is willing to act as both a support and share their financial needs at the same time, that’s a win-win. Plus, it can be helpful to know that someone understands what you’re going through as you make progress. You may consider adding a regular check-in with your accountability partner to your schedule to make sure you’re both sticking to the plan.

Talking about money still has a lot of taboo around it. But on top of providing a way to deal with the clash between money and our social lives, loud budgeting has the capacity to change how open people are about their finances. The only question is, how many people will actually use it in their everyday lives?

Our picks for 2024’s best credit cards

Our experts carefully review the most popular offers and select those that are worthy of a spot in your wallet. These standout cards come with fantastic benefits like sign-up bonuses worth $200 or more, 0% intro APR for up to 21 months, and cash back rates up to 5%.

Click here to see our top credit cards

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

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