Money Management

A meal at Wendy’s might soon cost you more. Read on to see why. [[{“value”:”

If you’ve ever hailed an Uber before, you may have noticed that the cost of securing a ride can vary based on the time you hail it. It’s a practice known as surge pricing, and while many consumers hate it, they’ve come to accept it in the context of hitching a ride.

But while you may be okay with paying a bit extra to take an Uber during rush hour, the idea of being upcharged on a burger or fries for placing an order during dinnertime may not sit as well with you. But unfortunately, Wendy’s is going to start testing a dynamic pricing model in 2025. And if the fast food giant is pleased with the results, consumers everywhere might start paying more for their Wendy’s meals.

A frustrating change for consumers

It’s easy to argue that buying prepared food — even fast food — is a luxury, and that as such, consumers shouldn’t complain when the price goes up. After all, there’s always the option to hit the supermarket, buy groceries at a lower price, and cook.

But the reality is that many people fall back on fast food restaurants when they need a quick meal on the go or simply want a break from the chicken casserole they’ve been eating all week. And if the cost of buying fast food increases at Wendy’s, it could put a strain on a lot of consumers’ personal finances.

Furthermore, while it’s one thing for fast food chains like Wendy’s to simply raise their prices, it’s another thing to impose surge pricing where the cost of your meal varies based on the time at which you place your order.

Let’s say the cost of your go-to order increases by $1 across the board. That’s an increase you’ll know to budget for. But if the cost of a meal at Wendy’s fluctuates based on the hour of the day, it can be really hard to figure out what price you’re looking at. You might, for example, think you’ll be looking at a $7 tab only to place your order and see that you’re facing a $9 charge instead.

Should you continue to eat at Wendy’s if it moves forward with surge pricing?

To some degree, you can argue that surge pricing isn’t so different from simply raising prices across the board. And in practice, surge pricing might be a less painful thing to absorb, since you may, in theory, eventually learn to time your orders to snag a lower price. Or, you might just totally hate the idea, and that’s understandable.

You don’t necessarily have to cut ties with Wendy’s on a permanent basis if this surge pricing model ends up coming to life. But in that case, you may want to pad your fast food budget to allow for the fact that some of your meals might have an upcharge.

Of course, one option for saving money on Wendy’s food is to join the company’s rewards program. Currently, rewards program members earn 10 points per $1 spent. Those points can then be redeemed for free menu items. You can also be on the lookout for offers and promotions from Wendy’s that allow you to save money during the year.

All told, surge pricing makes sense for a business like Uber, even though customers may not like it. When traffic is at its most intense, it takes longer to complete a ride. It’s that simple. So while surge pricing in that context may not be wonderful, it’s somewhat justifiable.

Surge pricing on French fries is a bit of a different story, since conceivably, it should take the same amount of time to whip up an order regardless of how busy things are. So it’ll be interesting to see whether consumers start to boycott Wendy’s or not if this surge pricing model actually ends up getting implemented.

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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 Uber Technologies. The Motley Fool has a disclosure policy.

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Buying food at the airport can leave a major dent in your finances. Take a look at a few ways you can avoid that cost. [[{“value”:”

Last week, my husband and I were visiting family across the country on a somewhat-impromptu trip. We found a great flight deal that allowed us to pay for both of our round-trip tickets entirely with airline miles, so I was feeling great. Time with family, and no dent in my personal finances? Heck yeah.

But then came the return flights. We made one little misstep that ended up costing us quite a bit of cash on our way home. Here’s what happened.

Airport food is expensive

Normally, I make sure to pack a reusable water bottle and plenty of food to make it through a travel day without spending money in the airport terminal. Unfortunately, I didn’t plan ahead for the return trip this time around. We had a 7 a.m. flight out of San Francisco, and once we were through security, we realized we wouldn’t comfortably make it all the way to our layover in Detroit if we didn’t get some breakfast and coffee before we boarded the plane.

We did what we could to find the most affordable (yet still edible) option in the terminal — which included speed-walking right past a place advertising a breakfast sandwich for $18.95. (I’m not paying that much for a few bites I have to eat out of a paper bag on my lap unless I have no other option.) But things are limited in the airport, especially that early in the morning when not every storefront has opened, so we had to settle for something only slightly less expensive. Once our sandwiches were wrapped and our coffees were poured, we were out $44.

Since we live in a city that doesn’t have any direct flights to and from San Francisco, we had to contend with a layover meal, too. We arrived in Detroit with just enough time for a late lunch before our connection. That meant another hit to our credit cards — this time a slightly more palatable $28. But we were still down $72 on the day because we forgot to plan ahead.

Pack your own food — or look for a lounge

According to Vox, you can expect food and drink prices in airports to be around 10% to 15% higher than you’d expect to find outside the airport. It’s almost like a tax you’ll pay for the convenience of dining near your gate rather than having to pack a lunch box. And while bringing your own food can be a great money-saver, it’s not the only option.

If you have a credit card with airport lounge access, you’ll have a range of snacks, meal items, and both alcoholic and non-alcoholic drinks to choose from, all included in the price of admission. And if you don’t have a travel credit card with this perk, you can look into buying a day pass to an airport lounge. This could cost you anywhere between $35 and $79 per person, depending on the airline and lounge location. Do a quick calculation and see if you’d get your money’s worth. But if you have a long layover, want a quiet place to relax, or plan to eat and drink at least one meal before your flight, there’s a good chance you’ll come out ahead.

Spending money while traveling is unavoidable, but don’t resign yourself to necessarily spending a lot of money. A little preparation can keep more cash in your wallet so you can use it on things you’ll actually enjoy, rather than a dry turkey sausage sandwich and an itty-bitty falafel wrap. At least the latte was good.

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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 recommends Flow. The Motley Fool has a disclosure policy.

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Professional tax help can improve your tax refund and personal finances in numerous ways. See how hiring a CPA can make for a happier tax season. [[{“value”:”

Tax season is here! The deadline for most U.S. taxpayers to file their tax returns for 2023 taxes is April 15, 2024. For the next month and a half, millions of Americans will be puzzling over old receipts, fretting over spreadsheets, and wondering how well they actually understand IRS rules.

Not everyone needs professional tax advice. If your adjusted gross income (AGI) is $79,000 or less, you can file federal taxes for free. But if you have higher income, own a small business, or are a higher level of savvy taxpayer with more complex personal finances, you might benefit from professional tax help.

Let’s look at a few ways that professional tax help can improve your finances and increase your chances of a tax refund.

1. Double-check for all available tax deductions

Working with a professional tax advisor, like a certified public accountant (CPA), can help you make sure you’re getting all of the tax deductions that you deserve, such as:

Traditional IRA contributions: Depending on your income, you can deduct up to $6,500 for 2023 ($7,500 if you’re age 50 or over)Health savings account (HSA) contributions: You can deduct $3,850 for self-only coverage or $7,750 for family coverage for 2023Standard deduction: $13,850 for singles, $27,700 for married couples filing jointly

Professional tax advice can also help you get any little-known tax deductions that apply to your situation. These could include deductions for gambling losses, pet care expenses for certified service animals, or capital gains tax benefits from reinvested stock dividends.

2. Make sure you’re following IRS rules

Professional tax help can also reassure you that you’re filing taxes correctly and following the IRS rules. Many people have misunderstandings about tax deductions.

For example, many middle class homeowners are surprised to learn that they do not get a tax break for home mortgage interest. You can only get a tax break for your mortgage interest if you itemize deductions (instead of taking the standard deduction). And ever since the 2017 Tax Cuts and Jobs Act, the standard deduction has gone up significantly — and this has made it harder for most taxpayers to itemize deductions.

The $10,000 State and Local Tax (SALT) deduction cap is also a point of contention for many homeowners in higher-tax states. Even if you paid $10,000 of local property taxes and $8,000 of state income taxes in 2023, you still can only deduct $10,000 of that combined amount — and only if you have enough other deductions to itemize.

A professional accountant can stay up to speed on the latest IRS rule changes, and make sure your tax return follows the law.

3. Make strategic tax-planning moves

People with lower incomes who qualify to file taxes for free usually cannot make many clever maneuvers to save money on taxes. If you work for one employer and have W-2 income, your taxes are pretty simple, and that can be a good thing.

But if your income has increased significantly, if you own a home, if you run a small business, and if you have multiple tax-advantaged accounts like a traditional IRA and health savings account, your taxes are more complicated. This complexity can also be a good thing — because professional tax advisors can help you make smart tax-planning moves.

An accountant can help you spot opportunities to move money to increase your tax deductions, such as:

Increasing your charitable contributionsMaxing out your traditional IRAGetting a high-deductible health plan so you can use a health savings account

Small business owners can often benefit from professional tax advice, because business tax returns are more complicated. A good accountant can help you set up your small business to file taxes as an S corporation, which can save you money on payroll taxes and improve your financial flexibility. Professional tax help can get you the optimal tax treatment for your business income and personal finances.

4. Gain better visibility into your taxes

Working with an accountant will give you better clarity for why your tax return works the way it does. For many people, filing taxes is confusing and frightening — there’s lots of sternly worded fine print and bureaucratic IRS language that’s hard to understand.

A good accountant can help demystify your Form 1040. Professional tax advisors can explain why you got a refund this year (or why you owe taxes), what you could do differently to have a better tax situation next year, and how to set yourself up for long-term tax-planning success.

5. Get peace of mind and personal advice

One of the hardest to measure, but highly valuable, reasons to hire professional tax help is that it takes a burden off of your mind. I love working with my accountant, because it feels good to have a professional advisor in my local area who I can call on the phone or meet with for personal advice.

Some of the best tax software also offers access to professional tax help on-demand, and that can be a good fit for lots of people’s tax returns. But if you’re a small business owner, you might want to consider hiring an accountant who can be a dedicated resource for your tax returns.

Bottom line

Professional tax advice can save you time and money by increasing your tax refund, but it can also set you up for bigger success in your personal finances. Filing taxes is like an annual temperature check for your financial life. Working with a good accountant can help you maximize your tax benefits, stay on track for retirement savings, and strengthen your financial foundation.

Our picks for 2024’s best credit cards

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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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Money in a brokerage account won’t do you much good if you’re not actually investing it. Read on to learn more. [[{“value”:”

At one point last year, I did something kind of stupid. I transferred $1,000 into my brokerage account with the intent of using that money to buy shares of a specific stock. But it took a few days for the money to clear, and during that time, the stock price rose a bit. So I decided to sit tight and wait things out.

Want to guess what happened next? I forgot that I’d transferred that money over from my checking account and didn’t remember until almost two months later. So basically, I had cash sitting in my brokerage account doing absolutely nothing (whereas in a savings account, for example, it at least would’ve been earning decent interest) all because silly me forgot about the money.

Now thankfully, it was only a $1,000 transfer, and it’s not as if I lost the money — I just didn’t invest it as soon as I could’ve. But if you’re going to fund a brokerage account, you really want to make sure you’re actually investing the cash you put in. And there’s an easy way to make that happen.

When you put your investments on autopilot

Many brokerage accounts allow you to set up recurring investments. What this does is make it so you’re buying a preset number of shares on an ongoing basis without having to go in and make trades.

Now in conjunction with that, you have options. You could manually transfer money into your brokerage account at different intervals, or you could set up automatic deposits into your brokerage account that align with your investing schedule.

In a nutshell, here’s how it could work. Let’s say there’s a company you really want to invest in consistently, and you want to buy three shares of its stock every Friday. You could set up a weekly automatic transfer of money that hits your account every Monday. Then, come Friday, the money will be in your account to buy your three shares with. If you set this up in advance, you won’t have to do a thing.

The same system works with dividend payments

Some of the stocks you own may be companies that pay quarterly dividends. When dividend payments hit your brokerage account, you get more buying power. But if you don’t use that money, it’s just going to sit there.

That’s happened to me, too. There have been times when I haven’t realized I’ve gotten a dividend payment for a good number of weeks. That’s more money that just sat in my account doing nothing.

What you may want to do to avoid that is set up a dividend reinvestment plan. Usually, what’ll happen is that once your dividend payments come in, they’ll be used to automatically purchase more shares of the company that issued those dividends. However, you may be able to set up your account to buy shares of a different company with that dividend income as it hits your account.

Either way, unless your brokerage account happens to pay a nice amount of interest on cash, there’s no sense in letting money just sit there uninvested. So either keep very good tabs on the cash that gets transferred into your account, or set up recurring investments so the process is put on autopilot.

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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Tired of overpaying for car insurance? Read on for one potentially easy way to lower your costs. [[{“value”:”

Owning a car can be a pretty expensive endeavor. AAA says that in 2023, it cost drivers an average of $12,182 to own a vehicle. Ouch. And of that, the average yearly cost of auto insurance was $1,765.

Of course, your annual auto insurance cost may be higher or lower depending on different factors. These include:

Your locationYour ageYour driving recordThe type of vehicle you own

But there’s another factor that could impact the amount of money you spend on auto insurance. And it could also result in a lot of savings on your premiums.

Is pay-per-mile insurance a good idea for you?

In the wake of the COVID-19 pandemic, a lot of people are working from home permanently. If you’re in that boat, or if you happen to live within walking distance of your office and therefore don’t have to drive there, then it could pay to see if a pay-per-mile policy is available through your auto insurance company. If so, switching to pay-per-mile insurance could potentially save you a bundle.

With pay-per-mile insurance, you’re still paying a base premium to put coverage in place. But from there, you’re paying for each mile you drive, as the name implies. And if you don’t drive many miles during the year, one of these policies could end up being less expensive than a standard one.

And if you’re worried that it’s only fancy, high-tech vehicles that are eligible for pay-per-mile insurance, think again. If this is a policy your insurance company offers, it’ll generally send you a device you can plug into your vehicle to track its mileage.

It pays to shop around for auto insurance

Not every car insurance company offers pay-per-mile insurance. But if yours doesn’t, shop around. And even if yours does offer this option, it still pays to get quotes from different insurers to see which prices are the most competitive.

Of course, you’ll also need to do a thorough assessment of your driving to see if pay-per-mile insurance makes financial sense for you. Just because you don’t commute to an office every day doesn’t mean your car doesn’t still get its fair share of mileage.

Let’s say you hardly use your car most weeks, but once every other month, you drive 600 miles each way to another state to visit your parents. You’ll need to crunch the numbers to make sure you’re driving few enough miles otherwise for a pay-per-mile plan to result in savings.

But in general, if you know you don’t use your car very often, then it pays to see if pay-per-mile insurance helps you spend less on auto insurance. Certain expenses, like monthly parking fees, won’t hinge on your usage. If it costs $200 a month for a spot in a local garage, it doesn’t matter how much benefit you’re getting from it. The same applies to your annual vehicle registration fee. But pay-per-mile insurance is one car-related expense where the extent to which you use your car could influence your costs in a positive way.

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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Medication is an expense you can’t easily skimp on. But that doesn’t mean you can’t save. Read on to learn more. [[{“value”:”

A big reason many employers have a practice of raising pay at the start of the year is that living costs tend to rise from one year to the next. And the cost of medication is no exception.

NPR reports that drug companies typically raise their prices at the beginning of a new year, and so far, that seems to be the case for 2024. And according to drug price nonprofit 46Brooklyn Research, there were at least 600 price hikes in January alone.

The problem, of course, is that while it may be possible to cut back on leisure spending and even things like groceries and gas to some degree, cutting back on medication is much trickier. If there are pills you need daily, well, not taking them daily could negatively affect your health. So if rising medication costs are impacting your personal finances for the worse, here’s what to do.

1. Switch to generics if possible

Many medications these days have a generic version that can be worlds cheaper than the name brand version. If you’re currently taking the latter, see if the former is an option for you. Do be advised, though, that in some cases, a switch to generics may result in a different dose. That’s not necessarily a problem, but it’s something you may want to discuss with your doctor.

2. Order your meds in bulk

Ordering medication in bulk isn’t just convenient. In some cases, it could save you money. Many insurers offer a discount on 90-day supplies you order by mail or pick up at your local pharmacy, so it pays to see if your doctor is willing to write that bulk prescription. In many cases, your provider can simply submit that request electronically so it’s fulfilled by your health plan’s mail-order pharmacy. In that case, you do nothing but wait for a package to show up at your door.

3. Look outside a traditional pharmacy

If your health insurance plan isn’t great, or you don’t have insurance (which is not a good thing at all, but it’s also a different discussion), then it could pay to look outside a traditional pharmacy for getting your medications. Amazon Pharmacy, for example, offers a host of low-cost medications. And its RxPass program allows Prime members to pay just $5 a month for unlimited covered prescriptions.

4. Don’t be shy about requesting free samples

Pharmaceutical companies commonly give medical offices free samples of their products in an attempt to drum up business. If you’re struggling to cover your prescription costs, open up to your provider about that. Chances are, if they have a sample of the medication you’re taking in stock, they’ll be happy to hand it over rather than have it sit on a shelf and expire. Even if that only results in one-time savings, that’s better than no savings at all.

It’s unfortunate that medication costs tend to rise from year to year. But so do many expenses. Thankfully, you can take these steps to potentially lower your costs — and help ensure that you don’t have to compromise your health due to financial constraints.

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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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