Money Management

Financial struggles are far more common than you’d think. Find out what you can do if you’re having a hard time managing your personal finances. [[{“value”:”

If you are facing financial stress right now, you are not alone. According to a recent Ramsey Solutions study, 34% of survey respondents indicated that they were either facing financial struggles or were actively in crisis. That’s a huge percentage of people — more than one-third of all respondents — who are not feeling good about their personal finances.

If you are one of those people, there are some options out there that could help you to get a better sense of control and get into a better place with your money. Here are some steps that you can take to try to get back on track.

Take advantage of the help that’s available

If you are in the midst of a financial crisis, you may need some help to get out of it. And there’s absolutely nothing wrong with that, as plenty of state and federal programs were created for just that reason.

Depending on your situation, you may be eligible to get help paying for food, housing, or medical insurance. You can use the Benefit Finder on USA.gov. Don’t forget to check with your state’s Social Service agency to explore programs available to you. Many of these programs are means-tested, so be prepared with paperwork like pay stubs or tax returns when you’re trying to figure out what to qualify for.

Taking advantage of this assistance — even on a temporary basis — may give you the breathing room to make long-term positive changes that leave you with more money in your bank account.

Do something about your debt

If you are struggling, there’s a good chance you have debt that’s making your situation worse. After all, if you’ve committed future income to cover yesterday’s expenses, it’s going to be harder to make ends meet.

When you’re in this situation, look into whether you can lower monthly payments and total repayment costs. Refinancing using a personal loan may be a good option if you have high-interest debt. This would involve getting a personal loan at a lower rate and using it to pay off existing creditors. Using a credit card balance transfer could be another option, as you can transfer the balance from current cards to a new card at 0% interest so you can make better progress on repayment. Note that you will need to have a fairly strong credit score to qualify for these options. And you should have a plan for repaying the debt while the 0% rate applies, as it will only be temporary.

You can also talk with your lenders about what they may be able to do for you, especially if you worry you won’t be able to pay the bills. Often, they’ll be willing to work out a payment plan for you if they fear not getting paid at all. You may want to ask, however, if the plan they work out will have an impact on your credit score. You may move forward with doing it anyway, but be aware this could make things harder in the long run if you hurt your credit.

Increase your income

Finding a way to earn a little more could go a very long way toward reducing your financial worries. And there are a ton of side gigs out there you could try out. The average earnings from side hustles come in at $483 per month, which is a good amount of money you could use to try to catch up on bills or pay down debt so you can eliminate some of your monthly obligations.

Think about what you’re interested in and where your talents are. Could you walk dogs or baby sit or drive for a ride-hailing service or provide tutoring? There are apps and websites aplenty where you can connect with people that may be interested in hiring you for these tasks.

Reduce your fixed spending

Finally, you could try to reduce one of your fixed costs. This is a big, ongoing cost that you can take action once to reduce and that will make a long-term positive impact. For example, you could sell your expensive car (with the high car payment) and opt for a cheaper one and pocket the extra cash.

Making one big lifestyle shift like this can be a lot less stressful and a lot easier to maintain, so it could really help your financial struggles to lessen.

By taking any or all of these steps, perhaps you can get some financial relief so you can move out of the personal finance crisis and stress phase and start making solid progress toward a brighter future.

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If you want to cut your online shopping tab, it’s actually possible to do it by making a few very simple changes. Learn how to save money on e-tail. [[{“value”:”

Americans are spending trillions of dollars on e-commerce purchases. In fact, U.S. consumers spent an estimated $1.1 trillion online in 2023, and online purchases accounted for an estimated 20% of all retail purchases.

Sometimes, shopping online makes good sense. After all, it’s a lot more convenient to just click on an item, add it to your cart, and have it show up at your door — rather than having to actually pack up your credit cards and head out into the real world to make your purchases.

But a lot of impulse buys also happen online, and this can lead to overspending that leaves you with less money than you might prefer in your bank account. The good news is, if you want to reduce unnecessary spending online, you can do it pretty easily. Just take these simple steps.

1. Don’t store your credit card information on websites

One of the best ways to reduce the frequency of impulse buys online is to stop storing your credit card on websites.

Stores encourage you to do this because it makes it really easy to buy something. You can just pay with a single click, often without really thinking about it — especially if you’re mindlessly scrolling late at night and something catches your eye when your defenses are down.

If you don’t store your card, though, you have to make the conscious choice to get up, go find your card, and manually enter the card number into the website every time you want to make a purchase. Often, that sounds like enough work that it will likely deter you from buying any items you’re not absolutely certain you truly need.

The process of retrieving your card and typing in the card information forces you to really think about what you’re doing and whether buying is worth the effort. Often, you’ll find it’s not and you’ll just pass up the item — leaving you more money for your savings account.

2. Unsubscribe from email newsletters

If you’ve ever bought any item on pretty much any website, chances are good you’re now getting marketing emails from that website. The majority of sites ask for your email address when you place an order and then sign you up for their mailing list, unless you expressly opt out.

The problem is, all of these email marketing newsletters just end up prompting you to spend. In fact, research shows that 50% of people make a purchase at least once monthly after receiving a marketing email.

If you’re constantly being sent emails that are designed to entice you to buy, odds are good you’re eventually going to give in and buy one of them — even if you don’t really need it. But if you simply stop receiving these emails, your inbox won’t be a constant source of temptation.

Opting out means you’ll buy stuff from websites when you want and need it — and you’ll navigate to the site to get it — rather than because something catches your eye in an email. If you’re worried about missing out on coupon codes, you can always search for them when you’re ready to make your purchase or use tools like the Honey app that can find deals for you automatically.

These two simple steps alone can make all the difference in reducing online spending and improving your personal finances, so give them a try today and see how much less you spend.

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Over a decade of working as a freelancer, I tripled my income by making a few simple moves. Learn what I did. [[{“value”:”

I’ve been working as a freelancer for more than 10 years now. This means I don’t have a traditional employer who puts money into my checking account. My earnings are directly related to how much work I do, and what types of work I do.

Unsurprisingly, like most people just starting out, I didn’t make a lot of money when I first began running my own small business. However, in the past several years, I’ve been able to triple my income — and the steps I took to do it are those that most freelancers and business owners can follow.

Here’s what I did.

1. I found a specialized niche

When I first started working as a writer, I would write anything people were willing to pay me to write. For years I wrote about air conditioning and pest control and other random topics just to get paid.

However, I was always passionate about finance and law because that’s where my educational background was. So, I kept focusing on trying to find as much work as possible within this area, and I dedicated myself to really learning the ins and outs of some complicated financial issues like Social Security claiming strategies and retirement plans and mortgages. Once I became an expert in this specialized area, I was slowly able to transition to better paying work in the field of my expertise.

The reality is, it’s OK at the beginning to accept almost any job — but if you want to be really successful, in most cases you’re going to have to get really good at something that not everyone can offer. By finding your own specialized niche where there’s a smaller pool of candidates, you can begin to earn higher prices by offering your goods or services.

This will look different for you if you aren’t a writer. If you’re a landscaper, for example, you might want to start specializing in something unique like building water gardens rather than just mowing lawns. Or if you’re an interior designer, you might want to focus on commercial spaces in the hospitality industry. Whatever your chosen profession is, try to find an area where you can specialize — and ideally, a lucrative one where people will pay a lot for your unique expertise.

2. I became more selective with my time

Becoming more selective with my time was another great way to increase my income. While I took low-paying clients when I was getting started, I began phasing them out as soon as I was able to substitute for higher paying work.

Now, I have a minimum threshold that I’m willing to work for and I don’t accept any jobs that don’t meet it. And, if you want to increase your income, you’ll need to do the same thing. As you begin to improve your skills and develop your specialization, you need to start valuing your time more and charging more for the work you provide. You only have so many hours in the day, and dropping lower paying work makes room for you to increase earnings.

3. I found the right tools

Finally, I’m not afraid to pay for the tools I need to do my job well. While I once tried to struggle with whatever free software tools were out there, I now happily pay for apps that make my life a lot easier like the pro version of Zapier to automate some of my workflows, WaveBox browser to keep all of my different links accessible, and Sortd to turn my Gmail account into a Kanban board.

You’ll have your own tools that work for you — but don’t hesitate to pay for what you need to do your job as effectively and efficiently as possible.

Following these three steps can work well in any industry, and in almost any small business. If you want to increase your income dramatically, I highly recommend you give them a try.

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A travel credit card could help you enjoy traveling more. Find out about a few of the best travel card perks that can make every trip better. [[{“value”:”

If you like to travel, it’s a good idea to have a travel credit card. As you may know, travel credit cards earn points or miles that you can use for travel expenses like airfare and hotel stays, so they can help you save money on your trips. But that’s not the only reason to get one.

Many of these cards also have benefits that can improve your travel experience. Some of them even include luxury perks that are normally reserved for travelers who pay extra. Here are a few of the most popular travel card perks that can get you an instant upgrade.

1. Airport lounge access

Waiting around for your flight is often one of the worst parts of traveling. Airport food is notoriously overpriced. The boarding area may be packed. If you don’t arrive early enough, you might not even find a seat — they tend to fill up fast, especially because so many people seem to think their bags and coats also need seats of their very own.

You can deal with that every time you fly, or you can get a travel card with airport lounge access. Then, while you’re at the airport, you can visit a lounge in your credit card’s lounge program. Lounges normally have free food and drinks, much better seating, and fewer people, since not everybody can access them.

Many of the credit cards that offer this benefit include a Priority Pass membership. That’s a program with over 1,300 lounges around the world. Or, if you always fly with the same airline, look into its airline credit cards. Some airline cards include either a few lounge passes per year or a complimentary lounge program membership.

SEE OPTIONS: Best Credit Cards With Airport Lounge Access

2. A TSA PreCheck/Global Entry membership

The other common gripe about flying is airport security. Unless you’re flying on a private jet, you’ll need to go through the stressful security process. Take off your shoes and jacket, remove your laptop from your bag, strike a pose in those ridiculous full-body scanners — you know the drill.

It’s a lot less stressful if you’re enrolled in an expedited security program. TSA PreCheck allows you to go through security without removing your shoes or jacket, taking out your laptop, or pulling out liquids from your bag. It’s not that expensive, costing $78 for a five-year membership. But there are also lots of travel cards that cover the cost of a membership for you.

These cards cover the cost of either TSA PreCheck or Global Entry. Global Entry is $100 for a five-year membership, and it allows you to go through expedited immigration and customs when flying into the United States from abroad (at airports with Global Entry kiosks). The advantage with Global Entry is that it also includes a TSA PreCheck membership, so you can get both if you sign up for that.

LEARN MORE: How TSA PreCheck and Global Entry Work

3. Status with your favorite hotel

Ever seen those special check-in desks at the hotel? They usually have much shorter lines, and they’re reserved only for select members of the hotel’s loyalty program.

A faster check-in process is one of the many benefits of having status with a hotel. Other perks may include:

Complimentary breakfastComplimentary upgrades when availableAccess to the hotel’s executive loungeEarly check-in and late checkout when availableFree high-speed internet

The traditional way to get status with a hotel is to stay there often. The easier way is to get a credit card with your hotel brand of choice. Hotel cards often include complimentary status in the hotel’s loyalty program. They may also help you earn points toward the next status tier more quickly.

SEE OPTIONS: Best Hotel Credit Cards

There are lots of travel perks you can get from top credit cards. Compare your card options to see which one has most or all of the benefits you want. That way, you can pick the card that will upgrade your travel experience the most.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 12, 2024

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.Lyle Daly 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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It’s possible to rent a home your entire life and still do well financially. Read on to learn more. [[{“value”:”

“You’re throwing your money away.”

“You’re just paying another person’s mortgage.”

These are some of the warnings that are often hurled at people who rent a home instead of owning one. And while some of those warnings may be well-intentioned, frankly, they’re bogus.

The truth is that owning a home has its perks. And a big one is that once you’ve paid out your full obligation to your mortgage lender, your home is yours to own outright. Also, home values do have the potential to rise over time. So it’s conceivable that you might buy a home for, say, $200,000, only for it to be worth $1 million by the time you go to sell it.

But rest assured that even if you opt to rent a home for the rest of your life, your finances aren’t doomed. In fact, with the right strategy, you can come out ahead financially and perhaps wind up better off than you would have if you purchased a home yourself.

It’s all about putting your money to good use

Homeownership can often be a lot more expensive than renting because you’re covering not just a mortgage, but also expenses like property taxes, maintenance, and repairs. When you rent, your costs are more predictable — at least within the confines of each lease you sign. There are no surprise repairs to worry about. You write your landlord the same check every month and call it a day.

Now, if you’re a lifelong renter, you’re not going to get anything back from your various landlords at the end of the day — whereas if you own a home, after years of mortgage payments, a valuable asset will be in your possession. However, as a renter, you can take advantage of the fact that you’re not covering the many costs of homeownership and can put that extra money to good use.

Because you’re renting, maybe you’re not spending $500 a month on property taxes and upkeep like some of your homeowner friends are. So let’s say you decide to invest that $500 a month over 30 years — the amount of time it commonly takes to pay off a home in full.

Over the past 50 years, the stock market has rewarded investors with an average annual 10% return. If you’re able to snag that same return in your brokerage account, after 30 years, you’ll end up with a portfolio worth about $987,000. That’s not too shabby.

Your finances are far from doomed

In our example, we see that not owning a home could lead to gain of $807,000. We get that number by taking our total of $987,000 but subtracting the $180,000 you would’ve put in over 30 years ($500 a month x 12 = $6,000, and $6,000 a year x 30 = $180,000).

Now, let’s compare that to someone who buys a home for $200,000, pays off their mortgage in 30 years, and eventually sells their property for $1 million. In this example, that homeowner is looking at an $800,000 gain — but only on paper. That’s because to gain $800,000, that same homeowner had to spend thousands of dollars on an annual basis to cover mortgage payments, maintenance, and other costs.

Of course, these are just a couple of possible scenarios. It’s possible to buy a cheap home in a market that then gets hot, so that your initial $200,000 house purchase eventually yields you $2.5 million.

The point, however, is that if you decide that renting is a better bet for you than owning, it doesn’t have to mean you won’t have any wealth to show for it in the end. If you take the money you aren’t spending on homeownership costs and put it to work, you can do remarkably well for yourself.

Where to invest $1,000 right now

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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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