Money Management

Cruises offer a lot of free food, beverages, and entertainment. Read on to learn what to expect. [[{“value”:”

Cruises can be an excellent value. Unlike with most vacations, the price you pay for the trip includes a lot more than a place to sleep. But there are things that have an extra charge, and it’s important to know what to expect before you set sail.

What is typically included with your cruise fare?

To be clear, cruises typically aren’t all-inclusive. But one of the biggest reasons to take a cruise (as opposed to a land-based vacation) is that there is quite a bit that is included in your cruise fare.

Your room: This is obvious, but your cruise fare includes your room, as well as the costs of transporting you to each port on your itinerary.Food (meals and snacks): It’s entirely possible to never pay extra for food on a cruise. There are buffets, sit-down meals, ice cream stations, and other free dining options.Some beverages: Cruise lines offer water and several other beverages (often lemonade, iced tea, and some juices) for free.Room service (some): Most cruise lines offer some sort of free room service, especially at breakfast. Many charge a service fee or small amount if you order lunch or dinner to your room.Daily housekeeping: You can expect to have your room serviced once a day, unless you opt out.Fitness center access: It won’t cost you anything to go to the gym and keep up your workout routine on a cruise. Many also have outdoor jogging tracks to use.Pool and hot tub access (and chairs): Deck chairs are free to use. But one insider tip is that they fill up quickly, so get out there early.Entertainment: There are typically shows and activities throughout the ship that are included in your cruise fare.Kids clubs: If you’re a parent of young children like I am, this alone could be a massive perk. Cruise lines (especially the family-friendly ones) have excellent programs for kids. There may be a charge after a certain hour, but for the most part, kids camps and clubs are free.Special areas for adults only: Most cruise lines have an adults-only area, which can have smaller crowds and peaceful places to relax.

What costs extra?

You can do a lot on a cruise ship without paying an extra dime. But in full disclosure, I’ve been on many cruises in my life and have always spent at least a few hundred dollars on extras.

Of course, there are some cruise lines that include some of these things with your fare. But these are things that most cruise lines have an additional charge for:

Gratuities: Most cruise lines encourage you to prepay for gratuities that go to people like your room attendant, dining room servers, and more. There’s usually a flat daily rate, and you can choose to add it to your onboard account if you’d prefer.Alcoholic beverages: Unless a cruise is truly all-inclusive or you have some sort of elite status, alcoholic drinks are typically not included. However, cruise lines usually have some sort of drink package, where you can pay a flat daily rate to cover this cost.Specialty coffee and teas: There are often high-end coffee shops on cruise ships (some Royal Caribbean ships even have an actual Starbucks). But these are an additional charge.Soda: Sodas are not included, but just like with alcoholic beverages, there’s usually a package you can buy if you don’t want to pay for each one.Shore excursions: If you want to do a tour, go to a private beach, or do another activity at a port, it will likely cost money.Fitness classes: Access to the fitness center onboard is usually free, but if you want to take a fitness class, it will cost extra in most cases.Specialty dining: Many cruise ships have specialty dining restaurants, such as a high-end steakhouse, that have an additional charge (but can sometimes be well worth the cost).Spa treatments and access: Cruise ships have spas that offer massages, facials, manicures, and more. And some have fantastic thermal suites and other amenities you can access, for a fee.Casino: This goes without saying, but gambling in the ship’s casino isn’t free. However, some cruise lines offer perks to gamblers (such as free drinks while playing).Photos: If you’ve never been on a cruise, you might not know that photography is a big deal — especially on formal-dress nights.Shopping: Cruise ships usually have multiple shops where you can buy clothing, jewelry, duty-free items, souvenirs, and more.

This isn’t a universal list

I mentioned this earlier, but it is worth expanding on. Different cruise lines offer different things as part of the cruise fare. Luxury cruise lines typically have more perks included with the fare, and some newer cruise lines decided to remove some consumer pain points when it comes to included items. For example, Virgin Voyages includes all specialty dining, gratuities, and a few other items as part of the cruise fare.

Having said that, this list covers some of the amenities that are commonly included when you book a cruise, and what you’ll normally have to pay extra for. Hopefully it’s a helpful guide to manage your personal finances on board, especially if you’re planning your first cruise adventure at sea.

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…

See the 10 stocks

*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.Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

“}]] Read More 

Most drivers need car insurance to drive legally, but rules vary across the U.S. Here are some of the most surprising facts about state-minimum coverage. [[{“value”:”

Car insurance is pretty common, and for most people, it’s legally required to get behind the wheel. But how much drivers need and how much protection state-minimum coverage offers varies a lot by state. Here are five of the most surprising statistics about car insurance requirements in the United States.

1. Only two states allow drivers to skip insurance

Currently, 48 states require their drivers to carry at least some car insurance to operate a vehicle legally. The only two that don’t are New Hampshire and Virginia. But that doesn’t mean drivers in these states can just ride worry-free off into the sunset.

Virginia requires its uninsured drivers to pay a $500 uninsured motor vehicle (UMV) fee, renewable annually. Failure to do this or purchase at least state-minimum coverage, which could be less than $500 per year for some, could result in fines and driver’s license and vehicle registration suspension.

New Hampshire enables its drivers to skip coverage, but only if they’re able to provide proof of financial responsibility. This shows that they would be able to pay for damages if they cause an accident. It usually means purchasing a bond or making a cash deposit equal to the state’s minimum liability coverage. Often, this is a much bigger hassle than just purchasing car insurance in the first place.

2. The average premium for state-minimum coverage is $787

The average American driver paid $787 for state-minimum car insurance in 2023. It’s reasonable to expect this rate will be a little higher in 2024 due to inflation.

But costs vary significantly by driver. Those with accident histories or those who have been known to drive without insurance in the past pay higher premiums because of the higher risk they pose to insurers.

Location matters a lot too. Each state sets its own minimum coverage requirements, and states with stricter requirements often have higher premiums for state-minimum coverage. For example, Michigan drivers pay about $1,807 per year on average for minimum coverage while drivers in Wyoming can meet their state’s requirements for about $354 per year on average.

3. The most common state requirement is 25/50/25 coverage

Ten states require their drivers to carry what is known as 25/50/25 coverage — that is, $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage. Many other states use this as a starting point. But some require extra coverage while others enable drivers to get by with lower property damage liability limits.

Insurers aren’t legally allowed to sell a driver less than the state minimum coverage. So drivers don’t need to worry about tracking these requirements themselves. When getting a quote, the state-required amount will always be the lowest possible option.

4. Maine has the highest state-minimum requirements in the nation

Maine has one of the strictest state-minimum car insurance requirements in the nation. All of its drivers must have at least the following to drive legally:

$50,000 of bodily injury liability coverage per person$100,000 of bodily injury liability coverage per accident$25,000 of property damage liability coverage$2,000 of medical payments coverage$50,000 of uninsured/underinsured motorist coverage per person$100,000 of uninsured/underinsured motorist coverage per accident

The high liability coverage limits and additional protections leave these drivers better off in an accident than those with minimum coverage in other states. But even this coverage may not be enough to cover all bills in serious accidents. That’s why many drivers prefer to purchase even higher limits if they’re able to do so.

5. Florida and New Jersey have some of the lowest state-minimum requirements

On the other end of the spectrum, there’s Florida and New Jersey, which both require surprisingly little insurance to meet the state’s insurance law.

Florida only requires that drivers have $10,000 of personal injury protection (PIP) and $10,000 of property damage liability coverage. New Jersey lets its drivers get by with just $15,000 of PIP and $5,000 of property damage liability coverage.

But again, just because it’s possible to drive legally with these limits doesn’t mean it’s the best move. Purchasing higher car insurance limits will raise premiums, but it can also save drivers a lot of money if they cause an accident.

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…

See the 10 stocks

*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.The Motley Fool has a disclosure policy.

“}]] Read More 

There are some tips and tricks to successful cruise vacations. Here are a few I wish I knew before I started cruising. [[{“value”:”

There are some things that newer cruisers tend to not be familiar with, but that could greatly enhance their on-board experience. Here are seven things I always make sure to do when taking a cruise that you can use to make sure you have the best time possible.

1. Know what room locations to avoid

Years ago, I booked a balcony room on a cruise, and was excited that it was only one deck away from the casino and specialty restaurants. But it was also directly on top of the theater, which essentially turned into a nightclub after the last performance was over.

Cruise lines make deck plans available online (try a Google search for “‘SHIP NAME’ deck plans” if you can’t find them). One tip is to choose a room with nothing but other cabins directly above or below it, and away from high-traffic public areas.

2. Familiarize yourself with the ship ahead of time

Speaking of deck plans, they can be a great tool to get to know the layout of your ship ahead of time. Another thing I always do before I cruise on a ship I’ve never been on is to watch a ship tour on YouTube. There are usually 10-15-minute walkthroughs that are easy to find, and these can be an excellent planning tool.

3. Maximize your space

If you’ve never cruised before, you might be surprised at how much smaller the typical cruise ship cabin is, compared with the average hotel room. To be fair, cruise lines do a great job of maximizing the storage area (tip: beds are usually designed to fit at least two full-size suitcases underneath). But anything you can bring to maximize your space can make a big difference, especially if you’re traveling with kids, like I usually do.

Just to name a few things, we never leave for a cruise without a pop-up clothes hamper, over-the-door shoe rack, magnetic hooks to put on the walls, and a few other organizational items.

4. Fly the day before

This tip is more about avoiding potential disasters in your travel plans. One rookie mistake cruisers often make is to book flights for the day of the trip, only to encounter weather delays or find out that it takes longer to get from the airport to the cruise terminal than anticipated.

If it’s possible, plan to fly to the cruise port the night before. It’s worth paying for a night at a hotel to make sure you get there on time. And if you live close enough and are driving to the cruise port, be sure to add some wiggle room into your schedule in case you run into unexpected delays.

5. Book all you can ahead of time

There is likely to be some excellent free entertainment on your cruise — but you might need to have a reservation to get a seat. Top specialty restaurants and shore excursions tend to fill up as well. By booking ahead of time, you can avoid disappointment and make sure you do all the things you want to do. Different cruise lines have different booking timetables (shows might open for booking 30 days before the sailing, for example).

It’s also worth noting that booking shore excursions, specialty dining, and drink packages ahead of time can also be a good personal finance move. As an example, I’m booked on a Royal Caribbean cruise in a couple months and the drink package is 30% cheaper if I buy it ahead of time, as are many of the shore excursions.

6. Check in as soon as you can

Ever since the COVID-19 pandemic, cruise lines have done a great job of minimizing wait times at the terminal by offering online check-in. You can upload your passport information, register for kids’ activities, and more before you ever arrive. Cruise lines open online check-in well before the sailing, but the exact timetable depends on the particular company.

One other thing you can do in the online check-in process is reserve a boarding time. To reduce overcrowding, there are typically half-hour arrival windows, and as you might expect, the earliest ones fill up quickly. By checking in as soon as you can, you can get an early boarding time and enjoy a few extra hours on the ship.

7. Find out what you can bring

Many first-timers don’t realize this, but there is usually some sort of beverage allowance. One unopened bottle of wine per adult is standard, and you may be able to bring some other beverages as well. You are also allowed to bring some snacks to keep in your room. I get it — there’s free food in many places on a cruise ship. But it can be a long walk to the nearest food, and sometimes your kids (or you) just want a little snack.

The bottom line is that by knowing these tips, you can maximize the value you’re getting from your cruise, avoid any delays or mishaps, and be sure you don’t miss out on things you’d like to see.

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…

See the 10 stocks

*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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Matthew Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

“}]] Read More 

It may seem unwise to refinance a home loan so soon after getting one — but there’s a good reason why I’m interested in doing just that. [[{“value”:”

Getting a mortgage is a huge hassle. You have to shop around for rates, which means getting several quotes from different lenders. You also have to produce an absolute metric ton of financial paperwork, sending in everything from bank account and brokerage statements to tax returns and pay stubs to a promise that the bank can have your first-born child if they’ll lend you the money (OK, maybe that last one was an exaggeration).

I went through this entire process very late in 2023. It’s not an experience I ever really want to repeat again. But, despite that, I’m actually hoping that I will be able to get another mortgage in 2024. That’s because I want to get a mortgage refinance loan to pay off the debt I just took on.

Here’s why I’m eager to jump through the endless hoops again to try to qualify for a new home loan this coming year, despite just going through the process.

There’s a simple reason I’m hoping to refinance in 2024

There’s a very simple reason why I want to refinance this year even though I just borrowed.

I bought a house at the end of last year. While I had shopped for a competitive rate from a good mortgage lender, my home closing was delayed several times so I ended up not having a lot of control over when I bought or what rate I ended up with. Sadly, this meant I ended up getting my loan at the peak of last year’s rate surge and I’m paying over 7.00% for my 30-year fixed-rate mortgage.

That’s a very high rate compared to the rates we’ve grown accustomed to in recent years. I was willing to commit to paying it, though, because I really needed and wanted my house — and because I know I’m not locked into it forever and was hopeful it would be a very short time before I could refinance.

See, many experts believe rates will fall below 6.00% toward the end of this year. And if that’s the case, refinancing could save me a lot of money and be well worth it.

When does refinancing make sense?

Refinancing a mortgage can make good sense if rates fall below your current rate. You want them to fall a reasonable amount, though, since there are upfront costs associated with getting a refinance loan and it can take time to break even on those costs.

A good rule of thumb is that it can make sense to refinance if you can drop your rate by at least 1 percentage point. So, if you have a 7.00% mortgage and can drop your rate to 6.00%, it may make sense to do so. You’d want to do the specific math though. Here’s how:

Estimate your closing costs. These could be about 2% to 6% of your loan amount. I’ll be shopping for a lender that offers low closing costs around the 2% range. So, for example, if I had borrowed $400,000, then my closing costs would be about $8,000.Figure out how much you’ll save on monthly payments. For example, if you have a $400,000 30-year fixed-rate mortgage at 7.00%, you’d have a monthly payment of $2,661 but if you dropped that rate to 6.00%, your new payment would be $2,398. So you’d save $263 per month.Figure out how long it would take to break even on closing costs. To make up for $8,000 in closing costs, you’d have to keep the loan for 30.4 months, or about 2.5 years.

Since I plan to stay in my house longer than that, refinancing next year if rates drop would make good sense.

If you’re like me and you took out a mortgage in the last year or so, it may be worth watching when and if rates drop. You could find that refinancing could save you a good amount of money each month and may absolutely be something worth considering. You can decide by running the calculations mentioned above so you can make the choice that’s right for you.

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…

See the 10 stocks

*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.The Motley Fool has a disclosure policy.

“}]] Read More