Money Management

This writer has made her share of financial blunders. Read on to learn about one regret she has to this day. [[{“value”:”

When I first graduated from college, I had a few goals — pay off my educational debt, build an emergency fund, and save up some money for travel (something I didn’t do very much of as a cash-strapped student). Thankfully, a combination of a good job right out of college and living at home for a period (and therefore not having to pay rent) helped me achieve those goals.

But there was one financial objective I overlooked during my early 20s — funding a retirement account. And as a result, I cost myself a lot of money. I just didn’t realize it at the time.

A mistake I wish I could correct

I didn’t start funding a retirement plan consistently until I was about 25. But I could’ve started contributing to one three years earlier.

When I first started working, I didn’t have access to a 401(k) plan through my job. But an IRA was always an option. It was just an option I decided not to take. And to be fair, I got access to a 401(k) shortly thereafter.

My logic was that retirement was really far off, so I had plenty of time to build up savings for it throughout my career. Plus, I wanted to shed my debt and put some money in the bank.

Now to be fair, my decision to focus on building an emergency fund was hardly a silly one. A good 63% of Americans today can’t afford an unplanned $500 expense, according to SecureSave data. I didn’t want to be in that position, so I prioritized near-term savings over long-term savings, which made sense.

But what I should’ve done was simultaneously focus on putting at least some money into a retirement account. Losing out on three years of contributions means I’m a lot less set for retirement than I could be.

What I missed out on

You may be thinking “What the big deal? So you waited a few years to fund your retirement account — how much money could you really have missed out on?” But the answer is, quite a lot.

See, when you invest your retirement savings in stocks, you have the potential to grow a small sum of money into a much larger one. The stock market’s average annual return over the past 50 years has been 10%.

So, let’s say I’d contributed $5,000 to a retirement plan 20 years ago. At that same return, that $5,000 would be worth close to $34,000. So the way I see it, failing to take action in that regard potentially cost me $29,000. That’s a lot of money.

Of course, I was able to course-correct pretty early on and start funding a retirement plan in my mid-20s. And I’ve pretty consistently contributed to one ever since. But still, if I could somehow go back in time, I’d tell myself to start saving for retirement right away. And you may want to tell yourself the same thing. It’s a smart thing to do for your personal finances, even though it may seem unnecessary when you’re young and retirement is so far away.

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CDs and Treasury bills are two of the safest places to put your money. Compare CD and T-bill rates so you can decide which is the better buy. [[{“value”:”

If you’re looking for a safe investment, certificates of deposit (CDs) and Treasury bills are popular options. Most banks and credit unions offer CDs. These let you lock in a fixed interest rate and term, such as 5% for 12 months.

Treasury bills, also known as T-bills, are sold at auction. They work similarly to CDs, as you buy them with a fixed interest rate and a set term. Terms range from four to 52 weeks. To decide which is the better investment, here are recent rates from top CDs and T-bill auctions, as well as their other key differences.

CD rates vs. T-bill rates

The table below compares recent CD and T-bill rates side by side. The CD rates were the best I found after reviewing dozens of high-yield CD options. T-bill rates are from auctions within the last two weeks at the time of writing (issue dates ranging from Jan. 1 to Feb. 8, 2024).

As you can see, there’s not much difference between shorter CD and T-bill rates right now. But if you want a 1-year term, then you’re better off with a CD.

CD rates vs. T-note rates

While T-bills have a maximum term of 52 weeks, there are also other types of Treasury-issued securities with longer terms available. Treasury notes have terms of two to 10 years. Treasury bonds have terms of 20 or 30 years. CD terms typically cap out at 10 years, so if you want a fixed-income investment for longer than that, you’ll need to go with Treasury bonds.

Here’s how CD rates currently compare to T-note rates. The T-note rates are from notes issued between Jan. 16 and Jan. 31, 2024.

If you’re looking for a term from two to five years, you can earn more from a CD. And it can be a sizable difference.

Differences between investing in CDs and T-bills

T-bills have a key advantage over CDs: They’re exempt from state income taxes. The same is true with Treasury notes and Treasury bonds.

If you live in a state with income taxes, and rates are similar for CDs and T-bills, then it makes sense to go with a T-bill. The amount you save on taxes will likely result in a higher payout from a T-bill than a CD.

Another benefit of T-bills is their liquidity. You can buy and sell them on a secondary market. You can’t do that with a CD purchased from a bank — you’ll need to break the CD and pay an early withdrawal penalty to get your money back. There are brokered CDs issued by stock brokers, and these can be bought and sold on a secondary market. These may also be worth considering if you want a more flexible CD option.

Choosing between a CD and Treasuries depends on how long of a term you want. For terms of one to six months, as well as 10 years, rates are close enough that Treasuries are the better pick. For terms of one to five years, CDs are currently paying more, and it’s a large enough difference to give them the edge.

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If you’ve recently lost your job due to layoffs, it’s understandable if you feel anxious about your finances. Find out what to do to stretch your budget. [[{“value”:”

If you’ve received the difficult news that you’ve been laid off, please know you’re not alone. Unfortunately, many workers have been dealt similar hands in recent months. Whatever emotions you’re experiencing are understandable, and taking time to process the news is OK.

After taking some time for yourself, get your financial affairs in order. Sudden income loss can impact your wallet. If you’re anxious about how you’ll afford your bills, you’re in the right place. You can make strategic moves to stretch your money further. Here are some hacks to stretch your budget post-layoff.

Assess your cash flow

You’ll want to get a clear picture of your current cash flow. Check your savings accounts to see how much money you have stashed away. If you have a sizable emergency fund, that will be helpful. You should also explore all other benefits you may qualify for post-layoff.

Apply for unemployment as soon as possible, as there could be some delay before you receive benefit payments. Also, don’t ignore any benefits your previous employer makes available, like severance pay. These resources can increase your total cash flow.

Review your expenses and make spending cuts

It’ll be challenging to make informed decisions about your money if you don’t know where your finances stand. You’ll want to review your current expenses. You can look at your bank statements and credit card bills to better understand your recent spending habits.

While you can’t eliminate or reduce necessary bills like your mortgage or auto loan, you can make cuts elsewhere and adjust your spending habits. If you’ve been dining out or paying for extra streaming apps, those costs could be reduced to help you stretch your dollars further.

Don’t be afraid to use technology to your advantage. If you’re brand-new to budgeting, consider using a budgeting app. Tools like this can help you track your progress and stay motivated.

Negotiate your bills

Some bills can be negotiated — like your home internet, mobile phone, or cable. It’s worthwhile to call your providers and see if they can extend you a discount. Be honest about your situation because they may be more willing to accommodate your request. You can also get quotes for expenses like home and auto insurance to see if switching insurers could save you some cash.

Get a side hustle or part-time gig to boost your income

Many people impacted by layoffs hope to land a full-time job in a similar role. This is a good strategy, especially if you have prior experience in your industry. But it can take time to land another job, especially if there is a lot of competition.

One way to boost your bank account balance is to get a part-time job or side hustle. Working a few hours a week could help you feel more at ease about your finances.

You can spend a portion of your time each week working to boost your income and spend some time applying for full-time jobs. The work you do now doesn’t have to be a forever solution, so don’t be afraid to explore part-time opportunities or side hustles to hold you over.

Don’t give up hope

Job loss can be a difficult situation. You’ll likely experience complex emotions as you process the news of a recent layoff. But don’t give up hope. Your current situation isn’t forever. You can make moves that make you feel more financially secure as you look for another job. For additional money tips, check out our free personal finance resources.

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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.*

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

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Think you’ll list your home this spring? Read on for some key steps to take at this stage of the year. [[{“value”:”

In 2023, the median U.S. existing home sale price reached a record high of $389,800, per the National Association of Realtors. If you’re hoping to take advantage of today’s higher home prices, then you may be gearing up to sell your home this spring.

Spring tends to be a more favorable time to list a home than winter. You’re less likely to encounter weather-related hiccups, and you might have a much easier time showing off your home’s curb appeal.

But if you’re serious about a spring listing, there are steps you should take in the coming weeks to make that happen. Here are five to focus on.

1. Find a good real estate agent

Selling a home on your own could be more work than you’ve bargained for. If you want the process to go smoothly and you want to increase your chances of walking away with the most favorable sale price, then it could pay to enlist the help of a seasoned real estate agent.

Real estate agents who are high in demand might book up during the spring, though. So the time to start interviewing candidates for the job is now.

You can start by asking people in your neighborhood who have sold a home recently for recommendations and take it from there. Or, if you had a good experience with the real estate agent who helped you buy your home, see if they’re available to help sell it.

2. Assess your home for damage and come up with a budget for repairs

Your home might need work before it’s ready to be sold. Make a list of repairs now and set a budget for each one so you know which to prioritize.

If your living room flooring looks worn, fixing it might cost $3,000. So might putting in new carpeting in your basement. But since your living room is likely a more prominent spot, if you can’t afford both projects, you’ll know which one to focus on.

3. Make interior repairs sooner rather than later

Once spring arrives and the weather warms up, you may find yourself busy doing things like painting your fence or staining your deck. So now’s a good time to tackle interior repairs that don’t require warm weather to get the job done.

Fix or replace the leaky faucets you’ve been ignoring, or repaint your downstairs bathroom if its walls have seen better days. You’ll be thankful for having gotten the work done once you get busy with outdoor jobs.

4. Come up with a home-buying budget

You’ll need a place to live once you sell your home. Take the time to figure out how much you can afford to spend on a new home, keeping in mind today’s mortgage rates. Also, if you’re moving towns and/or upsizing, your property tax bill might increase. Crunch the numbers to see what’s doable.

It might help to find a real estate agent before coming up with your home-buying budget so they can tell you how much money you’re likely to fetch for your current home. Knowing what down payment you’ll likely be able to make on your next mortgage could help you arrive at a more accurate estimate.

5. Check your credit score and boost it if needed

Mortgage lenders generally require a minimum credit score of 620 to qualify for a conventional home loan. But the higher your score is, the more favorable a mortgage rate you’re likely to qualify for.

That’s why now’s a good time to check your credit score. If the number isn’t as high as you’d like it to be, you may be able to take a few steps to boost it quickly.

If you owe a lot of money on your credit cards, paying off a chunk of that debt could help your credit score rise. The same holds true for checking your credit report for errors and correcting mistakes that work against you. You’re entitled to a free copy of your credit report every week; just go to annualcreditreport.com.

Selling a home is a huge deal. Take these steps now to set yourself up for success this spring.

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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 Fetch. The Motley Fool has a disclosure policy.

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Higher repair bills and more natural disasters have sent car insurance rates skyrocketing. Here’s how drivers can keep their costs down in 2024. [[{“value”:”

Getting behind the wheel got significantly more expensive throughout 2023, with the average auto insurance premium rising 20.3% last year, according to the Bureau of Labor Statistics. This trend could continue into 2024, as vehicle values continue to rise and repairs become more expensive. More frequent and severe natural disasters are also contributing to the higher costs.

But the rules for finding a good deal on auto insurance haven’t changed. Here are three moves drivers can try this year to find the coverage they want at a reasonable price.

1. Shop around

This is the most important thing drivers can do to find the best deal on insurance. Every insurer evaluates risk differently, which is why they all offer the same person different rates. The only way to figure out which offers the best price to a given driver is to get quotes.

Most of the best auto insurers have online quote tools these days that enable drivers to view their prices and customize their coverage in minutes. But to get an accurate quote, drivers will need important information, including:

Their vehicle identification number (VIN)Social Security numberThe date(s) of any accidents or traffic violations

Many providers enable drivers to save their quotes by entering their email address so they can return to them at a later date. This is often worth it because it enables applicants to easily compare rates from several providers at once.

It’s tempting to focus on premium costs alone, but there are other factors worth considering. The deductible determines how much the policyholder pays out of pocket when they need to file a claim. And customer service — or lack thereof — can make the claims process a breeze or a nightmare. Weigh all these factors before deciding on the best option.

2. Watch for discounts

Most car insurers offer a variety of auto insurance discounts to help drivers save. Some, like safe driving discounts, are pretty common. Others, like savings for hybrid or electric vehicles, are rarer. It doesn’t hurt to review a company’s car insurance discount list when deciding which companies to get quotes from. This is especially true for those who qualify for less common discounts. However, it’s important to note that more discounts don’t always translate to a lower premium.

Usage-based discounts are also worth considering for those who are comfortable with the monitoring involved. Drivers who agree to participate will have a small device placed in their vehicle that monitors their driving behavior, or they’ll have to download a mobile phone app. Good driving leads to increased savings, on top of the savings the policyholder gets just for enrolling.

3. Choose a higher deductible

Raising an auto insurance deductible usually lowers premiums, sometimes significantly. It’s definitely an option worth considering for drivers who hope to save money over the long term. But it’s important to prepare for the worst.

Drivers may want to save for the deductible in an emergency fund so they have enough cash on hand, should they get into an accident. One way to do this is to place whatever they save on premiums by raising their deductible into a savings account each month. For example, if the premium is $350 per month with a low deductible and $300 per month with a high deductible, a driver could save $50 per month until they’ve saved enough to cover their whole deductible.

If all of that doesn’t work, reducing coverage is also an option for many drivers. But it’s important to understand the risks of doing so. Less coverage increases the risk that drivers could owe huge out-of-pocket costs if they cause a serious accident. And forgoing auto insurance altogether is illegal in nearly every state, with punishments ranging from fines to jail time. Give the above tips a shot before reducing coverage to see what kind of a difference they can make.

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Federal tax-filing fees can add up fast. Before paying these fees, verify whether you qualify for services like IRS Free File. Find out more. [[{“value”:”

Now that we’re into tax season, you’re likely starting to gather all your tax documents. Tax software can guide you through tax preparation so it’s less overwhelming. To avoid paying high preparation and filing fees, check to see if you qualify for free tax preparation services.

The IRS Free File Program is available to taxpayers meeting income requirements. Keep reading to determine if you qualify for this no-cost option before filing your 2023 federal tax return.

The IRS Free File program is a valuable resource

The IRS Free File Program is a service made available to U.S. taxpayers. Through the program, the IRS partners with select tax preparation companies. Eligible taxpayers can use partner software to prepare and file their federal tax returns at no cost.

Your household’s adjusted gross income (AGI) for the 2023 tax year must be $79,000 or less to qualify for this service. If you qualify, don’t neglect this program. Not paying filing fees can be a win for your personal finances.

The following eight tax prep companies have partnered with the IRS this tax-filing season:

1040.com1040NOWezTaxReturnFileYourTaxes.comFreeTaxUSAOnLine TaxesTaxActTaxSlayer

Review the eligibility requirements for participating providers

You should know that participating partners may set additional income or age limitations to use their services for no-cost federal tax preparation. The IRS has an online tool that taxpayers can use to determine which partner software they’re eligible to use based on their age, income, and unique tax situation.

It’s also worth mentioning that free state tax return filing may be available to taxpayers in some states. The filing price will be displayed if you need to pay to file your state tax return.

Here’s another free option for taxpayers

If you feel confident in your ability to prepare your tax return the old-school way, you can use Free File fillable forms, made available through the IRS.

There are no age, income, or residency restrictions to use this service. After creating an online account, taxpayers can choose the tax forms they need and complete them electronically.

You should print a copy of your completed forms for your records. Once your federal tax forms are completed, you can e-file your federal return at no cost. This is an excellent option to consider if you don’t meet the eligibility requirements for the IRS Free File program.

You can keep more money in your bank account by avoiding filing and tax prep fees.

Don’t wait until the lost moment to file your tax returns

Plenty of time remains to prepare and file your federal and state tax returns. But don’t wait too long. You want to allow yourself enough time to gather your financial documents and verify that your information is accurate before you file. You can avoid costly filing mistakes by taking extra care as you prepare your tax returns.

If you have specific questions about your tax situation, you should reach out to a qualified tax professional for more guidance. If you’re ineligible for the IRS Free File program but want to use other software solutions, check out our list of the best tax software.

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.*

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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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