Money Management

Have extra money? Read on to see where you may want to stash it. [[{“value”:”

For many people, the concept of having extra money just doesn’t exist. And it’s easy to see why. Living costs have gotten very expensive on a broad scale. And for low and even moderate earners, there’s often just not any money left over at the end of the month.

But if you’re in a better financial situation, then you may be in a position to have money left over at the end of the month after accounting for all of your bills. And if so, here are some places to consider stashing that money.

1. A savings account

The economy is fairly strong today, but you never know when things might take a turn for the worse, resulting in more job loss across the board. And you also never know when you might encounter an unplanned expense, whether it’s a car with a bum engine or a water heater that refuses to heat.

That’s why it’s so important to have cash set aside for emergencies. And the best place to put that money is a savings account. That way, you’ll have access to it at all times, and you’ll get to earn some interest on your cash along the way.

Plus, right now, savings accounts are paying pretty generously. If you look at online banks, you might easily find an APY of 4% or more. So if you have $10,000 you’re earmarking for emergency expenses, that means during the year, you have the potential to earn a cool $400 on your savings, assuming rates don’t fall.

And to be fair, they probably will fall, which we’ll get into in a bit. But even so, you need money on hand for emergencies. Even if interest rates aren’t as generous later in the year, it’s extra money in your pocket nonetheless.

2. A CD

The Federal Reserve raised interest rates 11 times between March 2022 and mid-2023. And as a result, rates on savings accounts and certificates of deposit (CDs) have been elevated.

But during its last four meetings, the most recent of which took place at the end of January, the Fed opted to pause its rate hikes because inflation has been slowing. As such, the CD rates that are available today may not stick around for long. And once the Fed starts cutting rates, which may happen later in the year, CDs could start paying a lot less.

That’s why now’s a good time to open a CD. But don’t just rush to open one at your current bank. Instead, shop around for the best rate you can find.

Also, you may want to ladder some CDs instead of locking all of your money up for the same term. Cashing out a CD early will usually result in a financial penalty, so it’s best to ladder your CDs strategically.

Let’s say you have $6,000 to put into a CD. Instead of opening a single 12-month CD tomorrow, consider opening a $2,000 6-month CD, a $2,000 9-month CD, and a $2,000 12-month CD. This way, you have money freeing up at various intervals.

3. An IRA

It’s hard to focus on long-term savings when you may be struggling with bills in the present. But if you’re in a position where you can afford to set money aside for your future, then it pays to put some cash into an individual retirement account (IRA).

The nice thing about traditional IRA contributions is that they shield some of your income from taxes. So if you contribute $2,000 this year, that’s $2,000 of earnings you won’t pay taxes on. If you fall into the 22% tax bracket, that $2,000 contribution saves you $440. Plus, you can then invest that $2,000 within your IRA and ideally grow it into a larger sum over time.

It’s hard to not spend your entire paycheck at a time when costs are so high. But if you have extra funds at your disposal this month, consider a savings account, CD, or IRA.

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Celebrate the game for less with deals from Costco. Here are some you can find right now. [[{“value”:”

Want to throw a big party for the big game but you’re not so thrilled about the idea of a big hit to your finances? You can have your party and pay for it too with some smart shopping at Costco.

The wholesale club has everything you might need to get ready for the game, from appliance upgrades to all the food you — and your guests — can eat. Here are some deals at Costco right now.

1. Refrigerators

It can take a lot of food to feed a party of hungry sports fans. You need to prep ahead of time so you’re not stuck cooking on game day. But where is all that food going to live until kickoff?

If it’s time to upgrade to a larger fridge — or even a second fridge (I live the two-fridge life, no regrets) — you can find some really remarkable deals at Costco right now. There are dozens of models on sale, with savings up to $1,200.

Appliances, like electronics, can only be returned within 90 days. However, refrigerators come with Costco’s Technical and Warranty Service which extends the manufacturer’s warranty for up to two years from the date of warehouse purchase (or date of delivery if purchased online). This is similar to the extended warranty coverage offered by some credit cards.

2. Drinks

Simply supplying sodas for a big watch party can stress a budget, and it only gets worse when you’re stocking the bar, too. From fruit punch to grown-up punch, it’s all at Costco, and it’s all competitively priced.

In particular, you’re typically going to get a great price on anything from Kirkland Signature, Costco’s house brand. I’ve heard some great things about the Kirkland Signature wines and liquors, especially the Kirkland Signature Vodka. You could even grab a variety pack of Kirkland Signature hard seltzer if that’s more your style.

3. Snacks

If the fact that it has free samples in every other aisle didn’t tip you off, Costco is a great place to pick up snacks — and to do so in great abundance.

All that bulk produce I’d normally warn you to stay away from? Now is its time to shine! Imagine the grazing platters you can create with pounds of fruits, veggies, cheeses, and meats, all grabbed at a bargain price!

Not so much into DIY? Grab pre-made snacks, both fresh and frozen, and all still at reasonable prices.

As with drinks, snacks from Kirkland Signature will score you great prices. And don’t worry about quality; as any Costco fan will tell you, Kirkland Signature products are almost always great quality. (The secret? They’re often made by the same companies that produce major brand names.)

4. Desserts

Who wants to toil away in front of the oven all day when there’s pre-gaming to do?! Thanks to the Costco bakery, you don’t have to worry about how to add something sweet to your party spread.

For example, weighing in at more than five pounds, the brand-new Cherry Topped Cheesecake can probably feed an entire party on its own. But maybe grab a Triple Chocolate Cream Pie or Black Forest Bar Cake just to be on the safe side, huh?

5. Laundry detergent

This one may feel out of place on this list, but for me, laundry detergent is a top-of-the-list party preparation item.

You see, I drop things. Frequently.

And when a group of us are all together, eating, drinking, and making merry? I’m not the only one dropping or spilling things on my fancy party clothes. (Alright, fine, it’s more of a not-so-fancy party t-shirt. But I still don’t want it to stain.)

Kirkland Signature laundry detergent is currently $3.90 off, which puts you at $0.11 a load if you buy it online, and probably closer to $0.09 per load if you buy it at your local Costco. (Costco.com is almost always at least a couple of bucks more expensive than buying in-store.)

Everything you need no matter how you party

For some folks, the big game is a big deal. For the rest of us? It’s a chance to hang out with friends and family, eat wings, and watch 30-second commercials that cost more to air than most of us will make in a lifetime.

No matter how you celebrate the big game, swing by Costco first. That way, even if your team loses, you’ll know you won where it really counts: your wallet.

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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*Stock Advisor returns as of February 6, 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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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You need to keep an eye on financial dates, like tax day and banking holidays. Here’s a list of 2024 dates to note and other steps to upgrade your finances. [[{“value”:”

With every year comes a new opportunity to better manage your money. But with all of the various financial deadlines that may or may not impact you, there’s a lot that can get lost if you aren’t careful.

Here’s a quick list of financial dates you should know as we continue through 2024, and extra steps you can take to be even more prepared.

Important financial dates for 2024

Here are the upcoming dates you should note in your calendar:

Jan. 31st: Last day for companies to distribute W-2sFeb. 1st: Last day for companies to provide 1099s (including the 1099-MISC and 1099-NEC)Feb. 19th: Federal banking holiday (Presidents’ Day); New York Stock Exchange (NYSE) holidayMarch 29th: NYSE holiday (Good Friday)April 15th: Tax filing/payment deadline; last day to make 2023 retirement/HSA contributions; first quarterly tax deadline (self-employed)May 27th: Federal banking holiday (Memorial Day); NYSE holidayJune 15th: Second quarterly tax deadline (self-employed)June 19th: Federal banking holiday (Juneteenth National Independence Day); NYSE holidayJuly 4th: Federal banking holiday (Independence Day); NYSE holidaySept. 2nd: Federal banking holiday (Labor Day); NYSE holidaySept. 15th: Third quarterly tax deadline (self-employed)Oct. 14th: Federal banking holiday (Columbus Day)Nov. 11th: Federal banking holiday (Veterans Day)Nov. 28th: Federal banking holiday (Thanksgiving Day); NYSE holidayDec. 25th: Federal banking holiday (Christmas Day); NYSE holiday

Extra steps to take to upgrade your finances

There are other important steps you should also keep on your radar — though they may not have a specific deadline. Here are six more things to add to your personal financial calendar.

1. ASAP

If you’ve moved to a new address since last year, you should notify either your former employer or current one about your new address to ensure that any physical tax forms are sent to the correct address.

2. When your insurance policies are coming up for renewal

Review your various coverages and rates and shop around for new policies. That way, you can make sure you aren’t overpaying for coverage. For context, auto insurance premiums went up a whopping 17.4% from 2022 to 2023, so it pays to take a bit of time to consider your options.

3. Weekly

It’s a good idea to review your general finances every week (or at least every month) to make sure you’re making sufficient progress on your goals. This check-in should review everything from your spending and account balances to large upcoming expenses you may need to prioritize and the progress you’re making on your various financial goals.

4. Quarterly

Review your credit cards to ensure they’re meeting your needs. If you aren’t using all of the benefits associated with a card that charges an annual fee, for example, it may make sense to close that account. Just be aware that this decision can negatively impact your credit score if, for example, it shortens your credit history.

5. Annually

You get a free opportunity to check your credit history and score via AnnualCreditReport.com every week, so it’s a good idea to take advantage of it at least once a year. It will give you a breakdown of each of your accounts, as well as any dings to your score, which can help you take more targeted steps toward improving your credit.

6. If you receive a raise

Review your retirement contributions so that you ensure you’re putting enough money away for retirement. As a general rule, you should aim to save 10% to 15% of your income per year for retirement. So if you earn $50,000 per year before taxes, you should try to contribute up to $625 per month. But if you were to get a raise to $65,000 per year, that would increase to a maximum of $813 per month. And if you aren’t already maxing out your employer contribution match, you may want to consider periodically increasing your contribution amount until you reach that limit. That way, you won’t be missing out on free retirement money.

It can be difficult to keep track of all of the things you need to do for your finances each year. But having a financial cheat sheet like this one can be a useful tool to ensure you aren’t missing out on the most important steps throughout 2024.

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 6, 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 positions in and recommends Target. The Motley Fool has a disclosure policy.

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Want to get car insurance discounts? Allstate rewards safe driving with the Drivewise tool. See how this telematics car insurance can help you earn discounts. [[{“value”:”

The price of car insurance just keeps going up. According to recent data from the Bureau of Labor Statistics, between December 2022 and December 2023, U.S. car insurance costs increased by 20.3%. If your auto insurance premium is causing stress for your monthly budget, it’s time to get serious about finding car insurance discounts.

Not everyone wants to take the risk of raising their car insurance deductible or dropping comprehensive coverage. What if there was a better way to lower your car insurance costs, such as by sharing some driving data with your insurance company?

Telematics car insurance is a hot new trend in car insurance, where leading auto insurance companies like Allstate reward you for safer driving. With the Allstate Drivewise® safe driving tool, all you have to do is sign up to share some driving data via a mobile app. Telematics insurance like Allstate Drivewise® can help you improve your driving, reduce your risk of car crashes — and earn a lower-cost car insurance premium.

Let’s look at how Allstate uses telematics with its Drivewise® safe driving tool.

Allstate’s telematics car insurance: Drivewise®

Drivewise is a free, optional safe-driving tool from Allstate that lets you choose to share information about your driving. You can add Drivewise to any Allstate auto insurance policy, and you can sign up for it via the Allstate mobile app. Drivewise measures your safe driving behaviors and rewards you for safer driving with discounts.

You’ll get an immediate discount just for activating Drivewise in the Allstate app. After that, every six months you can get a “performance reward” on your insurance policy based on your safe driving behaviors. There are no extra telematics devices or gadgets that you have to attach to your car; the Allstate Drivewise tool works within the Allstate mobile app.

Allstate Drivewise measures your safe driving behavior in the following ways that affect your performance reward:

Safe speeds: The app tracks your driving speed to see if you can stay under 80 miles per hour.Safe stops: The app tracks your “braking events” to see how gradually (and safely) you stop.Safe driving: The app tracks the times of day (or night) when you drive — and high-risk times are after 11 p.m. Limit your late-night trips, and you might earn a discount.

Compared to other companies’ telematics programs, the Allstate Drivewise app is less intrusive in the data it collects. Some other companies track your phone usage to incentivize you to avoid distracted driving. Drivewise shows you your phone activity, but only as a safe driving feature; it’s not part of the calculation for your discount.

Allstate Drivewise also gives you safe driving features like a dashboard (showing how much money you’ve saved), driving insights, safe driving challenges, and crash detection to get you help ASAP in case of an accident. Drivewise isn’t just a way to get car insurance discounts — it can be an added layer of protection to help keep you safer behind the wheel.

There is no specific guarantee for how much you can save on car insurance with Allstate Drivewise. Your exact discounts will depend on your state. However, you can earn performance rewards in as little as 50 trips — this might be faster than other insurance companies that require a few months’ worth of data.

Allstate Drivewise telematics car insurance: Pros and cons

Every car insurance company’s telematics program has a few potential advantages and downsides. Let’s look at a few for Allstate.

Allstate Drivewise pros

Instant savings: Allstate gives you an instant discount just for activating Drivewise.No extra devices required: Unlike some other companies, Allstate’s telematics program is contained within the mobile app. You don’t have to plug in any other devices.Driving behavior data collection is focused and limited: Compared to other telematics car insurance plans, Allstate Drivewise seems to collect data on just a few types of behaviors — driving speed, stopping speed, and time of day.Extra built-in safety features: The Drivewise tool offers some useful features that could help you improve your driving habits, avoid distracted driving, or even get faster help in case of a crash.Highly rated mobile app for iOS: The Allstate mobile app gets rave reviews on the App Store, where it’s rated 4.8 out of 5 stars. iOS customers seem to really love the Allstate app.Available in almost all states: Allstate Drivewise is not available in California or Alaska, but other than those states, this telematics car insurance has an impressive nationwide reach.

Allstate Drivewise cons

The actual amount of discounts is unclear: Some other insurance companies promise a range of specific discounts that you can get with telematics car insurance. Allstate doesn’t offer any specific savings. Your savings will depend on where you live and how you drive.Negative reviews for Android app: If you’re an Android user, beware of the Allstate app; it got only 3.8 out of 5 stars on Google Play. This is one of the lowest-rated car insurance apps I’ve ever seen. Customers complained about Drivewise implementations, excessive notifications, and lost GPS signals while driving.Your premium could go up: Some other car insurance companies (like State Farm) promise not to raise your premium if you use telematics. Allstate is not one of them. The company website’s fine print says, “…in some states your rate could increase with high-risk driving.” If you’ve got a lead foot and get in lots of car crashes, Allstate Drivewise might not help you.

Bottom line: Allstate auto insurance tends to be more expensive than other car insurance companies. But if you want to save money on Allstate insurance, Drivewise could be worth trying.

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

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