Money Management

Want a pay raise to improve your finances? Read on for ways to get it. [[{“value”:”

The salary you earn can impact all aspects of your personal finances. A raise could spell the difference between being able to rent a larger place to live, affording a car, and other such things that can lend to a better quality of life.

In a recent Monster.com survey, 81% of workers say their current wage has not kept up with the rising cost of ​living. So if you’re eager to see your salary go up, that’s understandable.

You may be aware that often, jumping ship and moving to a new company is a good way to snag a pay boost. But there’s a downside to going this route, and it’s having to adjust to a new work environment. Plus, if your company offers good benefits, you may not want to give them up, despite being less than happy with your pay. In this type of situation, a good bet is to do what you can to earn a raise. Here are some strategies you can employ.

1. Prove your case with data

Your employer might think they’re paying you a decent wage given your skill set and role. But if you were to present data showing that’s not the case, it might get your company to change its tune.

To that end, spend some time digging up salary data. You can look at websites like Salary.com and Glassdoor to pull up information on what people earn based on their respective titles and geographic regions.

Then, do some analysis. If the typical person with your job title earns 5% to 10% more than you do, that alone could make the case for a raise. It’s hard for an employer to argue that $52,000 a year is an equitable wage when the typical person in your role, and in your area, earns $55,000 to $57,000.

2. Boost your skills on the sly and then show them off

There are several steps you can take to quietly but effectively boost your job skills. These include taking online courses (some of which may be free) and shadowing more seasoned employees within your company.

From there, find a time to wow your boss with your newfound knowledge. That could mean taking over a big presentation or troubleshooting a tech issue no one else at your company can deal with.

Once you’ve done that a few times, call a meeting with your boss and state that you wish to discuss pay. You can point to your newly developed skills as a reason for a boost.

3. Get on another manager’s good side

Kissing up to your manager may not be the most effective way to get a raise. Believe it or not, developing a relationship with another manager at your company might serve you even better.

If another manager decides they want you on their team, your manager might try to entice you to stay by offering higher pay. At that point, that second manager might make you an even better offer. All told, you may be looking at a full-fledged bidding war — over you.

A salary increase could do a lot of great things for your finances. It could help you build savings, pay off debt, and sock money away for major goals. If you’re not happy with your current salary, try these tactics to snag a raise. You have nothing to lose — and a lot to potentially gain.

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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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Car insurance costs are rising faster than inflation, so finding the best deals on coverage is crucial. Learn how to do that by following some key tips. [[{“value”:”

Auto insurance costs rose six times faster than overall price increases last year, which, quite frankly, is pretty annoying since paying for car insurance is not exactly a fun expense. Unfortunately, having insurance coverage is absolutely crucial to protecting your assets, so it’s a necessary evil.

There are some things motorists should not do to reduce prices, like dropping coverage they need or lowering policy limits, as these things could put their personal finances at risk. But the good news is, motorists can get the right policy at the best price if they follow a few savvy tips outlined here.

1. Shop around

The single best way to get the best auto insurance deals is to shop around for them. This may seem obvious, but a huge number of people simply are not checking out their options. In fact, 40% of people only shop around once every few years, while 22% never shop around for coverage at all. That’s a shame, since more than three-quarters of people who compare auto insurance quotes end up saving money.

To shop around for coverage, gather some key information like your vehicle’s VIN number and the driving history of those who will be on the policy. It’s also helpful to look at an existing policy to see what coverage levels to look for.

Most insurers make it possible to get quotes online, so visit the websites of at least three to five different insurers to see what they might charge. Start with our picks for the best cheap car insurance to figure out what companies to consider. After getting a few price quotes, pick the insurer with the best deals that offers the desired coverage level and has a solid reputation for good service.

2. Bundle coverage

Most people need more than just car insurance — they may need homeowners insurance or renter’s insurance as well. Buying multiple policies from the same insurer could result in significant savings, with one insurer estimating up to a $950 cost reduction on premiums.

If policies aren’t already bundled, it’s helpful to get quotes on a package deal from different insurers in order to get the best price.

3. Pay premiums upfront

Insurers may reward those who are willing to pay an entire year’s premiums all at once. Discounts can range from 6% to 14% on average for making just one payment instead of several. This may be a big upfront expense, but if it is affordable, there’s no reason to pass up this savings.

For drivers who can’t cover this all at once, it may be worth looking into a 0% APR credit card that offers 12 (or more) months to pay without interest charges. By putting premiums on the card, drivers could get the discount for paying a year at once, but still pay it off monthly — as long as they are sure they will be able to pay the balance in full before interest starts accruing.

Those who can pay all at once may also want to use a credit card to pay their premiums, as doing so could earn them rewards or help them qualify for a new cardmember bonus. The best sign-up bonus cards typically require new cardholders to spend a certain amount on their card within a certain time period after opening the card — like a requirement to spend $1,000 within 90 days of account opening, for example. Paying a whole year’s premiums on your card could make a huge dent (if not totally satisfy) many sign-up bonus requirements.

By following these three tips, hopefully drivers can end up saving on coverage even as premiums rise. After all, it’s nice to be left with a little extra cash in our bank accounts for something more enjoyable than auto insurance premiums.

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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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If you’re using more than 30% of available credit or making some other common credit card mistakes, you could be hurting your finances. Learn more here. [[{“value”:”

Most people know the basics of credit cards. Interest rates are very high (21.47% as of November 2023), you should pay your balance in full when you can, and you should pay your bills on time to avoid late fees and the resulting damage to your credit score.

But there are some credit card mistakes that may not be so obvious and that could end up hurting your personal finances if you accidentally make them. You don’t want that to happen to you, so check out these three big errors and ensure you’re not guilty of making them as 2024 unfolds.

1. Using more than 30% of your available credit

You probably know you shouldn’t max out your credit cards, but were you aware that using more than 30% of the credit available to you could also hurt your credit score? Your credit utilization ratio is actually the second most important factor in determining your score, after payment history. It accounts for 30% of your score, so you really want to be sure you have an acceptable utilization ratio.

The lower your ratio is, the better for your score — but you’ll definitely want to keep it below 30% to avoid seeing a drop in your score of as much as 50 points. Be aware, too, that your card issuer may report your utilization ratio before your card is paid off. So even if you are repaying your bill in full each month, having a high balance can still hurt you. If that’s the case, you may want to ask your card issuer when it reports to the credit bureaus and try to pay down your balance before that occurs.

2. Not checking your statements regularly

You should be checking your credit card statements every month. You’ll want to do this for a few reasons:

To spot charges that don’t belong, which could indicate identity theft.To track patterns in your spending that could suggest you’re going overboard in specific areas, like dining out or entertainment.To make sure you’re not forgetting about any subscriptions on your credit cards like a streaming service you no longer use.

Failing to check your statements could mean you get stuck paying for charges you didn’t make, or that you end up wasting money on stuff that’s no longer providing a good value to you.

3. Failing to use all your cardholder perks

Most people focus on credit card rewards but forget about the other perks their card might offer. For example, many American Express cards come with extended warranties on purchases, which can give you added protection once a manufacturer’s warranty has expired.

Some cards also offer, among a whole host of other rewards:

Return protection in case you have trouble returning an itemTravel insuranceRental car insuranceEarly hotel check-inFree checked bags

If you don’t pay attention to these benefits, you could spend money on something that your card would have provided you for free.

Check out your card’s terms and conditions to be sure that you’re actually using all of the perks on offer. Not doing so could be a major mistake and cause an unnecessary hit to your personal finances.

Fortunately, all of these errors are easy to avoid now that you know about them, so you won’t end up missing out on perks or costing yourself any more money than necessary throughout 2024.

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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.American Express is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber 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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Homes are still expensive across much of the country. But check out these cities that offer some relief. [[{“value”:”

Many Americans who want to buy a home are having a difficult time. One reason is because there’s a shortage of homes listed for sale. This is due to many current homeowners wanting to keep their interest rates, since many of them locked in rates when they were historically low in the wake of the pandemic.

Even when buyers find a home, house prices have risen so quickly over the past few years that many can’t find a right-sized home in their price range. The good news is that mortgage rates have begun to cool, and some real estate experts estimate that more homes will come on the market this year.

That could be a boon to the housing market and a few cities in particular. Here are some of the most affordable, according to Realtor.com.

1. Toledo, Ohio

If you’re looking for a relatively affordable Midwest city to move to in 2024, Toledo might just be it. Median home prices in the city are 51.6% below the national median.

The city is built along the Maumee River, making it a great location if you love boating and fishing. And if you’re not outdoorsy, Toledo’s public spaces along the water and downtown riverwalk are perfect for scenic strolls.

2. Rochester, New York

If you love the snow and affordable housing, Rochester should be at the top of your list. Median home prices in the city are 41.2% lower than the national median.

Not only are Rochester homes more affordable than many other places in the U.S., but the local economy is thriving, and the unemployment rate in the city is projected to be just 3.6% by the end of this year.

3. Springfield, Massachusetts

Basketball fans and frugal home buyers both have something to love in Springfield. The city is home to the 40,000-square-foot Naismith Memorial Basketball Hall of Fame, honoring the sport’s inventor, Dr. Naismith.

Home buyers looking for a good deal will fall in love with the city’s home prices, with median prices 13.3% below the national median.

4. Worcester, Massachusetts

About an hour outside Boston, Worcester may be a good choice for home buyers who want to stay relatively close to the city — without paying big-city prices. Homes in Worcester are 14.7% above the nation’s median price but 41.8% below the Boston Metropolitan Area.

Residents will love the Hanover Theatre, the Worcester Art Museum, and historic Elm Park, which dates back to 1854. The city’s current economic growth means that unemployment is projected to be slightly below the national average this year.

5. Grand Rapids, Michigan

Located just to the east of Lake Michigan and right along the banks of the Grand River is the city of Grand Rapids. Home buyers will enjoy the city’s Frederik Meijer Gardens & Sculpture Park, Gerald R. Ford Museum, and hiking through over 100 acres of the Calvin Ecosystem Preserve.

Most importantly, potential buyers will find median home listings are 8.2% below the national median.

One crucial step for buying a home right now

In addition to finding an affordable city to move to, home buyers should compare mortgage lenders before purchasing a home. Not all lenders look at your financial situation similarly; one may give better mortgage terms than another.

After saving for a down payment and paying down debts, shopping around for a lender could be one of the most important moves you make before buying a home. Since you’ll be paying your mortgage for many years, finding a lender that will offer you the best interest rate could save you thousands of dollars over the life of the loan.

And if you shop around and find that several lenders are offering you the same interest rate, at least you’ll know you did everything to get the best deal.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Chris Neiger 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 a good time to open a CD. Read on to see why. [[{“value”:”

The Federal Reserve has been battling inflation ever since it started surging in 2021. And since March of 2022, the central bank has raised interest rates 11 times. But at its Jan. 30–31 meeting, the Fed opted to hold interest rates steady due to slowing inflation. And that marks the fourth consecutive meeting in which the Fed is keeping rates status quo.

In some regards, that’s not the best news for consumers, as many were no doubt hoping to see a reduction in the Fed’s benchmark interest rate. Rate cuts have the potential to drive the cost of borrowing down, which is what consumers looking for loans want.

On the other hand, the fact that rate cuts aren’t happening yet is good news for consumers with money in the bank. Once the Fed lowers its benchmark interest rate, savings accounts and certificates of deposit (CDs) are likely to start paying less.

Those rate cuts, however, are likely to arrive at some point in 2024. That’s why I’m looking to open a CD in the coming weeks. And if you’re eager to score a higher interest rate on your money, I suggest you do the same.

Strike while rates are hot

The Fed has long maintained that it prefers to target 2% inflation in the long run. The central bank feels this target is conducive to economic growth and stability.

The most recent Consumer Price Index (an index measuring changes in the cost of common goods and services) showed inflation up 3.4% on an annual basis. That’s a ways off from 2%, but not so far off. As such, it’s not surprising that the Fed opted not to raise interest rates at its January meeting.

But because this is the Fed’s fourth consecutive rate hike pause, at this point, it’s pretty clear that the central bank is done raising rates for now. As such, the rates CDs are paying today may be the best ones consumers will get to lock in all year. So if you have money you can afford to part with for a period of time, now’s a good time to consider a CD.

I’m looking long-term

If you’re interested in opening a CD, your best bet is to check out the rates different banks are offering and see what works best for you. You should know, however, that in most cases, right now, you’ll get a better rate on a shorter-term CD than a longer-term one. And the reason is that banks are aware of potential Fed rate cuts ahead, so they’re likely to offer better rates on shorter-term products.

There’s nothing wrong with opening a six- or 12-month CD if that’s what works best for you. But I intend to focus on longer-term CDs, even if that means having to settle for a lower interest rate.

Once the Fed starts moving forward with rate cuts, CD rates could fall a lot. And I’m not sure how many more opportunities I’ll have to lock in a 5-year CD at a rate that’s as attractive as my options are today. So even though I’m a little nervous to tie up some money for five years, I think it’s a financially sound thing for me to do.

To be clear, a big reason I’m comfortable doing this is that I have a completely separate emergency fund. So any money I put into a 5-year CD is cash I don’t have a particular use for. They’re not the funds I’d need to tackle a home repair or cover bills in the event of job loss.

If you’re considering opening any type of CD, make sure you’re not tying up your emergency fund in that account. Otherwise, I think now’s a really good time to lock in a CD — before rates start to become less and less appealing.

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

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