Money Management

Planning a wedding? Read on for some budgeting pitfalls to avoid. [[{“value”:”

Getting married is a significant milestone. But it also has the potential to be a very expensive one. Research from The Ascent found that the average cost of a wedding was $30,000 in 2022. But your final tab may be much higher or considerably lower, depending on the choices you make.

Because getting married is such a huge financial undertaking, it’s important to come up with a budget for your big day. But here are some budget-related misconceptions that could throw your planning off-course.

1. The cost per guest at a given venue is the same no matter what

In the course of budgeting for a wedding, one of the things you’ll need to nail down first is your venue. And from there, you’ll probably be quoted a price per guest. But there may be different costs you’ll incur, depending on the add-ons you want.

You may, for instance, be quoted $100 per head for a wedding featuring a cocktail hour, sit-down meal, and open bar. But if you want top-shelf liquor, the cost might rise to $120. And if you’re willing to stick to beer and wine only, you may be able to get your cost down to $95 per head. Get all of the details before you get too hung up on a single number.

2. Your wedding will cost the same amount of money within each given season

You may be aware that a wedding held in the spring or summer might cost more than a wintertime affair. But within each season, there may be a difference in cost depending on when you hold your big event. So definitely take the time to explore your options with each venue you talk to.

Some venues, for example, offer up major savings if you hold your wedding on a Thursday night instead of a weekend. If you’re willing to compromise, you might spend thousands less.

3. Choosing an offbeat venue will save you a bundle

Maybe you’re willing to forgo a traditional wedding hall and instead get married in a rented barn. After all, there’s nothing like a nice, rustic atmosphere to make your big day memorable. In fact, you may even be willing to get married in your own backyard if it’s large enough. What it lacks in ambiance, it might make up for in character.

You might assume that these tactics will work wonders for your wedding budget and save you money. But you may be wrong.

Sometimes, renting an offbeat venue will end up costing just as much as paying for a hall when you account for the fact that wedding halls often have relationships with caterers and vendors that result in a discount for you. Plus, if you get married in a remote location, your vendors might charge you for their extra travel time.

Furthermore, while you may be inclined to assume that getting married in your own backyard is apt to be cheaper than renting a hall, it may not be so much cheaper. The reason? Wedding halls have tables, chairs, buffet stations, and other such fixtures you commonly see at an event. Chances are, you don’t have 74 chairs lying around at home. When you add up the cost of having to rent the equipment you need (not to mention a giant tent, since you can’t rule out rain), you may find that you’re not saving nearly as much as expected.

And keep in mind you’ll have multiple options for financing your wedding. You could choose to put the majority of costs on one of the best credit cards for weddings and take advantage of rewards points and intro financing deals. Or you could take out a wedding loan and pay the cost off in set payments over a designated time frame. Whichever route you take, it’s definitely a smart thing to set up a wedding budget in the course of your planning. But be sure to understand the nuances above so you can make smart financial decisions.

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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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The Fed is holding its benchmark interest rate steady. Read on to see why, and how it might impact you financially. [[{“value”:”

Surging inflation has been a problem since 2021, and the Federal Reserve has been working hard to make it more manageable for consumers. To that end, the central bank has raised interest rates 11 times since March 2022.

But at its most recent meeting, the Fed opted to hit pause on its rate hikes. And that marks the fourth consecutive meeting where the central bank has decided to hold rates steady.

A pause in rate hikes could be beneficial to some consumers. But savers might bemoan the fact that rate hikes are, at this point, likely a thing of the past.

Why the Fed paused rates — and what it means

The Federal Reserve does not establish savings account and CD rates for banks. It also doesn’t set interest rates for lenders and credit card companies. Rather, the Fed is tasked with setting the federal funds rate, which is what banks charge each other for overnight borrowing.

When that rate is higher, it costs more for financial institutions to access near-term funding, which is why loan and credit card rates tend to rise. When the Fed’s benchmark interest rate falls, it costs less for institutions to access money, so they tend to impose lower interest rates for loans and credit card balances.

Meanwhile, the Fed’s decision to pause interest rate hikes yet again likely stems from a cooling on the inflation front. In December, the Consumer Price Index, which tracks changes in the cost of goods and services, showed that annual inflation was up 3.4%. Meanwhile, the Fed has long maintained that its optimal annual inflation rate is 2%.

Since 3.4% is not so far off, a rate hike wasn’t appropriate at this time. On the other hand, since there’s still a bit of a gap between 3.4% and 2%, the Fed felt that it would be premature to start cutting rates. As such, the central bank opted to simply keep things at the status quo.

What should you do in light of the Fed’s decision?

If you’re a consumer looking to borrow, and your need for money isn’t immediate, then one of the best things to do is wait to sign a personal loan. If you can hold off until rate cuts arrive, you might manage to lock in a lower interest rate, resulting in lower monthly payments.

Meanwhile, if you owe money on a credit card, it’s always a good idea to try to pay it off as quickly as possible to avoid racking up additional interest. However, the fact that rate hikes were paused means that the interest rate on your credit card balance might hold relatively steady.

Now, if you have money in savings, you should know that the interest you’re earning on your cash today may not be the interest you’re able to earn a few months down the line. So if you have money in your savings account you don’t need for emergency fund purposes, you may want to move at least some of it into a CD.

CD rates are pretty attractive right now. And because the Fed has held its benchmark interest steady for four consecutive meetings, it tells us that we’re unlikely to see additional rate hikes in 2024.

This means that CD rates are unlikely to increase from where they are today. If anything, they could drop quite a bit during the year. So now could be a good time to open a CD if you have money to spare.

All told, the Fed’s decision isn’t particularly surprising. Given where inflation is now, many experts anticipated that the central bank wouldn’t raise interest rates, but that rate cuts would have to wait. Things could change in the coming months, though, so be sure to keep tabs on the Fed’s decisions, as they have the potential to impact your finances in different ways.

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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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Want to buy a new (or used) EV in 2024? Your local dealership can help you get an instant discount from EV tax credits. See if your car qualifies. [[{“value”:”

If you’re thinking about buying an electric vehicle, there’s a new rule in 2024 that makes it easier for you to save money. Starting from Jan. 1, 2024, electric vehicle (EV) buyers can get their EV tax credit applied at the point of sale by the dealership.

Let’s look at what this new rule for EV tax credits means and how it could help people save money on buying EVs.

New 2024 rule: Get EV tax credits at the dealership

The federal government, as part of the Inflation Reduction Act, is offering EV tax credits for new or pre-owned electric vehicles. Depending on which car you buy, your new EV purchase could qualify for a $7,500 tax credit, and a used EV could get you a tax credit of up to $4,000 (or 30% of the sale price, whichever is less).

But unlike some tax credits, where you have to wait until you file your taxes to see the money, the EV tax credit is now — in one important way — easier to get. According to a new IRS rule, as of Jan. 1, 2024, the EV tax credit (“Clean Vehicle Tax Credit”) must be approved and initiated at the time of sale of the vehicle. That means you can get your EV tax credit immediately upon buying your car, kind of like an instant rebate.

This new IRS rule makes it so much easier to get the EV tax credit because the dealer will file paperwork showing which tax credit your EV qualifies for, and you don’t have to wait until you file taxes. The EV tax credit is applied to the price of your car purchase. And the dealership will help you understand which cars qualify for what amount of tax credits — because the dealership has to sign up with the IRS and process the paperwork.

How EV tax credits work for new vehicles

Some of the EV tax credits can be complicated, especially for new EVs. As of 2024, not many new EVs qualify for the full $7,500 tax credit because that credit is only available for vehicles that had final assembly in North America and had battery materials sourced from the U.S. or certain U.S. trade partner countries. The car must have a maximum MSRP of

$80,000 for pickup trucks, SUVs, and vans$55,000 for other electric vehicles

And your income (modified adjusted gross income) must be a maximum of $300,000 for married couples filing jointly, $225,000 for heads of households, and $150,000 for all other filers.

If you’re confused about which cars qualify for a new EV tax credit, this new rule about instant tax credits at the dealership could help you because it’s in the dealer’s best interest to help you get the right amount of EV tax credit. And some car companies are offering generous dealer discounts that match the EV tax credit, even if their cars don’t qualify. Since new EVs might have more expensive car insurance, getting a bigger discount on your new EV can be a good move for your finances.

For example, as of mid-January 2024, several automakers like Cadillac, Hyundai, and Kia were offering special incentives and discounts of up to $7,500 per electric vehicle. Even if your chosen EV doesn’t qualify for the new EV tax credit, the car manufacturer or your local dealer might lower its prices to match it.

How EV tax credits work for pre-owned vehicles

The EV tax credit for used (pre-owned) cars is lower than the $7,500 limit for new EVs, but it might be easier to get and simpler to understand. To get a tax credit on a used EV, it doesn’t matter where the car was made or where the battery parts came from. Instead, your ability to qualify for a used EV tax credit depends on:

Your income (modified adjusted gross income): Your income must be $150,000 or less for married filing jointly, $112,500 for heads of household, or $75,000 or less for other filers.Price of the car: The EV sale price must be $25,000 or less.Make and model year: Your EV must be at least two years older than the current year. So the newest EVs that currently qualify are from model year 2022.

The used EV tax credit is for a maximum of $4,000 or 30% of the used EV’s sale price, whichever is less. So if your used EV has a sale price of $10,000, you could get a $3,000 tax credit. If the used EV’s sales price is $16,000, you could only get a $4,000 tax credit. These tax credits can help reduce the cost of ownership of an EV — but make sure to get price quotes for insurance before committing.

Bottom line: Getting your EV tax credit as an instant discount at the dealership could be a valuable benefit when buying a new or pre-owned EV in 2024. It’s more convenient now to get EV tax credits, even if not every vehicle qualifies. And some car companies are offering generous discounts on EVs that may match the new EV tax credit. Whether it’s a tax credit or a big discount, the prices of EVs could be coming down in 2024. Before you buy an EV, check for price quotes from the best car insurance companies.

Our best car insurance companies for 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.The Motley Fool has a disclosure policy.

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There’s AI for almost everything these days, including finding the best deals for your shopping. Find out how AI can help you save money. [[{“value”:”

I’ll admit to a certain skepticism about AI and bargain hunting. I have tried letting it write poetry for me, generate complaint letters in Spanish, and make presentations. But shopping? I have spent years honing my bargain-hunting skills both online and offline. I’d cheerfully give any robot — even one that’s swallowed half the internet — a run for their money.

That said, stalking products online consumes a lot of time. If AI can help, that’s time I can spend on other things. Here are some of the ways AI makes bargain hunting more straightforward.

1. It makes research easier

If you’ve ever bought something on sale only to find the product isn’t quite what you wanted, you’re not alone. Sometimes it is hard to know what questions to ask, or what reviews to trust. This is one part of bargain hunting where AI can make a world of difference. After all, it isn’t a money-saving deal if you wind up spending your hard-earned cash on something that isn’t fit for purpose.

I asked Bard and Bing to help me find the best-value convection microwave oven. Bard came back with a bunch of questions, such as what budget, size, and specific features I wanted. It helped me hone in on what I was looking for. Bing went straight for the money and offered up a range of microwaves, some in stores I wouldn’t have checked on my own.

Having picked a make and model I liked, I asked Bard about customer sentiment. It used people’s reviews to generate a great summary of the pros and cons. This saved me trawling through the comments and its findings matched my research.

On the topic of reviews, check out Fakespot. This AI browser extension weeds out fake reviews and quickly highlights both positive and critical comments. It told me the reviews were mostly reliable, but also that Amazon had altered or removed some reviews from the listing.

Top tip: Before you start shopping, use AI to ask the right questions and whittle down your options. It can save you time and highlight issues you may not have considered.

2. It can find coupons and cash-back opportunities

None of the AI tools told me that credit cards might earn the best rewards on my microwave purchase. Not that I needed telling, since it’s one of the most reliable ways to get cash back on all your shopping. Still, I’d have liked at least one of the robots to speak up.

Bard told me that Amazon had a $20 coupon for my microwave and directed me to other coupon websites that aggregate deals. SimplyCodes — praised as one of the leading AI coupon sites — did not have any offers on microwaves. There were a lot of deals, and if I’d been in the market for a speaker, I’d be laughing as it had a 10% discount at Bang & Olufsen.

PayPal’s coupon site, Honey, came up with a few deals on the convection microwave I was after, including a Walmart deal with 0.5% cashback. I used its droplist function to get notified of any future price reductions. There’s no mention of AI on Honey’s website.

Top tip: Online plugins, whether AI powered or not, can highlight real-time discounts and deals. Even if you don’t find a discount today, these apps will tell you if and when the price falls.

3. Finding the best price

Here’s where AI discount sites stepped up to the plate. Dealspotr — an AI-powered e-commerce site — showed me several places with discounts on Toshiba brands. This included a 30% discount on Toshiba at Kohl’s and a 20% discount with Back Market’s mobile app. However, these didn’t stand up to closer inspection. Neither of them had any Toshiba microwaves for sale.

Bing’s AI fared a little better. I asked it to act as a personal shopper and find me the best price on Toshiba convection microwaves. It gave me four options with prices and summaries for each. That said, all roads ultimately lead back to Amazon, where I’d already been tracking prices with no robot assistance.

It was AI-powered payment and shopping app Klarna that stood out. It found various Toshiba convection microwaves at different price points in different stores. As a bonus, Klarna gives the price history and shipping information for each option. The Klarna app also has a nifty AI snap-and-search function. This lets you take a picture of anything you see and have Klarna find a similar item in shops.

Top tip: Experiment with different discount sites and apps to find the ones that suit you. Don’t just assume AI is always best; treat it as a supplemental source of information.

A word to the wise

Be aware that some AI browser extensions want you to sign up for ChatGPT Plus — the paid version of ChatGPT. That’s one thing if you’ll use ChatGPT Plus for other things. But at $20 a month, it’s going to have to find a lot of bargains to make that cost worthwhile.

All in all, I was reluctantly impressed by the AI shopping assistants I tried — not least because the focused search reduced the temptation to impulse buy other products. Even so, it is early days, and questions remain over cost, privacy, and accuracy. Double-check the information you get and be prepared to do a little old-fashioned leg work as well.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Amazon, PayPal, and Walmart. The Motley Fool recommends the following options: short March 2024 $67.50 calls on PayPal. The Motley Fool has a disclosure policy.

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