Money Management

Buying a fixer upper is one of the greatest things I’ve ever done. Keep reading to learn why it’s worked out so well for me. [[{“value”:”

Growing up, my father always chose homes that were projects. I didn’t ever really live in a house that was finished until really close to time to sell it. For me, that was a normal life, so when it came time to buy my own homes, I have consistently chosen houses that needed some work, even if it was small — it’s a bit of a family tradition.

I bought my current home, a fixer upper that was literally abandoned for four years, with my ex-husband in 2015, and I’m still working on it now. I don’t regret a moment that I’ve owned this decrepit old girl. Fixer uppers aren’t for everyone, but if you’re considering a fixer-upper home, here are some reasons to go forward boldly, and without regrets.

1. A small mortgage payment

In this age of $400,000 average home prices, I’m embarrassed to say how much my mortgage is in this public space, but it’s far less than a car payment would be for most Americans. It is so small because I spend a lot of money on materials, on repairs, on days off working on the house, and on surprise problems I could have literally never anticipated, even with a decade of experience in the real estate industry.

This house was alarmingly cheap because it had been basically abandoned, but also because no one would look at it due to the frightening electrical system. It had lots of fuse boxes wired together and a less-than-adequate feed from the power company, which had to be fixed immediately. For someone who is cash poor, this is a problem that can’t be solved, because homeowners insurance required it to be brought up to snuff within 60 days or my insurance policy would be terminated.

2. I can add value

You hear about value-added real estate in the commercial and multi-family spaces, but less often in residential markets. This is because most houses that regular people buy are already ready to go, they’ve got paint on the walls, the floors are all nice, and there’s not a general sense of chaos when you walk inside.

A fixer-upper has little of the good and all of the chaos, until you start to tame it. That could mean an intensive clean-up, lots of paint, and some basic maintenance, or it could mean fixing ceilings, walls, and floors. But in any case, every project you do in a fixer-upper home means you’re adding value. You replace the windows? Not only are you better insulated, you’re increasing your financial potential. New kitchen counter? That’s a little scoop of equity right there.

The more value you add, the more value you can add, since your equity will start to outpace your mortgage pretty quickly, allowing for cool stuff like second mortgages or HELOCs to fund bigger projects.

3. I live in an enormous puzzle

Some people like to get up every day and float along their lives with no challenges and no worries. I’m not that person. I like a little creative challenge, I like to have to be resourceful and find the right pieces and parts — and with a fixer-upper home from 1949, I have to do all of that just to keep my project going.

I’ve sourced cool sinks from Facebook Marketplace, ordered period appropriate hardware from eBay, and solved design problems created by previous owners by applying lessons learned from across social media, YouTube, and even interior design books. Living in an enormous puzzle can be trying at times, and sometimes you’re just…done.

But ultimately, it’s an incredible reward as you work out the specific quirks of your home and learn more about it with every project you tackle.

4. I’m part of something bigger than myself

I’ve never been a very religious person, and I don’t do team sports, so when it comes to joining in on something bigger than myself, I don’t have a ton of options. But this house is part of an older neighborhood that’s undergoing revitalization in all its colorful forms, and I’m honored to be a part of that. I can help my neighbors by simply helping myself, and we can trade solutions to our own puzzles, as well as the names of professionals who have helped us along the way.

It’s quite a thing to be part of something bigger than yourself, and it also helps with adding value. If your house is getting nicer and your neighborhood is getting nicer, well, everybody really wins, don’t they?

A fixer-upper can be a rewarding experience

If you’re looking at homes today, and you’ve got a lot of patience, an interest in the biggest puzzles a homeowner can solve, and a bit more budget than sense, a fixer upper might be the solution to your abundance of energy and time, with the right mortgage loan. A house you can live in, but still needs considerable upgrading, can be a very rewarding project, emotionally, intellectually, and financially.

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A startling number of Americans have no money saved. Follow these simple tips to get your savings started or give them a boost. [[{“value”:”

Not having enough in your savings is a serious financial issue. It’s also a common one. One-third (33%) of Americans have no savings at all, according to a report by Ramsey Solutions. The report also found that nearly half (48%) of Americans couldn’t cover expenses for 90 days if they lost their income.

If you’re in this position, it’s important to get into the habit of saving money. Here are a few easy ways to get started.

1. See how much you can afford to save

One of the mistakes people make is being reactive about their savings. They wait until the end of the month and see how much money they have left. More often than not, it’s $0.

Be proactive about your savings. Instead of waiting to see how much money you have left over, decide how much you can afford to save. Send that money to your savings account first each month, before you spend anything. This is known as paying yourself first, and it’s a great way to get into the habit of saving.

Ideally, you’ll quickly figure out an amount that works for you. That can be $100, $500, $1,000, or any other amount you want. What if you don’t have any extra money to save? Here’s what you can do:

Go over your recent spending and look for bills you can cut. Maybe you’re spending more at restaurants than you realize, or you have some subscription services you’re not using.Use a budgeting app. These can help with reviewing your spending and finding places to cut back.Look for ways to boost your income. If money’s tight, your best option may be to earn more. See if there are opportunities to get a promotion at work, or consider adding a side hustle to bring in extra cash.

2. Open a high-yield savings account

You need a place to store the money you save. If you already have a savings account, you might assume that you’re set. And you could be, but make sure to check your account’s annual percentage yield (APY).

Most of the big banks and brick-and-mortar banks have minuscule rates. The average rate is just 0.47%. Some big banks, including Bank of America and Chase, have accounts that pay 0.01% — next to nothing.

High-yield savings accounts, on the other hand, are currently paying out 4% to 5% or more. That’s a huge difference, but few people take advantage. Only 31% of Americans have a savings account paying 4% or more, according to savings research by The Motley Fool Ascent.

If you don’t have one already, open a high-yield savings account right away. You’ll earn more back on your savings. Even if you don’t have anything saved yet, you will eventually. And when you know you’re getting a high interest rate, it motivates you to save more.

3. Make saving automatic

As mentioned above, it’s good to be proactive about saving and pay yourself first every month. You can do that yourself, by manually transferring money from your checking account to your savings account. But it’s better to make it automatic.

Most quality bank accounts let you set up automatic transfers on whatever schedule you want. So instead of deciding that you’ll send $500 to your savings every month after you get paid, set up an automatic $500 transfer.

There are a few advantages to saving this way. It ensures you make a habit of saving money — you won’t have any months where you forget to save because it’s happening automatically. You also save time. That may only be a few minutes a month, but it’s still time you don’t need to spend logging into your bank account and transferring money.

Don’t get down on yourself if you have nothing saved yet. Everyone starts somewhere, and as the data shows, lots of people are in the same situation. What’s important is making saving part of your financial routine. When you do it consistently, you’ll be on track to reach your savings goals.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and JPMorgan Chase. The Motley Fool has a disclosure policy.

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You can dispute credit card transactions and get your money back in some situations. Learn about the valid reasons to dispute a charge on your credit card. [[{“value”:”

A credit card perk that doesn’t get talked about much is consumer protection. If you have a problem with a transaction, you’re not stuck hoping the merchant gives you a refund. You can file a credit card dispute with your card issuer. The issuer will put a temporary credit for that charge on your account while it investigates. If the investigation ends in your favor, that temporary credit becomes permanent.

Disputes are an option with all credit cards, from the most basic to the best credit cards on the market. But you can’t dispute anything and everything. To get your money back, there needs to be a valid reason behind your dispute.

1. It’s fraud

Fraud is always a valid reason to dispute a credit card charge. Legally, cardholders are liable for up to $50 in unauthorized transactions. But all the major card issuers have zero-liability policies, meaning if it’s credit card fraud, you’re not liable for anything. When you report it, your card issuer will refund the charge and send you a replacement credit card in the mail.

2. You weren’t able to work it out with the merchant

Credit card companies require that you contact the merchant before disputing a transaction. The only exception is fraud, which you can and should dispute immediately. For everything else, contact the merchant first to see if you can resolve the issue. If not, then you can proceed with a dispute.

Keep a record of when you contacted the merchant and what the result was. If you called, make some quick notes about it. If you emailed, save the email chain.

3. You were charged an incorrect amount

When there’s a billing error that the merchant won’t fix, you can dispute it. You don’t need to dispute the entire amount — credit card companies let you file a partial dispute. For example, if your bill was $90, but you were charged $120, you can dispute $30. Upload your receipt to your credit card company as evidence, and it should be a cut-and-dry case. You can also file a dispute if you were double charged for a purchase.

4. You’re still getting charged for a service you canceled

This is one of the more common reasons people need to file disputes. Sometimes you cancel a service, but the merchant keeps on billing you. Maybe it’s a gym where you ended your contract or a meal delivery service you’re no longer using.

You should always request a cancellation confirmation so you have evidence if you ever run into this problem. Also, make sure to check how much notice is required when canceling a service. Some contracts require a 30-day notice, which means if you cancel 15 days before your next billing date, you’ll still be charged that next payment. You’re unlikely to win a dispute in this situation because the merchant has the right to charge you under the terms of the contract.

5. Your order wasn’t delivered

Online shopping is great, until that order you were excited about doesn’t show up. Most companies that ship products have had this happen before, so you can often contact the merchant to get a free replacement order sent out.

But this doesn’t always work. If the tracking says the order was delivered, the merchant may argue that it fulfilled the order. It’s frustrating, and you can file a dispute, although it can go either way. Regardless, it’s worth a shot to get a refund.

6. You had a quality issue with a product or service

When you don’t get the product or service you paid for, you’re entitled to a refund. For example, if an item you order is nothing like the pictures online, you could dispute that. If you pay a landscaper, and they do a terrible job, that’s also something you can dispute.

With quality issues, get as much evidence as possible to support your case. A picture is worth a thousand words — and could be what gets a dispute closed in your favor.

7. You returned the purchase

After you make a return, refunds don’t happen instantly. They normally process within five to seven business days. But if you’ve been waiting for a refund, and the merchant hasn’t been helpful, you can file a dispute to make sure you get your money back.

Keep in mind that you need to follow the merchant’s refund policy. If you had 30 days to make a return and you waited until day 60, you probably won’t win a dispute. But if your credit card has return protection, you may be able to file a claim and get a refund through that.

When you make sure you have a valid reason before filing a dispute, you’re more likely to win it. If you need to dispute a charge on your credit card, you can do so online or by calling your card issuer.

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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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Saving for emergencies is a smart money move. One writer plans to continue building her emergency fund in 2024. Find out why she’s not done saving. [[{“value”:”

Saving for emergencies is one of my financial goals. For over a year, I’ve been working hard to boost my emergency savings fund while tackling other goals, like contributing to my IRA accounts. I have a solid stash of cash in my savings account, but I want to save even more in 2024. I’ll explain why I plan to continue contributing money to my emergency fund.

I want to have enough money to cover my family’s bills for a year

One life change can significantly impact your finances. Job loss or a severe illness are two life changes that can impact your bank account. I want to ensure my husband and I are prepared for whatever life throws our way. I can prepare by setting aside money in my savings account.

I’ve been building my emergency fund for a while now, but I’ve also been saving for other needs. I have enough emergency savings to pay our household bills for seven months without making significant changes in reducing our spending. While that’s a great start, I have more work to do.

This year, I plan to continue building my emergency fund until I have enough to cover 12 months of living expenses. If something serious happens, the savings will buy us time to strategize how to handle the situation. We won’t have the added stress of worrying about whether we can afford our bills.

I can stretch those savings beyond 12 months by reviewing our budget and reducing our spending if needed. But I’m setting my savings goal based on our current spending to allow extra wiggle room. Once I reach this goal, I can put more income toward other financial goals.

How much should you save for emergencies?

If you’re working on building your emergency savings, that’s great news. You’re already well on your way toward protecting yourself financially in case unanticipated bills come your way.

Wondering how much you should save? No set amount of money is ideal for every situation.

While many experts suggest saving at least three to six months’ worth of expenses, you must decide how much savings is comfortable for you and your family.

To decide on a savings goal, consider the total cost of your monthly expenses. Then, determine how many months’ expenses would make you feel more at ease financially.

Some may find a six-month stash is ideal, while others may feel better having more cash in the bank. Remember that it’s OK to set a big savings goal and work at it slowly. Any action you take to reach your goal is progress — even small steps count.

Automation makes saving stress free

If you want to save money this year, here’s a tip that may help — automate your savings. When you rely on making manual contributions, it’s easy to get forgetful and could result in you saving less than you intended.

Automation can help because it takes the work and stress out of saving. You can easily set up automatic transfers from one bank account to another by logging into your online account through your bank’s mobile app or website.

Consider opening a high-yield savings account and stashing your cash there so you earn interest while your money sits in the bank. Looking for more money tips? Check out our personal finance resources.

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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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Investing well is all about building the right habits. Discover the most important habits of successful investors so you know what to do. [[{“value”:”

If you’ve started investing, or you’re planning to start soon, it’s one of the best money moves you’ll ever make. Investing is a powerful way to build wealth — but your results will depend on how you invest. Successful investors tend to follow several important habits. By taking the same approach, you’ll get better results from your portfolio.

1. They invest in what they understand

Legendary investor Warren Buffett says to never invest in a business you don’t understand, and it’s sound advice. You don’t need to be an expert on every facet of the business. But before you invest in anything, you should research it and be able to explain what it is.

The same is true with things like index funds, which are an easier and better option for most investors. If you’re going to invest in one, make sure you understand what that fund invests in. For example, I invest in a total stock market fund. I know by investing in that, I get exposure to the entire U.S. stock market.

Don’t invest in companies on a whim, or based on a tip from an acquaintance or on social media. Successful investors always do their own research before committing their money.

2. They buy and hold

Investing is simpler than a lot of people realize. All you need to do is:

Pick quality investments that you expect to grow in value.Invest your money in them.Hold your investments for at least five to 10 years.

The reason the buy-and-hold strategy works so well is because the stock market has historically grown over long periods of time. From year to year, it can be volatile. But if you zoom out, the average stock market return is about 10% per year.

Investors who frequently buy and sell stocks often lose money because it’s impossible to time the market. Investors who buy and hold don’t need to worry about what happens in the short term because they’re investing for the long haul.

3. They invest on a regular basis

You can make money off a single investment. Let’s say you invest $10,000 in a fund that tracks the stock market, and it grows by 8% per year. After 30 years, you’ll have $100,627 — certainly nothing to complain about.

But the most successful investors do it consistently and turbocharge their results. Let’s say in addition to that $10,000 investment, you also decide to put in $500 per month. After 30 years, now you end up with $780,326.

Don’t just invest once, or whenever you feel like it. Decide how much you can afford to invest per month and make it part of your routine. With many online stock brokers, you can set up automatic investments so you don’t need to remember to do it.

4. They manage risk well

Risk is part of investing, but the best investors are careful not to take on too much of it. Here’s how to manage risk with your portfolio:

Keep most or all of your portfolio in stocks and bonds. Stocks are more volatile, but as explained earlier, they generally do well over long periods of time. Bonds don’t provide the same return as stocks, but they’re low risk. It’s recommended that you keep most of your portfolio (90% or more) in stocks while you’re young, and shift some of that to bonds as you get closer to retirement.Build a diversified portfolio. Don’t put all your money in a small number of companies. A diversified portfolio has at least 25 stocks across a variety of industries (tech, healthcare, energy, etc.). Or, you can buy index funds — these invest in a large number of companies for you.Avoid high-risk investments. If it’s high risk and supposedly high reward, watch out. Examples include futures, options trading, and cryptocurrencies. If you want to dabble in high-risk investments, use no more than 5% to 10% of your portfolio for that.

5. They’re responsible with their finances

Investments are one part of personal finance. They’re a very important part, but they’re not the only thing you should focus on. Successful investors know that if they’re not in a stable financial position, that can negatively affect their investments.

For example, if you put all your money in investments and neglect an emergency fund, you’ll be unprepared for emergencies. When an unexpected bill comes up, you might need to sell your investments to pay for it.

In addition to investing, it’s also important that you:

Build an emergency fund: Aim for at least three to six months of living expenses.Pay off credit card debt: Credit cards have an average interest rate of over 20%. That’s more than you can reasonably expect to gain from any investment, so if you have credit card debt, paying it off should be your priority.Have a plan for your money: Make sure you have savings and investing goals, such as saving $500 and investing $500 every month.

These five habits will set you up for success as an investor. It doesn’t happen overnight, but if you stick with it, you’ll be well on your way to long-term wealth.

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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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