Money Management

Sometimes you need to invest in quality gear to get good value. These winter tools are worth the investment. 

The whole point of making smart financial choices is that it frees up money to invest in important things. These winter essentials can make a huge difference to your health, safety, and general quality of life.

1. Powered snow shovel or snow thrower

If you have a driveway of any significant size, get a powered snow-moving device of some kind. Seriously. Your back will thank you.

They make some truly fantastic electric snow shovels that’ll tackle smaller drives and walkways. Even on larger areas, they’re still much faster than a manual shovel. You can find units of various battery sizes, some fairly inexpensive, but get the largest battery you can afford. It’ll be worth it when you don’t have to recharge in the middle of the job.

Folks with a larger area to clean can invest in a gas-powered snow thrower. (Electric ones just aren’t there yet.) Maintained well, they can last you for many years.

2. Winter tires

Sure, if you’re in an area with mild winters and only drive in snow a few times a year, a good set of all-season tires will probably do the job. But if you live somewhere with long, snowy winters, switching to proper winter tires can be a huge safety upgrade.

Tests show that winter tires outperform the majority of all-season and all-terrain tires. They not only help you stop better on ice and snow, but they can stop you from spinning out when you take off, as well.

Buying winter tires also means swapping your tires twice a year, and storing your off-season tires. Remember to include those costs in your budget.

3. Generator

A reliable generator is somewhere between a luxury and a requirement, depending on where you live. If you’re in a very cold climate that’s prone to power outages, a generator that can run your heating and cooking appliances could quite literally save your life.

Even in areas with more reliable power, a generator can save the day in an emergency.

Options — and price points — are varied. You can find “generators” that are basically really big electric power banks; these will charge phones, and maybe run some fans or a mini fridge for a few hours. All the way up to gas or solar-powered whole-house generators that can power pretty much everything.

4. Quality (waterproof) winter boots

Winter boots are the epitome of the “boots theory,” which states that buying cheap boots is more expensive in the long run than investing in quality boots. Cheap boots break down quickly and need to be replaced often. Quality boots, well maintained, will last decades.

Moreover, quality boots that fit your feet are better for your foot health (and back and knees). They’ll keep your feet warmer and drier, as well as offer better support.

5. A well-made jacket

Everything I said above about boots? That’s all true about a good jacket, too. Quality jackets last longer, function better, and even tend to be more attractive. Win win win.

Finding deals on winter gear

There is almost always a way to save on gear. Here are just a few to consider.

Wholesale clubs

Whether you have a membership or not, it can be well worth it to check wholesale clubs like Costco and Sam’s Club. Some of their deals are good enough to pay for the membership and then some. They also have fantastic return policies.

Comparison shopping

While my previous point stands, I want to point out that you shouldn’t assume Costco is the cheapest place to make a purchase. And that goes for every other retailer, too.

No retailer is the cheapest every time. No matter what you’re purchasing, always check prices at multiple retailers to ensure you’re really getting a deal.

Rewards credit cards

There are three different ways I use rewards cards to save on big purchases:

Purchase rewards: I use cards with bonus rewards for every purchase I can, and I can usually get at least 3% to 5% cash back (or equivalent). For instance, if I’m splurging on winter boots at a department store, I choose a card that offers “department stores” as a bonus category.Welcome bonuses: If I’m making a four-figure purchase, I open a new credit card first. All other rewards aside, the welcome bonus for a new card can easily be worth $300 or more in and of itself.Issuer portals: Many card issuers offer discount portals with deals from partner retailers. I always check my offers before making big purchases to see if I can get extra rewards or a discount. (Just poke around your bank app for something with “offers” in the name, like Amex Offers, Chase Offers, or Merchant Offers.

Off-season steals

If you don’t need a particular piece of gear right away, the best thing you can do to find steals is wait until the season is (mostly) over. Most retailers will put winter gear on sale toward the end of the season, and you can find some fantastic discounts.

The downside? Selection. Not everything will be discounted — some is simply stored until next year — and what is marked down will likely sell quickly. If there’s a certain model or brand you’re after, keep a close eye on prices so you can strike when the price is right.

I’m a big fan of cutting costs where I can, but I also recognize that some items are worth that big investment. Gear that is going to improve your safety and quality of life is worth it.

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Being misinformed about taxes could hurt you. Read on to learn more. 

The U.S. tax code is a complicated set of rules that the typical person may not be 100% familiar with. And frankly, that’s OK. Unless you’re an accountant or tax professional, you probably don’t need to know every single rule the IRS puts out.

The problem, though, is that there’s a lot of misinformation about the tax code out there and how it works. And if you buy into certain myths, like these, you could end up getting hurt financially.

1. I won’t get audited unless I’m rich

In 2019, the tax audit rate among filers with an income of $50,000 to $500,000 was 0.10%, according to IRS data. Based on this, you might assume that you don’t need to be so careful with your tax return if you’re a lower or moderate earner.

But actually, it may surprise you to learn that the audit rate among filers with an income of $1 to $25,000 is 0.40%. And among filers with an income of $25,000 to $50,000, it’s 0.20%.

Overall, these are all very low rates. But it’s worth noting that the likelihood of being audited increases slightly if your income is on the lower side.

What this means is that it’s important to be honest on your tax return no matter how much income you’re reporting. You may end up more likely to get audited with an income of $20,000 than $400,000.

2. I’m guaranteed to get audited if I itemize on my tax return

When filing a tax return, you could either take the standard deduction or itemize deductions. You might assume that itemizing on your return will open the door to an audit. But that’s not automatically true. And if you don’t claim tax deductions for fear of getting audited, you could lose out on major tax breaks that result in a lot of cash savings.

As long as you itemize legitimate deductions, there’s nothing wrong with going this route. It’s when your deductions start to look iffy that the potential for an audit becomes more real.

So let’s say you’re a freelance copy editor, and you’re deducting the cost of internet service and a laptop you purchased for work purposes. That makes sense given your line of work. But if you start deducting all sorts of trips and travel expenses, that might raise a red flag. The typical freelance editor doesn’t travel to exotic locations to do their job.

3. I don’t have to report small amounts of income

You might assume that the $42 in interest income you earned in your savings account is a small enough amount that you don’t have to report it. The same goes for the one freelance project you did that earned you $620.

But in these situations, you’re likely to get a 1099 form from your bank and client, respectively, summarizing that income. And it’s not just you who’s likely to get one of those forms. The IRS is likely to get a copy as well. And if it has income on record you don’t report, the agency might dig further and penalize you for understating your earnings.

That’s why your best bet is really to report all of the income you earn. The IRS is likely to catch you if you don’t, anyway, so why run the risk?

Falling victim to bad tax information could be a big problem for you — and a costly one. So do your best to avoid buying into these specific myths this tax season — and every other tax season going forward.

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If you want to invest in CDs in 2024, a brokered CD might be a worthwhile investment. Read on to learn why. 

When you think of certificates of deposit (CDs), you might think of the ones offered by banks. But if you have a brokerage account, another type of CD might be available to you — one with potentially greater upside: brokered CDs.

Brokered CDs share many similarities with the best bank CDs. They have term lengths, come with maturity dates, protect your investment with FDIC insurance, and grow your money by an interest rate. But whereas banks only sell the CDs they issue themselves, brokerages buy CDs from dozens of different banks and repackage them for sale. Often the broker buys them in bulk, so it gets a discount, which translates into a higher APY for clients who want to invest in them.

With CD rates likely having already peaked, now is the time to start investing in them. But there is one big reason you might want to choose brokered CDs over bank CDs: You could resell them in the future for potentially big capital gains.

You can sell brokered CDs on a secondary market

Unlike bank CDs, brokered CDs don’t have early withdrawal penalties. Instead, if you want to cash out your CD before maturity, you have to sell it on a secondary market. Depending on the value of your CD at the time of sale, this could translate into a profit (or loss) for you.

For example, a 5-year CD with a 4.75% interest rate might look valuable at a time when the best CDs are paying out at 0.50%. Conversely, if you have a 5-year CD with a 0.50% interest rate, you might have to sacrifice some of your principal if you wanted to sell it at a time when CD rates were above 4.75%.

In general, secondary CD values will fluctuate with ongoing CD rates and changes in the economy. When interest rates start to rise, the value of any outstanding CDs will gradually decline, which could translate into a loss if you were to sell one on a secondary market. Conversely, when interest rates start to fall, some of your outstanding CDs may start to look more valuable, especially if your CD rate is several percentage points above ongoing rates.

That makes today’s brokered CDs an interesting investment opportunity. Though interest rates are still high compared to previous years, it’s unlikely the Federal Reserve will keep them this high for much longer. Already, the rates on many short-term CDs have started to fall, including those on brokered CDs. If there was ever a good time to invest in brokered CDs, it might be now, as you can still lock into a 5% APY on a brokered CD with a decent term.

For a potentially more lucrative investment, I would take a look at brokered CDs with longer terms, like 3 to 20 years. These CDs will not only let you lock into today’s high rates for a longer period, but potentially give you a valuable investment if interest rates fall back to decimals. You would be in a good place if you had a 10-year CD paying out at 4.75% while ongoing CD rates had fallen back to 1.00% or less.

Lock into a high APY before it’s too late

If you’re interested in investing in brokered CDs, the following four brokerages sell them with competitive APYs and varied term lengths:

FidelityCharles SchwabVanguardEdward Jones

To be sure, brokered CDs don’t have unlimited upside potential, like stocks or ETFs. If you invest $10,000 in a 10-year CD with a 4.75% interest rate, you’d earn $475 each year for a total of $4,750 after 10 years. Investors want to make money, too, so you’re unlikely going to sell this CD for, say, $20,000, if the maximum upside is only $4,750.

Even so, investing in brokered CDs could be an interesting strategy for 2024, especially if you’re already interested in buying CDs. You could earn some interest now, then sell your CD for a modest gain. Take a peek at some of the brokerages mentioned above and snatch up some high-yield CDs before this opportunity passes.

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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.Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool recommends Charles Schwab and recommends the following options: short March 2024 $65 puts on Charles Schwab. The Motley Fool has a disclosure policy.

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Days at the airport usually come with some amount of stress and plenty of expense. Learn how you can save on both with this travel perk. 

For many people, travel is an enjoyable and rewarding experience well worth the cost of admission. Time spent in the airport, however, is less of a treat. Long lines, overbooked flights, and weather delays are common experiences when flying. And even if everything goes smoothly, I’d bet that you still experience your share of frustration at the airport.

There’s one perk that I started taking advantage of a few years ago that has significantly improved my travel days, and I didn’t have to pay a cent for it. Here’s what it is, and how you can get it for free, too.

TSA PreCheck and Global Entry makes airport travel smoother

Once travel opened up more broadly after the worst of the pandemic had passed, I decided to sign up for TSA PreCheck and Global Entry. It was a program I’d heard about for years but had never taken the time to pursue, but I’m so glad I finally did.

You probably know the main benefit of TSA PreCheck, which is getting to skip the main security line at the airport and move through a separate line just for TSA PreCheck members. According to its website, 99% of passengers wait for less than 10 minutes, and depending on your airport and the crowds when you travel, it can be even less. Speaking anecdotally, I’ve had plenty of travel days with no wait in the security line at all.

Another great thing about having TSA PreCheck is how much less fussing you need to do while going through security. You can leave your shoes, belt, and light jacket on instead of publicly disrobing in line, and you can leave your laptop and small liquids in your bag rather than digging through your carry-on while angry travelers mutter behind you.

If you plan on traveling internationally, Global Entry is great to have. Membership includes eligibility for TSA PreCheck, so you get all of those benefits, as well as (according to the Global Entry website):

No processing linesNo paperworkAccess to expedited entry benefits in other countriesAvailable at major U.S. airportsReduced wait times

Again speaking from my experience, I’m pretty sure I spend more time walking from the plane to Customs than I do actually waiting and being cleared through Customs.

All this…for free?!

Yep, that’s right. This is no big secret, but I think it’s still worth shouting from the rooftops for those who don’t know about it. Many travel credit cards cover the cost of joining TSA PreCheck and Global Entry for cardholders, so you don’t have to pay anything extra to sign up for the services.

TSA PreCheck alone costs $85 for a five-year membership, while Global Entry (which, remember, includes TSA PreCheck) costs $100 for five years. If you have a credit card that covers the fee, you’ll receive a credit after applying for the program, leaving you to breeze through the airport like the jetsetter you are.

If you already have a travel credit card you love, check the cardholder benefits to see if you can get a TSA PreCheck of Global Entry membership fee waived. And if you’re looking to apply for a new credit card, consider getting one that includes this perk. You’ll save money, time, and your sanity as you speed past other travelers stuck in the slow lane.

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Don’t assume you can’t get a credit card in 2024 because you were told no last year. Read on for ways to turn those rejections into approvals. 

Some people learn the hard way that applying for credit does not automatically mean getting approved. In October 2023, 18.7% of credit card applicants were rejected, according to data from the Federal Reserve Bank of New York. So if you were denied a credit card last year, you’re not alone.

Now, there are several different reasons for a credit card application to get denied. First, perhaps you didn’t meet the issuer’s income- or credit score-related requirements. It could also be that there’s a red flag on your credit report, like too many late payments, that made a given credit card issuer say no.

But either way, you don’t want to fall into the same trap of applying for credit in 2024 only to be denied. So if you were told no in 2023, these simple moves could result in a yes this year.

1. Work on boosting your credit score

Your credit score tells lenders how risky a borrower you are. The higher your score, the more likely you are to pay your bills on time. That’s something credit card issuers want to see. If you can raise your credit score this year, you might have more success when you apply for credit.

You can boost your credit in a few ways, but some moves you may want to focus on include:

Paying all incoming bills on timePaying off existing credit card balances to some degree to lower your credit utilizationChecking your credit report carefully and correcting errors that may be working against you

Once your score improves, though, don’t automatically assume that any credit card you want is a go. Rather, look at the credit score requirements for the card before you apply so you don’t spend the time only to get rejected. (Plus, you don’t want the hard inquiry on your credit report that comes with a credit card application for no good reason, since a hard inquiry can lower your score by a handful of points.)

2. Boost your income

Some credit cards have income-related requirements you may not currently be in a position to meet. Boosting your income could put you in a better position to get approved. So to that end, you have options. You could work toward a promotion at your current job, or you could join the gig economy and earn more money working a second job.

Of course, a boosted income will also make it easier to pay your credit card bills on time. So that’s another perk.

3. Space out your credit card applications

In some cases, you may be told no by a credit card company simply because you’ve recently applied for a few other cards. And in that situation, it may not matter how strong your credit score is or how much money you earn. It may even be that your credit card utilization is low — meaning, you don’t have very large balances outstanding relative to your total credit limit.

Sometimes, lenders get suspicious when consumers ask for too much credit from too many different sources in short order. So if you were denied a credit card in 2023 but applied for two others that same year, try waiting six months from now before applying for a new card and see if it helps.

A credit card denial can be a disappointing and frustrating experience. Take these steps so you don’t have to repeat it this year.

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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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