Money Management

Got a raise that fell short? Here are some options. 

Inflation has been wreaking havoc on a lot of people’s personal finances since 2021. And while things have improved to some degree, living costs remain elevated.

In fact, in December, annual inflation, as measured by the Consumer Price Index, rose 3.4%. It’s not surprising, then, to learn that 40% of Americans were more stressed at the end of 2023 than they were in 2022, according to data from Allianz.

Now one thing that tends to help people keep up with inflation is a pay bump. Seniors on Social Security get an annual cost-of-living adjustment so they have a better chance of keeping up with inflation. And similarly, many companies give out annual cost-of-living raises so their employees can keep up with their bills as they rise.

But according to Allianz, 73% of Americans say that even after a pay increase, their income still isn’t keeping up with inflation. And if that’s the boat you’re in, boosting your earnings with a second job may be your best and most effective solution.

It pays to turn to the gig economy

You could try to cut expenses if your most recent raise isn’t enough to manage your bills. But a lot of your larger expenses may be things you can’t reduce.

If it costs an average of $2,000 to rent a home where you live and you’re only paying $1,500, you probably don’t have much wiggle room on housing. And unless you live somewhere with great public transportation, giving up your car probably isn’t an option, either.

As such, a more effective solution than cutting expenses may be to look into your options for getting a second job. That way, you can potentially not only keep up with your living expenses, but also, perhaps buy yourself some breathing room by boosting your savings account balance.

How to find the right side hustle

If you’re convinced that a second job is the solution to your financial problems, then you’ll want to find the right gig so that it’s sustainable for as long as you need it to be. To do so:

Set an income goal, either on a weekly or monthly basis.Research different gigs to see what the pay looks like. You may not be looking at an hourly rate so much as a per-project or variable rate, so keep that in mind.Think about how many hours a week you can manage to devote to your gig.Think about how much flexibility you need. You may want to favor a job you can do at your own pace, like sign up to be a grocery delivery driver, as opposed to being a server at a restaurant with preset weekly hours.Think about the hobbies you already have and see if any can be monetized, such as playing piano (you could teach others that instrument, or entertain at a fancy local restaurant or club for a few hours a couple nights a week).

It’s not all that surprising to see that even workers who have gotten raises aren’t able to keep up with rising living costs. A side hustle could be your ticket to managing your expenses with less stress. And if you find the right one, you may decide to keep at it even if you eventually snag a promotion at your main job that boosts your paycheck more substantially.

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Over the past few years, I’ve been putting a lot of money into my savings account to accomplish short-term goals. Learn why that’s changing this year. 

In 2022 and 2023, I was putting a ton of money into my savings account. While I was still investing for retirement, most of the rest of my spare cash went into several different high-yield savings accounts.

That will be changing in 2024, and I’ll be putting a whole lot less into my savings. Here’s why I’m shifting my focus and why I’m happy that I won’t be socking away so much cash into my savings account each month.

This is the simple reason I won’t be saving as much this year

There’s a very good reason I’m planning to put less money into a savings account this year: I don’t have as many short- or medium-term goals in 2024 as I did in 2023.

See, money only belongs in a savings account if you are going to need it within the upcoming year or so. If you are not going to need the funds for a few years or more, the cash is better off elsewhere — like a certificate of deposit (CD) for medium-term goals, or a brokerage account for long-term goals.

If you cannot afford to lose money, you cannot put it into a brokerage account and invest in the stock market, because there’s a risk of your investment values going down and not recovering before you need the cash.

And if you can’t make a commitment to keep your money invested for the length of a CD term (which usually ranges from around three months to five years), then you can’t keep your money in a CD or you could face penalties for early withdrawal.

So, despite the fact that both stocks and CDs can often provide a better return on investment than savings accounts do, savings is the right place for money you’ll need soon. And last year, I had a lot of bills I needed money for on a short-term basis. I was saving for a home renovation project that is underway and also saving to buy an RV, both of which I knew I would be tackling in a short time.

Now that my house is being renovated and my RV is in my driveway, I no longer have very many short-term goals. So, I can take the money I was putting into savings for those goals and use it elsewhere — thus putting less cash into savings.

Don’t be afraid to readjust over time

It’s important to consider just what you want to accomplish each year and to make plans for your money accordingly. In some years, this means you may put a lot of money in the bank and less into your brokerage account.

For example, if you’re saving for a home down payment, you may not want to put your retirement investing into overdrive while you’re doing it. Or, if you’re like me and don’t have any short-term goals, you may want to devote your extra income to investing for your senior years or for other long-range goals.

The important thing is to choose the place to put your funds that aligns with your stage of life — and to make sure you’re making conscious choices about the best accounts that meet your goals in terms of risk as well as accessibility. If you do that, you should be in good shape, even if you put less into savings in 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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New to Aldi? Here’s how to reap the most savings. 

The first time I walked into Aldi, I was thrown for a bit of a loop. Not only was I unfamiliar with the supermarket’s layout — a byproduct of going to any new grocery store for the first time — but I was also a bit surprised at the limited selection on some of the shelves.

Even though I don’t shop at Aldi a whole lot these days, I still visit every so often — especially since my local Aldi happens to be adjacent to Costco, which is a store I tend to frequent. And as such, I’ve learned a few tricks that allow me to enjoy a nice amount of savings. If you’re new to Aldi, here are some tips for navigating the store and eking out savings yourself.

1. Don’t get hung up on specific brands

Don’t expect to see too many of the brands you know and love on Aldi’s shelves. The company says itself that more than 90% of the products it stocks are Aldi exclusives — meaning, lesser-known brands the typical consumer hasn’t heard of.

If you do see a brand you recognize at Aldi, compare the price to its lesser-known counterpart. Chances are, you’ll spend less on a brand you don’t know anything about.

Now, if you’re particular about certain items, this strategy may not work out well. But for things like pasta, chances are, you’ll be fine to bring home whatever brand Aldi is carrying that week.

2. Don’t be lured by the snack aisle

Like your typical supermarket, Aldi has a snack aisle. The main difference, though, is that a lot of the brands you’ll see will be those of the lesser-known variety.

Because Aldi doesn’t tend to have the largest selection, though, you may be better off buying snacks at a more traditional supermarket. You may find that a sale at your local grocery store leaves you paying less for a given snack item than Aldi’s already-low price. And at your local grocery store, you can pick up a brand you’re familiar with.

In my household, this is important, because if I don’t bring home snacks my kids have already approved, they won’t eat them. And while one could argue that less snacking is a good thing, it’s not when your kids have three hours of after-school activities before dinnertime and they get hangry midway through.

3. Always check out the middle section for limited-time deals

Aldi has a special section in the middle of the store with limited-time buys. Often, these are seasonal items. For example, in December, my local Aldi had things like Christmas candy in that aisle.

That middle section isn’t necessarily a clearance section — rather, it’s an area to find special goods that may not be available in the store a few weeks later. But given Aldi’s competitive prices, it’s worth checking it out. Plus, seasonal items that don’t sell out are often discounted after the fact. And that’s really a good time to save more.

Spending less money during food shopping could work wonders for your financial situation. Hopefully, these tips will help you make the most of your Aldi shopping experience, especially if you’re a newbie like I was not so long ago.

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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 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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Love the outdoors? A trip to a national park could be a great bet. And on some days, you won’t even pay. Find out what you need to know. 

Many people bank their credit card points in order to pull off a fabulous vacation. And while you could save up for a stay at a luxury resort in the Caribbean or visit one of the country’s many theme parks, if you’re the outdoorsy type who loves hiking, nature, and great scenery, then a trip to a national park could be a great bet.

The U.S. national parks system consists of more than 400 locations. Of those, 109 parks charge an admission fee. But there are certain times of the year when you can visit a national park without having to spend any money at all.

When you can get into a national park for free

In 2024, national parks are free on these dates:

Jan. 15: Martin Luther King, Jr. DayApril 20: The first day of National Park WeekJune 19: Juneteenth National Independence DayAug. 4: The anniversary of the Great American Outdoors ActSept. 28: National Public Lands DayNov. 11: Veterans Day

To give you an idea of what savings you might reap by visiting on one of these dates, Acadia National Park in Maine currently charges a $35 per-vehicle admission fee. If you ride in by motorcycle, you’ll pay $30. And if you enter the park on foot (not an easy thing to do, since it’s in a remote area and you need to get there somehow), it’s $20. So visiting on June 19, for example, could mean not having to spend whichever fee would apply to you.

There may be a better time to visit a national park

Visiting a national park on one of the above dates might mean having your admission fee waived, but it also might mean having to battle larger crowds. As it is, parking is an issue at some of the more popular parks, with many lots being filled to capacity during peak season and forcing visitors to turn around. So if you want a less packed experience, you may want to visit at a more off-peak time.

In fact, some people will tell you to avoid certain national parks during the summer months because that’s when the crowds tend to intensify. Visiting outside of that window might be more pleasant, though in some parts of the country, the period of fall foliage (which can run from late September to early November) can be just as busy.

Of course, you will need to be mindful of weather-related constraints when planning a trip to a national park. Some parks, like those in the northern part of the country, might technically stay open during the cold weather months, but roads may be impassible at that time.

It could pay to buy a national parks pass

Seeking out free admission to a national park may not be as easy as you’d think. So one idea to consider is buying an annual pass for $80 (or only $20 for seniors!), which will give you access to more than 2,000 federal recreation areas, including all national parks that usually charge an entrance fee.

Although the cost of admission to a national park varies by location, for the most part, you’re looking at a per-vehicle fee of at least $20. So if you visit five parks in a year, the pass pays for itself. For parks that charge $35 to get in, your pass pays for itself in just three visits.

If you’re going to aim to visit multiple national parks this year, plan ahead. In some cases, it can be difficult to secure lodging near a park due to there being a limited amount of it. Booking in advance could help ensure that you don’t get closed out-of-area hotels and campgrounds.

One final way to save

Visiting a national park on a free admission day or buying an annual pass could save you a nice sum of money. But you should also know that if you have a fourth grade student in your family, you can apply for an annual pass that gives you free access to the national parks system from September through August of your child’s fourth grade academic year. And if you have multiple children, you have multiple opportunities to gain free admission to the national park system for a 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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