Money Management

Reducing heating costs doesn’t need to involve a lot of monetary investment. These cheap hacks can have a high-dollar impact. 

Heating costs can quickly eat up your budget in winter. But there are ways you can keep costs low without suffering from a cold house. These cheap (or free) hacks can help you keep warm without increasing your heating bill and impacting your personal finances.

1. Seal up leaky windows and doors

The seals around your doors and windows can degrade or warp over time, letting hot air escape and creating drafts. Applying fresh weatherstripping can help seal those gaps, stopping your heat from leaking out.

You can buy basic weatherstripping from most big box stores for less than $0.50 a foot. More stubborn windows can be sealed with plastic sheeting; these kits cost $10 to $15 and can usually seal multiple windows.

2. Turn on your ceiling fan

It may seem a little counterintuitive, but ceiling fans can actually help distribute the heat in your house and make you feel warmer. You just need to make sure it’s spinning the correct direction. That’s because warm air rises.

In the winter, you should set your ceiling fan blades to spin clockwise at a low speed when you’re in the room. This will help pull the cooler air up toward the ceiling and better distribute the warm air through your house.

The direction of your fan spin can typically be changed with a switch near the motor. Don’t forget to change the spin direction back in summer!

3. Move your body

Physical exercise not only gets your blood flowing — which can help warm up extremities like hands and feet — but it also increases your core temperature, making you feel much warmer overall.

You don’t need a full home gym to get these benefits, either. Anything that gets you moving can make you feel warmer.

4. Wear more layers

Having proper layers is the best way to stay warm in the cold, and this applies to staying inside as much as it does when we go out. Putting on a good base layer that sits close to the skin can help insulate your core.

A warm sweater, cozy socks, and even a soft beanie can add even more insulation, keeping all of that body heat trapped where it can do its job of keeping you toasty warm.

5. Use those throws

Believe it or not, those decorative throw blankets we all hang over the back of the sofa can actually be used to keep warm! (And if they can’t, consider a better blanket.)

In all seriousness, though, don’t underestimate how much heat you can keep just by tucking a blanket on your lap while you’re lounging on the sofa or even while working at your desk. It doesn’t have to be a thick blanket, either. Like layering on your body, layering two thinner blankets is actually more effective than using a single, thicker blanket.

6. Change your furnace filter

A dirty furnace filter makes it harder for air to flow. This means your furnace has to work harder to produce the same results. The EPA recommends changing your filter at least every three months, or sooner if it gets dirty faster.

You don’t need a top-of-the-line filter, either. While higher-end HVAC filters can catch finer particles, a basic $5 filter will do a perfectly acceptable job of keeping debris out of your furnace and air conditioning systems. And a clean $5 filter is better than a dirty filter of any price.

Make sure you turn off your HVAC before removing the filter. Never run your furnace or air conditioner without the filter in place.

7. Program your thermostat

Setting your thermostat to actually follow your schedule can have a drastic impact on your heating costs. Make sure you’re lowering the temperature while you’re out — you definitely don’t need to keep the house toasty warm all day while you’re in the office, for instance — and at night while you’re tucked away in bed.

If you don’t currently have a programmable thermostat, consider an upgrade. You can grab a basic programmable model for less than $30 from most big box stores. If you’re willing to spend a little more, consider a smart thermostat that can offer even more control. Some power companies may even offer rebates for upgrading to a smart thermostat.

8. Adjust your window coverings

Thick curtains and drapes can help keep out drafts in the winter, but they may also be blocking that wonderful, warming sunlight. Open your blinds and curtains during the day when the sun is shining in — this goes double for south-facing windows! — then close them again before the sun sets.

Don’t have curtains? Consider adding some. Prices will vary a lot with quality and design, but you can get basic curtains for $10 per set, or energy-efficient blackout curtains for about $10 per panel.

9. Get a rewards credit card

Using rewards credit cards is my go-to way to save on pretty much anything, utilities included. I earned more than $180 in cash back last year just from using my U.S. Bank Cash+® Visa Signature® Card to pay my utility bills. The card has no annual fee, so it doesn’t even cost me anything to keep it in my wallet.

There are two things to watch out for here. One, make sure you pay in full and on time every month to avoid interest fees. And two, some utility companies may charge you a convenience or service fee for using a credit card. Make sure you’re earning more in rewards than the fee is costing you.

There’s a lot you can do to help reduce your heating costs, and many moves are cheap — if not free. Ideally, some of these tips can help you save a bit more this winter.

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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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends U.S. Bancorp and Visa. The Motley Fool recommends Flow. The Motley Fool has a disclosure policy.

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Auto insurance can be quite expensive. One simple adjustment could leave you paying less. Read on to find out what it is. 

Between lingering inflation and the generally high cost of being a functional adult, many people are finding themselves squeezed financially these days. And if you’re in that boat, you may want to do what you can to spend less on various expenses this year.

Of course, some expenses aren’t so easy to reduce. If you’re in the midst of a 12-month apartment lease that has you on the hook for a $1,500 monthly payment, you’re probably stuck paying that much rent until your lease is up. But there are some expenses you may be able to slash in the coming year.

Planning out meals and buying food in bulk strategically could help you spend less on groceries. And being more mindful of usage could result in lower utility bills.

If you own a car, auto insurance may be a larger expense of yours this year. But one strategic move could leave you paying a lot less for it.

Only pay for the auto coverage you need

Forbes Advisor says the average cost of full coverage car insurance is $2,150 in 2024. Of course, the amount you’ll pay will hinge on a variety of factors. These include your location, the type of vehicle you have, and your personal driving history.

But there’s another factor that could influence the amount of money you pay for auto insurance — the extent to which you drive your car. And if you don’t use your vehicle very often, then there’s a key change to your auto insurance you may want to consider.

A number of car insurance companies these days offer pay-per-mile policies. And while these policies usually aren’t cost-effective for people who drive frequently, if you’re in the opposite boat, then you may want to consider pricing out one of these policies and making a switch.

These days, a lot of people are working remotely on a full-time basis. If you don’t commute to work, and you really only use your vehicle for occasional errands and social plans, then it could pay to get a quote from your insurer — as well as other insurers — to see what a pay-per-mile policy will cost you. From there, you can try to estimate your annual mileage to see if this sort of policy makes financial sense.

Of course, the one drawback to getting this sort of policy is that you might feel stressed about using your car for unplanned purposes. Let’s say a friend calls and asks for a ride home from the airport. With a pay-per-mile policy, you might worry about driving your costs up by doing your buddy that favor.

But all told, if your car mostly sits parked in your driveway and you really don’t drive too often, then it at least pays to get some quotes and see how much savings a pay-per-mile policy could result in.

Other ways to lower your car insurance costs

You may decide that a pay-per-mile auto insurance policy isn’t right for you — either because you drive too much or you simply don’t want the stress. In that case, you can still take other steps to save on car insurance, such as seeking out safe driver discounts or bundling with an existing homeowners policy.

But if you know you don’t do a lot of driving, it pays to at least look into a pay-per-mile policy. You may be surprised at how much financial sense it makes.

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Check up on your savings account early this year. There’s a good reason to. Read on to learn more. 

For much of 2022 and 2023, the Federal Reserve had a big inflation problem on its hands. Consumers were getting utterly crushed by stubbornly high living costs, and something had to be done to break that cycle.

That something was a series of interest rate hikes that the Fed implemented in 2022 and 2023. Those hikes drove the cost of borrowing upward, which is something consumers haven’t been thrilled with. But on a positive note, the Fed’s rate hikes have given savers an opportunity to earn more interest on their money.

Since inflation has, in recent months, been trending in a positive direction (meaning downward), the Fed hasn’t been as aggressive with its interest rate hikes. Quite the contrary — the central bank opted to pause its rate hikes during its final three meetings of 2023.

That pause has been good news for consumers looking to borrow money. But it may not be the best news for savers. If you have money in a savings account, you may want to check to make sure the interest rate on it hasn’t gone down in the wake of the Fed’s recent actions.

Are you earning less interest on your money?

Because the Fed hasn’t yet cut rates, there’s a good chance many banks have held steady on the interest rates they’ve been offering on savings accounts. But your bank may have decided to pre-emptively lower the interest rate on your savings in anticipation of rate cuts from the Fed.

As such, now’s a good time to check to see if that’s happened. If so, and the change is modest and you otherwise like your bank, then you may not want to jump ship — especially if your savings account’s interest rate was competitive to begin with. But if the interest rate on your savings has changed for the worse and other banks are paying more, it may be time for a switch.

It’s a good time to consider a move to a CD

If the money in your savings account is meant to serve as your emergency fund, then you don’t want to tie it up in a CD. But if you have a separate account for emergencies, then you may want to think about moving some of your money into a CD.

CD rates are still competitive given that the Fed hasn’t cut rates yet. But rate cuts are definitely on economists’ radar for this year. So you may want to lock in a CD before rates fall.

If you lock in, say, a 12-month CD at 5.25%, a $5,000 deposit will earn you $262.50 over the year. If you stick to a savings account paying 4.50% this month, but the rate on your account then falls gradually in 2024, you’ll earn less than $225 (exactly how much less will depend on how much less interest your bank opts to pay).

Of course, if you’re not ready to commit to a CD, then you’re better off sticking to a savings account, since there can be penalties for cashing out a CD before it’s set to mature. Otherwise, you may want to lock in a competitive interest rate on your money before rate cuts take effect.

Either way, though, it’s a good idea to be aware of what your savings account is paying. So check up on that sooner rather than later, and then keep checking every few weeks to make sure a change isn’t in order.

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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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Joined the gig economy? Take a look at a few ways to earn more and better your financial picture. 

Whether you’re a member of the gig economy on a full-time or part-time basis, you’re in good company. Fiverr Enterprise says that as of the start of 2024, almost half of the global workforce consists of freelancers.

Of course, gig work can be a mixed bag. It’s nice to have the freedom to set your own rates and make your own schedule. But giving up a regular paycheck can be tough.

Still, the nice thing about gig work is that the more you do, the more you stand to earn. And if you follow these tips, you might boost your income this year.

1. Get more efficient at what you do

Unless you’re a gig worker who’s paid by the hour, the more efficient you are at what you do, the more money you could potentially make. This holds true whether you own a business or work solo.

Think about the ways you can streamline your process to maximize earnings. Let’s say you’re a freelance music teacher who gives clients lessons at their homes. Making changes to your schedule so you’re spending more time teaching and less time on the road could result in more income.

Similarly, let’s say you’re a freelance web designer. Investing in the right tools could be your ticket to getting things done faster. The result? More money in your pocket.

2. Try to get more business out of the same clients

It’s often the case that adding new clients to your roster means spending more time on things like travel and administrative tasks. Even on a basic level, let’s say you’re a freelance content writer with a consistent monthly project load. If you have five different clients, it means having to send out five different invoices every month and keep track of them. If you have four clients you’re doing that same amount of work for, that’s one less invoice a month to deal with.

To this end, try to drum up more business from your existing client base. And believe it or not, in some cases, lowering your rate in exchange for more projects could still work to your financial advantage if it means not having to spend the time growing your client list.

Now that said, as a gig worker, you don’t necessarily want to whittle down your client list too much. The key is to strike a balance.

3. Know when it pays to turn down work

As a gig worker, you may be wired to say yes to every single opportunity that comes your way. After all, when you’re not getting a steady paycheck, every job out there is a chance to pad your savings account for a rainy day.

But in some cases, it does pay to say no to a project, such as if the rate isn’t likely to value out or you think the work will be so darn boring you’ll spend longer than usual getting it done, thereby taking time away from other income opportunities.

Saying no to work can be scary. But in many cases, it’s actually the right financial decision.

Being a gig worker isn’t always easy, but it can be quite rewarding. And if you employ these tips, you may find that your income rises very nicely in 2024.

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This writer keeps her Venmoing options limited. Keep reading to find out why and see whether you want to do the same. 

If you’re in the habit of using Venmo to do things like split the tab at dinner or reimburse friends for picking up groceries for you, you’re in good company. Venmo’s user base grew to almost 63 million in the U.S. in 2023, says Oberlo. And seeing as how Venmo also introduced a teen account last year, in the coming year, that number could easily grow.

Venmo is an app I use regularly. As the class parent at my kids’ school, I’m constantly asking parents to Venmo me for things like teacher gifts and classroom supplies. Similarly, I often use Venmo to do things like contribute to group gifts for family members and friends.

But I make a point to keep my Venmo account linked to a secondary checking account — not my main one. Here’s why.

I don’t want to be tempted to spend

Since I write about financial matters, I’m clearly aware that the money that goes into and out of my Venmo account is real money. As such, I know it’s important to spend it carefully. But I’ll admit that I’m sometimes a little loose with my Venmo payments because it’s just so darn easy to pay for things on the spot.

“Oh, your daughter is selling bracelets to raise money for her soccer team? And you take Venmo? Sure, here’s $5 then.”

Scenarios like that play out all the time in my world. Because of this, I need to be careful with what I’m spending. By linking my Venmo account to a checking account without a lot of money in it, I’m basically forcing myself to stick to a certain spending limit for what are often unplanned purchases.

There’s a matter of fraud, too

Apps like Venmo can be a goldmine for hackers and criminals. That’s something I’m well aware of, which is another reason I specifically make a point to link my account to a minimally funded checking account.

My regular checking account usually has thousands of dollars in it because I use that account to pay different bills, like my mortgage and electricity. Since the checking account my Venmo is linked to is a secondary one, I only keep a few hundred dollars in there at a time. That way, if someone does manage to get into my account and steal my money, the most they’ll be coming away with is $250 or so.

Now, I’m not saying I’d be thrilled to lose $250. And in that case, I’m sure my bank would try to step in to make me whole. The point, though, is that this approach gives me more peace of mind and makes me more comfortable with the idea of using Venmo.

Payment apps like Venmo can certainly make life convenient. But you may want to set some ground rules with your account to avoid overspending. And for financial protection, you may want to take the same approach as I do when it comes to linking to an outside account.

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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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