Money Management

For some, becoming a new homeowner is tinged with regret. Take a look at why and what they can do about it. 

Regret has reared its ugly head among pandemic-era home buyers, with numerous reports covering the many reasons why. But that’s not the point of this article — not entirely, anyway.

Sure, it’s a cautionary tale for anyone tempted to rush into homeownership. However, we’ll also talk about what new homeowners who deeply regret signing a mortgage contract can do about it now.

Why homeowners are unhappy

Each time my husband and I have closed on a home, there have been hours of pure bliss, sometimes stretching into days of excitement. And then reality sets in. Maybe the walls were in worse shape than we imagined, or we suddenly realized that all the carpeting needed to be replaced. It turned out the exciting part was finding a house and knowing the search was over. The sobering part was recognizing that we’d taken on a massive responsibility.

Since early 2020, when the inventory of homes for sale dried up like Lake Mead, home buyers have scrambled to win bidding wars and nail down mortgages. In their rush, many have found themselves entertaining second thoughts. According to two separate surveys — one from home insurance group Hippo and the other from Clever Real Estate — here are some of the most common reasons folks say they regret their decision to buy.

They rushed into the purchase.They spent too much to buy the house.They have felt in over their head financially since purchasing their home.Home maintenance is more expensive than they anticipated.They compromised too much to become homeowners.

What pushed buyers to buy quickly and overpay?

In 2020, at the beginning of the COVID-19 pandemic, the Federal Reserve moved to keep interest rates low in hopes of keeping the economy alive. The combination of those low rates and low inventory meant that more buyers were vying for fewer potential homes. As a result of this competition, home prices were pushed to record highs.

When it became clear that the economy was doing better than expected and the Federal Reserve moved to raise interest rates to fight inflation, the competition continued. Only now, buyers who planned to take out mortgages were paying more for those home loans.

In short, it was the perfect storm.

What unhappy homeowners can do

Although it may be a cold comfort to regretful homeowners, it’s important to know that many regrets are normal — even during the best of times. As I mentioned, it’s not until you get into a home that you have time to take stock of the challenges before you. In fact, according to Hippo, home buyer’s remorse bites a full 52% of us in the derriere. And the younger the buyer, the more regrets there tend to be. In fact, 63% of home buyers between the ages of 23 and 38 say they have regrets.

And if you’re a homeowner kicking yourself for not doing enough research or failing to weigh the pros and cons before signing the purchase offer, stop. Just stop. Even if you’d done everything by the books, you would have faced post-move-in regrets.

Beating yourself up serves no productive purpose. Instead, now is the time to work toward turning things around. Here are three tips that can help.

Adjust your budget. Nothing is worse than lying awake at night, worried about bills. Revisit your monthly budget and figure out where you need more money and where cuts can be made. It sounds insultingly simple, but adjustments are necessary as you grow accustomed to your new bills. You may find that a great budgeting app can help.Make it your own. Even if you don’t have the money for big projects, take on a few small ones. According to the Hippo study, 47% of new homeowners said that completing home maintenance and repair tasks motivated them and increased their pride of homeownership. Whether it’s working in the yard, painting a bedroom wall, or adding new hardware to kitchen cabinets, take steps to make the house feel more like your home.Invite people over. A house is just a house until you begin to make memories. Anything you do that involves others, from having regular game nights to throwing a 4th of July barbecue, will help you create positive memories, and those memories tend to translate into positive feelings.

Ultimately, buyers who regret their decision today may look back on their mortgage not as an albatross around their necks, but as a ticket for a better future.

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Some big NFL stars are good at saving money. See which NFL players are winning the game of frugality — and what financial lessons you can learn. 

The Big Game is coming soon, and it’s a good time of year to get inspired by the financial lives of NFL football players. Most people assume that NFL football players live like rock stars, in big mansions with fancy cars. But that’s not always true. Some prominent NFL players are making headlines not just for their big salaries and signing bonuses, but for their frugality and smart budgeting.

What can the NFL’s most financially savvy football players teach the rest of us about personal finance and saving money? Let’s look at a few examples.

1. Brock Purdy, San Francisco 49ers: Save money on rent

Brock Purdy is the surprising star quarterback of the San Francisco 49ers, but he lives with a roommate. Purdy and his 49ers teammate, offensive lineman Nick Zakelj, share an apartment to save money on rent. The pro athlete roommates told the Today Show that their lives outside of football are pretty simple; they watch movies and grill out, just like typical young people.

Even though Brock Purdy was mentioned as a possible 2023 NFL MVP candidate, he doesn’t make the biggest bucks in the league. Purdy was the very last player drafted in the 2022 NFL Draft, a position known as “Mr. Irrelevant.” So because of this ultra-low draft position, Brock Purdy’s salary is cheap by NFL standards: “only” $870,000, according to CNBC. When you consider how much he must pay in state and federal taxes, Brock Purdy has a comfortable income, but he’s not a millionaire yet.

Lesson: Getting a roommate to split your housing costs is often a good idea, especially if you live in a high-priced city like San Francisco.

2. Christian Wilkins, Miami Dolphins: Be happy living with less

Christian Wilkins is a star defensive lineman for the Miami Dolphins who earned a 2023 salary of $10.75 million, but he still picks up pennies off the ground and celebrates when he finds an extra dollar. According to the Greenville (SC) News, before entering the NFL, when he was a student-athlete at Clemson University, Wilkins rode his bike everywhere instead of driving a car, and during his last year at Clemson he earned (and saved) $80 a day as a substitute teacher.

Wilkins grew up in a lower-income family that didn’t have much, but he’s grown up with a sense of trying to go through life without having to spend lots of money — even though he now has millions of dollars.

“I’ve always had the mindset of navigating through life with less,” Wilkins told the Greenville News. “It never took me much to be happy. I always had enough internal happiness to not have to spend money.”

Lesson: Try to avoid lifestyle creep. Many people just keep spending more money, the more they earn. If you get a big promotion at work, a bonus, a pay raise, or a one-time windfall, try not to let your lifestyle “creep” beyond your means to pay for it — keep saving for the future and investing for retirement.

3. Chad “Ochocinco” Johnson (retired): Know your worth

Chad “Ochocinco” Johnson was a superstar wide receiver for the Cincinnati Bengals who earned $48 million during 11 years in the NFL. In a recent podcast interview, Johnson said that he saved 83% of that NFL money. Even though Ochocinco was known for his highlight-reel plays and had a flamboyant personality, out of the spotlight he quietly lived a frugal life.

As a guest on Shannon Sharpe’s Club Shay Shay Podcast, Chad Johnson said that he saved so much money by living with his grandmother for his first three years in the NFL. He spent his first two seasons in Cincinnati staying at the Bengals’ home stadium, where he got free food, showers, and even video games. Finally, after two years of living at the stadium, the Bengals’ head coach encouraged Chad Johnson to get his own apartment — so he rented a one-bedroom place down the street. Johnson also saved money by flying Spirit Airlines — no private jets. (I hope he at least got elite status on Spirit Airlines.)

Lesson: Chad Johnson didn’t feel like he needed big-ticket items or fancy jewelry to signify his status and his value in life. (Instead of a $50,000 watch, he bought fake jewelry at Claire’s.) He knew he had value for the kind of person he was, and he didn’t have to spend a bunch of money on “stuff” to impress people.

4. Tommy DeVito, New York Giants: Live at home with your parents as long as you can

Tommy DeVito is another unexpected rookie QB success story. He plays for the New York Giants, whose New Jersey team facility happens to be a short drive away from DeVito’s childhood home. While he became a surprise starting quarterback in 2023, DeVito was still living at home with his parents.

“Everything that I need is there at the house,” Tommy DeVito told ESPN in November 2023. “I don’t have to worry about laundry, what I’m eating for dinner, chicken cutlets and all that is waiting for me when I get there. My mom still makes my bed.”

Lesson: Not everyone might get that same level of homemade chicken cutlets and laundry service from their parents. But DeVito is a great example of how, when adjusting to your first job out of college, it can be helpful to save money on rent, and save time and mental bandwidth by living with loved ones.

Bottom line: Some of the NFL’s biggest superstars are also super-frugal. It feels good to save cash out of every paycheck, keep your monthly expenses low, and build a life that means more than money or material things.

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Looking to improve your Costco shopping game this year? Read on to see how. 

If you’re a Costco member, you’re probably well aware that shopping there regularly has the potential to save you money big time. But even if you’re a seasoned shopper at Costco, there may be steps you can take this year to free up even more cash for your savings account. With that in mind, here are three New Year’s resolutions for Costco members to employ.

1. Put an end to impulse buys

When you’re walking the aisles of a store like Costco, it can be difficult to avoid falling victim to temptation. There’s just so much inventory to consider, and the deals can be really appealing.

Plus, Costco tends to rotate its offerings on a seasonal basis. If you’re a huge fan of all things pumpkin, you might have a hard time saying no to the giant cheesecake version of it you’ll commonly find in Costco’s bakery section come October.

But while impulse buys at Costco are certainly understandable, they can also hinder your financial goals if you make them too often. So this year, pledge to take a shopping list with you every time you go to Costco, and actually stick to it. This means don’t go off-list, even if you see a seasonal item you’re convinced will be gone in a flash.

2. Stop overbuying to cut down on Costco trips

For some people, visiting Costco is an enjoyable experience. For others, not so much. If you fall into the latter category, you may be in the habit of buying extra things at Costco to minimize your return trips. But frankly, that’s not such a great strategy for a store that has you buying in bulk off the bat.

Let’s say you decide to buy three gallons of milk instead of two so you can potentially avoid having to go to Costco two weeks in a row. What may end up happening in that situation is that you don’t need the third gallon of milk so soon, and half of it spoils on you at some point.

Now that said, you have more leeway when it comes to non-food items. If your favorite paper towels go on sale at Costco, by all means, buy more if you have the space to store them. But aim to stop buying extra food, especially that of the perishable variety.

3. Start buying premade meals instead of relying on takeout

If you’re a busy person, you may be inclined to fall back on takeout meals instead of spending hours each week grocery shopping and cooking. But if you have a Costco membership, you have a prime opportunity to buy pre-made dishes there that might cost a lot less than ordering from a restaurant.

Costco’s chicken pot pie for example, might cost you around $26 for a giant dish that weighs over five pounds. It may be enough to feed your entire family on its own without any side dishes. A takeout meal of a comparable quantity might cost double.

Shopping at Costco could mean saving a bundle of money on food and household essentials this year. Add these pledges to your list so you can benefit financially even more from your membership.

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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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Car insurance may not get cheaper in 2024, but drivers could cut their rate with a few good habits. Here are three. 

Car insurance premiums skyrocketed about 19% in 2023, leading to the biggest yearly increase in almost five decades. And while many of the reasons behind this inflation are outside your control — like extreme weather disasters, distracted driving, and the rising costs of repairing cars — there are some ways to proactively keep your insurance costs down. If you’ve been stunned with a higher car insurance premium lately, here are three habits that could help you save.

1. Don’t auto renew your policy

Setting your car insurance to auto renewal seems harmless. But while it may save you time, auto renewing hardly saves you money.

The problem with auto renewal is that it could lead you to lock into a rate that’s higher than other car insurance companies. Even if your rate doesn’t change from year to year, you may be forfeiting cheaper rates elsewhere, simply because you didn’t check beforehand or shop around. What’s worse is when your car insurance rate creeps up for no apparent reason, leading you to pay more for car insurance even when you didn’t file a claim.

Instead of auto renewing, a good habit is to compare car insurance companies at least once a year. Premiums can differ significantly from company to company, sometimes by hundreds of dollars, and you may find cheaper insurance for the same coverage just by switching. You can request quotes directly from insurance companies, then compare them side by side, or you can enlist the free services of an independent insurance agent, who will do the research for you.

2. Use telematics — and practice good driving

Telematics, in car insurance jargon, is a type of technology that monitors how you drive and reports your driving habits to insurance companies for policy pricing. For safe drivers, subscribing to a telematics program could save you up to 40% on your annual premium — a significant savings that could amount to $1,150 if your policy, like the average driver, costs around $2,875 per year.

To be sure, telematics doesn’t automatically save you money. You have to prove you’re a good driver first. In general, telematics devices and apps observe the following driving behaviors:

AccelerationHow fast you brakeSpeedingCellphone usageMiles you driveTime of day you drive

Even if you’re not a great driver to begin with, telematics can teach you how to drive safely by penalizing reckless or careless driving. For instance, you may not realize just how frequently you speed or how much you use your cellphone while you drive. While these devices can sometimes be annoying — for example, penalizing safe driving such as braking quickly to avoid an accident — driving within their guidelines could result in a hefty discount.

3. Get only the coverage you need

Picking the right amount of car insurance coverage involves a lot of “what ifs.” What if you cause a multi-car pile-up with injuries amounting to more than $300,000? What if a branch falls on your car while it’s parked or someone sideswipes the mirror? What if you don’t have enough insurance and are stuck paying the difference out of pocket?

True, it’s important to be prepared. After all, you don’t want to be stuck paying out of pocket for costs that your car insurance could have covered. On the other hand, there is such a thing as being overinsured. For example, if you drive an old car, you might not need collision and comprehensive coverage. Likewise, if you’re a careful driver who has a clean driving record — perhaps one or two incidents but no pattern of recklessness — you don’t need to overdo it with property damage or liability.

All in all, if you’re a safe driver who compares car insurance quotes and buys only the coverage that you need, you could keep your car insurance costs down. Practice these habits consistently — but keep in mind you may not see the savings immediately or all at once — and combine them with other discounts to help you save on car insurance in 2024.

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The holidays are over and they’ve left you a little wealthier. Here are five ideas to help you get the most out of your extra cash. 

The holidays are over and hopefully you got some gifts you wanted this year. You probably walked away with some cash too, or else you wouldn’t be reading this. I’m sure you have plenty of ideas for how you’d like to spend that money, but let me throw out five ideas of my own for your consideration.

1. Pay down debt

Those with high-interest debt may want to consider putting holiday cash toward debt repayment. This is pretty simple to do if you only have one balance to worry about, but if you have several debts, you need a strategy.

It’s often best to concentrate on the debt with the highest interest rate first. If you’re unsure which one this is, check with all your lenders to see what your annual percentage rates (APRs) are. Find the highest one and put all your holiday cash toward that bill. If there’s some left over, put it toward the debt with the next-highest APR.

2. Invest it

Investing your money is a great option if you don’t have expensive debt and you don’t need the money in the near future. You could open a brokerage account or, if you want the greatest tax advantages, you could use a retirement account.

Many retirement accounts, like traditional IRAs and 401(k)s, enable you to defer taxes until you withdraw the money in retirement. Roth accounts give you tax-free retirement withdrawals for paying taxes on your contributions upfront. Just keep in mind that you typically can’t access retirement account funds before age 59 1/2 without paying a penalty.

3. Save it in a high-yield savings account

The best high-yield savings accounts are currently offering annual percentage yields (APYs) of 4.30% or higher. This could put $43 in your bank account this year with a $1,000 minimum balance.

You may not end up with as much money in the long run as you would if you invested your extra cash. But you’ll have access to it at all times and you won’t have to worry about losing it as long as you keep your account details secure.

4. Put it in a certificate of deposit (CD)

Certificates of deposit (CDs) are a nice middle ground between savings accounts and investing for cash you don’t need now but aren’t willing to risk in the stock market. These accounts offer an APY that can be higher than high-yield savings account APYs, but in exchange, you agree not to touch your funds for a certain period. This could be anywhere from a few weeks to many years, depending on the CD you choose.

Technically, you can take it out early if you’re in a pinch. But if you do this, you’ll face a penalty equal to several months of lost interest. If this concerns you, a high-yield savings account is probably a better route.

5. Invest in your education

Put the extra cash you’ve received toward higher education in your field or a field you’re interested in. You don’t have to go all out on a new degree if you don’t want to. There are plenty of online programs that can give you certificates or just additional knowledge you can use to make you a more valuable employee. This, in turn, could lead to promotions or better-paying jobs in the future.

How you use your holiday money is ultimately your call, and you don’t have to stick to just one — or any — of the suggestions above. You could spend some of it and save some of it if that feels better than setting it all aside. Just make sure you have a plan so you can squeeze the greatest value for your finances out of it.

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High CD rates made 2023 a great year to be a saver, but will they remain elevated in 2024? Find out if CD rates have peaked here. 

The years 2022 and 2023 saw one of the most stunning rises in short-term CD rates in over a generation. When 2022 started, the national yield for a 90-day CD was about 0.22%, according to historical data from the Organization for Economic Co-operation and Development (OECD). By November of 2023 — the last time the OECD took data — that 90-day rate had shot up to 5.41%, an increase of about 2,360%.

But just as quickly as they came, so, too, today’s high CD rates may be going out the door. While it’s still too early to make any predictions, there are some indications that CD rates have already headed south for the winter. Let’s take a look at what we know.

OECD data suggests that CD rates peaked in September

The OECD data cited above is one clue that sky-high rates on certificates of deposit may have already passed their denouement. While CD rates are still higher year over year, it appears as if 90-day CDs hit a high in September and began to drop thereafter.

The drop from September to November is small but not insignificant. Since many Fed policymakers are confident they will cut the federal funds rate — which indirectly sets CD rates — at least three times in 2024, it only makes sense that banks would respond by slowly lowering rates in anticipation of those cuts.

That doesn’t mean that you can’t still find lucrative deals on new CDs. In fact, one look at the top-yielding CDs on Raisin shows that rates are still above 5%. What it does mean, however, is that you’ll likely see fewer and fewer truly mind-boggling offers, like 6% to 7% APY. It also means that banks and credit unions may start offering lower APYs on longer terms, like those 12 to 18 months and longer.

Is now the right time to get a CD?

Fortunately, you have time to make a reasonable decision.

Unlike stocks, CD rates don’t fluctuate by the second. They generally follow trends in the Federal Reserve’s federal funds rate, which is still in a target range of 5.25% to 5.50%, the highest it’s been in over a generation. So, while it looks as if 3-month CD rates are falling, you don’t have to rush Black Friday style to the doors of your nearest bank and cram all your money into a new account.

That said, now would be the optimal time to lock into high APYs on long-term CDs, like those 12 months and longer. Since rates are likely going to fall in 2024, these longer terms would help you earn at today’s rates for longer periods.

At the end of the day, your decision to open a CD should be based on your financial goals, not whether CD rates are peaking. If you’ve assessed the risks of CDs — like early withdrawal penalties — and you’re sure it’s a good place for your money, now would be a good time to get one. Take a look at some of today’s top-paying CDs and consider building a CD ladder if you’d like to extend high rates beyond 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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