Money Management

Many less-than-frequent flyers would love to get a business class upgrade. These surprising tricks and expert tips are worth a try. 

Getting upgrades to business class is one of the most sought-after perks of having elite airline status. Imagine, strolling up to the gate at the airport and seeing your name at the top of the upgrade list! It’s like being an air travel celebrity, but without the annoying paparazzi.

Unfortunately, most people can’t afford to fly enough or buy enough to chase elite status, and the rules of frequent flyer programs tend to change in unpredictable, customer-unfriendly ways. If you want to get a business class upgrade, even having elite status isn’t always enough.

But the good news is: There are still a few unexpected strategies to get a business class upgrade, even if you don’t have Platinum-Gold status or a million frequent flyer miles. Let’s look at a few expert tips to get you the ample leg room and free in-flight cocktails that you deserve.

1. Be flexible with travel dates, times, and connections

Just like the basic tips for finding cheap flights, you are likely to have more success getting a business class upgrade if you can be flexible with your travel itinerary. That often means flying on less-crowded, less-popular flights, or agreeing to inconvenient connection times or overnight stopovers.

When airlines have a lot of empty seats on a flight, they’re more likely to be generous with business class upgrades. That might include giving a free upgrade to a high-status frequent flyer, or offering a lower-priced business class upgrade to someone who’s willing to pay with miles or cash.

Last year, my family flew to Germany for a Christmas vacation. We were flying on low-cost economy tickets that we bought on Priceline, and to get that ultra-cheap airfare, we had agreed to fly home from Europe on New Year’s Eve — which is not a popular day for travel. But to my astonishment, even though I didn’t have elite status, the airline somehow upgraded all four of us to business class! It was a Christmas miracle! The flat-bed seats, premium food, and unlimited Spanish wine made that flight one of the best travel experiences of my life.

This plan might not work for everyone — I had no right to be in business class, and I still wonder if the airline made a bizarre, wonderful mistake. But my experience shows that sometimes, business class upgrades happen when you least expect them — and you can boost your odds by flying on less-crowded, less-in-demand dates.

2. Volunteer to give up your seat on overbooked flights

With rising demand for air travel, airlines often end up with overbooked flights. As a result, they will often ask for a few volunteers at the gate to give up their seats and be reassigned to other flights, in exchange for flight vouchers. If you’re flexible with your travel plans and don’t mind hanging out at an airport lounge for a few more hours, this can open up opportunities.

Marian Goldberg is a travel agent and frequent flyer with Gold status on United Airlines. She recently experienced the benefits of volunteering to give up your seat on an overbooked flight.

“I recently offered my economy plus middle seat on a full flight from Kansas City to Chicago,” Marian said. “I offered to take a later flight and overnight in Chicago by the airport using my hotel points for my connection to Fort Lauderdale, Florida. United offered me a $1,000 flight credit voucher, and guaranteed business class on my connecting flight from Chicago to Fort Lauderdale.”

Marian got this free business class upgrade in part because she was willing to go to the airport extra early for a less-crowded flight.

“The flight I got upgraded on was Chicago to Fort Lauderdale on a 6 a.m. departure,” Marian said. “That route is more of a leisure trip, and most people don’t want to get up at 3 a.m. to go to the airport by 4 a.m. for a 6 a.m. flight to start their vacation. So I’m sure there were lots of seats available.”

The benefits of giving up your seat can help you earn a free flight or a business class upgrade that’s worth the hassle. Business class perks are often worth going to the airport extra early or spending a night in a hotel.

3. Keep checking your email (and refreshing your airline app) for new upgrade offers

When booking flights, you’ve probably noticed how airlines are constantly trying to cajole you into spending more money: “Would you like to upgrade to Premium Economy with more leg room for an extra $100?” Airlines also offer these kinds of upsell opportunities on business class upgrades. But don’t reach for your credit card just yet — you don’t have to take the airline’s first offer.

The price of business class upgrades may go down as you get closer to your flight departure date. Keep checking your email and monitoring your airline’s app for new in-app airline upgrade offers for discounts on business class upgrades. If you see a price you like, you can pay to upgrade your ticket from within the app or airline website. Business class upgrades can also be more affordable if you pay for them with frequent flyer miles (or travel credit card reward points) instead of cash.

Even if you don’t have elite airline status, don’t assume that business class upgrades are out of reach. With flexible travel planning, being a good volunteer to give up your seat on an overbooked flight, and savvy use of in-app discounts, you can get the business class travel experience of your dreams.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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A nice getaway is something I could really use. Read on to see what strategy I’m using to sock away funds. 

Over the past few years, I’ve been able to travel to several states and make some great memories with my family. But it’s been quite some time since I’ve taken a bigger trip that has me leaving the U.S. for an extended period and exploring different places abroad. I’m hoping 2024 will be a year that I get to do that.

Achieving that goal, however, is going to require a lot of effort. Here are the steps I’m taking to make it happen.

1. I’m maintaining a dedicated savings account for travel

In the past, I’ve found that it was difficult to save for different goals when my money was all commingled. So what I’ve taken to doing in recent years is creating separate savings accounts for separate objectives.

As such, I already have a separate account I can fund for the express purpose of travel. I won’t have to worry about needing that money for car or home repairs because I have other bank accounts for those purposes.

2. I’m allocating extra earnings to my trip account

As a freelance writer, my pay is based on my output. I have what I call a base goal I try to hit every month. But some months, I aim to push myself beyond that goal.

During the first half of 2024, I’m hoping to work a bit more and use some of my extra earnings for vacation purposes. I won’t feel guilty using that money for a trip instead of something like my kids’ college accounts because it’s extra on top of my baseline earnings.

3. I’m banking credit card cash back

I have several credit card accounts, but there’s one card I use most frequently, and it’s one that gives me cash back on my purchases. My goal is to bank all of that cash back and reserve it for my trip rather than spend it month after month.

I may also seek out a new credit card that comes with a generous sign-up bonus. My credit card bills tend to be fairly large due to my monthly expenses and the fact that I have multiple children and a dog to feed. In many cases, meeting the spending threshold may not be difficult, and that gives me more cash to apply to my trip.

You can make your big goal happen, too

Maybe you’re saving up for your own big goal in 2024, whether it’s a vacation, new furniture, or money down to buy a car. Either way, you may be more likely to get there if you:

Maintain a separate savings accountPush yourself to work extra by picking up a side hustle and earmarking your earnings for your specific goalSaving up the cash back you get from your credit cardsKeeping tabs on the best credit card sign-up bonuses and applying when the time is right

Of course, if you’re low on emergency savings, then your first goal for 2024 should be to focus on that. A good 63% of Americans aren’t in a position to cover a $500 expense, says SecureSave. If you’re in a similar boat, you frankly shouldn’t even think about saving for something like a trip when your emergency fund needs work. But if you’re all set with emergency savings, then the right strategy could help you pull off whatever goal you’re aiming for in the new 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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Is a freelance setup right for you in the new year? Here’s how to know. 

The start of a new year tends to inspire people to make different financial decisions. And one decision you may be toying with is whether to continue working as a salaried employee or venture out on your own into the world of freelance work.

Being self-employed has many benefits, but there are also some drawbacks to consider. If you’re serious about potentially going freelance in 2024, ask yourself these questions to see if it’s a good idea.

1. Do I have plenty of savings?

When you go freelance, you give up a steady paycheck. In exchange, you sign up for a variable income, which could also mean some months of no income. If you’re contemplating a move to freelance work, check your savings account.

Generally speaking, it’s a good idea to have enough money in the bank to cover three to six months of essential expenses. That’s your basic emergency fund. But if you’re looking to go freelance, it could pay to save well beyond that point in case it takes you a while to find work, or in case you start off strong but then suffer through a dry spell.

2. Can I afford to pay for health insurance?

When you work as a salaried employee, you often get the benefit of subsidized health insurance. One of the biggest costs you might face by going freelance is having to pay for coverage on your own.

Now, your costs there will depend on factors like your age and location, and the type of health plan you opt for. But to give you an idea of what you might end up spending, Forbes reports that the average monthly premium for a bronze marketplace plan (the lowest tier you can buy) is $420 for someone aged 40.

That cost then increases to $549 a month on average for a silver plan, and $713 for a gold plan. These numbers, however, don’t account for subsidies you may be eligible for that could offset your costs.

Of course, if you’re married, you may have a spouse whose health plan you can sign up for, thereby making insurance less expensive. But if not, make sure you can swing the cost of buying health insurance on your own.

3. Will I struggle without paid time off?

Another nice thing about working for an employer is that you’ll usually be entitled to paid time off. So when there’s a national holiday, for example, you’re not expected to work.

When you’re a freelancer, there’s no such thing as paid time off. Rather, you need to build that time off into your schedule. But that’s not always easy to do. Also, consider that if you have children, you may run into issues if their school is closed for vacation periods but you’re not eligible for paid time off and therefore have to work.

4. Will my quality of life really improve?

Many people convince themselves that going freelance is apt to lend to a better quality of life. After all, you can set your own hours and make your own schedule. That could mean being there to meet your kids at the bus stop rather than having to hire a babysitter, and being home to walk your dog at lunchtime instead of paying for a dog-walker.

But while freelancing might enhance your life in some ways, it might make your life worse in others. If you’re constantly worried about money due to your inconsistent pay, that’s not a great way to live. And if you’re never able to take time off because you feel pressured to accept every project you’re offered, well, that’s not good either.

You may be thinking seriously about going freelance once 2024 arrives. But think about whether the freelance lifestyle is really for you and your finances. Better yet, talk to people who already live it and get their take. That might give you the insight you need to arrive at the right choice.

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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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Thinking of selling a home? It pays to do so under the right circumstances. Read on to learn more. 

There are plenty of good reasons to make the decision to sell your home. Maybe you’re aiming to relocate to a less expensive part of the country. Or maybe you want to move to an area where there are more jobs available in your field.

These days, home prices are up, due largely to a lack of inventory. In November, the median existing home sale price was $387,600, reports the National Association of Realtors. That’s a 4% increase from November 2022 and the fifth month in a row where home prices rose on a year-over-year basis.

But while you may be eager to sell a home today to capitalize on higher market values, you might also run into a problem if you sell today — getting stuck with an expensive mortgage.

The mortgage rate conundrum

Many homeowners who own property today are sitting on low mortgage rates — either because they signed initially at a competitive rate or because they refinanced their home loans back in 2020 or 2021, when mortgage lenders were offering some of the most attractive rates in years.

If your mortgage has a low interest rate attached to it, you may not be so eager to give it up. But if you sell your home now and are forced to sign a loan on a new one, you might get stuck with a mortgage rate you aren’t happy with.

That’s why you may feel conflicted about selling your home. It’s good to sell at a time when there’s not a lot of competition and home prices are up. But what you gain by virtue of a higher sale price, you might lose by locking in a more expensive mortgage. There may, however, be a way around that situation.

Can you buy your next home in cash?

Since the main drawback of selling a home today is having to sign an expensive mortgage for your replacement home, the solution is to simply buy your next home in cash. Easy, right?

Of course not!

For many people, that’s just not an option. And if you’re upsizing or moving to a more expensive market, it’s especially not feasible.

But let’s say you’re either downsizing or moving to an area with a lower cost of living. Perhaps you can sell your current home for, say, $600,000, walk away with a $300,000 profit, and then buy your next home outright for $300,000.

You may need to make some sacrifices for that to be possible, like buying a smaller home or one that’s less updated. But if it’s doable, you really get the best of both worlds — a higher sale price for your existing home without having to bear the burden of a higher mortgage rate.

Clearly, this strategy will not work for everyone. But if you think there’s a good chance you’ll be able to buy your next home mortgage-free, then it could pay to work on listing your home in the near future.

We don’t know when home prices will start to come down. And while they’re certainly not expected to plummet overnight, you don’t want to give up the chance to profit big-time if you’re intent on selling. So you may want to put your plan to sell high and buy a new home outright into action — before the market changes and your home’s value starts to shrink.

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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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