Money Management

Some personal loan lenders provide same-day funding. Here’s how to find the right loan under a time crunch. 

If you need to borrow money for something, a personal loan could be a good option. The interest rate you’ll pay on a personal loan is typically a lot lower than a credit card’s rate and you’ll also have more predictability with a personal loan. You’ll get a payoff schedule upfront that tells you exactly how much your monthly payments will be, what your total costs will be, and when the debt will be paid off.

The issue, though, is that you need to apply for a personal loan and get the funding before you can use the money for a purchase. If you have a surprise expense or something happens and you need money right away, you may be concerned about how long this process is going to take.

But just how quickly can you actually get a personal loan — and will you be able to get the funds fast enough to cover a pressing expense?

Some personal loan lenders can deliver funds very quickly

The good news is, it is actually possible to get a personal loan really fast. In fact, many personal loan lenders allow you to submit an application online, get an answer about whether you can borrow within just a few minutes, and then get the funds from the loan deposited into your checking account the very same day that you apply.

This is definitely not the case for every single lender. But there are multiple options out there for speedy funding — especially if you are a well-qualified borrower. You’ll just want to look around and get several quotes from multiple different loan providers to find one that does offer fast delivery of the money you need.

It’s important, though, to make sure you are getting a personal loan — and not a payday loan. There are some lenders out there that offer loans very quickly but charge really high upfront fees that could leave you paying an effective APR of 400%. You can spot these loans because they often require you to pay back the money really quickly and because they have very high origination fees.

If you’d end up getting stuck with a personal loan lender that charges you a huge fee upfront and a high rate, you would actually most likely end up better off with a credit card to cover your expense that you have to pay right away (assuming you have access to a card).

You can avoid these types of costly lenders by looking at the fine print to see your annual percentage rate (APR). That’s a more accurate measure of total costs since it shows what you’d pay in a year including both interest and fees. If your lender won’t tell you what your APR is, run away.

How to get your personal loan ASAP

If you want a legitimate personal loan ASAP, you should start by getting quotes from several lenders. This can enable you to compare your options and find one offering a fast loan with reasonable terms.

You should also make sure that you’re ready to apply for a loan and get fast approval. You can do this by:

Ensuring your credit isn’t frozen (or unfreezing it, if it is), so lenders can check your bona fides when they need to.Getting your documentation together (including pay stubs), so you can provide details on earnings and proof of income.Submitting an online application, as this can be a faster way to get approved than going to a local lender.

If you have your ducks in a row and apply with the best personal loan lenders offering speedy funding, ideally you’ll be able to get an affordable loan right when you need it most.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

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It pays to contribute as much money as you can to an IRA, even when you’re really young. Read on to see why. 

There are certain benefits to being in your 20s. You may have more energy to maintain a social calendar and put in long hours at the office that make it possible to advance your career. And you may not have children, thereby allowing you to use more of your earnings to work toward different financial goals.

One of those goals should be saving money for retirement. A good plan to use for that purpose is an IRA, since you get different tax benefits that a regular brokerage account won’t give you.

But at age 25, retirement is a long way off. So you may be wondering how much of your salary you should be aiming to save in your IRA. And the answer is, as much as the IRS will allow you to, if that’s something you can swing.

It pays to max out an IRA at a young age

Each year, the IRS sets a limit for allowable IRA contributions. In 2024, the limit is $7,000 if you’re under the age of 50. If you’re 50 or older, the limit is $8,000.

The reason the IRS limits contributions is that IRAs are tax-advantaged. With a traditional IRA, every dollar you put in could be a dollar of income the IRS won’t tax you on. So the agency isn’t going to let contributions be a free-for-all, because it wants its tax revenue. However, the reason those tax breaks exist in an IRA is to incentivize workers to save money for retirement, and also, to make it easier to swing those contributions.

Now, if you’re 25, retirement might be the last thing on your mind. It might also be a good four decades away. But that’s actually why it’s so important to save as much as you can for retirement when you’re so young.

The money in your IRA doesn’t just sit in cash — or at least it shouldn’t. Rather, you should invest it so it grows significantly over time.

The more time you give your contributions to grow, the larger a balance you stand to retire with. So if you’re able to max out your IRA contribution at age 25, it could result in a lot of money down the line.

The results might surprise you

Let’s say you max out your IRA in 2024 at $7,000 when you’re 25 years old. Let’s also assume you invest your IRA in S&P 500 stocks that generate an average annual 10% return, which is consistent with the S&P 500’s performance over the past 50 years. If you leave that $7,000 to grow for 40 years, you might turn it into about $317,000. And that’s just from a single year of making IRA contributions.

That’s why your goal should be to max out your IRA at age 25, regardless of the percentage of your salary that amounts to. Of course, if you’re only earning $25,000 a year, then contributing $7,000 to your IRA is probably not doable.

But can you swing a $7,000 contribution on $60,000 a year? Maybe. That’s less than 12% of your income. And it may be feasible if you’re willing to spend more modestly on other bills, like housing.

All told, maxing out an IRA any age requires some sacrifice. But if you make that effort when you’re young, you may be surprised — in a good way — at your results.

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Not paying for gas is an excellent perk of EVs. But there are more factors to consider if your goal is to save money. 

Electric vehicles are elbowing their way into the automotive market as they try to become viable alternatives to their gas-powered peers. I’ve been a fan of EVs for a while, but I’m also practical enough to realize that they’re not the most economical choice in every situation.

Pitting the cost of EVs against gas-powered vehicles is tricky because so many factors go into the overall cost of owning a car. So, with that in mind, here are a few costs you’ll encounter with both EVs and traditional vehicles.

1. Energy savings winner: EVs

Consumer Reports conducted an in-depth comparison between EVs and gas-powered vehicles and found that electric vehicle owners can save between $800 to $1,000 annually by charging up at home versus visiting the gas station.

There’s no catch-all number for energy savings, of course, because gas prices and electricity costs fluctuate and differ throughout the country.

However, additional research found similarly impressive results. Energy Innovation says the energy cost savings for owning an EV are between $715 and $1,074, and The Washington Post found that recharging an EV was cheaper than filling up at a gas station in all 50 states.

2. Repair costs winner: Gas-powered vehicles

Electric vehicles have fewer parts and, thus, could need fewer repairs over the long term than their gas-powered counterparts. But if you need to take your EV into the repair shop, it’ll likely cost you more.

Recent data from Mitchell, a software provider for car insurance companies, found that EVs cost their owners an average of $269 more per repair. And owning a Tesla will set you back even further, as a repair costs an average of $1,347 more than for gas-powered vehicles.

Electric vehicles cost more to repair because body shop workers and mechanics often need more specialized training to repair EVs, there are usually more parts required to make the repair, and EVs have additional technology that drives up the price.

3. Insurance costs winner: Gas-powered vehicles

Electric vehicles often cost more to insure because they have complex and expensive components and longer repair times, according to Progressive Insurance. Consumer Reports notes that one of the most significant costs for insurance companies is an EV’s battery, which can cost up to half of the price of the vehicle.

The high repair costs of EVs mean owners often pay higher insurance premiums. It also means that car insurance companies are more likely to declare an EV a total loss after an accident than gas-powered vehicles.

Insurance prices vary by state, coverage, vehicle, and your driving record, making it difficult to pinpoint how much more you’ll pay with an EV. So, it may be a good idea to price out your potential car insurance costs with a provider before you buy an EV.

Verdict: It depends

While insurance premiums and repair costs are typically higher with EVs than for gas-powered vehicles, the long-term energy savings costs may outweigh the difference. But only sometimes.

Car and Driver compared the electric and gas-powered versions of a Ford F-150 and a Hyundai Kona in a three-year cost comparison. The authors looked at maintenance costs, fuel, and depreciation and found that the gas-powered Kona was cheaper to own than its electric counterpart. In contrast, the electric F-150 Lightning was cheaper than a comparable gas-powered F-150.

So, there are a lot of factors that contribute to the overall cost of ownership for an EV. Sometimes, they’re cheaper than traditional vehicles, but not always. If your goal is to save money, it’s probably best to just find the cheapest car that fits your needs — and that may not be an EV.

Our best car insurance companies for 2022

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Getting access to a 401(k) could be a game-changer, even if you’re a part-time employee. Read on to see why. 

Saving for retirement is a good way to help ensure you’ll be able to live comfortably when you’re older. But one challenge some workers face is not having access to an employer-sponsored retirement plan.

Only 66% of private-sector workers have access to such a plan, says the U.S. Bureau of Labor Statistics. But in 2024, that percentage could rise.

Thanks to the Secure Act, beginning in 2024, employers have to make their company retirement plans available to part-time employees who work at least 500 hours a year for three consecutive years. So if you’ve yet to gain access to your company’s 401(k), 2024 might be the year when you’re finally able to participate. And it pays to do so for these reasons.

1. Tax-free contributions

When you put money into a savings account or brokerage account, you don’t get a tax break in the process. With a traditional 401(k), your contributions go in tax-free, so you get to shield some of your earnings from taxes.

Let’s say you put $3,000 into your 401(k) in 2024. Normally, that $3,000 of your income would be taxable, but in this case, it won’t be. If you fall into the 22% tax bracket based on your total wages, that $3,000 in contributions saves you $660 in taxes.

2. Tax-deferred gains

When you invest in a regular brokerage account and make money (selling shares of stock for a capital gain, receiving dividends, etc.), you have to pay taxes on your gains every year. Not so in a 401(k).

With a 401(k), investment gains are tax-deferred. This means that instead of facing a yearly tax bill, you only pay taxes when you take withdrawals.

Here’s how that might work. Let’s say you contribute $20,000 to your 401(k) over time and your balance grows to $80,000. If you take a $3,000 withdrawal, you’ll pay taxes on that $3,000 distribution. That’s the IRS’s way of taxing you on your gains — but eventually, not right away.

3. Free money for your retirement

An employer match in your 401(k) is not guaranteed. But many companies that sponsor these plans also match worker contributions to some degree.

So let’s say your employer’s policy is to match 100% of up to $3,000 a year in contributions. Putting in $3,000 therefore means getting another $3,000 from your employer. And remember, you can then invest the money you get from your employer to help grow your balance even more.

There’s another good option if a 401(k) still isn’t available to you

The fact that more workers might get 401(k) access in the new year is a good thing. But if that’s not going to be an option for you, worry not. You can enjoy two out of three benefits above with an IRA.

An IRA isn’t tied to a specific employer. All you need is earnings from a job to open and contribute to one.

You can open an IRA at almost any financial institution. While you won’t be privy to an employer match (since there’s no employer associated with your account), a traditional IRA could give you tax-free contributions and tax-deferred gains just like a 401(k). So if you won’t be getting access to an employer plan, you can still make headway on your retirement savings goal on your own.

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Kitchens are the heart of most homes, and it can be tempting to outfit them with the newest appliances. Here’s why it rarely makes financial sense. 

I’m good about most financial matters, like prioritizing our retirement fund. However, I’m a bit flakier when it comes to financial decisions regarding our home. I was once driven to the edge of sanity by the fact that the handles on our kitchen appliances didn’t match. Seriously. Handles.

If I’m going to spend more than I should on anything, it will be home-related. I’ve learned to face the fact and deal with it.

I suspect that a lot of people are like me. They see their homes as a reflection of themselves, and they obsess over flaws (or perceived flaws). That’s why I understand when a person can’t bear to look at their side-by-side refrigerator because what their kitchen really needs is a fridge with French doors.

I’m not saying it never makes sense to replace a broken appliance. What I’m saying is this: More often than not, we’d have more money in our bank account if we only replaced an appliance when there was no other option. Here are two reasons why.

1. The true cost

The good folks at This Old House say that appliances are often replaced before it’s necessary. Whether it’s a sudden shift in what’s “hot” or consumer preference, many appliances are sent away to live on a farm long before their time. According to the International Association of Certified Home Inspectors, here’s the average lifespan of major appliances:

Washing machines: 5-15 yearsDryers: 13 yearsRefrigerators: 9-13 yearsTrash compactors: 6 yearsDishwashers: 9 yearsMicrowaves: 9 yearsGas ranges: 15-17 yearsElectric ranges: 13-15 yearsFreezer: 10-20 years

Example

Let’s say a new homeowner named Sam moves into a home with an ugly refrigerator. The problem is, it’s only 3 years old. If Sam allows the refrigerator to live out its life, they’ve got another 10 years or so with that stinking thing. The refrigerator Sam really wants is on sale for $2,300. Sam sells the old refrigerator for $300 and takes the additional $2,000 from their savings account to buy the model of their dreams.

Even though Sam pays cash for the refrigerator, it costs them nearly twice as much in the end. Here’s how:

Sam takes $2,000 out of their bank account. They already have an emergency fund in place, so they’re comfortable with the decision.But what would have happened if Sam had invested that $2,000 instead? Say Sam opened an IRA, deposited $2,000, and never made another deposit. If that account earned a (realistic) average annual return of 7%, Sam’s balance would be just shy of $4,000 in 10 years — about the time the ugly old fridge would have died. Due to “opportunity cost,” the refrigerator ended up costing Sam twice as much as expected.If Sam waited until the first refrigerator died instead, they would have $4,000 extra dollars. Even after Sam purchased a new model, they would be money ahead.

2. Poor return on investment (ROI)

When a homeowner decides to put their house on the market, one of the first things they want to know is how much money they’re likely to walk away with. Their second concern may be the competition and whether their home will stand out in comparison.

Even if it’s the first time a person has sold their home, they’ve probably seen enough HGTV to realize how important kitchens are to potential home buyers. For example, the Zillow Group Consumer Housing Trends Report 2018 showed that 58% of buyers thought it was “extremely” or “very” important to find a house with their preferred style of kitchen. That puts a lot of pressure on a homeowner whose kitchen is equipped with not-so-modern appliances.

And then some people simply believe that outfitting their home with new appliances will dazzle potential buyers so much that it will set off a bidding war. While that could happen, it is unlikely.

Example

On average, new appliances provide an ROI of 60% to 80%. For the sake of illustration, let’s say our friend Sam decides to sell their home but wants to spiff the kitchen up first with new appliances. Sam goes with average-priced appliances. Here’s how much Sam spends:

New refrigerator: $2,000New dishwasher: $1,000New microwave: $300New gas range: $1,000

In total, Sam spends $4,300 to outfit the kitchen with new appliances. If Sam’s ROI is average, they’ll end up recouping somewhere between $2,580 and $3,440.

Unless the existing appliances are truly wretched or non-functioning, it rarely makes sense to install new appliances with any expectation of breaking even.

In today’s market, with homes practically snapped up the moment they hit the market, it makes even less sense to pour more money into prepping a house than necessary.

What if an appliance is not working?

The rule of thumb is this: If the appliance is more than halfway through its expected lifespan and repairing it will cost more than 50% of the cost of a new appliance, it makes sense for your finances to replace it.

The rules go out the window if there’s a safety issue. For example, if a stove leaks gas or an appliance becomes a potential fire risk, do what you need to do to protect your household — even if that means replacing it before you expected to.

There’s nothing cheap about being a homeowner. In fact, the true cost can be eye-opening. At some point, it helps to see your home for what it is — one of the largest financial investments of your life.

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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.Dana George has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Zillow Group. The Motley Fool has a disclosure policy.

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Investing a modest sum of money can yield great results if you give yourself a long enough window. Read on to learn more. 

You might think it’s just a select few retirees who are able to kick off their golden years with $1 million or more in savings. But data from Fidelity finds that a fairly large number of people are retirement millionaires.

As of the second quarter of 2023, a good 378,000 employer-sponsored 401(k)s had a balance of $1 million or more. Meanwhile a little more than 349,000 IRAs had $1 million or more in assets.

If you’re eager to retire as a millionaire, you might assume it’s going to take a super-large salary to get there. But actually, if you have time on your side, then you might manage to become a retirement millionaire without chasing a six-figure job. The key is to simply get into the habit of saving and investing for that milestone as soon as now.

Commit to your IRA or 401(k) in 2024

A lot of people who end up millionaires in retirement aren’t wealthy throughout their careers. Instead, they’re modest earners who commit to saving for the future over a long period of time.

If you’ve yet to start funding an IRA or 401(k) plan, then make 2024 the year you start. You may be amazed at how much wealth you can grow if you contribute to that account steadily over several decades.

Let’s say your goal is to retire in 2054 with $1 million to your name. Want to know what monthly contribution to a brokerage account it might take to get there? It’s $507, provided you start in 2024.

Of course, this makes an assumption — that you’re going to invest your long-term savings in stocks, and that your portfolio is therefore going to deliver an average annual return of 10%. That 10% isn’t just an arbitrary number, though. Rather, it’s consistent with the stock market’s average over the past 50 years.

The longer you wait, the harder it gets

Coming up with $507 a month for retirement savings purposes won’t necessarily be easy. But if you earn $50,000 a year, you’re basically saving 10% of your income. If you earn $75,000 a year, you’re saving more like 8%. The longer you wait to begin funding your IRA or 401(k), though, the more money you might need to part with on a monthly basis to reach that $1 million savings target.

Let’s say that instead of beginning to save and invest for retirement in 2024, you begin 10 years later. When you narrow your window to 20 years instead of 30, a contribution of $507 a month only allows for a balance of about $349,000, assuming the same 10% return as above. If you’re getting a 10% return on your money and only have 20 years to build wealth, it’ll take a monthly contribution of $1,455 to get to $1 million.

That’s a lot of money to save on a monthly basis. It’s also more than you’re allowed to contribute to an IRA. And unless you’re a super high earner, it’s probably not feasible.

So rather than fall short of your goal or put yourself in a position where you might have to part with a third of your paycheck to meet it, start saving and investing for retirement ASAP. You’ll be thankful you did in the long run.

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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 positions in Target. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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