Money Management

Rising wages are a good thing. Read on to see which states are raising theirs. 

The federal minimum wage is currently $7.25 per hour. And unfortunately, it’s been stuck at that level since 2009.

Now, think about the way inflation has driven up the cost of everyday expenses like groceries and gas, utilities, and housing over the past 14 years. Imagine not being eligible for a pay increase to keep up with rising bills.

Unfortunately, that’s the reality a lot of minimum wage earners are facing. The good news, though, is that several states not only have a higher minimum wage than $7.25 an hour, but are raising their minimum wage in 2024. So if you live in one of the following states, you may be in for some relief in the new year.

States that are raising wages

The following is a list of states whose minimum wages are rising in 2024 effective Jan. 1 (unless otherwise noted):

Alaska: $11.73, up from $10.85Arizona: $14.35, up from $13.8California: $16, up from $15.50Colorado: $14.42 (proposed), up from $13.65Connecticut: $15.69, up from $15Delaware: $13.25, up from $11.75Florida: $13, up from $12, to take effect on Sept. 30Hawaii: $14, up from $12Illinois: $14, up from $13Maine: $14.15, up from $13.80Maryland: $15, up from $13.25 for large employers and $12.80 for small employersMichigan: $10.33, up from $10.10Minnesota: $10.85 for large employers, up from $10.59; $8.85, up from $8.63 for othersMissouri: $12.30, up from $12Montana: $10.30, up from $9.95Nebraska: $12, up from $10.50Nevada: $12, up from $10.25 or $11.25 (depending on health benefits), to take effect July 1, 2024New Jersey: $15.13, up from $14.13New York: $15, up from $14.20 (except in New York City, Westchester and Long Island, where it’s $16, up from $15)Ohio: $10.45, up from $10.10Oregon: the $14.20 minimum wage will adjust for inflation on July 1Rhode Island: $14, up from $13South Dakota: $11.20Vermont: $13.67, up from $13.18Washington: $16.28, up from $15.74

In addition, Washington, D.C. has a $17 minimum wage that will adjust for inflation on July 1.

How to find a job that pays above minimum wage

It may be that the minimum wage is rising where you live. But while a modest bump in pay might give you a bit more breathing room, it may not help you pad your savings account and meet your long-term financial goals, like building a retirement nest egg or eventually buying a home. So if you’re eager to get a job that pays beyond the minimum wage, consider the following moves:

Look into free classes that could boost your job skills. You may find some offered at a local library or community center.Network your way into a better job. Talk to friends, neighbors, and former colleagues who have moved on to higher-paying roles and see if anyone can help you get your foot in the door.Try negotiating with your current employer. There may be wiggle room to pay you a higher wage if you’re an outstanding employee with a solid track record. And if that doesn’t work, try to negotiate your way to a higher position that might come with better pay.

You can also specifically try to apply to companies that are known to pay above the minimum wage. Target, for example, announced it would be raising its minimum wage to as much as $24 per hour last year. And as of that announcement, its starting wage was $15.

Meanwhile, you may be surprised to learn that the typical Costco store employee earns close to $26 per hour. So it’s worth dusting off your resume and seeing what other jobs are out there.

All told, it’s extremely difficult to manage expenses if you’re only earning minimum wage. It’s a good thing that multiple states are raising that number in 2024, but you may want to take steps to better your financial picture even in light of that.

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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 Costco Wholesale and Target. The Motley Fool has a disclosure policy.

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You’d think having insurance would make healthcare affordable. Read on to see how that’s not necessarily the case. 

You’ll often hear that it’s a dangerous thing to go without health insurance. If you get injured or need extensive treatment in a hospital or rehab facility, you could be looking at truly catastrophic bills without some sort of coverage in place.

But let’s be clear — having health insurance does not guarantee that your medical care will be affordable. In fact, a good 45% of insured Americans have avoided medical care because they knew or feared their health insurance wouldn’t cover the cost, according to a new survey by Policygenius. And that’s a big problem.

You can’t afford to let health issues escalate

The problem with avoiding medical care is twofold. First, you risk harming your health by letting certain issues fester. And if you don’t seek care early on when something is wrong with your health, you risk allowing that issue to escalate to the point where it’s more expensive to treat.

That’s why it’s really important to set money aside for healthcare expenses. That’s not necessarily an easy thing, but that way, you have funds to tap when that need arises. And you won’t have to risk letting things worsen physically or financially.

The best ways to save for healthcare costs

When it comes to setting money aside for medical costs, you have options. You could just add more money to your savings account. But you may want to contribute to an account that offers you a tax break on the money you put in.

One option there is to put money into a flexible spending account, or FSA. You can then take withdrawals as needed when medical costs arise. Just be careful with an FSA, because these plans usually operate on a use-it-or-lose-it basis and the money you put in doesn’t roll over year to year. If you contribute too much for a given year, you risk forfeiting the unused funds.

Another option to look at is a health savings account, or HSA. These accounts are similar to FSAs, only you don’t have to spend down your plan balance each year. In fact, you’re actually encouraged not to do that if possible, because HSAs allow you to invest your balance in a tax-free manner so it grows into a larger sum over time. The only catch is that with an HSA, your health plan needs to conform to certain rules to qualify. And these can change from year to year.

In 2024, to qualify for an HSA, you need a minimum deductible of $1,600 for self-only coverage or $3,200 for family coverage. Your out-of-pocket maximum must also be limited to $8,050 for self-only coverage or $16,100 for family coverage.

How much to save for healthcare costs

As far as how much to save goes, one benchmark to work with is socking away enough money to meet your health insurance deductible. In the aforementioned survey, 28% of those with health insurance said they can’t afford their deductibles. But if you save that much, you’ll buy yourself some protection — and make it so you won’t have to resign yourself to ignoring health problems when they arise.

Your deductible is the amount of money you have to shell out before your health insurer picks up the tab for your care. You’re not necessarily done paying medical bills for the year once you meet your deductible, but often, from there, your costs aren’t as substantial because your insurance coverage kicks in. So if you’re able to save beyond what your deductible entails, even better. But saving at least the deductible amount is a good start.

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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.
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There are lots of ways to use money to save time throughout the day. Check out the best ways to buy back your time for some helpful ideas. 

There’s not enough time in the day. Many of us have felt that way at one point or another. When you have work, errands to run, and a family to take care of, it can start to feel like you have no time left for yourself.

If you’re in this situation, and you’re doing well with your finances, one of the best things you can do for yourself is finding ways to buy back your time. You could free up hours every week to use however you want, whether that’s starting a new hobby, working on a business, or getting some well-earned rest and relaxation. Here are a few options to consider.

1. Get groceries or meals delivered

Grocery shopping usually takes at least an hour or two per week, and more if you go to the store multiple times. To save yourself a trip to the store, try a grocery delivery service, such as Instacart or Amazon Fresh. They’re easy to use — just add the items you want and choose a delivery time slot.

If you want to save time on shopping for ingredients and cooking, look into meal delivery services. There are lots of companies, including Home Chef, Blue Apron, and Gobble, that offer regular meal kit deliveries.

Some of these meal kits still involve a bit of cooking, but all the ingredients are prepared for you. Others you can just pop in the oven and heat up. And there are always food delivery apps, if you want to swap out a couple of dinners each week with deliveries from a local restaurant.

2. Hire help for house cleaning, laundry, and other chores

Doing chores around the house can eat up a lot of your free time. Depending on the size of your home, cleaning can easily be a two-to-three-hour job, or more. Professional house cleaning for a two-bedroom home costs an average of $100 to $180, according to Angi.

Laundry is another one of those chores that everyone has to do and very few enjoy doing. Instead of spending an hour or more every week on this, look for wash-and-fold services in your area. They’re not that expensive — the average cost is $1.50 to $3.00 per pound of laundry. For less than $20 or $30, you could have all your clothes washed and folded for you, without lifting a finger.

Think about other regular chores that you could outsource, too. For example, if you have a house, you could hire a landscaper to take care of your yard for you.

3. Set up an at-home gym

Going to the gym takes up a lot of time, and not all of it is spent pumping iron. If it takes you 20 to 30 minutes each way to drive to your gym, that’s 40 minutes to an hour per day. If you go four or five days per week, that could be five hours you spend sitting in your car driving there and back.

That’s why an at-home gym could make a huge difference in how much free time you have. You won’t have all the equipment of a commercial gym, but you can buy what you need and add to it as you go.

HomeAdvisor reports that the average home gym costs about $2,000. They generally range from as low as $300 to as high as $15,000, so there’s something to fit almost every budget. Remember that in addition to saving time, you’re also saving on monthly gym dues and gas costs.

4. Book flights with the fewest connections

Flight connections usually add at least an hour to your trip, and it’s often much more than that. More flights to take also increases the likelihood of problems occurring, such as a delay or a cancellation.

It’s well worth booking direct flights when possible. If there isn’t a direct flight, go with the one that has the fewest connections. You’ll spend a little more, but you’ll arrive earlier and you won’t be as worn out from traveling. If you’re trying to keep your flight costs down, look into travel credit cards so you can fly direct and pay with points.

5. Hire an accountant to file your taxes

If filing your taxes doesn’t take too long, you may not need an accountant. But if you’re spending the entire weekend plugging numbers into a tax software, it’s probably better to just hire a professional.

This is especially true if you’re self-employed or have a small business, both of which can make tax filing much more complicated. You may come out ahead financially — a good tax accountant could find deductions that you would have missed. You’ll also have the peace of mind that comes with knowing your taxes are mistake-free.

If you have a to-do list a mile long, you could be taking on too much. Pick out a few tasks you wouldn’t mind outsourcing, and see how you like having them off your plate. You’ll probably enjoy having more time available, and if so, you can continue buying back your time instead of feeling as if you need to do everything.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

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You probably don’t need more than one warehouse club membership. But which is best? Here’s how to decide. 

Having a membership to a warehouse club is an easy call for me. We spend a lot of money on groceries in my household. So being able to buy certain items in bulk helps me save money while keeping my kids fed.

In many areas, you’ll get a choice between joining a warehouse club like Costco versus a competitor like Sam’s Club. I’m loyal to Costco because I happened to start with a Costco membership that’s proven itself to be increasingly valuable to me through the years.

But if you’re new to choosing a warehouse club, you may not have a particular preference. So in that case, how do you choose? Here are some factors to consider.

1. Cost (and included perks)

Sam’s Club is a little less expensive to join than Costco as of this writing. Keep in mind that there’s a chance that either club could opt to raise membership fees in the new year. However, that’s more of a likelihood with Costco than with Sam’s Club since Sam’s last raised fees in late 2022, and Costco hasn’t raised membership fees since mid-2017.

A basic membership at Sam’s Club currently costs $50 per year, while a Plus membership costs $110. With a Plus membership, you get cash back on your Sam’s Club purchases.

At Costco, a basic membership costs $60 a year. An Executive membership, giving you cash back on your purchases, costs $120.

At both stores, the cash back rate is 2% on the items you buy. At Sam’s Club, though, you can only earn up to $500 a year in cash back, whereas at Costco, you can earn up to $1,000.

But to earn even $500 in a year, you’d have to spend $25,000. So this factor alone shouldn’t necessarily influence your decision since you probably aren’t looking to spend that much.

2. Location

Where I live, Costco is about five minutes closer to my home than Sam’s Club. To me, that’s a huge perk, because as a busy working mom, the less time I spend getting to and from the store, the more time I have for other things.

Consider the location of Costco versus Sam’s Club where you live when making your choice. And don’t just go by mileage — also go by traffic.

Perhaps Sam’s Club is eight miles away, while Costco is only a five-mile drive. But if Costco is located on a busy road that tends to get jammed up frequently, then Sam’s may be more convenient.

3. Hours

In my neck of the woods, Costco is open until 8:00 p.m. during the week, while Sam’s Club is open until 8:30 p.m. The 8:00 p.m. closure isn’t a problem for me because I work from home and can sneak out to do my shopping during the day. In fact, I prefer to do that, because I’m usually busy tending to my kids in the evening.

But pay attention to operating hours if your schedule is tight or you tend to work late. If you have both Costco and Sam’s Club in convenient locations based on where you work or live, you may want to go with the store whose hours better suit your schedule.

Of the three factors above, the cost of a membership should probably carry the least amount of weight as you’re making your decision. You’re talking about a $10 difference during the year. So unless money is super tight, you’re probably better off focusing on the other two factors, since they’ll help shape your shopping experience.

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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 premiums are up 19% in 2023 and will likely continue to rise in 2024. Find out what’s driving the increase and how to save on auto insurance. 

If you own a car, you probably need auto insurance. Drivers are required to carry car insurance in 49 out of 50 states — with New Hampshire being the exception.

But auto insurance is getting significantly more expensive. In August, the average cost of car insurance was up 19% year over year across the U.S. — the steepest annual increase since 1976. Unfortunately, insurance rates will probably keep rising in 2024. Here’s why your auto insurance bill keeps going up — and what you can do about it.

1. Cars are getting more expensive to repair

Auto insurance companies have struggled with inflation just like the rest of us in recent years. But the costs of repairing a car have been rising much faster than overall inflation, according to a June 2023 report by the American Property Casualty Association.

Cars are getting more complex, which drives up the cost of labor for repairs. The costs of replacement parts and equipment have also outpaced inflation.

While used car prices have started to cool off from their pandemic highs, they were still up nearly 40% in April 2023 compared to September 2019. Insurers calculate a vehicle’s actual cash value when determining whether to repair a vehicle or declare it a total loss. Because used vehicle prices remain elevated, insurers ultimately have to pay out more to repair or replace a vehicle.

2. Injury claims are also getting more expensive

The same report found that the soaring cost of bodily injury claims is a factor in surging insurance rates. That’s partially due to the fact that costs of hospital and medical care tend to rise at a higher rate than overall inflation.

Insurers also report a run-up in median lawsuit values. Between 2019 and 2020, the median personal injury judgment spiked by nearly 25%. Inflation as measured by the Consumer Price Index (CPI) was just 3.1% for the same period.

3. Drivers are engaging in riskier behavior

Sadly, traffic fatalities spiked in recent years. Though car-related deaths are on the decline, people are still dying on the road at higher rates than they were prior to the pandemic, which causes insurance costs to increase.

There are a few explanations for why roads have gotten deadlier. According to AAA, more people reported engaging in risky driving behaviors — like driving more than 15 mph over the speed limit on the freeway, reading emails or texts behind the wheel, and even driving when they knew they were probably legally drunk — in 2021 compared to 2020. Changes in policing, including less traffic enforcement, is another possible factor.

4. Severe weather is growing more frequent

A rise in extreme weather events, like hurricanes, floods, and wildfires, is likely also fueling the surge in insurance premiums, particularly in vulnerable states. Florida, for example, is now the most expensive state for auto insurance after the major losses carriers experienced in 2022 from Hurricane Ian.

Some insurers are pulling out of risky states, allowing those that stay to raise their premiums. Insurers are also increasing costs for their reinsurance, which is the insurance that insurers purchase so that they don’t have to pay full claim costs, and passing the extra expense to customers.

How to save money on car insurance (and one thing to avoid)

While car insurance rates are unlikely to drop in 2024, there are still plenty of ways to save money on auto insurance. For example, the best auto insurance companies typically offer a range of discounts for factors like maintaining a good driving history or taking a defensive driving course. It’s also usually a good move to obtain quotes from multiple carriers a few weeks before your policy renews to make sure you’re getting the best deal.

Another way to save money on premiums is by increasing your deductible. But make sure you have enough money in your emergency fund to pay the higher deductible if you go this route.

One thing you want to avoid: lowering your liability coverage. If you’re responsible for an accident where the damages exceed your coverage, you can be personally sued for the difference. You can never have enough auto insurance in the event of a catastrophic crash. But maintaining higher liability coverage offers financial protection in a worst-case scenario.

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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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Want to boost your savings this month? Read on to see how that’s possible when you’re facing holiday expenses. 

December is one of the trickiest months of the year to save money. The reason? It’s when holiday expenses tend to come to a head.

But you might be able to take some steps to save money outside of your holiday purchases this month. Here are a few moves to consider.

1. Renegotiate your cable or home service bill

When you’re quoted a price for a given service, you may be inclined to just accept that price. But you’d be surprised at the amount of negotiating power you have in certain instances.

Take cable, for example. Cable companies are aware that consumers are increasingly cutting the cord to save money and switching to streaming content instead. If you’re paying $135 a month for your cable package, it could pay to call your provider’s customer retention department and express that you’re looking to cancel due to the cost. It might offer to reduce your rate to $105 for, say, the next year.

The same might hold true for the home services you pay for. The gutter cleaning service that charges $165 for 20 minutes of work? Contact them and see if there’s wiggle room to bring the cost down to $155. If the company doesn’t want to lose your business, it might agree to a modest discount.

2. Set your cellphone bill to autopay

When you have bills you’re responsible for monthly, sometimes, setting them to autopay can make your life easier. That way, there’s one less payment you have to think about. But in certain situations, autopaying bills can also save you money.

Many cellphone providers offer a discount for putting your service on autopay. T-Mobile, for example, gives you a $5 credit each month for automatically paying your bill through a checking account. You won’t get that discount, however, if you pay using a credit card.

3. Be strategic with utilities

Utility bills can be a huge expense. But if you’re strategic with your usage, you can lower your costs.

First, be mindful of electricity. The simple act of unplugging certain appliances, like your toaster oven, when you’re done using them can result in modest but meaningful savings over time.

Next, be careful with your heat usage. Turn down the thermostat at night when you’re bundled under the covers, and try to remember to turn down the heat when you’ll be out of the house for the day.

Finally, resist the urge to spend 30 minutes in the shower. The hot water might feel nice on a cold winter morning, but the ensuing water bill will really sting. Instead, give yourself a time limit. Incidentally, long, hot showers might be good for the soul — but they can dry out your skin in a serious way.

Any dollar you’re able to save is a dollar you’ll have on hand for a rainy day. So it pays to take these steps to bank some extra cash this December — and set yourself up with more money going into 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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