Money Management

If you know exactly where you want to shop, buying an unwanted gift card in advance could help you save. Here’s how it works. 

If you’ve been buying gift cards at their face value — exchanging, for instance, a $50 bill for a gift card worth the same — you might be doing it wrong.

While it’s rare to get a discount on a new gift card, it’s not uncommon to snag a deal on a used gift card. These “unwanted” gifts can be found on secondary gift card markets and could save you 25% or more off the card’s face value. If you’re curious, here’s how it works.

How to find the best unwanted gift cards

In my experience, the two best tools for finding used gift cards are CardCash and Raise.

CardCash and Raise have a large selection of gift cards and include popular retail stores (like Target, lululemon, and Walmart) and restaurants (such as Starbucks, Chipotle, and Jimmy John’s). Each one has an app you can download onto your phone, as well as a website for desktop browsing.

The way they work is simple. You search for a brand or store name to kick things off, like Apple or Barnes & Noble. CardCash or Raise will then show you a list of gift cards with various values, price tags, and discounts. You can add gift cards to your shopping cart, and then pay with a credit card to have them delivered to you.

Both CardCash and Raise have policies that ensure your gift cards actually work — or you get your money back. CardCash guarantees your gift cards will work for 45 days after your date of purchase, while Raise gives you a full year.

Both websites let you organize their full selection of gift cards from highest to lowest discount, helping you spot some killer deals. For instance, right now, the highest discounts on Raise include the Richard Petty Driving Experience (48.1% off), Pinkberry (32.8%), and Ruby Tuesday (32.3%), while CardCash’s best discounts include Restaurant.com (75%) and Restaurants Unlimited (33%).

You can also look up brands or stores individually and organize available cards in the same way. For example, if I search for AMC Theatres on CardCash right now, I see the best value is 13.8% off a $10 gift card, which puts the final price at $8.62. It also tells me there are 25 of these $10 cards in stock, so if I wanted to purchase $50 worth, I would only spend $43.20.

Finally, it pays to compare gift card discounts between CardCash and Raise, as one will often have a better deal than the other. For instance, if I were to buy a $50 AMC gift card from Raise right now, I would spend $44.90 — a 10.20% discount. That’s not bad, but CashCard is more than $1 cheaper.

Buying unwanted gift cards can save you more than gift card bundles at Costco

A little-known perk of a Costco membership is that you can save money on gift card bundles. You often have to buy them in higher denominations — usually a minimum of $50 to $100 — but Costco typically adds in 10% to 30% of value. For instance, it sells $500 Southwest gift cards for $449.99, which is like getting it for 10% off.

Costco’s gift card bundles can save you more than buying them off a secondary market. But, more often than not, you’ll find gift cards cheaper on CardCash and Raise.

For instance, you can find a $500 Southwest gift card on Raise for $438. In contrast, CardCash sells the same valued gift card for $477.50. The benefit of buying them from a secondary market, however, is that there are no restrictions on how many gift cards you could buy, whereas Costco always has a limit per membership.

Ultimately, you could leverage all three to ensure you never pay full price for a gift card. All in all, it could be an efficient way to save money, especially if you’re shopping at the stores whose gift cards these companies are selling.

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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 positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy.

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If you add an extra year to your personal loan repayment period, you’ll pay a lot more interest. See how much it could cost you to delay repayment. 

A personal loan is a flexible borrowing option. Many lenders offer personal loans, and you can usually borrow as little as $1,000 or as much as $100,000 depending on your needs, your financial credentials, and which lender you choose.

You will also have a choice of loan terms as well. That means you can decide upfront how long you want to take to pay back your loan. Many lenders offer options like a five-year, seven-year, or even a 10-year repayment timeline.

A longer repayment timeline has one big benefit: lower monthly payments. But it often comes with a higher interest rate, and you will of course pay interest for a longer period of time. So, if you’re thinking of opting for a loan with a longer payoff schedule, it’s important to calculate how much extra money will come out of your bank account if you choose this option.

Here’s how much adding an extra year onto your loan repayment timeline could cost you

If you’re considering adding an extra year onto your loan repayment term, you will pay more over time both because you can expect a slightly higher rate and because of the extra time it will take to become debt free.

The table below shows an example of just how much of an impact this can make if you took out a $10,000 personal loan and you paid it off in three years versus four years. It’s based on loan rate estimations for a well-qualified borrower.

As you can see, if you take an extra year to pay back your loan, you would end up paying $720 more in interest over the life of the loan. And you would get stuck committing a good portion of your income to a monthly payment for a whole extra 12 months, which is a pretty long time. So, while your monthly payment is $64 lower, you are paying a big price to have that reduced payment.

And the more you borrow, the more an extended repayment term will cost you. For example, if you took out a $50,000 loan with the same three- or four-year repayment term options, you would save $319.84 on monthly payments with the longer loan, but your total interest paid would rise from $6,800 to $10,400.

Should you choose a loan with a longer or shorter payoff time?

If you can afford the higher monthly payments that come with a shorter personal loan repayment period, you should usually opt to take the least amount of time possible to pay off your personal loan. You don’t want to commit to making monthly payments for longer than necessary or make your borrowing any more expensive than it has to be.

At the same time, you don’t want to get in over your head and agree to take on a personal loan that comes with monthly payments you’ll struggle to make. So, take a close look at your budget, see how much you can afford to devote to debt payoff, and choose the shortest personal loan repayment period that won’t cause you to stress each month about whether the payments are within reach.

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.

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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This writer accomplished a few cool things this year, financially speaking. Read on to see what they were. 

From a financial standpoint, 2023 was a year full of ups and downs. For example, I encountered issues with my car recently that cost money to fix, and we finally had to replace my husband’s car at just about the worst time to get a new one, given vehicle prices.

On the other hand, a few things went right for me in 2023. But those mostly happened through a massive effort on my part. Here are my three biggest wins for the year — and how I made them happen.

1. Adding more to savings despite a major home repair

This fall, my husband and I had to replace our home’s two heating units. This was an unexpected repair because a year prior, both units had checked out perfectly fine during our annual heating maintenance appointment.

This year, several major issues were uncovered. And given the age of our units, replacing them and getting a 10-year warranty made more sense than sinking thousands of dollars into a repair.

Despite having to dip into our savings account to the tune of $12,000 to cover that repair, my savings managed to grow in 2023. Granted, my balance didn’t grow as much as I would’ve liked it to. But I’ve also been working more hours and taking on extra projects to replenish the $12,000 I removed this fall. And so far, I’ve made good progress.

I won’t be able to put back the entire $12,000 by the end of the year. But if I can get halfway there, I’ll be pretty stoked.

2. Maxing out my retirement plan

Saving for retirement is important to me. It’s also not an easy thing for me to do.

I can accept having to maintain an emergency fund because when you own a home and vehicle, you might need that money in a pinch. It’s harder, in my mind, to deny myself things to free up money for retirement because that milestone is so far away.

But still, I pushed myself to max out my solo 401(k) this year. I’m allowed to open a solo 401(k) since I’m self-employed. In maxing it out, I managed to shield a nice chunk of my income from taxes, so it was actually worth it for that reason alone.

If you’re struggling to find the motivation to save for retirement, you may want to remember that the average senior on Social Security today only gets $1,848 a month. Granted, that number could climb over time. But either way, you probably don’t want to end up having to live off of such a low monthly income, so saving now is the key to financial stability later.

3. Maxing out my HSA and not tapping it despite some costly medical bills

My family switched to a high-deductible health insurance plan last year. And since then, we’ve been able to fund an HSA (health savings account).

Like my 401(k), the money that goes into my HSA is pre-tax. I’m able to shield some household income from the IRS (legally, of course).

But the nice thing about HSAs is that unlike FSAs, or flexible spending accounts, they don’t make you spend down your balance year after year. You can invest your unused funds in a tax-advantaged manner and carry your balance forward into a period of life when you may need that money to cover your medical costs more so than you need it now — like retirement.

A good way to get the most benefit out of an HSA is to contribute funds to shield income from taxes, and then leave that money alone for years to enjoy tax-advantaged growth. I managed to leave my HSA untapped this year even though not just one, but both of my daughters wound up with broken bones that involved expensive orthopedist bills.

Because I had my emergency fund to tap, I was able to leave my HSA intact. And that’s why I’ve been pushing to replenish the money I removed for my heating system repair. Sometimes, making a sacrifice like that allows you to benefit from other savings or investment opportunities.

How did I achieve these wins in 2023?

I’m proud that my savings grew in 2023 despite a massive withdrawal, my retirement plan got fully funded, and my HSA didn’t get touched. But let me be clear: The ability to do all of this really boiled down to me working long hours for the majority of the past 11 months and change.

If you have financial goals you’re looking to meet, cutting your spending may not be enough. You might need to take on a second job to boost your income if your current job only pays you a preset salary. But while working more isn’t easy, to me, it’s worth it for the financial upside. You may easily end up feeling the same.

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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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Auto insurance won’t cover routine wear and tear or personal property. Find out what else insurance may not pay for and how to avoid unpleasant surprises. 

Drivers need auto insurance. It is required by law throughout the United States to have certain kinds of coverage. And drivers who don’t have insurance and cause a crash may get stuck paying for the accident victim’s bills out of their bank account, which is likely to be financially devastating.

But, while auto insurance coverage can pay for many losses — with the specifics depending on the coverage chosen — there are some things a policy usually will not cover. Here are a few things that motorists should not expect their auto insurer to cut a check for.

1. Routine wear and tear

Cars have lots of moving parts and, sadly, that means upkeep can be costly. In fact, AAA estimates that the average cost of routine maintenance is about $792 annually. This can include things like oil changes or replacing the brakes.

Unfortunately, auto insurance doesn’t cover any of these routine things that vehicles require. Unlike health insurance, which can pay for preventive care and checkups, auto insurance isn’t there for the day-to-day stuff that is needed to keep the car running. Drivers must pay for these things entirely out of pocket.

2. Personal property inside of a vehicle

A car insurance policy typically provides no coverage for anything inside of a car that’s not part of the vehicle itself. So, if a driver’s laptop or expensive sports gear (or any other personal items) are damaged in an accident or lost because of a car theft, the motorist is on their own to get those items repaired or replaced.

3. Rideshare and commercial use without an add-on

Drivers who use their car for commercial purposes, including working for Uber or Lyft, will not have auto insurance coverage for losses that occur when doing work in their vehicle if they have only a standard policy. They’ll need to get rideshare insurance as an add-on, if their insurer offers it. Depending on the insurer, this could cost anywhere from around $6 to $27 per month extra on top of other auto insurance premiums.

4. Losses above policy limits

Coverage minimums are pretty low in most states. In some cases, drivers only need to buy liability insurance and only buy around $15,000 or $25,000 per person and $30,000 or $50,000 per accident in coverage.

Unfortunately, insurance will not pay for any damages above your policy limits. This means if a driver causes an accident and someone sustains $100,000 in injuries, the insurer might only pay $15,000 — leaving the at-fault driver personally responsible for covering the other $85,000.

Because of this, motorists should make sure they buy enough coverage to protect their assets. Often, this means buying a minimum of around $250,000 or $500,000 in liability coverage and also buying coverages that are not required by law, such as collision coverage to pay for the policyholder’s own vehicle after a crash not caused by someone else.

Now, buying this additional coverage would come at an added cost. A 40-year-old female SUV driver in Florida with a clean driving record would pay around $88 a month for $10,000 per person and $20,000 per accident in bodily injury liability coverage from Progressive, but premiums would jump to around $179 by opting for $250,000 per person and $500,000 per accident in liability coverage. Adding collision and comprehensive coverage with a $250 premium would take the monthly cost to around $254.

While this is quite a bit more money, it can be worth paying to avoid having to cover accident costs entirely out of pocket, should one occur.

Ultimately, every driver should read their insurance policy carefully, or talk with their insurance agent, to find out what exactly their insurance does — and does not — cover. This can help motorists avoid unpleasant surprises by making sure they have the right coverage.

Finally, motorists should also make sure to have some money saved in an emergency fund to cover things like routine wear and tear that insurance won’t pay for.

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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool recommends Progressive. The Motley Fool has a disclosure policy.

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Inflation has been stubbornly elevated in 2023. Read on to see what’s in store for the new year. 

Inflation has been a consistent problem for consumers since mid-2021. But it really came to a head in 2022.

That year, annual inflation, as measured by the Consumer Price Index (CPI), topped out at 9.1% in June. Thankfully, though, it’s been receding nicely since. And as of October, the last reading as of this writing, the CPI was only measuring annual inflation at 3.2%.

It’s worth noting that the Federal Reserve likes to aim for 2% as its annual inflation target. The central bank feels that this level is most conducive to long-term economic stability. And so while 3.2% is a big improvement from 9.1%, it’s fair to say that inflation remains elevated.

But will things get better in 2024? Or will consumers continue to face higher living costs that make it difficult to manage their personal finances and meet their savings goals?

Interest rate hikes have helped

Before we make predictions about inflation in 2024, it’s important to understand why things have improved from mid-2022. A big reason boils down to the Fed’s persistent interest rate hikes.

Since early 2022, the Fed has raised interest rates 11 times in an effort to cool inflation. And those interest rate hikes serve the purpose of making borrowing more expensive for consumers.

To be clear, the Fed doesn’t set consumer borrowing rates directly. Those are up to individual lenders and credit card issuers.

But an increase in the Fed’s benchmark interest rate tends to trickle down to consumer interest rates, making it more expensive to sign personal loans or carry credit card balances. And when that happens, consumers tend to react by spending less. That, in turn, leads to a decrease in demand, which helps bring prices down.

Will inflation cool off completely in 2024?

There’s a good chance inflation will continue to decline in 2024. But that won’t necessarily happen naturally. Rather, what may happen is that the Fed essentially forces inflation closer to 2% with more interest rate hikes.

The Fed has maintained that it intends to monitor economic activity in the coming months to see if more rate hikes are necessary. If the Fed finds that inflation has seemingly gotten stuck in the lower 3% range, it may opt to give things a nudge by raising rates again in the new year.

Of course, this isn’t guaranteed to happen. We may see a gradual cooling of inflation in 2024, as consumers increasingly get fed up with today’s high borrowing costs.

But all told, there’s no guarantee that we’ll get back to 2% inflation in the new year. And you may find that certain costs, like groceries and utilities, remain frustratingly high throughout 2024.

How you can fight inflation

You can take a few steps to cope with that situation, though. First, assess your current bills and dump any that aren’t necessary.

You can treat yourself to a streaming service you enjoy watching. But if you have a second one you only tune into once or twice a month, that’s a service worth dumping to free up the cash.

Keeping your largest expenses on the low side could also mean getting more leeway to cope with increases in variable expenses, like food and medical bills. So if your apartment lease is coming up for renewal, for example, try negotiating a lower rent with your landlord or moving to a less-expensive home if you can do so in an affordable manner (say, by loading up your good friend’s pickup truck with the minimal amount of furniture you have).

The fact that inflation isn’t nearly as high as it was in mid-2022 is a good thing. But it may remain stubbornly elevated in 2024, so that’s something everyone should gear up for. It’s also important to gear up for potential interest rate hikes, in case the Fed decides that enough is truly enough.

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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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Finding great holiday deals online doesn’t have to be a chore. Check out these three methods that make finding holiday deals easy. 

At this point, we’re long past the massive sales events of Black Friday and Cyber Monday. While great holiday deals are still out there, they’re not as “in your face” as they were just a few weeks ago. For the avid shopper, the bargain hunting is on. For the lazy shopper, however, it’s just one more reason to procrastinate Christmas.

If you find yourself more stressed than excited by the prospect of hunting deals online, don’t worry: You don’t have to give up and buy gifts at full price. You can still help your personal finances by making those deals come to you. Here’s how.

1. Shop deals on Chrome

Google recently revamped its search engine for shopping queries in the beginning of November 2023, and I must say — it’s very effective.

Basically, you just need to remember this formula: “shop + (product you want to buy) + deals.” That’s it.

For example, let’s say you want to buy an OLED TV. When you search “shop OLED TV deals,” Google will pull up the best marked-down prices from around the web. The top portion is filled with sponsored ads, which often don’t have the best prices, but scrolling down you’ll see cards with different OLED TVs. The top left-hand corner of each card tells you how much you’re saving, while near the bottom you’ll find shipping charges and reviews.

You can even search for something more general, like “shop funny shirt deals” or “shop Apple deals.” This could become a powerful way to discover new items, not to mention save money on things you want to buy.

2. Get a free browser extension

While we’re on the topic of web browsers, you can also download extensions for them, like Honey or Rakuten. These extensions plug into your browser and work in the background to help you get the best price at checkout.

While you can find plenty of browser extensions, Capital One Shopping is one of the most popular. This extension compares prices across over 30,000 stores and websites to help you find low prices. It can also find and apply coupon codes at checkout, and it sometimes even rewards you with shopping credits, which you can redeem for gift cards later. You don’t have to be a Capital One banking or credit card customer to download it, and you can also remove it if it’s slowing down your browser too much for your liking.

3. Download price comparison apps

Price comparison apps check prices across thousands of websites and stores to help you find markdowns and deals. They’re great if you have a long list of products and want a quick way to locate the lowest prices for each. The apps have a search bar that lets you research prices quickly, while some have barcode scanners that will search for deals from UPCs found in stores.

The apps are free, but it’s best to use several of them in tandem, as they’re not always accurate, nor do they have every website or merchant in their database. Some of the most popular apps include:

Price.comBuyviaShopSavvy

Lazy shopping doesn’t have to cost you

As you can see, you don’t have to be a shopping enthusiast to get the best deals. All it takes is Google and a few apps, and you can discover lower prices for products on your shopping list. Make a habit of using them while you shop, and you might surprise yourself with how much you save.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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