Money Management

Travel costs are typically higher than usual around the holidays. But you can still save money on last-minute holiday travel costs. Find out how. 

During the last few weeks of the year, many people travel to visit family and friends for the holidays. It’s likely no surprise that travel expenses can be more costly around the holidays because of increased demand. But that doesn’t mean you must go broke when traveling this time of year. Let me suggest a few unexpected ways to save on holiday travel.

1. Consider getting a new credit card to meet a welcome offer

Many credit card issuers promote welcome offers to attract new cardholders. You could earn a sizable cash back, points, or miles bonus when getting a new credit card if you meet the minimum spend within the required timeframe.

When you anticipate making more costly purchases, like planned holiday travel reservations, it can be easier to meet minimum spending requirements quickly. If you still need to book an expensive flight or hotel stay for the upcoming holidays, this may be a strategy worth using. But make sure you allow enough time for your new credit card to arrive.

Once you earn your welcome offer, you may be able to pay yourself back as a statement credit, which could reduce your credit card bill. Some credit cards allow cardholders to redeem their rewards for cash back to their bank accounts.

But before adding a new credit card to your wallet, consider whether you can comfortably afford to meet the minimum spend and pay off your bill without incurring costly interest. It’s also wise to learn how the card earns rewards, so you have a plan for how to redeem your welcome offer rewards before you apply for the card.

2. Travel on the actual holiday

For many people, it’s preferable to arrive at their destination at least a day or two before the holiday. But that can be expensive and stressful, because most travelers have the same idea. If you’re open to the idea of traveling on the actual holiday, it could offer significant savings, especially when it comes to airfare costs.

If you’re celebrating Christmas with far-away friends, this year could provide the perfect opportunity to do this since the holiday is on a Monday. Arriving on Monday and then staying for a few days after Christmas could be much cheaper than arriving the weekend before.

If you still need to buy an airline ticket, it’s worthwhile to research prices to see if you can keep more money in the bank with this strategy. Using a flight price comparison tool like Google Flights offers an easy way to compare multiple flight options quickly.

3. Review credit card offers before making a last-minute reservation

I’m a big fan of credit card offers. You can use programs like Amex Offers and Chase Offers to activate money-saving deals.

Recently, I’ve seen several offers for popular hotel chains. After activating an offer and using your credit card to pay for your stay, you could get a discount on the total cost of your booking. You will likely be required to book your stay directly with the hotel.

You must use an eligible credit card to pay for your hotel stay. Usually, a discount will be provided as a statement credit to your credit card account. This could be an excellent way to get a better deal if you must make a last-minute hotel reservation during the holiday season.

It may take time for a statement credit to hit your account. It’s best to review the offer details for more information. In the long run, this strategy could offer savings.

Get creative when looking for ways to save on holiday travel

If you’re traveling during the busy holiday season, expect higher prices. But don’t assume you must skip traveling for the holidays. Think outside the box to find ways to save money on travel costs. For more ways to save money, check out our personal finance resources.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and JPMorgan Chase. The Motley Fool has a disclosure policy.

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Net worth is an important measure of your financial health. Check out the best ways to boost your net worth in 2024. 

Your net worth is a measure of your total wealth, and it’s a good way to see how you’re doing financially. To calculate yours, take the value of your assets and subtract your debts. For example, if you have $25,000 in savings and investments and $5,000 in debt, your net worth is $20,000.

As a general rule, if your net worth is going up, it’s a sign you’re on the right track with your finances. A higher net worth often corresponds with more financial stability, and it could also mean you’ll be able to retire earlier. That makes increasing your net worth a great goal for just about anyone, and there are several ways to make it happen in 2024.

1. Make saving and investing automatic

One of the most common recommendations for improving your finances is saving and investing money every month. For example, you could put $250 in your savings and $250 in your investments. If you set aside money this way, then your net worth will likely go up.

You could do this yourself. But a more convenient option is to automate your savings and investments. Set up automatic transfers to your savings account after you get paid every month. Do the same with your investments, whether that’s through a brokerage account, retirement accounts, or both.

2. Invest in the stock market

Setting aside money is a smart financial habit, but it’s also important to grow your money. Arguably, the most effective way to do that is by investing in stocks. The stock market has its ups and downs, but on average, it has grown about 10% per year going back decades.

Let’s say you invest $500 per month and get an 8% annual return. After 40 years, you’ll have over $1.55 million. You’ll have contributed $240,000 of that, meaning over $1.3 million of that total is returns earned through investing.

If you’re looking for an easy way to invest, check out total stock market exchange-traded funds (ETFs). These allow you to invest in the entire U.S. stock market with a single investment.

3. Raise your income

An above-average income makes it much easier to pay your bills and build your net worth. If you’re able to get a $5,000 or $10,000 raise in 2024, that’s a lot more money that you can save, invest, and use to enjoy life.

The best way to increase your income will depend on your current job situation. Here are a few options to consider:

Talk to your manager at work about what you can do to move up in the company and get a raise.Be on the lookout for job opportunities, including promotions at your current workplace and new jobs elsewhere.Offer freelance services in something you do well, such as web design or writing.If you have enough free time, get a side hustle, such as driving for a ride-hailing service or making deliveries.

4. Manage your debt well

Debt is a major factor in your net worth. When you take on debt, it lowers your net worth. It also costs you interest and ties up some of your money in monthly debt payments.

Not all debt is bad. If you want to buy a home, you’ll most likely need to get a mortgage. This can help your net worth if the home you buy increases in value over time. And if you need to buy a car, you may need to finance it using an auto loan.

It’s unnecessary and high-interest debt that holds you back financially. Here’s how to manage debt:

Pay off credit card debt and other high-interest debt as quickly as possible.Only go into debt for assets that could increase in value (a home) and purchases you need (a car, medical treatment, etc.).Work on building and maintaining a high credit score so you can get the lowest possible interest rates.Plan ahead and save up for big purchases instead of borrowing money for them.

5. Don’t overspend on your biggest monthly bills

It’s hard to increase your net worth if you’re spending 90% of your income on bills every month. A good guideline is to spend 50% to 60% of your income on essential bills.

Personally, I don’t like to micromanage expenses, and I don’t think it’s a good use of time. Occasionally spending $10 on a coffee and a snack isn’t going to have a huge impact on your finances. I recommend focusing on your biggest monthly bills instead. For most people, these are:

HousingFood, including groceries and eating outTransportation (usually owning a car and all its costs)

If you spend more than you can afford on your rent or mortgage, food, or car, you’re putting your life on hard mode. But if you keep your spending reasonable in those areas, you probably won’t have a problem saving money.

It’s exciting to see your net worth go up. If you follow those tips, you’ll see a big increase in your net worth in 2024.

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You can find some of the most sought-after tech on sale at Costco right now. Take a look at some notable deals. 

Most of us know a techie who is all about the latest and greatest electronics. Unfortunately, “latest and greatest” is often code for “super expensive.” Without careful shopping, your finances could be in a fix by the time your list is done.

That’s one of the reasons we like shopping at Costco. Not only are the deals great, but even its regular prices on tech can be highly competitive. Here are some hot gifts for techies to pick up right now.

1. DJI Mini 3 Pro Drone Bundle: $699.99

This drone is a solid start or upgrade for the techie in your life. The footage it takes looks pretty awesome, and reviews suggest it’s easy to operate. This bundle gives you the DJI Mini 3 Pro drone, as well as extra batteries, a charger, and an SD card.

Sale ends: 12/24/23

Normal Costco price: $839.99

Comparable deals: This is the best price I found on this particular bundle. The same model — without the extras — is currently $759 on DJI’s website. If you’re after the Mini 3 Pro with the upgraded controller (it has a screen), the best price I saw, at the time of writing, was $767.99 on Amazon.com. No extra batteries or anything, however.

2. iPad Pro 11-inch, Wi-Fi (4th Generation, 2022): $699.99

This is the current generation of the iPad Pro, so you can pick up the latest tech, complete with M2 Chip, an ultra-wide camera, and ultrafast Wi-Fi 6E. The sale price listed here is for the 128GB model, but you can get the same $50 discount on all three sizes.

Sale ends: 12/24/23

Normal Costco price: $749.99

Comparable deals: I haven’t found a better price on this model anywhere. Even the regular Costco price is lower than most other retailers are offering. And yes, that includes Apple itself, which sells this model for $799.99 on its website.

3. Bose SoundLink Flex SE Bluetooth Speaker: $99.99

Bose products are famous for their sound quality and longevity, and reviewers agree that this portable speaker really delivers. The listing promises up to 12 hours of battery life per charge.

Sale ends: 12/24/23

Normal Costco price: $129.99

Comparable deals: I found the same deal on Sam’s Club’s website, so dual members can choose where to buy. The next best price was the same across multiple retailers, including Bose.com, where it’s currently on sale for $119. (The normal price on Bose’s website is $149.)

4. Belkin 3-in-1 Wireless Charger with MagSafe Charging 15W: $79.99

This thing will simultaneously charge your iPhone (12 or newer), as well as your watch and AirPods. Note that there are two models of this charger floating around with similar listings; the other is called “3-in-1 Wireless Charger with Official MagSafe Charging 15W.” The other model charges 33% faster for iPhone 7 and newer.

Sale ends: 12/24/23

Normal Costco price: $109.99

Comparable deals: This is the best price by a long shot. The next best would be Costco’s non-sale price of $109.99. After that, the best price I could find was Belkin’s own website, where you can pick it up for $112.49 after applying the provided discount code. If you’re heading to Belkin, however, look for the one with “Official Magsafe” in the listing; it will give you the faster charging speed at the same $112.49 price (after the code).

Costco’s electronics return policy

Costco is known for its excellent return policy. But that policy isn’t without limits, especially when it comes to electronics. Specifically, most electronics are only returnable within 90 days of when the member received the item. This applies to everything from TVs and computers to appliances and cameras.

To warranty or not to warranty

Many retailers offer various protection plans or extended warranty plans, looking to sell you a bit of peace of mind. While these can be handy, they’re often unnecessary expenses (and they can be quite expensive).

Instead of paying extra, just choose the right credit card to pay in the first place. Many great cards offer extended warranty protections on your card purchases.

If you’re shopping in-store at Costco, you’ll be limited to using only Visa credit cards. If you’re shopping online at Costco.com, you can also use your favorite Mastercard credit cards with warranty coverage.

Bright and merry

It’s hard to stay on budget when you have a techie on your gift list, since so many of the hottest electronics are darned expensive. But at least with these Costco deals, you know you’re getting the best price for the product. And if that doesn’t make it a happy holiday, I don’t know what would!

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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. Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, Costco Wholesale, Mastercard, and Visa. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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The U.S. economy held steady in 2023. Will things take a turn for the worse in the new year? Read on to find out. 

For much of 2022, consumers were told the same story — gear up for a 2023 recession and prepare for the economy to get worse. But now that we’ve made it to the final month of the year without an economic downturn, it’s pretty fair to say that we’ve officially avoided a 2023 recession.

But will things change in 2024? That’s the big question.

Recently, JPMorgan CEO Jamie Dimon took it upon himself to issue a recession warning for the new year. And he’s not the only one.

Other financial experts have cautioned that economic conditions could worsen in the new year. And much of that will depend on how inflation tracks.

Things could hold steady, but they could also get worse

While the U.S. economy is looking good right now, it’s hard to say how things will shake out in the new year. And part of that will hinge on whether inflation continues to cool or not.

The Federal Reserve has been fighting inflation with a string of interest rate hikes. Since March of 2022, the central bank has raised the federal funds rate 11 times. That’s driven the cost of borrowing up across the board so that now, consumers are paying more for everything from auto loans to personal loans to home equity loans. Consumers with credit card balances are also being hit hard, as many have seen the interest on their debt increase, too.

The Fed paused interest rate hikes during its last two meetings. But with another meeting still on the books for 2023, there’s a chance that the Fed will opt to raise rates once more before 2024 comes to a close.

And even if that doesn’t happen, the Fed could always opt to raise interest rates in the new year if inflation doesn’t trend in the right direction.

In fact, just recently, Federal Reserve Chair Jerome Powell was quoted as saying, “It would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease…We are prepared to tighten policy further if it becomes appropriate to do so.”

In other words, the Fed isn’t committed to being done with interest rate hikes. And they could come back into the fold in 2024. If that happens, and it causes a major pullback in consumer spending, then that alone could be enough to fuel a recession in the new year.

Prepare just in case

It’s definitely too soon to sound alarms about a 2024 recession. But it’s also a good idea to prepare for one in case economic conditions do worsen.

The best thing to do in that regard is build an emergency fund, or boost your existing one. Aim for three months’ worth of living expenses in your savings account at a minimum, and if you’re able to save beyond that, even better.

It’s also a good idea to try to diversify your job skills and income. Recessions can lead to job losses across a range of industries. The more skills you bring to the table, the more employable you might be at a time when jobs aren’t as available.

Along these lines, you may want to consider participating in the gig economy in early 2024. Doing so could help you in a couple of ways.

First, it could make it easier to build up that emergency fund. But also, if you establish yourself in a gig position and your main job is compromised in the course of a recession, you’ll potentially have that side gig to fall back on.

So just as an example, let’s say you work in marketing but take on a side gig caring for pets. If you end up getting laid off, you might be able to go from 10 hours of weekly pet care to 20 while looking for a new full-time position, thereby easing some of the strain on your finances.

Many people are no doubt relieved that we’ve pretty much made it through 2023 without a recession. But 2024 is still a bit up in the air. So while you don’t need to spend time actively worrying about an economic decline in the new year, you should take steps to prepare for one as best as you can.

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You don’t need a budget to meet your savings goals. Read on to see how I was able to pull that off. 

When my husband and I moved in together and combined finances, one of the first things we did was sit down to map out a household budget. That budget then evolved through the years as we took on added expenses, like child care.

But essentially, we used to have all of our bills mapped out on a spreadsheet. We had a certain amount of money allocated to our mortgage payment, another line item for gas and tolls, another for groceries, and so forth.

It was a reasonable system, and it worked fairly well for us. Basically, if we stuck to our budget, we’d have a certain amount of money left over for our savings account every month.

But a few years back, my husband and I decided it was time to ditch our budget. And thankfully, that hasn’t hurt us financially.

Another way to stay on track with your financial goals

Following a budget is a good way to keep your spending in check. And if you do that, you’re more likely to be in a position where you can add money to your savings at the end of the month.

But the reason my husband and I stopped budgeting is that we frankly found it too restrictive. Let’s say that in a given month, we had $800 allocated to groceries. Well, what if rising food costs or extra houseguests put us at $840? Suddenly, we had to go into our spreadsheet and actively take that $40 out of another category.

That felt like an annoying step considering that we were generally saving hundreds of dollars a month. So rather than stick to a budget that would allow us to add to our cash reserves at the end of the month, what we did instead was start sending money into our savings at the beginning of the month.

It’s called an automatic transfer, and you can usually set one up out of any checking account. We decided on an amount we wanted to save every month and had that amount land in our savings right off the bat. From there, we were free to spend the rest of our money, and it didn’t matter how we spent it. And that’s been a lot easier.

A savings approach you may want to try

Although my husband and I don’t stick to a strict budget anymore, we still have a really good sense of what our recurring bills look like. We also have a good handle on our variable expenses.

A Mint survey conducted a few years back found that 65% of Americans weren’t particularly aware of their spending. If that sounds like you, then you may want to at least set up a loose budget just so you can see where your money generally goes month after month.

But you should also know that you’re not doomed to fall short of your financial goals if you don’t want to budget. If you automate your savings instead, you can stay on track without having to keep your receipts to see how much you spent at the supermarket or gas station.

Of course, these days, there are plenty of budgeting apps that could make tracking your spending a lot easier. So before you give up on budgeting completely, you may want to give one of them a try. But if you’ve dabbled in the world of budgeting before and have decided that it’s just not for you, don’t sweat it if you’re able to put your savings on autopilot instead.

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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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Will the economy thrive in 2024 or worsen? Read on to see what may be in store. 

At this point, it would be more than fair to say that 2023 ended up being a pretty good year for the economy. Inflation cooled, unemployment remained low, and the economy (as measured by gross domestic product) grew nicely. Despite many financial experts calling for a 2023 recession, the economy has been anything but sluggish this year.

But what’s in store for 2024? Without a crystal ball, we can’t say for sure. But here are some predictions based on what we know so far.

GDP could slow and unemployment could rise

During the third quarter of 2023, gross domestic product (GDP) rose 5.2% on an annual basis. But the Federal Reserve Bank of St. Louis expects GDP growth to slow in 2024. It also anticipates a modest uptick in unemployment in the new year.

Before you panic, though, realize that this does not necessarily mean the U.S. economy will enter a recession in 2024 — even though some financial experts are still cautioning that might happen. The aforementioned projection still calls for relatively low unemployment, even if current levels rise.

Inflation will be the big wild card

As of October, annual inflation, as measured by the Consumer Price Index (CPI), was 3.2%. That’s still a notable notch above the 2% inflation rate the Federal Reserve likes to target in the long run.

Inflation will no doubt play a big role in shaping the economy in 2024. And right now, it’s hard to say whether inflation will hold steady at or around its current level, rise, or continue to cool.

Now, interestingly enough, inflation is actually a sign of a healthy economy. That’s because it stems from there being more demand for goods and services than there is supply.

But the Federal Reserve wants to see inflation continue to fall. If it doesn’t, the central bank might opt to raise interest rates the same way it did numerous times last year and earlier this year.

Those interest rate hikes could do the trick of bringing inflation back down to 2%. But they could also cause damage to the economy.

When interest rates rise, consumers tend to face higher borrowing costs for everything from credit card balances to auto loans. And if more rate hikes come down the pike, consumers might cut their spending to avoid taking on such high interest rates.

That could narrow the gap between supply and demand that’s been causing inflation to remain stubbornly high. But it could also fuel a broad economic downturn.

To be clear, that’s not what the Fed wants, so it will no doubt aim to tread lightly in the context of interest rate hikes. But it’s hard to know what to expect.

How to set yourself up for 2024

Clearly, we don’t know exactly what’s in store for the U.S. economy in 2024. If you’re worried about things getting worse, do yourself a favor and work on boosting your savings account balance. The more money you have set aside, the more protection you buy yourself in case the economy worsens and you end up losing your job or seeing your hours reduced.

It’s also a good idea to work on paying off high-interest debt, like a credit card balance, in case interest rates continue to rise in 2024. Having less debt could also make it easier to get through a period of unemployment.

There’s no clear reason to expect bad things from the economy in the coming year. But we can never really write off the possibility of a recession.

So keep that in mind as you map out your savings goals in the coming months, and also, pay attention to economic news for signs of a downturn. That might motivate you to do things like not only boost your cash reserves but perhaps avoid committing to larger expenses, like a new loan, in the near term.

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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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