Money Management

Taking a vacation can be expensive. Check out these locations if you’ve got the travel itch but don’t want to bust your budget. 

Traveling can be costly, especially during the holidays. With many people planning trips to see friends and family, destinations get more expensive this time of the year. But, like most people, you might have vacation days you want to use up, making it an excellent time to get out of town.

Thankfully, there are still some locations you can visit that won’t upend your personal finances. Here are five ideas you may want to consider this holiday season.

1. Canada

Our neighbor to the North could be just the place to visit this holiday season to save some money. For many in the U.S., it may be possible to drive across the border and skip the purchase of plane tickets.

If you head to beautiful Quebec, you can stay at the apartment hotel Sonder Maisonneuve in Montreal for as little as $98 per night in December.

There are many free things to do in Montreal this winter, too, including the Great Montreal Christmas Market outside Place des Arts and the Christmas Village at Atwater Market. History buffs will love that the city projects images of historical figures on older buildings in Old Montreal every weekend in December.

2. Mexico

If you’re looking for somewhere warmer to go to, and I don’t blame you, then the United States’ other close neighbor may be your best destination.

A quick search for hotel rooms brought up the Marriott Puerto Vallarta Resort & Spa in the beach town of Puerto Vallarta. Stunning views of the water can be yours for as low as $155 per night, according to Google.

And with Puerto Vallarta’s average high temperature of 82 degrees in December, you’ll have plenty of opportunities to enjoy the weather. Save me a chair at the pool.

3. Las Vegas

If you’re looking for an inexpensive destination (depending on your gambling preferences), you can score some good hotel deals in Las Vegas this holiday season. I found a deal on the Downtown Grand Las Vegas hotel for as low as $152 per night.

There are also free activities in the city, including the Arts Factory gallery in downtown Las Vegas and a botanical garden display in the Bellagio Conservatory & Botanical Garden. Great parks are also nearby, including the Red Rock Canyon National Conservation Area and Death Valley National Park.

4. The Dominican Republic

If you’re looking for a destination that’s a little exotic but still won’t break the bank, then consider Santo Domingo, the capital of the Dominican Republic.

With plenty of beaches to enjoy and an average December high temperature of 86 degrees, there will be many opportunities to rid yourself of the winter blues. I found an inexpensive room at the Hotel Riazor in Santo Domingo, starting at just $73 per night. Just remember to pack sunscreen.

5. A staycation in your city

Planning a staycation could be one of the best ways to save money on traveling and keep your credit card tab low while still having plenty of fun. The money you’ll save by not booking a flight could be used to stay at a nice hotel or a fancy dinner out.

No matter how big or small the place you live, there are likely some fun things to do there this holiday season. My small city has a free Christmas parade, a small Christmas village in our downtown park, and even an ice skating rink.

It pays to think like a tourist when planning your staycation. Do a little research to find a few restaurants you haven’t been to before or a theater show you’ve been meaning to see.

Maximize your trip with a bit of planning

Spontaneity can be a great way to enjoy your vacation, but spending a little time planning what you’ll do at your destination can go a long way toward keeping your costs down while traveling.

For example, if you have a few days where you’re spending money on entertainment, dining out, and shopping, then plan an off day where you take in the local views, stroll around a park, or visit a free museum to save money.

Setting up a simple budget ahead of time will help you plan for things you want to do on your vacation and also help keep your finances on track.

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

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Americans owe more than $1 trillion on credit card debt alone. If you’re carrying high-interest debt, here’s how you can get out from under it. 

When high-interest debt feels like a giant weight on your shoulders, you may benefit from loan consolidation. Here, we’ll tell you how it works and how to decide if consolidating your debt in 2024 is a good idea.

When it’s a good idea

The first sign that debt consolidation is a good idea is when you’re treading water with high-interest loans, paying the minimum monthly payment but never seeming to get ahead. That’s the way high-interest loans work. Unless you can come up with a chunk of money at once, it’s difficult to dig your way out.

Consider this: If you make a monthly payment of $125 on a credit card with a $5,000 balance, carrying an 18% APR, it will take five years and two months to pay off in full. What’s worse is that you’ll pay $2,693 in interest. That’s almost $2,700 you could have stashed away in an emergency fund or used to pay other bills.

As you consider consolidating debt, the goal is to find a personal loan with an interest rate lower than the average rate you’re paying. Let’s say you take out a personal loan with a 9% APR to pay off that same $5,000 credit card debt. By making monthly payments of $159, you could have the loan paid off in three years, and you would pay a total of $724 in interest. That’s a savings of $1,969.

If you carry several high-interest debts, consolidating is even more effective and leads to even greater savings.

How it works

To consolidate debt, you take out a single debt consolidation loan to pay off existing debts. In essence, your existing debts get rolled into one easier-to-manage loan. Depending on the lender, either you use the proceeds of the loan to pay off the existing debt, or the lender does it on your behalf. In either case, what you’re left with is one lower-interest loan to focus on and just one loan to repay each month.

When you take out a personal loan to consolidate debt, the entirety of the loan is deposited into your checking account at one time. Like with most other consumer loans, you make a fixed monthly payment until the debt is paid in full. And like most loans, you know how much your interest rate is going to be and the term of the loan. In other words, you know precisely when the debt will be paid in full.

What to be on the lookout for

While a consolidation loan can be a great way to get out of debt, it is not without risks. Here are a few to keep in mind.

Teaser rates

American consumers owe a combined $1.08 trillion on credit card debt alone, with the average American carrying a balance of $6,365. Lenders know that, and less reputable lenders will exploit the fact. According to the Consumer Financial Protection Bureau (CFPB), one way shady lenders try to get one over on you is to offer you a “teaser rate” that only lasts for a certain number of months. After that, the interest rate jumps.

The best way to avoid a loan with a teaser rate is to work with a reputable personal loan lender. Read the loan contract from start to finish to make sure the rate is fixed and can never change.

Loans loaded with fees

The higher your credit score, the greater the odds you’ll land a loan with no fees. That means you won’t have to pay an origination fee or be subject to an early payment penalty. However, even if your credit score is not great, it’s important to seek a loan with as few fees as possible. After all, those fees are rolled into your loan, increasing the amount you owe.

Old habits

How successful your debt consolidation efforts will be comes down to how dedicated you are to getting out of debt and remaining out of debt. For example, if you consolidate all your high-interest debt this month but go out and put new charges on your credit cards next month, you’re digging a deeper hole for yourself.

Be honest with yourself about how prepared you are to give up unnecessary spending as you improve your financial situation.

Many before you have used a consolidation loan to jettison old debt and start out fresh. You can, too. It may not be easy, but as you watch your overall balance drop each month, the satisfaction you’ll feel will be worth the effort.

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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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Spending a fortune on gifts — and their accoutrements — isn’t necessary if you shop smart. Find out how this writer saves on holiday shopping. 

Alright, so I’ll be the first to admit the dollar store has a ton of junk inside of it. You are certainly not guaranteed a deal, and sometimes even the $1.00 price tag is a rip off.

That all being said, I still shop at the dollar store, especially around Christmas. It’s been my go-to stop for holiday essentials for years for everything from gift bags to the things inside them.

The gift bags are affordable and adorable

Gift bags are one of those things that you think you don’t have any strong opinions about — until you realize you absolutely do. I absolutely will not pay those absurd drugstore prices on gift bags. Five dollars for a bag the recipient is very likely to throw away?! No thanks!

At the same time, who wants to show up with ugly gift bags? (Yes, you are totally getting judged on your gift bags, people. We all do it.)

For me, the dollar store solves the problem. The bags are typically around a buck (or so, say $1.25, maybe?), so check that box. Plus, they’re often ridiculously cute. I honestly have a couple that I like so much I’ve refused to give them away.

Don’t forget all the wrapping accessories

Not a gift bag person? You can find all sorts of boxes, as well. This includes plain shirt boxes you can wrap, or even decorative boxes that won’t require any wrapping at all.

All of the assorted gifting accouterments are also abundant and affordable. This includes:

TapeCardsRibbonGift tagsTissue paperWrapping paper

I especially like picking up my holiday cards at the dollar store. Forget those $5 drugstore cards; I’m talking about 2/$1 for the same cheesy reindeer jokes. Want to cut the price even more? My local store sells a 12-pack of Christmas cards for $1.25 each! That’s about $0.10 a card!

Easy gift baskets for great bespoke gifts

Another great dollar store hack I like this time of year is using it to put together fun little gift “baskets” for my friends and neighbors. Of course, you’re hardly limited to actual baskets. You can find a variety of interesting containers throughout the store — and tons of great stuff to put inside.

Your gifts should be tailored to the folks who will receive them. But here are a few ideas for inspiration.

For a cozy night in: Grab a ceramic or glass mug, then fill it with a few things that up the comfy factor, such as: a packet (or two) of hot chocolate mix, a couple candy canes, a pair of fuzzy socks, and a nice-smelling tea light.For the baker: You can find a variety of baking mixes at the dollar store (my local one stocks Betty Crocker mixes), as well as all kinds of handy cooking utensils. They even have cookie cutters, especially this time of year. Stuff it all in a large mixing bowl or even an oven mitt for a fun gift.For the young (or young at heart): Most dollar stores have a fairly good toy aisle, and they can even include popular characters from Marvel, Disney, and other brands. Add some puzzles, word searches, hobby supplies, and a little chocolate to round it out.For celebrating: New Year’s Eve is only a week after Christmas, so plan ahead with a basket fit for a celebration. Include a small bottle of sparkling cider, a champagne glass, a party hat, and some noisemakers. Gifting to a couple? Double up on it all so they can share a night together!

Making spirits (and budgets) bright

Christmas has been commercialized to within an inch of its tinselly little life, and it seems to get more expensive every year. Even the trappings have gotten ridiculous — I’ve seen Christmas cards with $15 price tags!

None of that is necessary. You can get everything you need without overstepping your finances simply by shopping at the right places. And as much as the media mocks the saying, it truly is the thought that counts. (All of my favorite gifts are those that show the giver put some genuine thought into what I might enjoy.)

Instead of throwing money at everything, let’s embrace the holiday spirit and our bank accounts with a little more thought — and a lot less spending.

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Saving more money is a popular New Year’s resolution. Making this one move today could make sticking to it a lot easier. 

Saving more money is one of the most popular financial New Year’s resolutions people make, and it’s easy to see why. More money means more freedom to buy what you need and do what you want. But it’s not always easy to pull off.

The traditional view of saving more means making sacrifices and forgoing things you want so you can stash more cash in the bank. But there’s another, much easier way to beef up your savings next year. And if you take this key step right now, you can dive right into saving in 2024.

Lay the groundwork now

Technically, you don’t need a savings account to save more. You could stash the money under your pillow if you wanted. But there are two reasons why having a savings account makes sense.

First, it’ll keep your money safe. Bank robberies of the sort seen in old Western movies don’t really happen these days, but home break-ins happen quite often. Your cash is much more likely to remain in your possession if you keep it in a bank account. Plus, any reputable bank is going to protect your cash with FDIC insurance up to $250,000 per person per account, so you won’t lose anything if your bank goes under.

The second reason you should have a savings account is because you can earn interest on your cash over time. This is something you can leverage to grow your wealth more quickly and with fewer sacrifices on your part. You can’t just choose any bank, though.

Brick-and-mortar banks typically offer low interest rates that earn you a few pennies a year if you’re lucky. And even worse, a lot of them charge maintenance fees that could actually cost you money if you don’t keep enough money in your account.

You need a high-yield savings account from an online bank if you really want to grow your money quickly. Rates fluctuate over time, but right now, the best savings account interest rates are hovering around 4.50%. That could put $450 in your account in one year if you have a $10,000 initial balance.

Banks that offer these types of accounts typically don’t charge maintenance fees either. So all the money you earn stays in your pocket.

How to find the right high-yield savings account for you

Opening a high-yield savings account today can help you get a strong start on your New Year’s resolution because you can begin saving from day one. But there are a lot of options out there, and it’s easy to get overwhelmed. So here are a few tips to help you in your search.

You don’t need the highest possible interest rate

It’s tempting to hunt for the highest possible interest rate before settling on a savings account, but this probably isn’t worth the effort. Savings account interest rates fluctuate over time, and the savings account with the highest rate today may not hold that title tomorrow. Instead, focus on finding a rate that’s among the best.

Check its fees

You probably won’t have to worry about too many fees with online banks, but it’s helpful to look over the bank’s fee schedule anyway. Think about how you intend to use your account and what charges that might lead to. For example, if you frequently send money out via wire transfer, make sure your bank doesn’t charge costly wire transfer fees.

Think about the features you want

Those who want to withdraw cash from their savings account directly should look for a bank that includes a free ATM card. Make sure the bank has a large network of fee-free ATMs in the areas you frequent as well so you can access that cash without penalty.

If you have any questions about a bank’s savings account or how to apply, don’t hesitate to reach out. Start exploring your options now and aim to have your new account opened by the end of December so you can start making your initial savings deposits in early January.

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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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Many seniors lack savings in a very big way. Keep reading to find out an easy way to avoid becoming one of them. 

There are certain misconceptions about retirement that tend to lead people to struggle financially. One is that it’s possible to retire and thrive on Social Security benefits alone. In reality, those benefits only replace about 40% of the typical earner’s pre-retirement wages. And while many people do find that their expenses drop during retirement, they don’t necessarily drop by 60%.

And speaking of expenses, another big retirement myth is that you can live cheaply as a senior once you don’t have a job to go to. In reality, many of your general living expenses are likely to stay the same whether you have a job or not.

You might spend less money on gas, for example, if you’re not commuting to an office daily. But you still have to pay to maintain and insure your car, so you’ll need to make sure you have a retirement income that supports that. And you might end up spending more money on leisure since you’ll have lots of free time on your hands.

In a recent MassMutual survey, 29% of retired Americans said they have less savings than they need. If you want to avoid that fate, it’s important to be realistic about what your retirement expenses might look like. But it’s also important to start saving and investing money for retirement at an early age.

An easy way to build up a large nest egg

The nice thing about IRAs and 401(k)s is that they offer tax incentives in the course of saving for retirement. Traditional IRAs and 401(k)s offer tax-deferred gains on investments, while Roth IRAs and 401(k)s offer tax-free gains. This makes it even easier to grow a lot of wealth in a retirement plan over time.

What you have to do, though, is give yourself that time. And you can do that by beginning to fund your retirement plan at an early age.

Over the past 50 years, the stock market has delivered an average annual 10% return to investors, as measured by the performance of the S&P 500 index. If you invest heavily in stocks, you might easily enjoy a similar return.

So let’s say you begin socking away just $200 a month for retirement at age 27 with the goal of retiring at 67. Even if you’re unable to increase your monthly contributions, with a 10% return, you’ll be looking at retiring with over $1 million.

But watch what happens when you wait until age 37 to start saving and investing. Assuming the same monthly contribution and return, you’re looking at a balance of only $395,000 when you give up those 10 years of contributions and gains.

Of course, $395,000 is a nice nest egg in its own right. And it’s more than many retirees have available. But which would you rather do — retire with a little less than $400,000, or a little over $1 million?

Don’t set yourself up to struggle

Many people who end up struggling financially in retirement don’t have much in the way of savings. So if you make an effort to build a decent-sized nest egg, you might end up just fine.

But if you want to avoid financial stress in retirement, it pays to start socking money away for it from an early age. Doing so could make it so you’re able to spend more freely at a time in your life when you’re really not in the position to pinch pennies.

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

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Your cheerful holiday decor can make you sad if it also blows your budget. Try these stores for decorating without breaking the bank. 

Holiday decor can be surprisingly bad for your personal finances. You start with one cheery garland, and next thing you know, you’re three wreaths in and your savings account is taking a beating. (This is my first Christmas in a new house and it is hard to not deck all of my halls!)

But you don’t have to go full Grinch mode to keep your holiday hijinks on budget. You can find great deals on decor in a lot of places, some of them unexpected. Here are a few places to look.

1. Thrift stores

Pretty much every thrift store I’ve ever been inside has shelf after shelf of Christmas decor for the picking year-round, but especially as the holidays get closer. And while thrift store prices have certainly gotten higher lately, you can still find some great deals.

Sure, you’re going to end up with some eclectic decorations if you try to keep strictly to what’s available at the thrift store. But you can find truly unique items that haven’t been sold in decades! (And a whole lot of cheap nonsense. Shop with care.)

I especially love the thrift store for finding holiday dinnerware and glassware. I have a great set of Irish coffee mugs with festive scenes that I picked up for a few bucks and use every year.

2. Craft stores

The Christmas decorations have been on the shelves since early October at my local craft store. And, even better, the closer we get to the holidays, the cheaper those decorations seem to get.

Some amount of that is going to be the nature of these stores. Most of the big chain craft stores put a ridiculous price on anything seasonal so they can continuously mark it down. But that means you can score good deals if you’re willing to wait until just before (or even right after) the holiday.

3. Dollar stores

My local dollar stores have some surprisingly nice Christmas decorations, including a veritable army of Christmas gnomes, shiny ornaments, themed tableware, Christmas tree lights, and even Santa hats for festive holiday photos.

And that’s just the pre-made stuff! There is no end to what you can come up with with a little imagination and $10 at the dollar store. (If you’re inspirationally challenged, just do a quick internet search for “holiday decor dollar store” and say goodbye to the next three hours of your life. You’re welcome.)

4. Hardware stores/garden centers

The kind of holiday decor you’ll find at the local hardware store and/or garden center will depend a lot on the store itself, but the big-box stores have been all-hands-on-deck with Christmas decor before we even finished handing out Halloween candy.

At the very least, you’ll likely find a ton of trees, lights, and those blow-up lawn ornaments, most of which will be on sale randomly throughout the season (and half-off before Santa hits the sleigh). Because nothing says Merry Christmas quite like a 10-foot-tall inflatable Stormtrooper with a candy cane. Ho ho ho, pew pew pew!

5. Drug stores

Many years ago, I had a last-minute Christmas light emergency (yes, it’s totally a thing). After hitting several big-box stores, I finally stopped at a local drug store out of sheer desperation. And what do you know, while the Walmart had been empty, the drug store actually had shelf after shelf of lights. Turns out I wasn’t the only one who didn’t know what a trove of Christmas decor the drug store would be.

Keep in mind, if you’re early in the season, you’re definitely going to pay a premium for drug store decor. But, wait until closer to the holiday, and you can get some seriously great deals on everything as they try to make room for the tons of Valentine-themed nonsense sure to follow.

Picking the payment method to suit the shop

If you’re going to be Christmas shopping all over the place, make sure you have a gameplan for your credit cards. Pretty much every place on this list will fall into a different type of bonus category, so you may need a variety of cards to maximize your rewards. If that sounds like too much work, choose a good flat-rate card to use everywhere, such as a cash back rewards card with a 2% rate on all purchases.

Timing is everything

I focused this list on places the average person may not think of first when it comes to shopping for decor. But I’d be remiss if I didn’t say that all of the usual suspects, like Walmart and Amazon, are certainly also places to find good deals on Christmas decorations. I’ll also throw T.J. Maxx (and similar stores) into the ring as somewhere for good finds.

As you may have picked up by now, the real trick to finding Christmas decor deals is timing. The closer you get to the day, the more sales you’ll see. Of course, there will also be much less inventory, so the selection will suffer.

The thin line between getting great stuff, and enjoying great prices, is one we all must walk. Tread carefully.

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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 and Walmart. The Motley Fool has a disclosure policy.

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