Money Management

Planning to travel during the holidays? Read on for ways to lower your costs. 

The holidays are pretty much here. And whether you think that’s a good thing or not, it probably means you’re gearing up for some travel.

A good 84% of Americans plan to travel for at least some holidays this year, says the New York Post. And if you play your cards right, you can save money during your trips. Here’s how.

1. Pack lightly

Gone are the days of being able to check a bag on a domestic flight at no cost. Most airlines charge a fee for a checked bag — each way. On Delta, for example, you’ll be looking at paying $30 each time you need to check a single bag (and it’s $40 for a second bag).

On the other hand, if you keep your packing to a minimum, you might manage to avoid having to check a bag. That means not only avoiding a fee, but potentially sparing yourself the hassle of having to wait at baggage claim after your flight — or track down lost luggage.

If you’re going to stay with family, ask what items you can avoid packing. You may be able to borrow a pair of pajamas from your dad or grab some layers from your mom to stay warm outside and avoid having to pack your own bulky sweaters.

2. Be flexible with your dates

Traveling right before or after Christmas will generally mean paying a premium to board a plane. But if you’re flexible with your plans, and you’re getting free lodging at your destination, then spacing out your flights could result in savings.

Christmas Eve falls on a Sunday this year, while Christmas Day is on a Monday. So many people will no doubt seek to travel the Friday before and the Tuesday after. If your job is remote, you can try flying out the Wednesday or Thursday before and coming back a few days after Christmas to lower your costs.

Even if your job isn’t remote and you have to show up to an office, let’s say you live and work in New York but your parents are in Chicago. Perhaps your company has a branch there. So if your employer will let you work from a different office for a few days, it might give you more flexibility with your flights. Plus, it’s a good way to meet more of your colleagues in person.

3. Leave yourself plenty of time to get to the airport

During the holidays, getting to the airport could be an even more harrowing experience than usual. And if you wait until the last minute to depart for your local airport and summon a ride, you may end up spending extra because at that point, you don’t have time to shop around and compare prices.

A better bet? Schedule your ride in advance and leave yourself plenty of time. Apps like Uber and Lyft will let you set up a ride ahead of time so you don’t have to scramble.

4. Book your itinerary with a credit card that comes with built-in insurance

Many credit cards offer some amount of insurance when you book travel plans. Read your cards’ fine print carefully so you know which one to use.

Let’s say your flight home is delayed and your airline won’t comp you a hotel room for the night. Your insurance through your travel credit card might cover its cost so you don’t have to yourself (this assumes you need a hotel room and can’t stay with family, but for many people, that may be the case).

Holiday travel can be costly — but that doesn’t mean you can’t find ways to save. These tips could result in less spending when spending the holiday with the people you love — or the people you’re forced to spend time with, like it or not.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.

 Read More 

Before you check a bag when flying, see if you can avoid paying to check a bag. Learn six strategies that can save you money on these fees. 

Airline baggage fees can quickly add up. If you don’t like the idea of paying extra fees when you fly and prefer not to deal with the hassle of potentially losing your checked bag along the way, this article is for you. When traveling, there are several strategies you can use to avoid airline baggage fees. Here are some tips from a seasoned traveler who rarely checks a bag.

1. Bring a carry-on bag and do laundry at your destination

I can understand why it may seem impossible to only travel with carry-on luggage if you’re planning to be on vacation for several days or weeks. But I can assure you that it’s possible. It takes time to get used to packing light, but the more you do it, the easier it becomes.

I frequently plan longer getaways, so it’s not uncommon for me to be away for two weeks. I don’t want to worry about whether my checked baggage will arrive at my destination on time without getting lost or damaged. For this reason, I usually fly with carry-on luggage only.

I pack what fits in my suitcase and plan to do laundry during my travels. Sometimes, I stay in a vacation rental with included laundry facilities. But often, I stay at a hotel and plan to spend an afternoon at a local laundromat so I’m not stuck wearing dirty clothes. It works out well for me.

2. Fly with Southwest Airlines

Southwest is one U.S.-based carrier with a reputation for charging fewer added fees. Regardless of the fare booked, all travelers can check two bags for free when flying with this carrier. If you’re looking for a way to save on bag fees, you may want to try this airline. You can bring all your essentials on your next trip without draining your bank account.

3. Get a credit card with free checked bag perks

If you typically fly with the same airline, it may make sense to consider applying for one of the best airline credit cards. Some airline credit cards include free checked bag perks, allowing travelers to avoid paying checked bag fees. If you can’t imagine stuffing all of your belongings in a carry-on bag for your next vacation, this may be a good solution for you to explore.

4. Book a premium class ticket

Another way to save money on checked bag fees is by flying on a first class or business class ticket. Most premium class tickets include added benefits, like checked bag perks. Of course, you’ll have to spend extra money to fly in a premium cabin.

But it may be cheaper than you think, thanks to travel hacks. One option is to book premium airfare deals. Another option is to use credit card rewards to book travel. With one of the best travel rewards credit cards, you may be able to book a premium class ticket for cheap.

5. Achieve elite status with your favorite airline

When you’re loyal to one airline, you can access added perks. One way to save on baggage fees is to earn elite status with your favorite airline. Review the frequent flier program for your go-to airline to see whether it offers a free checked bag to elite-status members. If you fly often and usually fly with the same airline, it may be worthwhile to try to achieve this status.

6. Fly to an international destination

While not all airlines offer free checked bag perks to economy travelers when flying internationally, many do. It’s more common to be charged checked bag fees when flying economy to destinations within the United States. If you’re traveling outside the country for your next trip, you can likely check a bag without paying extra, so you can bring what you need.

Avoiding extra fees is a win for your wallet

Finding ways to avoid extra fees can be a win for your wallet. Every bit of money you save in your daily life can help you improve your personal financial situation. The next time you plan a trip, consider using one of the above strategies so you don’t waste money on baggage fees.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

 Read More 

Many people appreciate getting gift cards for the holidays. Read on for a different route you may want to take. 

If you haven’t started your holiday shopping yet, don’t panic. You still have a good amount of time to hit the stores or browse deals online and cross items off your list.

Now, one thing you may be planning to purchase this holiday season is gift cards. And those can be a great thing to hand to someone you care about — especially if you know which stores are their favorite.

A good 71% of consumers plan to buy gift cards for their loved ones this holiday season, according to data from TransUnion. But you may want to consider going a different route.

Consider the gift of cash

People tend to shy away from giving cash during the holiday season. For one thing, it can come across as impersonal. And some people might even think it’s a bit tacky (though most recipients would quickly say otherwise).

Plus, you might worry that if you give someone you care about an envelope of money, they’ll use it to pay their bills rather than treat themselves to something fun. And it’s easy to see why you’d rather your sister or cousin use your gift to buy a new sweater or jewelry — not pay their mortgage.

But one thing you should realize is that giving the people in your life the option to spend money as they please is perhaps the greatest gift you can give them.

It’s true that if you hand your sister $100 in cash rather than a $100 gift card to a local spa, they might choose to stick that money into their savings account and use it to cover their rent the next month.

But why is that a bad thing?

Your goal in giving them a $100 spa gift card is to help them relax, right? What could be more relaxing than being able to pay rent without stress?

Plus, if your recipients’ financial situations are just fine, then chances are, they’ll use your cash to treat themselves to fun things rather than use that money to cover their cellphone and utility bills. But it’s nice to give them the option either way.

A gift that really does mean a lot

You may be willing to give the gift of cash this year, but worry that it won’t sit right with the people you love. But remember — presentation can go a long way.

If you stick $100 in a plain white envelope labeled “Bob” and call it a day, then yes, Bob might come to the conclusion that you didn’t put a whole lot of effort into that gift. So instead, find a nice holiday card, and write Bob a note along the lines of, “Here’s a little something to brighten your holidays. Use it to add to your model car collection, buy Broncos gear, or however you please.”

That note packages your gift very differently. It tells Bob that you’re mindful of his hobbies, but that perhaps he’s in a better position to pick something out himself. And chances are, the Bob equivalent in your life will be more than appreciative.

It’s easy to see why so many consumers are quick to revert to gift cards during the holidays. But before you go that route, consider the benefits of regular old cash instead.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts can earn you 11x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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.

 Read More 

The U.S. housing market is still hot. Read on for some signs that things are changing. 

In 2020, mortgage lenders slashed their borrowing rates in response to the economic crisis fueled by the pandemic. That led to a huge surge in buyer demand. And the housing market hasn’t really gotten back to normal since.

These days, buyer demand isn’t quite as intense as it was when lenders were offering up 3% mortgage rates. But demand is still strong and homes are still expensive.

If you’re looking to buy a home, it could pay to wait until the housing market cools off a bit — both broadly and, more importantly, in the context of your local market. Here are some signs this may be happening.

1. Homes are sitting on the market for longer

The typical number of days a home sits on the market is indicative of buyer demand. When homes get scooped up within weeks of being listed, it’s a sign the market is red hot. When homes sit on the market for longer, it’s a sign that buyer demand isn’t quite as strong.

If you’re hoping to take advantage of a cooling real estate market, enlist the help of an agent in your area who can keep tabs on this data. Have them track the number of days homes are sitting on the market, so they can inform you when that number starts to pick up.

2. Inventory is growing

As of late September, there was a 3.4-month supply of available homes on a national level, according to the National Association of Realtors. That’s well below the four- to six-month supply that’s generally needed to meet buyer demand in full.

When there’s little inventory on the market, it’s a sign that buyers are active and scooping up homes. When available inventory increases, it’s a sign that buyer demand is waning.

So another factor you’ll want to track in the context of your local housing market is real estate inventory. Once you see it start to pick up, you’ll know that it may be a good time to begin looking at different properties to make an offer.

3. Home prices are dropping

Sellers can get away with commanding high home prices as long as buyers remain interested and willing to pay. When home prices start to drop, it’s a sign that things are cooling and buyers aren’t rushing to make offers on available properties. If prices are trending downward, the time might be right for you to strike.

Are mortgage rates indicative of a heated or cooling housing market?

Not necessarily. It’s true that lenders will sometimes offer lower interest rates on mortgage loans to drum up demand. But in 2021, buyer demand was really strong at the start of the year — and rates remained low throughout the year when they could’ve easily risen.

It’s certainly not a bad idea to keep tabs on mortgage rates if you’re interested in buying a home. But if your goal is to kick off your search at a time when the market isn’t as heated, then you may want to focus more on the factors above.

The reality is that the mortgage rate you lock in on your home isn’t necessarily set in stone, because you may have an opportunity to refinance the loan down the line. But if you buy a home that would normally sell for $450,000 for $500,000 because the market is hot, you can’t undo your purchase price. So it’s important to be mindful of the factors above so you’re able to, ideally, buy at a time that makes financial sense.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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.

 Read More