Money Management

Hunger is a growing problem for many American families. Learn more about what help is available and how you might be able to get involved. 

More and more Americans are struggling to put food on the table. Over 12% of respondents to the latest U.S. Census Household Pulse survey said there’d been points in the last week when there wasn’t enough to eat. That’s over 27.6 million homes, an increase of almost 40% on the same period in 2021.

Food insecurity is highest in Louisiana, where almost 20% of respondents reported not having enough food “sometimes or often.” Nevada, Georgia, and Oklahoma were not far behind. Economic uncertainty, higher grocery costs, and the end of pandemic emergency benefits have all had an impact.

What to do if you can’t afford food

When you don’t have enough money in your bank account to buy food or cover essential bills, it’s beyond stressful. It can be exhausting. And sadly, there are no easy fixes — if there were, you’d already be doing them. If you’ve already cut back your personal finances on every cent of nonessential spending, see whether any local NGOs or assistance programs might be able to help. Here are some steps to consider.

Sign up for SNAP benefits

SNAP food benefits can go a long way toward feeding your household. If you aren’t receiving benefits, contact your local SNAP office to find out whether you could claim them. One U.S. Census Bureau report suggests that 1 in 6 eligible people are not participating in the program.

Right now, the maximum monthly payment for a family of four is $973. You may not receive the full payment, but even getting a small amount might make a difference. Eligibility is mostly based on your income and the assets you hold. If you currently receive SNAP benefits but your circumstances have recently changed and your income is reduced, check to see if you are entitled to more money.

Stretch your food benefits further

If you participate in SNAP, there are ways to make every dollar count. For example, look to see if there’s a Double Up Food Bucks program in operation near you. Participating markets and stores will give SNAP participants two for one on fruit and vegetable purchases. Another way to save money is to use cash back apps to get rewards for your SNAP spending. Experiment to see which app will work best with your EBT card and local store.

Cooking from scratch can be a way to save money, but it can also be time-consuming. Even so, if you are able to batch cook and freeze the extra food when you have a few spare hours, it can be a great money saver. For example, I soak and cook dried beans and keep them in the freezer rather than buying cans. A 32 ounce bag of dried black beans from Aldi costs $2.99 online and makes the equivalent of six cans of beans. A can of black beans costs $0.85, meaning you’d save over $2 by cooking them yourself.

If you’ve got a green thumb, you can even use your SNAP benefits to buy seeds and grow your own produce. Though if you are not into gardening, be aware that it may not be as easy as it seems. I have tried growing vegetables from seed with mixed results.

Look for other assistance programs

See if you qualify for any other food assistance, such as WIC if you have young children, or are pregnant or breastfeeding. Outside direct food assistance, if you can get help with other bills, it might mean you’ll have more money for food. See if you are entitled to assistance with healthcare, housing, utilities, or other services at benefits.gov. If you’ve recently lost your job, make sure you apply for any unemployment benefits you’re entitled to.

Use food pantries and soup kitchens

Search for food pantries and soup kitchens in your area. If you are nervous about visiting one for the first time, it’s understandable. Try to remind yourself that they are there to help. Make sure you arrive early and find out if you’ll need to show any kind of ID before you go. If you’re not sure where to start, try calling United Way at 211. It has a database of local and national assistance.

How you can help prevent hunger

You may be reading this and feeling lucky because you have enough food. If that’s the case and you want to help reduce food insecurity, there are several steps you can take. If you have a few hours to spare, why not volunteer to help at a food pantry or soup kitchen? Many of them rely on volunteers to organize, pack, and distribute the food.

Another route is to donate to a food NGO such as Feeding America. Food banks tend to prefer you give cash rather than donating food, because it lets them stretch the money further and means they can provide people with perishable items such as fresh produce. You could also organize a food drive and encourage others to donate and get involved.

Bottom line

When you don’t have enough to eat, it impacts every part of your life. Children don’t perform as well at school, and adults may have difficulty concentrating and be less productive at work. It can also have wider health impacts. Feeding America says that there are connections between food insecurity and ailments like diabetes, high blood pressure, and heart disease.

If you are having trouble finding money for food, you don’t have to face this alone. Reach out to NGOs and government programs to see what help is available.

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I’ve relied on gig work as my sole income stream for more than a decade. Here’s what I’ve learned. 

I’ve done some form of gig work for over 20 years, and I can tell you there have been many highs and some lows. Mostly, my time as a freelance writer has been a great experience, and I’ve been fortunate to write for some fantastic big companies over the years and plenty of great, small clients, too.

But in all my experience, I’ve learned one huge downside to relying on freelancing as my sole source of income: You have to work hard to maintain consistent pay.

Here’s what you should keep in mind for your personal finances if you intend to rely solely on gig work.

Maintaining consistent pay takes a lot of effort

There are many different types of gig work, but one thing they all have in common is that you’re paid a fee directly for the work you do, whether it’s creating a website, delivering food, or writing an article.

When the work is completed, you receive your pay, and that’s it. There’s no guarantee of more work, no guarantee of more pay, and no money being paid to you if you’re not working. That means you need to know how to budget your money and your time.

I’ve tried to explain this to my friends with salaried jobs, and sometimes, it’s hard for them to understand. They think that since I’m working daily on projects, there’s little difference between salaried and freelance work.

But the truth is that as a gig worker, you have to think much more about your work and how long it takes to complete it. For example, I’ll get paid the same amount for an article I write, whether it takes me one hour to complete or four. Contrast that to a salaried position where a worker gets paid the same amount on payday, regardless of the work done.

Gig workers have to be efficient to ensure they don’t waste their time on tasks that don’t pay enough or take too much time to complete.

The upside is that you have a lot of control over what projects you take, what clients you work with, and when and where you work. My freelance writing business has allowed me to live out of Airbnbs on long road trips and work mostly out of coffee shops.

I love the autonomy, but managing my time effectively to ensure I’m making enough money comes with a lot of responsibility.

Most workers don’t rely solely on gig work

About half of Americans have a side hustle, but most don’t rely on that pay as their primary source of income. That’s a good thing, considering that the average annual pay for gig workers is $5,676.

But if you’re looking to make the transition from a part-time gig worker to relying on it as your primary source of income, here are a few tips I’ve learned from my transition from writing as a side hustle to my only source of income.

1. Test the waters

I freelanced for many years in addition to my full-time salaried position before I made the jump. This helped me build experience with clients and get a good feel for how much work I’d need to do it full-time.

2. Find big clients

This has personally worked well for me over the past 11 years of solely relying on freelance work. Larger companies tend to pay better and typically have a lot more consistent need for work. This will save you time by not having to track down additional clients.

3. Explore new opportunities

I almost always take the call if someone contacts me about a potential writing job. There are exceptions, but most of the time, I’m open to at least having a conversation because you never know where it may lead. I once got a message on LinkedIn that turned into several years of working as a freelance journalist for the BBC.

4. Be disciplined

If you’re not disciplined with your time, it’s unlikely you’ll be able to rely on gig work as your only source of income. Find out what working environments motivate you to get work done, what time of the day you’re most productive, and keep track of your time to know what’s working and what’s not.

5. Be ruthless about your time

Admittedly, this may not work when you’re just getting started, but eventually, you’ll want to decide whether a client and their projects are worth your time. Whether you’re a delivery driver, writer, developer, or designer, evaluate how long the past few projects took you to complete and how much you were paid. If you’re not earning the money you want, try raising your prices or looking for better-paying clients.

Turning a side hustle into a full-time job can be very satisfying, just make sure you’ve spent the time understanding the risks, and have the right clients in place before you make the transition.

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Business class tickets give you access to tons of perks, some lesser known than others. Here are a few worth discovering. 

Many of the perks of flying business class on long-haul flights are well known. The lie-flat seats, for instance, are an iconic image of flying in luxury. And let’s not forget the multi-course meals featured in so many social media posts.

These flashy amenities may be Insta-worthy, but they’re not the only pros to flying business class. Here are some of the lesser-known amenities you may also enjoy.

1. Priority check-in

The benefits of business class start long before you board the plane. And it all begins at the check-in counter. Many airlines offer accelerated check-in and baggage handling, with dedicated counters for business and first-class passengers.

This is obviously less important to folks who check in online and don’t check any baggage. But if you’re taking a long-haul flight, chances are good you have some luggage to check. Being able to waltz past the lines and crowds to check your bags gets the trip off on the right foot.

2. Expedited security screening

Speaking of long lines…not looking forward to waiting in the ones for security? You may not have to if you’re flying business class. Some airlines offer an expedited security line for frequent flyers, including some business class passengers, that can get you through in a fraction of the time.

Whether there is an expedited security line will depend on the airport and airline. It’s worth asking at the check-in desk if the service is available (and where to go if it is).

Pro tip: You don’t need business class tickets to get through security faster. TSA PreCheck can help you sail through security once you’ve qualified. Even better, a lot of travel rewards cards will pay for it.

3. Lounge access

A fantastic feature offered by many airlines for international business class is access to the airline’s lounge. This is especially appreciated when it’s an airline with lounges I wouldn’t normally be able to access with my credit cards.

It’s important to note that not all upper class tickets get lounge access. And not all lounge access is made equal. Here are some general considerations:

Domestic first class typically won’t get you into the lounge.International business or first class nearly always have lounge access.If your airline doesn’t have a lounge, you may still have access to partner lounges.Even business class doesn’t get you into the most exclusive lounges. For example, American Airlines Flagship First international first class passengers have access to dedicated Flagship First lounges in several airports.

4. Dedicated flight attendants

One of the reasons business class service is so much better than other cabins is the staff. The flight-attendant-to-passenger ratio is simply much lower in business class; in other words, each flight attendant has fewer people to assist. This makes service much faster, as well as more personal. (Don’t discount the personal part; you get to know each other well over the course of an eight-hour flight.)

5. Toiletries and pajamas

The big selling point of business class on an international flight is the lie-flat seats that turn into beds. Being able to stretch out completely and sleep is a luxury that cannot be overstated. The only problem? Your toiletries and sleepwear are probably packed.

Happily, your business class seat will usually come with a handy little zippered pouch full of helpful toiletries, often including:

Lip balmA toothbrushA tube of toothpasteAn eye maskEarplugsSocks

But that’s not all. Some airlines will also offer you a set of complimentary pajamas so you can sleep in comfort. However, unlike the amenity kits, which are often waiting on your seat when you board, you’ll likely need to request a pajama set from a flight attendant.

Upgrade to luxury

If you have to be stuck in a tiny metal tube for an eight-hour international flight, you may as well make that tube as comfortable as possible. Flying business class is how you do just that.

The downside to all that luxury? Zeroes. As in, add a couple zeroes onto the end of your ticket price if you want to upgrade to business class. (A quick search right now shows one-way business class fares from the east coast of the U.S. to Europe going for $3,000 and up.)

Or, you could use your credit card rewards. Pretty much all of my favorite travel rewards cards come with welcome bonuses large enough that you could get at least a one-way business class flight to most destinations. With a little planning — and some strategic welcome bonuses — you could travel in luxury nearly for free.

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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.Brittney Myers 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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This is where the wealthy put their money. Keep reading for one simple wealth-building strategy you can follow without taking on too much risk. 

Observing how other people make decisions can be a great way to improve areas of your life where you have limited experience — and investing is no exception. Personally, it took me a while to learn that owning stocks isn’t just for rich people. I grew up thinking only wealthy people invested their money, and it took a while to overcome that thinking.

If you need some of your money assumptions challenged or are just looking for a few tips on how to invest your money better, here are three strategies used by the wealthy you may want to consider.

1. They put their money into homes

Owning a home (or two) is where many wealthy people have their money tied up. According to a recent wealth report from the real estate consultancy company Knight Frank, 32% of high-net-worth individuals’ (worth $1 million or more) wealth is allocated to their primary and secondary homes.

That’s been a savvy move over the past few years, as the average selling price of a home has soared 29% over the past three years, according to the U.S. Census Bureau. Not only do home prices tend to go up over time, but they’re also a historically safe place to put your money compared to more volatile investments.

2. They buy stocks

The second-most popular place where wealthy people put their money is into stocks. If you took all of the investable wealth that high-net-worth individuals have, 26% of it goes into owning equities, according to Knight Frank.

Investing in stocks can be a great way to build wealth, thanks to the power of compounding interest. For example, let’s say you invest $1,000 into the stock market and add $100 every month for 20 years. Assuming an average rate of return of 8%, you would have $59,575 on just $25,000 worth of contributions at the end of two decades.

READ MORE: How Does Compound Interest Work?

The good news is that it’s easier than ever to own stocks, thanks to some great investing platforms. Many investing apps also allow you to trade stocks for free, making it an inexpensive investment method.

3. They own commercial property

Another top investment strategy among the wealthy is to own commercial property directly. This may involve owning industrial, retail, office, or multifamily properties.

Like any type of investment, this one can be risky, so make sure to do your research before considering investing in a commercial property. For example, office property values haven’t fared well nationally since the pandemic, but they may be doing well in your local area.

The easiest investment strategy to follow

If you’re looking for the easiest way to follow what wealthy investors are doing, opening a brokerage account and buying stocks is likely your best bet.

For one thing, you can get started without a lot of capital. Some investing platforms will allow you to buy fractional shares of a stock, making it easier than ever to put a few hundred dollars toward your favorite stock. In contrast, buying a home or investing in commercial real estate often involves a significant capital investment.

Additionally, you don’t need to spend much time learning about individual stocks if you don’t want to. Buying an index fund allows you to buy a basket of stocks that span many sectors. Index funds are a relatively low-risk way to invest, keep you well-diversified, and typically have low expense ratios, which are the management fees you pay to the brokerage.

Finally, it’s worth noting that if you’ve never bought stocks, it can feel scary to put your hard-earned money into an account. So, remember, it’s OK to start small. Many index funds don’t have an investment minimum, so start with just $50 if you want. Taking the first step will teach you a little bit about investing without having to put too much money toward your first investment.

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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.Chris Neiger 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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You can’t dramatically boost your credit score quickly, but you can have a significant impact with some smart strategies. Here’s how. 

Let’s be clear right from the start: Excellent credit takes years of responsible financial behavior to build. If you see advertisements from credit repair companies claiming to turn your average credit score into an 800 FICO® Score within a few months, either they’re using techniques that won’t sustainably boost your score, or they are simply exaggerating what they are capable of doing.

On the other hand, you might be surprised at what a few smart moves can do to your score in a relatively short time frame. If you can boost your credit score by 20, 30, or even 40 points, you could find yourself in a higher credit tier with lenders. Here are four suggestions for how you can make this happen.

1. Take care of any old negative items

The most important category of information that makes up your credit score is your payment history, which accounts for 35% of the FICO scoring formula. But this doesn’t just include whether or not you pay your bills on time every month — it also includes adverse information about your payment history, such as collection accounts, charge-offs, and unpaid judgments.

Now, the impact of these tends to decline as time goes on. For example, if you have an unpaid collections account from five years ago, it will likely have a smaller impact than if it were opened five months ago. But even an old adverse account can have a massive negative impact on your credit. So, taking care of these (if you have any) can be the best way to have a meaningful and immediate impact on your credit score.

It’s also worth noting that when negotiating with collectors, you can also ask for specific treatment of the account on your credit report. For example, instead of settling an old collection account for less than you owe, maybe offer to pay the account in full in exchange for deleting it from your credit report entirely. Just make sure you get any arrangements in writing.

2. Avoid new credit applications for a full year

The FICO formula includes a category called “new credit” that includes both new accounts and the times you’ve applied for new credit recently. But it only considers hard credit inquiries from the past 12 months. If you have any credit applications currently on your credit report, simply avoiding new applications for a year can have a meaningful impact.

3. Pay down balances — and start with your most maxed-out accounts

The second-most-influential part of your credit score is the amounts you owe, which makes up 30% of the total. But it doesn’t put too much emphasis on the actual dollar amounts you owe. Instead, it looks at factors like the percentage of your available credit lines you’re using and the balances on loans relative to their original balances.

It’s common knowledge that paying down your credit cards can help your credit score. But to maximize the impact, consider starting with whatever accounts have the highest balance as a percentage of your credit limit.

4. Ask for a credit limit increase

In addition to paying down your credit card balances, there’s another way you can reduce your credit utilization — get higher credit limits.

Think of it this way. If you have a credit card with a $5,000 limit and a $2,000 balance, you’re using 40% of your available credit. But if your limit is raised to $10,000, you’re now using just 20%, even though your balance hasn’t changed.

In most cases, you can ask for a credit limit increase online or through your credit card issuer’s app. If you’ve been a customer for a while and have a strong history of on-time payments, the rate of success with limit increase requests tends to be pretty high. Plus, this can often be done without a hard credit inquiry.

How much can your score go up?

One important thing to point out is that the actual FICO formula is a closely guarded secret, and there’s no way to know exactly how much any specific change will affect you. Plus, the same credit behavior can certainly affect two people differently — for example, the worse your score is from the start, the more of an impact moves like paying down credit cards tend to have.

Having said that, these four tips are almost certain to raise your credit score to one extent or another if you use them. And you might be surprised at the impact a seemingly small increase can have on your borrowing costs on a mortgage, auto loan, or other type of credit account.

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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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By knowing how credit scores work, you’ll be in a great position to raise your score in the new year. Find out how to get started. 

Are you looking to raise your credit score? Maybe you want to buy a home and want the best possible interest rate, or want to qualify for the best credit card offers? Whatever the reason is, raising your credit score can make it easier to borrow money and save on interest.

While there’s no way to predict what moves will raise your credit score by exactly 100 points in 2024, here’s an overview of how the FICO credit scoring model works and ways to maximize your score.

The FICO formula

To be clear, the actual formula used to calculate your FICO credit score — which is the type of credit score most frequently used by lenders — is a well-guarded secret. As such, there’s no way to know what impact any specific action will have on your credit score.

Having said that, we do know quite a bit about how the FICO model works. Five categories of information are used to determine your FICO® Score, each with a specific weight. And by understanding how they work, you can use this information to do things that are likely to raise your score. In order from most important to least, here are those five categories.

Payment historyAmounts owedLength of credit historyNew creditCredit mix

Now, let’s look at these one at a time.

1. Payment history (35% of your FICO® Score)

It probably won’t come as a surprise, but the most important factor in your credit score is whether you pay all of your bills on time.

While there’s not really a way to quickly boost your credit score through this category (unless you have unpaid collection accounts or judgments), the best way to gradually build your score over time is by simply paying your bills on time, every single month.

2. Amounts owed (30%)

The second most important category of information is the amounts you owe. This doesn’t necessarily refer to the dollar amounts of your debt but considers things like the percentage of your available credit that you’re using (also known as your credit utilization ratio) and how much you owe on installment loans relative to the original balances.

The most obvious way to have a positive impact on this category is to pay down your credit card and other debts, but there are some outside-the-box strategies you can try as well. For example, you can ask your creditors for a higher limit so the balances on your credit cards will make up a lower percentage of your available credit.

3. Length of credit history (15%)

This category looks at a variety of time-related factors, such as the age of your oldest credit account, the average age of all of your accounts, and the ages of each account on your credit report.

The best way to boost this category is simply by letting time pass and not doing things like closing old credit accounts. For example, if you have an old “starter” credit card you barely use, it could seem like a smart idea to get rid of it. But if it’s one of your older accounts, closing it could hurt you in this category.

4. New credit (10%)

The new credit category mainly considers two things: the newly opened credit accounts on your report, and the number of times you’ve applied for credit within the past 12 months. The rationale is that people who are actively looking for more credit are more likely to get themselves into trouble.

The best way to maximize this category is to only apply for and open new credit accounts if you need them. And if you’re looking to boost your score in 2024, avoiding any new credit applications for an entire 12-month period could certainly help you do it.

5. Credit mix (10%)

This category is more important for consumers with shorter credit files, but the idea is that if you have several different types of accounts (credit card, mortgage, auto loan, etc.) it can be considered more favorable than if you have just one or two.

The bottom line

Again, there’s no way to predictably raise your credit score by exactly 100 points. And in some cases, it might not be practical. For example, the maximum FICO® Score is 850, so if you already have a 760, you literally cannot add 100 points to your score. And different credit moves will affect consumers in different ways.

The bottom line is that by knowing how the FICO scoring system works, you can use it to your advantage in your daily financial life and practice behaviors that are likely to build your score over time.

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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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