Money Management

Having the right homeowners insurance is crucial for every property owner. Keep reading to learn why. 

Every property owner needs a good homeowners insurance policy. While paying the premiums for comprehensive coverage out of a checking account may not be fun, it’s absolutely necessary to put the right protections in place.

Here are five reasons why buying good insurance for your home is so important.

1.Property owners could be sued

Many accidents happen in private homes. In fact, 175,000 preventable injury-related deaths occurred in homes and communities in 2021. That’s 78% of all preventable deaths due to injury over the course of that year.

When accidents happen at private homes, property owners can be sued. They can be made to pay for medical bills, lost wages, pain and suffering, emotional distress, and wrongful death damages to surviving loved ones. The costs can be astronomical.

Liability insurance can pay for these costs up to policy limits. Without a liability policy as part of home insurance coverage, though, homeowners could be personally sued and financially devastated.

2. Rebuilding a house can be really expensive

It costs around $100 to $200 per square foot to construct a new house, according to data collected by Quicken. If a home is destroyed, the owner would need to pay to rebuild it out of pocket if they didn’t have homeowners insurance.

Since mortgage lenders have a vested interest in houses, lenders actually require insurance to make sure that their loan collateral can be rebuilt.

Homeowners without insurance would need to cover the costs of repairs or rebuilding their home personally with no help. If a homeowner with a mortgage somehow managed to go without insurance (which would be difficult, since lenders buy force-placed coverage if a homeowner lets a policy lapse), the owner would still be responsible for paying their home loan off too — even if the house was destroyed.

3. Most people own thousands of dollars’ worth of stuff

Most people keep their stuff at home. And those personal belongings are expensive. Allstate has a tool property owners can use to estimate how much their possessions are worth based on how much they own. Typically, even someone with the bare minimum of furniture and belongings owns tens of thousands of dollars’ worth of stuff.

Without home insurance, a property owner would have to pay personally to replace everything they have in their house.

4. Finding alternative housing can be expensive

If a house is damaged badly or destroyed, a homeowner will still need a place to live. The average cost of a hotel is $171 per night in the U.S., while the price of alternative rental housing can vary depending on property type.

It can be expensive to pay these added costs, especially as mortgage payments are still typically due as the home is rebuilt or repaired. A good home insurance policy will cover additional living expenses resulting from a covered cause.

5. Dealing with an insurance claim can be stressful

Finally, facing a disaster at home can be really stressful — especially if an insurer doesn’t pay promptly or doesn’t offer fair compensation. This is why it’s so important not just to buy homeowners insurance, but to buy good insurance from a trusted company.

Reviewing J.D. Power customer satisfaction surveys and the complaints database maintained by the National Association of Insurance Commissioners can help property owners find an insurer that will take care of them.

All of these are very good reasons why getting covered is so essential. Property owners should begin looking for the right insurance today if they aren’t confident they have the coverage they need.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

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 

Want to bank an extra $100 as we head toward the end of the year? Read on for ways to get it. 

It’s hard to believe that we’ve reached the second-to-last month of 2023. But at this point, stores are blasting Christmas music, supermarkets are advertising turkey specials, and just about everyone is starting to fall deep into holiday mode.

At a time like this, you might assume that adding an extra $100 to your savings account is a tall order. But here’s how you can boost your cash reserves by $100 this month without breaking a sweat.

1. Steer clear of pre-Black Friday deals

In the weeks leading up to Black Friday, you’re apt to come across your share of deals from a variety of retailers. Costco, for example, has a host of sales running right now through Nov. 12 specifically.

If you’re serious about growing your savings in November, don’t rush to capitalize on those deals unless there’s an item on your holiday list available at a discounted price. It can be tempting to stock up on fun kitchen gadgets or holiday sweets when they’re marked down. But if those aren’t things you need, the simple act of resisting temptation could help you meet your year-end savings goal.

2. Cut back on some of your Thanksgiving expenses

In 2022, the average cost of a Thanksgiving dinner for 10 was $64.05, according to Farm Bureau data. But if you’re hosting a larger crowd or you’re someone who tends to go all out for Thanksgiving, then your 2022 tab may have been much higher. And you may be facing comparable costs in 2023.

If you’re looking for a way to save $100 this month, one thing you can do is go lighter on your Thanksgiving spending. Instead of buying desserts from the higher-end bakery in town, get them from Costco, or ask friends to bake.

In fact, there’s nothing wrong with making this year’s Thanksgiving dinner a potluck affair if you’re trying to boost your savings. Assign each guest a side dish, appetizer, dessert, or beverage so you’re not stuck paying for every single grocery item on your list. And if you don’t feel comfortable outsourcing so many food items (say, you want to be mindful of allergies), at least ask guests to BYOB so you’re not spending a small fortune on wine.

3. Take on a seasonal side hustle

You may not have the desire to work a side gig all year round. But if you’re willing to hustle a bit in November, you might manage to pad your savings nicely.

This is a time when many people are eager to find unique gifts for friends and family. If you’re a baker or crafter, you can try to sell your wares and add your profits to your bank account.

You can also look at doing things like house-sitting or driving for a ride-hailing service in the coming weeks. People may be more apt to need the former due to Thanksgiving travel. And many people may be flying in to see family for the holiday, so if you live near an airport, you might manage to earn $100 by driving for a service like Uber over the long weekend alone.

Having an extra $100 in your savings could help you approach the new year with more financial confidence. And these moves could be your ticket to that extra cash.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Uber Technologies. The Motley Fool has a disclosure policy.

 Read More 

Going without home insurance is not worth the risk and some lenders won’t allow it. Find out just how much of a disaster it could be. 

Going without homeowners insurance may seem like a good way to save money. After all, monthly premiums must be paid for insurance coverage and those premiums average $2,305 per year. That’s a lot of cash.

In reality, though, making this choice could be a financial disaster. Here’s why it doesn’t pay to go without a policy.

Mortgage lenders won’t allow it

Any homeowner with a loan on their property absolutely cannot go without homeowners insurance. Their mortgage lender will not allow it. Lenders require dwelling coverage to pay to repair or replace the home, since the house is collateral securing the loan.

Lenders will require proof of insurance before closing on a home. And while a homeowner may try to cancel coverage after closing — even though they shouldn’t — this usually isn’t possible.

Many lenders require homeowners to include a monthly payment toward their insurance costs in each mortgage payment. This money is put into an escrow account, and the lender pays the insurer out of it when premiums are due.

Even when this isn’t the case, a mortgage lender is notified when a policy is canceled. The lender could buy expensive insurance, called force-placed or lender-placed coverage, to replace the canceled policy. Or, in some cases, the failure to maintain coverage will be a violation of the loan agreement that could prompt the lender to initiate foreclosure proceedings.

It’s not worth risking the forced purchase of an expensive policy or even the threat of foreclosure just to save on insurance premiums. Homeowners should not consider doing that.

It’s a bad idea even without a loan

People who don’t have a mortgage won’t have a lender mandating they get covered. But even homeowners who have a paid-off property can’t afford not to have coverage.

Without homeowners insurance, a property owner would have to pay out of their own pocket for any disaster. They might have to replace the home with no help after devastating events, like a fire. With new home construction costing as much as $100 to $200 per square foot on average (according to data amassed by Quicken Loans), this could get expensive very quickly — especially on larger properties.

Homeowners insurance should also provide coverage for more than just the dwelling (even though that’s all lenders usually require). It’s a good idea to buy liability coverage to pay damages in case someone gets hurt on the property, as well as personal property protection to pay for possessions at the home.

Most people simply cannot afford to replace every item they own if it is destroyed by a disaster at the house. And if someone is hurt or killed and the property owner incurs legal fees and is required to pay thousands — or millions — in damages, this would be a huge financial obstacle without insurance.

Because liability and personal property coverage are so important, people not only shouldn’t go without coverage but they should buy more than the minimum a lender would require. Anyone who can’t afford to rebuild their house and replace everything they own without struggling financially should contact a home insurer to make sure they have comprehensive homeowners insurance coverage in place today.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 Read More 

Went overboard during Amazon’s October shopping event? Read on for tips on paying that debt off. 

Amazon’s October Prime Day, known as Prime Big Deal Days, took place on Oct. 10 and 11 this year. And Amazon itself says the event was a success.

During that two-day span, Prime members saved more than $1 billion across millions of deals. And the event “outpaced last year’s holiday kick-off event, with more Prime members shopping this year,” said Amazon in a mid-October press release.

If you shopped your heart out during October Prime Day, you may, at this point, already have several items checked off your holiday shopping list. That’s a good thing. But you might also already be sitting on a pile of credit card debt. That’s a bad thing.

Normally, when you’re looking at a credit card balance, a good bet is to try to slash all non-essential spending until it’s whittled down. But let’s be real. With the holidays approaching shortly, now’s hardly the time to kick off a no-spend streak. If anything, you may find yourself spending even more than usual between holiday gifts, decorations, and travel.

But that doesn’t mean your October Prime Day debt is loomed to linger forever. Here’s how to work on paying it off.

1. Minimize your holiday spending

It may not be reasonable to eliminate all holiday spending. But it may be doable to spend less than you normally would so as not to add too much to your existing debt pile.

Think about the holiday expenses you have upcoming and try your best to set priorities. If it’s important to you to visit family, charge a flight or rental car on your credit card. But then aim to go light on gifts. And if you’re staying local, instead of hosting a blow-out bash that’ll cost you hundreds of dollars in food and drink, make it a more low-key or potluck affair.

2. See if there’s a more cost-effective way to pay off your balance

You might owe money from your Prime Day spending on a credit card charging 16% interest. There may be an option to lower the interest rate on your debt so it’s easier to pay off.

One route to consider is a balance transfer. If you’re able to qualify for a 0% introductory offer, you may get a reprieve from racking up interest for what could be 12 months, 15 months, or even longer in some cases. Just be careful, though, because the interest rate on a 0% introductory offer can soar once that period of leeway comes to an end.

You could also look at rolling your credit card balance into a personal loan. That way, you’ll get the benefit of fixed monthly payments. And if you can snag, say, a 9% interest rate on that debt, that’s better than 16%.

But do know that personal loans tend to come with borrowing minimums. If your Prime Day balance isn’t so substantial, you may not need to borrow enough to qualify for a personal loan. That said, if you’re planning to pile onto that balance with holiday spending, it might push you over the edge. That’s not really a great thing, but it is a point to consider.

3. Get a side hustle

So you racked up Prime Day debt, and you may be looking at adding to it in the coming weeks thanks to the holidays. If you don’t want that debt to linger well into the new year, then you may need to get on board with the idea of a side hustle.

The good news is that the economy is in solid shape right now, so you may find that a second job is pretty easy to come by. And it might be especially easy to get a side hustle now given that many businesses are looking for extra help during the holiday rush. In fact, if you earn enough from a seasonal side hustle, you might even manage to pay off your Prime Day balance before 2024 rolls around.

It’s hard to say no to an event like Prime Day when there are so many great deals to be had. But if you’re now sitting in debt, the sooner you manage to pay it off, the more money you stand to save on interest. Plus, carrying credit card debt can be stressful, and you don’t want to start the new year with that dark cloud looming over your head. So if you’re able to get that debt paid off in short order, you’ll be better off for it.

Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

 Read More 

Becoming a millionaire in 35 years is not as impossible as it may sound. Find out how even small contributions can add up and multiply over time. 

If you’re about to turn 30, the idea of one day becoming a millionaire may feel incredibly far-fetched. Especially because you’ve just weathered some super difficult years at what was also a key point career-wise. The pandemic and subsequent economic uncertainty was tough for many of us, but particularly so for millennials.

Even so, retiring with $1 million isn’t such a wild idea. The really powerful thing about starting early is that time can do a lot of the heavy lifting for you. Let’s start by looking at how you might find some extra cash to invest and then tackle what you might do with it.

How to find the money to invest

When I turned 30, I was living paycheck to paycheck in a big-city apartment I couldn’t really afford. If I could go back and tell my 30-year-old self one thing, it would be this: Make a budget. A budget puts you in the driving seat of your finances. It isn’t a scary numbers monster that’s going to gobble up all your fun. Quite the opposite, it will let you do many of the things you enjoy without breaking the bank.

Track your spending

If you’ve never made a budget before, start by mapping out your income and your expenses. You don’t have to track every cent, but you need to get an idea of how much you spend on different areas of your life — for example, accommodation, utilities, transport, groceries, and entertainment. I started by going through a bunch of recent bank statements, but you might prefer to use a budgeting app. Whatever route you choose, the important thing is to know where your money goes.

The next step is the bit I used to hide from. Look at your spending versus your income and see where you can get some wiggle room. Is there any non-essential spending you can cut? Deleting expenses like subscriptions or a gym membership you aren’t using can be easy wins, but you might need to go further. For example, in my early 30s, I was spending more than 50% of my income on rent. That, and a habit of buying rounds of drinks regularly, meant I often struggled at the end of the month.

Look for realistic cuts

Investing $100 a week is around $400 a month, which is a sizable chunk of your paycheck if you’re earning, say, $50,000 a year. You don’t need to find one big-ticket item to cut. Instead, try to shave small amounts off various parts of your spending. For example, you might be able to save $30 a month by cutting a subscription or two. Perhaps you can cut your grocery costs by reducing waste and using lower-cost stores. In my case, I moved to a lower-cost apartment and curbed my overzealous drink buying. Everybody’s situation is different.

You might be reading this and thinking, “I don’t know what will happen in the future, I’d rather have fun now.” I hear you. But it isn’t an either-or scenario — you can have fun now and build wealth for your old age. If you can’t save $100 a week, that’s OK. Start with a smaller amount and see if you can increase it over time. Even $10 a week can add up. If even that sounds unfeasible, think about ways you might instead increase your income.

Here’s how $100 a week could make you a millionaire

Investing doesn’t have to be complicated. At heart, it’s about buying assets that will increase in value and provide returns over time.

Here are some important lessons I learned on my investment journey.

1. Index funds and ETFs are your friends

If you’re worried about picking stocks, you’re not alone. The idea that I had to be the next Warren Buffett held me back at first, too. Here’s the thing: You don’t have to research and buy individual stocks. You can if you want to, but if that’s not your bag, that’s OK. Once you have a solid emergency fund, consider making regular contributions to your brokerage account, whatever shape your investments take.

For me, understanding index funds and exchange-traded funds (ETFs) was a game changer. Both help you build a diversified portfolio with a decent range of stocks or other assets. Index funds track a particular index, such as the S&P 500. Many ETFs also track indexes, such as the Vanguard S&P 500 ETF. Others, such as the Vanguard Total Stock Market ETF which I own, tracks all the stocks on the U.S. market.

READ MORE: Best online stockbrokers for beginners

2. Compound interest is a powerful thing

Let’s say you put $400 a month into an index fund that tracks the S&P 500. Some years the market will rise, and others it will fall. But over the past 30 years, the S&P 500 has delivered average annual returns of about 10%. The combination of compound interest and time is where that gets exciting. Here’s how investing $400 per month at a rate of 9% could add up over the years:

The table is very simplified. For example, it doesn’t factor in inflation or any increase in contributions you may make as your earnings start to grow. All the same, in 35 years time, your portfolio could be worth over $1 million and you’d only have invested $168,000.

3. You can get tax breaks on your investments

Tax breaks can mean your $400 goes even further. Find out if your company has a workplace plan, such as a 401(k) and whether it will match your contributions. If so, ask how much it will match and how you can sign up — that extra money can be a significant boost to your millionaire efforts.

If a 401(k) is not an option, you could set up your own individual retirement account (IRA). There are a few different types of IRAs. Without getting into too much detail, a traditional IRA lets you defer your taxes now, while a Roth IRA lets you contribute money you’ve paid tax on and skip taxes in your retirement. Both are available from most top stockbrokers.

Bottom line

Your early 30s can be a great time to start investing if you haven’t already done so. Use tax-advantaged accounts to maximize the amount you contribute. And, if you don’t want to have to actively research specific stocks, look into low-hassle investment vehicles like ETFs.

Our best stock brokers

We pored over the data and user reviews to find the select rare picks that landed a spot on our list of the best stock brokers. Some of these best-in-class picks pack in valuable perks, including $0 stock and ETF commissions. Get started and review our best stock brokers.

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.Emma Newbery 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.

 Read More 

This time of year often comes with a big price tag, but not every gift needs to cost a bundle. Check out a few ideas that can cost less, but be worth more. 

The leaves have fallen, the jack-o’-lanterns have been put out, and Mariah Carey has lit the official beacon: The holiday season has begun. While this should be a time of joy and celebration spent with loved ones, it’s often overshadowed by the slightly manic impulse to buy, buy, buy.

If you’re already feeling stressed about assembling your holiday shopping list, step back, take a breath, and know that you have plenty of time ahead of you. And if you have someone in your life who seems to have every gadget already or who is notoriously hard to please, consider one of these experience gifts instead of the usual store-bought item.

1. Cooking or crafting classes

Whether your gift recipient is an all-star home chef or a novice in the kitchen, a cooking class can be a great gift. You could even turn it into a shared outing and take the class together. It’s an excellent way to enjoy some delicious food, enhance a skill, and even try new cuisines that you’ve never had before. You could find a class at a local shop in your town, or you could search for online cooking classes that your recipient can sign up for and participate in from home.

Or if they’re more the crafty type, see what type of art classes you can find, whether it’s an embroidery lesson, a pottery class, or a paint-and-sip outing.

2. Plan a day trip

The adage “It’s the thought that counts” is oft repeated for a reason, and putting together a special agenda for a loved one certainly shows a lot of thought. You can personalize the trip to their interests, whether it’s a day at the museum and their favorite restaurant, a mini road trip to a town they’ve always wanted to visit, or a sightseeing staycation in your own city.

Your savings account doesn’t need to take a huge hit for this gift either. See if you can get free passes to local sights from the library rather than pay full price for entrance fees. Or use a rewards credit card that earns points at restaurants to get some cash back on your food purchases for the day.

READ MORE: Best Credit Cards for Dining and Restaurants

3. Guided tours

Taking a guided tour, whether in your own city or one nearby, can be a really fun way to spend a day. Tours can range from silly to educational to food-centric, so you’ll likely be able to find one that matches the interests of your giftee. I once gave a friend a certificate for a walking tour that stopped at multiple restaurants and bars when she moved cities, and she said it was an awesome way to explore her new surroundings.

Do some searching online to look for deals on any tours you’d like to take. You may be able to find coupon codes or discounts being offered, particularly as the holidays approach.

4. Snow tubing or sledding

Nothing says “winter” like careening uncontrollably down a snowy hill, laughing all the way. While ski lift tickets can be incredibly pricey (some resorts top $200 per day!), it can cost you little to nothing to go sledding. If you live in an area that gets enough snow, look up local spots where you can take your loved one sledding. Maybe it’s a steep hill at the edge of town, or maybe it’s a ski mountain that sells tickets to use the slopes and magic carpets.

Either way, you can spend a memorable, fun-filled day together. My husband and I took a day off work two years ago and went to a snow tubing park. We enjoyed it so much that we gifted our niece and nephew a day at the park the following winter rather than getting them more toys, and they still talk about how much fun they had.

Experience the holidays

Gift giving doesn’t have to mean giving things, and it doesn’t have to be a huge drain on your personal finances. When planning out your holiday shopping list this year, think of your recipients and what their interests are, and see if you can find an experience gift that will match what they love. And if you can share the experience together, that’s what the holiday season is really all about.

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