Money Management

Being a football fan is a big investment, both emotionally and financially. Check out a few tips that can help you save money throughout the season. 

If you’re a casual football fan, you might catch a game here or there when they’re on TV, and you probably follow the standings throughout the season to see how your local team is doing. But if you’re a more dedicated fan, you’re likely much more invested than that. You could end up spending a lot of money throughout a season, whether on game tickets, team gear, or streaming services that allow you to watch every game.

All these costs can take a major toll on your personal finances, so it’s worth finding ways to lower your costs where you can. With that in mind, here are some tips for enjoying the football season that will leave more money in your savings account.

1. Shop grocery sales and use a rewards credit card

Food costs at grocery stores rose 2.4% from September 2022 to September 2023, according to the USDA. And that’s alongside all the other price increases we’ve been experiencing thanks to inflation the past few years. These higher prices can make your game-day meals more of a burden if you’re hosting a get-together.

If you can plan your menu ahead of time, you’ll be able to look for sales at the grocery store that can help lower your food costs. If ground beef or turkey is on sale, you can whip up a hearty chili for your guests. Or if the price of bratwurst drops, you’ll know you can fire up the grill without worry.

Another good idea is to use a rewards credit card to pay for your groceries. There are grocery store credit cards that can earn you 5% to 6% cash back on your food purchases, which can help offset a good chunk of your costs.

2. Shop secondhand for cool vintage gear

If you’re a football fan, you most likely have at least one item of team gear in your closet — and I’d bet you have even more than that. But repping your team can be expensive; fitted hats can cost about $45, and team jerseys can go for a whopping $175. Getting suited up on game day is not for the faint of heart or light of wallet.

If you’re looking to find team gear for less, try shopping secondhand. You can search on websites like eBay and Poshmark, visit secondhand shops, or even check out garage sales. You could end up with really unique and well-made items for just a couple of bucks.

3. Carpool or take public transportation to the game

I’m sure I don’t need to tell you about high gas prices, but if you’re planning to drive to a game, you should also consider how much you’ll be paying to park in a stadium lot. Prices vary by stadium, but they can soar to $100 for a parking pass on game day, and only 12 of the 32 teams charge less than $30.

If you’re going to a game, make a plan to carpool with your pals so you can share this cost. Or better yet, see if you can take public transportation. Some stadiums may be better set up for this than others, but if you can get to the game for just a few dollars, it will be worth the effort.

4. Tailgate rather than eating in the stadium

Food and drink costs are another line item that fluctuates depending on the location, but if you’re planning to eat and drink in the stadium, you can pretty much bet that it will cost you a pretty penny. Some teams charge as much as $15 for a beer and $7 for a soda.

A better bet is to plan ahead and tailgate in the parking lot before the game. You can supply enough food from your grocery budget to keep you full throughout the game, and can enjoy most, if not all, of your libations for the day for a fraction of the cost.

If you’re worried about grilling in the lot, there’s no need to involve charcoal and flame. My family used to pick up sandwiches from our local deli and pre-blend a bottle of Bloody Mary mix to enjoy before the game for a filling meal and easy cleanup.

5. Use a travel card and points when going to away games

Many football fans make an effort to travel to away games for a memorable experience, but that doesn’t come cheap. If you’re planning to make a trek for a football game, use a travel rewards credit card to earn miles on your purchase.

And if you already have points banked in your account, now’s the perfect time to use them to offset the cost of your flight and accommodations.

Spend less, cheer more

No matter how much you believe in your lucky socks, they’re not going to make your team win every game, and they’re not going to lower your costs of being a football fan. Instead, take some proactive steps to save on your football-related costs so you can feel better about cheering on your team throughout the season.

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If you’re planning on spending money on holiday gifts, opening a new credit card could make a lot of sense. Check out what you should keep in mind. 

The holiday season is approaching fast. If you’re like most people and are planning to spend money on travel, entertainment, and gifts, you may want to open a new credit card first.

Here’s why the holidays could be an ideal time to sign up for a new rewards card.

Your holiday spending could pay off big time for you

There’s a very simple reason why signing up for a new card during the festive season could make a lot of sense. See, many credit cards offer generous bonuses for new cardmembers — but there are usually minimum spending requirements you have to fulfill to get the bonus. The cards offering the most generous bonus points, miles, cash back, or other rewards generally require you to spend as much as $1,000 in the first 90 days after becoming a cardmember.

Now, charging that much on your cards in a three-month period may not be something you do on an ordinary basis. But when you are doing your holiday shopping, chances are good that you’ll hit this target easily. In fact, consumers plan to spend an average of $1,652 this holiday season according to a new study. That’s 14% more than last year, and it’s the first year that expected spending will surpass pre-pandemic spending levels.

If you spend anywhere close to this average amount, your holiday spending alone could be enough to put you over the top so you can get the new cardmember bonus.

Of course, ideally, your new card will also have a great rewards program so not only will you get that extra bonus upfront, but you can also hopefully earn plenty of additional rewards for all those dollars spent.

Should you open a new credit card this holiday season?

If you have the opportunity to earn a huge new cardmember bonus for your holiday spending — and you can also get a card that will provide generous points, cash back, or miles for the types of spending you’re doing — then it may seem like a no-brainer to sign up.

And, indeed, that is the case for most people. There are, however, a few caveats. For example:

You don’t want to open a new credit card if you’re planning on taking out large loans soon. Applying for and opening a new card can temporarily reduce your credit score. If you’ll soon be getting a mortgage or car loan, you don’t want to take that hit to your credit score before doing so.You want to make sure you trust yourself not to overspend. If you get a new credit card, charge a fortune on it, and end up not being able to afford to pay it back, you could get stuck with interest charges that negate the value of your rewards and your new cardmember bonus.

Outside of these situations, though, as long as you’ll be able to pay off the holiday expenses, there’s little reason not to take advantage of a generous bonus offer if your festive spending will enable you to meet the requirements to earn your bonus bucks.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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A $25,000 car comes with payments that are determined based on length of repayment timeline and interest rate. Check out monthly costs here. 

In the last quarter of 2022, the average amount financed to buy a new car was $40,833, and the average amount financed on a used car was $30,217, according to data from Edmunds. Not everyone can afford to spend so much, though. And while the used car market has not been favorable to buyers in recent months, it is still possible to find a vehicle for under $30,000.

So, what happens if you decide to buy a $25,000 car and you can’t pay for it out of your savings account so you need to get a car loan? How much would the monthly payments be that come out of your checking account? Here’s what you need to know.

The monthly cost for a $25,000 vehicle

The monthly payments on a $25,000 car would be determined based on:

How large of a down payment you make versus how much you borrowWhat rate of interest you pay for your auto loanHow long you take to pay off your debt

Based on Edmunds data, the average interest rate at the end of 2022 was 6.5% for new cars and 10.0% for used cars. The average loan term for new cars was 69.7 months, while the average loan term for used vehicles was 70.5 months. Your own loan may look different, though.

The table below shows how much you might expect to pay, assuming you made a 5% down payment and borrowed $23,750 for your vehicle. As you will see, if you make your loan payoff term longer, your payment drops but your total borrowing costs increase, so you’ll usually want to make sure you don’t choose too long of a payment term to avoid increasing total vehicle costs over time.

How can you find an affordable vehicle?

You’ll typically want to ensure that your auto loan and auto insurance payments don’t exceed around 10% to 15% of your monthly income. Based on this amount, a loan for a $25,000 car may or may not be affordable to you. And unfortunately, finding a cheap car can be a challenge.

If you’re looking to spend $25,000 or less, some options may be to:

Look for a private party seller — just be sure to get the vehicle checked out carefully by a mechanic.Purchase a vehicle with a manual transmission, which may come at a lower cost.Look for car auctions in your area, especially those selling vehicles used by government agencies, as they are often well maintained.Be flexible about what kind of car you drive.Ask local dealerships about old inventory they might be more willing to haggle on.Consider buying a car through Costco or Sam’s Club to score more savings.

By taking these steps, ideally you can find a car that’s well within your price range so you’ll be ready to move forward with your purchase without busting your budget.

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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.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Want to rock your finances in 2024? Read on to see how you can set the stage for that now. 

At this point, we’re winding down 2023. And if you didn’t quite meet your financial goals this year, well, that’s understandable.

This year, inflation has remained stubbornly high. The cost of borrowing has also been very high on the heels of the Federal Reserve’s numerous interest rate hikes. So if you had to borrow money in any capacity in 2023, you probably got stuck with a higher interest rate than you normally would’ve received, which no doubt hurt your finances.

If you’re not so thrilled with your financial picture at this stage of the year, that’s understandable. So if you’d like to close out 2024 feeling differently, here are some moves to make in the coming weeks.

1. Boost your emergency fund

Recent data from SecureSave found that 63% of Americans couldn’t cover a $500 unplanned expense with savings. If you can say the same, it’s really time to focus on boosting your emergency fund.

If you can spend the coming weeks putting a bit of money into your savings account, you’ll have more of a financial cushion going into 2024. That could make it easier to avoid costly debt in the new year.

2. Map out a credit card debt payoff plan

If you’re carrying debt on your credit cards, you surely want to get rid of it as quickly as possible. And that may be possible in 2024 if you come up with a game plan in the next few weeks.

Research your options to see what makes the most financial sense for you. A balance transfer might light a fire under you to get your debt paid off by the end of 2024, since many of these offers have a limited-time 0% introductory period. But that also puts a lot of pressure on you.

If you’re more invested in whittling down your debt in 2024 without necessarily committing to having it paid off in full, a personal loan could be a better bet. You won’t have to worry about an introductory rate running out on you. Rather, you’ll sign a loan that you make the same monthly payment on until your debt is paid off.

3. Set up automatic transfers to your IRA

Will 2024 be the year you finally start saving for retirement, or the year you finally manage to max out your IRA? If you get into the habit of contributing to that account now, it might be.

In the coming weeks, set up an automatic transfer so that money lands in your IRA every month after every paycheck hits your checking account. And if you’re not sure how much you can afford, err on the side of a smaller amount, but then aim to ramp up if you see that you’re able to.

As of now, we don’t know what next year’s IRA contribution limits will look like. This year, they’re $6,500 for savers under 50 and $7,500 for those 50 and over.

If you’re 30 and want to max out your IRA for the first time in 2024, you’ll need to set aside a minimum of $541.66 a month — more if the limit rises in the new year. If that’s not doable for you, don’t sweat it. Figure out what amount is manageable and go with that.

The moves you make in the coming weeks could set you up for major success in 2024. Whether you’re bummed about the state of your finances now or are reasonably happy but have even loftier goals for the new year, it pays to make that 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.
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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Mortgage points allow you to buy down the rate you’ll pay by prepaying interest. Learn why they’re not a good idea in this rate environment. 

When you get a loan to buy a house, you want to pay the most affordable interest rate possible. After all, you will be paying your home loan for decades, so if you are charged a high rate, you’ll pay a fortune in interest.

Most mortgage lenders do give you the chance to lower your rate, though. You can do this by buying points. A point costs 1% of the total amount that you are borrowing and it will reduce your rate by 0.25% So if you borrow $500,000 and your rate would be 7.00%, you could pay $5,000 to buy a point and bring your rate down to 6.75%.

There are some times when it is smart to buy points since you can reduce monthly payments and total borrowing costs over time. Now is probably not one of those times. Here’s why.

Why you may not want to buy points right now

You likely don’t want to buy mortgage points in this current market because mortgage rates are really high right now — higher than they’ve been in decades. Since rates are high, it may seem like it makes more sense than ever to buy points and bring them down. But that’s not necessarily a smart move.

See, when you pay the upfront fee to buy points, it takes a while to break even for that initial fee. Let’s take our above example of the $500,000 loan at either 6.75% or 7.00%, assuming you get a 30-year fixed rate mortgage. Here’s what your payment would look like depending on whether you bought the point to get the lower rate.

You’d save $84 a month on your monthly mortgage payment due to the fact you’d pay less interest each month at the lower rate. But you’d have paid $5,000 in order to be able to score this savings. At a rate of $84 in savings each month, it would take you 59.5 months (or close to five years) before you end up making up for the initial money you paid for the point.

If you kept the mortgage loan beyond that five-year time period, then you’d continue to enjoy that $84 a month in savings for the rest of the time that you have the mortgage. But if you refinanced your loan at any time during the next 59.5 months, you would not make up for the initial money you spent on buying down your rate.

This means it makes sense to invest in points only if you’re confident you’ll keep your loan for five or more years. And, since rates are so high right now, you’d only want to do this if you assume rates won’t drop enough in the next five years for you to refinance at a lower rate.

Many experts believe mortgage rates are going to fall by the end of 2024, and there’s reason to believe that today’s high rates simply are not sustainable over the long term. So unless you want to place an expensive bet on rates staying near record highs for years to come, it very likely does not make sense to spend thousands to buy down your rate.

Make a smart choice about buying mortgage points

No one can predict with certainty what mortgage rates will do. If you believe that you’re going to stick with the loan you get today for long enough to break even on the upfront costs of points, then buying points may be the right choice for you.

Just be sure you do the math and really consider how long it’s going to take you to break even for buying down your rate. You may just find that it makes little sense to commit to staying with your current loan for that long.

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It’s not every day that you get bonus money. Read on for a strategy that could set you up with extra cash in your brokerage account that you can invest with or use however you please. 

To invest in a brokerage account, that account needs to be funded. And generally, the person funding that account is none other than you.

You might come up with some cash to invest by spending carefully and cutting back on non-essential expenses. Or, your investment dollars might come from the side hustle you push yourself to work.

But what if you were able to score a continuous stream of cash in your brokerage account? It might sound like a scam, but it’s not. All you need to do is add dividend stocks to your portfolio.

The upside of dividend income

Not all stocks pay dividends, but many well-known (and not so well-known) companies do. When a company pays dividends, it’s sharing its wealth with its investors.

See, companies don’t have to pay dividends. A company that opts not to pay dividends can instead choose to reinvest its revenue back into the business and grow it. But dividends tend to keep investors happy, so there can be pressure on businesses to pay them.

Usually, dividends are paid quarterly, though some companies pay them monthly. Companies can also choose to pay a special dividend, which is a one-time payment outside of a regular dividend schedule.

As an investor, dividend income can benefit you in two ways. First, you can cash out your dividends and use that money however you please, whether it’s paying bills or improving your home. You can also reinvest your dividends so you’re able to grow more wealth in your brokerage account.

Many brokerage accounts let you set up automatic dividend reinvestments. In that case, you wouldn’t have to take action after receiving a dividend. You’d sit back and do nothing, and that income would be used to buy more shares for your portfolio.

Be careful when choosing dividend stocks

Some investors focus their strategies on dividend income. But fixating on dividends could lead you to buy a company that’s not such a great investment. It’s a good idea to think of dividends as bonus income, and to focus on companies whose stock you think will gain value over time.

As an example, Realty Income Corp, a real estate investment trust (REIT) that owns a portfolio of commercial properties, has a dividend yield of 6.27%. That’s pretty generous.

But if you look at the company’s performance over the past year, you’ll see that its stock is down almost 17%. So while you may be tempted to chase that high dividend yield, in a situation like this, you’d want to do some research to see why the stock has lost value over the last 12 months and what the company’s long-term prospects entail.

All told, it’s possible to score extra cash in your brokerage account through dividend investing. But you don’t only want to look at dividends when choosing your stocks. Instead, make sure the companies you’re buying are financially strong with ample growth potential.

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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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