Money Management

Making a mistake on your insurance coverage could be a costly mistake. Read on to see why. 

Many people are fortunate enough to have health insurance coverage through their jobs. But if you’re not in that boat, then it’s important you put coverage in place independently. Otherwise, you might end up having to raid your savings account or rack up a giant credit card tab if you have an illness or injury that requires costly treatment.

If you don’t have access to employer health insurance, and you’re not yet 65 and old enough for Medicare, then you may be looking at buying a marketplace plan through HealthCare.gov. The good news is that if you’re buying one of these plans, you can’t be denied coverage based on pre-existing conditions as long as you enroll at the right time. And the right time is almost upon us.

On Nov. 1, open enrollment for marketplace insurance plans will begin, and it will last through Jan. 15. If you don’t apply for health insurance during this time, you’ll have to wait until next year’s open enrollment to sign up unless you experience a qualifying life event (which could include the loss of a job and the employer health plan that came with it).

Meanwhile, if you’re gearing up to choose health coverage during open enrollment, you have an important decision to make. If you pick the wrong insurance plan, it could cost you big time.

A tough choice

If you’re new to choosing marketplace converge, you should know that health plans come in four tiers:

BronzeSilverGoldPlatinum

Bronze plans commonly charge the lowest premiums, while platinum plans charge the highest. But the more you spend on premiums, the less you’re likely to spend on costs like copays and deductibles, and vice versa.

You’ll need to look at the big picture when choosing your plan. Picking the wrong one could have you spending more money on healthcare during the year.

Let’s say you’re buying coverage just for yourself and you select a bronze plan with a monthly premium of $300. That may be more appealing than a silver plan with a monthly premium of $400, since you’re paying $3,600 for the year off the bat instead of $4,800.

But what if the bronze plan comes with a $2,800 deductible and the silver plan comes with a $1,200 deductible? If you don’t end up getting hurt or sick at all during the year, and you’re only covering your premiums, then the bronze plan might work out better for you.

But if you’re forced to cover that entire $2,800 deductible, then you’ve lost money right there. In that case, you’re talking about spending $6,400 for the bronze plan for premium plus deductible instead of $6,000 for the silver plan. And that’s not even taking copays into account.

On the flip side, one thing you may not want to do is buy a plan with the highest premiums. You could end up paying for coverage you don’t end up needing.

A gold plan with a $500 monthly premium might come with a deductible of just $800. But you’re paying $6,000 a year for coverage. If you only see the doctor once for a minor illness and have to pay $200 into your deductible, you’ve just spent $6,200 when you could’ve spent $3,800 instead on a bronze plan.

How to find the right health insurance plan

One of the toughest things about choosing health insurance during open enrollment is that you can’t see into the future. As such, you can’t predict just how much you’ll actually use your coverage.

But one thing you can do is consider your medical needs from previous years. If you normally find yourself needing a doctor a lot or have medical conditions to manage, then a bronze plan may not be your best choice, because in that scenario, you may be more likely to have to cover a large deductible in full.

If you have children, take that into account, too. Kids tend to get hurt and pick up germs at school. Buying the lowest-tier plan could mean spending more by having to cover costlier copays and meet a huge deductible.

You’ll also want to consider one fringe benefit of choosing a plan with a higher deductible — HSA eligibility. Plans with higher deductibles that are compatible with HSAs could open the door to a world of savings on your taxes. The good news is that when you pull up a list of your plan choices through HealthCare.gov, it should show you which plans are HSA-compatible so you don’t have to guess at that information.

Finally, give yourself time to compare your plan choices. Rushing through the process of choosing healthcare coverage could make it so you’re less likely to pick the best plan for you.

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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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The Prime Visa offers an instant $150 Amazon gift card upon approval until 6 p.m. EST on Oct. 31, 2023. Learn how to apply here. 

If you have an Amazon Prime membership, the Prime Visa is currently offering a $150 Amazon gift card instantly upon approval. After you apply and your application is approved, the gift card is loaded to your account.

It’s a valuable welcome offer from one of the top store credit cards. I have the card, and it’s what I use for all my Amazon spending. But you won’t be able to get that $150 gift card much longer. The offer will be removed on Oct. 31, 2023 at 6 p.m. EST. If you’re a Prime member, I’d highly recommend applying before then.

Apply now for the Prime Visa.

Why every Prime member should have the Prime Visa

It’s pretty rare that I consider a credit card a must-have. The right credit card usually depends on your lifestyle and spending habits. The Prime Visa is an exception. For shopping on Amazon, it’s the best credit card I’ve found, for a few reasons:

It earns an unlimited 5% cash back on Amazon.com. That’s the highest rate I’ve seen for Amazon spending. It also earns an unlimited 5% back on Amazon Fresh orders (online and in-stores), at Whole Foods Market, and on Chase Travel purchases.It has a $0 annual fee. You can add it to your wallet without paying anything.Cash back is easy to redeem and available quickly. You can redeem your cash back on Amazon.com as early as the next day. I always apply mine to my next Amazon order, but you can also redeem it for cash back, gift cards, or travel.

Let’s say you spend $300 per month ($3,600 per year) on Amazon. With the Prime Visa, you’d earn $180 in cash back per year. Plus, you can get that $150 Amazon gift card if you apply before the offer ends.

Apply now for the Prime Visa.

So even if you have other rewards credit cards you’re satisfied with, the Prime Visa is still probably worth getting. In my case, I use travel cards for most of my spending. But every time I shop on Amazon, I pay with my Prime Visa.

The Prime Visa could work well in a one-card wallet, too. It also earns 2% back at restaurants, gas stations, and on local transit and commuting. On other purchases, it earns 1%.

How to apply for the Prime Visa

The Prime Visa is aimed at Amazon shoppers with good credit. It’s recommended to have a FICO® Score of 670 or higher to apply. That doesn’t mean you’re out of luck if your credit score is lower than that. You could still be approved, but it’s less likely.

Apply now for the Prime Visa.

There’s one other important thing to know about when applying for the Prime Visa. Chase is the card issuer, and it’s known for denying applicants who have opened too many credit cards recently. Specifically, if you’ve opened five or more credit cards within the last 24 months, Chase will most likely deny your application. This unofficial guideline is known as Chase’s 5/24 rule.

If you’re a Prime member, you have good credit, and you’ve opened fewer than five credit cards in the last 24 months, then you can likely qualify for the Prime Visa. With its benefits, it’s well worth having. Since the $150 Amazon gift card offer ends on Oct. 31, 2023 at 6 p.m. EST, make sure to apply before then.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Target, and Visa. The Motley Fool has a disclosure policy.

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Trader Joe’s offers plenty of delicious vegan options that even non-vegans will love. Check out the best vegan items that cost less than $6. 

If you’ve ever toyed with going vegan, you may be worried about whether you can afford it. Oxford University researchers found that a vegan diet can actually reduce your food budget by as much as one third, assuming you’re eating whole foods and you’re not dining out. But plant-based meat substitutes can be over 300% more expensive than regular meat.

Fortunately, Trader Joe’s has plenty of convenient and affordable tasty vegan products. Here are the six best Trader Joe’s products for less than $6.

1. Vegan Enchilada Casserole ($5.99)

Check out the Vegan Enchilada Casserole if you’re seeking an easy comfort food and a one-dish meal. It’s stuffed with several veggies, including zucchini, onions, and poblano peppers, then topped with a red chile sauce plus a mix of shredded vegan cheeses. One package contains two-and-a-half servings, but if you’re making a meal for two, you may want to pair it with rice and beans or a salad.

2. Japchae Korean Glass Noodles & Vegetable Stir Fry ($3.49)

The Japchae Korean Glass Noodles & Vegetable Stir Fry makes for an easy microwaveable lunch to keep on hand. It consists of sweet potato glass noodles paired with flavorful vegetables like onion, spinach, and bell peppers mixed with soy sauce. If you’re seeking a little extra kick, consider topping it off with your favorite vegan Sriracha sauce.

3. Soy Chorizo ($2.99)

Even meat lovers rave about Trader Joe’s vegan Soy Chorizo, which tastes a lot like real chorizo. It’s made from soy protein and seasoned with paprika, red pepper, garlic powder, and vinegar. The Soy Chorizo is perfect for tacos, breakfast burritos, or as an addition to breakfast potatoes.

4. Vegan Kale, Cashew & Basil Pesto ($3.99)

Trader Joe’s Vegan Kale, Cashew & Basil Pesto packs all the flavor of traditional pesto sauce (which usually includes Parmesan cheese) with a bit of extra texture courtesy of the kale. TJ’s vegan pesto is tasty when paired with crackers, veggies, or bread. It also makes for a delicious pizza sauce. You can top it with Trader Joe’s Vegan Feta Cheese Alternative ($4.29).

5. Pulled Jackfruit in Smoky BBQ Sauce ($2.99)

Jackfruit is a popular meat substitute because its texture is similar to shredded chicken and pork. So if you’re craving barbecue but sticking to a vegan diet, look no further than Trader Joe’s Pulled Jackfruit in Smoky BBQ Sauce. Use it in barbecue sandwiches or tacos, or serve it over rice.

6. Hold the Dairy! Vegan Chocolate Mini Cones ($3.99)

Eating vegan doesn’t mean you can’t scream for ice cream. Trader Joe’s has a few different vegan ice cream options, but the Hold the Dairy! Vegan Chocolate Mini Cones are among the best. The ice cream is made from coconut milk and vegan chocolate and served in a tiny crunchy wafer cone. There are 12 mini ice cream cones per box, so there’s plenty for the whole family.

How to save money at Trader Joe’s

Shopping at Trader Joe’s could save you money on groceries, given that the prices are pretty reasonable. There are a few caveats, though: Trader Joe’s doesn’t offer sales, discounts, or coupons. And the portions are often relatively small, so if you’re feeding a large family or you like to buy in bulk, you’re probably better off with a warehouse club, like Costco or Sam’s Club.

If you’re shopping at Trader Joe’s, though, here are a few money-saving strategies:

Use the Fearless Flyer. Trader Joe’s features new products, recipes, and various shopping tips in this little newsletter. You can use it to plan meals ahead of time.Stick to a shopping list. It’s easy to spend your entire grocery budget loading up on snacks at Trader Joe’s. To curb impulse buying, make a list before you go to the store.Return any items you don’t like. Part of the fun of shopping at Trader Joe’s is trying new products, but every so often, you’ll encounter a dud. If a product doesn’t live up to your expectations, don’t be afraid to return it, as Trader Joe’s is known for its generous refund policy.

No matter where you do your grocery shopping, consider using your favorite credit card and paying off the balance in full each cycle. The best grocery credit cards offer as much as 6% cash back, which can add up to serious rewards 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.Robin Hartill, CFP® 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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There’s nothing like the feeling of accomplishment that comes from meeting a big goal. Read on to learn what one writer is planning to do next. 

I’m a very goal-oriented person, and this is a quality that has persisted in me through all the circumstances and many (MANY) changes I’ve seen over my nearly four decades of life. As I write this, I’m feeling extremely proud of myself for meeting the biggest savings goal I’ve ever set. Last year, I decided that I wanted to save $50,000 to buy a home in 2024, and I have officially hit the target.

Based on home prices in my area, $50,000 will give me a 10% down payment and pay for closing costs (and expenses like a home inspection). Plus, it’ll cover the cost of movers — I’m moving out of a second-floor apartment, and I will pay professionals to haul furniture down the stairs.

Finally, my savings should leave me with an emergency fund after I’ve paid other expenses. I’ve heard too many home-buying horror stories about people needing to cough up money for a big repair not long after purchasing a house, and I’m coming from years of renting (and therefore minimal maintenance costs). Since I’m a firm believer in Murphy’s Law (if something can go wrong, it will) and I’ll be buying an older house, I want to have cash savings to cover these costs.

So now that I’ve hit my target, I’m done saving, right? Nope. In fact, I’m hoping to stick another $10,000 in the bank before it’s time to get the ball rolling on buying a home. Here’s why.

Owning a home is expensive

I expect my monthly housing costs to roughly double when I go from renter to homeowner. Right now, those costs amount to rent and a renters insurance policy. But once I sign my name on a mortgage loan, I’ll be responsible for monthly mortgage and interest payments. Plus, I get to take on homeowners insurance and property taxes.

And there are also the many other costs of homeownership that don’t necessarily come into play every month. These include maintenance as well as any big repairs that crop up. Having an extra $10,000 saved would help me feel better about taking on this responsibility.

I’m self-employed

I quit my last W-2 job at the start of the year and dove headfirst into freelance life. The flexibility has been wonderful for my mental health, and my productivity has put my finances into the best shape ever. That said, buying a home as a self-employed person could prove to be more difficult than if I were a salaried employee.

If I can amass more money on top of my $50,000, I’ll have more cash reserves to show a mortgage lender, and ideally, that would provide reassurance that I’m not a risky borrower. Mortgage rates are already higher than I want to pay (the average for a 30-year fixed mortgage is about 8%, according to Freddie Mac). So more money in reserve coupled with my excellent credit score may help me overcome any potential stigma from being a freelancer.

Want to meet a big savings goal?

I’ve written before about my progress on my goal, but it bears repeating here: If I could do this, so can you. Here’s how I did it.

I set smaller goals

A huge savings goal can be intimidating, so I found it easier to approach it week by week. I ran my numbers and knew that I could afford to save a certain amount every week. And with very few exceptions, I hit those goals.

I paid myself first

When I get paid every week, I take Uncle Sam’s cut out first (as a freelancer, I have to pay my own taxes in quarterly installments). Then I immediately take out the money I’m saving for future goals, like buying a house and vacation expenses.

If you wait until all your bills are paid and your fun money is spent, you might struggle to scrape up the money to save. Instead of putting it off, take it off the top.

I daydreamed about buying a home

Imagining myself as a homeowner and thinking about everything I’ll be able to do (like installing cat shelves for my furry roommates and creating a real guest room for houseguests) definitely kept me on track. If you’re saving for a goal, take some time to imagine how wonderful it’ll be to meet it. You might just find even more motivation to save.

I intend to keep taking the above steps to stick an additional $10,000 into my high-yield savings account before I’m ready to start the buying process next year, and they can help you meet any savings goal you’ve got, too. Take it from me — your dreams are worthwhile, and you can make them a reality if you make the right moves to save money for them.

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 positions in and recommends Target. The Motley Fool has a disclosure policy.

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When you’re paying for professional advice or buying items you’ll use often, it can be more financially sound to spend a little extra. Find out why. 

If you are trying to be frugal so you can keep more money in your checking account, it may seem like your goal should be to spend the least amount possible on purchases you make.

In reality, though, this is not always the case. In fact, here are three situations where it may make sense to run up a little higher credit card bill or to take a little more money out of savings to pay a higher price. Why? Because doing so could save you money in the end.

1. When you pay for high-quality professional help

If you need the services of a professional, it often doesn’t pay to find the cheapest professional out there. Quality service providers often charge a premium price, but this cost can be worth it.

Think about it: If you pay a cheap mechanic to fix your car’s brakes and they scam you by putting in used parts or even the wrong parts, or if you pay a substandard lawyer and you lose your case, you may have saved money upfront on their service fees, but you’ll be out a lot more in the end.

To make sure you find the best quality help, ask for referrals from friends and loved ones and read online reviews carefully. Choose your service provider based not on who is offering the absolute lowest price out there, but who is the most competent, trusted person whose expertise you can afford.

2. When you buy quality products for items you must interact with regularly

There are some items that you have to use every single day and that can make a big impact on your quality of life. It can pay to spend more for these things and not buy the cheapest version. There are a few reasons for that.

First, the items are less likely to wear out or need costly repairs if you buy quality versions that cost more than cheap ones. If you can buy a $50 pair of shoes and they last five years or a $10 pair of shoes and they last six months, you’re better off with the more expensive pair.

Second, buying a better quality product can help you avoid a lot of aggravation. If every time you use an item, you’re frustrated because it doesn’t work as expected, you’re likely to replace it sooner than if you had bought a better product in the first place.

3. When you buy comprehensive insurance

Finally, buying more than the minimum required insurance coverage could end up saving you a lot. See, most states only require liability auto insurance. This pays for damages you cause to others, but that doesn’t pay for your own losses. And if you’re buying a home, mortgage lenders generally require only homeowners insurance coverage for the dwelling, but not for personal possessions.

Getting too little insurance coverage could leave a person with huge bills when a disaster happens, though. A driver without collision coverage who hits a deer or who gets into a single car accident could have to pay all costs of repairing or replacing their car out of pocket, while a person who has only dwelling coverage could have to pay to replace all their personal items after a fire. It’s better to have coverage for all these costs in case something goes wrong.

The bottom line is, cheaper isn’t always better. Consider the circumstances carefully to decide whether spending more upfront is going to save your personal finances from potentially much bigger costs over the long run.

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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.

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This writer made a nice chunk of free money — and all she had to do was open a high-yield savings account. Keep reading to learn why you should, too. 

Receiving passive income is when you don’t have to lift a finger and can still earn money. As someone who lived paycheck to paycheck for years and dangled over a proverbial cliff with my finances for most of my adult life, getting to watch my money earn money for me is a new experience.

But as I write this, I’ve earned $1,371.32 in passive income so far this year. What’s my secret? I keep the money I’m saving to buy a house, pay my freelance taxes, and take vacations in a high-yield savings account.

What’s a high-yield savings account?

You likely have some experience with a standard savings account — these simple bank accounts are often the first ones you get as a kid or teenager. They’re pretty straightforward: In exchange for funding the account (and often being limited to six or fewer convenient withdrawals per month), you earn a small amount of interest on your money. And I do mean small. I actually have two savings accounts — one is with a big national bank and the other is with an online-only bank. My savings account at the national bank is primarily a way to provide overdraft protection for my main checking account, and it earns a meager 0.01% APY.

Meanwhile, I have the bulk of my savings (including the decent sum I’ve amassed to buy a house next year) in an online high-yield savings account that currently earns an APY of 4.25%. I have the date that my interest is paid to me every month marked in my calendar, and I actively look forward to it, because I get to put that bonus money toward whatever goal I want. The best high-yield savings accounts are overwhelmingly offered by online-only banks.

Online banks can pay you a higher rate on your savings because they have fewer overhead costs — remember, they exist in cyberspace and don’t have physical branch locations to maintain. Online banks also tend to come with excellent mobile banking apps and customer service, so they’re worth considering if you want to take your banking activities into the 21st century.

It’s the perfect time to open a high-yield savings account

We’re still struggling with higher inflation (though thankfully, less so than in 2022). As of this writing, the most recent Consumer Price Index Summary report found that inflation stood at 3.7% in September. If you have cash saved that isn’t earning an APY of at least this much, your cash is declining in value before your eyes. Yikes!

Thankfully, many high-yield savings accounts are earning well above this figure — 4%, 5%, and sometimes even more. Rates are up for these accounts (my own savings account’s APY has jumped several times in the last year) because of the actions being taken by the Federal Reserve to mitigate inflation. The Fed has raised the federal funds rate 11 times since last year. And while the Fed doesn’t set savings account rates, banks have responded to the rate hikes by increasing APYs on savings accounts (and also increasing APRs on personal loans and credit cards). In short, it’s an excellent time to have money in the bank.

Research from The Ascent found that only 31% of Americans have a savings account paying at least 4% APY. These high APYs won’t last forever (they are variable, and when the Fed lowers rates, your bank will also lower your savings APY), so take advantage while you can. You might not have considered opening a new high-yield savings account, but I hope you’re thinking about it now — it’s the perfect time to open one and let your money earn more money for you.

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.

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