Money Management

Travelers often want to save as much money as possible on their trips. See which travel luxuries are worth paying extra for. 

Travel isn’t cheap. The typical cost of a vacation for two people is about $3,838 per week, according to research by Pacaso. With how much airfare and lodging can cost, it’s understandable why people would want to cut their travel expenses wherever they can.

But there are areas where it’s worth it to pay more. The point of travel, after all, is to have an enjoyable experience. I travel frequently, so I’ve seen firsthand when paying extra really makes a difference. I’ve found that there are a few travel luxuries that are well worth the extra cost for just about anyone.

1. Direct flights

Airlines charge a premium for direct flights, since they’re the fastest, most convenient option. Adding a layover saves an average of about 20%, according to Google Flights data. Trust me, paying an extra 20% is a bargain.

When you’re flying, every additional stop is another chance for an issue to occur. A direct flight gives you the best chance of a smooth trip. Each flight you need to take increases the likelihood that:

One of your flights is delayed or canceled.Your luggage gets lost or delayed.You miss a connecting flight.

It also takes so much more time and energy. Even if the flights themselves are short, you still spend a large chunk of your day navigating airports, finding a place to sit, and waiting around. By the time you get checked in at your hotel or vacation rental, you might not want to do anything else besides rest.

2. Highly rated hotels

I used to believe all the arguments against spending extra on a quality hotel. It’s just a place to sleep, why spend more if you’re going to be out all the time anyway? An Airbnb is cheaper, and you get a whole kitchen!

There are a few reasons I changed my mind and now set aside more money for nice hotels:

Cheap hotels are more likely to have issues. For example, I once stayed in a budget hotel that had an elevator out of service. Wait times for the one working elevator got as long as 20 minutes (it was a 32-floor hotel, so the stairs weren’t a good alternative).You’ll probably spend plenty of time at your hotel, between sleeping there, getting ready in the morning, and occasionally taking it easy for an afternoon. It’s nice to be comfortable while you’re there.You never know what you’re getting with an Airbnb. The platform is flooded with property owners who overpromise and underdeliver. Those pictures could be five years old, and a fully equipped kitchen could mean two plates and a broken spatula.

Make sure to read reviews, especially recent ones, before booking a hotel. If it works for your budget, a hotel from a premium or luxury brand can make for a much nicer trip. You don’t always need to pay in cash, either. Hotel credit cards are a great way to earn points you can redeem for free stays.

LEARN MORE: Best Hotel Credit Cards

3. Business-class seats on long flights

If you’re taking a two- or three-hour flight, having the best possible seat isn’t super important. But when you’re flying for four hours, five hours, or longer, that’s when traveling in business class is a game changer.

The biggest advantage is that you’ll have a much more comfortable seat. Many airlines offer lie-flat seats on long flights. If you want to check before you book a flight, you can enter the flight information on SeatGuru to see what type of seats will be available. In addition to a better seat, other perks of business-class airfare often include:

Better food and drink options, available free of chargePriority check-in and boardingPriority bag delivery of checked luggageAirport lounge access

Business class is normally one of the more expensive travel luxuries. But there are a few good ways to get it at a much lower price. One option is to book an economy ticket and see if the airline gives you the option to bid for an upgrade later. Or, you can pay in miles. You don’t need to travel all the time to earn miles — if you have an airline credit card, it’s much easier to earn them.

LEARN MORE: Best Airline Credit Cards

Most of us don’t have an unlimited travel budget. You need to pick and choose where you spend and where you save. That’s why it’s good to know which expenses are worth spending extra on so you can make the most of your vacations.

Remember that these extras don’t need to cost you thousands of dollars. There are often deals available on direct flights, quality hotels, and even business-class airfare, especially if you book early. Travel credit cards are also a good way to save, and they’re how I save thousands on my trips every year.

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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.Suzanne Frey, an executive at Alphabet, 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 Alphabet. The Motley Fool has a disclosure policy.

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Buying a house with a bad roof could cause problems with getting a mortgage or insurance. Read on to learn how it could make sense in some circumstances. 

So, you’ve found a house to buy and you love everything about it — but the roof is in poor shape. The roof might be leaking, or might just be really old.

If that’s the case, should you move forward with the home purchase? There are three things you’ll need to consider when making this important decision.

1. You could have a hard time getting a mortgage

There’s one really big issue you’re likely to encounter if you try to buy a house that has a bad roof: You are likely going to have a hard time getting a mortgage loan.

See, the home you buy is collateral for the loan. It guarantees it, because if you don’t pay, the lender can foreclose and sell the house to get the money you owe. But if a house has major health and safety issues — like a bad roof — then it’s bad collateral and lenders won’t want to provide a loan for it.

A mortgage lender doesn’t want to get stuck with a home that needs a new roof, and many lenders worry that a bad roof could be hiding major problems like mold caused by leaks — which could prompt homeowners to walk away once those issues are discovered.

As a result, if the roof has less than two years of useful life left on it, some lenders (especially those offering FHA loans) may require it be replaced prior to closing. If the sellers won’t do that, you may not be able to move forward with the home purchase.

2. You may not be able to insure the home

Many home insurers also will not provide coverage for a house that has a bad roof on it. That’s because it’s concerning to them that the house may be at risk of structural damage due to leaks. You may need to pay a lot more for a high-risk policy — at least until you’re able to get the roof replaced.

3. You could face expensive costs for a new roof

There’s another issue with buying a house that has a bad roof. You’re going to need to fix it once you’ve become the owner and moved in. After all, you don’t want to live in a home that leaks.

Fixing the roof could cost tens of thousands of dollars. It may be hard to come up with this money right after paying all the costs associated with buying the property in the first place.

So, does it ever make sense to buy a house if the roof is bad?

These three big downsides all need to be considered when you’re deciding if you should purchase a house with a roof that’s not in good condition. But that doesn’t mean you should never consider purchasing a property where there is a roofing issue.

In some cases, you may be able to negotiate with a seller to fix the roof before closing — especially if you’re willing to pay a higher final price for the property. Or it may be worth buying a home with a bad roof if you get a great price on it. If you could pay for the property and pay for the roof and get the house at a good price after covering both costs, it may be worth moving forward.

If you do decide to buy a house with a bad roof, you’ll need to either pay cash or look for a lender willing to work with you. Home rehabilitation loans for fixer uppers could be one option, or you could find a lender willing to allow a repair escrow. This would mean the money for the repairs is put into a special escrow account at closing and not released until the roof is fixed.

Before you pursue these approaches, though, be sure you know exactly how much the new roof will cost and make sure that moving forward makes financial sense. A roof replacement is a big undertaking, and this decision isn’t one to be taken lightly.

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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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It’s no secret that college is expensive. Take a look at how much college students should have put away to keep afloat. 

If the headline of this article caused you to laugh so hard that your coffee, Coke, or Boone’s Farm nearly sprayed your computer screen, congratulations. You’re officially a broke college student. Having been there myself, I was curious what the experts would have to say. Here, we offer some of their thoughts and some of our own.

Paycheck to paycheck

In an article about how much Americans have in their savings accounts, Time.com references the Paycheck-to-Paycheck Report, a collaboration between LendingClub and PYMNTS. That report showed that 60% of American adults live paycheck to paycheck. And of those getting by week to week, 40% are considered high-income earners.

If 60% of adults currently live paycheck to paycheck, it’s tough to imagine how a college student is supposed to have a plump savings or checking account. Unless a person is financially supported by family, worked throughout high school and saved darn near every dime, or enrolled in college after years spent in the workforce, building a fat bank account seems like a nearly impossible task.

Old data

Typically, one of the clearest pictures we have regarding how much the average person has in savings (by age) comes from the Federal Reserve’s Survey of Consumer Finances (SCF). However, since the Fed only conducts the survey every three years, the “latest” data we have is from 2019. Fortunately, its next survey is scheduled for release later this year.

In the meantime, we took a look at a survey commissioned by Neighbor.com and conducted by Pollfish in 2022. That survey found that U.S. college students and recent graduates of all ages are not swimming in the dough. A whopping 61% have less than $1,000, and the majority of those don’t have anything put away for a rainy day.

Why does it matter?

Here’s what we’re pretty sure of: When you’re working your backside off to get through classes and plan for your future, the amount of money in your pocket takes a backseat. But there are three reasons why how much you have saved matters.

1. You have expenses

Unless you’re sitting in your room doing homework 24 hours a day, chances are you run into small expenses. According to First National Bank and Trust, college students spend, on average, $2,000 on extras each year. While that expense varies by student, it’s a nice round number. If you don’t have the money tucked away somewhere, you may find yourself doing without or borrowing more than you want to.

2. Emergencies happen

You never know when something will go wrong. Your heat could go out in your dorm or rental housing for days, forcing you to pay for a hotel room until the lights are back on. Your car could have mechanical problems, or your bike could need a new tire. Small or large, emergencies are stressful when there’s no money in an emergency savings account to cover them.

3. You may face an uncertain job market

Ask anyone who graduated from college around 2008 about how tough the job market was. For a more recent take on the subject, ask anyone who graduated smack dab in the middle of the pandemic. While we hope you have dozens of job offers — each better than the last — following graduation, you may need a little money to carry you over until the market improves.

How much you should aim for

If your savings are currently a bit anemic, aim for enough money to cover three to six months of expenses. To put a number to that goal, add up all your regular expenses and multiply the total by at least three. Hopefully, you’ll never need to dip into those funds, but if you do, they’ll be waiting for you.

Money-making ideas

If you find yourself without savings, the first thing to do is remind yourself that most of us have been where you are today. We survived, and so will you. However, if you’re in the mood for actionable advice, here are some practical ways to improve your situation.

Get a part-time job: We understand that, like money, your time must be budgeted. After all, you only have so many hours in a day. Take a hard look at your schedule and figure out where you might be able to carve out time. First, look for on-campus work. You may be able to land a job in the dining hall or university offices. Your school may be looking for people to work in IT, transportation, or even as a resident advisor for the next term. If you can’t find an on-campus job, look for an off-campus position.Create a part-time job: Freelance opportunities are limited only by imagination. Advertise your services as a babysitter to families living in the area. If you’re a strong writer, start a business as an editor or proofreader. Tutor students in a subject you’re particularly strong in. Walk dogs, house sit, do yard work, or drive for a delivery service. Pursue any side hustle you think you would enjoy (as long as it’s legal).Open your own shop. Sell anything you don’t need, like gently used clothes and textbooks. Better yet, start a business selling other people’s stuff. Let other students know that you’re in the business of selling used items, and once someone has trusted you with their belongings, take photos, advertise, and keep a portion of the proceeds.Never stop looking for scholarships: Even if you only “sort of” qualify, apply.

Finally, remember that you’re working toward something. You may not have much money in the bank today, but that won’t always be the case.

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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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Home insurance will pay for a new roof when the old one is damaged by a covered loss, such as a sudden accidental event. Find out more here. 

Any property owner knows that a roof provides vital protection for a home. The roof keeps the house safe from the elements, preventing leaks that can damage the home’s interior and cause mold growth.

Roofs are also expensive. According to This Old House, typical costs for a roof range from $8,500 to $14,300, with some roofs costing much more. Homeowners faced with these high bills may be wondering whether homeowners insurance covers the cost of a new roof.

Unfortunately, the answer is more complicated than it seems because home insurance might pay but won’t in all circumstances. Here’s what homeowners need to know about whether their insurer will pay for a roof or whether the money will need to come out of their bank accounts.

Here’s when home insurance will cover a roof

Homeowners insurance will cover the cost of a roof replacement or roof repairs only if the repairs or replacements are made necessary due to a covered cause. For example, a policy would typically pay for a new roof if it was necessary as a result of:

FireWind damageHail

Homeowners should check their policy to find out if their policy is an open peril or a named peril policy. If it is an open peril policy, it would cover roof replacement if a new roof was needed due to any unexpected disaster or event that was not specifically excluded. If it is a named peril policy, the insurer would pay for a new roof only if it happened due to one of the listed disasters in the policy contract.

Those who don’t want to spend a lot of time reading the fine print of an insurance policy can also call their insurance agent or homeowners insurance company to find out when and if a new roof might be covered under specific circumstances.

Insurance will never cover a roof that simply gets old and wears out, though, nor will an insurer cover issues with a roof that happen because of neglect. If a roof is 30 years old and simply develops a leak, that’s not something an insurer would cover — it’s something the homeowner would need to pay for out of their repair funds.

Here’s what to do if your insurance doesn’t cover you

It can be a financial burden to pay for a roof when insurance doesn’t cover it. But homeowners can and should plan for this, because pretty much all roofs need to be replaced eventually. Most last at least 15 years, although it can depend on the roofing material.

It’s a good idea to save about 1% of the value of the home in a dedicated account each year for repairs. While this money won’t be needed every year, when a big-ticket item like a roof needs to be replaced, the regular savings you’ve amassed over time should help ensure there’s money available.

For homeowners who don’t have money in a savings account but who need a new roof quickly, the new roof may need to be financed. This can be done in a few ways. Specifically, a personal loan or a home equity loan or line of credit (HELOC) are both options for paying for a new roof.

Personal loans tend to be faster and easier to get and don’t require as much paperwork, but the interest isn’t tax deductible and the rate may be higher. Home equity loans or lines of credit require you to have equity and likely jump through hoops such as getting an appraisal and paying closing costs — but interest might be deductible and the rate may be lower.

You don’t want to wait to repair or replace a roof, so start looking into insurance coverage or other alternatives as soon as you begin to notice problems with the roof.

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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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If you haven’t started saving for the holidays yet, now is the time so you don’t end up in debt to buy gifts and entertain. Here are the steps you need to take. 

The holiday season is approaching faster than you might think. And that means that we are coming upon one of the most expensive times of the year.

If you haven’t yet begun preparing for how you’re going to cover costs this festive season, there’s one thing you should do today so you can make sure you are ready when the holidays hit your household.

Automate contributions to your holiday savings account today

According to a recent study from PwC, consumers are planning to spend more money on holiday expenses this year than last year. Specifically, spending is expected to be around 7% higher, with consumers intending to spend an average of $1,530 for gifts, entertainment, and travel-related expenses.

That’s a lot of money, and it can be impossible to come up with all of that cash at one time. Sadly, this means many people will find themselves reaching for their credit cards and running up a balance they cannot afford to pay back.

That’s a big problem. If you charge $1,530 on your credit cards and don’t have the money in your checking account to pay it off when the statement comes, you’re going to get stuck with interest charges. And interest can really add up.

If you charge $1,530 on a credit card at 18% interest and make minimum payments equal to interest plus 1% of your balance, you could end up not being free of your holiday debt for a total of 155 months and would pay $1,718.16 in interest.

You don’t want to do that. So, to avoid it, you need to get started today in making sure you have enough money for when the holidays arrive. You can do that by opening a high-yield savings account, deciding how much to contribute to have your desired amount by the holidays, and automating your contributions. That means having the funds come directly out of your account on payday and go into savings.

Will you be ready for the holiday season?

The arrival of the holiday season shouldn’t come as a surprise. You know when the festive events begin. So you have the opportunity to make sure you are ready for it by getting started now. Here’s what you should do:

Calculate how much you plan to spend. You don’t have to shell out the $1,530 the average American will. You can look at the cost of airline tickets to travel home, make a list of people you’re buying for and your budget for each, and check your credit card statements from last year to estimate other expenses. Add up the amount you think you’ll need for the entire holiday season to get an idea of what you need to save.Divide that amount by the time left. If you’ve decided you want to save $1,000 by December and you’re getting started in October, you have two months to save your $1,000 so you’d need to contribute $500 a month to your savings account. Work your budget to figure out where the funds will come from. Can you make big spending cuts in some areas? Remember, it’s temporary, you won’t have to sacrifice forever. Or perhaps you can take some extra overtime or jump into a side hustle for the next two months to save enough. Automate your contributions. Once you know where the money is coming from and how much you need, set up automatic contributions of your desired amount into a high-yield savings account earmarked for the holidays.

If you take these steps today, you may be able to put aside all the money you’ll need to enjoy this upcoming holiday season.

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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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