Money Management

Will October be kinder to home buyers than previous months? What about sellers? Read on to find out. 

A lot of people have been struggling to buy a home in today’s market. And it’s easy to see why.

For one thing, mortgage lenders haven’t budged on the elevated borrowing rates they started to impose in 2022. Combine that with expensive home prices and limited inventory, and it’s hard not to get discouraged as a buyer.

But will October be any different? Unfortunately, probably not. Here are a few things you can expect from the housing market in October.

1. Mortgage rates will likely remain elevated

As of late September, the average 30-year mortgage rate was 7.19%, according to Freddie Mac. That isn’t likely to budge very much in October.

Sure, we could see the 30-year loan drop closer to 7%, or even fall into the upper 6% range. But buyers should not anticipate a notable drop in mortgage rates. To put it another way, if you can’t afford to sign a mortgage at today’s rates, then you probably can’t afford to sign one in October, unfortunately.

2. Home prices could rise even more

Over the past three months, home prices have risen on an annual basis, according to the National Association of Realtors (NAR). So there’s a good chance home prices will climb once again in October.

That’s a good thing for sellers. But for buyers, it’s pretty darn terrible considering how expensive homes are already.

In August, the median existing home sale price was $407,100. Even if that number rises only slightly in October, it might still price a lot of buyers out of the market.

3. Housing inventory probably won’t pick up

As of late August, there was only a 3.3-month supply of available homes, reports the NAR. That’s well below the 4- to 6-month supply that’s generally needed to fully meet buyer demand.

Unfortunately, housing inventory is stuck in a bit of a holding pattern due to where mortgage rates are sitting today. Homeowners don’t want to sell their properties because doing so will often mean having to sign a new mortgage at a much higher cost. And if homeowners aren’t motivated to sell, inventory can’t pick up.

Should you bother trying to buy a home in October?

There’s no other way to say it — October will not be an easy time to buy a home. But that doesn’t mean that it can’t be done.

Yes, inventory is limited. But chances are, you’re only looking to buy one home. If you find it, you’re set. So keep doing what you’ve been doing — continue to keep an eye on listings and get ready to pounce when your real estate agent tells you about a home that’s hit the market.

At the same time, keep crunching the numbers to make sure you don’t end up with a home you can’t comfortably afford. As a general rule, it’s best to keep your predictable monthly housing expenses to 30% of your take-home pay or less. And that’s not just your mortgage payment — it should include property taxes and homeowners insurance as well.

If home prices keep rising and mortgage rates follow suit, you may have to adjust your price range to make sure you’re not going overboard. It’s better to do that at the start of the month, before you spend time looking at homes that may be out of reach.

Meanwhile, if you’re interested in selling your home, you’re in a good spot if you’re planning to downsize and use the proceeds of your sale to purchase a new home outright. But if you’ll need another mortgage, it’ll mean paying up due to where borrowing rates are at. That’s something you may not want to do. So unless you’re desperate to sell for a specific reason, like relocating for a job, you may want to hold off.

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The PrizePool Savings App lets you win prizes on your savings. Learn how you can win $1 million in this savings account. 

These days, it’s not hard to find a savings account paying an annual percent yield (APY) above 4.5%. In fact, with the federal funds rate sitting between 5.25% and 5.50%, many banks are offering rates above 5%, while some credit unions have done the unthinkable and are paying interest between 6% and 7%.

So when you hear about a relatively new banking app that pays 4.5% on your savings, you may think it’s no big cheese. But toss in the chance to win $1 million — plus other money prizes valued at $10,000 per week — and you might stop and ask what witchery this is. Well, the Prizepool Savings App is no witchcraft, just a digital bank account with some unusual features. If you’d like to earn a little extra on your cash, let’s take a look at how this prize-linked savings account works.

PrizePool — the app that rewards you for saving money

PrizePool is a digital bank account that you access through the PrizePool app. Each account is backed by Evolve Bank & Trust, which is the partner bank of numerous fintech companies, like Dave and Affirm. All deposits in PrizePool are FDIC insured up to $500,000 — double the usual limits at most banks.

Its headliner perk is its weekly drawing, which puts you in the running for cash prizes, including those valued at $1, $2, $10, $20, $100, and $500 (it used to give out $10,000 but has since distributed smaller prizes instead). Every $1 you save earns you one ticket daily. For instance, if you leave $20,000 in your savings account for one week, you would earn 140,000 tickets total. At the end of each week, PrizePool takes tickets from all accounts and mixes them together, drawing one at random for each prize.

Better yet, if you use the PrizePool debit card, you can earn 100 tickets per $1 spent, plus enter for a chance to get 5% or 100% of the purchase price in cash back.

I’ve been a regular PrizePool depositor for a long time, and I must say — It’s really fun. Every Friday at 12 p.m. PT, PrizePool notifies me that the drawings are in. You have to shake the app to see results — which adds some suspense — and I always get at least $1. The most I’ve won is $20, but the frequency with which I’ve won has helped me earn more than $500 in prize winnings.

But wait — you said I could win $1 million?

PrizePool has two accounts: a regular savings account, which has no monthly account fee and earns a standard 0.30% APY, and a high-yield savings account (called “Stacked”), which has a 4.50% APY and costs $10 monthly.

The Stacked account earns two tickets per $1 saved and 200 tickets per dollar spent on the PrizePool debit card. The weekly prizes are the same for Stacked members as for regular accounts ($1, $2, $10, $20, $100, and $500), but here’s the real payoff: Every day, you get a chance to win $1 million by spinning the PrizeWheel, a kind of digital “Wheel of Fortune,” which dishes out prizes and tickets alike. Every spin requires 1,500 tickets but because each spin is a winner, it’s well worth it for high account balances.

Is PrizePool worth your savings?

PrizePool can be a fun way to save money. But I wouldn’t recommend it to everyone. I’d say, if you want a stable APY — with an interest rate that’s predictable for the near term — I would look at top-paying CDs or high-yield savings accounts. The problem with PrizePool is that it requires you to pay $10 monthly for its highest 4.5% APY, which is a decent interest rate but not as high as no-fee savings accounts at other banks.

However, if you like a little risk, PrizePool does give you a chance to earn an APY that’s unthinkable at most banks. Imagine, for instance, that you win $100 on a $1,000 deposit in a regular account. Even if you earned nothing for the next 12 months, your return on investment (ROI) for that period would be something like 10%. The odds of you winning $100 on a $1,000 deposit are slim — PrizePool only gives out 10 $100 prizes per week — but if that’s the risk you’re willing to take, you could land a good APY.

As far as the Stacked membership goes, it might be worth it if you have a large amount of savings, like $32,000, which would earn your $120 annual membership in one month. But I would compare it with other high-yield savings accounts first to see if it’s the best value for your money.

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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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Delegate savings and making payments to bots. It takes minutes to set up. Read on for how doing so reduces stress. 

Stress is terrible for my wallet. All the money-management tips and tricks in the world don’t help me when I’m tired, anxious, and unable (or unwilling) to put them into practice. Spare me the effort. I’m a regular guy with a job and a busy schedule, not a full-time money manager.

RELATED: Personal Finance Guides & Advice

So how does the average person make money with low effort? To reduce my considerable stress, I’ve gone through a few strategies recommended by financial gurus like Ramit Sethi.

Here are two wealth-building strategies I’ve tried, how successful they were, and reasons they may (or may not) save you time, energy, and money — all at the same time.

Automate savings

Saving money is hard. Every time you manually wire money from a checking to a savings account, you face the major temptation to buy stuff. After failing to save for years — despite promising myself otherwise — I figured something had to change.

Ramit Sethi suggests the “set it and forget it” method to save money. You set up your direct deposits or checking accounts to automatically send 10% of your income to a savings account. But does it actually save you money?

My Chime Checking and Savings Account account lets me turn on “automatic savings,” which sends 10% of every paycheck to my savings account. Since enabling it, I’ve saved thousands of dollars with zero effort. I’ll be using those savings to pay taxes. It’s a big stress reducer.

Click here to open a Chime Checking and Savings account.

I’d like to open a high-yield savings account to earn more interest on deposits. Right now, I’m not making much money on my savings. I’ll automate deposits into that one, too.

Automate credit card payments

The more credit cards you have, the harder it is to keep track of payments. I have four. But even when I had only one, I forgot to make timely payments at least twice.

You can set up your credit card account to automatically withdraw money from your checking account to pay the bills. It makes paying credit card bills easier. But automating cards can disconnect you from big expenses, so it may be safer to only automate minimum payments.

I have the memory of a goldfish. To compensate, I’ve automated all my credit card minimum payments, and it’s saved me at least twice from making late payments. Just be sure to have a cash cushion in your bank account; otherwise, you could be charged overdraft fees.

How to set up automatic payments: Most banks let you set this feature up from your computer or the banking app on your smartphone. For example, to set up automatic credit card payments from the Chase app, log into your account, click a credit card, and navigate to “automatic payments.”

I’m less stressed

Automation reduced my stress. I no longer worry about saving money for taxes or paying my credit card bills on time. I’ve gone from checking my account balances daily to monthly. I spend less time managing money, and I’m more consistent at it than ever.

But I still manage money; it’s just simpler now. Instead of handling money transfers manually, I delegate what I can to bots. I spend most of my effort keeping a cash cushion in my checking account to cover automated expenses. Here’s what I still do manually:

Check account balances monthlyPay credit card bills in full

I try to pay off credit card balances 100% to avoid interest fees. Automating minimum payments just covers me in case I forget to do so. That would be bad — it could tank my credit score.

Tip: Keep a cash cushion in your linked checking accounts. That way, you aren’t charged overdraft fees. The best checking accounts charge zero overdraft fees, so you stress less.

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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. Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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The number of crypto billionaires has fallen swiftly with the decline in prices and collapse of crypto platforms. Find out whether investors need to be worried. 

A recent report from Henley Global into crypto wealth showed that there are only six Bitcoin (BTC) billionaires in the world. That’s just six people who hold over a billion dollars worth of Bitcoin on the entire planet. When you think about the amount of hype around crypto, six Bitcoin billionaires really isn’t a lot.

The report also says that the total value of the cryptocurrency market is $1.2 trillion. That’s a drop in the ocean when you compare it with other assets. For example, the World Gold Council puts the market cap of the gold market at around $12 trillion. Last year, State Street Global Advisors said the total value of all investable assets was a whopping $179.0 trillion.

Some might argue those figures show the huge potential of crypto — right now, it accounts for less than 1% of the total investable assets. Just imagine what might happen if it could take even a slightly bigger chunk of that pie. But the opposite could also be true. Perhaps crypto just isn’t that big of a deal in the grand scheme of things.

What is a Bitcoin billionaire?

There are different ways you can define a Bitcoin billionaire. The report looks at people who own a billion dollars’ worth of Bitcoin. But at one point in 2021, the same label was used for people who made their billions in crypto. The study, which also counts a total of 22 crypto billionaires globally, doesn’t say how any of them came by their wealth.

It’s certainly true that the net worth of several of the high profile crypto billionaires has significantly diminished since the crypto frenzy we saw a few years ago. In 2022, Forbes said there were 19 billionaires who’d made their money through crypto. That included Sam Bankman-Fried, who has since fallen from both rich lists and popular favor faster than an ice cream melts on a sunny day.

Indeed, according to Forbes, this year, 10 of the 19 are no longer billionaires. And their collective wealth has fallen from $140 billion to $30 billion. That $110 billion drop is partly a reflection of the drop in crypto’s value. It’s also due to the collapse of several crypto platforms, including Bankman-Fried’s empire. Bitcoin has mostly hovered between around $20,000 and $30,000 this year — significantly down on its high of around $67,000 in November 2021.

Is crypto becoming irrelevant?

It is interesting to look at crypto billionaires. But, for the most part, they can handle losing money on a risky asset like cryptocurrency. It’s the ordinary investors like you and me who may not be able to stomach the losses. Given that Henley & Partners report puts the number of crypto users at 425 million, that’s a lot of people who could take a significant financial hit if crypto collapses.

The dramatic drop in crypto prices and collapse of several crypto platforms has been accompanied by a significant decline in both consumer interest and confidence. Many investors who had money on now-defunct platforms now await the outcome of what could be lengthy bankruptcy proceedings to see if they will get their money back.

As an investor, the current crisis of confidence is one thing. The bigger question is whether Bitcoin and other cryptocurrencies could perform well in the long term. And, given that cryptocurrencies are extremely risky, the related question is whether there are other, safer, assets that could perform as well or better over time.

For cryptocurrency to stay relevant and reach its potential, it needs to overcome a number of challenges. Putting aside the regulatory and confidence issues, there’s still a long way to go with the actual nuts and bolts of crypto. For example, if it’s to become more widely adopted, crypto needs to be as easy to use as email or online banking. It needs to become more widely accepted as a payment method. There are also issues of scalability, congestion, and network fees to address.

There are many different investment opportunities

I hold Bitcoin and other cryptocurrencies, and I plan to hold them for the long term. Bitcoin could have significant potential as a digital currency, particularly when it comes to global settlements. I also think smart contract cryptocurrencies could be transformative in a number of ways. However, there are no guarantees and it is still early days. Even if the cryptocurrency industry as a whole succeeds, the coins and tokens that are popular right now may not.

Unless you’re a billionaire with money to burn, the biggest takeaway is this: Don’t count on crypto to make you wealthy. It can play a part in a wider portfolio, but only a small part. If you want to build up a nest egg for your old age, consider opening a brokerage account. Making consistent investments over time into a balanced portfolio that contains a mix of assets is a proven way to build wealth. If you’re not sure where to start, check out The Motley Fool’s guide on how to invest in stocks.

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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.Emma Newbery has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

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