Money Management

Having trouble paying for your home? Read on to see why losing it isn’t a foregone conclusion. 

If you’re a homeowner who’s struggling to pay your mortgage, you’re not alone. Data firm Black Knight reports that U.S. housing affordability is now at its worst level since 1984. And in July, the monthly payment on a typical home took up 38% of a median household’s income.

That’s problematic, because home buyers are generally advised to keep their predictable housing costs to 30% of their income or less. And that 30% threshold is supposed to account for property taxes and homeowners insurance as well — not just a mortgage payment.

If you’re having trouble affording your mortgage, you might assume that you’re doomed to lose your home to foreclosure. But there’s another option worth pursuing before you give up on being able to stay in your home.

Look into mortgage modification

Refinancing a mortgage is a good way to make your monthly payments more affordable — that is, when mortgage rates aren’t through the roof. Right now, mortgage rates are sky high. So unless you happened to get stuck with an extraordinarily high interest rate when you signed your home loan, refinancing at current rates probably won’t help you. What may help you, however, is reaching out to your mortgage lender and talking through your options for loan modification.

Unlike refinancing, where you swap an existing mortgage for a brand-new one, with mortgage modification, you’re simply changing the terms of an existing home loan. It may be that under your current mortgage, you have 20 more years of payments, resulting in individual payments of $1,200.

If you can’t afford $1,200 a month at this point, you might be able to change the terms of your mortgage so that you’re paying it off over a longer time frame. That might result in monthly payments of, say, $800, which may fall within your budget.

And if you’re wondering why your lender would agree to mortgage modification, it’s simple. Lenders want to get repaid on the loans they write. They don’t want to deal with the foreclosure process because it can be costly and time-consuming for them. So if modifying your mortgage allows you to keep making payments on it, that’s a solution that might work out well for your lender — and for you.

Forbearance might work for a temporary hardship

If you’re having trouble affording your mortgage, another solution might be to ask to put your loan into forbearance. During forbearance, you can pause your mortgage payments without being flagged as delinquent, thereby eliminating the risk of foreclosure (at least during your forbearance period).

But forbearance is generally a good solution when you’re experiencing a temporary hardship that makes your mortgage hard to keep up with for a limited period. If, say, you’ve lost your job, then forbearance could make sense.

But if you generally just can’t afford your mortgage anymore, then you’re probably better off modifying your mortgage instead of pausing payments on it. Forbearance might create a scenario where you don’t have to worry about losing your home for six months, but from there, the risk of foreclosure becomes real again. Lowering your payments could make it possible for you to stay in your home in the long run, rather than just kicking the problem further down the road.

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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.
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Sam’s Club isn’t just a place to buy discounted groceries and household items. Here are six surprising perks of a Sam’s Club membership. 

You probably think of Sam’s Club as a place to buy groceries in bulk. But you can score a lot of surprising savings on everything from vacations and Broadway tickets to prescriptions and home improvement.

A basic Sam’s Club membership costs $50 a year, while a Plus membership will set you back $110. If you’re on the fence about whether joining Sam’s Club is worth it, consider these perks that could save you thousands.

1. Travel deals

If you’re planning a vacation, checking out the Sam’s Club Travel & Entertainment deals is a must. You’ll find discounts on hotels, rental cars, theme parks, and other attractions, like museums and zoos.

Sam’s Club has some especially sweet deals on vacation packages. For example, as of this writing, you could score a 30% discount on a five-day, five-night hotel and theme park package at Universal Orlando for a family of four.

2. Cheap movie tickets

Sam’s Club offers discounts of up to 40% for tickets to major movie theater chains, including AMC Theatres, Regal Cinemas, Showcase Cinemas, and Cinemark Theatres. You can even buy vouchers for discounted movie theater popcorn and beverages with your Sam’s Club membership.

3. Savings on Broadway tickets and shows

If you love live theater, be sure to check out the discounts of up to 50% available to Sam’s Club members for Broadway and Off-Broadway shows. As of September 2023, members could score discounted tickets for hits like “Hamilton,” “Wicked,” and “The Book of Mormon.”

4. Home improvement savings

Home improvement projects can take a big bite out of your budget, but Sam’s Club members have several options for savings. You can find discounts on home warranty plans, pest control, home security services, and more.

5. Affordable prescriptions and medical care

Your Sam’s Club membership can even help you stay healthy. If you’re a regular member, you can get prescriptions filled for as little as $4, while Plus members get 10 select generic medications for free. Members also have access to free hearing tests, low-cost prescription eyeglasses, and members-only pricing on 24/7 telehealth services.

Note that you don’t need to be a Sam’s Club member to use the pharmacy. As long as you have a prescription, you can get it filled at Sam’s Club pharmacies.

6. Discounted dental care

Members have access to a Humana Dental Savings Plan that can save you 20% to 40% nationwide. It isn’t dental insurance, but rather, a plan that offers discounted dental care. Annual costs start at $49.92 for a single membership or $69.96 for a family membership.

You’ll pay out of pocket for care, but you’ll receive a reduced rate at the 105,000 dentists in the HumanaDental preferred provider organization (PPO) network nationwide. There’s no limit on the amount of dental services you can receive in a year. If you need extensive dental work that exceeds the limits of your dental insurance, purchasing a discounted dental plan can be a good option.

Is a Sam’s Club membership worth it?

A Sam’s Club membership can be worth the cost even if you don’t buy groceries in bulk, because of these lesser-known discounts and more. That said, joining multiple warehouse clubs probably isn’t worthwhile, as many offer similar perks, like vacation packages and discounted prescription medications. So if you’re weighing the choice between Costco vs. Sam’s Club, you’ll probably want to choose whichever one is more convenient for you — but not both.

If you want to maximize your Sam’s Club perks, consider applying for a Sam’s Club credit card. There are two options: the Sam’s Club Credit Card, a store credit card that you can only use at Sam’s Club and Walmart, or the Sam’s Club Mastercard, which you can use anywhere that accepts Mastercard.

Before you sign up for Sam’s Club or any other warehouse club, also think about whether you’re prone to overspending. If you’re likely to buy gobs of things you don’t need and run up a big credit card tab, you’re better off skipping warehouse club memberships altogether.

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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, Mastercard, and Walmart. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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Saving money isn’t easy. But read on for a trick that could make the process more seamless for you. 

Financial advisor Suze Orman is worried about Americans’ finances. A recent SecureSave survey found that 63% of workers today don’t have enough money to cover an unplanned $500 bill. That means most workers are at risk of landing in credit card debt the next time an emergency expense arises.

That’s why Orman co-founded SecureSave, a company that partners with employers to help workers set up emergency savings accounts. She feels that it’s so important for people to have personal savings to fall back on.

But let’s face it — saving money is hard. Many of us have a lot of unavoidable expenses to deal with. And while it can be argued that higher earners should have an easier time saving, the aforementioned survey found that 35% of workers who earn over $100,000 a year are living paycheck to paycheck.

If you’ve struggled to save money, you’re certainly not alone. But without an emergency fund, you’re putting yourself at risk of wrecking your finances the next time an unplanned expense strikes. So if you’re eager to avoid that scenario, you may want to take this helpful advice from Orman.

Put the savings process on autopilot

Orman may be wealthy today, but that wasn’t always the case. There was a point in her life when she was cash-strapped and couldn’t even afford rent.

As such, Orman recognizes that building savings can be very difficult. And so her advice is meant to simplify the process as much as possible.

In a nutshell, Orman thinks the best way to save money is to put the process on autopilot. If you arrange for a portion of each paycheck to land in your savings account, you won’t have to think about saving money. And you’ll also be less likely to reach the end of the month without any money to spare.

Of course, the amount of money you’re able to move to your savings automatically on a monthly basis might start off small. And Orman says that’s okay.

“You have to start somewhere,” she explains. If, for you, that means setting up an automatic transfer of $25 a month, so be it. After a year, if all goes well, you’ll have $300. That’s far better than having $0, Orman insists.

Make your own life easier

Every dollar you spend on expenses is a dollar you won’t be saving. But you really don’t need the stress of having to nit-pick every single purchase you make for fear that it will impede your savings goals.

Let’s say you’re hoping to save $100 a month. You may be tempted to order takeout one night. But wait — will that $25 order keep you from meeting your goal? It’s hard to know. But you also don’t need that constant stress.

If you automate your savings, that $100 will leave your checking account before you get a chance to spend it. And from there, you won’t have to worry about how you’re spending your remaining funds because your savings goal has already been met.

Orman is a hard-working person who has never taken the easy way out. But in the context of savings, she’s a huge proponent of making things as easy as possible.

“The best way to save is to automate it,” she says. And once you get used to having that money land in your savings account, chances are, you won’t even miss it.

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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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Financial planners can’t invest money without your consent. Read on to find out what steps you can take when they do. 

Hiring a financial planner is an important decision for building your financial future. It can be disconcerting if you find out that someone you’ve given access to your money to has made investments without your approval.

If that happens, there are a few important steps you can take to report what happened. Here’s who you should contact if your financial planner makes trades without your approval, and what types of accounts may allow an advisor to invest without needing your authorization for each trade.

Discretionary vs. non-discretionary investment accounts

It’s important to understand that there is an investment account where your financial advisor can invest without you having to approve a specific purchase or sale. These accounts are called discretionary accounts, meaning a financial advisor can make investment decisions in your brokerage account at their discretion.

According to the Financial Industry Regulation Authority (FINRA), the only time a broker is allowed to buy or sell stocks, bonds, or other securities without your permission is if you have given them written permission to do so through a discretionary account and the broker’s firm has approved it.

The regulation authority says on its website that “FINRA rules prohibit unauthorized discretionary trading, and doing so is a serious offense.”

In short, an advisor can make trades without your knowledge if you’ve given them express permission in writing and their firm has also approved the account. While available, these types of accounts aren’t common.

On the other hand, a non-discretionary account is when a financial planner needs authorization from you to make trades. These accounts are much more common than discretionary accounts and require the broker to get your permission before each transaction.

What to do if your financial planner invests without your approval

If your financial planner made investments without your authorization, the first thing FINRA recommends is to contact the financial institution your advisor works for. It’s a good idea to do this in writing so you have documentation of your complaint, especially if you’ve lost money.

If you’re not satisfied with the response you receive, it’s time to file a complaint. If your advisor is a broker-dealer — they buy and sell securities and other financial products — then a complaint should be sent to FINRA.

If your financial planner is an investment advisor, mutual fund company, or transfer agent, you should file a complaint with the Securities and Exchange Commission (SEC) or your state securities regulator.

Finally, it may also be a good idea to contact the professional organization your financial planner is a part of. This may involve filing a complaint with the Chartered Financial Analyst (CFA) Institute or contacting the Certified Financial Planner (CFP) Board.

There’s no guarantee you’ll get your money back

If you’ve lost money because a financial planner invested without your consent, there’s unfortunately no guarantee you’ll get that money back, even if you file a complaint with FINRA or another regulator.

Some people may choose to hire a lawyer in these situations. Some law firms have experience with FINRA violations and can help you pursue the best legal avenue for trying to get your money back.

While many financial planners are reputable, it’s always a good idea to do your research beforehand to find the best one. If you’re looking to switch financial planners or need some help picking the right one, here are a few tips on how to find the right financial advisor.

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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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