The median savings for Americans has decreased by over 70%. Check out the latest numbers and learn what you can do to boost your savings. 

Americans are under some serious financial stress. The median American’s savings account balance fell from $4,500 last year to just $1,200 in July of this year, according to savings research by The Motley Fool Ascent.

It’s normal to dip into your savings from time to time. But if you need to do that, it’s important to build your savings account back up as soon as possible. Otherwise, you may be unprepared when any big expenses or emergencies strike.

Advice on saving money often makes you feel like you need to be super strict and count every penny. That has never worked for me, so I’m not going to recommend it to you. Instead, here are the best ways I’ve found to save more, all of which I’ve used.

1. See if you can cut back on food, housing, or your car payment

One of the problems with the typical saving advice is that it focuses on getting rid of small expenses. Stop grabbing a latte on your way to work, don’t buy anymore avocado toast, and so on. Tips like these make life a lot less enjoyable, and they usually don’t even save you all that much money.

A much better method is to look at your biggest monthly costs and see where you can cut back. According to average American household spending data, the three largest expenses are:

HousingTransportationFood (at home and at restaurants)

Now, you’re probably not going to be able to cut back in every area, and that’s fine. Just spending less on one of these could easily save you $100 per month, $200, or more. Here are a few potential options to boost your bank accounts:

Don’t go out for food or drinks as much. You don’t need to stop entirely, but swap out one or two of these for a lower-cost activity.Go rate shopping for more affordable car insurance, or look for car insurance discounts.If you have a hefty car payment, consider selling your car and getting something cheaper.Move to a less expensive area or downsize to a smaller home.

2. Look for opportunities to increase your income

This certainly isn’t a savings hack, but the amount you earn determines how much you can save. The most effective way to save more, and improve your personal finances as a whole, is to increase your income. You’ll have more money to save, invest, and to enjoy your life.

Almost everyone would like to earn more money. How can you actually do it? That’s going to depend on your current employment situation and skillset, but here are some ways to make it happen:

If you have a full-time job, talk to your manager regularly about what kind of performance goals you need to reach to get a raise.Keep an eye out for advancement opportunities. Many companies have an internal job board with available positions.If you freelance or have control over your schedule, work an extra 30 minutes per day.Keep your resume updated and conduct job searches on a regular basis, even when you already have a job.

The key to earning more is being proactive. People who increase their income don’t wait around until someone decides to give them more money. They create those opportunities for themselves.

3. Move your money to a high-yield savings account

This is a simple way to boost your savings, but considering how few people do it, it could be considered a savings hack. Our savings research found that only 31% of Americans have a high-yield savings account (one with an interest rate of at least 4%).

That’s more costly than many realize. The average savings account interest rate is just 0.42%. Some high-yield accounts are offering more than 10 times the national average. On the median savings balance of $1,200, that’s the difference between $5.04 in interest per year and $50.40 or more. And the difference only gets bigger as you save more.

Check the current interest rate on your savings account. If it’s not at least 4%, look at the best high-yield savings accounts and pick one you like. Even if you don’t have a ton of money saved yet, you can start earning more interest right away.

Saving more money doesn’t need to involve pinching pennies. It’s better to focus on more impactful changes, including cutting back on major expenses, earning more, and maximizing interest.

These savings accounts are FDIC insured and could earn you 12x 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 12x 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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JPMorgan’s purchase means many homeowners are about to have a new lender. This is what they could be facing. 

When Silicon Valley Bank collapsed earlier this year, there was a lot of panic that more banks would follow. While there hasn’t been the mass implosion some may have feared, there has been a lot of motion in the banking industry.

For instance, as a part of the major merger between PacWest and Banc of California, JPMorgan is picking up nearly $2 billion in residential mortgage loans (and reports indicate the banking giant is getting them at a bargain). It’s unclear so far whether JPMorgan plans to keep the loans, or to turn around and sell them — potentially for a profit.

That $1.8 billion in loans represents a lot of homeowners. But it’s hard to say exactly what will change for them. Mortgages (and other debts) actually get bought and sold fairly often. Sometimes, the only indication that something has changed may be a letter in the mail. Other times, you may get a whole new servicer.

Mortgage owner vs. mortgage servicer

Your mortgage loan may be owned and serviced by the same bank. This isn’t always the case, however. It’s not unusual to have a mortgage loan that is serviced by one bank and owned by another.

Mortgage lender/owner: This is the financial institution that owns the debt associated with your mortgage. It could be your original lender, or it could be another lender that purchased the debt.

Mortgage servicer: This is the financial institution that services your loan. It does things like collect payments, manage your escrow account, and respond to customer service inquiries.

The servicing right may be sold with your loan — but it may not. In other words, your lender could change while your servicer stays the same. This would mean nothing much would change; you’d still pay and manage your loan the same way you did before the sale.

On the other hand, if the servicing rights are sold, how and where you make payments could change. Be sure to set up any necessary online accounts or finish other important preparations well before your next mortgage payment is due to ensure you don’t miss any payments. (You have a 60-day grace period if you send a payment to the older servicer by mistake.)

Your loan terms will not change

No matter how many times your mortgage is sold, your loan terms won’t change. Your monthly payment amount, interest rate, and other details will all stay the same.

Lenders must provide notice of sale

If your mortgage is sold, your lender is required to notify you by mail within 30 days of the date of transfer. The notice should include the name, address, and telephone number of the financial institution that purchased your loan, as well as who to contact about payments or concerns.

Although the banks have to notify you about the sale, that’s the extent of your involvement. You don’t have any control over the sale of your loan, be it the debt or the servicing rights — and there’s nothing you can do about it after the fact, either.

How to find your servicer or lender

If your loan was sold but you don’t have the notice, you can contact your servicer to find out who currently owns your loan. Folks who pay their mortgages online may be able to find the information through their online account (or mobile app), or by emailing their servicer. Otherwise, you may need to call.

The contact information for your servicer should be on its website. However, you can also find it on your monthly mortgage statement or coupon book.

When all else fails and you don’t know who is servicing your loan, you can try the MERS® Servicer Identification System. This is a third-party company that maintains mortgage information and your servicer may be listed in their system:

By phone (toll free): (888) 679-6377Online: MERS® Servicer ID

The only way to avoid having your mortgage sold is to choose a lender that doesn’t sell their loans in the first place. You can find out if the bank has a habit of selling loans by asking before you apply.

If your loan is sold, however, remember that it’s not the end of the world. Your terms won’t change. And, unless the servicing rights are sold, neither will how you make your payments. In either case, you’ll be notified by mail about any changes.

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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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Are you a Starbucks loyalist? Make sure you’re earning rewards. Here’s what you can do to earn double stars every time you pay for your Starbucks order. 

With more than 36,000 stores worldwide, it’s safe to say that Starbucks is a popular coffee spot for many. If Starbucks is your go-to coffee shop to visit for your morning cup of joe, make sure you join the Starbucks Rewards program. You can earn discounts and freebies on your favorite drinks and food items. Every discount or freebie can be a win for your personal finances.

Before checking out, you should also consider how you will pay for your Starbucks order because your choice could impact how many stars you earn. I’ll show you how to pay for your order to earn double stars every time you make a Starbucks run.

Get rewarded when you join the Starbucks Rewards program

Many restaurants, coffee shops, and cafes have free loyalty programs. These programs reward regulars who spend money. You can earn discounts or free products by using these programs. Through the Starbucks Rewards program, you can earn “stars” every time you make a purchase.

Once you’ve earned enough stars, you’ll have various redemption options to choose from. You can redeem your stars for items like an extra espresso shot, a free iced coffee, a free signature latte, a sandwich, or even a bag of your favorite coffee beans.

How you pay for your order matters: If you pay with cash, a debit card, or a credit card, you’ll earn 1 star for every $1 spent. But if you use a Starbucks gift card, you’ll earn 2 stars for every $1 spent. If you haven’t been using Starbucks gift cards, you’re missing out on the chance to earn double stars. You may want to change how you pay for your orders from now on.

Do this to earn double stars at Starbucks

The next time you go to order your favorite drink, consider paying with a Starbucks gift card. You can purchase gift cards through the app or reload existing gift cards in your account using a debit card, credit card, Apple Pay, or PayPal account. Paying with a Starbucks gift card is an easy way to maximize your rewards. Since you can use a credit card to reload your card, you can earn cash back rewards by reloading with one of the best cash back credit cards.

Starbucks also allows customers to enable auto-reload when their gift card balance reaches a specific limit. While this may be convenient, it’s likely best to skip this feature. You don’t want to forget that you enabled this feature only to see a sizable amount of money deducted from your checking account due to a recent gift card reload. You can reload your card whenever you want, giving you more control over your money.

Are restaurant rewards programs still valuable?

Many rewards programs offered by restaurants and fast food eateries have changed in recent years. You may have noticed that some of your favorite brands have made redemptions more costly through their rewards programs. When that happens, you must spend more money to earn enough rewards to earn your favorite freebies. Are these programs still valuable? Yes!

It’s still worth joining these programs, even if earning enough rewards to cash in on a redemption takes longer. Any discount or freebie can make a difference — if you’re already spending money regularly with a brand you love, you might as well get rewarded for doing so. If you’re not yet using programs like this, you may want to spend a few moments signing up for some, so you don’t miss out on free food and drinks.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Starbucks. The Motley Fool has a disclosure policy.

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Business class flights don’t have to be expensive. Discover how to travel in style on a business-class or first-class ticket without going broke. 

While traveling is an exciting adventure, getting to your destination isn’t always enjoyable or relaxing — especially if you’re in an economy-class seat on a long-haul flight. But the journey is more enjoyable for business and first-class flyers thanks to the extra comforts provided.

While you may assume that a business or first-class ticket is out of your price range, that’s not always true. You can get a significant discount on a premium-class ticket in certain situations. Here are a few ways to fly in style without draining your bank account balance.

1. Use points and miles to fly in a premium cabin

If you’re a frequent traveler, having a travel credit card in your wallet can be beneficial. With these rewards credit cards, you’ll earn rewards when you use your card to pay for travel expenses and other purchases, and you can redeem your points or miles for flights.

Award travel tickets aren’t entirely free — you’ll need to cover the taxes and fees. But you can use your credit card rewards to cover the flight cost, making your trip much more affordable. If you value extra comfort, you may want to use your points and miles to book a business-class or first-class flight. Review our list of the best travel rewards credit cards to learn more.

2. Bid for an upgrade

Believe it or not, you can bid for an upgrade after buying a coach ticket. Some airlines email bid offers to customers who purchase economy tickets. If given the opportunity, you can let the airline know how much you’d be willing to pay per ticket to upgrade your seat. If your bid is approved, you’ll be upgraded and the airline will charge your credit card before departure.

I’ve personally had upgrade bids accepted on three occasions. To give you an idea of what this might look like, I’ll share the ticket class, route, airline, and cost I paid for each upgrade below:

Business class from Seoul to Prague with Czech Airlines (12 hours): $325 per person Business class from Panama City to Lima with Copa Airlines (4 hours): $115 per person Business class from Seoul to Kuala Lumpur with Malaysia Airlines (6.5 hours): $90 per person

These upgrades were affordable, and they significantly improved my travel experience. There’s no guarantee your bid will be accepted, but it can be a win if it works out. Keep in mind that there may be a minimum bid amount required by the airline — so getting an upgrade for $50 is unlikely.

3. Pay with miles or cash for an upgrade

Many airlines offer upgrade opportunities after you purchase an economy ticket. There will be a set number of miles or cash that you can pay to upgrade your ticket to a better seat. Sometimes it can be a deal that is too good to pass up, but it’s not always a great use of miles or cash. Still, it’s worthwhile to check for opportunities like this.

I’m flying to Prague next month with Delta, and in the Delta mobile app, I see an upgrade opportunity for the New York City to Prague portion of my journey. I can pay $2,732.41 or 273,300 miles to upgrade to Delta One, Delta’s first-class international product. As you might imagine, that’s well out of my price range, so I will stick with flying coach this time.

4. Buy a first-class or business-class deal or error fare ticket

Another option is to take advantage of flight deals and error fares. Some airlines promote deals throughout the year, and you could get a better seat at a much lower price. Additionally, some airlines make mistakes and accidentally price their tickets lower than usual. Flyers can book these error fare deals to fly at a significant discount.

I recently purchased an error fare flight deal to London, and my business class ticket cost nearly 60% less than the usual ticket price. That’s a deal that I couldn’t pass up! Want to find the best airfare deals? Here are five flight deal services you can use to score cheap flights.

Don’t give up on your luxury travel dreams

Flying on a business-class or first-class ticket may feel like an experience you’ll never have, especially if you’re working hard to reach important personal finance goals. But it’s possible to fly in style at a fraction of the price if you take advantage of opportunities like the ones mentioned above. There are many ways to save money on travel expenses like airline tickets.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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A high-yield savings account is one of the best bank accounts out there right now. Keep reading to learn why you need one and how to pick the right one. 

What if I told you that there’s a certain type of bank account that’s often free to open, is easy to use, and can help you grow your savings and help you beat current inflation rates? Well, I’m not pulling your leg — such an account exists. A high-yield savings account comes with some pretty sweet perks. Let’s take a look at how high-yield savings accounts differ from standard-issue savings accounts and how you can choose one of your very own.

What does “high yield” mean, anyway?

You’re probably at least a little familiar with savings accounts. They are a safe place to keep the money you need for near-term expenses, like an upcoming vacation or a large purchase. They’re also a great place for your emergency fund. In exchange for keeping one funded, your bank will generally pay you a little interest on your money. One of the ways high-yield savings accounts differ from regular savings accounts is the much higher interest rates they pay — that “high yield” that’s right in the name.

Traditionally, APYs (annual percentage yields) on regular savings accounts have been quite low. For example, according to the FDIC, the average APY on a savings account as of July 2023 was just 0.42%. And this is an average, which means some accounts pay much more and some pay much less.

I actually have two savings accounts, one each at two different banks. My traditional savings account earns a paltry 0.01% APY — but my high-yield savings account earns 4.25%, or over 10 times that U.S. average. It’s been bumped up several times since I opened the account last spring. A higher federal funds rate is to thank for that, as the Federal Reserve attempts to tamp down inflation. Speaking of inflation, as of the last CPI report, it stood at 3.2% — which means my high-yield savings account is currently beating it.

Can you get one at just any bank?

Another way that high-yield savings accounts differ is the type of bank that most commonly offers them. You can get a regular savings account from just about any bank, from your neighborhood bank that has just one or two branches in your town, all the way up to mega-banks with branches all over the country.

But high-yield savings accounts are offered by online banks. This is actually why they can afford to pay such a generous APY on your money — since online banks don’t have physical branches to pay for and maintain, customers benefit from better returns.

Plus, online banks are less likely to charge fees for inactivity or having a low balance — I caught $50 worth of fees last year thanks to accidentally letting my regular savings account balance slip below the minimum required to avoid fees. So if you hate paying extra fees for the privilege of keeping your money in a bank account, look into online banks.

How do you choose the right high-yield savings account for you?

I’m hoping I’ve sold you on opening a high-yield savings account — I love mine and it’s made the process of saving money for my future goals and ongoing tax payments a lot easier. Consider these factors to choose the best high-yield savings account.

What’s the APY?

APYs are variable, so don’t assume that you’ll get to keep that high rate forever — especially if we start to see the Federal Reserve lower the federal funds rate. That said, if you’re opening the account now, there are some very attractive APYs of 4% or higher available. I receive my interest payment on my account on the same day every month and I even put it as a recurring event in my calendar app, because I’m that excited about it.

Will you be charged fees?

Bank fees stink, and I recommend you avoid them whenever possible. It’s important to remember that even an account without maintenance or minimum balance fees may still be subject to Regulation D, which limits you to six convenient withdrawals per month — you may be charged a fee for going over.

How easy is it to fund the account?

Since the best high-yield savings accounts come from online banks, you’ll want to make sure you can put money in the account without too much of a hassle. I can use a payments app to send money from my main checking account at a traditional bank to my high-yield savings, and this has been my go-to.

How about taking money out?

One potential pitfall of online banks is a lack of branches and a possible lack of convenient ATMs as a result. Check for a robust ATM network with locations near you. And unfortunately, many high-yield savings accounts don’t come with an ATM or debit card; I had to open a (free) linked checking account alongside mine to get one.

Is the bank covered by FDIC insurance?

Finally, you need to know if your money is safe. FDIC insurance covers savings accounts for up to $250,000 in case of bank failure. Make sure the bank you’re considering is covered by looking it up using the BankFind Suite tool.

High-yield savings accounts are great, and if you don’t already have one, see what’s out there and get in on the action!

These savings accounts are FDIC insured and could earn you 12x 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 12x 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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Buying your first home in Florida can be easier with state and federal programs. Check out the best home buyer programs Florida has to offer here. 

Buying your first home in Florida isn’t without its challenges, but whether you’re on the Gulf or the Atlantic (or somewhere in between), the Sunshine State of tropical flowers and picturesque beaches is well worth staking a claim of your own. The state has low property taxes, perfect weather, and only a slightly higher average home value ($390,000) than the national average ($348,000). If you’re a first-time home buyer in Florida, the state has a few programs to help afford your first mortgage. Let’s take a look at the top three.

1. Florida Assist

What is it? A second mortgage that provides up to $10,000 on conventional, FHA, VA, and USDA mortgages. The second mortgage has 0% interest, and you can pay it off when you sell the home or refinance.

How does it help? You can use the $10,000 to cover closing costs or to bolster your down payment.

Who’s it for? This program could give your savings the extra bump it needs to put you in a qualifying range, whether that means having more down payment or covering your closing costs with a 0% loan. The money must be repaid when you sell, refinance, or pay off your first mortgage, but the 0% interest rate means you won’t have to pay any more than what you borrow.

2. Florida Homeownership Loan Program (FL HLP)

What is it? A second mortgage that lends you up to $10,000 on a 15-year loan with a 3% interest rate.

How does it help? Much like the Florida Assist program, money from the FL HLP can give you more purchasing power and help you buy homes you wouldn’t have otherwise been able to afford. The downside is that you have to pay interest on the second mortgage, but a 3% rate is pretty competitive, especially in a high-rate environment like we’re in now.

Who’s it for? This is great for first-time home buyers who need an extra bump to buy a home and can afford the monthly payments that will arise out of this. Since this monthly payment could be included within your debt-to-income ratio, you’ll also need to consider it alongside other debts for mortgage qualification purposes.

3. Florida Hometown Heroes Housing Program

What is it? A second mortgage for eligible frontline community workers.

How does it help? This program gives eligible workers up to 5% of the first mortgage amount (maximum of $35,000) as a 30-year mortgage with a 0% interest rate. Additionally, workers will get lower interest rates on their mortgages (conventional, FHA, VA, or USDA) and reduced mortgage fees.

Who’s it for? To be eligible, you must be a frontline community worker, such as a law enforcement officer, firefighter, educator, childcare employee, healthcare professional, active military, or veteran. You also have to meet income limits based on your county.

Other ways to save on your first home

Admittedly, Florida’s first-time home buyer programs aren’t as generous as other states, like New York, which gives money in the form of grants with no strings attached or loans required. If you still need help buying your first home in Florida, check out federal first-time home buyer programs to see if you qualify for grants and down payment assistance. You might also want to look at low or no down payment mortgages — such as FHA, VA, and USDA — or consider buying a foreclosed home at a supreme discount through HUD.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

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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