Money Management

Uber is the largest ride-hailing platform in the U.S., but does it pay its drivers well? Learn how much you could make driving for Uber. 

If you’re looking for a lucrative side hustle, then you’ve probably thought about driving for Uber. As one of the main drivers behind the gig economy, Uber offers flexible work with decent pay and bonuses. But when compared to other side hustles, like delivering groceries through Instacart or driving for Lyft instead, is becoming an Uber driver really worth your time? Let’s break down what you can earn and see.

How much do Uber drivers make?

With tips and bonuses factored in, Uber drivers make about $21.14 an hour on average, according to GridWise. At $21.14 an hour, you would gross roughly $3,674 per month, if you drove 40 hours at that rate per week.

That said, how much you actually make will depend on where you live, when you drive, the ratio of drivers to passengers in your area, how many bonuses you get, and your tips. In fact, a more realistic wage range might be a low of $7.25 or a high of $38.85 (with an average of $19.36), based on 292 salaries reported to the job site Indeed.

As far as how Uber drivers make money, three factors determine your payouts:

Driving fare: This is how much Uber pays you to complete rides. Depending on where you live, this fare could be determined upfront based on market conditions or on a per-minute, per-mile basis.Tips: You get to keep 100% of the tips you make.Promotions: Every now and then, Uber will pay you extra to drive during surge hours (when demand for drivers is high), reward you for completing quests, or give you a boost for driving in certain promotional zones.

In addition to these, you might make extra money if your car is fully electric or if it’s eligible for UberXL or UberBlack.

Does Uber cover driving expenses?

Uber doesn’t pay for driving expenses, like gas or wear and tear to your car. That said, Uber does provide car insurance when you’re using the platform and your own insurance doesn’t apply. Here’s what the coverage limits are under Uber’s plan:

$50,000 in bodily injury per person$100,000 in bodily injury per accident$25,000 in property damage per accident

This 50/100/25 coverage meets the minimum for most states. But if you’re not comfortable driving with just the minimum, you might need to buy additional car insurance to meet your needs.

What extra perks does Uber offer?

Since Uber drivers are independent contractors, they don’t have access to standard employee benefits, like 401(k)s and health insurance.

That said, Uber takes care of its drivers in the form of other perks, like savings on gas and access to car maintenance discounts. Like other platforms, Uber has a tiered rewards system and doles out different perks based on your level. Here are just a few of the top perks you could get driving through Uber:

Uber doesn’t disclose how you can achieve Gold, Platinum, or Diamond, as each market will have different requirements. But in general, the more frequently you drive — and the more frequently during high-demand hours — the more likely you’ll advance up in tiers.

If you can achieve Diamond status, however, you can get more cash back on gas than even some of the best cash back credit cards. And the one-year membership to Costco ($60 value) is a unique perk unmatched by other ride-hailing and delivery platforms.

So, should you drive for Uber?

Driving for Uber certainly has its benefits. You can set your own schedule, drive as much as you want, and earn promotions and tips on top of normal driver fare. It can be a great way to earn some extra cash, especially if you’re trying to hit certain personal finance goals, like paying down debt or building an emergency fund.

Driving for long periods of time, however, might not be sustainable. The wear and tear on your car could lead to needing expensive repairs, which Uber isn’t going to cover, and you might work long weeks only to make below the median salary for U.S. workers ($69,717 in 2021, according to research by The Ascent). It could be suitable for part-time work, but if you’re looking for a career, your area will likely need high demand for Uber drivers for you to receive adequate pay.

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

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Two-thirds of Americans can’t cover an unexpected $400 expense. Read on to find out how to start growing your emergency fund and learn the perks of having one. 

More than a decade ago, I was looking to make a career change from the office jobs I had held for years to writing full time. I had spent years freelance writing as a side hustle but could never figure out a way to make the transition to doing it as my regular job.

After a year of applying to as many jobs as possible, I finally came across one that had the potential to give me steady writing work. Spoiler alert: I got the job, which is why you’re reading this article right now. The only problem was I needed to temporarily move to a more expensive city for several months of training.

That’s when I learned firsthand how powerful an emergency fund can be.

Funding my dream job with savings

My wife and I had a little money saved up at the time, but not a lot. When I got the news that I had been accepted to the program, I immediately began searching for apartments in Alexandria, Virginia — which is not exactly a cheap area of the country.

At the time, the apartments in the city were more than two times more expensive than the monthly mortgage payment for my home in South Carolina. I rented out my house for the few months we were gone, but it didn’t cover the entire mortgage payment. And with the added expense of a short-term lease in Alexandria, I had to tap into my savings account to pay for the expensive apartment.

Adding to the stress of the move was the fact that my wife and I had a young toddler to take care of, and my wife was pregnant with our second son. I remember questioning whether I was making the right decision, but one thing that helped ease my fears was that we had enough money saved up to cover rent for a few months.

I was getting paid for the training time, but the quick rise in cost of living meant that tapping into our savings was necessary. Without money in the savings account, I don’t know how we would have been able to say “yes” to the career change.

How to build up your emergency savings

There are many ways an emergency fund can benefit your personal finances, far beyond helping to fund a career change. Putting money aside for house or car repairs, medical emergencies, or a job loss are common uses for emergency savings.

Most experts recommend putting enough money aside to fund three to six months’ worth of your expenses. For example, if you spend $4,000 every month, an ideal amount to have saved up is $12,000 in your emergency savings.

But research from financial expert Suze Orman’s startup SecureSave found that two-thirds of Americans couldn’t cover an unexpected $400 expense. If you fall into this category, don’t worry about having months’ worth of expenses covered. Start by trying to reach that $400 goal first. Once you find a few ways to save that amount, then push your savings goal to $1,000.

To help achieve this, it may be a good idea to set up automatic deposits into your savings account. Automating parts of your personal finances is an easy way to make good financial habits a routine. You can always start out with a small amount to save each money — even $20 will help — and then increase the amount later.

If you’re having trouble finding an extra $20 per month to add to your savings, consider downloading a budgeting app to track your spending. You may be able to find a few expenses to cut out that you previously may have overlooked.

If you’re starting with nothing in your savings, don’t be discouraged. Any amount, no matter how small, that you can set aside on a regular basis will come in handy when an unexpected expense pops up. And by automating your savings, you can quickly start building your emergency fund without having to think about 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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The average price of a new electric vehicle has dropped 20% over the past year. Find out why prices may come down even further. 

Over the past few years, car prices have soared amid rising inflation and supply chain shortages. But at least one vehicle category is beginning to see prices come down. The latest research from Kelley Blue Book shows that new electric vehicle prices are down 20% from last year. Plus, data from iSeeCars says used EV prices have tumbled nearly 30%.

That’s brought the average price of a used EV to just under $41,000 and the average cost of a new EV down to around $53,400. But while these prices reflect a significant decrease over the past year, there may be more room for them to fall.

EV prices may fall further

iSeeCars Executive Analyst Karl Brauer said in a recent research report that used electric vehicle prices are in a “free fall” as demand has tapered off.

According to the report, one of the reasons why prices are falling is because gas is cheaper now. According to AAA, the average price per gallon of gas is about $0.34 cheaper than it was last year.

But prices are also falling because there’s more used EV inventory available. The report noted that used EV prices are falling 10 times faster than the average used vehicle price thanks to slowing demand and more EV supply. Similarly, KBB says there are far more new EVs in supply — 103 days of inventory — than the typical automotive industry average of 53.

The rise in new inventory has led to some automakers cutting the prices of new models, bringing down the cost of used EVs. The iSeeCars analysis noted that when Tesla cut the prices of its new vehicles this year, it caused the value of used EVs to drop because the automaker accounts for a large part of the U.S. EV market.

And there will likely be more EV inventory on car lots in the coming years. Automakers are poised to release 90 new electric vehicle models over the next three years, which could put further pressure on prices.

Money-saving tips for EV buyers

If you need a new vehicle now and are considering an EV, there are a few things you can do to ensure you’re getting the best deal possible and keeping your personal finances on track.

The first, and probably most important, is to take some time comparing the best auto loans. Not every lender will offer you the same interest rate on your loan or the same fees, so it pays to spend some time finding the one that best suits your needs.

You may also want to look at any available tax credits. There are tax credits worth up to $7,500 for new EVs and up to $4,500 for used EVs. You’ll need to do a little research ahead of time because not all EVs qualify for the credits. You can find a complete list of EV tax credits here.

It’s worth keeping in mind that EVs are typically more expensive to insure than the average car. Auto insurance rates are already high right now, and EVs add to that cost even more because they’re more expensive to replace. Shopping around with different auto insurance companies could help keep your EV costs a little lower.

And if all of this sounds too expensive right now, remember that as more EVs hit the market soon, you may have better options as automakers compete for new EV drivers.

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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.Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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Even being the CEO of a major company doesn’t guarantee credit card approval from it. Read on to learn more. 

One of the reasons it’s so important to have a clean credit history and a high credit score is that doing so makes it more likely that you’ll be approved for a credit card when you apply for one. Similarly, having a high net worth and earning a higher salary generally makes you a more prime credit card candidate.

Or does it?

With a net worth of $1.9 billion, Apple CEO Tim Cook seems like the sort of person who would have no trouble qualifying for a credit card — especially one from the company he runs. But apparently, Cook was initially denied an Apple Card for one very big reason.

When you’re commonly the victim of fraud

Prior to the official launch of the Apple Card in August of 2019, Cook applied for a card of his own during a test run. And shockingly, he was denied.

It wasn’t because of a poor credit score or a lack of money, though. Rather, financial giants like Cook are commonly targeted for fraud. Criminals are known to try to impersonate people like Cook and apply for credit on their behalf.

As such, credit bureaus commonly flag the credit reports of people in Cook’s shoes. And that actually makes it harder for them to get access to personal credit, should they need it.

The good news is that while Cook was initially denied an Apple Card, Goldman Sachs, Apple’s underwriting partner, made the decision to grant him a card despite his flagged credit report. But it just goes to show that even billionaires aren’t guaranteed credit when they want it. And if a billionaire might struggle to get access to credit, so might you.

The importance of checking your credit report

There may not be much that people like Cook can do to avoid having their credit reports flagged. And so people in his shoes may need to jump through certain hoops to get credit card approval, even though they’re more than qualified.

But if you want to help ensure that you’re able to get access to credit when you need it, then it’s a good idea to check your credit report every four months or so and make sure there are no surprises. Sometimes, the credit bureaus that put together these reports make mistakes or receive incorrect information. But if those errors work against you, it could prevent you from getting a personal loan or credit card when you want one.

Let’s say your credit report shows a delinquent debt for $800 that was never yours to begin with. Transposing two digits in a Social Security number could result in a debt like that showing up on your credit report instead of the report of the person who racked it up. And you may not have any clue that that debt is listed on your credit history unless you check your report to see what information it contains.

The good news is that right now, you can actually access a free copy of your credit report every week through the end of 2023. Usually, you’re limited to one free copy per year from each of the three major reporting bureaus — Experian, Equifax, and TransUnion.

But for the most part, checking your credit report once every four months is sufficient. And it’s something you should make a point to do so you don’t end up in a situation like Cook was in where you can’t get a credit card you’re convinced you should be able to qualify for.

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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.Maurie Backman has positions in Apple and Target. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, and Target. The Motley Fool has a disclosure policy.

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Remodeling your home with the intention to earn the money back when you sell is likely a losing proposition. Keep reading to learn when a remodel makes sense. 

Alongside the many ongoing costs of owning a home, if you want to change something about your house, you’ll incur the expense of remodeling. Depending on what you want to do to your house, your costs will vary — it makes sense that repainting a few bedrooms is going to be cheaper than, say, tearing out your 1970s-era kitchen and replacing it with sleek, modern features and appliances.

You might try to justify the cost involved with such a project by thinking that whatever you spend on it will eventually be returned to your checking account in the form of a higher price when you sell your home. But this could be a mistake, depending on the type of remodel you’re undertaking.

Remodeling Magazine recently collected data about project costs as compared to their value at resale, and found that most common remodeling projects don’t generate a complete return on investment. Here’s a look at the ones that do — and a few reasons why remodeling your home could be worth it even if you don’t get more money when you sell the house.

These projects generate the best ROI

According to Remodeling Magazine’s “2023 Cost vs Value Report,” there are only four projects that saw a return on investment (ROI) of 100% or better on a national level. These were:

Converting your HVAC system from a fossil-fuel-burning furnace to an electric heat pump (cost recouped: 103.5%).Replacing your garage door (cost recouped: 102.7%).Adding a manufactured stone veneer to the bottom third of your home’s street-facing facade (cost recouped: 102.3%).Replacing your front door with a steel one (cost recouped: 100.9%).

Interestingly, none of these projects are especially swoon-worthy if you’re a homeowner (although, as someone who lives in a state with severe winters and correspondingly high winter energy costs, I am hoping to convert my HVAC to electric when I buy a home next year).

Instead, you’re probably dreaming of a newly redone bathroom or perhaps building a new deck on the back of your home. Since projects like this won’t pay for themselves when it’s time to sell your house, should you bother with them anyway (assuming you can afford them, that is)? I say yes, for one big reason.

Would remodeling keep you from moving?

I have moved house under every possible circumstance (including multiple job relocations, an unsafe living situation, and having a rental home sold out from under me). Moving is stressful and expensive, and there’s an extra layer of expense if you own your home and must sell it alongside moving into a new one. But if you can put off selling your home by instead remodeling it in a way that makes you want to live there for longer, that’s a win.

The money savings can be significant here, too. As of this writing, the average rate on a 30-year fixed-rate mortgage loan is 6.9%, per Freddie Mac. If you bought your home at a lower rate than this, it’s likely going to hurt to give up your low rate in favor of this one. Plus, home values are still elevated and supply is low, so buying a new home in the near future is likely to be an even more stressful prospect than usual.

Being happy in your home is important

I might be uniquely positioned to appreciate the ability to remodel a house for the sake of your own enjoyment and happiness, since I haven’t had much of a chance at that as a renter. But I do think putting the time and money into a house to make it a better place for you to live is worthwhile — even if you don’t get to recoup the cost of that new kitchen or bathroom when you decide to sell.

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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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You have options for where to keep your vacation fund. Read on to learn about one of the best places to keep your money safe and help it grow. 

After a few pandemic-ridden years, travel is back in a big way. I made my first-ever trip outside of North America earlier this year, and I’m not alone in putting a higher priority on travel in the wake of COVID-19. A recent Forbes Advisor survey of 1,000 Americans found that a whopping 87% intend to travel at least as much as they did in 2022, and 49% intend to travel more than last year, despite the high inflation we’ve all been living with.

It’s not enough to have the intention to travel — you also need the follow through. And that’s where having a plan to save money for vacations comes in. But you need a safe place to keep that money, and ideally, it would be somewhere your money can grow, too. I keep my travel fund in an extremely approachable bank account: a high-yield savings account.

Wait, a plain old savings account? Really?

Yes, really! I still think a certificate of deposit (CD) can be an excellent place to keep the cash for a far-off travel goal (dream honeymoon, perhaps?). But a savings account is probably your best bet if you’re putting cash aside to fund near-term travel.

Why? Well, for starters, a savings account keeps your money accessible. You can link one to your checking account or choose one at a different bank if you see a great APY elsewhere. It’ll generally take one or two business days at most to send money from one account to the other if they’re at different banks, or it might be instant if your banks both work with the same mobile payment application.

And to give another point for savings accounts, online-only banks are currently offering APYs of 4.00% or better these days. Mine actually just emailed me; on the heels of the most recent Federal Reserve rate hike, I’ll be earning 4.25% on my savings account. You won’t get that kind of return on any other account that is more accessible and easier to use. Plus, the best savings accounts out there come without maintenance fees, and many also have a low or no required minimum deposit to earn interest. And they’re even FDIC insured.

Try these tips to enhance your travel fund

If you’re ready to start funding a savings account and dreaming of vacations, here are a few ways to make it happen:

Pay yourself first: This means deciding how much you want to save every week or month (or whatever schedule works for you), and then taking that money out as soon as you get paid. Don’t leave the savings for after your bills are paid and you’ve spent your discretionary cash — you might not have anything left to save.Automate it: I haven’t automated my savings, but that’s not because I don’t see the value in it — it just doesn’t work for me personally. But if you struggle to save, taking this step might help.Start actively planning your trip: Dig in and see how much plane tickets, ground transportation, restaurant meals, and hotel rooms (as well as everything else you’ll need to pay for) will actually cost you! The most proactive way to save is to start from a place of knowledge. Plus you can start dreaming about that ocean view…Make your money go further with the right credit card: Yes, you are saving money for this trip. But I recommend paying for your expenses with a great travel credit card and then using the cash you saved to pay off that card. You’ll earn points toward future travel and be granted purchase protections, and potentially travel insurance, along the way. And if you have a luxury travel credit card, airport lounge access and hotel room credits could also be yours.

We live on a beautiful planet, and traveling allows you to see it for yourself. I hope I’ve inspired you to open a new savings account and start saving for your next trip.

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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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