Money Management

Barbie’s Margot Robbie paid off her mom’s home mortgage. Find out what you can do to pay your home loan off sooner and save money on interest charges. 

Everywhere you go, you’re probably seeing a lot of Barbie content. Since opening, Greta Gerwig’s popular movie has generated nearly $775 million globally so far. Margot Robbie is one of the producers of the film and stars as the lead character.

Margot has been a household name for a while but wasn’t always a big-name star. The actress recently shared in an interview that she paid off her mother’s home loan after becoming a successful actress. Here’s how everyday people like you can pay off their mortgages faster.

Margo Robbie paid off her mother’s mortgage

In December 2022, Margot was interviewed by correspondent Tracy Smith for the CBS Sunday Morning show. The actress discussed how her mother helped fund her early acting endeavors by borrowing money against their home loan.

Margot kept a careful record of the money she borrowed. When she made enough money, she paid the remaining mortgage balance off as a thank you to her mother for supporting her as she built her career. She noted that anyone in her position would have done the same thing.

How to pay down your home loan faster

While most of us can’t afford to pay an entire mortgage off at once, there are ways to pay down your home loan faster. By making extra payments toward the principal of your mortgage, you can save yourself money on interest and get clear of the debt sooner. No longer having a mortgage payment to worry about could allow you to tackle other financial goals.

Be sure to inform your lender that you want the extra payments applied to the loan principal, not interest. If you don’t do that, your lender may apply the extra payment toward future payments instead.

Below are two strategies you may want to consider when making extra payments on your loan.

Pay extra every month

Making extra payments each month is an excellent way to get ahead on your loan. It may feel more manageable to do this because twelve small additional payments add up over a year, and it can make a big difference when considering the money saved on interest costs.

If you have a $350,000 30-year, fixed-rate home loan with a 6.5% interest rate and make an additional $100 payment toward the principal each month, you’ll shave three years and six months off your loan’s timeline. You’ll also save more than $62,000 in interest with this strategy.

Make one additional mortgage payment yearly

Another strategy to consider is to make one extra mortgage payment per year. It may feel easier to do this during a time of year when you have extra money coming your way — for example, a three-paycheck month or when you get a bonus at work.

If you have a $350,000 30-year, fixed-rate home loan with a 6.5% interest rate, and you make an additional $2,500 payment toward the principal once a year, you’ll shave off six years and two months and save over $107,000 in interest.

Extra payments make a big difference

Any money saved on interest fees can be a benefit to your personal finances. If you can afford to pay extra toward the principal of your home loan, you may want to start doing so. You can use an extra mortgage payment calculator to determine how much time and money you’ll save.

But if you have high-interest debt, like credit card debt — it’s best to eliminate this debt first. You’ll save more money in interest by tackling high-interest debt first. If you’re considering becoming a homeowner, check out our list of the best mortgage lenders to learn more.

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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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Take a trip to Barbie Land by seeing Barbie in theaters while you still can! Find out how to save money on movie tickets with these discounts and deals. 

Barbie is all the talk this summer — and for good reason. Since its release, the movie has achieved many domestic box office records. This includes having the biggest opening weekend of 2023 by bringing in $162 million at the domestic box office, the biggest opening weekend in history for a film directed by a woman.

If you haven’t seen Greta Gerwig’s Barbie yet, it’s not too late to see it in theaters. For those working hard to reach financial goals, a movie outing doesn’t have to break the bank. Below, I’ll explain how you can see this popular movie without spending $15 or more per ticket.

Look for ways to get a deal on movie tickets

A trip to your local movie theater can be pricey. According to the National Association of Theater Owners (NATO), the average nationwide movie ticket cost $10.53 in 2022. That number will likely be higher for 2023. If you live in an expensive U.S. city, paying $15 or more for a movie ticket is not unusual. In addition to high admission prices, the cost of popcorn and snacks can add up fast.

But that doesn’t mean planning a movie outing while on a budget is impossible. If you’re strategic, you can see new movie releases, including Barbie, for an affordable price. You can do this by taking advantage of deals. Here are seven ways to save on your next movie date.

1. See a matinee showing

One of the easiest ways to save on your next movie date is to see a matinee screening. Instead of going to the movies in the evening, you can get a deal on ticket prices during the daytime. For example, in Chicago, moviegoers pay only $10.79 for a matinee screening (before 4 p.m.), compared to $15.49 for an evening showing — that’s a savings of 30%. The savings will add up if you’re going to the theater with several friends or family members.

2. Buy discounted gift cards (or earn free gift cards)

By purchasing discounted gift cards to your favorite movie theater, you can save money on future movie outings. Retailers like Sam’s Club and Costco sell discounted theater gift cards. Another option is to put your credit card rewards to use. Some rewards credit cards allow cardholders to redeem their rewards for gift cards. While this typically isn’t the most valuable redemption option, it may be worthwhile if you have no other redemption plans.

3. Sign up for loyalty programs

Many national and independent movie theaters promote free loyalty programs. One example is AMC Theatres, which has a free membership tier, AMC Stubs Insider. Once you sign up, you can earn discounts and freebies whenever you spend money. If you’re a regular moviegoer, don’t ignore these programs because they provide value to loyal customers like you.

4. Score cheaper tickets with an AAA membership

If you’re an AAA member, put your membership perks to use. AAA members get discounts of 35% or more at places like AMC Theatres, Regal, Showcase Cinemas, and Cinemark. By using AAA perks beyond roadside assistance, you can maximize the value of your membership.

5. Go to the movies on a discounted day of the week

Check to see if your favorite theater has a discount movie day. There’s a movie theater in my city that promotes a discount deal on Mondays. On Mondays, customers pay only $6.25 for a movie ticket (day or night), and it even comes with a small popcorn. At that price, I feel no regret when swiping my credit card while out on a movie date night.

6. Buy a movie subscription

If you’re a cinephile, you may want to consider investing in a movie subscription. Some theaters offer monthly movie passes that allow you to see a set number of films each week or month or unlimited movies for a set price. For example, AMC A-List members can see up to three movies per week for a set monthly fee. Membership prices vary depending on the plan chosen and can vary by geography, but prices for this monthly membership start at $19.95.

7. Ask about other discounts

Finally, don’t forget about other possible discounts. Many theaters offer cheaper tickets to seniors, students, and military members. Plus, kids’ tickets are often cheaper too. If you think you may qualify for a discounted ticket, don’t be afraid to ask.

You can experience Barbie Land without ignoring your budget

It’s not too late to take a trip to Barbie Land. As you plan to see Barbie in theaters, see if you can keep more money in your checking account using one of the strategies mentioned above. Check out our free personal finance resources for additional ways to save 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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Own stocks that pay dividends? Read on to see what happens when you take the money and run. 

Investing in stocks is a great way to grow wealth over time. And you can make money with stocks in more ways than one.

First, if you load up your brokerage account with quality stocks and hold your shares for many years, there’s a good chance they’ll appreciate in value, setting you up to sell them at a profit. But you can also make money by investing in stocks that pay dividends.

How dividends work

When a company pays dividends, what it’s doing is sharing some of its profit with shareholders rather than investing all of that money back into the business. Some people like the idea of dividend-paying stocks because they get to collect payments on a regular basis, usually every quarter.

To be clear, companies are not required to pay dividends. And it’s possible for a company to pay one consistently for years and then stop that practice. Companies can also change their dividends by increasing or decreasing them.

What you can do with your dividends

When dividends land in your brokerage account, you have two options. You could reinvest them so they’re able to help you grow wealth, or you can cash them out and use that money as you please.

You should know that there’s no penalty for taking your dividend cash and running with it, so if that’s the route you wish to take, go for it. In fact, some retirees have a strategy of holding dividend stocks and cashing out their dividends regularly to use as income to cover their living expenses. And cashing out your dividends won’t make a difference from a tax perspective, either.

When cashing out makes sense

Maybe money has gotten tight in your world, but you don’t want to liquidate your investments or raid your savings account. In that situation, cashing out your dividends would be a perfectly reasonable thing to do. And it won’t hurt you from a tax perspective compared to reinvesting that money.

Dividends are generally taxed at a more favorable rate than ordinary income. If you’re single earning up to $40,400, you actually fall into the 0% tax bracket for taxes on qualified dividends (most dividend payments fall into this category). And if you’re single with an income of $40,401 to $445,850, your tax rate on dividend income is 15%.

But those taxes will apply whether you reinvest your dividends or not. So don’t assume that cashing out will hurt you tax-wise.

The one way you might lose out

Cashing out your dividends could make sense. But remember, in doing so, you miss out on the chance to reinvest that money and grow it into a larger sum.

Cashing out $40 in dividend payments to cover a bill may not seem like a big deal. But over the past 50 years, the stock market’s average return, as measured by the S&P 500, has been 10% before inflation. So if you were to reinvest $40 at a 10% return over 40 years, you’d grow it into about $1,800.

But still, if you have your reasons for cashing out your dividends, then so be it. And you could always cash out those dividends now, but make a plan to begin reinvesting them once your circumstances change.

Most brokerage accounts will actually let you set up an automatic dividend reinvestment plan if you so choose. That way, you won’t even have 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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