Money Management

Losing a credit card can be a headache, particularly if you rely on it to make payments. Find out how to minimize the impact of a lost card. 

I’ve had an interesting month. I lost my passport while traveling and then had a mad (and costly) scramble to replace it in time for a flight. It made me think about what happens when you lose important items, whether that’s your phone, driver’s license, or credit card.

The good news is that credit cards carry a lot of protection against unauthorized charges. Plus, while losing a card is stressful, it’s relatively easy to get a replacement.

What happens when you lose your credit card

If your credit card is lost or stolen, it can be used to make purchases until it is canceled. To avoid this, contact your bank as soon as you realize your card is missing. Your card issuer may also freeze the card if it picks up suspicious activity.

Once you’ve canceled the card, it’s a question of how you get a new one. Then you’ll need to be on the lookout for fraudulent activity. Here’s how that might play out.

1. Cancel your credit card

To cancel your card, you can call your bank or card issuer, log on to your online account, or use your mobile app. Most top credit cards won’t charge for any unauthorized charges. However, if your card issuer doesn’t have zero liability, by law, the most you can be charged is $50. It’s also worth following up in writing, just to be sure. If your card was stolen, you may also need to file a police report.

If you’re not sure the card is gone, there may also be a solution. Some credit cards let you put a temporary freeze on the card. This can be useful if you’ve misplaced your card but think you might be able to find it. For example, you might be 90% sure you left your card at a friend’s house, but want to hold any transactions just in case you’re wrong. You can freeze a card by phone, your online bank account, or via the app.

2. Your card issuer will send you a replacement credit card

According to Experian, it can take up to 10 days to get a replacement card, depending on the card company. If you need your card quicker, you may be able to pay a fee to speed things up. Check to see if you need to do anything to activate the new card.

3. Update your mobile wallet and any automatic payments

Once you’ve got your new card in your hand, you may need to update any automatic payments with your new card information. This might include subscriptions, gym memberships, or other bills. You might look back through recent statements to make sure you catch everything. If you have your card stored in a mobile wallet app, make sure you update this information too.

4. Pay attention to your credit card statements

In theory, your new card should smoothly replace the old one and your card issuer will deal with any fraudulent transactions. However, it’s worth being extra vigilant for a time. If you see any strange transactions, report them immediately. It’s also a good idea to get a free copy of your credit report from all three credit bureaus just in case someone is using your information to open a fake account in your name.

What if you lose your card when you’re abroad?

If you lose your credit card when traveling, the process is very similar to the one listed above. The biggest difference is that you may not be home to receive your new card. Plus, you may need to get the replacement quickly if you’re relying on it to pay things like your hotel bill or other costs. The best travel credit cards will send a replacement to an international address free of charge. Others may charge you, particularly if you need the card quickly.

How to minimize lost credit card pain

One of the simplest ways to avoid being stranded if you lose a credit card is to have multiple credit cards. Don’t keep all your cards in the same place, and think about which ones you want to carry in your wallet, particularly if you’re traveling. If you lose your wallet, you don’t want to lose all your payment methods at once. It may also be worth saving your backup card info in your mobile wallet. That way you can leave the physical card in a safe place at home and still be able to use it for payments if necessary.

If you don’t use banking apps, take a few minutes to note down the customer care numbers for your card. I have mine saved in my phone’s contacts. That way you’ll have all the information you need to quickly report the card lost or stolen. Check to see whether your card offers zero liability for fraudulent transactions. If it doesn’t, see if you qualify for one that does.

Bottom line

Most of us lose things from time to time, including credit cards and other valuable items. The trick is to make sure it’s a minor inconvenience rather than a major headache if it happens to you.

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Losing a job or taking a pay cut can be a stressful and scary experience. Keep reading for practical tips to cope. 

Losing your job or having your salary reduced can be an incredibly stressful and overwhelming experience. Suddenly, the bills are piling up, and you don’t know how you’re going to make ends meet. It’s important to remember that you’re not alone, and there are steps you can take to manage your finances during this challenging time. Here are some practical ways that you can make ends meet when you’ve lost your job or taken a pay cut.

Assess your finances

The first step is to assess your current financial situation. Take a look at your monthly expenses and determine which ones are essential and which ones you can cut back on. Make a list of all of your bills, including your rent/mortgage, utilities, car payments, and other debts.

Once you have a better understanding of your finances, you can set a realistic budget that will help you manage your expenses. This will allow you to make sure you approach your finances in a healthy and well-balanced way.

Read more: The Ascent’s personal finance resources

Look for benefits

If you’ve lost your job, you may be eligible for unemployment, severance, or other benefits. These are designed to help you during this difficult time by replacing a portion of your lost income.

Be sure to check with your state’s unemployment office to determine your eligibility and how to apply for benefits. For health insurance, state and federal marketplaces offer alternative coverage options that you may qualify for.

If you don’t want to switch providers, you may be able to continue insurance coverage with your former employer, but note that the cost can be high.

Consider a side hustle or part-time job

While you’re looking for a new job, consider taking on a side hustle or a part-time job in your area of expertise. This could be anything from freelancing to driving for a ridesharing service to selling items online. Look for opportunities that fit your skills and interests, and make sure that they won’t interfere with your job search.

You may find that a company is willing to offer you a temporary or contract-based role until you can get back on your feet. Moreover, it can be an excellent opportunity to meet new people and develop new skill sets.

Cut back on expenses

Trim your expenses to the bare minimum. If you’re living extravagantly, it’s time to cut back. Cancel subscriptions, such as streaming services, magazines, or gym memberships.

Also, consider limiting takeout meals and eating out, going generic with groceries, reducing gas usage, and generally cutting back on extras.

Contact your lenders

Contact your creditors, such as your mortgage lender or credit card issuer, and explain your situation. Lenders understand that life happens, and many offer assistance programs for those experiencing hardship.

By being upfront with your lenders, you give yourself the best chance of finding a solution that works for both parties. Remember, it’s not a weakness to ask for help, but instead a sign of strength and responsibility.

Sell unused items

Sort through your items and identify belongings you may no longer need or want. This can provide an opportunity for decluttering your home as well as earning extra cash. Consider selling them online, at a yard sale, or swap meet.

Seek financial help

There is no harm in researching financial assistance programs such as food banks or government-sponsored help programs. There may also be charitable organizations that can provide temporary assistance. Just make sure to read their eligibility criteria and terms.

Money management can be overwhelming, but it doesn’t have to be. Even when you’re struggling with a job loss or pay cut, there are many steps you can take to try and get back on your feet. Managing your money effectively, seeking part-time work, and exploring assistance programs are just a few ways you can make ends meet and come out stronger on the other side. Don’t forget to update your resume and remember, every challenge is an opportunity for growth.

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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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Your 40s are a pivotal time to make smart investments that can set you on the path to financial freedom. Read on for seven prudent investments to make. 

Investing is not just about buying stocks, bonds, or other assets. It is a journey that involves making smart choices that can lead to a better financial future. Every investment you make should help you achieve your financial goals and aspirations. That is why it is crucial to plan and strategize your investments carefully, especially when you’re hitting your 40s.

At this age, you are in a position where you’ve had a chance to accumulate some savings and have a clearer sense of what you want to achieve. Many people in their 40s also have a young family and a mortgage. Here are some of the best investments people in their 40s can make to set themselves up for a secure financial future.

1. Invest in yourself

No matter your age, investing in yourself is an essential investment. Your 40s are a vital time to upgrade your skills, expand your knowledge, and build up your credentials.

Moreover, improving your qualifications and skills can lead to a better-paying job, career advancement, and more significant earning potential. Therefore, consider enrolling in certification or education programs that can broaden your horizons and equip you with the necessary skills to succeed in your career or business.

2. Contribute to your 401(k)

Your 40s are a crucial time to boost your retirement savings. One way to do that is by contributing to a workplace retirement account like a 401(k) plan. Many employers will match up to 3% or 4% of an employee’s contribution each month — which means they are essentially giving away free money.

These plans allow employees to save a portion of their salary before taxes, as well as enjoy employer matching contributions. By contributing to your 401(k) plan, you can benefit from reduced taxes, compounded interest, and enjoy a secure financial future.

3. Pay off high-interest debt

Paying off debt might not seem like an investment, but it is. High-interest debt can eat into your finances, and you must tackle it before it gets out of hand. Those in their 40s should have a debt management plan to pay down credit card debt.

You can consider refinancing or consolidating your loans if you have multiple high-interest debts. This strategy will help you pay off your debts faster and reduce the amount paid on interest.

4. Purchase life insurance

Life insurance is an essential investment to consider in your 40s, especially if you have a family or dependents who rely on your income. Life insurance provides your family with a financial safety net in case you pass away unexpectedly.

Life insurance policies vary in coverage and duration, so it is important to research and select one that fits your needs.

5. Estate plan

Investing in an estate plan may not seem like a pressing issue for those still in their 40s, but it’s a decision that can make a considerable impact on their financial and legal affairs. With the right estate plan, you can have peace of mind knowing your assets and properties are protected and your loved ones are taken care of according to your wishes.

An estate plan can also help to minimize taxes and avoid probate, which can save your loved ones from added emotional and financial stress during a difficult time. While planning for the future can sometimes feel daunting, creating an estate plan in your 40s allows for ample time to make adjustments and changes as needed.

6. College savings

Saving money for college can be a daunting task, but it is an essential investment for your children’s future. As parents in your 40s, it is crucial to start planning and contributing to a college savings account. This investment will provide your children with a solid foundation as they pursue their higher education goals.

Not only does it remove the burden of borrowing to pay for education, but it also instills financial discipline. You can take advantage of various college savings plans that suit your needs and budget. Time is an asset when saving for college, and the earlier you start, the better.

7. Diversify your portfolio

Diversifying your portfolio is one of the best strategies to reduce risks and boost returns. By diversifying your investments, you can spread out your risks and avoid placing all your eggs in one basket.

Consider investing in a range of low-cost index funds, ETFs, mutual funds, bonds, and other assets. Make sure your portfolio aligns with your risk tolerance and investment goals.

Investing isn’t just about stocks or other assets. In your 40s, investing in personal development, debt management, retirement accounts, life insurance, and diversifying your investment portfolio are all critical areas to prioritize. These investments may not provide immediate gratification, but they can set you up for a secure financial future. By taking action now, you can pave the way for a comfortable retirement and financial stability for your loved ones.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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In a tight housing market, multiple offers are more common than not. Here’s what you may face when competing with other buyers. 

According to Zillow, around 75% of folks selling their homes in 2022 received multiple offers, and more than a quarter of sellers received four or more offers. And based on reports that the U.S. housing market is still short millions of homes, that trend is likely to continue for some time.

For folks looking to buy a house, this is bad news. Not only will it be harder to find a home you like thanks to shortages, but when you do find a home, you’ll likely be forced to compete against multiple offers.

So, what happens when you’re in a bidding war for a house? In short: The seller has all the power. But there is still room for buyers to make sure they’re protected. Let’s look at what happens in a multiple-offer situation.

The best-and-final deadline

Arguably the most common scenario in the current housing market is a multiple offer deadline. Basically, the listing agent will set a date and time by which every interested buyer needs to submit their highest and best offer.

Once the deadline passes, the agent will present all of the offers to the sellers. Then, it’s up to the sellers to make a choice.

Often, the sellers will simply choose the highest offer. However, there are some cases in which the biggest number doesn’t actually win. Here are a few common examples:

If there is an offer that waives inspection. Some bids may waive the inspection contingency, meaning they won’t require a home inspection before closing. While this isn’t ideal for the buyers — you won’t know about potential problems ahead of time — it means the sellers won’t need to worry about being asked to fix (or pay to fix) any of those problems.If there is a cash offer. Buyers who need a mortgage loan need to go through final approval before the contract can be finalized. This can not only slow things down (banks aren’t known for their speed), but it could also derail the whole thing if something goes wrong with the financing. A cash offer is faster and has far fewer potential hiccups.If other offers can close sooner (or later). If the seller needs to be out of their home ASAP — or if they need more time to find another home — then an offer with a more flexible closing date could win out over an offer with a higher purchase price.

In the end, it’s entirely up to the sellers which offer they accept. And they can choose to accept, or reject, offers on any grounds they feel like using.

Escalation clauses

One neat contract trick you may be able to use in the best-and-last offer situation is called an escalation clause. This allows you to essentially say, “My bid is $X, but if there is another verifiable offer higher than $X, I will go up to $Y.”

For example, say you want to bid $200,000, but you’re willing to go up to $215,000. You can put in a bid of $200,000, with an escalation clause up to $215,000. Then, your bid will automatically increase — usually in increments of $1,000 — if there are offers higher than your initial bid.

So, if the highest offer is at $201,000, your bid would automatically increase to $202,000. Similarly, if the highest offer is $214,000, your bid would automatically go up to $215,000. But it will only go up to the cap you put in place.

An escalation clause can be a good way to make sure you don’t miss out on a house by a few dollars. (Because who doesn’t hate when that happens on Price is Right?) And best of all, the sellers must prove there was a higher offer in order for the escalation clause to kick in.

Counters and bidding wars

Not all multiple-offer situations are quite as clear-cut as the best-and-final deadline. For instance, the sellers may choose to counter a particular offer (or multiple offers) hoping to get more money or more favorable contingencies.

Perhaps the worst case scenario is if there is a back-and-forth bidding war. In this case, the listing agent may reach out to tell you there is another offer, and to see if you want to bid higher than that offer. Then, they could do the same for the other seller(s). This could go back and forth until there’s only one offer standing.

Know your maximum budget, and stick to it!

I know, it’s hard to think you may lose a house you like over a few thousand dollars. But it’s all too easy to let emotions carry you away — and take your budget along for the ride.

Long before you start looking at houses, it’s vital to know how much house you can afford. You need your ideal budget (what you want to pay) and your max budget (the most you’d be willing to pay).

Then, stick to your number. Don’t budge for anything, even your dream house. Because a dream house you can’t afford is really a nightmare in disguise.

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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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Copious consumption is not only bad for our closets, but also our wallets. Putting these items on your No Buy list can help improve both. 

For many Americans, shopping isn’t just that thing you do when you need something. No, for far too many of us, buying things has become a hobby, or even a way of life.

It’s time to stop. Not only is this constant consumption bad for our finances, but it’s not so great for the planet, either. Moreover, there’s only so much stuff we can fit into our homes before we’re simply piling junk on top of other junk.

One of the ways folks are trying to cut down on their consumption is by creating “No Buy” lists. You consider all the things you’re prone to wasting money on, then put them on a list of things you simply won’t buy this year.

Not sure where to start? Here are some items many of us could probably add to our No Buy lists.

1. Clothes

The size of our wardrobes in the U.S. has grown astronomically, in large parts thanks to the fashion industry pushing the narrative that success means an abundance of clothing. The side effect of this is that many of us have closets that are fuller than our bank accounts.

And this isn’t a gendered problem. I know plenty of people all along the gender spectrum who have things in their closets they haven’t worn in years — or, worse, things still sporting price tags that have never been worn.

Instead of hitting the stores for new clothes, spend some time getting to know your own closet. Take off those tags, mix and match, and let your imagination run free.

2. Hobby supplies

Having a hobby is great. Having a hobby that causes you to spend too much money on things you aren’t using…well, that’s less good.

As the person who seems to have turned buying hobby supplies into my hobby, I put this one on my 2023 No Buy list. And I have to say, I haven’t actually missed it as much as I thought I would. Instead of buying new supplies to add to my collection, I’ve started to use up the ones I have.

Do I sometimes wish I could splurge on cool supplies that I come across? Sure. But I’m actually enjoying stretching my creative muscles while working my way through my closet full of this and that.

3. Kids’ toys

Yes, kids absolutely need toys and play to be happy and fulfilled. No, they absolutely don’t need a new toy every week, or even every month. In fact, many kids could probably go an entire year without a new toy and still never play with every toy they already have.

One trick you can use, especially with younger kids, is to simply pack away the toys they don’t often use. Then, re-introduce a “new” toy every few weeks. They get the joy of rediscovering toys they likely forgot existed — and you get the joy of having far fewer things to clean up every evening.

4. Electronics

Every year, we’re bombarded with ads for the hot new gadgets. And every year, millions of us feel compelled to toss out perfectly good electronics for the marginal-at-best upgrades of the latest tech.

Just say no. Seriously, is a slightly better camera really worth a $1,000 upgrade? Trust me, those pictures of your breakfast burrito, or your dog in a hat, or your kid’s cannonball into the pool, will all look just as good on last year’s phone as they do on the new phone. Really.

5. Plastic

In a way, this one could encapsulate everything else on this list. So much of what we consume these days is made of plastic that our entire planet has been infested by it. There are microplastics in the air, the water, even our bodies.

Unfortunately, the only way to get companies to stop producing so much plastic is to, you know, stop buying it.

Instead of shelling out a fortune on plastic that will either break after a few uses, or, worse, that’s only designed to be used once in the first place — consider reusables. You can find sturdy, well-made, non-plastic versions of pretty much anything these days, from drinking straws to feminine products.

Not only will you save money in the long run, but you’ll help reduce waste. So it’s a win-win.

Love what you’ve got

Embarking on a No Buy year (or month, or even week) is all about learning to take pleasure in the things you have — rather than going for the quick hit of dopamine you may get from buying something new.

So do it. Explore the treasures already hidden in your home, and give your credit cards a break from all that swiping and tapping. Your wallet — and your closets — will thank you.

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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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Buying your first home can be a financial challenge. Read on for some tips to get the right mortgage. 

First-time buyers not only need to find a property to purchase. They also need to navigate the process of getting a mortgage.

This can be more complicated than you’d think, especially since a mortgage loan is a major financial commitment and you want to make sure you get the best and most affordable loan possible.

To help you maximize your chances of getting the right mortgage loan, be sure to follow these four tips.

1. You may not need as big a down payment as you think

Many people who haven’t yet obtained a mortgage assume they will need a large down payment, but this isn’t always true. In fact, the National Association of Realtors reports the average down payment for first-time buyers has ranged between 6% and 7% since 2018.

Ideally, you will have a down payment of at least 20% when you buy your first home, mainly because you can often get a better rate on your mortgage and avoid paying for private mortgage insurance (PMI). PMI is an insurance policy that protects a mortgage lender in case of foreclosure by ensuring the lender doesn’t sustain out-of-pocket losses. But you’ll have to pay for it and it typically costs anywhere from 0.5% to 1.5% of the amount you’re borrowing.

If you feel like saving a 20% down payment is impossible, though, you don’t have to let this stand between you and your homeownership dreams. There are many mortgage lenders that allow loans with lower down payments, including some that specifically have first-time buyer programs designed to help you get into a home.

2. Your credit and debt will impact how much you can borrow

As you start to explore your options for getting a home loan, you should know that both your credit score and the amount of debt you have will affect the amount you can borrow as well as the rate you’re offered.

Lenders typically want you to have a credit score in the mid to high 600s in order to qualify for a conventional loan — and a score above 700 is even better. As for your debt, you’ll generally need to keep housing costs below 28% of your income and keep total debt payments (including your new loan) below 36%.

There are some lenders that will allow you to borrow if your payments exceed these ratios, but you may not get the best terms. So, aim to get your finances in shape and meet these qualifying requirements before you apply for your first loan.

3. It’s crucial to avoid major life changes before applying for a loan

Mortgage lenders like to see that your income is stable and the amount of debt you have is also pretty stable. So, try to avoid making any major changes to your financial situation or your employment before you apply for your first home loan.

If you’ve recently changed jobs or your income has increased, it may be worth waiting a while and developing a solid income and employment history showing two years of stability before you apply for a home loan.

4. The bank may lend you more than you really should borrow

Finally, you should know that the bank typically lends you as much as it thinks you’ll pay back — which may be more than you should actually spend if you’re also working on accomplishing other financial goals.

Think carefully about how much is actually comfortable within your budget and don’t spend more than that amount on a house, even if your lender will allow you to.

By following these four tips, you can hopefully end up with the perfect mortgage as a first-time home buyer and enjoy jumping into the world of owning a place of your own.

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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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