Money Management

If you need extra cash and are short on time, you may need to get creative. Here are a few ways to make more money without much time and effort. 

Due to rising living costs nationwide, many people are looking for ways to make more money. If you have minimal free time, it may be hard to dedicate much of it to boosting your income. The good news is there are a few ways to make more money with minimal work or time involved. Here are a few ideas to explore if you want to increase your bank account balance.

1. Credit card bonus offers

If you use credit cards, here’s a relatively easy way to earn extra cash. Many credit card issuers advertise welcome bonus offers to new cardholders. You can earn the bonus if you get a new card and meet the minimum spending requirements in the allotted time frame. Many of the best cash back credit cards offer attractive cash back bonuses to new cardholders. For regular credit card users, bonus offers like this can be lucrative. However, it’s essential to be cautious when spending with credit cards. Only charge what you can afford to avoid credit card debt.

2. Cash back apps

If you’re a frequent shopper, it’s a good idea to try out cash back apps. You can earn money back while making everyday purchases. Cash back apps like Rakuten are free to use and make it easy to earn extra cash without altering your shopping habits. Many of the best cash back apps can be used for both in-store and online purchases, so there are plenty of ways to earn rewards.

3. Bank account welcome bonuses

Similarly to credit cards, many banks promote lucrative bonus offers. You could earn some extra cash if you open a bank account and meet the welcome offer conditions. If you’ve been considering opening a new bank account, a welcome bonus could be an excellent reason to switch banks, as you’ll get to boost your checking account balance in the process. Ensure you review the offer’s full terms before opening an account to ensure you’re eligible for the bonus and meet all the conditions.

4. Credit card cash back offers

Another way to use credit cards to earn extra income is by taking advantage of cash back offers. Some credit card issuers have cash back offers built into their websites and mobile apps. Here’s how it works: You browse offers from retailers and then activate the offers that appeal to you. When you use your credit card to make a purchase and meet the conditions of the offer, you’ll earn cash back. While most programs pay out cash back as a statement credit to your credit card account, any extra cash back earned can be a win for your personal finances.

Get creative when looking for ways to increase your income

You’re not alone if you’re looking for ways to boost your income. Life is expensive, and most people seek ways to save or earn more. If you’re struggling to find a better-paying job or have been denied a raise by your employer, be creative and think outside the box as you look for ways to make more money. Having more money in the bank can give you more flexibility to reach your financial goals, like building an emergency fund or paying off debt.

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Getting the right mortgage requires improving your credit, considering your goals for the loan, and shopping around with different lenders. Find out more. 

There are many different mortgage options, including government-backed loans, such as FHA loans, and conventional loans with no government guarantees.

There are also 15- or 30-year loans, and fixed-rate vs. adjustable-rate mortgages. Fixed-rate loans have the same monthly payment for the life of the loan, while adjustable-rate loans have payments that can change based on a financial index.

You’ll need to carefully consider all of the mortgage options available to you so you can get the right home loan for your specific situation. Here are five tips to help you do that.

1. Consider your credit score and debt levels

Your credit score and the amount of debt you have are going to impact what type of mortgage you can get.

If you want a conventional loan, you’ll probably need a credit score above 620, and your total debt including your new mortgage will need to be below 36% of your income with most mortgage lenders. You’ll also need a down payment of around 3% minimum.

If you can’t meet these criteria, you may need to look into alternatives such as FHA, VA, or USDA loans. Since these loans come with a government guarantee, although they are issued by private lenders, they can be easier to qualify for if your financial credentials aren’t perfect.

2. Make a large down payment when possible

If you can make a down payment of around 20%, you should be able to get the best rate possible on your home loan, have the broadest choice of lenders, and avoid having to pay premiums for private mortgage insurance that add to your monthly payments but only provide actual protection for lenders and not you.

If you are not able to put 20% down, try to put as much down as you can. While there are loans available with 3% down or even no down payment at all, they often come with higher interest rates and higher upfront fees.

3. Think about how long you’ll be living in the house

You’ll need to consider how long you plan to stay in the home when deciding what kind of mortgage is right for you.

If you plan to move within a few years, an adjustable-rate mortgage (ARM) that has a lower starting rate than a fixed-rate loan could allow you to benefit from lower monthly payments during the time you’re living at the property. Just be aware that if your plans change and you don’t move before your rate begins adjusting, you’ll face the risk of higher monthly mortgage payments if rates rise.

If you plan to stay in the home for a long time, a fixed-rate loan can provide you with certainty since your payment won’t change for the life of the loan. You may even decide to pay mortgage points, which means you pay about 1% of your home’s value upfront in order to reduce your interest rate by 0.25%. This could pay off for you over time if you stay in your home long enough to pay off the upfront costs of the points and continue to enjoy the interest savings.

4. Shop around among many different lenders

There’s a wide variation in loan terms offered by lenders, so it’s a good idea to shop around among many different loan providers to see which one offers the best deal. Try to get at least three quotes — and ideally more — from lenders that will give you a personalized rate estimate without a credit check so your credit score isn’t affected by your comparison shopping.

5. Consider the opportunity costs

Finally, consider the opportunity costs of different kinds of mortgages. For example, a 15-year mortgage may seem attractive since the interest rate is usually lower and you’ll be debt-free more quickly. But your monthly payments will be higher with a 15-year loan, so you need to consider the opportunity cost of tying up more money.

By thinking about all of these issues, you can get a mortgage loan that makes sense for your situation — and have the peace of mind of knowing that you have the best loan possible for your home.

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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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ChatGPT has dominated the headlines in recent months with promises and predictions of doom. Find out how your small business can navigate this new technology. 

Love it or hate it, ChatGPT and other apps using artificial intelligence (AI) technology are becoming part of our lives. ChatGPT is an AI chatbot created by OpenAI that has harvested vast amounts of information and is able to use it to produce human-like responses. According to ChatGPT itself, “It can be used for a wide range of applications, including customer support, tutoring, content generation, and general-purpose chat interactions.”

There are similar programs such as Microsoft’s Bing Chat and Google’s Bard, but what they have in common is that they can transform the way we generate content and engage with information. As a small business owner, that could save you a lot of time. But it’s early days and there are still several unresolved issues.

AI Caramba! The pros and cons of ChatGPT

There are a lot of ways businesses can use ChatGPT to save time and money. For example, some uses include:

Generate content for a website or other forms of communicationProduce or debug programming codeAnswer client queries in real timeResearch and consolidate informationTranslate content into different languages

Right now, it’s free to use ChatGPT. Set up an account and experiment for yourself. You could ask ChatGPT to generate an article about how small businesses could use AI and what risks they might face. Or get it to give you a list of SEO keywords to include in the article you’ve written. Or draft a note to a client. I used it yesterday to write a letter of complaint to my airline about a canceled flight. It can churn out hundreds of words in seconds.

The trouble? Those words may not be totally accurate. Ultimately, AI is only as good as the data that’s been inputted. So if it’s swallowed entire Reddit forums or large swathes of chat room content, who knows what it might burp out. You’ve probably met someone in real life who formed most of their opinions based on social media. Is that someone you’d want to put in a client-facing role?

AI also doesn’t have the same sense of right and wrong (both morally and in terms of an instinctive fact check) that a human researcher or writer might. Plus, if ChatGPT doesn’t know something — and doesn’t know that it doesn’t know — that might not stop it from answering. Experts have called this “hallucination”, and it’s one of the biggest dangers of using AI right now. That and the unresolved legal issues, which we’ll touch on further down.

It’s also worth pointing out that — as is often the case with new technology — there may already be existing, road-tested software that does the same thing. Let’s say you want to use AI to get deeper insights into your clients’ behavior and improve your communications. But new isn’t always better. There’s already some excellent customer service software on the market.

How ChatGPT could impact your business

If you’re a fruit seller or yoga instructor, it’s unlikely ChatGPT will change your day-to-day operations very much just yet. You might be able to use it to improve your client relationships and save time in certain areas. But other forms of AI may have a more significant impact on many industries. For example, some yoga studios are using AI to analyze people’s poses and give feedback. Farmers are using AI to up their game, by, for example, improving irrigation and detecting plant diseases early. Pay attention to the applications of AI so you can stay ahead of the curve.

However, if your business is based on any form of, say, content creation or programming, ChatGPT could have a more immediate impact on your bottom line. A tool that can generate content or computer code quickly and cheaply may well tempt your existing clients. ChatGPT and similar programs are here, whether we like it or not. The question is, what can you do about it?

Part of the answer lies in understanding the limits of AI and pivoting your offer accordingly. For example, you might position your company as experts in humanizing computer-generated content. There may well be a need for services that specialize in fact checking and polishing AI output. Or perhaps you’re able to add value by interviewing people or doing other things a computer can’t.

Consider the data protection, copyright, and other legal implications

OpenAI recently changed its data usage policy. Unless you opt in, the information you input will not be used to train or improve the ChatGPT model. This is a big step forward, but you still need to be careful with sensitive data. If you input confidential client data into ChatGPT, you could be breaching your agreement with them.

Another thorny question is copyright and plagiarism. If you’re using content produced by AI, make sure you run it through a plagiarism checker. You don’t know where it got its words, and some could have been taken from a copyrighted source. More broadly, some argue that if ChatGPT learned by scraping large quantities of online content, the original authors should give permission and receive compensation.

On the other side of the coin, there are questions about who owns the content ChatGPT produces. Let’s say you generate content for your blog using ChatGPT. In this case, you wouldn’t own the copyright to that content. Your competitor could ask ChatGPT the same question, and generate exactly the same content. Or copy and paste it from your site — you don’t own it.

Bottom line

There’s always a lot of hyperbole about new technology, and some of the issues people have raised about AI are certainly concerning. But as a small business owner, the trick is to understand what’s on offer and think about how you can use it to your advantage. AI can handle a bunch of everyday tasks, which could free you up to do things a computer can’t.

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Incorporating these two simple techniques into your workday can help improve productivity and focus, and prevent burnout. Read on to learn more. 

We all have our ways of working: some are productive, and some are not. But have you ever felt that even if you are working nonstop, the tasks are piling up, and you cannot seem to get everything done? Being productive at work is not about working harder; it’s about working smarter.

Productivity is also the key to unlocking better financial management. When we strive to be productive in our work and personal lives, we are more likely to achieve our financial goals. As we all search for ways to enhance our productivity, here are two stand-out techniques that can give you a boost!

1. Pomodoro technique

The Pomodoro technique is a time-management and productivity tool. The name Pomodoro comes from Italian for “tomato.” The technique was developed in the late 1980s by Francesco Cirillo.

The method involves breaking down your workday into 25-minute intervals, each separated by five-minute breaks. After four work sessions, you take a more extended break that lasts anywhere from 15 to 30 minutes. During each session, you work on the task with no distractions or interruptions.

This regular rhythm helps people concentrate and stay focused during the workday. Moreover, it assists in preventing burnout by alternating intense work with consistent rest. The feeling of accomplishment after every 25-minute sprint can also provide a boost in confidence and motivation.

You can also use this method to break up your workload by “chunk.” If you struggle with concentration and find yourself getting sidetracked often, dividing your work can be the key to success. By segmenting your tasks, you not only stay on task but also improve your ability to recall information later.

2. Brain breaks

The Brain Break method is similar, where you schedule downtime for your brain. You take a brief pause to reset and divert your thoughts from work. It can be as simple as standing up from your desk and taking a deep breath, stretching, or walking away entirely from your workspace.

Research has shown that even a small break can help decrease feelings of completing tasks, decrease stress levels, and enhance focus.

Choose comfortable activities that work for you during your brain breaks, such as meditating, stretching, or going for a walk. The amount of downtime you can fit in will vary based on your schedule and personal preferences.

Brain breaks can also help with creative thinking. When you pause from your tasks, it gives your brain a chance to get free from the critical thinking mode, allowing you to let your thoughts wander and come up with new ideas and solutions.

Why use both techniques?

The Pomodoro and Brain Breaks techniques complement each other. As much as the Pomodoro timer is essential in allotting specific times for work and rest, it may not be possible to always incorporate 25-minute chunks into your work day.

This is where a brain break at short intervals can help prevent exhaustion or burnout. Especially if you have a side hustle, use them in a way that’s practical for you.

You don’t have to limit your brain breaks to just five-minute intervals either. You can incorporate them throughout your day to break up longer work sessions. By improving our efficiency, we can get more done in less time. In turn, this can lead to greater financial success, as we are able to increase our income and savings account balance.

It’s important that you get offline during these breaks. Social media and other online distractions can massively decrease effectiveness when using both techniques. Turn off your phone, mute your notifications, and close unnecessary tabs while working.

Productivity is not just a measure of how much work you can get done, but how efficiently you achieve your goals. Research proves that taking breaks is essential for productivity. It’s also important to note that taking breaks does not mean you are wasting time; it is an investment in your well-being and productivity. Try to find a balance between the two techniques to maximize effectiveness, and with time, you might notice a substantial improvement in your work performance.

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Your monthly mortgage payment should be 25% or less of your income. But take a look at why you may want to get even more specific in capping your payments. 

Your home mortgage will likely be one of the larger debts you take on. Since you’ll be paying this debt for many years, you’ll want to be sure you make smart, informed choices about it. And, most importantly, you will want to avoid committing to a mortgage payment that is too large.

If your home loan payment costs you more each month than you can comfortably afford, it will be a source of financial stress for you for years to come. To make sure that doesn’t happen, consider these tips to help you decide just how big your monthly mortgage payment should be.

Don’t spend more than this percentage of your income

Many mortgage lenders will allow you to take on a home loan that comes with payments equal to about 28% of your income.

However, it is typically best to cap your costs at around 25% of monthly income. If you can do that, it will leave you with 75% of your income left for other things like saving for retirement, putting money into savings, and covering other necessities.

On the other hand, if your housing costs exceed 30% of your income, this is generally defined as being “house poor,” or cost burdened. In this situation, you would likely be left with too little money to pay for everything else that you need and still set yourself up for long-term financial success.

Consider all of your financial goals when deciding what you can spend

The rule of thumb that says to spend 25% of your income or less on your home is a good one and it makes sense for most people to follow. But if you want to make absolutely sure your mortgage payment isn’t too big, you should consider an even more personalized assessment of what you can afford.

READ MORE: How Much House Can I Afford?

You should think about all of your financial goals, what it will take to accomplish them, and how your housing costs will impact that. If you’re committed to early retirement, for example, you may need to put aside 25% of your monthly income (or more) to retire by your desired age. If you’re doing that and devoting 25% of your money to housing costs, that only leaves you with half your pay to cover everything else. That may not be feasible.

To decide what size monthly payment makes sense for you:

Add up your other fixed expenses, such food, the costs of raising your kids, transportation expenses, and other essential costs you incur each month.Figure out how much you need to save for other things, including retirement, big purchases, and vacations.See how much is left over for housing costs, including for your mortgage, property taxes, insurance, HOA dues, utilities, and home maintenance.

By going through this exercise, you can see how much comfortably fits in your budget for mortgage payments. If you can afford a house on that amount, then you’re ready to move forward. If you can’t, you’ll have to decide if reassessing other financial goals to up your housing budget is worth it or if you’d prefer to wait a little longer to buy.

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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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Travel points are one of the best ways to save money on airfare. Find out exactly how one writer saved over $4,000 by using credit card points. 

When I first heard about travel rewards programs, I was immediately interested in the idea of using points to save on airfare. I read stories from bloggers who seemed to be living the dream. They’d fly internationally in business class or first class and pay for it with their travel points.

Since then, I’ve used travel credit cards to earn points and save big on travel expenses. Recently, I booked business-class airfare and saved over $4,000 thanks to my travel points. To demonstrate how you can do the same, I’m going to explain exactly how I did it.

How travel points saved me over $4,000

My wife and I are planning to spend the summer in Europe, starting in the South of France. To figure out how we’d get there, I used Google Flights to check out options from Colombia (where we live) to Montpellier.

I quickly found that, as you might expect, Air France was our best airline option. It had the most direct flight route and the shortest travel time overall, with service from Bogota to Paris, and then to Montpellier.

Flights weren’t cheap, which was no surprise. The average airfare to Europe this summer is $1,167, according to Hopper. And I wanted to book business class tickets, so it was even more expensive. Business-class tickets were $2,325 per passenger at the time, for a total cost of $4,650.

The other option was to book with miles at 83,500 miles per passenger. For two passengers, the total cost was 167,000 miles plus $508.60 in taxes and fees.

Now, I didn’t have 167,000 miles lying around. But I did have plenty of credit card points that I could transfer to Flying Blue, the joint frequent flyer program for Air France, KLM, and several other airlines. Fortunately, points from most of the major credit card rewards programs are transferable to Flying Blue. So, I did the following:

Logged in to my account for my credit card rewards program.Selected the “Transfer to Travel Partners” option.Transferred 167,000 travel points to my Flying Blue account.Used those 167,000 miles to book the airfare I wanted.

How to go from zero to free trips with travel rewards

For many people, the hardest part of using travel rewards is getting started. It can feel like you’re jumping into a complex world with all kinds of credit cards and rewards programs. Before you can start saving money this way, you need to find a travel credit card, earn points, and figure out how to use them.

None of this is that difficult; it just takes a little time. Here’s a step-by-step look at what to do.

Choose a travel credit card

First, you’re going to need at least one travel credit card. I recommend a card in one of the major credit card rewards programs:

Chase Ultimate RewardsAmerican Express Membership RewardsCapital One Venture RewardsCiti ThankYou Rewards

The reason cards in these programs are a good choice is because they earn transferable points. You can transfer your points to any airline or hotel partnered with that card issuer. That’s how I was able to turn my points into miles that I could use with Air France.

Earn points

Travel cards usually have large sign-up bonuses. For example, a card may offer 60,000 bonus points for new cardholders who spend $4,000 in the first three months. Make sure to spend enough to earn the sign-up bonus, as this is one of the fastest ways to maximize your rewards.

In addition, use your travel card for all your bills and everyday expenses. Since you earn points on purchases, it makes sense to use your card for as many of your regular expenses as possible.

After you’ve had your card for at least six months or so, you may also want to consider opening another one. It’s important to be careful about how many credit cards you open, because you’ll have more to manage. But getting another travel card gives you the opportunity to earn another sign-up bonus.

Use your points to book a trip

Once you’ve accumulated enough points, see how you can use them for a travel booking. Research your redemption options to figure out the best way to save money with your points.

If you have a card with transferable points, transferring them to an airline is often a good option. Air travel bookings can help you save a lot of money, especially if you’re booking expensive airfare, such as business class or first class.

There’s definitely more of a learning curve to travel cards than there is to cash back credit cards. But if you travel often and you don’t mind taking the time, this type of credit card can significantly cut your costs.

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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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