Money Management

Even in 2023, we still don’t have equal pay for equal work. Keep reading to learn how pay transparency laws make it easier to even the playing field. 

Women have made incredible strides toward greater equality in our society, but one place where we continue to lag behind is pay equality. Pew Research reported that last year, women still earned an average of $0.82 for every $1 earned by men — not much of a change from 2002, when that figure was $0.80 per $1.

Unfortunately, it’s often the nature of women’s lives and employment experience that feeds the disparity, as it’s most often women who are expected to give up their careers (or put them on hold) to raise children and care for other family members. All of this results in women having less money saved for retirement and smaller checking account balances.

Some state legislatures are stepping up to the plate, however. Let’s take a look at where new pay transparency laws are in the works, as well as a few steps you can take to ensure you’re paid what you’re worth.

Pay transparency laws

Pay transparency is a crucial way to fight pay inequality, because when employers provide salary information to staff and job applicants, women can proceed from a place of knowing how much a particular position pays. I’m sure I’m not alone in applying for a job without a clue how much it pays, only to be disappointed when it turns out to be far less than I’d hoped.

Per the National Women’s Law Center (NWLC), eight states have already passed pay transparency laws, impacting 21 million women workers in these states. Those states include California, Colorado, Connecticut, Maryland, New York, Nevada, Rhode Island, and Washington.

Another 16 states (and Washington, D.C.) are considering pay transparency bills in their 2023 legislative sessions: Alaska, DC, Georgia, Hawaii, Illinois, Iowa, Kentucky, Maine, Massachusetts, Missouri, Montana, New Jersey, Oregon, South Dakota, Vermont, Virginia, and West Virginia. Almost 18.5 million of the workers in these states are women and stand to be positively impacted by pay transparency laws taking effect.

Luckily, we don’t have to wait for laws to be passed, as there are a few other things you can do today to help reduce pay inequality between men and women.

Other ways to even the playing field

If you want to help make pay more equitable between all workers doing the same job, try the following.

Talk about pay

Contrary to what your employer may have told you, you likely are allowed to discuss salaries with your colleagues, per the National Labor Relations Act. The National Labor Relations Board’s jurisdiction is detailed here. Talking about pay at work can give you the opportunity to find out that your colleague who was hired after you, has less education than you, and has the exact same job makes more than you. This can give you a position to negotiate with your manager for a raise — or potentially contact an employment lawyer if you think you have a broader discrimination case.

Research salary data before applying/interviewing for jobs

The internet is wonderful for all sorts of things, but when it comes to negotiating a job offer, it can be your best friend. Look up salary ranges for the role you’re pursuing, and don’t forget to check out both national averages as well as those for your local area. The more information you have when you start talking to an employer about a job offer, the more likely you’ll be to score an offer you’re happy with — or cheerfully turn down an offer that’s beneath you and your skills.

Improve your own money knowledge

If you’ve never taken a deep dive into your own finances, there’s no time like the present. Might I recommend the many and varied personal finance resources here at The Ascent? Getting a better handle on budgeting, saving for retirement, and even learning how mortgage loans work will improve your overall confidence, and trust me, you definitely want to be the kind of person who can’t be pushed around when it comes to finances.

If you want something done right, often, you ask a woman. Keep voting for politicians who advocate for pay equality and transparency, and take the above steps to ensure you’re advocating for yourself and your salary.

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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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Have Amazon Prime? Read on to see what pitfalls you should make every effort to avoid. 

Amazon Prime costs $14.99 a month, but if you’re willing to pay for a year of it at a time, you’ll spend $139 instead. And that fee may be more than worth it considering the many benefits you’ll get.

Still, it’s important to manage your Prime membership carefully. And that means avoiding these potential traps.

1. Ordering items to justify your membership

It’s not a great thing to pay for a service you don’t get good use out of, whether it’s Netflix, a gym membership, or a monthly beauty box subscription. The same holds true for Amazon Prime. You don’t need that extra credit card charge if you’re not getting much out of it.

But if that’s the case, you may want to consider canceling your Prime membership. What you don’t want to do is force yourself to place orders on Amazon for the express purpose of using your membership. That’s just silly.

2. Assuming you’ll always get two-day shipping

One of the main benefits of Amazon Prime is scoring free two-day shipping on purchases of any amount. But that doesn’t mean every single item you purchase on Amazon will be eligible for two-day shipping.

Some third-party merchants can’t ship orders out that quickly. And some even pass the cost of shipping onto customers — and those charges apply whether you’re a Prime member or not. Pay attention to shipping terms and charges before placing any given order so you’re not thrown for a loop.

Also, recognize that while many Amazon Prime orders are eligible for two-day shipping, sometimes, things happen. Weather delays and staffing shortages could make it so an order that’s supposed to arrive on a Tuesday comes on Thursday instead. If you’re on a tight deadline, don’t assume that Prime will always come to the rescue.

3. Assuming every item is eligible for return

Many Amazon items are eligible for free shipping as well as free returns, but that’s not always the case. So before you place an order, read the fine print. If it’s a new item you’re taking a chance on, you may want to head to a store rather than get stuck in a situation where you can’t get a refund or where you have to pay a lot of money to send an item back.

Also, while many Amazon Prime orders are eligible for free returns, there’s a limited window for getting your money back. That’s something you should also pay attention to.

Amazon’s Try Before You Buy program, for example, gives you seven days to sample clothing and footwear before deciding whether to keep your items or send them back. If you don’t act quickly enough, you might have to pay for those purchases even if you decide you don’t want them.

Amazon Prime is a great program that many consumers feel is worth the money. But that doesn’t mean you don’t need to be careful when utilizing it. At a time when life has gotten so expensive and so many people are raiding their savings accounts just to stay afloat, you can’t afford to waste or lose money due to these or any other Prime-related blunders.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon.com and Netflix. The Motley Fool has positions in and recommends Amazon.com and Netflix. The Motley Fool has a disclosure policy.

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A writer has a car that’s 16 years old, and she’s even put money into it pretty recently. Read on to see why. 

The summer of 2020 was a tough one for my family for several reasons. For one thing, summer camp had been canceled due to COVID-19, leaving my kids to attend Camp Backyard while my husband and I held down our jobs. Plus, there was the whole worrying about catching COVID at the supermarket thing to deal with, which wasn’t fun for anyone.

Adding to our not-so-awesome summer was the fact that the battery on our 2007 Prius decided to give out on us. The cost of a typical car battery is $100 to $200, according to J.D. Power. But this wasn’t any old battery. It was a battery for a hybrid car. And so it didn’t come as a shock when we were quoted $1,500 for a replacement battery.

At first, we weren’t sure if we should spend the money. After all, the car was already 13 years old, and we couldn’t be sure it would last much longer. But in the end, we spent the money, and it wound up being a really savvy choice.

When the numbers make sense

Bloomberg reports that the average new car payment these days is $717 a month. Back in the summer of 2020, we were quoted monthly car payments in the $500 range for the models we were interested in. (Remember, back then, auto loan rates weren’t what they are today.)

When we ran the numbers, we realized that replacing the Prius battery made sense. We were looking at a $1,500 outlay, and we figured that if the car lasted three months after putting a new battery in, we’d break even by virtue of not making car payments for three months. If the Prius lasted longer than three months, we’d come out ahead.

Well, fast forward to May 2023, and lo and behold, the Prius is still hanging on. Granted, it’s pretty much on its way out, and the not-so-great thing is that we probably have to replace it at some point in the next six months. That means we’re going to be looking at even higher prices than we were back in 2020.

But if the Prius lasts through the summer, it means we’ll have saved ourselves about $18,000 ($500 monthly payments x 36 months). And that’s savings we can use to offset the costs we’ll incur when we replace it.

Our old car likely saved us money on auto insurance, too

Putting money into our Prius and keeping it most likely made it so we were spending less on auto insurance these past three years. Car insurance companies take different factors into account when setting premium rates, and one factor is the value of a car and its components.

Because the Prius isn’t worth a lot of money, it doesn’t cost us a lot to insure. Once we have to replace it, we can bank on our auto insurance rates going up. That’s something else we’re going to have to save for, but at least we know to anticipate it.

All told, I’m ready to move on from the Prius. As you might imagine, certain problems tend to arise when you have a car that’s practically old enough to vote. But I am glad we put that $1,500 into the car back in 2020, because we managed to extend the life of the Prius longer than originally expected.

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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 might get a higher interest rate with a CD than a savings account, but is it worth tying your money up? Read on to learn more. 

The Federal Reserve has been raising interest rates for over a year in an attempt to slow the pace of inflation. That’s been bad news for borrowers, as it’s driven the cost of everything from personal loans to auto loans to home equity loans upward. But it’s been beneficial to savers with money in the bank.

These days, savings accounts are paying quite nicely. You might earn an interest rate of around 4% in a high-yield savings account with no minimum deposit requirement, or a small minimum in the ballpark of $100.

But if you want an even higher interest rate on your money, you may be tempted to open a certificate of deposit, or CD. With a CD, you might earn upward of 4% and maybe closer to 5%. Granted, to snag these rates, you may need to meet a deposit minimum requirement of $1,000 to $2,500, depending on your bank, but in some cases, you can get away with less.

So should you put money into a CD and tie it up for a period of time? Or are you better off with a savings account? It depends on what your money is for.

Don’t put emergency savings into a CD

It’s always important to have money set aside specifically for emergencies — things like home repairs or medical bills you can’t always anticipate. The money that’s supposed to serve as your emergency fund should not sit in a CD. That’s because CDs don’t usually let you withdraw funds — you either have to leave your entire CD alone or cash out your entire balance early in a pinch. And if you cash out early, there could be steep penalties.

Now, the extent to which you’ll be penalized for cashing out a CD will depend on your specific bank. For example, the penalty for cashing out a 6-month or 1-year CD early could be three months’ worth of interest. It’s important to read the fine print before putting money into a CD.

Stick to a shorter CD term

You might think you’re okay to lock your money away in a CD, only for your needs to change. Plus, we don’t know whether CD rates will continue to rise from where they are today. And if you lock your money away in a two-year CD, you might lose out if rates increase in a few months.

That’s why if you’re going to open a CD, you’re probably best off sticking to a 6-month or 1-year term, and not longer. It’s also a good idea to ladder your CDs so you have money coming due at different times.

Instead of opening a single $5,000 CD and committing to a 1-year term, what you may want to do instead is open five different $1,000 CDs with a 1-year term, signing up for each one two to three months after the previous one. This way, you’ll have $1,000 freeing up every two to three months.

CDs may be more risky than a savings account because you’re committing to leaving your money where it is for a certain amount of time, and you’re also locked into the same interest rate. You can minimize the risks involved by not putting your emergency fund into a CD, sticking to short-term options, and laddering CDs rather than opening just one.

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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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Want to pump more money into your IRA? Read on to see how. 

The amount of money you’re allowed to contribute to an IRA account can change from one year to the next. Right now, if you’re under the age of 50, you can put up to $6,500 into an IRA per year. If you’re 50 or over, that limit increases to $7,500.

But what if you’re not getting anywhere close to maxing out your IRA contributions? Maybe you’ve been putting $100 a month into your IRA when clearly, you have the potential to be contributing a lot more.

First, let’s get one thing out of the way. Saving any amount of money in your IRA is a good thing. It means you’re doing your part to set yourself up with income for retirement. And smaller IRA contributions can go a long way over time, especially if you invest your money in assets that lend to solid growth.

But still, you may want to contribute more to your IRA than what you’re currently putting in. If so, here are some steps you can take to make that possible.

Step 1: Get on a budget

Following a budget means getting a better handle on your finances. And so if you’re eager to carve out more money for your IRA, you’ll want to know exactly where your paycheck is going month after month.

Spend a little time setting up a budget so you can get at that information, and then identify spending categories where you can cut back to free up more money. You may decide, for example, that if you’re currently spending $200 a month on restaurant meals, you’ll scale back to $100 and put an extra $100 a month into your IRA.

Step 2: Boost your income with a side hustle

Your essential bills may not leave you with much wiggle room to boost your IRA contributions. If that’s the case, look at getting a side job. Any extra income you bring in can be used to fund your IRA, whether it’s $50 a week or even $50 here and there that you earn from random gigs.

Step 3: Put your contributions on autopilot

One great thing about 401(k) plans is that they’re funded via payroll deductions. When you sign up for a 401(k), your contributions are taken out of your paychecks automatically before you get a chance to spend that money.

If you want to boost your IRA contributions, arrange for something similar. Most IRAs will allow you to set up an automatic transfer from your checking account each month. That way, you’ll have money landing in your IRA before you have an opportunity to touch it.

The more money you’re able to put into your IRA, the more money you stand to retire with. It’s that simple. So if you’re not so happy with your current contribution rate, push yourself to save more. It might take a lot of work, but you’ll be grateful for having made the effort once your career comes to an end and you have to rely on your savings to cover your living 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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Want to grow your savings this month? Read on to see how. 

At this point, a lot of people are still in the process of recovering financially from the pandemic and coping with inflation. If your savings account could use work at this stage of the game, you’re no doubt aware that doing things like slashing expenses and getting a side job will probably help you boost your cash reserves. But those aren’t easy things to do.

Cutting expenses drastically could impact your quality of life. And working a side hustle could mean sacrificing many hours of downtime and sleep on a weekly basis. Rather than go with those options, you might instead want to fall back on these tactics for giving your savings a nice lift.

1. Do a subscription audit

Are you paying for services or subscriptions you don’t really need or use? If so, you’re throwing money away at a time when you can no doubt use more of it.

A report published by C&R Research last year found that 42% of consumers had forgotten about a recurring monthly subscription they were still paying for. And so if you want to save money this month, conduct your own subscription audit.

Comb through your credit card statements and examine every line item to see what exactly you’re paying for. If you spot services you can do without or haven’t utilized in months, cancel them immediately.

2. Take advantage of spring weather

It costs money to stay entertained. But now that the weather is getting nicer, you have a prime opportunity to seek out free entertainment rather than spend a lot of money keeping busy.

You can go hiking on a Saturday afternoon rather than pay for movie theater tickets. Or, you can encourage friends to join you for potluck picnics in the park instead of brunch at an expensive restaurant.

Also, if you live in a walkable area, it pays to get to more places on foot and drive less frequently — which is more feasible when you don’t have to bundle up in a winter coat. The less often you get in your car, the less you’ll spend on gas.

3. Do your own spring maintenance

May is a popular time to engage in exterior home maintenance, whether it’s repainting a deck or fence, trimming shrubs, or planting flowers. But if you pay to outsource every single springtime task that needs to get done, you might end up spending a lot of money to get your home into shape.

If you’re eager to boost your savings, make a list of the home maintenance items on your list and see which ones are reasonable to tackle yourself from a time and safety perspective. It may be worth it, for example, to pay someone to clean your gutters since that particular task can be dangerous. But if you’re capable of painting your own fence, doing so could make that job cost less, giving you the option to bank the difference.

Boosting your savings could give you more peace of mind. Use these tips to increase your savings this month so you can feel better about your finances.

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

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