Money Management

Curious to see what the typical driver pays for car insurance? Read on to find out. 

Owning a car can be an expensive prospect. Not only do you have to potentially tackle monthly auto loan payments, but you need to cover the cost of car insurance.

The average annual cost of auto insurance in the U.S. for drivers aged 30 to 45 is $1,638, according to Policygenius. But you may be looking at a very different number.

What determines your auto insurance rates?

There are different factors car insurance companies use to determine what to charge you. These include:

Where you live: If you live in a city with a higher crime rate, or one that’s densely populated, you might face a higher rate than a driver living in a quiet suburb.Your driving record: If you’re a fairly new driver, or if you have a number of moving violations on your driving record, you might pay more for car insurance than someone with more experience and a clean record.The type of car you drive: It stands to reason that it will cost more to repair or replace a $70,000 car than a $30,000 car, so the more expensive your vehicle is, the more you might pay for auto insurance.

How to lower the cost of auto insurance

Auto insurance can eat up a nice chunk of your income, so you may want to do what you can to lower your costs. And there are a few ways to go about that.

First, consider buying a less expensive vehicle to begin with. Not only will this keep your transportation costs down in general, but you’re likely to be quoted a lower rate for car insurance if your vehicle isn’t loaded with high-end features that might require more expensive repairs.

Secondly, drive carefully. Granted, in some cases, you can get into a car accident through no fault of your own. But you can make a point to not speed or weave in and out of traffic. If you’re caught doing these things and are ticketed for them, it could lead to more expensive premiums.

Finally, if you own a home, look into bundling your auto insurance policy with your homeowners insurance policy. If you use the same company for both, you might get a discount that makes each policy less expensive.

That said, bundling won’t always be your cheapest option. So while it’s a good thing to look into, you’ll also want to contact different car insurance companies and shop around for rate quotes. This is a smart thing to do whether you’re applying for auto insurance for the first time, or whether you’ve had a policy in place for years and are looking to reduce your costs.

Be realistic about the cost of vehicle ownership

If you’re going to own a car, you need to have a good sense of what that entails financially. Not only must you account for the cost of your car payments and auto insurance premiums, but you’ll also need to factor in regular maintenance and repairs.

If you live in an area where it’s possible to get around without a car, you may want to consider doing so for as long as you can. The amount of savings you might reap could be huge. And that way, you can bank that cash so that if your circumstances change, you’re able to swing the cost of vehicle ownership more easily.

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A personal loan can be an affordable way to borrow money — but not always. Read on to see why you might run into some issues if you apply for a personal loan this year. 

When you need money, you’ll often hear that a personal loan can be an affordable way to borrow. And you’ll very often be privy to a lower interest rate on a personal loan than you will on a credit card.

But if you apply for a personal loan in 2023, there’s a big trap you might fall into. And this holds true regardless of what your credit score looks like.

Don’t be shocked by higher rates

Inflation has been a problem for consumers for well over a year. And it’s forced many people to rack up debt and raid their savings just to do basic things like pay rent and put food on the table.

The Federal Reserve, meanwhile, has been on a mission to slow the pace of inflation. To achieve that, it’s been implementing interest rate hikes since early 2022.

Last year, the Fed raised interest rates seven times. And it’s already raised rates twice this year for a total of nine hikes since March 2022.

The Fed does not set consumer borrowing rates directly. The rate you’ll pay to take out a personal loan, for example, will be determined by the lender you apply with. Rather, the Fed oversees the federal funds rate, which is the rate that banks charge one another for short-term borrowing purposes.

But when the Fed raises its federal funds rate, it tends to indirectly drive up the cost of borrowing on a whole. And so if you apply for a personal loan this year, you may find that the rate you’re offered is higher than what you’d like it to be. And unfortunately, this might hold true even if your credit score is excellent.

Personal loans are unsecured, so generally, the higher your credit score, the more likely you are to snag a competitive interest rate on one. But even if your credit score is an 820 out of 850 (which is unquestionably excellent), you might find that the personal loan rate you’re presented with is anything but affordable. That’s just a symptom of today’s borrowing environment.

It could pay to put off your personal loan application

If your need to borrow money isn’t particularly urgent, then you may want to hold off on applying for a personal loan until borrowing rates come down on a whole. That could mean waiting until 2024 or even beyond. But doing so might save you a lot of money on interest.

If you are going to take out a personal loan this year, take your time shopping around for one. You may find that although rates are generally up, there’s one lender whose offer is far more competitive than the others you’re presented with.

At the same time, if your credit score needs work, aim to boost it before moving forward with a personal loan application. Raising your credit score by 40 or 50 points could make a big difference in the interest rate you qualify for — and that could, in turn, result in much lower and more affordable monthly loan payments.

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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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Kirkland Signature is Costco’s popular private label brand. Keep reading for one writer’s favorite Kirkland products. 

The Kirkland Signature brand is a household name when it comes to shopping at Costco. The private label of the warehouse retailer is known for its quality products at low prices. Since launching its popular Kirkland Signature brand in 1995, the number of items has grown from 30 to 350. With so many products to choose from, it can be hard to know which one is right for you. Here are my favorite Kirkland Signature products that you can find at your local Costco.

1. Kirkland Signature Jelly Belly

Believe it or not, many Kirkland products are made by brand name companies. Kirkland’s jelly beans are made by Jelly Belly, the premium candy company that has been making jelly beans for over 100 years. You get high quality beans at a low cost, and with 49 different flavors, there is something for everyone!

2. Kirkland Signature trail mix

This trail mix is perfect for snacking on the go or just having a snack in between meals. It comes in a large bag, so it will last quite a while. Kirkland offers a variety of different kinds of trail mix, offering both delicious and healthy options.

3. Kirkland chicken wings

These chicken wings are perfect for any gathering or party. They come frozen, which makes them easy to store, and they taste great! They are made with all-natural ingredients and are free of antibiotics and hormones. I make a simple homemade buffalo sauce and after popping the wings in an air fryer, they taste better than what you’d order from a restaurant!

4. Kirkland supreme cauliflower crust pizza

I love pizza, but it isn’t helping my waistline. If you’re looking for a healthier alternative to regular pizza, this is the perfect choice. The crust is made from cauliflower instead of flour and it tastes just as good as regular pizza, without all the extra carbs!

5. Kirkland rotisserie chicken

This rotisserie chicken is one of my favorite items at Costco. It’s juicy, flavorful, and ready to eat in minutes! Plus, you can use it in so many recipes, like sandwiches or salads. Costco hasn’t changed the prices of its popular chicken since 2008 and at $4.99, it is almost half the cost of a similar one at Whole Foods.

6. Kirkland hot dog and soda combo

Costco sells over 100 million hot dogs a year! It’s not surprising since the delicious hot dog and soda combo sells for only $1.50. Costco hasn’t changed the price since 1985, and even with high inflation, Costco is committed to keeping its low price. Why? Like their rotisserie chicken, it’s how they get you to shop at one of their 584 locations in the U.S. It’s perfect if you need something quick while shopping at Costco or if you want a cheap and easy meal.

7. Kirkland batteries

If you buy batteries frequently, then you know how expensive they can be. Luckily, Kirkland offers some really high-quality batteries that last longer than most other brands out there. Plus, they offer a variety of battery types for your different devices.

8. Kirkland bacon

Bacon lovers rejoice! You can now get your favorite food item in bulk thanks to Kirkland bacon. It comes pre-cooked, so all you have to do is heat it up before enjoying. Plus, per Consumer Reports, Costco’s Kirkland bacon was rated No. 1 in its taste test.

9. Kirkland household products

Costco’s No. 1 selling item is toilet paper. Costco also has high quality paper towels, laundry and dishwasher detergent, soap, and any type of kitchen or household products you may need.

Overall, Kirkland offers quality items at an affordable price, which makes them an excellent choice for anyone on a budget who shops at Costco. From snacks like trail mix or rotisserie chicken to batteries or bacon, these products offer something for everyone no matter what your needs may be. Best of all, these high-quality products don’t break the bank. So the next time you’re shopping at Costco, don’t forget to check out these Kirkland brand products — they won’t disappoint!

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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 Costco Wholesale. The Motley Fool has a disclosure policy.

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Working with a financial advisor could be extremely beneficial. But read on to see what red flag to look out for. 

You may have different financial goals you’re looking to meet, like buying a home, putting your kids through college, and saving for retirement. And juggling and meeting those goals might seem daunting.

The good news is that you don’t have to go it alone. That’s what financial advisors are for.

The role of a financial advisor is to listen to your objections and help you manage and invest your money in a manner that lends to them. But if you’re going to hire a financial advisor, it’s important to find the right person for the job. And if your advisor isn’t earning their fee, then it’s time to move on.

Don’t pay for nothing

In a recent podcast episode, financial guru Suze Orman fielded a question from a listener whose financial advisor took their money, dumped it into long-term mutual funds, and called it a day. That, says Orman, is bad news.

It’s not that mutual funds can’t or shouldn’t be a part of your investing strategy. But mutual funds hire managers whose job is to choose investments. And as such, when you buy mutual fund shares, you’re commonly charged hefty fees for that privilege.

Meanwhile, when you hire a financial advisor, you’re also paying them a fee. But it doesn’t make sense to have all of your money in mutual funds, because that’s really the same thing as double-paying.

To put it another way, your financial advisor should be putting together a customized portfolio for you — not simply piggybacking off of the financial decisions a mutual fund manager is making. So if your financial advisor has simply put all of your cash into mutual funds, it’s a sign you may want to end that relationship and start working with someone else.

You should also know that while mutual funds can lend to a nice amount of diversification in your portfolio, there’s a much more cost-effective way to achieve that same goal — loading up on broad market ETFs, or exchange-traded funds. The major difference, though, is that with ETFs, you may be looking at paying a fraction of the fees a mutual fund will charge you.

That said, you also don’t want your financial advisor to simply load you up on ETFs. The reason? That’s something you’re more than capable of doing yourself.

All you need to do is open a brokerage account, choose some ETFs, and voila — you’re putting your money to work. And if you’re not sure which ETFs are appropriate for you, a good bet is generally S&P 500 ETFs, which aim to track and match the performance of the 500 largest publicly traded companies in the stock market.

Make sure your financial advisor is worth the fee

Financial advisors have to make money, so it’s not problematic that they charge fees. What is problematic is when your financial advisor charges you ongoing fees for basically doing nothing.

If you’ve stumbled into that type of relationship, aim to cut ties quickly. Otherwise, you might end up kicking yourself down the line.

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Trying to figure out what your emergency fund should look like? Steer clear of these pitfalls. 

A recent SecureSave survey found that 67% of Americans could not cover a $400 emergency expense with money in savings. And anyone in that boat risks racking up major credit card debt when a larger unplanned bill arises.

That’s why it’s so important to have a solid emergency fund — one with enough money to cover three full months of essential expenses at a minimum. And while you might think that calculating how much money you need for your emergency fund is an easy thing to do, these two mistakes might trip you up.

1. Forgetting about inflation

Inflation has been driving living costs upward for well over a year now. And we don’t know if inflation levels will rise or fall in the coming months.

But given the way living expenses have been rising, it’s a good idea to pad your emergency fund calculations a little to account for that. If you don’t, you might end up with an inadequate amount of money in your savings account.

So, let’s say you run the numbers and determine that your monthly bills come to $2,000. Inflation might drive those costs to $2,100 next month, and $2,200 the month after. Until we’re in a more settled place with regard to inflation, it’s best to take whatever number you come up with and inflate it yourself for the purpose of determining how much you need in emergency savings.

2. Forgetting about variable interest on your outstanding debt

A big monthly expense of yours might be the minimum credit card payment you have to make. But remember, credit card interest can be variable, resulting in higher monthly payments over time. And given that the Federal Reserve seems intent on raising interest rates this year to keep battling rampant inflation, it’s fair to assume that if you have an outstanding credit card balance you’re paying off, your monthly costs might rise at some point in 2023.

Get that number just right

Three months’ worth of essential bills is really the minimum amount of savings you should be aiming for in your emergency fund. And the logic is that if you were to lose your job, it might easily take three months to find a new one.

That’s why it’s important to be spot-on with your calculations. You don’t want to work hard to sock away $6,000 in emergency savings only to still end up with debt from a period of unemployment because you really needed $6,500.

That said, if you really want to buy yourself plenty of protection in the face of a layoff or widespread recession, aim for a six-month emergency fund. That gives you a very nice cushion to fall back on if life takes an unexpected turn. And it also gives you the option to not only cover a few months of bills in the event of a layoff, but also tackle other unwanted surprises, like home or vehicle repairs, that could pop up at that very same time.

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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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