Money Management

You may not realize how you’re setting yourself up for failure. 

Investing money is a great way to grow your cash into a larger sum and meet different goals, whether it’s putting your kids through college or retiring in a secure fashion. But while you might have the best of intentions when it comes to investing, you might also easily get led astray.

In a recent tweet, investing guru Graham Stephan quoted economist Benjamin Graham by saying, “The investor’s chief problem — and even his worst enemy — is likely to be himself.”

Stephan then went on to ask “How do you hold yourself accountable to stick to your investing plan?”

It’s a valid question. Many people tell themselves they’ll invest consistently, only to end up spending their money before it gets a chance to hit their retirement or brokerage account. If that’s a trap you’ve fallen into in the past, the solution could boil down to putting the process of saving and investing on autopilot.

Take human error and impulse spending out of the equation

Many investment accounts allow you to contribute funds automatically so it’s easier to stay on track. Taking advantage of this option could spell the difference between meeting your goals and falling short.

Let’s say you’ve been meaning to invest $200 a month in your brokerage account, only you keep finding other ways to spend your money before you get a chance to buy stocks with it. In that case, an easy solution could be to arrange for an automatic transfer from your checking account to your brokerage account every month — ideally, at the start of the month. That should remove the temptation to spend that money, since it won’t be accessible to you in your checking account any longer.

The same strategy can be applied to retirement savings. In fact, the great thing about employer-sponsored 401(k) plans is that they’re funded through payroll deductions. So if you commit to contributing $200 a month to your workplace 401(k), that $200 will be removed from your paycheck before it hits your bank account, thereby removing the temptation to spend it.

The good news is that most IRA plans offer an automatic savings option, too. So if you don’t have access to a 401(k) plan, you can arrange for your IRA to get funded automatically.

Don’t get in the way of your own goals

You’re only human. And while you may be very motivated to save and invest consistently, life might get in the way. If you make a point to automate transfers into a brokerage account or IRA, you’ll be more likely to stay on track and stick to your investing plan. And that could set the stage for a lot of long-term financial success.

That said, getting money into your account is only part of the equation. You’ll also need to make sure you stick to your investing strategy.

It’s easy to get thrown when market conditions aren’t favorable. So a good bet in that regard is to employ a strategy called dollar-cost averaging. With this tactic, you commit to investing a certain amount of money in specific assets on a regular basis.

Now, for you to be able to use this strategy, that money has to land in an account you invest in. But from there, you can also put your actual investments on autopilot so you don’t stray from your plans or get spooked by market turbulence.

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Some people seek alternative rental solutions as rental costs rise throughout the country. 

If you’re a remote worker or are self-employed, you may feel little desire to stay in the same place all the time. Instead of paying an expensive rental fee to be stuck in one home 24/7, you may want to explore other living solutions. A new service from Landing allows members to stay in furnished apartments throughout the United States for only $1,295 per month. If you don’t mind moving around frequently, this solution could be a win for your wallet and wandering soul.

Introducing Landing Standby

Landing is a membership-based service that enables renters to stay in furnished apartments throughout the United States without committing to a yearly lease. The standard membership costs $199 annually, and renters also pay a monthly rental fee. But there’s a new, more affordable service for those with greater flexibility.

The new service, Landing Standby, costs $1,295 a month and enables renters to book standby homes in many U.S. cities, except for properties in New York and California. The price includes everything, including utilities. But there’s a catch — Landing Standby members get a discounted rate by agreeing to be highly flexible. Your departure may come soon after moving in.

Landing Standby members are asked to move out of their home once a standard Landing member rents it. If your current rental gets booked by a standard member, you’ll need to choose a new available rental to move into and will be given three days to choose a new place to live. If you’re asked to move out, you won’t have to pay additional fees beyond the $1,295 monthly fee.

As a Landing Standby member, you can move when you want, too. Members must give three days’ notice and select a new home within that time. If you decide to move into a new home, you must pay a $150 cleaning fee before the new renter arrives. This service could be an excellent fit for a flexible person who likes to live in new places and wants to pay a lower rental price.

Keep your finances top of mind

If you’ve never liked to stay in one place for too long and have the flexibility to live and work anywhere, this may be a living solution that works well for you. But before you agree to this low-cost rental solution, there are some financial considerations you should make:

Storage costs: If you currently rent an apartment or own a home, you’ll want to consider what you plan to do with your belongings. If you need to rent a storage unit to store your belongings, that will be an extra monthly cost that will impact your personal finances.Moving costs: If you plan to hop around one city or state, it could be relatively affordable to move between apartments regularly. But if you plan to move to different states or want to move around often, it likely won’t be as cheap to move between properties. You’ll want to consider the cost of moving your belongings and yourself.Living costs: It’s also worthwhile to research the cost of living before moving to a new area. As you explore rental options, remember that living costs vary significantly throughout the country. $1,295 may be a low rental price, but make sure you can afford to live comfortably in your new city, so you don’t drain your checking account buying groceries, toiletries, and other living essentials.

Cheaper rent may be possible…if you’re flexible

As more Americans look for housing solutions beyond the standard 12-month lease, it’s encouraging to see more companies offering alternative options. But before putting most of your belongings in a storage unit, ensure you’re ready to commit to this unique living situation.

Landing Standby may not be the best fit if you don’t do well with change or don’t want to risk moving around often. However, if you’re an adventurer who craves new experiences, this membership may work out well for you and it could be a great way to save on rental costs.

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Here’s why Lebron James pays taxes in 18 states! 

This past December, baseball slugger Aaron Judge signed a nine-year deal worth $360 million to stay with the Yankees. This is one of the biggest contracts of all time. Others include Lionel Messi’s $673.9 million, four-year contract with FC Barcelona and Patrick Mahomes’ $503 million, 10-year contract with the Kansas City Chiefs. As a result of these big pay days, professional athletes often face unique tax challenges. Here’s a look at how taxes are calculated for professional athletes.

Taxes on player salaries and bonuses

The largest source of income for most professional athletes is their salary from their team or league. Most teams will withhold taxes from an athlete’s paycheck throughout the year. These withheld funds are sent directly to the IRS and applied toward an athlete’s total tax bill for the year. Professional athletes may also receive bonuses from their team or league, in addition to their salary. These bonuses are taxed as regular income, and any withholding will be applied towards an athlete’s total tax bill for the year as well.

Endorsements and other income streams

Professional athletes often receive additional income from endorsements or other sources. This money is treated differently than salary and bonuses when it comes to taxes because it is considered self-employment income by the IRS. Self-employment income is subject to self-employment taxes, which includes both Social Security and Medicare taxes that must be paid by the athlete themselves (rather than having them withheld).

Depending on where an athlete lives, they may also owe state and local taxes on this type of income. Another complication athletes need to take into account is if their endorsement is not paid in cash but in “swag,” like watches, cars, and designer clothing. Athletes are still liable for paying taxes on those items and must have enough cash saved to pay it.

The jock tax

While the average taxpayer will typically only have to worry about federal and state taxes, athletes have an additional tax to pay. Athletes are subject to what’s known as the “jock tax,” which is when they must file tax returns in all of the jurisdictions where they play that have an income tax. This is one way states try to boost their revenues.

On average, an NFL player will file between eight to 12 non-resident state tax returns, NBA players file 16 to 20, and MLB players 20 to 25. Thanks to the jock tax, one of the most successful basketball players, LeBron James, pays income taxes in 18 states. Visiting professional teams can potentially pay thousands of dollars in state tax revenue for every day they spend in that state.

It’s important to note that the jock tax is not limited to professional sports; entertainers and even certain corporate executives may also be subject to a jock tax if they’re traveling for their job. Ultimately, it is an additional expense that athletes have to account for every time they travel outside their designated jurisdiction in order to perform their job duties.

International taxes

World-traveling athletes like golfers and tennis stars have an additional layer of taxes to navigate. Not only must they consider the tax laws of their home country and country of residence, but also the countries where they compete. Add to that the tax treaties (if there are any), and it’s easy to see why tax season can feel like a huge ordeal for these international stars.

Tax planning and preparation

It can be difficult for professional athletes to keep track of all this and pay all applicable taxes in a timely manner. Professional athletes should consider working with a tax professional who specializes in sports finance to ensure that all relevant taxes are paid correctly and on time each year. They can also help identify potential tax savings opportunities and ways to minimize taxes without being on the IRS’s radar.

Navigating taxes can be a tricky process for professional athletes due to their multiple sources of income, including player salaries, bonuses, and endorsements. Athletes also have to worry about additional taxes, such as the jock tax and international taxes. It’s a good idea for professional athletes to work with a financial planner or accountant who specializes in sports finance.

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You may be overpaying for your mobile phone service without realizing it. 

Many of us seek additional ways to save money on everyday expenses. Even a few dollars saved each month can make a difference and feel like a win for your wallet. If you pay for cellphone service, you may be missing out on an easy way to get a discount. Here’s how making a quick change to how you pay your cellphone bill could save you some cash.

Enroll in autopay to save — and eliminate forgetfulness

If you’re unhappy with the cost of your cellphone service, one simple change could help you save. Many cellphone service providers offer a small discount to customers who enroll in autopay and paperless billing. How much you’ll save depends on your carrier and the plan type, but you can expect to save anywhere from $5 to $10 per line if the option is available.

Here are a few carriers that offer discounts like this:

AT&T: Many plans offer a $10 discount per line for customers who enroll in autopay and paperless billing.T-Mobile: Customers can get a $5 per-line credit by enrolling in autopay and paperless billing.Verizon: Depending on the plan, autopay and paperless billing discounts range from $5 to $10 per line or account.

If you have service through one of these carriers or are thinking about switching soon, make sure you don’t miss out on the chance to get a discount on your bill by using this payment strategy. If you’re unsure which plans qualify for this kind of discount, reach out to your carrier.

This could also be a win if you sometimes forget to pay your bills on time. Late or missed payments can result in a negative mark on your credit report and could lower your credit score. Enabling automatic payments through your carrier could help you stay on track with your bills.

The savings can add up

While the individual discounts mentioned above may not sound like a lot, the savings can add up over time. Let’s imagine you have a plan with one cellphone line and get a discount of $10 each month by enrolling in autopay and paperless billing. That’s a total savings of $120 each year.

People with multi-line plans could save even more. Suppose you have a plan with two lines and get a $10 discount per line. That’s a savings of $240 annually. Saving $5 or $10 per month may not sound like much, but getting even a small discount could improve your personal finances.

You don’t have to continue paying an outrageous price to use your cellphone. Luckily, an autopay and paperless discount isn’t the only way to save money on the cost of cellphone service. If you want to save more money, here are a few other ways to lower your cellphone bill.

Review available payment methods

Before setting up autopay, be sure to review the payment method options. Some carriers prohibit auto payment by credit card. Instead, you may be required to pay your bill with a debit card or make a payment through your checking account to qualify for the discount. Keep this in mind if you’ve been paying your bills with a rewards credit card to earn rewards.

Make your money go further

For the average person, life is expensive. It can be worthwhile to pay attention to deals and discounts that can help you stretch your money further. Ensure you use all available mobile phone service discounts to avoid wasting money.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Don’t fall for these tax-related scams. 

With tax season in full swing, it’s essential that you take extra precautions to keep your identity safe. While filing taxes is an important step in taking care of your finances, it also opens up an opportunity for identity theft if you’re not careful. Here are five tips for avoiding identity theft during the tax season.

1. Protect your personal information

Any documents that contain personal information should be protected or shredded after use or when no longer needed. Treat your personal information like it is cash. Fraudsters take your tax documents, such as a W-2, and file a return to ensure your refund money ends up in their account. That is why you want to protect your sensitive documents. This includes bank statements, credit card bills, tax forms, and other documents with sensitive information.

Identity thieves will also try to steal your mail. It is an easy way to get your address and your account numbers. If you don’t need your documents, shredding them makes it much harder for someone to gain access to your personal information and use it for criminal purposes. If you don’t have a shredder, consider using a professional document destruction service instead.

2. Use strong passwords

Make sure all of your passwords are strong and secure by avoiding common words or phrases and combining letters, numbers, and symbols in unique ways. Hackers can easily gain access to accounts with weak passwords, so make sure yours are complex enough that they would be difficult to guess or crack.

It is also recommended that you change your passwords every few months to ensure maximum security against potential hackers or identity thieves. Additionally, it’s a good idea to use a different password for each account so that if one account gets compromised, the others will still remain secure. Never share your passwords with anyone else unless absolutely necessary.

3. Be wary of phishing emails

Phishing emails are messages sent by hackers pretending to be legitimate companies in order to extract personal information from unsuspecting victims. These emails often contain links leading to malicious websites where they can steal sensitive data such as credit card numbers or Social Security numbers.

If something looks suspicious in an email, do not click on any links or download any attachments; instead, delete the message immediately and contact the company directly if necessary. Be especially vigilant during tax season as this is when many phishing attempts occur due to people needing help with their taxes or refunds.

4. Protect against computer spam and viruses

Malware is malicious software designed to steal financial information from unsuspecting victims. It often arrives via email or on a compromised website, so it’s important to make sure you have up-to-date antivirus software installed on all of your devices and scan regularly for new threats. Additionally, don’t open emails or attachments from unknown sources, as they could contain malware or other malicious links.

5. Avoid these common taxpayer scams

Scammers are always looking for new ways to get your personal information and steal your money or identity during tax season. Be wary of phone calls, emails, or text messages claiming to be from the IRS asking for money or personal information — the IRS will never contact you in these ways unless you have already contacted them first! One common scam is someone will pretend to work for the IRS, claiming you owe back taxes and that an arrest warrant will be issued unless you pay the amount. If you receive a call like this, hang up immediately and report it to the IRS.

Protecting yourself from identity theft during tax season is essential for keeping your finances secure and free from fraudsters looking to steal your money. One of the best ways to protect yourself is by being aware of potential threats and taking steps to mitigate them before they become a problem. Make sure you update your antivirus software regularly, avoid clicking on suspicious links in emails, and be extremely careful when making payments over the phone or online. Never provide personal information over the phone unless you initiate contact first. By following these simple steps, taxpayers can rest assured that their data will remain secure this tax season!

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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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