Money Management

Cats beat dogs at the insurance lotto. 

Cats aren’t just cuddleable, squishy flufferkins with toe beans. They’re family. Like all family members, they may fall prone to health issues. A solid pet insurance policy can help pay for treatment.

Naturally, cats are superior to dogs…in that they’re cheaper to insure. The most expensive dog breeds to insure cost more than twice as much to cover than the most expensive cat breeds. That’s because cats are smaller and visit the vets less often, on average. Cats are awesome like that.

That said, some purebred cats command higher monthly premiums than their fellow felines. According to Pawlicy data, here are five of the most expensive cat breeds to insure.

1. Sphynx

Turns out, these iconic patchy-furred kitties are some of the most expensive to insure. The Sphynx lacks the body hair to protect them from skin conditions like excess oil production, which can lead to infection. Their patchy fur can leave them vulnerable to cold temperatures. Even taking them outside is risky business.

Ear infections, heart disease, and muscle atrophy are common Sphynx health conditions. But it’s not all bad. Some of the most common conditions are preventable by keeping the breed clean and warm. Others can be treated at a clinic. That said, it will weigh on pet owners’ wallets.

2. Himalayan

Long-haired and short-faced, the Himalayan is a gorgeous breed. But they are predisposed to specific genetic issues. For one thing, their unique facial structure can lead to breathing issues like asthma or bronchitis. They’re also susceptible to eye and dental problems. Because of their long hair, they might be unable to cough up furballs, which could require pricey treatment.

3. Persian

The smushy-faced Persian is as mellow as they are expensive to insure. About 1 in 3 develop Polycystic Kidney Disease (PKD), an incurable kidney disease that can only be managed with treatments like antibiotics, pain medicine, etc. They are also susceptible to other health issues, like blindness, that make insurance more expensive.

4. British Shorthair

The breed that inspired the Cheshire cat from Alice and Wonderland, the British Shorthair, is stocky and long-lived. They may be prone to kidney issues or congenital heart problems, which require treatment at the vet. But generally, they’re healthy cats.

5. Maine Coon

Big and hardy cats, Maine Coons have been around for a while. Though generally considered a healthy breed, they’re vulnerable to common conditions like obesity, which affects around 1 in 3 cats and can lead to diabetes. Their size makes them prone to hip dysplasia, a common condition among large pets. Larger animals typically demand higher premiums.

Affordable pet insurance

Affordable pet insurance is about more than adopting the healthiest cats you can find (though that certainly helps). Pet insurance companies consider your cat’s breed, age, and location. The sooner you purchase pet insurance for cats, the lower your monthly premiums will be.

Once you’ve acquired your pet, these are non-negotiable. There’s no de-aging an old cat! But you can still limit how much you pay for pet insurance.

Raise your deductible. You’ll pay more for treatments, but your monthly premiums will shrink. Should you raise your deductible, be sure you can foot unexpected vet bills.Switch to an annual plan. You’ll have less freedom to swap insurers, but switching to an annual plan may lower your monthly premiums.Bundle. Many insurers offer multi-pet discounts. There’s little downside to bundling.

Each option comes with pros and cons. On average, cat insurance costs $24/month for accident and illness coverage. Consider how much you’re willing to shell out when your cat gets sick, and use that number to estimate how much you’d be willing to pay for insurance.

One more thing to remember: the shorter your cat’s lifespan, the less you’ll pay in lifetime premiums. But if you consider yourself a serial cat owner (can’t live without them!), lifespan has little financial impact since you’re never without a fluffy, thread-batting furball.

New pet owners may want to consider setting up a pet savings account for emergencies. No cat owner wants to choose between healing their sick cat and paying their mortgage bill. A high-yield savings account is a solid place to store funds (and earn a little interest).

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Could cutting spending be as simple as making this change with your phone? 

Most people only have so much income to go around. This means when you spend too much of it, you don’t have enough left to put into a savings account or brokerage firm in order to accomplish your financial objectives.

Cutting spending can make it so you’re able to do things with your money that you need to, like save up a down payment for a house or for retirement. But it can be difficult to make sustainable changes that allow you to reduce your outflows.

To that end, finance expert Dave Ramsey offers some suggestions on how to spend less — and one particular tip can be especially useful for many people because it’s so simple to implement and it can make a lasting difference. Here’s what it is.

This Dave Ramsey tip can help you cut spending

If you want a quick, easy way to reduce your spending, Ramsey says that doing something as simple as deleting some apps could do the trick.

“Take shopping apps off your phone,” Ramsey suggests. “Don’t freak out. We aren’t saying you should never ever shop online. But when you take those store apps off your phone, you build a barrier between you and mindless scroll-shopping.”

As Ramsey explained, these apps are designed to make purchasing items effortless. Often, you don’t even have to sign into your account when you open the app, much less enter your credit card and shipping details. The app is sitting right there on your phone or mobile device and once you open it up, you can end up making a purchase without ever stopping to pause even for a second to consider whether doing so is actually worth it.

“With those apps, your thumbs can just tap-tap-tap things you don’t really even need into your cart and into your mailbox,” Ramsey explains. “But you’ll think twice before getting on the laptop to buy that new sweater if you’ve got to get up off the couch to make it happen.”

More mindful purchasing can make all the difference

Ramsey’s tip is a great one, because it’s not complicated and it really is likely to affect how much you end up buying. It’s kind of a similar concept to removing your stored credit card from your internet browser or online accounts.

Removing the apps, or removing your payment information, slows down your buying process and creates a barrier so you have to stop and ask yourself if an item is worth it. Just taking a few extra seconds and a few extra steps can be enough to cause you to reconsider a purchase before it’s too late and you end up buying something you don’t really need in the end.

Now, you may decide that you do want to follow through and buy whatever it was that caught your attention. But by doing so mindfully and overcoming some extra hurdles to do it, you’re more likely not to end up regretting your impulse purchase since it won’t really be an impulse buy anymore.

You have nothing to lose by deleting your shopping apps and giving Ramsey’s advice a try, so take them off your phone today. If you find yourself annoyed by not having them there, you can always add them back. But it’s much more likely you’ll be grateful to have the added cash in your bank account that comes from more mindful spending and you’ll decide to leave them off your phone forever.

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Are you spending more or less than average? 

When you buy a house, you take on a lot of big expenses. You obviously acquire a mortgage payment if you borrowed for the home. You’ll also have property taxes to pay for. These costs are pretty predictable, and you’ll be responsible for paying them every year.

There are also some other new costs to think about as a homeowner, though. Specifically, you will likely need to spend money to maintain your house. This will mean covering both small expenditures throughout the year as well as big and unpredictable expenses if things go wrong.

But how much can you expect to spend on home maintenance? While the answer can vary depending on many factors, including the age and condition of your house and how handy you are, it can be helpful to look at what your fellow Americans are spending on this expense.

Here’s what the average American spends on maintaining their home

According to the Bureau of Labor Statistics, the mean annual spending on home maintenance, repairs, and insurance comes in at $2,335 for all consumers. However, some groups spent much more than others. Specifically, those with higher incomes:

Under $15,000 had mean maintenance, repair, and insurance spending of $738 per yearBetween $15,000 and $29,999 had mean spending of $1,405Between $30,000 and $39,999 had mean spending of $1,463Between $40,000 and $49,999 had mean spending of $1,689Between $50,000 and $69,999 had mean spending of $1,851Between $70,000 and $99,999 had mean spending of $2,388Between $100,000 and $149,999 had mean spending of $3,156Between $150,000 and $199,999 had mean spending of $3,752Equaling or exceeding $200,000 had mean spending of $5,507

It’s not surprising that people with higher incomes tend to spend more on home maintenance. First of all, they have more money. That means they can take action immediately when things need to be done and they can afford to pay a premium for fast, efficient, top-quality work. Deferred maintenance is less likely when they have more income to go around.

People who have higher incomes may also have larger houses with costlier items that may need to be repaired or replaced. They’re also more likely to own their home and have maintenance costs to pay as compared with renters who usually leave these costs to a landlord.

Still, anyone who owns a house needs to be prepared to pay for things that go wrong — regardless of whether they’re making a lot of money or not.

How to prepare for home maintenance costs

If you want to make sure you’re ready to cover home maintenance costs, the best thing you can do is have a dedicated fund for them. You can open a high-yield savings account and set aside money in it to use whenever repairs are needed. Ideally, you’d put around 1% to 2% of your home’s value in the account each year so it can build up a reasonable balance in case you face a big expense.

You can always turn to your emergency fund, too, if you have one. While you don’t want to keep raiding this fund to cover routine maintenance or inevitable problems, the money is there to help you pay the bills if you need it until you have a dedicated home-repairs account you can rely on.

The important thing, though, is to realize maintenance costs are going to be a part of your life once you’re a homeowner, so you need to plan accordingly to prevent financial disaster. The sooner you come to terms with this reality, the better off you’ll be.

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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 worry — it’s good news. 

Inflation has been battering consumers since mid-2021. Thankfully, the pace of inflation has come down since peaking in 2022. But we’re worlds away from “normal” inflation, and the Federal Reserve isn’t happy about that.

For this reason, the central bank has been raising interest rates pretty consistently. And on March 22, it raised its benchmark interest rate once more. The latest rate hike came to 0.25%, which isn’t as aggressive as the Fed can get. But it still has consumers worried.

Rate hikes tend to lead to higher borrowing costs, whether in the form of an auto loan, home equity loan, or personal loan. And at a time when inflation is surging, many consumers are not in a position to afford higher loan payments.

But while rate hikes may not be the best thing for consumers looking to borrow, for those with money in savings, they can be a very good thing. That’s because savers now stand to earn even more interest on the money they have in the bank.

A solid opportunity for savers

The Federal Reserve is not tasked with setting the interest rates banks offer consumers. Rather, it oversees the federal funds rate, which is what banks charge one another for short-term borrowing purposes.

But when the Fed raises its federal funds rate, consumer borrowing rates and savings account rates commonly follow suit. So if you have money in a savings account, you might soon find that your bank starts paying you even more interest on that cash.

What’s more, CD rates might rise on the heels of this latest rate hike. As a reminder, once you lock in a CD, you’re stuck with the same rate until it matures. But if you’re looking to open a new CD, you might benefit from this recent rate hike.

Meanwhile, if you have a CD that’s about to come due, you may want to roll that money into your savings account rather than a new CD. It might take banks a little time to adjust their CD rates, but waiting a bit to open another CD could mean snagging a higher interest rate on your money.

When will rate hikes stop?

The Fed is likely to continue raising interest rates until inflation levels start to moderate even more. In February, inflation sat at 6%, as measured by that month’s Consumer Price Index. For context, the Fed wants inflation to dip all the way down to 2%. So clearly, there’s work to be done.

Additional rate hikes could burden consumers who are looking to borrow, or those with variable-interest debt, such as credit card balances. But savers, thankfully, have a great opportunity to earn even more interest on their money. So if you’re able to carve out a little extra cash to stick in the bank, now’s a good time to do it.

In fact, it wouldn’t be a bad idea to cut back on spending to free up more cash for your savings. Doing so might also lower your chances of landing in debt — and getting stuck losing a lot of money to interest in that scenario.

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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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