Money Management

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What HappenedThe Federal Trade Commission (FTC) has proposed a new rule that would require companies to make it much easier to cancel subscription services. It would also make it easier to get your money back if you’re tricked into getting or keeping a subscription you don’t want.”Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place,” said FTC Chair Lina M. Khan in a press release. “The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.”The new rule is currently in its infancy; the FTC has only finished the first step of the process, which was to vote to publish a notice of proposed rulemaking in the Federal Register. This gives the public time to weigh in before the rule is finalized.So WhatSubscription services — be it a streaming service or a gym membership — can be notoriously hard to cancel. Even when you can sign up for it online, you may need to go through an online chat, call the company, or even show up in person to cancel. This gives them plenty of time to give you the runaround or bombard you with sales pitches.The new rule would make it so you can cancel a subscription the same way you signed up. So, if you can sign up online, the rule would require that you also be able to cancel online — and in the same number of steps.Businesses will still be able to add their sales pitches and alternative offers (i.e., “Why not sign up for this lesser tier rather than cancel?”), but only if you opt into seeing them. If you decline, the business must accept it and skip the pitches.Now WhatIf you have anything you’d like to suggest about the new bill, you can submit your comments as soon as the notice has been published.Once the rule is in place, it will be much easier to cycle services, which is a great way to save money. For example, you can use one streaming service this month, then cancel and use another next month.For now, the best way to stay on top of subscriptions is to regularly audit your personal finances. Look through your bank and credit card statements every month to ensure you recognize every charge, and make sure that any repeating charges are for services you want to keep.Additionally, when you sign up for a free trial, make note of when the trial ends and what day you’ll be billed. (It can be helpful to set reminders in your phone calendar, as well.) Always cancel subscriptions at least two days before the billing date to ensure it processes before you’re charged again.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’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. 

What Happened

The Federal Trade Commission (FTC) has proposed a new rule that would require companies to make it much easier to cancel subscription services. It would also make it easier to get your money back if you’re tricked into getting or keeping a subscription you don’t want.

“Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place,” said FTC Chair Lina M. Khan in a press release. “The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.”

The new rule is currently in its infancy; the FTC has only finished the first step of the process, which was to vote to publish a notice of proposed rulemaking in the Federal Register. This gives the public time to weigh in before the rule is finalized.

So What

Subscription services — be it a streaming service or a gym membership — can be notoriously hard to cancel. Even when you can sign up for it online, you may need to go through an online chat, call the company, or even show up in person to cancel. This gives them plenty of time to give you the runaround or bombard you with sales pitches.

The new rule would make it so you can cancel a subscription the same way you signed up. So, if you can sign up online, the rule would require that you also be able to cancel online — and in the same number of steps.

Businesses will still be able to add their sales pitches and alternative offers (i.e., “Why not sign up for this lesser tier rather than cancel?”), but only if you opt into seeing them. If you decline, the business must accept it and skip the pitches.

Now What

If you have anything you’d like to suggest about the new bill, you can submit your comments as soon as the notice has been published.

Once the rule is in place, it will be much easier to cycle services, which is a great way to save money. For example, you can use one streaming service this month, then cancel and use another next month.

For now, the best way to stay on top of subscriptions is to regularly audit your personal finances. Look through your bank and credit card statements every month to ensure you recognize every charge, and make sure that any repeating charges are for services you want to keep.

Additionally, when you sign up for a free trial, make note of when the trial ends and what day you’ll be billed. (It can be helpful to set reminders in your phone calendar, as well.) Always cancel subscriptions at least two days before the billing date to ensure it processes before you’re charged again.

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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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It’s positive news for taxpayers. 

There’s a reason that for the past number of years, you potentially had a better chance of getting your favorite celebrity on the phone than connecting with an IRS agent. Similarly, there’s a reason IRS audit rates have been remarkably low in recent years. The agency has lacked the manpower needed to pursue questionable tax filings.

But all of that may soon be changing. Last year, as part of the Inflation Reduction Act, the IRS was granted $80 billion in funding. And Mark Steber, Chief Tax Information Officer at Jackson Hewitt, insists that’s a very good thing.

The agency sorely needs funding

The IRS is an agency that’s notoriously difficult to contact. That’s largely stemmed from funding issues. In 2020, the IRS closed its field offices in the wake of the COVID-19 pandemic and fell almost unreasonably behind on processing paper documents and tax returns. As a result, many taxpayers had to wait longer than usual to see their refunds hit their bank accounts. Again, that’s a situation that would have perhaps been remedied with more funding.

Thankfully, the IRS is finally getting the pile of cash it’s needed for years to improve its services on a whole. And while some people might worry that an increase in funding will lead to more tax returns being audited, Steber says that shouldn’t be a concern.

“The audit rate has been about 1% for decades, so your chance of being audited historically has been very low,” he explains. Now, Steber does think audit rates will increase in light of this funding. But, he says, that’s not necessarily a bad thing. And he also likes to remind people that if they’re honest on their tax returns, that’s not something to worry about.

“If you’ve done your tax return accurately and you have good documentation, an audit is nothing more than someone asking to see some support,” he explains. And, it’s possible for an audit to work out in your favor — meaning, an audit might result in a lower tax bill than what you initially calculated, not a higher one.

A positive development

While added funding could lead to an uptick in audit rates, Steber thinks taxpayers should focus on the positive aspects of the IRS getting more money. “In the coming years, the IRS will have better technology, more staff,” he says. That could mean shorter wait times to speak to an agent and less frustration for taxpayers.

Plus, it’s good for the IRS to have money it can sink into training. That way, when you do manage to reach an IRS agent, they’ll be more likely to actually be able to help you. After all, there’s nothing more frustrating than waiting on hold for hours or calling repeatedly, only to finally reach a live person but not actually manage to resolve the issue you’re calling about.

All told, extra money going into the IRS is a good thing. “You want a well-funded, well-trained, well-staffed IRS,” says Steber. “It can be a benefit to all tax-paying Americans.”

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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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It pays to hear what he has to say. 

There’s a reason it’s been such a struggle for so many people to buy a home over the past few years. The real estate market, on a national level, has been sorely lacking in inventory. And any time there’s a shortage of inventory, it becomes difficult to find an affordable property to buy. This especially holds true today given where mortgage rates are at.

As of late January, the housing market, on a national scale, only had a 2.9-month supply of inventory, according to the National Association of Realtors. It normally takes more like a 6-month supply of available homes to fully meet buyer demand.

Now, there is a chance that housing inventory could pick up in 2023. But that’s unlikely to happen overnight. So if you’re trying to buy a home right now and are struggling with a lack of inventory, then it could pay to heed this great advice from financial guru Dave Ramsey.

Be prepared to compromise

Low housing inventory means a few things. First, it means that sellers can generally get away with charging higher prices, leaving you with larger mortgage payments to tackle. It can also mean that you may not find all of the features you want in a home, or that you may not be able to find them in the neighborhood you’re hoping to move to.

In a market like this, Ramsey insists that buyers need to be prepared to sacrifice some wants. “If you can’t find the house you want, be willing to give up some nice-to-haves for your must-haves.”

So, let’s say you want to move to a neighborhood with a great school district and you’re aiming for a home with three bedrooms so that your two kids won’t have to share a room. You might also want an updated kitchen and bathrooms. But if the former aspects — great schools and more space — are the most important things to you, then you may need to be willing to give up the nice kitchen and bathrooms and settle for a home where those areas could use an upgrade.

And to be clear, you can upgrade in time, once money allows for it. But if you’re looking to buy a home now, you may need to make some compromises.

Furthermore, you may decide to purchase a smaller or outdated home now to put a roof over your family’s head, and then buy a larger or more upgraded one down the line — either when home prices or mortgage rates come down, or when your income increases. Ramsey even says it’s not a bad idea to find the least expensive home in the best neighborhood you can afford, and then plan to upgrade down the line.

Advice worth taking

Many prospective home buyers are being advised to hold off on buying due to the current state of the market and the fact that mortgage rates are so high. If you’re able to wait for real estate inventory to pick up, you might benefit in the form of paying less for a home and getting more of the features you really want.

But if you need to buy a home now, and not wait, then be prepared to let go of some of your wants. Otherwise, you might end up taking on a mortgage you can’t afford and regretting that decision after the fact.

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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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Who can put a price on all that love? 

Folks in the U.S. love their pets. In fact, they love them to the tune of $126.3 billion dollars every year, according to the American Pet Products Association (APPA). And while that number is spread across the more than 90 million households with pets, it’s still startling.

While roughly half of those households are home to cats, dogs are by far the most prevalent pet, with nearly 70 million households home to a canine family member. So it’s no surprise that a good chunk of the billions going to the pet industry is spent keeping Fido happy and healthy.

But how much does it really cost to care for a dog each year? The answer is: It depends. There are a ton of variables, from the dog’s breed and size to, well, how much you spoil them.

Average annual cost: $1,300 to $3,500+

Given all the variables — and the lack of substantive data — it’s hard to narrow down the average cost to much more than a broad range. But if we look at surveys from a few knowledgeable sources (including the AKC, ASPCA, and Rover.com), we get a general range of about $1,300 to $3,500 or more per year.

Included in this number are the typical expenses required for modern dog parenting, including:

FoodTreatsToysGroomingMedicationsRoutine vet carePet insurance

As noted above, there’s a ton of variability in each of these categories. A 20-pound lapdog is going to eat far less than a 100-pound still-thinks-they-are-a-lapdog. Similarly, grooming costs are obviously going to be far higher if you have a high-maintenance prima-dogga.

And your pup’s health is going to be a major factor. Right off the bat, if your dog’s breed is one more prone to illness, your pet insurance cost will be higher. And that’s before you start getting into the actual medical care for those illnesses.

It’s not all down to breed, though. There’s a huge range of costs in each of these categories even for dogs of similar size and breed. Food costs, for example, can depend just as much on brand as breed. If you’re buying refrigerated wet foods, keeping Fido fed is going to cost far more than if you were buying grocery store–brand dry food.

Depending on your lifestyle, you could also throw in a few other costs, like poop bags, doggy daycare, and professional dog walkers. If your pup spends just one day a week in boarding/daycare, you could easily add a few hundred bucks a year to your total.

Tips for keeping costs down

Many of the costs of dog parenting aren’t negotiable. They need to eat, see the vet, and receive treats and toys regularly (because they’re such good doggos, yes they are). But this doesn’t mean there aren’t ways to keep those expenses manageable.

For one thing, you can comparison shop everything. Paying too much for pet insurance? There are tons of different pet insurance companies these days, with a host of different plan types. You can even get multi-pet discounts.

Similarly, you can find quality pet products just about everywhere. Even those fancier refrigerated pet foods are now showing up in regular grocers and big-box stores.

And don’t underestimate the value of online shopping. Free delivery makes bulk buying for your pet easier than ever. Companies like Chewy and Petco will deliver those gargantuan bags of dog food right to your door, eliminating the need to wrestle them in and out of your car.

Snuggles and scritches: priceless

At a certain point, of course, there’s only so many expenses you can cut before you’re going to impact your pet’s quality of life. We all have to accept that dogs come with a certain cost — and that they’re totally worth it.

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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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