Money Management

It could help ensure you truly have the coverage you need. 

Getting life insurance is one of the most important financial moves you can make. Putting a policy in place can help protect your loved ones financially in the event of your passing. And it can also give you peace of mind.

Meanwhile, the amount of life insurance you buy will often hinge on the amount of money you earn. Why is this?

Many financial experts will tell you to calculate your life insurance needs as a multiple of your salary. So if your salary goes up, there’s one important life insurance move you ought to make.

A big raise should trigger a change

It’s estimated that the average U.S worker. got a 4.6% bump in salary for 2023. But what if your wages increased a lot more than that?

Maybe, after years of hard work, you were able to qualify for a promotion. Or maybe you moved from one company to another, and in the process managed to boost your pay by 15% or 20%. That’s a scenario that might warrant a closer look at your life insurance coverage.

See, when people’s earnings increase a lot, their lifestyles tend to follow suit. Think about it. If your paycheck goes up substantially you might upgrade your lifestyle in different ways. You might decide to treat yourself to a nicer vehicle, enroll your kids in more programs, or even take on a more expensive mortgage. And so it’s a good idea to update your life insurance benefit to account for your higher earnings and higher spending.

Now, you may be thinking, “Well, if I pass away, my family could always sell my car and cut back on spending.” But would you really want them to have to sell your home because they can’t afford to keep up with it? Probably not. And that’s why increasing your life insurance benefit is a smart bet.

Often, you can tack on added coverage to an existing life insurance policy. But that’s not always the case, so you may need to go out and buy another policy to layer on top of an existing one.

But let’s say your goal is to have 10 times your salary as a life insurance payout. If you were making $60,000 a year and therefore have $600,000 worth of coverage, but your salary has risen to $75,000, that suddenly means your life insurance benefit might be $150,000 short. And that’s something you may want to remedy sooner rather than later.

Make sure you have the coverage you need

Putting life insurance in place means you’re trying to do your part to protect your loved ones in a worst-case scenario. So you might as well go the extra mile and make sure your coverage is truly sufficient.

You don’t necessarily have to increase your life insurance coverage every time your salary goes up modestly. But if you’re talking about a sizable raise, and changes to your expenses that reflect that raise, then it’s at least worth thinking about upping your life insurance benefit.

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Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

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Using a credit card for a big purchase could be a win for your wallet. 

Whether you plan to buy a new cell phone, laptop, or a pricey household essential, saving enough money before purchasing it is a good idea. However, if you’re interested in earning credit card rewards, you may want to use a credit card to pay for your purchase when the time comes. You can then use your saved cash to pay the entire credit card bill when it arrives to avoid interest charges. Here’s why this is worth considering.

Rewards credit cards are valuable

You’re missing out if you’re not yet using rewards credit cards. You can earn rewards using your credit card to pay for everyday purchases. But when doing this, make sure you only charge what you can afford to pay off, so you don’t fall into expensive credit card debt. You’ll have to pay costly credit card interest charges if you carry a credit card balance.

In addition to the ability to earn points, miles, or cash back, many credit cards promote attractive sign-up bonus offers to new cardholders. You could earn a hefty bonus if you meet the spending requirements. If you plan to make a significant purchase soon, you may want to consider getting a new credit card and using your card to pay for the purchase to earn the sign-up bonus. Check out our list of the best rewards credit cards to explore some card options.

What to consider before getting a new rewards credit card

You want to choose a card that will meet your needs and fit your lifestyle and budget. Here are some considerations that you should make as you compare credit card options:

Check minimum spend requirements: Don’t forget to review the minimum spend requirements. Can you spend enough money within the set timeline to earn the sign-up bonus offer? It may not be the right card for you if you can’t afford to hit the minimum spend.Learn how the card earns rewards: It’s also wise to review how your new card earns rewards. You want to choose a card that fits your spending habits well. For example, a dining rewards card may make the most sense if you dine out frequently. Choosing a card that rewards you for your most common purchases is best.Explore your redemption options: You should also consider your award redemption options. Does the card only offer cash back rewards, or can you redeem your credit card points for free flights or hotel stays? Knowing this before you get a new card can help you decide how to use your rewards once you earn them.Review credit card fees: Ensure you know all the credit card fees. If there is an annual fee, ensure that the benefits are worth the cost and that you can afford to pay the yearly fee.Understand your credit situation: You should also know your credit score or have a general idea of your current credit situation. Some rewards credit cards are more obtainable if you have a good or excellent credit score, so you want to make sure that you consider your approval odds before you apply for a new card.

Don’t miss out on the chance to earn rewards

Before making your next big purchase, set aside enough cash in a high-yield savings account. But don’t miss out on the chance to earn rewards. Paying for a costly expense with a credit card can allow you to maximize your rewards potential. Then, use your cash to pay your credit card bill off to avoid debt. Review our list of the best cash back credit cards to learn more.

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If you want value flexibility, a freelance gig might work well for you. 

Many workers desire greater flexibility and a better work-life balance, leading some to shift their job search strategies to prioritize applying for freelance opportunities rather than traditional jobs. Freelancing can offer significant benefits, like a flexible schedule and the ability to boost your income potential. It’s not surprising that 60 million Americans performed freelance work in 2022, according to Upwork.

Are you considering giving freelancing a go? Luckily, there are a variety of industries with freelance opportunities. FlexJobs recently released its 2023 Report: State of Remote, Freelance Jobs, which examined the most popular freelance job opportunities available in the FlexJobs database throughout 2022. Here are the remote freelance job titles employers hired for most.

10. Paralegal

Top skills: research, problem-solving, attention to detail, ability to multitask

If you have experience working as a paralegal or are interested in becoming one, you’ll be happy to know that many companies hire freelance paralegal professionals. You’ll support the day-to-day needs of lawyers. Work tasks may include performing research, collecting documents, preparing documents, and communicating with clients.

9. Payroll specialist

Top skills: mathematics, time management, organization, problem-solving

Another job title on the list is payroll specialist. In this gig, you manage company payroll matters to ensure employees get paid correctly and on time. Responsibilities may include preparing and submitting payroll, collecting information from new employees, and documenting and maintaining payroll records.

8. Project manager

Top skills: communication, leadership, critical thinking, organization, time management

A project manager helps organize, plan, and execute projects. To excel in this role, you should be a leader and feel comfortable communicating with different people. You’ll manage projects from start to finish, delegate tasks, monitor progress, and solve problems as they arise.

7. Social media manager

Top skills: creativity, community management, project management, writing

Do you have a knack for social media management? Many companies hire social media managers in a freelance capacity. That means you can get paid to use your creativity to manage social media accounts for brands without being tied down to a nine-to-five schedule and a boring cubicle. In this role, you’ll strategize campaigns from start to finish, manage social media accounts, and stay current on social media marketing trends.

6. Copywriter

Top skills: creativity, writing, research, deadline-oriented, ability to take criticism

Freelance copywriter opportunities were plentiful last year. Many companies hire freelance copywriters to create quality content to help sell their products and services. In this role, you might generate copy for ads, draft email marketing campaigns, or create website copy. If you love the idea of writing, editing, and researching for a living, this may be the gig for you.

5. Graphics designer

Top skills: creativity, communication, typography, ability to use design software

Workers with graphic design skills will find there are many freelance opportunities out there. In this gig, you’ll create stunning visuals for people and companies. Tasks may include mocking up design ideas, retouching photos, communicating with clients, and ensuring each project is completed on time and within budget.

4. Bookkeeper

Top skills: critical thinking, mathematical, organization, time management, attention to detail

Freelancing bookkeeping positions were also popular in 2022. In fact, according to FlexJobs, freelance bookkeeping opportunities increased by 66% in the last year. You’ll help organizations keep their financial affairs in order in this line of work. Tasks may include updating financial records, paying bills, sending invoices, and creating financial reports.

3. Customer service representative

Top skills: problem-solving, communication, patience, empathy, adaptability

Freelance customer service representative positions are in high demand. You may want to consider this role if you like dealing with people; are good at problem-solving; and can speak calmly, kindly, and positively. You should expect to listen to customer concerns, resolve issues, and collect and analyze customer feedback.

2. Recruiter

Top skills: communication, marketing, attention to detail, relationship building

Another freelance role that you may want to explore is recruiting. In this kind of gig, you’ll help match job seekers with opportunities that fit their skills and experience. Many organizations hire freelance recruiters to help with their hiring needs. You can expect to develop job descriptions, communicate with hiring managers and applicants, coordinate interviews, and screen resumes in your day-to-day work.

1. Executive assistant

Top skills: organization, communication, ability to multitask, technology, critical thinking

The most popular freelance job role in 2022 was an executive assistant. If you are interested in helping organizations run more effectively, this may be a good freelance gig for you. Daily tasks can include managing schedules, communicating on behalf of company executives, answering phone calls and emails, and making travel arrangements.

Freelance life comes with benefits

By becoming a freelance worker, you can enjoy many benefits. Here are a few perks you can look forward to.

Flexibility: Many freelancers choose this work arrangement for greater flexibility. If you want more control over your hours and schedule, you may like being a freelancer.Income potential: Many regular employment opportunities have a set salary, and it can be challenging to earn more. As a freelancer, you have more control over how much money you earn. You can choose higher-paying projects and set big income goals.Choosing your projects and workload: When you work a regular job, you’re expected to perform a set amount of hours each week and typically don’t get to choose the projects you handle. But many freelance roles allow you to work on projects you care about and reduce or increase your workload when necessary.

Financial changes to expect when becoming a freelancer

While freelance life offers many benefits, you should expect some financial changes when taking on this role. You want to ensure you’re prepared for such changes so you can continue to stay on top of your personal finance goals. Here are some changes to anticipate.

Tax responsibilities: Unlike traditional employees, freelancers are considered independent contractors and must pay their taxes themselves. Your best bet is to make estimated tax payments each quarter to avoid falling behind on your tax obligations. If you’re new to freelancing, using self-employment tax software can make it easier to file your tax return.Income fluctuations: Many freelancers find their income fluctuates as their workload changes. If you’re used to receiving a set paycheck every two weeks, it can be an adjustment learning to budget when you have an inconsistent income. When work is plentiful, you can prepare for leaner times by stashing extra cash in a high-yield savings account. If you need help keeping your spending in check, you may want to use budgeting apps.Lack of benefits: Many traditional employee jobs include benefits like health insurance coverage and paid time off. When you work as a freelancer, you don’t get employee benefits. You’ll need to plan for additional costs like healthcare and set aside extra money for sick and personal days; otherwise, you won’t get paid when you take days off.

Freelancing may be the answer

If you’re not feeling fulfilled in your current job, you may want to apply for freelance gigs. While this type of work isn’t for everyone, it can be an excellent fit for self-motivated workers. Plus, this work situation offers greater flexibility and could allow you to earn more money to save for the future or pay off debt faster.

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A side hustle could help make homeownership more attainable, but you’ll need a solid foundation first. 

If you’re thinking of buying a home today, well, good luck with that. Not only are mortgage rates up, but property values remain elevated — even as buyer demand has waned.

In January, the median existing-home sale price was $359,000, according to the National Association of Realtors. Now, the good news is that we’re only talking about a 1.3% increase from January 2022. The bad news, though, is that mortgage loans were more affordable from an interest rate standpoint back then than they are today. So even though home price gains seem to be slowing, buyers are still facing a major affordability crunch.

You’ll often hear that if you’re trying to meet a big financial goal, a side hustle could be your ticket to it. But can you really side hustle your way into property ownership given the challenges today’s buyers face?

A side job will help, but only to a point

Let’s say you’re looking to buy a home that costs around $359,000, and you’re hoping to make a 20% down payment. That means you’ll need around $72,000. If you have, say, $65,000 saved up already, then taking on a side hustle this year could get you to where you want to be as far as your down payment goes.

But if you’re sitting on $3,000 toward a home down payment, then a side hustle may not be enough to set the stage for a home purchase — even if you’re willing to come to terms with the consequences of making a lower down payment, like facing private mortgage insurance. Granted, working a side hustle for, say, five years, might get you to a point where you’re able to sign a mortgage. But if you don’t want to wait that long to own a home, then a side hustle may not be good enough.

Plus, let’s say you earn a decent wage and can generally afford the ongoing costs of owning a home, but you’d feel more comfortable with a $300 monthly income boost in case you run into issues with maintenance and repairs. In that case, a side hustle could make homeownership more affordable and realistic for you.

But let’s say you’re a lower earner with no raise in sight. If you’re $2,000 shy of where you need to be on a monthly basis to comfortably keep up with the costs of owning a home, then a side hustle may not solve your problem.

While it’s true that some side hustles can be lucrative, bringing in an extra $2,000 a month is a pretty tall order. And it may mean not getting to spend any time enjoying the home you’ve worked so hard to buy because you’re constantly working.

A reasonable solution to a point

In some cases, getting a side hustle could set the stage for homeownership. But that won’t always be the case. And if you’re worlds away from being able to afford a home, then a side hustle may not be the catch-all solution you’re hoping it’ll be.

If you’re not close to being able to buy a home, you may want to rethink your overall financial picture. That could mean going for a certification that will help you boost your income, or making a career switch to a more lucrative field. You may also want to think about relocating to a part of the country where buying a home is less expensive, if you don’t see your income growing substantially in the near term.

A side hustle could really do a lot of great things for your finances. But don’t be shocked if it does not, in fact, make it possible to buy a home, especially given the state of the real estate market today.

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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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Warehouse club deals can help you keep more money in your pocket. 

It’s no secret that everyday costs are rising throughout the country. Many Americans are looking for ways to save money when shopping. Some individuals and families find that joining warehouse clubs helps them save on groceries, toiletries, electronics, and household supplies. If you’re a Sam’s Club member or have considered joining, here are the best deals for March 2023.

1. SONY 65″ Class X80CK-Series 4K HDR LED TV

Total savings: $170

You won’t want to miss this deal if you’ve been stashing extra cash in your savings account for a TV upgrade. Sam’s Club has the SONY 65″ Class X80CK-Series 4K HDR LED TV at a $170 discount. You can buy this well-rated TV for $679.99 through April 2, 2023. With a new TV like this, your friends will want to watch all the must-see games and other televised events at your place.

2. Sealy Posturepedic Plus Spring Anderson Euro pillowtop mattress

Total savings: $300

Another can’t-miss deal is the Sealy Posturepedic Plus Spring Anderson Euro Pillowtop Medium Feel Mattress. This mattress is available in many sizes, but the king-size model offers the highest savings. Now through March 26, 2023, club members can save $300 on the purchase of this king-size mattress. You’ll pay $1,699 instead of $1,999 with this offer.

3. Edgewater stain-resistant fabric sectional sofa

Total savings: $500

For those hoping to upgrade their furniture, Sam’s Club has some fantastic money-saving furniture offers. The 3-Piece Edgewater Stain-Resistant Fabric Sectional sofa in light gray is available for $1,499 instead of $1,999 through Mach 30, 2023. With a savings of $500, this is an excellent way to improve your living room’s look and feel without breaking your budget.

4. HP All-in-One desktop with 8GB memory and 512 GB SSD drive

Total savings: $100

You can also score savings on electronics by shopping at Sam’s Club. This HP All-in-One desktop with 8 GB of memory, a 512 GB SSD drive, and a 23.8″ diagonal widescreen FHD monitor is on sale for $100 off. Through March 26, 2023, members can score this desktop computer for $499 instead of $599. It includes a wired keyboard and mouse, HP privacy camera, Windows 10 Home, and a two-year warranty care pack.

5. Philips Norelco electric shaver

Total savings: $30

Members can buy the Philips Norelco Shaver 6500 for $69.98 through March 26, 2023. Usually priced at $99.98, this wet and dry electric shaver is a great deal. The lithium-ion battery offers 60 minutes of cordless shaving and can be recharged in 1 hour and 5 minutes.

6. Knightley 70″ multi-use entertainment console

Total savings: $100

Shoppers can also save money by purchasing the Knightley 70″ Multi-Use Console. Through March 30, 2023, members can buy this dark brown or gray entertainment console for $699 instead of $799. Whether you want to add a new entertainment center to your living room or a spare bedroom, this deal will save you $100.

7. TP-Link Deco M4 AC1200 whole home Wi-Fi system

Total savings: $30

If you have a larger home, you may struggle with good-quality internet connectivity throughout your house. A Wi-Fi extender system could help you improve your internet quality. The three-piece TP-Link Deco M4 AC1200 Whole Home Mesh Wi-Fi system is $30 off. Through March 31, 2023, Sam’s Club members can pay $99.88 instead of $129.88 for it.

Seek out discounts to keep your spending in check

Many of us are looking for new ways to minimize overspending in our daily lives. Taking advantage of discount opportunities like the ones mentioned above may help you stay on budget. Check out our personal finance resources for additional ways to save 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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