Money Management

It could spare you financial pain and heartbreaking decisions. 

Adopting a pet in need of a home is one of the kindest things you can do. But there are risks involved in welcoming a pet whose background is completely unknown. And that’s often the case when you adopt a pet through an animal rescue or shelter.

Often, stray animals are pulled from the street with no identification whatsoever. And because of this, it can be difficult, or even impossible, to determine whether they have pre-existing health issues. Furthermore, any pet whose origins can’t be traced has a higher risk of having health issues due to neglect.

As such, if you’re going to adopt a pet whose history is unknown, it’s important to make sure you have plenty of money in your savings account to fall back on. You may need to spend some money on near-term medical care, not to mention try out different foods in case your pet has a hard time eating (a common thing for neglected animals). But an equally important thing to do is put pet insurance in place immediately — before new health concerns come to light.

The importance of pet insurance

Unlike human health insurance, which covers pre-existing conditions, pet insurance generally will not cover existing issues with an animal. So the sooner you put it in place, the more likely you’ll be to get ahead of health issues that pop up over time.

What’s more, if you’re adopting an animal whose background and history are unknown, you may not even have a good sense of its age. And unfortunately, as can sometimes be the case with humans, health issues tend to escalate as pets age. Having insurance could make it so you’re covered for extraordinarily high vet care bills.

Now, one thing your pet insurance may not cover is the cost of preventive care. Usually, to get that sort of wellness benefit, you’re looking at a pretty high pet insurance premium, and that may not be worth paying. But where pet insurance can come to the rescue is situations such as having to pay for a $7,000 surgery, or having to board your pet at an animal hospital for a week at a cost of $500 a night.

Don’t take chances

Healthy Paws Pet Insurance says that an emergency vet visit can range from $200 to up to $5,000. And the latter is a sum of money you may not have.

Without pet insurance, you might get stuck in a situation where you have to forgo medical care for your pet because you just can’t afford it. Or, you might deplete your personal cash reserves or land in a massive pile of credit card debt in the course of caring for your pet. Neither is ideal.

You will need to factor the cost of pet insurance premiums into your budget when you buy a policy. But your policy might more than pay for itself over time. And when you’re adopting a pet whose entire health history is anyone’s guess, you really can’t afford to not put some coverage in place.

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Don’t assume that tax break is a given. 

When you own a home, it’s not just mortgage payments you’re required to cover. You also need to pay for the peripheral expenses of homeownership, like insurance and property taxes.

Recent Ascent research found that the median property tax bill in the U.S. is $2,971. But in some parts of the country, property taxes can be much higher.

No matter what your property tax bill amounts to, you may be eager to write that sum off when you file your taxes. But before you start counting on that tax break, recognize that it may not actually be in the cards.

Why you may not get to write off your property taxes

To claim a deduction for property taxes, you need to itemize your deductions on your taxes, as opposed to taking the standard deduction. But depending on your specific situation, you may not be able to write off some or all of your property taxes.

The reason? There’s a $10,000 cap on the SALT deduction, or state and local tax deduction. The SALT deduction encompasses your state income taxes and also your property tax bill.

Now, let’s say you earn a high wage and/or live in a state with a higher income tax rate. It’s conceivable that you might use up that entire $10,000 limit on your income tax bill alone, leaving you with nothing left over toward your property taxes.

What’s more, in some parts of the country, a modest home can come with a property tax bill of $15,000 a year. So, let’s say that’s what your property taxes look like, and you also paid $5,000 in state income taxes last year. That means you can only write off $5,000 of your $15,000 in property taxes because that deduction can’t exceed $10,000.

How to lower your property taxes

You may be disappointed to learn that your property taxes can’t serve as a write-off on your tax return — or at least not in full. But one thing you should know is that if you get a higher property tax bill, you’re not necessarily stuck with it.

Each year, property owners have an opportunity to appeal their property taxes. If you feel that your home’s value has been over-assessed, you can file an appeal and see if a judge agrees with you. It might do the trick of lowering your property taxes.

Of course, to successfully appeal property taxes, you’ll need to prove that your home has been assessed at a higher value than what it’s actually worth. But if your home is assessed at $500,000, and you can find recent sales data for comparable homes in your neighborhood that only sold for $450,000, you might succeed at lowering your home value to $450,000, too. And since property taxes are calculated by taking your home’s assessed value and multiplying it by your local tax rate, a drop in value could lead to a lower tax burden for you.

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Credit cards are good for more than collecting airline miles.  

Most of us are so busy making it through each day that we don’t have time to get creative. And who knew it’s possible to get creative with our credit cards? With a solid plan in place, it’s possible to enhance our financial lives simply by using and paying off our credit cards. Here are five ways it can be accomplished.

1. Score free financing

This idea is not new, but I wanted to share it. Two years ago, we decided to remove the old builder’s grade carpeting in our house and replace it with hardwood flooring. I wanted to avoid taking the money from our savings account to complete the job, but I also wanted to avoid paying interest.

We applied for a new credit card with a 24-month 0% promotional rate. We knew we had 24 months to pay the card off before the APR reverted back to its typical rate. We made a monthly payment while the bulk of the money we’d saved for new floors was left in an interest-bearing account.

2. Pay off high-interest debt

Let’s say your car breaks down, and you need $3,000 in repairs. In a pinch, you put the debt on a credit card with a 17% APR. If your credit score is strong, there’s a good chance you can pay that debt off using another credit card. Here’s how it works:

Log in to each of your credit card accounts. One may be offering a low-interest (or no-interest) promotional rate. Where that information can be found varies by card, but typically it’s under the “account services” tab.If the company is offering a 0% balance transfer, you can move the high-interest debt to the interest-free card. Remember that you’ll pay a transfer fee of around 3% of the total balance. For example, if you’re transferring $3,000, a fee of $90 will be added to the balance. If you stick to the plan and pay the card off in full before the promotional period expires, you’re money ahead.

3. Invest for the future

Cash back credit cards are an easy way to rack up money for the things we need. But what if you invested the cash instead? Let’s say you earn $200 cash back in one year. Rather than spend it, you invest the money in a Roth IRA with an annual return of 7%. In 20 years, the $200 will be worth $774 — a $574 gain with no effort.

But you can do more. Adding an extra $50 per month to the account will give you roughly $25,400 in 20 years, thanks to compound interest.

4. Build your credit score

A whopping 30% of your credit score comes down to “amount owed.” Lenders want to see that you have access to lots of credit but choose to use it judiciously. Imagine that you have a credit card with a $5,000 spending limit. It’s better to carry a balance of $1,000 than $4,000. Having a zero balance is better yet.

Once you’ve had a credit card long enough to use it and pay it off a few times, request a credit

limit from the credit card carrier. Almost all credit card companies allow you to make a request via their websites. Say that the $5,000 spending limit is increased to $7,500. Keeping your balance low will improve your credit score even more because you suddenly have more credit available.

Keep in mind that some credit card companies run a hard credit check before they agree to raise a spending limit. This “hard” check may ding your credit score by a few points, but your score will rebound after several on-time payments.

5. Track spending

My husband and I use one of our credit cards to pay for everything from groceries to haircuts. We only use one card for two reasons: It’s easier to keep track of, and we use the rewards points to pay for vacations.

Besides our mortgage payments, there’s very little that does not go onto that card, which ultimately makes my life easier. I don’t want debt to pile up and I never want to pay interest, so I’ve gotten into the habit of paying the card off every Friday. Before entering my payment, I review the week’s transactions to track what was spent and look for fraudulent activity. It sounds very serious but takes me approximately three minutes to accomplish.

Using a credit card to track our spending keeps me on top of where every dollar is going, a trick I never quite mastered when I only had my check register and monthly bank statement to count on. Given all the benefits offered by credit cards, the one I value most is the way it helps me track our spending.

Like any financial instrument, the idea is to make your credit card work for you. For example, you don’t have to pay interest unless you carry a balance. And, if you’re feeling creative, you can find other ways to use your card.

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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.Dana George has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Quitting your job isn’t always the solution. 

The Great Resignation was one of many work-related trends that unfolded during the pandemic. According to the Bureau of Labor Statistics, 32.7 million Americans quit their jobs in 2021 — up from 25.2 million in 2020 and 28 million in 2019.

Harvard Business Review put the changes we’re seeing in the job market down to five R’s, “Retirement, relocation, reconsideration, reshuffling, and reluctance.” For example, it says people are reconsidering their work-life balance, reshuffling their roles, and are reluctant to return to in-person work.

There may be another R we can add to HBR’s workplace change list: regret. According to a recent survey by Paychex, 8 out of 10 Americans who quit their jobs in 2021 now regret their decisions. Paychex was quick to coin the phrase, the “Great Regret” for its survey findings.

Regrets, we’ve had a few

Disappointment was highest for Generation Z — 89% of whom regretted leaving their employment. Half of the respondents said it had taken them three to six months to find new positions. Another 11% found work within three months, and 18% said they’d looked for more than 10 months.

People said they missed various things, including their co-workers, bonuses, and health insurance. So much so that 78% would like their old jobs back. The good news is that 70% of employers would be willing to rehire an employee who left during the Great Resignation. In fact, 27% said they’d already done so. Some returning employees even managed to snag a pay raise.

Quitting with confidence

Professionally and financially, it’s important to get your ducks in a row before you quit your job. Here are four ways you can minimize regrets on the career front.

1. Be clear about why you’re quitting

Before you hand in your notice, think carefully about why you’re doing it and if it’s the right solution. It might be you feel like things have stagnated and a move would help you move upwards career wise. Are you looking for a raise? Or do you want to move to a whole other career? Perhaps you aren’t getting along with your manager or feel the environment is toxic.

One of the striking things about the Paychex survey is that a lot of people left their job hoping to find better working conditions, only to discover the grass isn’t always greener. There are times when a conversation with your boss or change in your working habits can make a difference. At others, switching jobs is the only option.

2. Make a plan

If your current job feels overwhelming, the temptation to resign without a plan is understandable. The difficulty is that walking away from your job can be equally stressful if you don’t know where your next paycheck might come from.

If you want to move into another career, what skills will you need? How long will it take you to get them? If it’s a question of getting a formal qualification, how will you fund your living costs in the meantime? Do you have enough money in your bank account? It’s one thing to dream of, say, becoming a doctor, but if that’s what you want to do, you need to know how you’re going to get there.

If you’re planning to stay in the same industry, how are you going to go about getting a new position? Perhaps there’s already an offer on the table. If not, what job sites will you use? Are there headhunters you can speak to? It may make sense to dust off your resume and reach out to former colleagues. Are there a lot of vacancies right now? Or have other companies recently made layoffs?

3. Don’t leave any loose ends

No matter how bad things are at work, find a way to leave on good terms. Start by checking your contract to see how much notice you need to give and whether there are any other restrictions. Work wise, what needs to be done as you transition out of your role? At the very least, you may need to organize your files and pass on your work to someone on your team. You never know when a sloppy handover or harsh words might come back to haunt you later in your career.

4. Safeguard your finances

Given that almost 1 in 5 people in the survey took over 10 months to find a new job, it’s important to be prepared for a lengthy period without a paycheck. You may be able to take on a side hustle to tide you over. Even so, an emergency fund with three to six months’ worth of living expenses will make a huge difference. If you think it could take longer to find work, you might try to put a year’s worth of money into a savings account.

Other financial questions to consider? If you have a 401(k) plan, will you leave it where it is or try to roll it over into a new plan? What will happen to your health insurance when you quit? There’s a federal law that allows you to keep your existing plan for a certain amount of time, but this may not be the cheapest option.

Bottom line

Work can be stressful, and the last few years have been tough on many employees in a host of different ways. Sadly, though, quitting isn’t always the best solution — as highlighted by the number of people who now regret their choices. It is often worth trying to resolve some of your issues with your current employer before you jump ship. Even if you still go on to resign, it might give you experience in handling similar situations in the future and/or improve your work situation for the remainder of your time there.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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The quick answer? It’s really a matter of what you spend. 

It’s not easy being a 25-year-old. You’re sort of stuck in this limbo situation where you’re supposed to be getting the hang of adulting, but you’re still in the mindset of feeling like you’re still in college.

Being 25 can also be challenging from a financial standpoint. You might have outstanding debt to pay off, whether it’s a credit card balance or another type of loan. And your wages may not be much to write home about given your limited experience in the workforce.

Now, you may be wondering how much savings the typical 25-year-old should have. And the answer? Figuring out how much savings you need is more a matter of what you spend than how old you are.

You need protection from emergencies

The Federal Reserve reports that 32% of Americans could not cover a mere $400 expense out of their savings. In reality, you should have enough cash in the bank to cover three full months of essential living expenses at a minimum.

Here’s the logic for that. Let’s say you lose your job and you’re not eligible for unemployment benefits due to not meeting the requirements. If you don’t get any severance pay from your employer, you may have to live on your savings alone while you look for a new job. And it could end up taking at least three months to find a suitable role and complete the hiring process. So if you have enough money in savings to pay for three months of essential bills, you might manage to avoid debt if a layoff impacts you.

But job loss aside, you never know when you might incur an unexpected bill. Your car could run into issues that cost $800 to repair. Or, you might get stuck with a medical bill that costs you $400. Without money in savings, once again, you risk debt. So it’s good to do what you can to build yourself an emergency fund.

To figure out what yours should look like, figure out what your essential bills are and how much they cost you. Let’s say your essential expenses are:

$600 in rent (because you share a living space with a roommate)$350 in car payments$100 in auto insurance$100 in gas$400 on groceries$100 on personal care$100 on healthcare$100 on utilities$100 for cellphone service$50 toward your credit card minimum

All told, that’s $2,000 a month, which means you should really aim to have $6,000 in savings at least.

What if you don’t have enough savings?

If you’re 25, you may not have enough cash at your disposal to cover three full months of essential bills. And if so, don’t beat yourself up. Now that you know what savings target to work toward, you can do your best to set aside extra money every month until your emergency fund is complete.

Of course, you may want to consider a side hustle to help yourself catch up on savings — especially if your regular paycheck doesn’t leave you with much wiggle room. It may not be the ideal way to spend your free time. But if you’re 25, chances are, many of your friends are doing it, too.

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Image source: Getty Images
What happenedVirgin Atlantic has joined the SkyTeam airline alliance. This makes it the first (and only) UK-based airline to join SkyTeam. Virgin Atlantic was previously part of a smaller joint venture with Delta and Air France-KLM. This change expands their partnership to include all SkyTeam alliance members.So what Airline alliances open up a lot of opportunities for consumers, because their frequent flyer and rewards programs have a lot of overlap. For example, earning elite status with one airline in an alliance tends to convey status perks on partner airlines. Similarly, points earned with one airline can be redeemed for flights on other airlines in the alliance.
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In the press release, Virgin Atlantic CEO Shai Weiss said, “We want to reward those who choose to fly with Virgin Atlantic and our Flying Club members deserve the very best loyalty proposition. Our SkyTeam membership offers this through a global network of maximised reward opportunities, alongside enhanced services on the ground and in the skies.”Now what If you currently have Virgin Atlantic elite status — Flying Club Silver and Gold status — you can now match to SkyTeam Elite and Elite Plus, respectively. This can unlock perks, like priority boarding and preferred seats, with all SkyTeam airlines. Additionally, travelers who have Virgin Atlantic miles can now use them to book flights on most SkyTeam partner airlines (China Eastern and ITA Airways will become available later in 2023). For travel rewards card lovers, this is a fantastic change. Virgin is a partner airline for three of the most popular travel rewards programs, including both Amex and Chase.Beyond credit cards, you can now earn Virgin Atlantic miles by flying on most SkyTeam partner airlines. You can also earn Tier points, which are used to attain elite status with Virgin Atlantic.The new partnership goes both ways, too. Travelers with elite status on other SkyTeam airlines will now receive status perks on Virgin Atlantic flights. This extends to Virgin Clubhouse lounge access on eligible flights.Perhaps most interesting is the new ability to redeem miles from partner loyalty programs for Virgin Atlantic flights. This opens up a lot of opportunities for travel to and from the UK that were previously missing from the SkyTeam offering.Top credit card wipes out interest until 2024If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.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.American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy. 

What happened

Virgin Atlantic has joined the SkyTeam airline alliance. This makes it the first (and only) UK-based airline to join SkyTeam. Virgin Atlantic was previously part of a smaller joint venture with Delta and Air France-KLM. This change expands their partnership to include all SkyTeam alliance members.

So what

Airline alliances open up a lot of opportunities for consumers, because their frequent flyer and rewards programs have a lot of overlap. For example, earning elite status with one airline in an alliance tends to convey status perks on partner airlines. Similarly, points earned with one airline can be redeemed for flights on other airlines in the alliance.

In the press release, Virgin Atlantic CEO Shai Weiss said, “We want to reward those who choose to fly with Virgin Atlantic and our Flying Club members deserve the very best loyalty proposition. Our SkyTeam membership offers this through a global network of maximised reward opportunities, alongside enhanced services on the ground and in the skies.”

Now what

If you currently have Virgin Atlantic elite status — Flying Club Silver and Gold status — you can now match to SkyTeam Elite and Elite Plus, respectively. This can unlock perks, like priority boarding and preferred seats, with all SkyTeam airlines.

Additionally, travelers who have Virgin Atlantic miles can now use them to book flights on most SkyTeam partner airlines (China Eastern and ITA Airways will become available later in 2023). For travel rewards card lovers, this is a fantastic change. Virgin is a partner airline for three of the most popular travel rewards programs, including both Amex and Chase.

Beyond credit cards, you can now earn Virgin Atlantic miles by flying on most SkyTeam partner airlines. You can also earn Tier points, which are used to attain elite status with Virgin Atlantic.

The new partnership goes both ways, too. Travelers with elite status on other SkyTeam airlines will now receive status perks on Virgin Atlantic flights. This extends to Virgin Clubhouse lounge access on eligible flights.

Perhaps most interesting is the new ability to redeem miles from partner loyalty programs for Virgin Atlantic flights. This opens up a lot of opportunities for travel to and from the UK that were previously missing from the SkyTeam offering.

Top credit card wipes out interest until 2024

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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.American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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