Avoiding common financial pitfalls can mean the difference between building wealth and losing money. Follow these guidelines to help you make smart money decisions.
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Investing can be one of the most powerful ways to build wealth, but without the right approach, it can also be risky. Many investors make costly mistakes by ignoring basic principles or chasing short-term gains. A strong investment strategy starts with knowing if and when you should invest and then following time-tested rules to grow and protect your money.
West Coast wildfires have far-reaching impacts, disrupting lives across the country in unexpected ways. Number 4 will leave you speechless.
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Wildfires in California may seem like a local crisis, but their impact stretches far beyond state lines. From rising insurance rates to higher grocery prices and worsening air quality, these fires affect millions of Americans nationwide. Supply chains slow down, energy costs fluctuate, and federal disaster funds drain, impacting everything from everyday expenses to long-term policies.
Experts share their most effective methods to become debt-free while saving thousands in interest charges.
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Credit card debt in the U.S. has reached alarming levels, with Americans now owing a staggering $1.17 trillion on their credit cards–a dramatic surge from $770 billion in early 2021. Getting out of debt requires smart strategies and insider knowledge. These insider approaches can accelerate your debt payoff journey, saving you thousands in interest and getting you back on track to save for…
Too much of a good thing can leave your lawn stunted.
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From yellowing grass and bare patches to weeds, pests, thatch, and lawn diseases, there are many signs of overwatering a lawn. Knowing when you’re overwatering and how to fix it can save your lawn from becoming a botanical Atlantis. We’ll cover key signs of overwatering and essential repair strategies to help you rescue your lawn from its watery grave.
Onerous residency requirements put these countries out of reach for most Americans.
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As a growing number of Americans consider an overseas move, more and more “best of” lists covering destinations abroad pop up online — but they can be misleading. Typically, they feature countries where it’s very difficult for the average American to get residency. In some cases, the residency requirements are so onerous that it’s practically impossible for retirees to set up life there.
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Most people only need enough cash in a checking account to cover a month’s worth of spending, plus a little extra to make sure they avoid overdrafts.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Beyond that, keeping more cash in your checking account could cost you a lot of money, because checking accounts earn little to no interest.Here are three alternatives that could earn you way more money in the long run.1. A high-yield savings accountToday’s best high-yield savings accounts (HYSAs) have annual percentage yields (APYs) around 4.00% or more. Most checking accounts pay less than 1.00%, and many pay no interest at all.If your current bank doesn’t offer an HYSA, then open an account with a bank that does. Next, open a checking account with the same bank, and you’ll be able to make instant transfers between your checking and savings. That means if your checking account is ever running a bit low, you can transfer money from your savings account and spend it right away.As an example, let’s say you have an extra $3,000 sitting in a checking account with a 0.20% APY. If you moved that money to an HYSA paying 4.00%, you’d earn $620 more in interest after five years.2. An IRAOnce you have enough money in savings, it’s time to invest for the future. And one of the best ways to do that is through an individual retirement account (IRA).IRAs offer huge tax savings, so long as you leave your money in the account until you’re 59 1/2 or older. Your contributions can be deducted from your taxable income, and your investments won’t be hit with capital gains tax or dividend tax. Those tax breaks can add up to tens of thousands of dollars.Opening an IRA is easy — you can do it in minutes through almost any stock broker. But then you’ll need to choose and purchase investments yourself.If you’re unsure where to start, consider an S&P 500 index fund. These funds have low fees, and they track the performance of the S&P 500 Index — a group of 500 of the biggest companies in the U.S. Since 1957, this index has gained an average of 10% per year.Again, let’s assume you have an extra $3,000 in a checking account earning 0.20%. If you put that money in an IRA, invested it in an S&P 500 index fund, and earned a return of 10% per year, you’d be $1,800 richer in five years.3. A taxable brokerage accountA “taxable brokerage account” is just a regular brokerage account — without the tax benefits of an IRA.Why open a taxable brokerage account at all if IRAs are so much better? Because IRAs have a contribution limit of $7,000 per year (or $8,000 per year for those aged 50 or older).So if you’re able to invest more than that each year, then a regular brokerage account is one of your best options after your IRA is maxed out. You won’t get all those sweet tax breaks, but you’ll still be able to invest in high-growth assets like index funds, stocks, bonds, and more.You could even open an IRA and a taxable brokerage account with the same broker. That way you can see and manage all your investments in one place.Ready to get in on the stock market’s returns? Check out our list of the best stock brokers, open a new account, and start investing in stocks today.Don’t let your money sit idleChecking accounts are necessary for almost everyone. They give you the quickest access to your cash so you can pay the bills and any surprise purchases that might come up on short notice.However, any money that you won’t need for the next month or more could be earning you more money if you put it somewhere else. Think big, think long term, and don’t rob your future self of money by letting extra cash sit in a checking account.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”
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Most people only need enough cash in a checking account to cover a month’s worth of spending, plus a little extra to make sure they avoid overdrafts.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Beyond that, keeping more cash in your checking account could cost you a lot of money, because checking accounts earn little to no interest.
Here are three alternatives that could earn you way more money in the long run.
1. A high-yield savings account
Today’s best high-yield savings accounts (HYSAs) have annual percentage yields (APYs) around 4.00% or more. Most checking accounts pay less than 1.00%, and many pay no interest at all.
If your current bank doesn’t offer an HYSA, then open an account with a bank that does. Next, open a checking account with the same bank, and you’ll be able to make instant transfers between your checking and savings. That means if your checking account is ever running a bit low, you can transfer money from your savings account and spend it right away.
As an example, let’s say you have an extra $3,000 sitting in a checking account with a 0.20% APY. If you moved that money to an HYSA paying 4.00%, you’d earn $620 more in interest after five years.
2. An IRA
Once you have enough money in savings, it’s time to invest for the future. And one of the best ways to do that is through an individual retirement account (IRA).
IRAs offer huge tax savings, so long as you leave your money in the account until you’re 59 1/2 or older. Your contributions can be deducted from your taxable income, and your investments won’t be hit with capital gains tax or dividend tax. Those tax breaks can add up to tens of thousands of dollars.
Opening an IRA is easy — you can do it in minutes through almost any stock broker. But then you’ll need to choose and purchase investments yourself.
If you’re unsure where to start, consider an S&P 500 index fund. These funds have low fees, and they track the performance of the S&P 500 Index — a group of 500 of the biggest companies in the U.S. Since 1957, this index has gained an average of 10% per year.
Again, let’s assume you have an extra $3,000 in a checking account earning 0.20%. If you put that money in an IRA, invested it in an S&P 500 index fund, and earned a return of 10% per year, you’d be $1,800 richer in five years.
3. A taxable brokerage account
A “taxable brokerage account” is just a regular brokerage account — without the tax benefits of an IRA.
Why open a taxable brokerage account at all if IRAs are so much better? Because IRAs have a contribution limit of $7,000 per year (or $8,000 per year for those aged 50 or older).
So if you’re able to invest more than that each year, then a regular brokerage account is one of your best options after your IRA is maxed out. You won’t get all those sweet tax breaks, but you’ll still be able to invest in high-growth assets like index funds, stocks, bonds, and more.
You could even open an IRA and a taxable brokerage account with the same broker. That way you can see and manage all your investments in one place.
Checking accounts are necessary for almost everyone. They give you the quickest access to your cash so you can pay the bills and any surprise purchases that might come up on short notice.
However, any money that you won’t need for the next month or more could be earning you more money if you put it somewhere else. Think big, think long term, and don’t rob your future self of money by letting extra cash sit in a checking account.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
Tarra “Madam Money” Jackson is a financial educator, international speaker, author, and wealth empowerment strategist helping you heal, build, and grow your wealth.
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