Money Management

Put that policy in place while your pet is settling in. 

When my family and I adopted our dog, Champ, about two and a half years ago, our primary focus was getting him settled and secure in our home. He’d been bounced around a lot as a rescue pup, so we knew he’d need some time to adjust and decompress.

One of the first things we did upon bringing Champ home was to take him to the vet for a full exam. What we should’ve done at the same time was purchase pet insurance for him. But we waited to do that. And it cost us a lot of money.

A lesson learned the hard way

We noticed Champ starting to limp after a few months of being with us, and we figured maybe he’d pulled a muscle or something. We tried resting him for a few days and then shortening his walks, but that didn’t help. The vet couldn’t find anything obviously wrong, so she referred us to a specialist who wanted to run a CT scan to see if malformed joints were to blame.

The problem? The price tag attached to that diagnostic testing was $3,000.

My husband and I said yes immediately. Thankfully, we had money in our emergency fund for situations like this. But had we put pet insurance in place sooner, that policy probably would’ve covered a large chunk of that diagnostic bill.

Meanwhile, Champ’s diagnosis was arthritis, not a malformed joint, which was a relief, as it meant he wouldn’t need surgery — just anti-inflammatory medication and an adjustment to his exercise routine (lots of walking, but limited running). It turns out the reason this issue never came to light earlier is that we were Champ’s first family to really give him a lot of exercise. And while exercise and walking is really good for him, too much running, we learned, was not.

Don’t wait to get pet insurance

Not only did not having pet insurance mean having to dip into our savings account to the tune of $3,000 for Champ’s CT scan, but because we didn’t get our policy until after his arthritis diagnosis, that condition is now considered pre-existing. As such, its treatment isn’t covered by insurance.

Thankfully, the cost of his medication isn’t so unreasonable. But we don’t know what additional issues related to his condition might arise as he ages. What we do know is that we’ll have to keep padding our savings to ensure that we can cover any costs that arise that our pet insurance policy won’t pick up the tab for.

If you’re adopting an animal, your first priority may be to help him feel welcome in your home, and to load up on the initial supplies you need. But don’t wait to get pet insurance. Applying a few days after adopting your pet is not unreasonable.

The sooner you get your policy, the less likely you’ll be to encounter a medical issue you need to pay for out of pocket. And the less likely you’ll be to run into a situation like the one we landed in.

Forbes Advisor found that overall, pet insurance costs an average of $35 per month for dogs and $28 a month for cats for $5,000 worth of coverage within a plan year. Now, the amount you’ll pay will obviously hinge on different factors, including your pet’s age and breed. But you may find that your monthly pet insurance premium is a small price to pay in comparison to the bills you might otherwise face if a health issue — even a relatively minor one — arises.

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It could spare you a world of stress. 

When you own a vehicle, auto insurance can be a big expense. But there are different steps you can take to save money on premiums.

One option, for example, is to maintain a solid record of safe driving. Another is to take a defensive driving course. And if you’re willing to take a bit of a chance, you could try raising your auto insurance deductible.

You’ll commonly find that when it comes to auto insurance, premiums and deductibles have an opposite relationship where the higher one is, the lower the other is. Now having a higher deductible could mean paying more money when you get into an accident and need to file a claim against your policy. But that may not happen.

On the other hand, you’re guaranteed to have to pay your auto insurance premiums — regardless of whether you end up needing to file claims or not. So you may decide it makes more sense for your deductible to be higher and your premiums to be lower. But if you’re going to go this route, there’s one important step you need to take.

Make sure to pad your savings

You may not end up having to pay your auto insurance deductible if you manage to avoid accidents or incidents that would require you to file a claim. But if you’re raising your deductible, it’s important to pad your emergency savings. That way, you can be certain you have enough money in the bank to pay your deductible as needed.

And to be clear, you might have to shell out the money for your auto insurance deductible even if you’re not at fault for an accident. Often, what’ll happen is that your insurance company will process your claim, charge you your deductible, and then reimburse you once it’s gotten paid from the insurance company of the driver who caused your accident. But you’ll still need to come up with the money in that scenario.

So, let’s say you’re raising your auto insurance deductible from $500 to $750. You should immediately put another $250 into your savings.

Of course, ideally, your savings account will have enough money to cover more than just your car insurance deductible. But at a minimum, once you make that change, your savings should be boosted so you don’t run into issues.

Don’t leave yourself short

You never know when you might need to dip into your savings to cover something related to your car, whether it’s your auto insurance deductible or a repair bill you’re responsible for on your own. That’s why boosting your emergency fund is a good bet in general.

A recent Federal Reserve study found that 32% of Americans don’t have the cash in savings to cover a mere $400 emergency. But if you drive a car, you’re well aware that $400 may not so much as cover a relatively minor repair. And it may not cover your deductible, either. So if you’re part of that 32%, make every effort to grow your savings so you’re not left scrambling in case something goes wrong with your car.

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The quick answer? It could. 

Your credit score is a number you may not put much thought into until you’re ready to apply for a loan. But if a loan or credit card application of yours is denied, that might inspire you to check out your score — and find ways to improve it if it could use some work.

Of course, boosting a credit score is something that can take time. Your payment history, for example, carries more weight than any other when calculating your credit score. And it can take time to establish a solid history of paying bills in a timely manner.

That’s why you may not go from a credit score of, say, 600 to a 700 or 750 in just weeks. Rather, it could take months. And you may find that your credit score rises slowly while you’re working to boost it.

But in some cases, even a modest increase could go a long way when it comes to your credit score. So if the idea of raising it by 100 points or more at a time seems daunting, focus on a smaller increase, like a 20-point boost. Even that sort of lift might make a nice difference.

What could a 20-point boost improvement do for you?

If your credit score is already very high, then a 20-point increase may not do much. Any credit score of 800 or above is considered excellent, according to Equifax. So if your score rises from an 810 to an 830, chances are, it won’t make much of a difference, because you’ll probably qualify for most loans or credit cards you apply for with an 810.

Similarly, if your credit score is a 500, which is poor, raising it to 520 may not help so much. Unfortunately, you’ll still be left with a score that might make it difficult to borrow when you need to.

But let’s say your credit score is a 720. Raising it to a 740 bumps it up from the “good” category, as per Equifax, to “very good.” Furthermore, you’ll usually need a minimum credit score of 620 to qualify for a conventional mortgage loan. So raising your score from a 605 to a 625 could spell the difference between being able to borrow to buy a home versus being denied.

Do what you can to raise your credit score

Boosting a credit score takes work, but there are steps you can take to make it happen. First, check your credit report and make sure it doesn’t contain errors that might present your borrowing history in a less favorable light. If you have a late payment on your credit report that’s not correct, getting it removed could help your score rise.

You can also boost your credit score by paying all bills on time. It will take a series of timely payments to have an impact, but in time, you should see a difference.

Finally, try to pay off some existing credit card debt if you’re carrying a balance that’s high relative to your total credit limit. Doing so could lower your credit utilization ratio, which is another measure used to calculate your credit score.

The higher your credit score, the more borrowing options you have. But don’t stress if your score doesn’t jump by 100 points overnight. You might see it rise slowly and steadily, and that’s to be expected.

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Before buying a house, you should read this advice from Dave Ramsey. 

When you are buying a home, you need to think about the purchase as both an investment and a place where you’ll live with your loved ones.

That means you need to be smart about what property you purchase in order to maximize the chances that your home will go up in value. If your property appreciates, you can then sell it at a profit when you move, generating more than enough to pay off any remaining mortgage loan balance and ideally leave you with some cash left over.

If you want to maximize the chances your property will end up being worth more than you paid for it, finance expert Dave Ramsey has some advice for you.

Ramsey suggests finding a home that has room to grow in value

On Facebook, Ramsey recently made a simple suggestion that would-be homeowners should take a look at if they want to make sure they’re making a solid investment when buying their home.

“When searching for a home, look for the least expensive house in the best neighborhood you can afford,” Ramsey suggested. “The strategy of buying a home on the less expensive side of a neighborhood’s range will give your home’s value the most room to grow while still allowing it to be appealing to buyers later on.”

Ramsey explained this is a good strategy because most people who are looking to live in a neighborhood with homes at a particular price point — such as $300,000 — are not going to be interested in buying a house that’s priced at $500,000. They’re going to want a home that’s comparable in value to the others around it, or even priced a little bit below it.

Is Ramsey right?

Ramsey’s advice is very common in the real estate world and it is definitely advice that you should follow.

If you buy the most expensive home in a given area, you’ll narrow down your pool of potential buyers. Most people looking locally won’t be able to afford it, and those who are seeking homes in that price range will likely want to be in a better neighborhood where they don’t stand out from the crowd.

If you buy the least expensive house, though, you will get the benefit of the neighborhood’s location and amenities but at a lower entry price. You will have a wider pool of buyers who can afford to purchase your home later. And, your home will look like a bargain compared to the others on offer, so people who are stretching to get into a given neighborhood will be more attracted to it.

You also have room to make improvements without over-improving the house for the neighborhood. That means you can make the space better for your family without worrying about not making your money back.

So, when you’re looking for houses, be sure to keep Ramsey’s advice at the top of your mind and always be on the lookout for the bargain property in the best neighborhood you can afford.

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There are still places to get test kits for free. 

It’s been three years since the first case of COVID-19 was confirmed in the U.S. Since then the world has seen significant changes, such as social distancing, lockdowns of schools and businesses, and major economic repercussions. While the COVID-19 scare has quieted, it’s still a deadly virus. Getting tested for COVID-19 is one of the best ways to protect yourself and your loved ones. Luckily, there are many avenues available to access free testing before funding expires May 11. Here’s how you can stock up on free COVID-19 tests before time runs out.

Government assistance

Several government agencies have set up programs specifically devoted to helping people get tested for COVID-19. The United States Department of Health and Human Services (HHS) has provided funding for states, tribes, territories, and localities to set up testing sites in their communities. There are currently over 15,000 free testing sites available that anyone can go to, including those with no health insurance.

In addition, every U.S. household is eligible to order four free at-home COVID-⁠19 tests. Shipping is free as well. All you need to do is visit covid.gov/tests to order your free tests. Only residential households in the U.S. are eligible. Originally the limit was one set per household, but families were allowed to order another set after December 19 of last year. If you didn’t order your second free set, make sure you do so today.

Free COVID testing in your local community

Many local communities have implemented programs that offer free COVID-19 testing to residents. These tests are generally offered at no cost or with an insurance co-payment; however, those without insurance may still be able to access tests at a reduced or no cost. You can contact your local health department for more information on availability and eligibility requirements for these programs.

For example, Los Angeles County offers free COVID-19 testing at 339 different community centers. Free COVID tests are also available at health centers, long-term care facilities, schools, and other health clinics, making it more convenient for people who need a COVID test.

Insurance coverage

If you have health insurance from a private company or through a government program like Medicare or Medicaid, you are eligible for eight free at-⁠home tests each month for each person on your plan. You can get these free tests at a local pharmacy such as Walgreens or CVS, or order them online. They are either free when you purchase or order them online, or you will be reimbursed your costs by your insurance company.

Be aware that if you pay up front, these costs can add up for each person in your family, impacting your budget, so make sure to keep your receipt if you need to submit a claim to your insurance company for reimbursement. Insurance companies are required to reimburse you at a rate of up to $12 per individual test you pay for. Even if your health plan has a network of preferred providers, you can still get the free tests from retailers outside of your network. These COVID tests do have an expiration date, so it is important to use them before they expire.

Getting tested for COVID-19 is an important step in protecting yourself and your loved ones. Luckily, there are many ways you can get free COVID tests. From community programs offering free tests to buying tests covered by insurance, there are plenty of options available depending on your needs and financial situation. It’s important now more than ever that everyone has access to quality care — so don’t hesitate to look into these avenues if you need help getting tested!

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

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It’s important to ignore the noise and buzz, and stick to what you know. 

Whether you’re new to having money in a brokerage account or you’ve had one open for many years now, you might rely on outside advice to keep developing and informing your investment strategy. This isn’t necessarily a bad thing to do. In fact, it’s a good thing to learn from those who may have more expertise or knowledge than you do when it comes to investing.

The problem, though, is that there’s a lot of bad investment advice out there. And in an age of social media, it’s become easier than ever to access investment advice — even from people who shouldn’t be giving it.

That’s why you’ll need to be careful when it comes to building your portfolio. And it also pays to follow this tip from investing expert Graham Stephan.

Establish your own filter

In a recent tweet, Stephan shared the approach that Charlie Munger, a well-known billionaire investor, takes to buying assets. According to Stephan, Munger classifies all of his investing ideas into three boxes:

InOutToo hard

Stephan then went on to say, “Knowing which ideas to ignore is as important as knowing which ones to invest in.”

Now, this doesn’t necessarily mean you should pass up investment opportunities because researching them further is difficult and time-consuming. But one thing you shouldn’t do is succumb to the pressure to put your hard-earned money into investment advice that doesn’t make sense to you, or doesn’t sit right with you.

In fact, one essential rule all investors should stick to is to never invest in an asset you don’t understand. Let’s say you normally buy stocks, but there’s a specific company whose finances you just can’t wrap your head around. That’s a company worth passing on, even though it could end up making you wealthier.

Similarly, you may have been told repeatedly over the past few years that investing in cryptocurrency is a great way to get rich. But maybe you’re just not comfortable with that given how volatile the crypto market tends to be (it can swing even more wildly than the stock market, which is volatile enough in its own right). Or maybe you really just don’t understand how the crypto market works and how to make money there. In that case, passing on crypto is a better bet.

Carve out your own path

You can seek out and take advice on how to build a portfolio, and if you’re sticking to reputable sources, that can be a good thing. But you also shouldn’t hesitate to carve out your own path as an investor. Establish a strategy that works for you and your risk tolerance level, and ignore advice that just doesn’t speak to you.

A lot of people worry that by passing on trendy investments, they’re giving up a big opportunity to make money. In reality, a lot of those so-called “hot” investments fizzle out and result in losses. So ignoring that sort of advice and steering clear of peer pressure could set you on the path to success.

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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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