Money Management

Be sure you know all of the HOA rules before you buy in a neighborhood with an association. 

A short time ago, I purchased a home in a neighborhood where there is a homeowners association. Buying in a neighborhood with an HOA means there are monthly dues to pay on top of regular mortgage payments. There are also some rules that homeowners have to follow.

Many of the rules are designed to help keep up property values or ensure that neighbors don’t bother each other. For example, you have to keep your garage doors closed most of the time, you can’t leave your trash cans out for too long, and you have to keep up with basic property maintenance tasks.

There’s also one really unusual rule, though, which I haven’t heard about in too many neighborhoods besides the one I live in.

This odd HOA rule makes my neighborhood stand out

The strange rule that we have to follow in our neighborhood is a requirement that we spend $75 per month on food at the local onsite restaurant.

See, my neighborhood has a country club and golf course attached — and there’s a residents-only clubhouse with a restaurant located within it. Every resident of the country club neighborhood has to pay $75 per month in dues that is earmarked for restaurant spending, along with the other dues that we owe. You then get a credit on your account for the $75 and can go to the restaurant and spend your credit by charging the food to your account.

This requirement is, presumably, in place in order for the neighborhood association to offer the amenity of an onsite restaurant without risking money loss. Since every resident either has to spend $75 per month there (or they lose the money they were required to pay), the restaurant has a built-in customer base and won’t end up in the red.

Be sure to read the fine print on your HOA

I was aware of this requirement before moving into the neighborhood because we read the details of the HOA agreement. And I was OK with incurring this cost because the neighborhood offers lots of other features we liked, it was in a good location, and the restaurant is actually pretty good in terms of its food offerings.

Had I not taken the time to learn the details of the association requirements, though, it would likely have come as a shock to me that a neighborhood required me to eat at a certain restaurant once a month or lose money for not doing so.

This quirky rule just goes to show how important it is to pay careful attention to HOA requirements before buying in an association neighborhood. These requirements can go beyond what you might expect and if you are surprised by some of the mandated fees when you move in, they could put unnecessary strain on your budget.

Before you make an offer on any home, alway find out if there is an association, what your cost will be, and what it covers so you don’t find yourself with something unexpected like a restaurant bill you didn’t count on.

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Living gluten-free doesn’t have to mean struggling to find good eats. 

Following a gluten-free diet is not an easy thing to do. It can make eating at restaurants a challenge, and it could easily put a strain on your budget.

In fact, you may find that your credit card bills start to soar once you swap standard grocery purchases for those that are gluten-free. But if you have a medical condition that requires you to go this route, then you may have no choice but to pay up.

Thankfully, Trader Joe’s carries a host of gluten-free items you may find appetizing. And because Trader Joe’s is known for its competitive prices, you may find that these buys don’t even break the bank.

1. Gluten-Free Pizza Crusts

Making your own pizza can be a heck of a lot less expensive than ordering one in — especially if you need yours to be gluten-free. Trader Joe’s sells frozen gluten-free pizza crusts for $5.99 a pop. Pile on the toppings and enjoy a feast at a fraction of the cost of a delivery order.

2. Gluten-Free Breaded Shrimp

The problem with most types of breaded shrimp — or breaded anything, really — is that it’s apt to not be friendly to anyone who’s gluten-free. Trader Joe’s, however, offers a 12-ounce package of gluten-free breaded shrimp for $9.99. You can cook it with a grain that works for your diet and layer on vegetables for a hearty, robust meal. You can also find gluten-free pasta to mix it into.

3. Gluten-Free Mac & Cheese

Macaroni and cheese is the kind of emergency meal it always pays to have on hand, whether for yourself or for your kids. And if you need that meal to be gluten-free, you’re in luck. Trader Joe’s sells a 12-ounce package for just $3.69. It features a delicious four-cheese blend as well as a gluten-free bechamel sauce.

4. Gluten-Free Joe-Joe’s Chocolate Vanilla Creme Cookies

If you’re a fan of Oreo cookies, then you’re apt to love Joe-Joe’s. They’re basically the Trader Joe’s version of an Oreo. And you can find a gluten-free version of them at the store so you can satisfy your cravings for something sweet without having to spend a small fortune at your local gluten-free bakery (if such an establishment even exists in your neck of the woods). A 12.5-ounce box of gluten-free Joe-Joe’s will cost you just $4.29, which is comparable to the cost of a standard box of cookies.

5. Gluten-Free Granola Loaded Fruit & Nut

Many breakfast cereals unfortunately are not devoid of gluten. If you’ve been struggling to fill your cereal bowl, check out this delicious Trader Joe’s concoction. It features coconut, raisins, apricots, and a host of other yummy ingredients. A 12-ounce box costs just $3.99.

Whether you follow a gluten-free diet because you want to or because you need to for medical reasons, you don’t have to spend down your checking account on groceries to stay well-fed. All you need to do is load up the next time you pay a visit to Trader Joe’s.

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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.Maurie Backman 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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Are the rewards credit cards in your wallet meeting your needs? 

Credit cards make for an easy way to pay for purchases. And if you have the right credit cards in your wallet, you can also use them to earn rewards when you spend money. However, not every rewards credit card is a good fit for everyone. It’s essential to choose credit cards that meet your needs to maximize the value you get from them. Keep reading to find out how to ensure your rewards credit cards are worth it.

How you spend your money matters

When choosing a credit card, you should consider your usual spending habits. If you typically use credit cards to buy groceries and household essentials and hardly dine out, it likely doesn’t make sense to use dining rewards credit cards.

Look for a credit card that will reward you for the spending you already do to maximize your rewards potential. If the current cards in your wallet aren’t rewarding you for your everyday purchases, it may be time to explore other credit cards.

Decide what rewards you want to earn

You also want to ensure that your rewards credit card offers the type of rewards you want. Otherwise, your rewards may go to waste. Do you prefer a simple, stress-free, cash back rewards approach? Cash back credit cards may be best for you.

But a travel credit card may be better if you want to earn points or miles that you can redeem for free travel. A worthwhile rewards credit card offers rewards you will use. If you’re new to earning credit card rewards, you might consider a card with flexible redemption options.

Make sure the benefits are worthwhile

Some rewards credit cards are jam-packed with benefits, while others offer fewer perks. But even if your cards come with many perks, they’re only valuable if you use them. For example, someone who flies often may use airport lounge benefits. But if you’re not a traveler, this perk may be a waste. That’s why choosing a credit card with benefits that matter to you is essential. Review your current credit cards and ensure you’re using the perks offered.

Don’t forget to research fees

It’s best to consider the cost of using a rewards card. If it has a hefty annual fee, will you get enough value from the card to make it worth it? Charging what you can afford and paying the entire balance is an excellent way to avoid paying costly interest charges. But being aware of all potential fees, including the interest rate and annual fee, is essential and can help determine if a particular card is worth the investment.

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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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You might think you’re entitled to this deduction when you actually aren’t. 

Most of us would like to pay as little money in taxes as possible. And snagging the right deductions could make that possible.

There are different items you’re allowed to deduct on your tax return, like IRA account contributions and the interest you pay on your mortgage. But one often-misunderstood tax deduction is the home office deduction.

These days, a lot of people work from home in some capacity. If you’re one of them, you may be eager to score a tax break for having a home office when you file your taxes. But that doesn’t mean you’re eligible for this particular benefit.

Who can claim a home office deduction?

It’s a big misconception that anyone with a home office can write it off on their taxes. To claim this deduction, you must be self-employed. Period. If you’re a salaried worker, you cannot claim a home office deduction — even if you work from home 100% of the time.

With that in mind, you’ll still need to meet two criteria to claim a home office deduction if you’re self-employed.

First, your home office’s primary function should be to serve as a workspace. If you typically work at your kitchen table, that doesn’t count, because the primary function of that room is to prepare and store food.

However, if you have a four-bedroom home, and one bedroom is equipped with a desk, chair, electronics, and everything else you need to do your job, then that counts. And for the record, yes, your child can occasionally sit at your desk to do their homework, and you’ll still be entitled to the deduction. The IRS just wants the main function of the area in question to be an office.

The second criteria is that your home office must constitute your primary place of business. If you rent an office in town but work from your home office once a week, it won’t count.

How to calculate your home office deduction

You have two options for determining how much you can claim for your home office deduction. The easiest option is to use a simplified method, which lets you claim $5 per square foot of space, up to a maximum of 300 square feet, or $1,500.

But in many cases, it makes more sense to figure out what percentage of your home your office takes up, and then deduct that portion of your total home expenses. So let’s say you own a 2,000-square-foot home and your office takes up 200 square feet, or 10%. What you’d then do is add up costs like utility bills, property taxes, maintenance, and so forth, and then deduct 10% of that total.

It’s a good idea to run the numbers using both methods to see which one results in a higher home office deduction. In this example, the simplified method would give you a $1,000 tax break ($5 per square foot x 200 square feet of office space). But let’s say you spend a total of $20,000 a year between property taxes, utilities, maintenance, and other costs. If you’re able to deduct 10% of that total, you get a $2,000 deduction, which makes more financial sense.

Know the rules

The home office deduction can be a very lucrative tax break, but it’s important to know the rules involved. And if you’re not sure if you can claim it, do yourself a favor and consult a tax professional so you don’t end up claiming the wrong deduction, or taking a deduction you aren’t actually eligible for.

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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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