Money Management

Talk about a tough schedule to uphold. 

Many workers have been struggling with higher living costs for well over a year now. We can thank raging inflation for that.

If you’ve spent the better part of the past 12 months crunching numbers, clipping coupons, and sadly watching your savings account balance dwindle, you’re not alone. And you may also be eager to boost your income to compensate for inflation.

For many people, that means getting a side hustle. But in a recent Monster report, 37% of workers admitted to having more than one full-time job. Not only that, but 57% of workers said they’d consider having more than one full-time job.

Of course, holding down more than one full-time job may be doable. But is it a good way to live? Probably not. And maintaining that schedule could have negative consequences in time.

Your mental and physical health could suffer

In the survey, 80% of those working more than one full-time job said they do so because they need more money than what one full-time job offers. And 44% say they want a backup plan in case they’re laid off.

These reasons make sense. But if you hold down multiple full-time jobs for too long, you might impact your mental and physical health for the worse.

Having no downtime just isn’t healthy. It can easily lead to full-blown job-related burnout. But if you’re holding down more than one full-time job, you’re probably working every single hour you aren’t showering or sleeping.

And speaking of sleeping, if working more than one full-time job is causing you to lose out on shut-eye, the health effects could catch up to you over time. The result? Not only your physical suffering, but also, costly medical bills.

A better solution when one job won’t cut it

If your full-time job isn’t giving you a robust enough paycheck to cover your living costs, and you really don’t have expenses to reasonably cut back on, then it’s easy to see why you may feel compelled to get yourself a second full-time job. But before you go that route, look into different side hustle options.

Some side hustles can be quite lucrative, especially if you have the right skills or learn to be really efficient. Let’s say you’re great with computers and can update a basic website in less than an hour. If you charge clients $100 apiece for a website update, you might manage to earn enough money to meet your financial needs without having to commit to a second job that requires you to maintain a full-time schedule.

Don’t take chances

Working more than one full-time job could yield some positive financial results at first. It might allow you to pad your savings, pay off your credit cards, and finally have enough money to cover your bills without stress.

But holding down multiple full-time jobs isn’t really a healthy way to live. And so if that’s a situation you’re in or are contemplating, you may want to rethink it.

Not only might multiple full-time jobs lead to burnout, but you might land in the position where you end up failing at your jobs — and losing them. Rather than run that risk, find a job with growth opportunity to focus your efforts on. And then work gigs on the side to supplement your income as necessary.

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Are you investing in either of Sethi’s favorite accounts? 

When choosing what to do with your retirement investments, there are a lot of different kinds of accounts out there. If you’re having a hard time deciding which ones are right for you, considering the advice of experts could be helpful.

Ramit Sethi is one expert worth listening to. The author of I Will Teach You to Be Rich recently tweeted about two retirement investment accounts he loves. Here’s what they are.

The two accounts Sethi says are great options for retirement investing

“I love 401(K)s and Roth IRAs,” Sethi tweeted, naming two kinds of retirement accounts that he believes retirement investors should look into.

Sethi sent the tweet in response to another comment made on Twitter by an insurance company that suggested “the rich avoid the 401k and Roth IRA like the plague.” In response to this assertion, Sethi signed his tweet endorsing the 401(k) and Roth IRA from “an actual rich guy (not an insurance salesman).”

The finance guru’s advice on this issue is important to listen to because it highlights a big problem. He’s made clear that he believes some advisors would steer you toward financial products that aren’t really in your best interest rather than toward accounts that can actually be helpful in growing your wealth. And he suggests that many unscrupulous advisors may do this because “scammers can’t make commissions from your 401k.”

Should you listen to Sethi and invest in a 401(k) or Roth IRA?

Sethi is absolutely right in endorsing both the 401(k) and the Roth IRA as great investment options. And he’s also correct that you should be wary of anyone who suggests these accounts aren’t worth investing in while trying to sell you other financial products.

A 401(k) is a workplace retirement plan many employers offer. Contributions can be made with pre-tax dollars and are sometimes matched by your employer. These plans are extremely easy to contribute to because money is taken right out of your pay before you get your check, and you have a narrow range of safe investments to choose from.

A Roth IRA, on the other hand, can be opened with a brokerage firm you pick. Your employer doesn’t need to help you get it set up, so you can use this account if you don’t have a workplace plan. You will contribute with after-tax dollars, but you will be able to make tax-free withdrawals in retirement as long as you follow some basic IRS rules. You can also invest in just about any asset your brokerage offers.

Both of these accounts come with generous tax breaks and limited or no fees. They are widely recognized as some of the best kinds of investment accounts out there, and you should absolutely be taking advantage of one or both of them depending on whether you expect your taxes to be higher now (and are better off with the upfront tax break of a 401(k) or later in retirement (and are better off with the deferred tax break from a Roth IRA).

So, as Sethi said, don’t listen to scammers who try to steer you away from them. Put your retirement money into the accounts the government incentivizes so you can watch it grow without unnecessary complications and fees.

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Financial podcasts can teach you new skills to improve your financial situation.   

While most schools don’t prioritize teaching personal finance skills, that doesn’t mean there aren’t opportunities to learn more outside the classroom. There are many free resources available that can help you understand financial topics more easily. Listening to podcasts is one way you can improve your knowledge around money. Keep reading to find out which financial podcasts can help you master your money.

1. Financial Feminist

Tori Dunlap is a New York Times-bestselling author, investor, social media influencer, and money coach. In addition to sharing money tips in her book and on social media, Tori hosts the Financial Feminist podcast. Her content aims to help listeners, especially women, make more, spend less, and build wealth. If you want to fight the patriarchy and feel more confident about your financial abilities, give Tori’s podcast a listen.

2. So Money with Farnoosh Torabi

Another podcast that can educate you more about important financial topics is So Money with Farnoosh Torabi. Farnoosh’s episodes feature candid conversations that can teach you how to live a happier life. She frequently talks with business experts, authors, and influencers. Her podcast covers various financial topics, including saving strategies, how to get out of credit card debt, and wealth-building strategies.

3. Afford Anything

Afford Anything is a financial podcast hosted by Paula Pant. She helps listeners make smarter money decisions by encouraging them to think in new ways. Through her episodes, you can discover how to recognize your own behavioral blind spots and make different financial decisions to build a more meaningful life. If you’re interested in the psychology of money and are ready to make changes in your life, this podcast may be a good fit for you.

4. Girls That Invest

Simran Kaur and Sonya Gupthan are two millennial investors and best friends who break down complex investing topics, making them less intimidating and easier to understand. They hope to make wealth-building accessible to everyone, especially women and minorities. If you like conversational podcasts and want to learn more about investing, give Girls That Invest a listen.

5. How to Money

Another financial podcast you may want to check out is How to Money. Joel Larsgaard and Matt Altmix are best friends that co-host together. They discuss jargon-free money tricks and tips to help everyday people master their money. Topics covered include how to pay off debt, credit card rewards, budgeting, what to expect when buying a home, and tax-saving strategies.

6. Motley Fool Money

The Motley Fool has a podcast called Motley Fool Money. Host Chris Hill sits down with a team of investment analysis to discuss financial news, investing trends, and long-term investing strategies. This is a good podcast to try if you want to boost your investment knowledge and stay up to date on trending investment topics.

It’s never too late to learn more about money

If you want to take control of your finances, it’s never too late to expand your knowledge. Taking advantage of free educational resources, like the financial podcasts mentioned above, can help you feel more confident about how you manage your money. Check out these personal finance resources for additional guidance about essential everyday money matters.

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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. Natasha Gabrielle 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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Are we all banking wrong? 

Money is a very touchy topic. We all want to think we’re doing what’s best for our finances — and few of us want to hear that we’re doing something wrong. But, according to personal finance guru Graham Stephan, millions of us are doing something very wrong indeed. Something that could collectively be costing us billions.

What huge mistake is so universal? As it turns out, around half of us are actually keeping our money in the wrong banks. And we’re losing out big time.

Big banks = low interest rates

The five highest-yielding banks paid out a reported 2.14% in 2022.

Unfortunately, these aren’t the same banks that make up the top five when it comes to market share. And those banks have an average savings account interest rate well below that 2.14% mark.

JP Morgan Chase: The largest bank in the U.S. by market share, Chase has terrible rates. Its typical account offers just 0.1% interest, and even its higher-tier account caps out at 0.2%.Bank of America: Second on the list, BoA offers the same sad 0.1% rate for its base savings accounts. If you have more assets and a great relationship, you can get up to 0.4% — which is still pretty sad.Wells Fargo: No. 3 has slightly better rates — with lots of emphasis on “slightly.” The standard rate for a Wells Fargo savings account is just 0.15%, though it can go as high as 0.25% if you deposit at least $1 million.Citibank: So, No. 4 is our exception that proves the rule. Citi has a nice big 3.85% APY on its savings accounts, putting everyone else on this list to shame. Shame!U.S. Bank: Another major bank with a major interest rate problem, U.S. Bank’s basic savings account rate is just 0.1%. With an elite account (and at least $500,000 in savings), you can boost that up to a measly 0.75%.

As you can see, with the exception of Citibank, the top five are likely in the bottom five (or four) if you go by interest rates, with some of them paying out less than a tenth of what the high-yield banks pay out.

Little percentages add up to big earnings

When you’re comparing interest rates, it can be easy to get misled by the tiny little percentages you’re looking at. I mean, is 2% really so much better than 1%? It’s a single percentage point!

Yes. It really does make a difference. And that difference gets bigger the more money you have saved up. Here are some numbers to consider:

Alright, so you’re definitely not going to retire on the interest you earn with your savings account. (That’s why most experts tell you not to keep the bulk of your savings in a regular bank account; they suggest you invest it instead.)

But — it’s basically free money! If you’re going to plop your emergency fund in a savings account, shouldn’t you want that money to be in the best possible account for it to grow?

Yes. The answer is yes.

So, what’s the solution? Change banks!

Online banks often have the highest rates

As a general rule, brick-and-mortar banks — those with physical bank branches — pay out the lowest interest rates (excepting Citibank — we see you!). But if you’re willing to go with an online bank (banks without physical branches that do everything online instead), you can typically get a much better rate.

The reasons are varied, but often come down to overhead and market share. For one thing, online banks aren’t spending money staffing and maintaining all those branches. This cuts down the overhead significantly, allowing them to offer better rates.

And then there’s market share. The five biggest banks — or, arguably, any bank in the top 10 — already have tons of customers. This means they have tons of deposits. So, anything they want to do, they likely already have the necessary capital on hand to do it.

Smaller online banks, well, don’t. That’s a big incentive for them to try and lure in new customers (and, thus, new deposits) by offering higher interest rates than their competition.

Switch banks to make bank

In summary, if you’re keeping your money at a big national bank, chances are good you’re missing out on lots of potential interest. This could mean hundreds of dollars a year that you’re not earning on your savings. (Multiply that by the millions of people missing out and you get that “billions” number Stephan used.)

The best way to combat low interest rates is to switch to a bank with better rates. Online banks tend to have some of the best rates. Plus, many banks offer sweet new account bonuses that make the switch even more lucrative.

Keep in mind, you don’t need to switch over every single account. If you like your checking account, leave it alone. If you’re happy with your retirement account, don’t mess with it. But if you’re earning a sad little 0.1% on your savings account — consider moving it to a new bank that values your savings as much as you do.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Bank of America 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 no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and JPMorgan Chase. The Motley Fool has a disclosure policy.

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The financial guru makes his stance on the matter pretty clear. 

Have you ever sat through a timeshare presentation — perhaps based on the promise of free theater tickets or another nice perk in exchange for giving up an hour or two of your day? You may have gone into that presentation thinking there’s no way you’re about to remove a chunk of money from your savings account to put down on a timeshare.

But the people who sell timeshares can be very persuasive. And you might actually find yourself contemplating a purchase.

While timeshares can work out for some people, financial expert Dave Ramsey says they’re worth avoiding. In fact, he even goes so far as to call timeshares a “real estate trap.”

The problem with timeshares, according to Ramsey

You might argue that buying a home can constitute a great investment. Now the reality is when you go to sign that mortgage loan, your goal should be to put a roof over your head, not to make money. But still, home values can increase over time. Ramsey argues, however, that this doesn’t happen with timeshares. Because you don’t own a piece of property outright, you can’t really treat a timeshare as an investment that might gain value.

Plus, timeshares can be very difficult to sell — namely because you’re not selling a piece of property, but rather, the option to use one. And also, timeshares come with ongoing maintenance costs. Those might turn prospective buyers away.

And speaking of timeshare fees, those, warns Ramsey, have the potential to rise over time. And you’ll be stuck paying them even if you don’t use your timeshare due to a range of circumstances, from not being able to get away to wanting to try out a new destination.

Not only can timeshares be difficult to sell, says Ramsey, but they can also be tough to rent out. Many timeshare companies don’t allow you to do that. And even so, you can only rent your timeshare for the weeks you’re entitled to it. That gives you a narrow window.

Finally, if you can’t pay for your timeshare outright, you’ll need to finance it. And that could mean paying a lot of interest on a loan.

Don’t throw your money away

It’s easy to see why you may be motivated to buy a home you live in full time. But there’s a big difference between buying a home and buying a timeshare. And the latter is something that Ramsey strongly cautions against.

Remember, over time, your vacation-related tastes and needs might change. And if you buy a timeshare, you might end up leaving yourself with fewer options.

Imagine you have a timeshare in Florida, only you’re tired of Florida and you’d rather visit an island instead. If you can’t find someone to do a timeshare swap, or figure out another arrangement, guess what? You might get stuck going to Florida.

To be clear, there’s nothing wrong with Florida. The point, rather, is that timeshares can be very restrictive and turn something that’s supposed to be fun — a vacation — into a source of stress. And so it’s not worth spending your hard-earned money on a purchase you might end up sorely regretting.

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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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