Money Management

Recognizing our mistakes is the first step to getting it right next time. 

2022 was more stressful than most years. You’d think that after 24 moves, I would have moving down to an art. Unfortunately, as the past six months have illustrated, I do not. We’ve been in our new house for six months now, and I just now feel like I can catch my breath and reflect.

One of the things I’ve thought about lately is how much money I’ve blown over these last six months. Here’s what I came up with.

1. I needed everything done right away

We left a house that I adored. Every nook and cranny had been customized to fit our taste. The first time I saw the home we purchased in Illinois was the evening the dogs and I moved in. My husband bought it while I was busy selling the old house.

Where beige walls meet beige floors

And here’s where I got into trouble. Without exaggeration, I can say that the new house was the plainest, most vanilla structure I’d ever seen. Sure, it had promise, but it lingered on the market because it was so stinkin’ unimpressive.

Everything was beige and barren. There wasn’t a single plant in the yard. The walls still had builders-grade paint on them, and the bedroom carpeting was that exact shade of light brown. Besides an attractive epoxy coating on the garage floor, the house did not have an ounce of personality.

If it hadn’t been for the fact that the hardwood floors were badly damaged, I might have guessed that no one ever lived here.

Darn that HGTV

I’ve watched plenty of home remodeling shows on television and always thought it would be fun to fill a house with a million little features that perfectly reflected our family. That’s one of the reasons we decided to buy this house.

And here’s the dangerous part: We had extra money sitting in our savings account, earmarked for home upgrades. I could not wait to get started on this Plain Jane of a structure.

I did not wait. Within a few months, everything had been done, from adding a new patio to landscaping and new flooring and paint. Even the front door was painted a warm, welcoming shade.

What makes me sick

Now that we’re done, I’m questioning the wisdom of needing everything done so quickly. Money just poured out of our bank account into the hands of contractors. I have never in my life spent so freely.

Yes, we had it to spend, but that’s not the point. I’m all about mindful spending in my “regular life,” so why did that go out the window following this move? After considering it for days, I finally admitted to my husband that I think I spent so much so fast because I was trying to distract myself from feeling sad.

We left a city that’s home to many of our closest friends, the place where my father grew up. It’s natural that there would be feelings.

Next time: The next time I want to make a purchase, I’m going to take a beat and ask myself how I think that purchase will make me feel. Emotional spending tends to lead to regrettable choices.

2. Too little shopping around

I didn’t want to waste time shopping for contractors. Once I met someone I liked, I hired them. I normally shop around for the best price on toothpaste. The fact that I did not bother to do more checking before hiring a contractor baffles me.

About halfway through projects, I finally broke down and got bids from several contractors, but I should have done that from the jump.

Next time: One thing I do in real life is quickly calculate how many hours I would need to work to pay for something. For example, if I decided that I needed a new set of dishes, I would break down my hourly income and determine how many hours of work it would take to pay for those dishes. I need to apply that strategy to large purchases as well.

3. I failed to use shopping apps

I have shopping apps at my disposal. There’s Flipp, an app that checks out tons of weekly circulars to tell me which grocery stores have the best deals on the items I need. RetailMeNot offers coupons and discount codes on everything from clothing to refrigerators.

And finally, GasBuddy tells me where I can find the cheapest gas prices near wherever I happen to be.

I spent months thinking I was too busy to spend a little time checking apps for lower prices, which, in retrospect, was ridiculous. It wasn’t until two days ago that it occurred to me how much money I could have saved.

Next time: I’ve decided to make app-checking habitual. Before starting the car or going online, I’ll check an app to see if I can find a lower price on whatever I intend to buy.

I’m watching my bank account more closely than usual right now, like you watch a toddler a little more closely after they take a tumble. If there’s a silver lining in any of this, it’s that today is a new day, and I’m starting with a clean slate. Recognizing the mistakes I made in 2022 is the best way to prevent them from happening in 2023.

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There’s still time to set and achieve a big financial goal for this year. 

The start of the year is when a lot of people set goals and get to work on them. Money goals are especially popular, as two-thirds of Americans planned on making financial New Year’s resolutions, according to an end-of-the-year survey by The Ascent.

But setting a goal is just the beginning. Sticking with it and achieving it is the hard part. Research by Strava even found that 80% of people with New Year’s resolutions have quit by February.

While that may seem discouraging, a lot of that has to do with how people choose and go after their goals. If you know how to do this, you can almost guarantee success. Suze Orman recently shared great advice on exactly how to complete personal finance goals in 2023. Whether you already have a goal in mind or you still need to come up with one, this strategy will help you achieve it.

Suze Orman’s strategy for reaching financial goals

Suze Orman shared her advice on financial goals in a recent Tweet. It’s simple and effective. Here’s what she recommends: “Pick one big goal that you want to achieve over the course of the year, and then break it down into smaller monthly goals that you can accomplish over a shorter period of time.”

For example, let’s say you want to bolster your emergency fund this year after hearing so much talk of a possible recession. You decide your big goal is to save $3,000 for your emergency fund. That would break down to a monthly goal of $250 — or a little more if you’re getting started now and want to have it done by the end of 2023.

Orman also suggests making your monthly goal a mantra you can repeat to yourself. Using the example above, you’d tell yourself regularly, “I will add $250 to my emergency savings this month.”

This is a great way to set and reach a financial goal, and there are a few reasons why:

You’re focusing on one major goal. If you try to attack several big goals at once, you risk spreading yourself too thin. It’s easier to stay on track with a single goal to work toward, and this ensures that the goal you choose is something that really matters to you.Smaller monthly goals serve as stepping stones. These help with motivation, since you’re checking off a smaller goal every month. They also keep you on track to reach your main goal in the timeframe you want.Everything’s measurable. It’s not something vague like “save more money.” Measurable goals allow you to track your progress and give you concrete targets to aim for.

There’s one thing Orman didn’t mention that’s also very important: Be realistic with your financial goal. It’s good to set your sights high, within reason. Your goal should provide a challenge, but also be something you can reasonably accomplish without drastic changes to your financial situation, like needing to double your income.

What if you have more than one goal?

The question that may come to mind is what to do if you have multiple financial goals you want to pursue. Orman is adamant that you should pick one goal you’re passionate about that will have a big impact on your life. She believes that having too many goals sets you up for failure.

She has a point there. It gets incrementally harder with each big goal you add for yourself. It divides your attention and makes it more likely that you won’t keep up with everything.

This is up to you, but there’s merit to putting your attention on one high-impact goal, such as eliminating credit card debt, building an emergency fund, or maximizing retirement contributions. You can still follow good financial habits in other areas. For example, if getting out of credit card debt is your main goal, you can also save for retirement. The former is what you’re focusing on, while the latter is a habit you follow.

Lots of people have trouble with financial goals, but you don’t need to be one of them. If you want to have the best odds of success, give Orman’s method a try. Choose one big goal and break it down into monthly steps. As long as you work on it consistently every month, you’ll be happy with your results at the end of the year.

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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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TikTok is great for discovery, but not so much for follow-ups. 

TikTok, a social media platform, has millions of U.S. users. Most scroll through for the laughs, but TikTok is more than a scrollable laugh track. Folks listen to the advice of their favorite streamers on topics ranging from “best burger joints” to “how to build a budget.”

According to a study by Personal Capital, more than half of TikTok users turn to the platform for financial advice. But the same study concludes that only 41% of financial TikTok (FinTok) users fact-check the advice they get through the app.

Why is that?

TikTok isn’t built for deep dives, and it doesn’t allow creators to link directly to their data sources. Creators must paste long, unfriendly links that users then have to copy and paste into Google to search. Linking is tedious for everyone.

Plus, TikTok videos are short. The platform promises users short videos, so most posts are between one and three minutes long. And a whopping 55% of survey respondents said they go to TikTok for financial advice because creators make it digestible. That’s not an entirely bad thing, but it discourages content creators from diving into important details of the financial advice they’re giving.

Worst of all, TikTok users tend to fall for the bandwagon fallacy. In fact, 66% of FinTok users used the number of likes to determine whether a video was trustworthy, according to Personal Capital. Users should consider digging deeper to determine trustworthiness.

It’s not feasible to google every piece of financial advice TikTok gives you. An easier, quicker alternative is checking your sources for a minute or two.

Check your sources

Users who open the app for financial advice should, at the very least, type the names of their favorite personal finance gurus into Google. Do they have a background in finance? Do they put their money where their mouth is? If not, take their advice with a grain of salt and do some extra independent research.

TikTok isn’t a bad place to find financial advice. An app that makes financial literacy accessible is a great thing, a net benefit for society. The trick is ensuring you’re on the “right” side of TikTok. You want helpful wisdom, not view-trolls shrieking for attention.

Curate your feed

TikTok works by showing users a series of videos. The more videos users like, the better TikTok curates. Following a creator boosts the number of times a user encounters that creator’s content. Users can limit their likes and follows to trusworthy TikTok money experts to keep their feeds informative and nonsense-free.

Also Do check out the comments section below the video. Better yet, google the content creator for a quick background check. It’s easy. And it’s better to be safe than sorry when setting up a savings account or paying off debt.

Consider alternatives

TikTok is like Las Vegas: What happens on TikTok stays on TikTok. When turning to TikTok for investing advice, users say they ended up following the advice only 30% of the time, according to Personal Capital. That suggests users may not find the advice actionable or trustworthy.

Financial literacy apps are great alternatives to FinTok. The best financial literacy apps can help users pay off debt or turbocharge savings. Users deserve the best advice when it comes to getting smart about money. Why limit yourself to TikTok?

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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.
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If you don’t follow this simple rule, you may have a hard time shopping. 

As someone who’s big on saving money and who’s constantly racking up giant credit card tabs in the course of buying groceries, I’m almost ashamed to admit that I never really thought to shop at Aldi until recently. I figured that between my digital couponing tendencies at my local ShopRite and my weekly Costco stock-up trips, I was doing my part to keep my grocery costs to a minimum.

But then I started doing some research, and I learned that Aldi could be a great source of savings when it comes to groceries. So I decided to give it a try.

Before heading over, I casually mentioned to a friend who shops at Aldi frequently that I was finally ready to check it out. “Bring a quarter,” she told me. And I’m really grateful she did, because as someone who rarely carries cash around and charges virtually everything on a credit card, I generally do not have spare change sitting in my wallet. But if you don’t bring a quarter with you to Aldi, you might have a really hard time doing your shopping.

Why you need that quarter

Many of us are used to walking up to a supermarket, grabbing a shopping cart, and loading it up with various grocery items. But at Aldi, you can’t access a shopping cart until you put down a $0.25 deposit. And you’ll only get that deposit back once you return your cart to the appropriate area.

If this seems like a silly practice, it’s actually not. See, it’s common for supermarkets to hire staff to round up shopping carts left all over the parking lot and return them to their corrals. I’ve seen that happen at stores like Costco and Trader Joe’s frequently.

But as Aldi explains on its website, the $0.25 shopping cart deposit it charges actually helps save customers money. Because Aldi requires customers to return their shopping carts to get their money back, the store doesn’t have to hire extra staff to collect shopping carts. And Aldi then takes that savings and passes it along to customers in the form of lower prices.

It’s kind of similar to Costco’s membership fee. Of course, that fee is well more than $0.25, and you don’t get your money back. However, Costco uses that fee to offset its costs so it can offer consistently low-priced items to members.

Aldi is trying to do the same thing, only it doesn’t make you pay a fee. It doesn’t even keep your $0.25. So all told, it’s a pretty reasonable practice.

Know before you go

If you’re new to shopping at Aldi, you should know that you’ll need that quarter to access a shopping cart. So make sure to stick that change in your wallet along with your credit and debit card. That way, you won’t have to stumble around the store trying to juggle multiple items in your hands, which could make for a pretty awkward and uncomfortable shopping experience.

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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 positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Managing your credit is essential, no matter your age. 

It’s beneficial to start learning essential personal finance skills in your twenties. The sooner you establish your credit and get more comfortable managing your money, the better off you’ll be in adulthood. Using credit cards with care is essential so you don’t harm your credit or rack up debt. But you can learn how to avoid making costly mistakes. These are the worst credit card moves you can make in your 20s.

1. Not opening a credit card

Many young adults fear using credit cards because they assume they’re risky. Credit cards can be dangerous if you rack up debt and aren’t careful. But if you use your credit cards carefully, they’re a helpful financial tool. Credit cards can help you build credit and teach you valuable money management skills.

If you haven’t yet gotten your first card, that’s a mistake. Your 20s are an excellent time to open up your first credit card so you can learn how to use them to your advantage. Are you looking to open your first credit card? Here’s a list of the best credit cards for young adults.

2. Only making minimum payments on your cards

Pay attention to the total balance when you get your credit card bill. You’ll be charged interest if you only make the minimum payment you owe. Most credit card interest rates are high. Those fees can add up, and the debt can quickly pile up. Pay the entire card balance off every month. When you do this, you won’t be charged interest and won’t be at risk for accumulating debt.

3. Not paying attention to credit card fees

It’s possible to avoid being charged credit card fees, but you need to know what they are. Before opening a credit card, make sure that you review the card details to understand all of the potential fees. Here are some examples of common credit card fees to be aware of:

Annual feesLate payment feesForeign transaction feesCash advance fees

If you make the right moves, you can avoid being charged extra fees like these. When it comes to annual fees, not all cards charge them. No annual fee credit cards are available if you’re looking for an affordable credit card with no yearly fee. And if you know you’ll be using a credit card while traveling outside the country, consider the best travel cards, many of which don’t charge foreign transaction fees.

4. Not monitoring your spending habits

No matter how you’re paying for something, it’s always a good idea to monitor your spending habits. However, when using credit cards, you must be aware of your spending because you’re using borrowed money that isn’t yours and will need to pay it back.

Make sure that you pay attention to your card usage. The best practice is only to charge what you can afford to pay off, so you don’t fall into credit card debt. If you struggle with overspending, you can set up spending limit alerts through your card issuer. Another option is to use budgeting apps to monitor your spending.

5. Paying your credit card bills late

Now is the time to develop responsible spending and payment habits. When you pay your credit card bill late, your card issuer will charge you a late payment fee. Fees like this are a waste of money. Another reason it makes sense to pay your credit card bills on time is that your payment history is one major factor that makes up your credit score.

Payment history makes up 35% of your FICO® Score, so making late payments can lower your score. Make sure you stay on top of your payments to avoid negative marks on your credit. You can set up automated payments through your card issuer if you’re forgetful.

Use credit cards to your advantage

Don’t avoid credit cards if you’re in your 20s and want to improve your personal finance skills. Open a credit card, learn how to use it well, and start building your credit. Those with a good credit score are more likely to qualify for better financing options for mortgages, auto, and personal loans, so it pays to care about your credit now. Review our list of the best credit cards to learn more.

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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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Did you know you can make money by shopping online? 

Shopping online is a great way to save time and money, but sometimes it can be hard to find the best deals. Thankfully, there are a few web browser extensions out there that can help you save even more when shopping online. Here are three of the most popular extensions that work on Chrome, Firefox, Safari, or other popular browsers that can help you keep more money in your savings account while shopping online. This can help you stay on budget while also earning rewards.

1. Rakuten

Rakuten is a free extension where you can get cash back for shopping at over 3,500 stores as well as find coupons. Stores pay Rakuten a commission when you buy through their website, the Rakuten app, or through the extension. Rakuten then shares the commission with you via check or PayPal. Rakuten has paid out over $2.2 billion dollars to 15 million members, and the average member earned $63.50 in cash back in 2020. If you’re shopping for a specific item, Rakuten will look for the best price in their network of stores. In addition, Rakuten offers exclusive coupons and cash back deals.

2. PayPal Honey

Honey is one of the most popular browser extensions for saving money while shopping online. It works by automatically searching for coupon codes while you shop at over 30,000 online sites, including for stores like Walgreens and CVS. At checkout, the extension will find working coupon codes and then apply the one with the biggest savings. If you’re shopping on Amazon, the extension can even search for better prices on Amazon. In addition to saving money, you can earn PayPal Rewards when you purchase items using Paypal, even if there isn’t a code available. Honey will also alert you when it finds coupons and discounts for products in your wishlist.

3. CamelCamelCamel

CamelCamelCamel’s Camelizer is an Amazon-specific browser extension that helps shoppers find the best deals on Amazon products. The extension monitors Amazon prices and sends notifications whenever products drop in price. It also shows the price history of millions of Amazon products to make sure that you’re always getting the best deal possible. The extension even features special promotions like Amazon Prime Day offers or Lightning Deals, helping you maximize your savings.

These three browser extensions can help make sure you’re always getting the best deal possible when shopping online. There are also plenty of other extensions, such as Capital One’s Shopping extension, CouponCabin, Ibotta, and more.

From finding coupon codes with PayPal Honey to tracking price drops with CamelCamelCamel, these extensions make it easier than ever to save money online. You can install one (or all!) of them today to see which one offers the best deal while you shop.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Amazon.com and PayPal. The Motley Fool recommends the following options: short April 2023 $70 puts on PayPal. The Motley Fool has a disclosure policy.

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