Money Management

Remember to be kind to yourself as you look for a new job. 

As the No. 1 job site for hand-screened remote jobs, FlexJobs is in a position to know the types of things that capture an employer’s attention. It also recognizes the issues that may cause an employer to toss your resume to the side. Recently, FlexJobs shared its top 12 tips for job seekers with The Ascent. Here’s what they are.

1. Update your resume

If it’s been a while since you polished your resume, it may be time to update it by adding any new skills and experiences that may be missing.

Before sending your resume out, ask someone you trust to look it over and offer their honest opinion. Are there things you should cut or anything you’re missing? Is it neat and easy to read? Would they want to hire you if they received your resume?

Finally, customize your resume to align with each job you apply for. Let’s say you’re applying for a remote position. Highlight everything about your past experience that lends itself to working remotely. For example, you may point out the organizational skills it took to master one job or the self-motivation you showed in another.

2. Clean up social media

Recruiters and hiring managers regularly check social media to better understand who you are and what you offer. If there are photos of a drunken trip to Cancun or nasty comments about an ex-partner, get rid of those. Going forward, you may want to consider how anything you post to social media will reflect on you the next time you want a promotion or meet your significant other’s family.

3. Solidify your professional brand

To create your own “brand,” find a way to highlight your skills and experiences. That may mean setting up a social media account dedicated to your professional accomplishments. Think you don’t have enough experience to share? You do. Even if you’re just starting out, you’ve certainly picked up skills that employers can use.

Talk about what you’ve learned on the job. Repost articles about what’s going on in your field. Ask open-ended questions that inspire others to engage. For example, if you’re in banking, ask followers to share the most challenging customer service experience they’ve ever dealt with.

4. Find a mentor

The perfect mentor is someone a few years ahead of you on the career ladder. Meet with them on a regular basis for guidance on career-related questions. Ask for tips on handling your job search.

Where do you find a mentor? It may be someone you’ve worked with in the past or someone you meet through a professional organization. For example, if you’re looking for a job dealing with life insurance, google professional organizations for that industry.

Whether you meet in person or virtually, those connections can be important.

5. Grow your network

Step out of your comfort zone by attending in-person or virtual career fairs, joining a professional organization, or reaching out to others in your field. The idea is to build a solid and well-nurtured network that you can turn to any time career issues arise.

6. Spruce up your skills

No matter how good you are at your job, there’s always room for growth. Search through job descriptions to learn what employers in your field are looking for. If your education and skills don’t match, take steps to acquire the skills employers seek. It may be as simple as taking a weekend course or online class.

7. Organize your home office

If you’re working from home, now is the perfect time to clean your office and purge it of unneeded items. While you’re at it, clear out the digital clutter. Get rid of unimportant files and programs so your computer will run more efficiently.

Studies show that a clean and organized space promotes feelings of calm and helps you focus.

8. Clearly define what you want

Figure out what you want in a job. For example, do you want to work remotely 100% of the time, be in an office full-time, or a hybrid of the two? Do you want a flexible schedule or set work hours? Are you an introvert who would prefer a behind-the-scenes job, or do you want to be out front dealing with the public?

Having a clear picture of what you want helps you focus your energy on the jobs that are likely to make you happiest.

9. Target specific companies

Once you know what you want, target the type of companies that will be a good logistical and cultural fit for you. One way to get started is by using LinkedIn. Look up a company you admire and can see yourself working for. Then, look for the “similar pages” section on the right side to help you find other companies that may appeal to you.

10. Follow up with employers

It’s easy to shy away from following up once you’ve sent a job application. As awkward as it may feel, checking in is expected and may be just what you need to get your resume in front of a hiring manager. If you haven’t heard anything in a week or two, reach out to ensure your application was submitted successfully and to ask if the employer has any questions.

11. Practice interviewing skills

Ask a friend or family member to participate in a mock interview. They ask you common interview questions, and you practice giving direct answers. The more you practice, the easier it will become.

12. Prioritize mental and physical health

Searching for a job can take a toll. It’s easy to feel down or stressed. As you look for a job this year, make a resolution to keep your spirits up and focus on your health. You can do that by setting aside time to do things you enjoy. And remember to reward yourself for any successes, no matter how small they may seem.

It’s the rare soul who enjoys job hunting. Still, the better you prepare, the more likely it is that you’ll land a fulfilling position.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dana George has positions in Target. The Motley Fool has positions in and recommends Alphabet and Target. The Motley Fool has a disclosure policy.

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Don’t use your credit card without reading this. 

Credit cards can actually be a great financial tool, despite the fact that some financial experts recommend steering clear of them due to their high interest rates.

But if you want credit cards to help your finances instead of hurt your financial stability in the long run, there are four rules you absolutely must follow.

1. Avoid paying interest on a credit card

Paying interest on a credit card is inevitably going to make your financial life harder. Credit cards have high interest rates, which is why so many experts suggest avoiding them. You could end up paying upwards of 17%, which would mean most of your payment goes to interest and you make all your purchases cost a lot more.

But, you can entirely avoid paying interest on a card. Just pay it off before interest is charged. Typically, you have 30 days to do that, so if you don’t charge more on your card than you can repay when your statement comes, you’ll be in the clear. If you need more time to pay off purchases, opt for a card offering a 0% introductory APR on things you buy.

If you don’t pay interest, you can benefit from earning credit card rewards without making all your purchases cost more.

2. Always pay your bill on time

Paying late has major consequences. You could damage your credit score along with triggering late fees and also possibly triggering a very high penalty APR. If you’re going to use a credit card, you absolutely must be committed to paying the bill on time every time.

You can set up an automatic payment (for at least the minimum but ideally the entire balance) to avoid getting into trouble with a delayed payment.

3. Be smart about fees

Credit cards can charge a whole bunch of fees, such as an annual fee and a foreign transaction fee.

Some of these fees you will always want to avoid. If you travel abroad or make purchases outside of the U.S., be sure you get a card with no foreign transaction fees.

As far as an annual fee, you may actually sometimes want a card that charges one if the perks are worth more than the fee you’ll pay. Just add up the value of the cardholder benefits that you’ll actually use to decide if the annual fee is worth paying.

4. Steer clear of cash advances

Finally, you absolutely do not want to take a cash advance on your credit card. There is usually a fee for doing so and you will be charged a higher rate of interest. This should be avoided, as cash advances are an unnecessarily expensive way to borrow money.

If you follow these four rules, you can make credit cards work well for you and avoid falling victim to some of the pitfalls that can lead you into trouble with your cards. Just be sure you’re committed to following all of them before you get a card to put in your wallet.

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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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Get ready to be surprised. 

From the start of 2022 to the end of it, inflation did nothing but soar. Granted, the rate of inflation wasn’t as high at the start of the year or the end as it was in the middle. But either way, a lot of consumers struggled to make ends meet in 2022. And many people were forced to resort to measures like racking up debt on their credit cards just to cover their essential bills.

But new data reveals that despite inflation, many people did manage to add money to their savings accounts in 2022. According to New York Life’s latest Wealth Watch survey, Americans saved $5,011 on average.

But one generation outdid the others in terms of savings. And you may be surprised by which one it is.

Millennials ruled in the savings department

In 2022, millennials saved an average of $6,043, which is more than what any other generation managed to save. Seeing as how millennials tend to have a reputation (at least one that’s played up by the media) of being bad at managing money (think choosing avocado toast over IRA account contributions), it may be surprising to learn that members of that generation saved the most. But lo and behold, the data speaks for itself.

Of course, if anything, this data should perhaps serve to debunk the whole “millennials are bad with money” myth. Let’s also remember that millennials are getting older. Some of them are now in their early 40s, which means they’re further along in their careers and, ideally, getting compensated more generously due to their experience. That could explain why they were able to save nicely last year at a time when living costs were so high.

Also, the pandemic may have actually helped millennials build up some cash reserves. A lot of people stopped doing things like traveling and going out to eat in 2020 and even 2021, and some of those habits may have lingered into 2022, thereby allowing millennials to boost their savings.

Of course, we don’t know exactly why millennials were able to save more than their younger and older counterparts in 2022. But either way, those who are sitting on an extra $6,043 are no doubt in a stronger position to do things like cover emergencies or meet major goals, like buy a home or put kids through college. So anyone who saved in the vicinity of $6,043 last year should be proud.

In fact, anyone who managed to save any money in 2022 really deserves a pat on the back. But this doesn’t mean you should get down on yourself if you didn’t manage to save. Inflation made saving money really, really difficult. But with any luck, consumers will get some relief in that regard this year — and make progress on their savings as a result.

Keep the momentum going

If you managed to add to your savings in 2022 and want to keep that up in 2023, one move to consider making is automating the process. Send a preset amount of money into savings every time you get a paycheck, whether it’s $20, $50, or $200. That way, you’ll be less likely to give into temptation to spend and more likely to meet your goals.

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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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Home sellers may want to consider this option. 

The real estate market has been a seller’s market in recent years, but there’s evidence things are changing. In fact, homes are sitting on the market for longer in some parts of the country.

High mortgage rates are a big reason why there’s reduced demand for home purchases. As a seller, this can be frustrating if you want to unload your house quickly and you can’t find an eager buyer. But, there’s one technique you might want to consider trying.

Home sellers could offer to pay mortgage points

If you are struggling to sell your home and you think high mortgage rates may be turning buyers off, you can actually offer an incentive that would help buyers get a cheaper home loan. It’s called seller-paid points.

When a buyer gets a mortgage, they are allowed to buy points, which is essentially prepaying interest. For a fee that’s usually equal to 1% of the loan amount upfront, a buyer can reduce their interest rate by 0.25%.

Sellers also have the option to pay for these points for a buyer. This is called seller-paid points, because the seller would be paying the upfront cost in order to buy down the interest rate of the person who is purchasing the home.

Is this a good idea if you’re trying to sell your home?

Offering seller-paid points can be a great option for a number of reasons.

For one thing, paying points has a big impact on how much a buyer can afford to spend on your home. That’s because lowering the buyer’s interest rate can make their monthly payment a lot more affordable. In fact, if you had a $300,000 house on the market, dropping your home to $280,000 would have about the same impact as buying down the buyer’s rate by 0.75%. But reducing the buyer’s rate that much would only cost you $9,000, so you’d end up about $11,000 ahead.

If you can make a buyer’s monthly payment lower, you’ll be able to attract a lot more buyers, and a lot more people will be qualified to purchase the property. You will also stand out from other sellers who don’t offer this incentive, and you’ll reduce the likelihood of a buyer not being able to close the deal since the more affordable monthly payment means the loan is less risky for mortgage lenders.

Of course, it makes sense to do this only if you actually need help attracting a qualified buyer. And whether that’s the case or not will depend on many factors, including what the real estate market is doing in your area and the price range of your home. If you’re selling a starter home, for example, your buyers may be more sensitive to the rate increases than if you’re selling a home to financially secure, established older buyers with more monthly income.

Ultimately, you should consider this as an option if you think you may need to do so in order to sell your house quickly — and if you have the ability to come up with the cash to pay these points for the buyer and still walk away from your home with enough to pay off your mortgage in full.

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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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The law could give retirees more time to grow their nest egg. 

For millions of retirees, required minimum distributions (RMDs) play a key role in how a lifetime of savings are withdrawn. The SECURE Act 2.0, signed into law in December 2022, included dozens of provisions making broad changes to how Americans plan for retirement. A handful of these provisions will change the way a generation deals with RMDs in their 401(k)s and IRA accounts. Whether you are currently taking RMDs or will be in the coming years, the SECURE Act 2.0 could change the way you fund your retirement.

RMD age increased

In 2019, the original SECURE Act raised the minimum age requirement for retirees to begin taking RMDs. The SECURE Act 2.0 has carried on this tradition by once again ratcheting up the minimum age for RMDs starting in 2023 and beyond.

Prior to 2019, retirees who reached age 70½ had to begin taking distributions from their retirement accounts. The original SECURE Act raised that age to 72 for retirees who had not yet reached age 70½, and were therefore not subject to RMDs. Thanks to the SECURE Act 2.0, the RMD age is again being raised. Starting in 2023, the RMD age will be 73, and will further increase to 75 in 2033. The table below will give you a good idea of your RMD age based on your birth year.

It’s important to note that the SECURE Act 2.0 does not change the minimum age for those who are already subject to RMDs. The new legislation will only apply to those who reach age 73 after Jan. 1, 2023 or will reach age 75 after Jan. 1, 2033.

RMD penalties decreased

Failing to take a required minimum distribution can be a costly mistake for a retiree to make. The new law might take some — but not all — of the sting out of a forgotten distribution.

Prior to 2023, the price for failing to take a required minimum distribution was a 50% excise tax on the amount of the distribution. This is one of the steepest penalties assessed by the IRS, and a retiree could easily lose thousands or tens of thousands of dollars in a given year.

The SECURE Act 2.0 reduced that penalty by half to 25%, and offered further leniency for timely corrections. Taxpayers who correct the distribution within two years will see their penalty reduced to 10%.

Other changes

The new law also gives surviving spouses more options when it comes to taking RMDs. Under Section 327 of the legislation, a surviving spouse may elect to be treated as the deceased spouse regarding RMD timing. This provision may allow an older surviving spouse to buy precious years of growth by delaying distributions from their younger, deceased spouse’s retirement plan account.

Prior to the legislation, some annuity provisions were largely unavailable in retirement accounts due to required minimum distribution actuarial testing. The new law would remove certain barriers, allowing new annuity products into retirement plans. Retirees could see inflation-adjusted annuities, return of premium guarantees, and period certain guarantees in retirement account annuities

For retirees in their sixties and early seventies, the SECURE Act 2.0 will substantially change the landscape of required minimum distributions. However, those beyond RMD age should still pay attention. Reduced penalties could save you a buck, surviving spouses may have more flexibility, and new annuity options may be available to you.

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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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These tips will help first-time Aldi shoppers prepare for their first visit to the budget-friendly store. 

Due to rising food costs, many shoppers are finding creative ways to stretch their money further. If you don’t like how much you’ve been spending at the grocery store checkout line, it may be time to shop at a budget-friendly retailer like Aldi. This store is known for its low prices, and you don’t need a membership to shop there. Are you ready to pay less to fill up your grocery cart? Check out these helpful tips for first-time Aldi shoppers.

1. Prepare for a no-frills shopping experience

When you walk into your local Aldi store, you’ll notice it looks different from many other grocery stores. The company keeps operating costs lower by providing a no-frills experience. Doing this helps keep its product costs affordable so customers can get great deals.

What’s different at Aldi? You’ll notice that only a few staff members work each shift, and most products are stored in the cardboard boxes they come in rather than being removed and neatly stacked on the shelves. If you’re looking to fill your fridge without draining your checking account balance, Aldi is the place to shop. But expect the unexpected.

2. Keep a quarter in your wallet

Aldi keeps its grocery carts chained together. You’ll need to place a quarter into the cart lock to “unlock” it. After shopping, you can return your cart by connecting it to the chain and you’ll get your quarter returned. This practice encourages shoppers to return their carts and helps minimize extra work for employees. Keeping a spare quarter stashed in your wallet or car is a good way to be prepared for your weekly Aldi run.

3. Bring reusable shopping bags

When we mentioned a no-frills experience, we weren’t kidding. You’re responsible for bagging your grocery bags at the checkout aisle when you shop at Aldi. After you check out, you can roll your cart to the bagging area and bag up your groceries. Bringing reusable bags is best.

If you forget your bags, you can purchase them at Aldi for an extra fee. To save money and recycle, some customers take the empty cardboard boxes found around the store and use them to transport their groceries. This is allowed. However, the best hack I’ve seen is to keep an empty laundry basket in your car to easily transport your groceries from the store to your home.

4. Use the weekly sales flier to plan your shopping trip

If you want to maximize your savings, don’t forget to pay attention to what’s on sale each week. Aldi has a weekly flier available on its website. You can plan your shopping trip before you arrive at the store to take advantage of the best deals. Make sure you don’t forget your list!

5. Aldi has a generous return policy

Aldi has a fantastic return policy. If you buy a product and don’t like it or it’s not what you expected, you can return it. The company’s Twice As Nice Guarantee covers most products. Here’s how it works: If you’re unsatisfied with a purchase, you can return it, and Aldi will replace the item and refund you. This generous policy can help you waste less money.

You can find great deals if you know where to shop

If you’re following a strict budget while you work on personal finance goals, you’re not alone. Food and living costs are more expensive than in years past, but that doesn’t mean you can’t score a great deal. Shopping at stores like Aldi can help you save more money.

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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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