Money Management

Saying “no” can open a whole world of opportunity. 

Some of us like a bit of clutter. Others can’t stand it — but seem to accumulate it anyway. Which is understandable, considering the buy-buy-buy world in which we live.

But what if you just — didn’t? Buy, that is.

That’s the idea behind a “no buy” list. It’s a tool for identifying all those things you want to stop buying more of, often because you already have too many similar items you simply don’t use. A good no-buy list is not only great for your finances, but it can also be a boon to your storage space!

Looking for a little inspiration for your own no-buy list for 2023? Here are a few common clutter-prone categories to consider.

1. Hobby supplies

My personal clutter kryptonite. I have all kinds of hobby supplies tucked into closets and cabinets, from paintbrushes to weaving looms to literal buckets of rocks. But despite a stockpile rivaling the local craft store, I still somehow manage to find — and almost compulsively buy — hobby supplies I don’t yet have.

This year, hobby supplies are at the top of my no-buy list. Perhaps if I actually put some of these supplies to good use, I can eliminate a few potential hobbies (and the piles of supplies associated with them).

2. Clothing and shoes

The fast fashion industry has spent decades convincing us that we need to buy new clothes, shoes, and accessories, well, pretty much all the time. They’ve even made everything thinner and cheaper to encourage us to rip it and replace it. How thoughtful!

Stop the cycle. Pull out last year’s coat, dust off those shoes you only wore twice, and just say “no” to buying more clothing that probably isn’t even that different from what’s already in your closet.

3. Food you never finish

Most of us have that food that we buy — just to throw out. You have the best of intentions. But somehow it always spoils before you get to it. Yet you dutifully keep adding it to the grocery list out of some perverse sense of obligation.

For me, it’s milk. Growing up, I was instilled with the sense that a fridge is supposed to have milk in it. But I can’t remember the last time I actually finished a bottle of milk. Even switching to the smaller bottles — which are more expensive per ounce — still leads to a lot of waste. In 2023, I’m giving myself permission to stop buying milk.

Food waste can be a particular problem if you’re a bulk buyer. Unless you have a big family (or just really love mayonnaise) it can be hard to get through it all. If you’re often tossing food — and therefore money — in the trash, it may be time to add them to your no-buy list. At the very least, perhaps add them to your no bulk buy list.

4. Media you don’t consume

I love books. But sometimes it feels like I like to buy books more than I like to actually, you know, read them. Video games and movies often create the same problem. How many games are you halfway through — or haven’t even booted up? How many movies are wallowing forgotten on your watch list?

Whether you love towers of physical media or hoard digital downloads, just say “no” to buying more in 2023. Instead, spend time working your way through your backlogged collection. As great as buying them was, reading / listening / playing them will be so much better.

Pro tip: Your local library likely has a large collection of media you can borrow, from books to movies to music. And it’s all free!

5. Upgrades

It can often seem that there’s a new version of all of the top tech toys every week. What was a top-of-the-line phone one minute is suddenly yesterday’s news — with last year’s software.

As much hype and flash as these things have, however, it’s rare that a tech upgrade is actually worth the cost. You’re probably not getting much more than a slightly better screen or a marginally more advanced camera (and you’re probably losing things like headphone jacks and SD card slots).

Unless you have a professional impetus to keep up with the latest gear, you can safely skip the upgrades this year.

Embrace what you already own

Humans like novelty. New things give us all the chemically induced feels… for about 10 seconds. Then the newness wears off and it’s just one more thing to store.

Meanwhile, your closets and cupboards are already full of things that used to be just as new — and are likely still in almost-new condition.

This is the real joy of a no-buy list. Sure, you’re saving money. But just as, if not more, important is that you’ll also be recovering all the great items of purchases past. You never know what you’ll discover!

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You might have trouble getting insurance if you own certain models. 

When it comes to buying auto insurance, one major point of stress for vehicle owners tends to be the high cost involved. That’s why it’s so important to shop around with different car insurance companies to see which ones will offer you the most competitive rates.

But just because you ask for the option to buy auto insurance doesn’t mean you’ll be granted it. In fact, CNN recently reported that two major car insurance companies are now refusing to write policies for certain types of vehicles. And if your vehicle is on that list, your pool of choices may be whittled down.

Hyundai and Kia owners, beware

Progressive and State Farm will not be writing auto insurance policies for some older Hyundai and Kia models in certain parts of the country, reports CNN. The reason? These cars are just too easy to steal.

When auto insurance companies determine premium rates, they take different factors into account. But ultimately, they want to make sure they’re not taking on undue risk. If you have a driving record that’s littered with offenses, you might struggle to find auto insurance, or find an affordable policy, because you might be considered too much of a risk to insure.

Similarly, auto insurance companies like to minimize their risk when it comes to having to pay out on insurance claims due to theft. And it’s for this reason that Progressive and State Farm are taking a harder stance on older Kia and Hyundai vehicles.

The Highway Loss Data Institute released insurance claims data last September, and it confirmed that certain 2015 through 2019 Kia and Hyundai models are about twice as likely to be stolen as other vehicles of a similar age. The reason? They lack the basic auto theft prevention technology that most vehicles made at that time include.

In fact, stealing Kia and Hyundai models actually became a social media trend in 2021,

as criminals took to not only reveling in their success in stealing those cars, but also, offering up tutorials on how to do so. So it’s easy to see why a couple of major insurers are backing away from writing policies for these at-risk vehicles.

How to get insurance for your older Hyundai or Kia vehicle

If you have an older Hyundai or Kia model, you’re not necessarily out of luck when it comes to being able to buy car insurance. So far, only two major insurers seem to be avoiding writing policies for these vehicles, and there are plenty of other options to look into.

But also, you may want to speak to a trusted mechanic and see if there’s a way to make your vehicle safer. It may be possible to retrofit your vehicle to include the anti-theft features it lacks.

Doing so might not only open the door to more auto insurance options, but also, just as importantly, prevent your car from actually being stolen. And that could, in turn, save you a world of hassle, aggravation, and financial loss.

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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 recommends Progressive. The Motley Fool has a disclosure policy.

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The easy answer is yes, but there’s more to the story. 

Raising children is hardly an inexpensive feat. Parents routinely incur massive costs related to raising kids, from childcare fees to healthcare to apparel and food.

Lawmakers are aware that having kids can constitute a financial strain, so they put a tax credit in place designed to help ease that burden. It’s called the Child Tax Credit, and it got a lot of publicity in 2021 when it underwent a major enhancement under the American Rescue Plan.

That year, the maximum value of the Child Tax Credit rose from $2,000 per child to $3,000 per child aged 6 to 17, and $3,600 for children under the age of 6. The credit also became fully refundable, which meant that someone who owed the IRS no money could still claim its full value.

Plus, half of the Child Tax Credit was made available via monthly installment payments that hit bank accounts between July and December of 2021. It was those consistent monthly payments that helped many families avoid going into debt and boost their savings account balances at a time when inflation levels were already starting to tick upward in a notable way.

But that helpful boost to the Child Tax Credit never got extended past 2021. And as a result, many parents struggled to cover their living costs in 2022.

But what does 2023 have in store for parents? Will there be a Child Tax Credit? And how much will it be worth?

The credit never went away

One big misconception is that the Child Tax Credit went away after the 2021 tax year. That’s not true at all. It simply reverted to its former rules and value in the absence of an extended enhancement.

As such, there absolutely is a Child Tax Credit in 2023, and it’s worth up to $2,000 per eligible child. And while there are no plans to make the credit available in the form of monthly installments, those eligible for it can still get their money when they file their 2023 tax returns in 2024.

Now one thing worth noting is that the Child Tax Credit is no longer fully refundable. This year, only $1,540 per child is refundable. This means that if someone doesn’t owe the IRS more than $1,540, that’s the maximum benefit they’ll get.

A boost isn’t off the table

As of the start of 2023, there’s been no approved boost to the Child Tax Credit. But that doesn’t mean lawmakers aren’t still fighting for one.

Many agree that the credit needs an enhancement to give families more relief. So it’s possible that legislation will pass this year that changes the credit for the better, whether by increasing its maximum value or allowing the credit to be fully refundable once again.

As far as monthly installment payments go, those are still a possibility as well. Given that inflation is still quite high, getting paid on a monthly basis could make it much easier for families — especially lower-income households — to cover their bills without having to resort to debt.

In fact, 2021’s Child Tax Credit boost helped many families emerge from poverty and avoid issues with food insecurity. Lawmakers are keenly aware of that, which is why it’s too soon to write off the idea of an enhanced credit in 2023.

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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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There are steps you can take to gain more financial breathing room. 

It’s hardly a secret that inflation soared in 2022, making it extremely difficult for many consumers to keep up with their bills. And while low-income earners were no doubt the ones most impacted by inflation last year, many middle-income households struggled as well.

In fact, in a recent survey by Primerica, 72% of middle earners say their paychecks can no longer keep pace with inflation. If that’s the boat you’re in, you’re not necessarily stuck. Here are some steps you can take to break that cycle until inflation levels recede.

1. Shed a big expense

Canceling a $15 monthly streaming service might help a little when it comes to managing your bills. But let’s be real — if you’re currently racking up credit card debt every month due to inflation, you probably need to do a lot more than shed a $15 expense. And so it may be time to make a big sacrifice, whether it’s moving to a smaller apartment to shrink your monthly rent costs, getting a roommate to split your rent with, or giving up a car if you work from home and can get by without one on evenings and weekends.

Remember, the lifestyle changes you make to account for inflation don’t need to be upheld forever. But it could pay to make changes for the next 12 months to minimize the amount of debt you’re forced to rack up.

2. Fight for a raise

If you’re great at what you do, and you know that your employer relies on you consistently, then there’s no reason not to march into your boss’s office and (politely) ask for a raise. Although some companies are cutting expenses (and headcount) these days due to inflation and recession fears, many are thriving. So it never hurts to speak up and ask for the pay bump you think you deserve — especially if your company didn’t give out a raise going into 2023.

That said, it’s a good idea to research salary data before having that conversation. If you see that the average person in your industry with your job title earns what you’re currently making, you may have to really work hard to make your case for higher pay. But having that data will help inform your strategy.

3. Get a side hustle

There may not be any large expenses in your budget you can reasonably cut. And your fight for a raise might end up being futile, even if you make a strong case. That’s why it pays to look at getting a side hustle.

A second job could make it so you’re able to cover your bills in full without having to continuously add to your debt load. You might even earn enough to carve out more money for leisure spending.

It could be many more months until inflation levels drop enough to make everyday bills more affordable. So until that happens, do what you can to get through this period of inflation and avoid landing deeper and deeper in debt.

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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.

 Read More