Money Management

Is yours on the list? 

It’s fair to say that 2022 was a tough year for a lot of people. We can largely blame inflation for that.

Higher living costs forced many people to dip into their savings accounts and take withdrawals to cover basic needs. And a lot of people also had to rack up balances on credit cards to keep up with essential bills.

Making matters worse was the fact that the federal government did not step up to offer relief in the form of stimulus checks in 2022. Now to be fair, widespread stimulus aid might’ve actually made the problem of inflation worse, not better. But still, a lot of people were left to wonder why there was no assistance at a time when living costs were truly getting out of control.

Fortunately, some states stepped up to answer the call of weary residents who were tired of dealing with continuous increases in living costs. Many states, due to having excess funds in their budgets, decided to send out stimulus payments in the absence of federal aid.

A lot of those states are, at this point, done sending out stimulus payments. But these six are still issuing stimulus checks in 2023.

1. California

California approved stimulus checks for inflation relief of up to $1,500 last year, and most of those payments have already gone out. But a small percentage of those payments weren’t set to be sent until mid-January, so some people may be in for a windfall this month.

2. Colorado

Colorado approved stimulus payments of up to $750 for single tax filers and up to $1,500 for joint tax filers last year. Those who filed their 2021 taxes on time likely received their money months ago. But those who filed a tax extension and got an extra six months to file their taxes may not get their money from the state until late January.

3. Idaho

Idaho approved stimulus payments worth up to the greater of 10% of a taxpayer’s 2020 income tax liability, or $300 for single tax filers and $600 for joint tax filers. The state, however, isn’t done sending that money out, and doesn’t expect to be finished until March.

4. New Jersey

New Jersey is sending out stimulus funds in the form of property tax rebates. Homeowners earning up to $150,000 are entitled to a $1,500 rebate, while those earning between $150,000 and $250,000 are entitled to $1,000. Renters can also qualify for a $450 rebate if their income doesn’t exceed $150,000. Those payments are slated to arrive during the first few months of 2023, and recipients should have them in hand by May.

5. Pennsylvania

Pennsylvania approved payments of up to $650 last year, though some residents might qualify for supplemental rebates that leave them with a total payday of $975. These payments are limited to older renters, homeowners, and people with disabilities, and residents needed to claim their money by the end of 2022. This means that associated funds should go out this year.

6. South Carolina

South Carolina approved rebate checks of up to $800 late last year. Those who filed their tax returns before Oct. 17 should’ve received their money already. However, those who filed after that deadline should get their money this March, provided they submit their tax returns by Feb. 15.

So far, there are no plans to issue any federal stimulus checks in 2023. But that doesn’t mean some Americans won’t see extra money coming their way.

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The love of an animal is priceless — but pet ownership sure isn’t cheap. 

I love my three cats dearly but I frequently look at them, sigh, and say, “You guys are expensive.” I’m pretty fortunate they’re fairly healthy and with a few exceptions (such as planned care), my usual annual health expenses for the cats only consists of an annual vet visit and accompanying vaccines. For those whose pets require medication, it’s a different story.

On Twitter, Katie Gatti Tassin (host of the podcast Money With Katie) recently discussed price hikes she’s seen on her dog’s medication (which she purchases from Chewy). It jumped in price from $172 to $275 between October and the end of December 2022. This kind of price hike is unsustainable for many pet owners, especially in the face of the still-high inflation we’ve all been coping with.

If your pet is on medication, you might be wondering how to save money buying it. The good news is that you have several options to try. These might help you keep more money in your bank account.

1. Purchase pet insurance

The first option to save money on pet prescription costs is to get a pet insurance policy. Insurers vary in what kind of coverage they offer, but some cover medications, and will even cover recommended supplements in addition to prescriptions. Pet insurance works by reimbursing pet owners for their costs, so you’ll still have to pay upfront for the medication, then some or all of the cost will be returned to you by the insurer.

2. Don’t buy from your vet’s office

While it is certainly convenient to buy medication directly from the prescribing veterinarian’s office, it doesn’t offer you the opportunity to save money. As Forbes pointed out, many people may not know they have the option to purchase elsewhere, and if your pet is sick and you’re stressed out, you may not have the ability or time to shop around. If you’re looking at paying for regular medication for a pet, however, you can likely save by buying elsewhere.

3. Ask for a less-costly alternative

Speaking of your vet, you can ask them to prescribe a cheaper medication if one is available. This could be the generic version of a big brand-name medicine, or even the human version of it, if one exists. Sometimes a medicine marketed to humans is exactly the same as the pet version, but could end up costing you less. Ensure you get the correct dosage, however — sometimes pills come in different strength formulations, and it’s likely that your dog or cat weighs less than a human!

4. Sign up for a pharmacy prescription plan

Some big-name pharmacies offer prescription drug savings programs, and this is a good way to save money on human medications, but some also work for pet medicines. Walgreens and Costco are two of the bigger names offering this service. Note that Walgreens only offers medications that have a human equivalent (like antibiotics or insulin).

5. Buy in bulk, if possible

You may not be able to buy some medications in bulk (due to it being a controlled substance, or due to quick expiration), but it’s worth looking into, especially if it’s something your pet takes every day. You can often find a cheaper price on a 90-day supply than if you were to buy a 30-day supply three times.

6. Use online pet pharmacies (but be careful)

You’ll certainly get lots of Google results if you search “cheap pet medications,” but it’s important to do your due diligence before ordering online. Verify that the great prices you’re being quoted are being offered by a Vet-VIPPS certified pharmacy. This stands for Veterinary-Verified Internet Pharmacy Practice Sites, and the program is run by the National Association of Boards of Pharmacy, ensuring these pharmacies are legitimate and that you’ll receive the drugs you order, rather than a potentially dangerous counterfeit.

As you can see, basically, it all comes down to shopping around to get better prices on pet medications. This may not always be so easy, especially in the event of an emergency, but if your pet has just been diagnosed with a long-term condition that will require frequent medication, it’s a good idea to spend some time searching for deals. Consider asking fellow pet owners in your circle as well — they may have a reputable pet pharmacy to recommend. You’re not alone in your concern for both your pet’s medical needs and your budget, but there are ways to save money on pet care if you look.

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

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Give your extra money the best chance to improve your life. 

Living paycheck to paycheck is the worst. You can never quite afford to get ahead, and maybe you dream of what you’d do if you ever broke out of that lifestyle. Chances are, you’re not dreaming of updating your budget, changing bank accounts, or still having to carefully consider your spending — none of those are sexy tasks.

But if you are starting off 2023 with a higher salary, thanks to a raise, a job change, or a side hustle, it’s incredibly important to look at all these moves, and more. After all, you’ve got a chance to make some positive financial moves with your extra money. Here’s what to do, step by step, to make sure your new salary truly benefits your life, both now and in the future.

Step 1: Re-evaluate your budget

Nobody likes the “B” word, but if you’re to truly know where your money goes month after month, a budget is essential. Personally, I think it’s fun to adjust the “income” line of the spreadsheet I use, while the “expenses” lines stay the same. I get to see how much excess I’ll have left every month after I pay rent, utilities, and the rest of my bills. If you truly dislike budgeting, or just want to make it a little more interesting, consider using a budgeting app to spice up the process and get helpful hints and tips along the way.

Now that you know how much your income is versus your expenses, you can move on to step two.

Step 2: Pay off debt

Okay, stay with me here. Debt payoff was likely not part of your raise fantasy, but it really should be. If you’re carrying high-interest debt like a credit card balance, you should prioritize getting it paid off with the extra money you’re bringing in now. Credit cards charge a lot of interest on balances carried forward; their average APR hit 19.04% in November 2022. There are several ways to pay off debt. Personally, I had a lot of success with the debt snowball method, and if you’re the kind of person who likes seeing a lot of progress quickly, I recommend it. If you’ve got that larger salary in hand, start today — you won’t regret being free of high-interest debt.

Step 3: Open a new bank account

How would you like to earn even more money on your money? Only 21% of American adults currently have a high-yield savings account, and now is a great time to join those ranks. The best high-yield savings accounts are paying 3% or more in interest right now, so the money you stash in one is going to generate even better returns than if you left it in your checking or even a traditional savings account. So increase that “savings” line of your budget and funnel that extra money into a new bank account to enjoy the miracle of compound interest.

Step 4: Beware of ‘lifestyle creep’

A word of caution, before you start splurging on purchases with your new income: Don’t fall victim to lifestyle creep. Lifestyle creep is when your earnings increase and so does your spending, thereby leaving you living paycheck to paycheck again, despite making more money. This is where re-evaluating your budget can really help. You can build in a higher number for fun, guilt-free spending. This way, you benefit in multiple ways from making more money, rather than ending up back in the same situation as before.

Step 5: Focus on your long-term goals

Finally, start making some long-term goals, and keep them in mind whenever managing your money starts to get you down — or you feel the urge to make a big purchase without truly thinking it through. Your goals can be anything you want — early retirement, going back to school, taking a big vacation, buying your dream car. For me, it’s buying a house. Think about your big money goals often. Write them on sticky notes and leave them in places where you’ll see them. If you keep them in mind, you’ll be more likely to do what’s necessary to achieve them.

Congratulations on your salary increase! With these five steps, you can ensure your money benefits you and your life to the greatest degree possible. After all, isn’t that what it’s all about?

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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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Let’s ditch this myth. 

Homeownership is extremely popular in the United States, with nearly two-thirds (65.5%) of Americans owning their own homes, according to 2022 data from the National Association of Realtors. If you’re a renter, you might have complicated feelings about it. Depending on your age, you may be surrounded by peers who own homes and lamenting how much you spend on rent every month, which could be much more than a mortgage payment on a comparable property, depending on where you live. You might also have well-meaning older relatives who urge you to buy, because “renting is throwing money away.” Is it though?

I’m hoping to buy a home myself in the next few years, after spending most of my adulthood renting. I bought a house once before, and it was a bad decision for a number of reasons, including my finances, my employment situation, and my lack of readiness to truly deal with the potential hassles of homeownership. Ultimately, I had to go through a short sale to get out from under the worst financial decision of my life, and I’m not eager to repeat that process.

Unlike the last time, I’m not interested in homeownership for the wrong reasons (such as hating my apartment and wishing to be seen as “a real grown up”), but because I have found a city where I feel at home and I want the opportunity to turn a piece of property into my dream house. Renting suited my life well until fairly recently. Here’s why your American dream doesn’t have to be geared towards homeownership.

Renting has its perks

There are all kinds of different rental situations. I’ve lived in rentals in multiple cities and states, from apartment complexes to small rural farmhouses. While they varied in substance, cost, and long-term viability (due to landlord issues or my continual need to relocate for my previous career), there were some perks these rental situations all shared.

Cost

First and foremost, renting is cheaper than buying. This may not be reflected in your monthly costs, but overall, it is. Think about it — you will not have to put thousands of dollars down to rent a home (likely, you’ll pay a deposit equivalent to a month or two of rent). You also won’t be paying for the costs of homeownership, which include property taxes, maintenance and repairs, and homeowners insurance (much costlier than renters insurance).

Saving time

In addition to all the money you’ll save on not buying, you also get to save time. In my experience, actual time saved by renting will also vary, based on where you live and who you’re renting from, but chances are good your landlord or a property management company will pick up some of the tasks you’d be doing yourself if you owned your place. This could include snow removal or lawn care, seasonal HVAC maintenance, and more.

Flexibility

I have moved many, many times in my life. Because I was a renter for most of it, I wasn’t faced with the prospect of needing to sell a house in a hurry (and potentially at a loss). In many cases, I didn’t even need to pay anything to break a lease when I changed jobs and had to leave a rental home. Owning won’t give you this kind of flexibility.

There are other ways to build wealth

Aside from the perks of renting, consider the fact that there are other ways to become wealthy besides owning property. Especially since even if you sell your home for more than you paid for it initially, you’ll also be contending with inflation, capital gains taxes, and more.

If homeownership doesn’t figure into your version of the American dream, you can take the money you’re saving by renting and invest it via a brokerage account instead. This will require more discipline on your part than paying a mortgage to amass wealth in the form of home equity, but it is certainly a viable option and shouldn’t be discounted as somehow inferior to owning your home.

Ultimately, the decision to buy a home is extremely personal, and shouldn’t be made by anyone but yourself and the others who will be going into the home purchase with you (such as a partner or spouse). If someone tells you that homeownership is the only way to achieve the American dream, you have my permission to tell them they’re wrong.

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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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Holiday debt doesn’t have to drag you down. Here’s how to shed it. 

The holidays may be a wonderful time of the year that people look forward to, but they can also be really expensive. In fact, it’s not uncommon for consumers to end the holidays with credit card debt, and that’s a good way to put a damper on an otherwise joyous time.

If you’re starting off 2023 with a host of credit card bills you need to pay off, don’t panic. Instead, follow these steps to eliminate that debt as quickly as possible.

Step 1: Assess your balances

You might owe a mere $200 on one credit card, but that card might have a relatively low interest rate compared to your others. Should you try to pay that card off first? No.

As a general rule, if you’re going to tackle your credit card bills individually, it pays to prioritize the ones with the highest interest rates, and then work your way downward. That could mean chipping away at a $1,000 balance, even when a $200 balance seems (and is) easier to pay off quickly.

Step 2: See if debt consolidation makes sense

Juggling multiple credit card bills can be tricky. And it can be costly. A better bet may be to see if there’s an affordable way to consolidate your debt.

One option is to do a balance transfer, where you move your existing credit card balances onto a single card with a lower interest rate attached to it. Many balance transfer offers will actually give you 0% interest for a period of time, and if you can snag a deal like that, you’ll get a reprieve from racking up interest as you work your way out of debt.

Another option for consolidating your credit card bills is to take out a home equity or personal loan. Both options let you make one monthly payment instead of potentially having to keep track of four or five.

Step 3: Try to cut your spending or boost your income

You’ll need money to get ahead of your debt, even if you manage to consolidate it. To that end, aim to reduce your spending to free up cash, whether by canceling services you don’t use that often or being more frugal with regard to things like food.

Another option? Get yourself a side hustle and use your earnings to pay off your debt.

Granted, you may need to set aside some of your side gig earnings for tax purposes if your wages aren’t taxed from the start. But let’s say you earn $100 a week on a freelance basis as extra money, and you have to set $30 of that aside for the IRS. That’s still a good $70 a week you can use to pay down your holiday balance.

Get yourself debt free as quickly as possible

The sooner you pay off holiday credit card debt, the less interest you’re apt to accrue on it. You may not be able to shed your holiday debt in weeks or months, but if you stick to this plan, there’s a good chance you will end up debt free by the end of the year.

That said, as you work to get rid of your holiday debt, do your best to also put money into savings for the 2023 holiday season. That way, you won’t wind up in a similar boat next time.

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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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